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John Hancock Funds III
John Hancock Core High Yield Fund
Supplement dated July 1, 2016 to the Summary Prospectus dated July 1, 2016 (the “Summary Prospectus”)
On June 23, 2016, the Board of Trustees (the “Board”) of John Hancock Funds III, of which John Hancock Core High Yield Fund (“Core
High Yield”) is a series, voted to recommend that the shareholders of Core High Yield approve a reorganization, that is expected to be
tax-free, of Core High Yield into John Hancock Focused High Yield Fund (“Focused High Yield” and, together with Core High Yield, the
“Funds”), a series of John Hancock Bond Trust, as described below (the “Reorganization”). Shareholders of record as of July 22, 2016,
will be entitled to vote on the Reorganization.
Under the terms of the Reorganization, subject to shareholder approval at a shareholder meeting scheduled to be held on or about
September 30, 2016, Core High Yield would transfer all of its assets to Focused High Yield in exchange for corresponding shares of
Focused High Yield. Focused High Yield would also assume substantially all of Core High Yield’s liabilities. The corresponding shares
of Focused High Yield would then be distributed to Core High Yield’s shareholders, and Core High Yield would be terminated. If
approved by Core High Yield’s shareholders, the Reorganization is expected to occur as of the close of business on or about October
28, 2016 (the “Closing Date”). Further information regarding the proposed Reorganization will be contained in a proxy statement and
prospectus, which is scheduled to be mailed to Core High Yield’s shareholders on or about August 8, 2016.
Core High Yield will remain open to purchases and redemptions from existing shareholders until the Closing Date. Core High Yield will
not accept orders from new investors to purchase shares of Core High Yield, effective as of the close of business on July 21, 2016.
However, discretionary fee-based advisory programs which include Core High Yield as an investment option as of the close of business
on July 21, 2016, may continue to make Core High Yield shares available to new and existing accounts.
Prior to the Reorganization, any dividends paid will be paid in accordance with the current dividend option of an account; accounts in
which the dividend reinvestment option has been chosen will receive any dividends in the form of additional shares of Core High Yield.
To satisfy an Internal Revenue Service requirement, Core High Yield hereby designates the maximum amount of the net long term
gains earned as a capital gain dividend, if any, with respect to Core High Yield’s final taxable year. Please refer to Form 1099-DIV for
tax reporting purposes.
The foregoing is not an offer to sell, nor a solicitation of an offer to buy, any shares in connection with the Reorganization,
nor is it a solicitation of any proxy. For important information regarding Core High Yield or Focused High Yield, or to receive a
free copy of the proxy statement/prospectus relating to the proposed merger, once it is available, please call the Funds’ tollfree telephone number: 800-225-5291. The proxy statement/prospectus contains important information about fund objectives,
strategies, fees, expenses, risks, and the Board’s considerations in approving the Reorganization. The proxy
statement/prospectus also will be available for free on the SEC’s website (www.sec.gov). Please read the proxy
statement/prospectus carefully before making any decision to invest in any shares in connection with the Reorganization or
when considering whether to vote for the Reorganization.
You should read this Supplement in conjunction with the Summary Prospectus and retain it for your future reference.
JH3460SPS 7/1/16
John Hancock Funds III
John Hancock Core High Yield Fund (the “Fund”)
Supplement dated July 1, 2016 to the Summary Prospectus dated July 1, 2016 (the “Summary Prospectus”)
Effective June 28, 2016, Class R2 and Class R4 shares of the Fund will be closed to new investors.
Other share classes of the Fund will continue to be made available to all current and eligible prospective investors.
You should read this Supplement in conjunction with the Summary Prospectus and retain it for future reference.
JH3460SPS 7/1/16
John Hancock Core High Yield Fund
Click here for the prospectus.§
Click here for the Statement of Additional Information.
John Hancock Core High Yield Fund
Summary prospectus 7/1/16
Before you invest, you may want to review the fund’s prospectus, which contains more information about the fund and its risks. You can find the fund’s prospectus
and other information about the fund, including the Statement of Additional Information and most recent reports, online at jhinvestments.com/Forms/
Prospectuses.aspx. You can also get this information at no cost by calling 800-225-5291 (Class A and Class C) or 888-972-8696 (Class I and Class R suite) or by
sending an email request to [email protected]. The fund’s prospectus and Statement of Additional Information, both dated 7/1/16, and most recent financial
highlights information included in the shareholder report, dated 3/31/16, are incorporated by reference into this summary prospectus.
TICKERS
A: JYIAX
C: JYICX
I: JYIIX
R2: JCHYX
R4: JCHRX
R6: JHCHX
INVESTMENT OBJECTIVE
The fund seeks total return, consisting of a high level of current income and capital appreciation.
FEES AND EXPENSES
This table describes the fees and expenses you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts on Class A shares if
you and your family invest, or agree to invest in the future, at least $100,000 in the John Hancock family of funds. More information about these and other
discounts is available from your financial representative and on pages 19 to 21 of the prospectus under “Sales charge reductions and waivers” or pages 105 to
109 of the fund’s Statement of Additional Information under “Initial sales charge on Class A shares.”
Shareholder fees (%) (fees paid directly from your investment)
A
C
I
R2
R4
R6
4.00
None
None
None
None
None
1.00
(on certain purchases,
including those of $1
million or more)
1.00
None
None
None
None
20
20
None
None
None
None
A
C
I
R2
R4
R6
Management fee
0.63
0.63
0.63
0.63
0.63
0.63
Distribution and service (Rule 12b-1) fees
0.25
1.00
0.00
0.25
0.25
0.00
Service plan fee
0.00
0.00
0.00
0.251
0.101
0.00
Additional other expenses
0.222
0.20
0.112
0.112
0.112
Maximum front-end sales charge (load) on purchases, as a % of purchase price
Maximum deferred sales charge (load) as a % of purchase or sale price, whichever is less
Small account fee (for fund account balances under $1,000) ($)
Annual fund operating expenses (%) (expenses that you pay each year as a percentage of the value of your
investment)
Other expenses
0.22
Total other expenses
0.22
0.22
0.20
0.36
0.21
0.11
Total annual fund operating expenses
1.10
1.85
0.83
1.24
1.09
0.74
Contractual expense reimbursement
0.00
0.00
0.00
0.00
–0.103
–0.024
Total annual fund operating expenses after expense reimbursements
1.10
1.85
0.83
1.24
0.99
0.72
1
2
3
4
“Service plan fee” has been restated to reflect maximum allowable fees.
“Other expenses” have been restated from fiscal year amounts to reflect current fees and expenses.
The distributor contractually agrees to waive and limit its Rule 12b-1 fees for Class R4 shares to the extent necessary to achieve aggregate fees of 0.15%. This agreement expires on August 31, 2017, unless
renewed by mutual agreement of the fund and the distributor based upon a determination that this is appropriate under the circumstances at that time.
The advisor contractually agrees to waive and/or reimburse all class-specific expenses for Class R6 shares to the extent they exceed 0.00% of average annual net assets (on an annualized basis) attributable to
the class. This agreement expires on August 31, 2017, unless renewed by mutual agreement of the fund and the advisor based upon a determination that this is appropriate under the circumstances at that
time.
EXPENSE EXAMPLE
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. Please see below a hypothetical
example showing the expenses of a $10,000 investment for the time periods indicated and then, except as shown below, assuming you sell all of your shares
at the end of those periods. The example assumes a 5% average annual return and that fund expenses will not change over the periods. Although your actual
costs may be higher or lower, based on these assumptions, your costs would be:
John Hancock Core High Yield Fund
Expenses ($)
A
Shares
C
I
R2
R4
R6
Sold
Not Sold
1 year
508
288
188
85
126
101
74
3 years
736
582
582
265
393
337
235
5 years
982
1,001
1,001
460
681
591
410
1,687
2,169
2,169
1,025
1,500
1,320
917
10 years
PORTFOLIO TURNOVER
The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the fund’s performance. During its most recent fiscal year, the fund’s portfolio turnover rate was 41% of the
average value of its portfolio.
PRINCIPAL INVESTMENT STRATEGIES
Under normal market conditions, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in corporate debt securities that
are rated, at the time of purchase, below investment-grade (debt securities rated Ba and below by Moody’s Investors Service, Inc. (Moody’s) and BB and below
by Standard & Poor’s Ratings Services (S&P), and their unrated equivalents, are considered high-yield and junk bonds). Up to 30% of the total assets of the
fund may be invested in debt securities of foreign issuers, including those in emerging markets. The fund may also invest up to 10% of its total assets in
domestic and foreign equities of any market capitalization range. The fund’s investment policies are based on credit ratings at the time of purchase. The fund
will invest in high-yield securities that offer the potential for higher returns, as they carry a higher yield to compensate for the higher risk.
The manager uses a fundamentally driven research process that focuses on current income and capital appreciation, with the aim of managing for the potential
loss of capital. The manager may take into account the credit quality, country of issue, interest rate, liquidity, maturity, and yield of a security as well as other
factors, including the fund’s duration and prevailing and anticipated market conditions. There is no limit on the fund’s average maturity. The corporate debt
that the fund invests in includes traditional corporate bonds as well as bank loans (including loan participations). Some bank loans may be illiquid. No more
than 10% of the fund’s total assets may be invested in securities that are rated in default by Moody’s, S&P, and its unrated equivalents. The fund may engage
in derivatives transactions that include bond futures, interest-rate futures and swaps, and credit default swaps, in each case for the purpose of reducing risk
and/or enhancing investment returns.
PRINCIPAL RISKS
An investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Many factors affect performance, and fund shares will fluctuate in price, meaning you could lose money. The fund’s investment strategy may not
produce the intended results.
During periods of heightened market volatility or reduced liquidity, governments, their agencies, or other regulatory bodies, both within the United States and
abroad, may take steps to intervene. These actions, which could include legislative, regulatory, or economic initiatives, might have unforeseeable consequences
and could adversely affect the fund’s performance or otherwise constrain the fund’s ability to achieve its investment objective.
The fund’s main risks are listed below in alphabetical order. Before investing, be sure to read the additional descriptions of these risks beginning on page 5 of
the prospectus.
Changing distribution levels risk. The fund may cease or reduce the level of its distribution if income or dividends paid from its investments declines.
Credit and counterparty risk. The issuer or guarantor of a fixed-income security, the counterparty to an over-the-counter derivatives contract, or a borrower
of fund securities may not make timely payments or otherwise honor its obligations. A downgrade or default affecting any of the fund’s securities could affect
the fund’s performance.
Cybersecurity risk. Cybersecurity breaches may allow an unauthorized party to gain access to fund assets, customer data, or proprietary information, or
cause a fund or its service providers to suffer data corruption or lose operational functionality. Similar incidents affecting issuers of a fund’s securities may
negatively impact performance.
Defaulted debt risk. Investing in defaulted debt securities is speculative and involves substantial risks in addition to those of non-defaulted high-yield
securities. Defaulted debt securities generally do not generate interest payments. Principal on defaulted debt might not be repaid, and a fund could lose up to
its entire investment.
Economic and market events risk. Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in unusually high market volatility, which could negatively impact performance. Reduced
liquidity in credit and fixed-income markets could adversely affect issuers worldwide. Banks and financial services companies could suffer losses if interest rates
rise or economic conditions deteriorate.
Equity securities risk. The price of equity securities may decline due to changes in a company’s financial condition or overall market conditions.
Fixed-income securities risk. A rise in interest rates typically causes bond prices to fall. The longer the average maturity or duration of the bonds held by a
fund, the more sensitive it will likely be to interest-rate fluctuations. An issuer may not make all interest payments or repay all or any of the principal borrowed.
Changes in a security’s credit quality may adversely affect fund performance.
John Hancock Core High Yield Fund
Foreign securities risk. Less information may be publicly available regarding foreign issuers. Foreign securities may be subject to foreign taxes and may be
more volatile than U.S. securities. Currency fluctuations and political and economic developments may adversely impact the value of foreign securities. The risks
of investing in foreign securities are magnified in emerging markets.
Hedging, derivatives, and other strategic transactions risk. Hedging, derivatives, and other strategic transactions may increase a fund’s volatility and
could produce disproportionate losses, potentially more than the fund’s principal investment. Risks of these transactions are different from and possibly greater
than risks of investing directly in securities and other traditional instruments. Under certain market conditions, derivatives could become harder to value or sell
and may become subject to liquidity risk (i.e., the inability to enter into closing transactions). Derivatives and other strategic transactions that the fund intends
to utilize include: futures contracts, credit default swaps, and interest-rate swaps. Futures contracts and swaps generally are subject to counterparty risk. In
addition, swaps may be subject to interest-rate and settlement risk, and the risk of default of the underlying reference obligation.
High portfolio turnover risk. Trading securities actively and frequently can increase transaction costs (thus lowering performance) and taxable distributions.
Large company risk. Larger companies may grow more slowly than smaller companies or be slower to respond to business developments. Largecapitalization securities may underperform the market as a whole.
Liquidity risk. The extent to which a security may be sold or a derivative position closed without negatively impacting its market value, if at all, may be
impaired by reduced market activity or participation, legal restrictions, or other economic and market impediments. Liquidity risk may be magnified in rising
interest rate environments due to higher than normal redemption rates. Widespread selling of fixed-income securities to satisfy redemptions during periods of
reduced demand may adversely impact the price or salability of such securities. Periods of heavy redemption could cause the fund to sell assets at a loss or
depressed value, which could negatively affect performance. Redemption risk is heightened during periods of declining or illiquid markets.
Loan participations risk. Participations and assignments involve special types of risks, including credit risk, interest-rate risk, counterparty risk, liquidity risk,
risks associated with extended settlement, and the risks of being a lender.
Lower-rated and high-yield fixed-income securities risk. Lower-rated and high-yield fixed-income securities (junk bonds) are subject to greater credit
quality risk, risk of default, and price volatility than higher-rated fixed-income securities, may be considered speculative, and can be difficult to resell.
Small and mid-sized company risk. Small and mid-sized companies are generally less established and may be more volatile than larger companies. Small
capitalization securities may underperform the market as a whole.
PAST PERFORMANCE
The following information illustrates the variability of the fund’s returns and provides some indication of the risks of investing in the fund by showing changes
in the fund’s performance from year to year compared with a broad-based market index. Past performance (before and after taxes) does not indicate future
results. All figures assume dividend reinvestment. Performance information is updated daily, monthly, and quarterly and may be obtained at our website,
jhinvestments.com, or by calling 800-225-5291, Monday to Thursday, 8:00 A.M.—7:00 P.M., and Friday, 8:00 A.M.—6:00 P.M., Eastern time (Class A and Class
C), or 888-972-8696 between 8:30 A.M. and 5:00 P.M., Eastern time, on most business days (Class I, Class R2, Class R4, and Class R6).
A note on performance
Prior to March 12, 2012, the fund was not open to investment by the general public. Performance prior to this date does not reflect additional expenses
associated with publicly offering the fund’s shares. Class A shares commenced operations on April 30, 2009. Class C shares commenced operations on March
27, 2013; and Class R2, Class R4, and Class R6 shares commenced operations on March 27, 2015. Returns prior to a share class’s commencement date are
those of Class A shares that have been recalculated to reflect the gross fees and expenses of the applicable share class. Returns for Class C, Class R2, Class R4,
and Class R6 shares would have been substantially similar to returns of Class A shares because each share class is invested in the same portfolio of securities
and returns would differ only to the extent that expenses of the classes are different.
Please note that after-tax returns (shown for Class A shares only) reflect the highest individual federal marginal income-tax rate in effect as of the date
provided and do not reflect any state or local taxes. Your actual after-tax returns may be different. After-tax returns are not relevant to shares held in an IRA,
401(k), or other tax-advantaged investment plan. After-tax returns for other share classes would vary.
Calendar year total returns (%)—Class A (sales charges are not reflected in the bar chart and returns would have been lower if they were)
2010
20.82
2011
6.74
2012
15.49
Year-to-date total return. The fund’s total return for the three months ended March 31, 2016, was 1.76%.§
Best quarter: Q3 ‘10, 7.86%§
Worst quarter: Q3 ’15, –6.73%
2013
8.48
2014
0.76
2015
–7.19
John Hancock Core High Yield Fund
Since
inception
(04/30/09)
Average annual total returns (%)—as of 12/31/15
1 year
5 year
Class A before tax
–10.91
3.72
9.41
–13.53
0.44
5.10
–6.07
1.69
5.79
Class C
–8.67
3.52
8.90
Class I
–6.95
4.87
10.41
Class R2
–7.38
4.36
9.86
Class R4
–7.20
4.53
10.03
Class R6
–6.85
4.97
10.51
Bank of America Merrill Lynch US High Yield Master II Constrained Index (reflects no deduction for fees, expenses, or taxes)
–4.61
4.84
10.89
after tax on distributions
after tax on distributions, with sale
INVESTMENT MANAGEMENT
Investment advisor John Hancock Advisers, LLC§
Subadvisor John Hancock Asset Management a division of Manulife Asset Management (North America) Limited
PORTFOLIO MANAGEMENT
John F. Addeo, CFA
Senior Managing Director and Senior Portfolio Manager
Managed the fund since 2016
Dennis F. McCafferty, CFA
Managing Director and Portfolio Manager
Managed the fund since 2016
PURCHASE AND SALE OF FUND SHARES
Effective as of the close of business on July 25, 2016, the fund will not accept orders from new investors to purchase shares of the fund. However, discretionary
fee-based advisory programs which include the fund as an investment option as of the close of business on July 25, 2016, may continue to make the fund’s
shares available to new and existing accounts. The fund will remain open to purchases and redemptions from existing shareholders until on or about October
28, 2016.
The minimum initial investment requirement for Class A and Class C shares is $1,000 ($250 for group investments), except that there is no minimum for certain
group retirement plans or certain fee-based or wrap accounts. The minimum initial investment requirement for Class I shares is $250,000, except that the fund
may waive the minimum for any category of investors at the fund’s sole discretion. There are no minimum initial investment requirements for Class R2 or Class
R4 shares. The minimum initial investment requirement for Class R6 shares is $1 million, except that there is no minimum for: qualified and nonqualified plan
investors that do not require the fund or its affiliates to pay any type of administrative payment; Trustees; employees of the advisor or its affiliates; or members
of the fund’s portfolio management team. There are no subsequent minimum investment requirements for any of these share classes.
Shares may be redeemed on any business day by mail: John Hancock Signature Services, Inc., P.O. Box 55913, Boston, Massachusetts 02205-5913; or for most
account types through our website: jhinvestments.com; or by telephone: 800-225-5291 (Class A and Class C); 888-972-8696 (Class I and Class R6). Class R2
and Class R4 shares may be redeemed on any business day by contacting your retirement plan administrator or recordkeeper.
TAXES
The fund’s distributions are taxable, and will be taxed as ordinary income and/or capital gains, unless you are investing through a tax-deferred arrangement, such as
a 401 (k) plan or individual retirement account. Withdrawals from such tax-deferred arrangements may be subject to tax at a later date.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If you purchase the fund through a broker-dealer or other financial intermediary (such as a bank, registered investment advisor, financial planner, or retirement
plan administrator), the fund and its related companies may pay the broker-dealer or other intermediary for the sale of fund shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another
investment. These payments are not applicable to Class R6 shares. Ask your salesperson or visit your financial intermediary’s website for more information.
© 2016 JOHN HANCOCK FUNDS, LLC 3460SP 7/1/16 SEC file number: 811-21777
Click here for the prospectus.§
Click here for the Statement of Additional Information.