John Hancock

Hedged Equity & Income Fund

Ticker: HEQ Semiannual report 6/30/15

Managed distribution plan

The fund has adopted a managed distribution plan (Plan). Under the Plan, the fund makes quarterly distributions of an amount equal to $0.376 per share, which will be paid quarterly until further notice. The fund may make additional distributions: (i) for purposes of not incurring federal income tax on the fund of investment company taxable income and net capital gain, if any, not included in such regular distributions; and (ii) for purposes of not incurring federal excise tax on ordinary income and capital gain net income, if any, not included in such regular distributions.

The Plan provides that the Board of Trustees of the fund may amend the terms of the Plan or terminate the Plan at any time without prior notice to the fund's shareholders. The Plan is subject to periodic review by the fund's Board of Trustees.

You should not draw any conclusions about the fund's investment performance from the amount of the fund's distributions or from the terms of the fund's Plan. The fund's total return at NAV is presented in the Financial highlights section.

With each distribution that does not consist solely of net income, the fund will issue a notice to shareholders and an accompanying press release that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. The fund may, at times, distribute more than its net investment income and net realized capital gains; therefore, a portion of your distribution may result in a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital does not necessarily reflect the fund's investment performance and should not be confused with yield or income.

Dear shareholder,

Despite improving economic conditions in many developed countries and continued central bank stimulus, global market volatility crept up near the end of the period. European markets were shaken by the ongoing debt crisis in Greece, including that country's default on debt payments and initial vote to reject the terms of a bailout package from European creditors. A subsequent deal offered hope of an orderly resolution. Meanwhile, in China, the stock market rally fizzled in June, and the ensuing sell-off was stemmed only as a result of massive government intervention. In the United States, a stronger economy has increased the chances that the U.S. Federal Reserve will raise short-term interest rates this year—an event investors have viewed with trepidation for some time.

We may be in for a period of rising volatility as markets adjust to the idea of more normalized monetary policy in the United States and as the European debt situation continues to play out. Unpleasant as they are, these periods can ultimately be beneficial to the long-term health of markets, resetting valuations and investor expectations on a more realistic trajectory. The near-term challenge for many investors will be maintaining the discipline to stick to a well-constructed long-term financial plan in the face of short-term market disruptions. As always, we recommend that your first course of action be a conversation with your financial advisor. We also believe investors can be well served by owning broadly diversified asset allocation funds or by adding alternative strategies such as absolute return funds to a diversified portfolio.

At John Hancock Investments, one of the ways we seek to maximize the value shareholders receive is by lowering expenses where possible. To that end, we were pleased to announce a sweeping package of expense reductions across a wide range of funds. Details can be found at jhinvestments.com.

On behalf of everyone at John Hancock Investments, I'd like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you've placed in us.

Sincerely,

Andrew G. Arnott
President and Chief Executive Officer
John Hancock Investments

This commentary reflects the CEO's views as of June 30, 2015. They are subject to change at any time. For more up-to-date information, you can visit our website at jhinvestments.com.

John Hancock
Hedged Equity & Income Fund

Table of contents

2		Your fund at a glance
4		Discussion of fund performance
8		Fund's investments
26		Financial statements
29		Financial highlights
30		Notes to financial statements
38		Additional information
39		Continuation of investment advisory and subadvisory agreements
44		Shareholder meeting
45		More information

INVESTMENT OBJECTIVE

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The fund seeks to provide total return with a focus on current income and gains and also consisting of long-term capital appreciation.

AVERAGE ANNUAL TOTAL RETURNS AS OF 6/30/15 (%)

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The MSCI All Country World Index (gross of foreign withholding tax on dividends) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.

It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower values.

The fund's most recent performance and current annualized distribution rate can be found at www.jhinvestments.com.

The fund's performance at net asset value (NAV) is different from the fund's performance at closing market price because the closing market price is subject to the dynamics of secondary market trading, which could cause the fund to trade at a discount or premium to its NAV at any time.

The performance data contained within this material represents past performance, which does not guarantee future results.

PERFORMANCE HIGHLIGHTS OVER THE LAST SIX MONTHS

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Positive absolute returns

Buoyed by its equity strategy, the fund was up for the six months ending June 30, 2015.

Bonds a mixed bag

The fund held global high-yield fixed-income investments during the period, contributing to absolute performance, though they trailed equities.

Hedges hindered

The fund's hedging strategy, which is designed to reduce stock market risk using futures contracts, weighed on returns during this period of modestly rising equities.

PORTFOLIO COMPOSITION AS OF 6/30/15 (%)

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A note about risks

As is the case with all closed-end funds, shares of this fund may trade at a discount to the fund's net asset value. An investment in the fund is subject to investment and market risks, including the possible loss of the entire principal invested. There is no guarantee prior distribution levels will be maintained and distributions may include a substantial tax return of capital. Fixed-income investments are subject to interest-rate risk; their value will normally decline as interest rates rise. An issuer of securities held by the fund may default, have its credit rating downgraded, or otherwise perform poorly, which may affect fund performance. Investing in derivative instruments involves risks different from, and in some cases greater than, the risks associated with investing directly in securities and other traditional investments. Certain market conditions, including reduced trading volume, heightened volatility, and rising interest rates, may impair liquidity, the ability of the fund to sell securities or close derivative positions at advantageous prices. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. The primary risks associated with the use of futures contracts and options are imperfect correlation, unanticipated market movement, and counterparty risk. Investments in higher-yielding, lower-rated securities include a higher risk of default.

What did you observe in the markets over the six months ended June 30, 2015?

The extended rally in stocks continued as global equities were generally up for the period. Still, investors endured a number of worrisome headlines along the way, including disappointing manufacturing data from China and Japan, as well as questions about Greece's future in the eurozone.

The Bank of Japan expanded its quantitative easing policy, the People's Bank of China surprised markets with its first rate cut in two years, and the European Central Bank announced a massive asset-purchase program to combat low inflation and stimulate growth. European equities benefited from the accommodative policy measures and from improving economic data, including positive trends in manufacturing, exports, and economic sentiment.

A continued boom in corporate takeovers also fueled bullish sentiment, as merger-and-acquisition deal volume remained robust. Eight of ten sectors in the fund's reference benchmark, the MSCI All Country World Index, posted positive returns, with healthcare, consumer discretionary, and telecommunication services stocks leading the way. The utilities and energy sectors declined.

Would you recap the fund's performance overall?

For the six-month period ended June 30, 2015, the fund posted total returns of 3.43% at net asset value and 2.38% at closing market price. The fund's benchmark, a proxy for the global stock markets, posted a 2.97% return. The fund's call option and equity strategies contributed to relative returns, but its market risk hedging positions, using futures contracts, weighed on results.

What drove performance in the fund's equity portfolio specifically?

The fund's equity strategy generated positive relative returns (i.e., relative to the benchmark) for the period, driven by stock selection. Favorable selection within the telecommunications services and financials sectors contributed to relative performance. Partially offsetting results was less favorable selection within the energy and utilities sectors. Sector allocation, a byproduct of the bottom-up

"A continued boom in corporate takeovers also fueled bullish sentiment, as merger-and-acquisition deal volume remained robust."

stock selection process, modestly detracted from relative results; underweight exposure to the consumer discretionary sector and a modest overweight allocation to utilities hindered performance.

In terms of individual holdings, top contributors to relative performance included U.S.-based manufacturer and marketer of packaged foods Kraft Foods Group Inc., Japan-based telecommunication services company Nippon Telegraph and Telephone Corp., and Japan-based pharmaceutical company Eisai Company, Ltd.

Detractors from relative performance included positions in U.S.-based semiconductor chip manufacturer Intel Corp., U.S.-based electric power and gas distribution company Duke Energy Corp., and Netherlands-based financial services provider Delta Lloyd NV.

SECTOR COMPOSITION AS OF 6/30/15 (%)

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"The fund's call option and equity strategies contributed to relative returns, but its market risk hedging and high-yield bond strategies weighed on results."

Would you comment further on the performance of the fund's options and beta hedging strategies?

On the one hand, the written calls on the S&P 500 Index contributed positively to results, generating income for the fund amid the relatively muted performance of U.S. stocks.

On the other hand, the fund's beta hedge strategy detracted from results. Designed to reduce equity market exposure by selling futures contracts on the S&P 500 Index and the MSCI EAFE Index, this strategy generally hinders performance when stocks rise, as they did during this period.

How about the fund's bond exposure?

The fund held global high-yield bonds to aid its income-generating capability. While this fixed-income allocation generated positive absolute performance, the fund might have done even better relative to its equity benchmark without those positions, as stocks outpaced bonds during this particular period.

How was the fund positioned at the end of the period?

At the end of the period, the fund's equity portfolio had overweight allocations to the financials, materials, telecommunication services, and utilities sectors, and underweight allocations to the consumer discretionary, consumer staples, healthcare, and information technology sectors. From a

TOP 10 HOLDINGS AS OF 6/30/15 (%)

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Merck & Company, Inc.	2.0
Microsoft Corp.	1.9
The PNC Financial Services Group, Inc.	1.7
Maxim Integrated Products, Inc.	1.7
British American Tobacco PLC	1.7
JPMorgan Chase & Co.	1.6
Duke Energy Corp.	1.3
Nippon Telegraph & Telephone Corp.	1.3
Intel Corp.	1.2
Bristol-Myers Squibb Company	1.2
TOTAL	15.6
As a percentage of net assets.
Cash and cash equivalents are not included.

regional standpoint, the fund was overweight equities in Japan, Europe, and North America, and underweight emerging markets.

As always, we remain vigilant about risk, and we believe that the fund's strategy, which seeks to participate in rising markets while limiting exposure to the downside and generating income, complements the more traditional stock and bond holdings that tend to dominate the portfolios of most investors.

MANAGED BY

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	Kent M. Stahl, CFA On the fund since 2011 Investing since 1985
	Gregg R. Thomas, CFA On the fund since 2011 Investing since 1993

COUNTRY COMPOSITION AS OF 6/30/15 (%)

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United States	56.0
Japan	10.3
United Kingdom	8.1
France	3.5
Germany	3.3
Switzerland	3.3
Canada	2.1
Netherlands	2.1
China	1.7
Spain	1.4
Other countries	8.2
TOTAL	100.0
As a percentage of net assets.

The views expressed in this report are exclusively those of Kent M. Stahl, CFA, Wellington Management Company LLP, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund's investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.

 

	As of 6-30-15 (unaudited)
																Shares						Value
	Common stocks 81.5%																					$195,088,761
	(Cost $185,029,217)
	Consumer discretionary 6.2%																					14,854,441
	Auto components 0.9%
	Aisan Industry Company, Ltd.															14,300						134,120
	Delphi Automotive PLC															6,348						540,151
	Exedy Corp.															7,600						189,759
	Keihin Corp.															14,200						203,464
	Nissin Kogyo Company, Ltd.															6,500						107,229
	Sumitomo Riko Company, Ltd.															18,000						143,531
	Takata Corp.															11,300						122,989
	Tokai Rika Company, Ltd.															8,300						207,315
	Toyoda Gosei Company, Ltd.															12,000						289,251
	Toyota Boshoku Corp.															16,300						274,686
	Automobiles 0.4%
	Honda Motor Company, Ltd.															14,200						458,942
	Peugeot SA (I)															11,549						238,161
	Renault SA															2,665						279,418
	Diversified consumer services 0.1%
	Allstar Co-Invest LLC (I)(R)															236,300						255,204
	Benesse Holdings, Inc.															1,600						40,111
	Hotels, restaurants and leisure 0.4%
	McDonald's Corp.															10,392						987,967
	Household durables 1.3%
	D.R. Horton, Inc.															17,616						481,974
	Funai Electric Company, Ltd.															15,200						169,055
	Newell Rubbermaid, Inc.															24,400						1,003,084
	Nikon Corp.															21,100						243,846
	Pioneer Corp. (I)															103,900						189,172
	PulteGroup, Inc.															46,291						932,764
	Internet and catalog retail 0.1%
	Home Retail Group PLC															51,206						135,971
	Qliro Group AB (I)															49,556						73,181
	Media 1.0%
	Avex Group Holdings, Inc.															7,900						138,621
	Gendai Agency, Inc.															5,200						28,931
	Metropole Television SA															9,867						192,161
	ProSiebenSat.1 Media AG															26,426						1,305,289
	Proto Corp.															3,300						53,152
	Sky PLC															35,530						578,700

																Shares						Value
	Consumer discretionary  (continued)
	Multiline retail 0.2%
	Dollar General Corp.															6,165						$479,267
	New World Department Store China, Ltd.															202,000						53,661
	Specialty retail 1.6%
	Adastria Company, Ltd.															6,700						239,528
	Honeys Company, Ltd.															12,030						102,174
	Nishimatsuya Chain Company, Ltd.															18,500						186,124
	Pal Company, Ltd.															4,800						157,618
	Ross Stores, Inc.															7,993						388,540
	Shimamura Company, Ltd.															1,900						199,479
	The Home Depot, Inc.															21,538						2,393,518
	Xebio Company, Ltd.															9,700						189,474
	Textiles, apparel and luxury goods 0.2%
	Daphne International Holdings, Ltd.															402,000						100,619
	Ralph Lauren Corp.															2,767						366,240
	Consumer staples 5.5%																					13,068,996
	Beverages 0.7%
	The Coca-Cola Company															45,135						1,770,646
	Food and staples retailing 0.2%
	Cawachi, Ltd.															7,400						111,315
	J Sainsbury PLC															79,626						331,461
	Food products 2.6%
	Ebro Foods SA															27,725						537,153
	Ingredion, Inc.															13,729						1,095,711
	Kraft Foods Group, Inc.															29,365						2,500,136
	Pinnacle Foods, Inc.															25,226						1,148,792
	Suedzucker AG															13,763						229,235
	Unilever NV															17,110						715,354
	Household products 0.2%
	The Procter & Gamble Company															6,420						502,301
	Personal products 0.1%
	Oriflame Holding AG (I)															10,701						172,975
	Tobacco 1.7%
	British American Tobacco PLC															73,435						3,953,917
	Energy 6.8%																					16,244,389
	Energy equipment and services 0.3%
	Ensco PLC, Class A															14,177						315,722
	National Oilwell Varco, Inc.															8,380						404,586
	Oil, gas and consumable fuels 6.5%
	BP PLC															121,507						806,402
	Canadian Natural Resources, Ltd.															14,308						388,605

																Shares						Value
	Energy  (continued)
	Oil, gas and consumable fuels  (continued)
	Chevron Corp.															25,251						$2,435,964
	Encana Corp.															10,300						113,556
	Eni SpA															26,905						477,876
	Exxon Mobil Corp.															13,417						1,116,294
	Gazprom OAO, ADR															42,654						224,787
	Harum Energy Tbk PT															484,500						40,071
	HollyFrontier Corp.															10,854						463,357
	Indo Tambangraya Megah Tbk PT															62,200						59,779
	Inpex Corp.															20,500						232,694
	Japan Petroleum Exploration Company, Ltd.															7,200						228,960
	Lukoil OAO, ADR															5,350						240,269
	Marathon Oil Corp.															85,025						2,256,564
	Occidental Petroleum Corp.															14,606						1,135,909
	Painted Pony Petroleum, Ltd. (I)															12,700						80,938
	Petro Rio SA (I)															2,930						3,864
	PetroChina Company, Ltd., H Shares															952,000						1,060,239
	Petroleo Brasileiro SA, ADR (I)															25,867						234,096
	Royal Dutch Shell PLC, B Shares															35,167						1,001,222
	Statoil ASA															3,568						63,807
	Suncor Energy, Inc.															51,808						1,425,756
	Total SA															29,216						1,433,072
	Financials 21.5%																					51,350,316
	Banks 9.8%
	Allahabad Bank															61,017						82,834
	Alpha Bank AE (I)															264,837						70,270
	Banca Popolare dell'Emilia Romagna SC															20,148						179,767
	BNP Paribas SA															7,192						436,430
	CaixaBank SA															199,288						927,346
	Canara Bank															20,441						88,818
	China Construction Bank Corp., H Shares															1,294,000						1,180,329
	CIT Group, Inc.															5,882						273,454
	Corp. Bank															63,930						50,566
	Dah Sing Financial Holdings, Ltd.															16,000						104,873
	HSBC Holdings PLC															184,029						1,647,871
	ING Groep NV															29,858						495,803
	JPMorgan Chase & Co.															56,689						3,841,247
	KB Financial Group, Inc.															5,862						193,609
	M&T Bank Corp.															3,189						398,402
	Mitsubishi UFJ Financial Group, Inc.															286,500						2,061,213
	Mizuho Financial Group, Inc.															227,200						491,600
	Nordea Bank AB															104,942						1,308,810
	OTP Bank PLC															9,925						196,158

																Shares						Value
	Financials  (continued)
	Banks  (continued)
	Piraeus Bank SA (I)															217,523						$73,237
	Shinhan Financial Group Company, Ltd.															3,315						123,391
	Societe Generale SA															7,907						371,026
	Standard Chartered PLC															29,084						465,763
	Sumitomo Mitsui Financial Group, Inc.															11,500						511,971
	Svenska Handelsbanken AB, A Shares															46,141						673,578
	The Eighteenth Bank, Ltd.															10,000						30,639
	The Oita Bank, Ltd.															15,000						63,911
	The PNC Financial Services Group, Inc.															43,503						4,161,062
	The Tochigi Bank, Ltd.															16,000						91,117
	The Yamanashi Chuo Bank, Ltd.															18,000						85,067
	UniCredit SpA															39,546						265,784
	Wells Fargo & Company															45,013						2,531,531
	Capital markets 2.1%
	BlackRock, Inc.															7,168						2,479,985
	Henderson Group PLC															284,692						1,168,019
	Julius Baer Group, Ltd. (I)															4,068						228,272
	LPL Financial Holdings, Inc.															7,869						365,830
	UBS Group AG															30,021						636,940
	Uranium Participation Corp. (I)															31,800						133,158
	Consumer finance 0.0%
	Manappuram Finance, Ltd.															221,288						97,396
	Diversified financial services 0.5%
	Intercontinental Exchange, Inc.															1,857						415,244
	MSCI, Inc.															13,146						809,136
	Insurance 6.6%
	ACE, Ltd.															14,553						1,479,749
	Ageas															9,499						366,503
	Assicurazioni Generali SpA															55,497						1,000,265
	CNO Financial Group, Inc.															61,685						1,131,920
	Delta Lloyd NV															67,795						1,112,483
	FNF Group															20,470						757,185
	Marsh & McLennan Companies, Inc.															41,595						2,358,437
	MetLife, Inc.															41,258						2,310,035
	Storebrand ASA (I)															62,752						258,495
	T&D Holdings, Inc.															31,600						471,077
	The Dai-ichi Life Insurance Company, Ltd.															17,200						337,765
	Tokio Marine Holdings, Inc.															8,600						357,666
	Tongyang Life Insurance															10,279						140,451
	Willis Group Holdings PLC															34,710						1,627,899
	Zurich Insurance Group AG (I)															6,494						1,976,966

																Shares						Value
	Financials  (continued)
	Real estate investment trusts 1.0%
	Blackstone Mortgage Trust, Inc., Class A															20,470						$569,475
	ICADE															7,720						552,201
	Weyerhaeuser Company															36,279						1,142,789
	Real estate management and development 1.5%
	Castellum AB															52,290						734,871
	Deutsche Annington Immobilien SE															54,791						1,546,090
	Deutsche Wohnen AG															36,129						828,290
	The Unite Group PLC															53,264						478,247
	Health care 9.2%																					22,007,168
	Biotechnology 0.1%
	Sinovac Biotech, Ltd. (I)															23,008						120,792
	Health care equipment and supplies 0.2%
	Zimmer Holdings, Inc.															4,256						464,883
	Health care providers and services 1.0%
	Aetna, Inc.															7,422						946,008
	AmerisourceBergen Corp.															3,367						358,047
	Quest Diagnostics, Inc.															12,487						905,557
	Suzuken Company, Ltd.															2,490						79,663
	Health care technology 0.0%
	AGFA-Gevaert NV (I)															36,551						101,985
	Life sciences tools and services 0.0%
	CMIC Holdings Company, Ltd.															6,600						92,107
	Pharmaceuticals 7.9%
	Almirall SA															12,394						245,661
	AstraZeneca PLC															35,123						2,222,943
	Bristol-Myers Squibb Company															44,293						2,947,256
	Daiichi Sankyo Company, Ltd.															10,700						197,742
	Eisai Company, Ltd.															25,100						1,682,819
	H. Lundbeck A/S (I)															12,554						241,545
	Johnson & Johnson															16,688						1,626,412
	Merck & Company, Inc.															85,688						4,878,218
	Ono Pharmaceutical Company, Ltd.															4,000						436,580
	Pfizer, Inc.															44,207						1,482,261
	Roche Holding AG															8,757						2,455,388
	Takeda Pharmaceutical Company, Ltd.															10,800						521,301
	Industrials 8.6%																					20,481,293
	Aerospace and defense 1.5%
	Honeywell International, Inc.															12,118						1,235,672
	Raytheon Company															5,111						489,020
	Thales SA															5,240						316,606

																Shares						Value
	Industrials  (continued)
	Aerospace and defense  (continued)
	United Technologies Corp.															13,712						$1,521,072
	Air freight and logistics 0.4%
	Deutsche Post AG															20,801						607,790
	PostNL NV (I)															78,216						349,149
	Airlines 0.3%
	American Airlines Group, Inc.															7,110						283,938
	Deutsche Lufthansa AG (I)															23,986						309,468
	Qantas Airways, Ltd. (I)															74,692						181,500
	Building products 0.4%
	Cie de Saint-Gobain															11,024						497,639
	Fortune Brands Home & Security, Inc.															9,742						446,378
	Commercial services and supplies 0.1%
	Aeon Delight Company, Ltd.															4,800						147,080
	Moshi Moshi Hotline, Inc.															8,500						95,107
	Construction and engineering 0.1%
	Raubex Group, Ltd.															60,709						101,220
	Toyo Engineering Corp.															54,000						128,267
	Electrical equipment 2.0%
	Eaton Corp. PLC															39,060						2,636,159
	OSRAM Licht AG															2,648						126,682
	Schneider Electric SE															24,577						1,701,687
	Ushio, Inc.															15,100						196,551
	Zumtobel Group AG															1,496						44,410
	Industrial conglomerates 1.3%
	3M Company															5,986						923,640
	General Electric Company															30,315						805,470
	Koninklijke Philips NV															7,752						197,850
	Rheinmetall AG															7,351						372,864
	Siemens AG															8,046						814,025
	Machinery 0.2%
	Fuji Machine Manufacturing Company, Ltd.															4,600						48,138
	Hisaka Works, Ltd.															9,200						83,621
	The Japan Steel Works, Ltd.															54,000						223,151
	Toshiba Machine Company, Ltd.															42,000						192,374
	Marine 0.1%
	D/S Norden A/S (I)															8,207						206,734
	Pacific Basin Shipping, Ltd.															414,000						139,116
	Professional services 0.4%
	Adecco SA (I)															4,160						337,615
	en-japan, Inc.															8,300						148,815
	Hays PLC															86,846						222,725

																Shares						Value
	Industrials  (continued)
	Professional services  (continued)
	USG People NV															10,861						$161,207
	Road and rail 0.6%
	Union Pacific Corp.															14,200						1,354,254
	Trading companies and distributors 0.5%
	Fastenal Company															11,039						465,625
	Kuroda Electric Company, Ltd.															11,300						210,295
	Mitsubishi Corp.															17,300						380,323
	SIG PLC															50,105						157,774
	Transportation infrastructure 0.7%
	Hamburger Hafen und Logistik AG															5,778						116,822
	Jiangsu Expressway Company, Ltd., H Shares															1,146,000						1,503,460
	Information technology 10.5%																					25,238,803
	Communications equipment 1.5%
	Cisco Systems, Inc.															103,812						2,850,678
	QUALCOMM, Inc.															11,095						694,880
	Electronic equipment, instruments and components 0.5%
	Avnet, Inc.															12,916						530,977
	Hosiden Corp.															28,000						171,384
	Kingboard Laminates Holdings, Ltd.															334,500						158,911
	Mitsumi Electric Company, Ltd.															9,300						63,060
	Nichicon Corp.															26,000						211,426
	Internet software and services 0.2%
	DeNa Company, Ltd.															14,200						279,069
	Dropbox, Inc. (I)(R)															7,248						128,942
	Gree, Inc.															32,200						188,038
	IT services 1.1%
	Alten SA															3,664						170,549
	Booz Allen Hamilton Holding Corp.															43,075						1,087,213
	Cap Gemini SA															2,722						241,486
	Devoteam SA															1,275						35,921
	Fujitsu, Ltd.															76,000						424,638
	GFI Informatique SA															4,237						27,842
	Itochu Techno-Solutions Corp.															10,700						266,469
	NET One Systems Company, Ltd.															21,200						148,828
	Sopra Steria Group															3,577						322,230
	Semiconductors and semiconductor equipment 3.9%
	Intel Corp.															98,271						2,988,912
	Kontron AG (I)															14,745						65,082
	Lam Research Corp.															7,533						612,810
	Marvell Technology Group, Ltd.															25,541						336,758
	Maxim Integrated Products, Inc.															117,867						4,075,252

																Shares						Value
	Information technology  (continued)
	Semiconductors and semiconductor equipment  (continued)
	Micronas Semiconductor Holding AG (I)															15,030						$86,766
	Mimasu Semiconductor Industry Company, Ltd.															7,500						75,418
	Miraial Company, Ltd.															6,500						73,340
	Rohm Company, Ltd.															3,700						247,897
	SCREEN Holdings Company, Ltd.															38,000						239,142
	Shinkawa, Ltd. (I)															15,400						136,706
	Shinko Electric Industries Company, Ltd.															33,300						240,110
	Tokyo Seimitsu Company, Ltd.															10,600						232,252
	Software 2.2%
	Activision Blizzard, Inc.															14,420						349,108
	Alpha Systems, Inc.															1,900						30,427
	Microsoft Corp.															102,152						4,510,011
	Nintendo Company, Ltd.															1,900						316,972
	Technology hardware, storage and peripherals 1.1%
	Apple, Inc.															5,975						749,414
	Canon, Inc.															12,100						392,504
	Compal Electronics, Inc.															145,000						110,293
	Japan Digital Laboratory Company, Ltd.															3,800						53,093
	Melco Holdings, Inc.															8,300						156,700
	SanDisk Corp.															7,921						461,161
	Western Digital Corp.															8,877						696,134
	Materials 5.9%																					14,227,822
	Chemicals 2.2%
	Agrium, Inc.															3,800						402,727
	Akzo Nobel NV															11,042						806,166
	E.I. du Pont de Nemours & Company															15,075						964,046
	Fujimi, Inc.															4,500						67,692
	Hitachi Chemical Company, Ltd.															8,600						154,895
	JSR Corp.															16,300						287,749
	Methanex Corp.															9,633						536,173
	Mitsui Chemicals, Inc.															55,000						204,340
	Nitto Denko Corp.															2,600						213,518
	PTT Global Chemical PCL															220,100						448,200
	Sumitomo Bakelite Company, Ltd.															48,000						217,447
	The Dow Chemical Company															21,812						1,116,120
	Construction materials 0.3%
	Buzzi Unicem SpA															19,489						277,641
	CRH PLC															2,913						81,729
	Holcim, Ltd. (I)															3,147						232,203
	Lafarge SA															3,109						205,558

																Shares						Value
	Materials  (continued)
	Containers and packaging 0.6%
	AMVIG Holdings, Ltd.															240,000						$123,374
	Bemis Company, Inc.															7,900						355,579
	Graphic Packaging Holding Company															26,381						367,487
	Packaging Corp. of America															8,603						537,601
	Metals and mining 1.5%
	Aichi Steel Corp.															11,000						49,151
	Anglo American Platinum, Ltd. (I)															7,080						159,646
	Anglo American PLC															19,631						283,598
	Aquarius Platinum, Ltd. (I)															273,117						29,381
	Barrick Gold Corp.															14,500						154,984
	BHP Billiton PLC															24,857						488,730
	Centerra Gold, Inc.															31,300						177,926
	Chubu Steel Plate Company, Ltd.															9,300						40,988
	Eldorado Gold Corp.															37,602						155,672
	G-Resources Group, Ltd.															4,368,000						140,743
	Impala Platinum Holdings, Ltd. (I)															36,250						161,758
	Ivanhoe Mines, Ltd., Class A (I)															113,000						81,425
	Kinross Gold Corp. (I)															77,610						180,055
	Kyoei Steel, Ltd.															9,900						182,935
	Lonmin PLC (I)															62,570						110,152
	Maruichi Steel Tube, Ltd.															7,400						183,670
	Neturen Company, Ltd.															6,100						43,977
	Northern Dynasty Minerals, Ltd. (I)															16,000						5,444
	NV Bekaert SA															5,811						164,026
	Resolute Mining, Ltd. (I)															255,282						60,592
	Salzgitter AG															6,188						221,219
	Tokyo Steel Manufacturing Company, Ltd.															26,600						195,687
	Yamato Kogyo Company, Ltd.															6,700						156,499
	Yodogawa Steel Works, Ltd.															27,000						117,756
	Paper and forest products 1.3%
	International Paper Company															49,275						2,344,997
	Norbord, Inc.															35,100						736,566
	Telecommunication services 3.9%																					9,437,839
	Diversified telecommunication services 3.3%
	Hellenic Telecommunications Organization SA															21,847						160,677
	KT Corp. (I)															11,651						296,883
	Magyar Telekom Telecommunications PLC (I)															124,096						173,348
	Nippon Telegraph & Telephone Corp.															83,200						3,013,149
	Orange SA															19,862						306,954
	Telefonica SA															26,706						380,437
	Telenor ASA															62,698						1,374,644
	Verizon Communications, Inc.															46,086						2,148,068

																Shares						Value
	Telecommunication services  (continued)
	Wireless telecommunication services 0.6%
	Mobistar SA (I)															10,018						$189,865
	NTT DOCOMO, Inc.															72,600						1,393,814
	Utilities 3.4%																					8,177,694
	Electric utilities 2.0%
	Duke Energy Corp.															43,455						3,068,792
	Edison International															13,815						767,838
	The Southern Company															10,145						425,076
	Xcel Energy, Inc.															13,330						428,959
	Independent power and renewable electricity producers 0.0%
	NTPC, Ltd.															51,354						110,840
	Multi-utilities 1.4%
	Centrica PLC															260,436						1,080,674
	E.ON SE															15,914						212,205
	GDF Suez															18,806						350,137
	National Grid PLC															52,567						676,581
	PG&E Corp.															17,999						883,751
	RWE AG															8,036						172,841
							Rate (%)			Maturity date			Par value^									Value
	Corporate bonds 14.9%																					$35,581,472
	(Cost $37,509,346)
	Consumer discretionary 2.7%																					6,546,147
	Auto components 0.1%
	ZF North America Capital, Inc. (S)						4.500			04-29-22									150,000			147,375
	Automobiles 0.2%
	FCA US LLC						8.250			06-15-21									230,000			250,700
	General Motors Company						4.875			10-02-23									160,000			168,467
	General Motors Company						6.250			10-02-43									65,000			72,375
	Diversified consumer services 0.2%
	Service Corp. International						7.625			10-01-18									125,000			142,500
	The ServiceMaster Company LLC						7.000			08-15-20									321,000			339,056
	Hotels, restaurants and leisure 0.3%
	CEC Entertainment, Inc.						8.000			02-15-22									130,000			129,025
	Cirsa Funding Luxembourg SA (S)						5.875			05-15-23								EUR	115,000			123,733
	Cirsa Funding Luxembourg SA						5.875			05-15-23								EUR	100,000			107,594
	NH Hotel Group SA (S)						6.875			11-15-19								EUR	235,000			285,896
	Household durables 0.3%
	Argos Merger Sub, Inc. (S)						7.125			03-15-23									105,000			109,988
	K Hovnanian Enterprises, Inc. (S)						8.000			11-01-19									150,000			138,750
	KB Home						7.000			12-15-21									375,000			387,188
	Lennar Corp.						4.750			11-15-22									125,000			122,813

							Rate (%)			Maturity date			Par value^									Value
	Consumer discretionary  (continued)
	Media 1.3%
	Altice Financing SA (S)						6.500			01-15-22								EUR	100,000			$118,453
	Altice Finco SA (S)						9.000			06-15-23								EUR	100,000			125,889
	CCO Holdings LLC						5.125			02-15-23									5,000			4,875
	CCO Holdings LLC						5.250			09-30-22									5,000			4,925
	CCO Holdings LLC						5.750			09-01-23									35,000			35,066
	CCO Holdings LLC						7.375			06-01-20									255,000			269,344
	Cequel Communications Holdings I LLC (S)						5.125			12-15-21									285,000			258,816
	Cequel Communications Holdings I LLC (S)						5.125			12-15-21									55,000			49,947
	DISH DBS Corp.						6.750			06-01-21									170,000			177,225
	DISH DBS Corp.						7.875			09-01-19									395,000			438,450
	Gannett Company, Inc. (S)