UNITED STATES | ||
SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 | ||
FORM N-Q | ||
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED | ||
MANAGEMENT INVESTMENT COMPANIES | ||
Investment Company Act file number 811- 22056 | ||
John Hancock Tax-Advantaged Global Shareholder Yield Fund | ||
(Exact name of registrant as specified in charter) | ||
601 Congress Street, Boston, Massachusetts 02210 | ||
(Address of principal executive offices) (Zip code) | ||
Salvatore Schiavone | ||
Treasurer | ||
601 Congress Street | ||
Boston, Massachusetts 02210 | ||
(Name and address of agent for service) | ||
Registrant's telephone number, including area code: 617-663-4497 | ||
Date of fiscal year end: | October 31 | |
Date of reporting period: | July 31, 2010 |
ITEM 1. SCHEDULE OF INVESTMENTS
JH Tax-Advantaged Global Shareholder Yield Fund
As of 7-31-10 (Unaudited)
Shares | Value | |
Common Stocks 96.66% | $110,363,558 | |
(Cost $114,862,803) | ||
Australia 1.56% | 1,786,425 | |
Toll Holdings, Ltd. | 180,000 | 969,907 |
Westpac Banking Corp. | 37,500 | 816,518 |
Belgium 1.18% | 1,352,807 | |
Mobistar SA | 23,500 | 1,352,807 |
Canada 3.47% | 3,958,965 | |
BCE, Inc. | 75,000 | 2,294,392 |
Shaw Communications, Inc., Class B | 84,800 | 1,664,573 |
France 7.79% | 8,890,305 | |
France Telecom SA | 130,000 | 2,717,286 |
SCOR SE | 56,800 | 1,245,977 |
Total SA | 82,900 | 4,171,834 |
Vivendi SA | 31,500 | 755,208 |
Germany 2.17% | 2,479,616 | |
E.ON AG | 30,600 | 913,835 |
Muenchener Rueckversicherungs - Gesellschaft AG (MunichRe) | 11,300 | 1,565,781 |
Hong Kong 1.13% | 1,291,258 | |
CLP Holdings, Ltd. | 175,000 | 1,291,258 |
Italy 1.93% | 2,202,327 | |
Enel SpA | 198,500 | 974,693 |
Terna Rete Elettrica Nazionale SpA | 295,300 | 1,227,634 |
Netherlands 1.18% | 1,343,935 | |
Royal Dutch Shell PLC, ADR | 24,250 | 1,343,935 |
Norway 2.27% | 2,590,114 | |
Orkla ASA | 67,150 | 557,114 |
StatoilHydro ASA, SADR | 100,000 | 2,033,000 |
Philippines 1.01% | 1,159,920 | |
Philippine Long Distance Telephone Company, SADR | 21,600 | 1,159,920 |
Spain 1.59% | 1,816,363 | |
Telefonica SA | 80,000 | 1,816,363 |
Switzerland 3.76% | 4,289,389 | |
Nestle SA | 37,500 | 1,854,044 |
Swisscom AG | 6,500 | 2,435,345 |
Taiwan 0.96% | 1,097,870 | |
Taiwan Semiconductor Manufacturing Company, Ltd., SADR | 108,700 | 1,097,870 |
United Kingdom 22.03% | 25,151,291 | |
AstraZeneca PLC, SADR (C) | 44,000 | 2,219,360 |
BAE Systems PLC | 202,800 | 995,453 |
British American Tobacco PLC | 29,850 | 1,029,005 |
Diageo PLC, SADR | 47,500 | 3,319,300 |
FirstGroup PLC | 558,000 | 3,226,416 |
Imperial Tobacco Group PLC | 75,000 | 2,123,239 |
National Grid PLC | 457,060 | 3,654,209 |
Scottish & Southern Energy PLC | 240,300 | 4,182,944 |
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JH Tax-Advantaged Global Shareholder Yield Fund
As of 7-31-10 (Unaudited)
Shares | Value | |
United Kingdom (continued) | ||
United Utilities Group PLC | 159,209 | $1,463,205 |
Vodafone Group PLC | 1,254,700 | 2,938,160 |
United States 44.63% | 50,952,973 | |
Altria Group, Inc. | 122,100 | 2,705,736 |
Arthur J. Gallagher & Company (C) | 54,300 | 1,380,306 |
AT&T, Inc. | 174,400 | 4,523,936 |
Automatic Data Processing, Inc. | 52,200 | 2,154,294 |
Bristol-Myers Squibb Company (C) | 180,000 | 4,485,600 |
CenturyTel, Inc. (C) | 75,200 | 2,678,624 |
Diamond Offshore Drilling, Inc. | 13,400 | 797,166 |
Duke Energy Corp. (C) | 150,000 | 2,565,000 |
E.I. Du Pont de Nemours & Company (C) | 58,050 | 2,360,894 |
Lorillard, Inc. | 24,800 | 1,890,752 |
Microchip Technology, Inc. (C) | 45,600 | 1,388,520 |
NiSource, Inc. (C) | 277,700 | 4,582,050 |
NSTAR (C) | 16,900 | 628,004 |
PepsiCo, Inc. | 8,500 | 551,735 |
Philip Morris International, Inc. (C) | 50,000 | 2,552,000 |
Pitney Bowes, Inc. | 50,800 | 1,240,028 |
Progress Energy, Inc. | 53,700 | 2,261,307 |
Reynolds American, Inc. (C) | 30,000 | 1,734,600 |
Southern Company | 62,900 | 2,222,257 |
TECO Energy, Inc. (C) | 100,000 | 1,634,000 |
Verizon Communications, Inc. (C) | 150,200 | 4,364,812 |
WGL Holdings, Inc. | 16,900 | 609,752 |
Windstream Corp. (C) | 144,000 | 1,641,600 |
Shares | Value | |
Preferred Stocks 0.84% | $953,806 | |
(Cost $854,267) | ||
United States 0.84% | 953,806 | |
MetLife, Inc., Series B, 6.500% | 38,600 | 953,806 |
Par value | Value | |
Short-Term Investments 2.09% | $2,382,118 | |
(Cost $2,382,118) | ||
Repurchase Agreement 0.42% | 480,000 | |
Repurchase Agreement with State Street Corp. dated 07-30-2010 at 0.010% to be | ||
repurchased at $480,000 on 08-02-2010, collateralized by $470,000 U.S. Treasury | ||
Notes, 2.500% due 04-30-2015 (valued at $493,688, including interest). | $480,000 | 480,000 |
Shares | Value | |
Short-Term Securities* 1.67% | 1,902,118 | |
State Street Institutional Investment Treasury Money Market Fund, 0.0376% | 1,902,118 | 1,902,118 |
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JH Tax-Advantaged Global Shareholder Yield Fund
As of 7-31-10 (Unaudited)
Total investments (Cost $118,099,188) 99.59% | $113,699,482 |
Other assets and liabilities, net 0.41% | $473,196 |
Total net assets 100.00% | $114,172,678 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the Fund.
ADR American Depositary Receipts
SADR Sponsored American Depositary Receipts
(C) All or a portion of this security is segregated as collateral for options overlay (see Notes to the Schedule of Investments). Total collateral value at 7-31-10 was $34,215,370.
* Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end.
At 7-31-10, the aggregate cost of investment securities for federal income tax purposes was $123,065,595. Net unrealized depreciation aggregated $9,366,113, of which $3,270,087 related to appreciated investment securities and $12,636,200 related to depreciated investment securities.
The portfolio had the following sector composition as a percentage of total net assets on 7-31-10:
Utilities | 25% | ||
Telecommunication Services | 24% | ||
Consumer Staples | 16% | ||
Energy | 7% | ||
Health Care | 6% | ||
Industrials | 6% | ||
Financials | 5% | ||
Information Technology | 4% | ||
Consumer Discretionary | 2% | ||
Materials | 2% | ||
Short-term Investments and other | 2% |
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Notes to the Schedule of Investments (Unaudited)
Security valuation. Investments are stated at value as of the close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. The Fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these techniques are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes significant unobservable inputs when market prices are not readily available or reliable, including the Funds own assumptions in determining the fair value of investments. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the values by input classification of the Funds investments as of July 31, 2010, by major security category or type:
Level 2 | Level 3 | ||||
Total Market | Significant | Significant | |||
Value at | Level 1 Quoted | Observable | Unobservable | ||
7-31-10 | Price | Inputs | Inputs | ||
Common Stocks | |||||
Australia | $1,786,425 | | $1,786,425 | | |
Belgium | 1,352,807 | | 1,352,807 | | |
Canada | 3,958,965 | $3,958,965 | | | |
France | 8,890,305 | | 8,890,305 | | |
Germany | 2,479,616 | | 2,479,616 | | |
Hong Kong | 1,291,258 | | 1,291,258 | | |
Italy | 2,202,327 | | 2,202,327 | | |
Netherlands | 1,343,935 | 1,343,935 | | | |
Norway | 2,590,114 | 2,033,000 | 557,114 | | |
Philippines | 1,159,920 | 1,159,920 | | | |
Spain | 1,816,363 | | 1,816,363 | | |
Switzerland | 4,289,389 | | 4,289,389 | | |
Taiwan | 1,097,870 | 1,097,870 | | | |
United Kingdom | 25,151,291 | 5,538,660 | 19,612,631 | | |
United States | 50,952,973 | 50,952,973 | | | |
Preferred Stocks | |||||
United States | 953,806 | 953,806 | | | |
Short-Term Investments | 2,382,118 | 1,902,118 | 480,000 | ||
Total Investments in Securities | $113,699,482 | $68,941,247 | $44,758,235 | | |
Other Financial Instruments | |||||
Written Options | ($289,667) | ($289,667) | | | |
Total | $113,409,815 | $68,651,580 | $44,758,235 | |
During the nine-month period ended July 31, 2010, there were no significant transfers in or out of Level 1 and Level 2 assets.
In order to value the securities, the Fund uses the following valuation techniques. Equity securities held by the Fund are valued at the last sale price or official closing price on the principal securities exchange on which they trade. In the event there were no sales during the day or closing prices are not available, then securities are valued using the last quoted bid or evaluated price. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing service. Certain securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Certain short-term securities are valued at amortized cost.
Other portfolio securities and assets, where market quotations are not readily available, are valued at fair value, as determined in good faith by the Funds Pricing Committee, following
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procedures established by the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the NYSE. Significant market events that affect the values of non-U.S. securities may occur after the time when the valuation of the securities is generally determined and the close of the NYSE. During significant market events, these securities will be valued at fair value, as determined in good faith, following procedures established by the Board of Trustees. The Fund may use a fair valuation model to value non-U.S. securities in order to adjust for events which may occur between the close of foreign exchanges and the close of the NYSE.
Repurchase agreements. The Fund may enter into repurchase agreements. When a Fund enters into a repurchase agreement, it receives collateral which is held in a segregated account by the Funds custodian. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline.
Options. There are two types of options, a put option and a call option. Options are traded either over-the-counter or by means of an exchange. A call option gives the purchaser of the option the right to buy (and the seller the obligation to sell) the underlying instrument at the exercise price. A put option gives the purchaser of the option the right to sell (and the writer the obligation to buy) the underlying instrument at the exercise price.
Options listed on an exchange are valued at their closing price. If no closing price is available, then they are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. For options not listed on an exchange, an independent pricing source is used to value the options at the mean between the last bid and ask prices. When the Fund purchases an option, the premium paid by the Fund is included in the Portfolio of Investments and subsequently marked-to-market to reflect current market value. If the purchased option expires, the Fund realizes a loss equal to the cost of the option. If the Fund enters into a closing sale transaction, the Fund realizes a gain or loss, depending on whether proceeds from the closing sale are greater or less than the original cost. If the Fund exercises a call option, the cost of the securities acquired by exercising the call is increased by the premium paid to buy the call. If the Fund exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale are decreased by the premium paid.
During the nine-month period ended July 31, 2010, the Fund wrote written options to enhance potential gains and manage against anticipated changes in securities markets. The following tables summarize the Funds written options activities during the period ended July 31, 2010 and the contracts held at July 31, 2010.
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PREMIUMS | |||||
NUMBER OF | RECEIVED | ||||
CONTRACTS | (PAID) | ||||
Outstanding, beginning of period | 1,500 | $1,392,010 | |||
Options written | |||||
15,620 | 13,794,740 | ||||
Options closed | |||||
(3,300) | (1,189,748) | ||||
Options expired | (12,315) | (13,443,544) | |||
Outstanding, end of period | 1,505 | $553,458 |
NAME OF ISSUER | EXERCISE | EXPIRATION | NUMBER OF | PREMIUM | VALUE |
PRICE | DATE | CONTRACTS | |||
CALLS | |||||
S&P 500 Index | $1,110 | August 2010 | 240 | $307,380 | ($98,220) |
S&P 500 Index | 1,130 | August 2010 | 95 | 52,914 | (21,186) |
KBW Bank Index | 50 | August 2010 | 525 | 33,068 | (11,557) |
S&P 400 Midcap Index | 760 | August 2010 | 35 | 30,694 | (29,331) |
Dow Jones Industrial | |||||
Average Index | 106 | August 2010 | 250 | 12,996 | (12,254) |
Russell 1000 Index | 610 | August 2010 | 45 | 22,489 | (20,936) |
Russell 2000 Index | 640 | August 2010 | 40 | 52,121 | (44,479) |
Philadelphia Housing | |||||
Sector Index | 97 | August 2010 | 275 | 41,796 | (51,704) |
Total | 1,505 | $553,458 | ($289,667) |
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the Fund at July 31, 2010 by risk category:
Asset | Liability | ||||
Derivatives | Derivatives Fair | ||||
Risk | Financial instruments location | Fair Value | Value | ||
Equity Contracts | Written options | | ($289,667) |
For more information regarding the Funds use of derivatives, please refer to the Funds prospectus, semi-annual and annual reports.
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ITEM 2. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-Q, the registrant's principal executive officer and principal accounting officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Separate certifications for the registrant's principal executive officer and principal accounting officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
SIGNATURES |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Tax-Advantaged Global Shareholder Yield Fund
By: | /s/ Keith F. Hartstein |
------------------------------ | |
Keith F. Hartstein | |
President and Chief Executive Officer | |
Date: | September 22, 2010 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Keith F. Hartstein |
------------------------------- | |
Keith F. Hartstein | |
President and Chief Executive Officer | |
Date: | September 22, 2010 |
By: | /s/ Charles A. Rizzo |
------------------------------- | |
Charles A. Rizzo | |
Chief Financial Officer | |
Date: | September 22, 2010 |