2005 News Releases

Boston– Back in 1985, a young Soviet leader, Mikhail Gorbachev, stepped into power and ushered in a period of unprecedented reform that ended the Cold War. U.S. President Ronald Regan unveiled a new tax program that simplified tax laws and lowered America's tax rates. Microsoft launched Windows which quickly became the world’s ubiquitous desktop operating system. Twenty years ago, a gallon of gas cost $1.20 and a house could be had for a little over $100,000. And, the John Hancock Regional Bank Fund shares were sold at $10 each at its launch on October 4, 1985.

Today, gas is cresting at $3.00, and the average home costs $220,000. While these goods have more than doubled in the past two decades, a $10,000 investment in the Class B shares of John Hancock Regional Bank Fund would be worth $185,006 today assuming all distributions were reinvested, over 18 times as much as twenty years ago.

In the early 1980s when James K. Schmidt was managing money at The Hartford Insurance Group, he developed an interest in investing in bank stocks. Mr. Schmidt recognized that there were too many banks in the U.S. and that regulatory changes were about to usher in a lengthy period of merger activity in the industry. In 1985, he joined John Hancock to launch a mutual fund designed to take advantage of this trend. The John Hancock Regional Bank Fund would pursue investments in undervalued banks that would be likely at some point to be in the path of acquisition activity.

Twenty years later, Mr. Schmidt is still in the same job executing the same strategy. However, he’s gone from a one-person team managing a single fund with approximately $28 million in assets, to heading up a five-person team, overseeing six open- and closed-end funds and approximately $4.5 billion in assets. The Regional Bank Fund alone accounts for approximately $2.2 billion today, and is co-managed by Mr. Schmidt, Lisa Welch and Thomas Finucane.

Keith F. Hartstein, chief executive officer of John Hancock Funds, said, “Jim Schmidt has been a pioneer in financial services sector investing. In the 20 years under Jim’s watch, this fund has followed a strategy that has not wavered or drifted over time. This consistent approach has propelled this fund to be ranked as the 12th-best performing equity fund out of 427 funds, since its inception in 1985.” Source: Lipper, Inc. Regional Bank Class B performance ranked 10875 out of 11057 equity funds, 1076 out of 6553 equity funds, 446 out of 2304 equity funds, 14 out of 778 equity funds, for 1-, 5-, 10-, 15-years through September 30, 2005, respectively. Rankings are based on total return and do not account for sales charges. (Rankings are based on total return and do not account for sales charges.)

James K. Schmidt, executive vice president and portfolio manager, said, “The last two decades have seen a tremendous change in the banking landscape. As mergers have whittled the number of banks in the U. S. from 14,000 to 7,500, the culture of banking has changed. Bankers have been forced to be concerned about their price/earnings ratio, which has translated into an unprecedented focus on efficiency ratios and returns on equity. As a result, what was formerly a genteel industry that offered lifetime employment and relaxed hours has become much more ruthless, competitive, and profitable. This has worked to the benefit of investors for twenty years and I believe it will continue to do so.”

The long-term nature of the fund, along with its consistent investment philosophy and continuity of management over the years, has been a positive for shareholders. For the period spanning 10/31/85 to 9/30/05, the fund’s average annual total return at net asset value was 15.78%, outpacing both the S&P 500 (12.52%) and the average equity fund (10.98%). (Returns are based on total return and do not account for sales charges.)

John Hancock Funds, a Boston-based investment management organization, manages more than $33.8 billion in open-end funds, closed-end funds, private accounts, retirement plans and related party assets for individual and institutional investors as of June 30, 2005. Additional information about John Hancock Funds can be found on the website: www.jhfunds.com.

John Hancock, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers a broad range of financial products and services, including fixed and variable annuities, long-term care insurance, mutual funds, college savings products, life insurance and various forms of business insurance. Additional information about John Hancock can be found on the website: www.johnhancock.com.

About John Hancock and Manulife Financial
John Hancock is a unit of Manulife Financial Corporation, a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$364 billion (US$297 billion) as at June 30, 2005.

Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.

The John Hancock unit offers a broad range of financial products and services, including life insurance products, as well as college savings products, fixed and variable annuities, long term care insurance, mutual funds and various forms of business insurance.

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Liz Kennedy
(617) 663-4288

John Hancock Regional Bank Fund - Average Annual Total Returns as of 9/30/05
 

Performance figures assume that all distributions are reinvested. Returns with maximum sales charge reflect a sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The returns for Class C shares have been adjusted to reflect the elimination of the front-end sales charge effective July 15, 2004. The Class B shares’ CDSC declines annually between years 1-6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Performance quoted without sales charges would be reduced if the sales charges were applied.

For performance data current to the most recent month-end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. Due to market volatility, the Fund’s current performance may be higher or lower and is subject to substantial changes.

The Fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Fund. Please read the prospectus carefully before investing or sending money. The prospectus may be obtained by calling John Hancock Funds, LLC at the telephone number below.

John Hancock Funds, LLC
Member NASD
601 Congress Street
Boston, MA 02210-2805

1-800-225-5291
1-800-554-6713 TDD
www.jhfunds.com