===========================NOTES TO FINANCIAL
John Hancock Funds - Income Securities Trust
NOTE A -
John Hancock Income Securities Trust (the "Fund") is a closed-end investment management company registered
under the Investment Company Act of 1940.
Significant accounting policies of the Fund are as follows:
VALUATION OF INVESTMENTS Securities in the Fund's portfolio are valued on the basis of market
quotations, valuations provided by independent pricing services or at fair value as determined in good faith in
accordance with procedures approved by the Trustees. Short-term debt investments maturing within 60 days are
valued at amortized cost, which approximates market value.
JOINT REPURCHASE AGREEMENT Pursuant to an exemptive order issued by the Securities and Exchange
Commission, the Fund, along with other registered investment companies having a management contract with
John Hancock Advisers, Inc. (the "Adviser"), a wholly owned subsidiary of The Berkeley Financial Group, Inc.,
may participate in a joint repurchase agreement transaction. Aggregate cash balances are invested in one or more
repurchase agreements whose underlying securities are obligations of the U.S. government and/or its agencies.
The Fund's custodian bank receives delivery of the underlying securities for the joint account on the Fund's
behalf. The Adviser is responsible for ensuring that the agreement is fully collateralized at all times.
INVESTMENT TRANSACTIONS Investment transactions are recorded as of the date of purchase, sale or
maturity. Net realized gains and losses on sales of investments are determined on the identified cost basis.
FEDERAL INCOME TAXES The Fund qualifies as a "regulated investment company" by complying with the
applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable
income which is distributed to shareholders. Therefore, no federal income tax provision is required. For