Shareholder Report
May 31, 2025
USD ($)
Holding
This report describes changes to the fund that occurred during the reporting period.
What were the fund costs during the last year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| California Municipal Bond Fund (Class R6/JCSRX) |
$51 | 0.51% |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
California Municipal Bond Fund (Class R6/JCSRX) returned 0.07% for the year ended May 31, 2025. The most significant factors affecting fund performance during the period included declining short- and intermediate-term municipal bond yields, rising longer-term municipal bond yields, record levels of new municipal bond supply, and three short-term interest rate cuts by the U.S. Federal Reserve. The underperformance of California municipal bonds relative to the broader municipal bond market was also a key factor.
TOP PERFORMANCE CONTRIBUTORS
Housing bonds | Bonds funding housing projects in California were the top-performing sector in the portfolio.
High-yield municipal bonds | A noteworthy position in high-yield securities aided fund performance as high-yield bonds outperformed investment-grade securities.
Special tax bonds | The fund benefited from holdings of special tax bonds funding land development projects.
TOP PERFORMANCE DETRACTORS
Longer-term municipal bonds | The fund’s position in California municipal bonds maturing in 10 or more years detracted from performance as this maturity sector declined.
Local general obligation (GO) bonds | Local GOs were the largest sector weighting on average during the period, and the fund’s holdings in this sector declined overall.
The views expressed in this report are exclusively those of the portfolio management team at Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $1,000,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $1,000,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| California Municipal Bond Fund (Class R6/JCSRX) | 0.07% | 1.22% | 2.22% |
| Bloomberg Municipal Bond Index | 2.03% | 0.55% | 2.13% |
| Bloomberg California Municipal Bond Index | 1.71% | 0.33% | 2.06% |
Fund Statistics
| Fund net assets | $519,286,048 |
| Total number of portfolio holdings | 439 |
| Total advisory fees paid (net) | $1,829,462 |
| Portfolio turnover rate | 42% |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing a percentage of the total investments of the fund.
Portfolio Composition
| General obligation bonds | 23.0% |
| Revenue bonds | 76.6% |
| Other revenue | 16.3% |
| Health care | 12.2% |
| Education | 10.0% |
| Airport | 8.5% |
| Facilities | 7.2% |
| Water and sewer | 6.5% |
| Housing | 4.2% |
| Development | 3.7% |
| Tobacco | 3.6% |
| Utilities | 2.6% |
| Transportation | 1.8% |
| Closed-end funds | 0.4% |
Quality Composition
Ratings are from Moody’s Investors Service, Inc. If not available, we have used S&P Global Ratings. In the absence of ratings from these agencies, we have used Fitch Ratings, Inc. “Not rated” securities are those with no ratings available from these agencies. All ratings are as of 5-31-25 and do not reflect subsequent downgrades or upgrades, if any.
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
Ratings are from Moody’s Investors Service, Inc. If not available, we have used S&P Global Ratings. In the absence of ratings from these agencies, we have used Fitch Ratings, Inc. “Not rated” securities are those with no ratings available from these agencies. All ratings are as of 5-31-25 and do not reflect subsequent downgrades or upgrades, if any.
Material Fund Changes
Effective October 1, 2024, the Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.43% of the fund’s average daily net assets.
This is a summary of certain changes to the fund since 6-1-24 . For more complete information, please refer to the fund’s prospectus. The currently effective prospectus is available at jhinvestments.com/documents or by calling 800-225-5291.
Effective October 1, 2024, the Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.43% of the fund’s average daily net assets.
This is a summary of certain changes to the fund since 6-1-24 . For more complete information, please refer to the fund’s prospectus. The currently effective prospectus is available at jhinvestments.com/documents or by calling 800-225-5291.
This report describes changes to the fund that occurred during the reporting period.
What were the fund costs during the last year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| California Municipal Bond Fund (Class A/TACAX) |
$72 | 0.72% |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
California Municipal Bond Fund (Class A/TACAX) declined 0.14% (excluding sales charges) for the year ended May 31, 2025. The most significant factors affecting fund performance during the period included declining short- and intermediate-term municipal bond yields, rising longer-term municipal bond yields, record levels of new municipal bond supply, and three short-term interest rate cuts by the U.S. Federal Reserve. The underperformance of California municipal bonds relative to the broader municipal bond market was also a key factor.
TOP PERFORMANCE CONTRIBUTORS
Housing bonds | Bonds funding housing projects in California were the top-performing sector in the portfolio.
High-yield municipal bonds | A noteworthy position in high-yield securities aided fund performance as high-yield bonds outperformed investment-grade securities.
Special tax bonds | The fund benefited from holdings of special tax bonds funding land development projects.
TOP PERFORMANCE DETRACTORS
Longer-term municipal bonds | The fund’s position in California municipal bonds maturing in 10 or more years detracted from performance as this maturity sector declined.
Local general obligation (GO) bonds | Local GOs were the largest sector weighting on average during the period, and the fund’s holdings in this sector declined overall.
The views expressed in this report are exclusively those of the portfolio management team at Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $10,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $10,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| California Municipal Bond Fund (Class A/TACAX) | (4.13)% | 0.21% | 1.67% |
| California Municipal Bond Fund (Class A/TACAX)—excluding sales charge | (0.14)% | 1.02% | 2.08% |
| Bloomberg Municipal Bond Index | 2.03% | 0.55% | 2.13% |
| Bloomberg California Municipal Bond Index | 1.71% | 0.33% | 2.06% |
Fund Statistics
| Fund net assets | $519,286,048 |
| Total number of portfolio holdings | 439 |
| Total advisory fees paid (net) | $1,829,462 |
| Portfolio turnover rate | 42% |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing a percentage of the total investments of the fund.
Portfolio Composition
| General obligation bonds | 23.0% |
| Revenue bonds | 76.6% |
| Other revenue | 16.3% |
| Health care | 12.2% |
| Education | 10.0% |
| Airport | 8.5% |
| Facilities | 7.2% |
| Water and sewer | 6.5% |
| Housing | 4.2% |
| Development | 3.7% |
| Tobacco | 3.6% |
| Utilities | 2.6% |
| Transportation | 1.8% |
| Closed-end funds | 0.4% |
Quality Composition
Ratings are from Moody’s Investors Service, Inc. If not available, we have used S&P Global Ratings. In the absence of ratings from these agencies, we have used Fitch Ratings, Inc. “Not rated” securities are those with no ratings available from these agencies. All ratings are as of 5-31-25 and do not reflect subsequent downgrades or upgrades, if any.
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
Ratings are from Moody’s Investors Service, Inc. If not available, we have used S&P Global Ratings. In the absence of ratings from these agencies, we have used Fitch Ratings, Inc. “Not rated” securities are those with no ratings available from these agencies. All ratings are as of 5-31-25 and do not reflect subsequent downgrades or upgrades, if any.
Material Fund Changes
Effective October 1, 2024, the Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.43% of the fund’s average daily net assets.
This is a summary of certain changes to the fund since 6-1-24 . For more complete information, please refer to the fund’s prospectus. The currently effective prospectus is available at jhinvestments.com/documents or by calling 800-225-5291.
Effective October 1, 2024, the Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.43% of the fund’s average daily net assets.
This is a summary of certain changes to the fund since 6-1-24 . For more complete information, please refer to the fund’s prospectus. The currently effective prospectus is available at jhinvestments.com/documents or by calling 800-225-5291.
This report describes changes to the fund that occurred during the reporting period.
What were the fund costs during the last year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| California Municipal Bond Fund (Class C/TCCAX) |
$146 | 1.47% |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
California Municipal Bond Fund (Class C/TCCAX) declined 0.89% (excluding sales charges) for the year ended May 31, 2025. The most significant factors affecting fund performance during the period included declining short- and intermediate-term municipal bond yields, rising longer-term municipal bond yields, record levels of new municipal bond supply, and three short-term interest rate cuts by the U.S. Federal Reserve. The underperformance of California municipal bonds relative to the broader municipal bond market was also a key factor.
TOP PERFORMANCE CONTRIBUTORS
Housing bonds | Bonds funding housing projects in California were the top-performing sector in the portfolio.
High-yield municipal bonds | A noteworthy position in high-yield securities aided fund performance as high-yield bonds outperformed investment-grade securities.
Special tax bonds | The fund benefited from holdings of special tax bonds funding land development projects.
TOP PERFORMANCE DETRACTORS
Longer-term municipal bonds | The fund’s position in California municipal bonds maturing in 10 or more years detracted from performance as this maturity sector declined.
Local general obligation (GO) bonds | Local GOs were the largest sector weighting on average during the period, and the fund’s holdings in this sector declined overall.
The views expressed in this report are exclusively those of the portfolio management team at Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $10,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $10,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| California Municipal Bond Fund (Class C/TCCAX) | (1.85)% | 0.27% | 1.32% |
| California Municipal Bond Fund (Class C/TCCAX)—excluding sales charge | (0.89)% | 0.27% | 1.32% |
| Bloomberg Municipal Bond Index | 2.03% | 0.55% | 2.13% |
| Bloomberg California Municipal Bond Index | 1.71% | 0.33% | 2.06% |
Fund Statistics
| Fund net assets | $519,286,048 |
| Total number of portfolio holdings | 439 |
| Total advisory fees paid (net) | $1,829,462 |
| Portfolio turnover rate | 42% |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing a percentage of the total investments of the fund.
Portfolio Composition
| General obligation bonds | 23.0% |
| Revenue bonds | 76.6% |
| Other revenue | 16.3% |
| Health care | 12.2% |
| Education | 10.0% |
| Airport | 8.5% |
| Facilities | 7.2% |
| Water and sewer | 6.5% |
| Housing | 4.2% |
| Development | 3.7% |
| Tobacco | 3.6% |
| Utilities | 2.6% |
| Transportation | 1.8% |
| Closed-end funds | 0.4% |
Quality Composition
Ratings are from Moody’s Investors Service, Inc. If not available, we have used S&P Global Ratings. In the absence of ratings from these agencies, we have used Fitch Ratings, Inc. “Not rated” securities are those with no ratings available from these agencies. All ratings are as of 5-31-25 and do not reflect subsequent downgrades or upgrades, if any.
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
Ratings are from Moody’s Investors Service, Inc. If not available, we have used S&P Global Ratings. In the absence of ratings from these agencies, we have used Fitch Ratings, Inc. “Not rated” securities are those with no ratings available from these agencies. All ratings are as of 5-31-25 and do not reflect subsequent downgrades or upgrades, if any.
Material Fund Changes
Effective October 1, 2024, the Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.43% of the fund’s average daily net assets.
This is a summary of certain changes to the fund since 6-1-24 . For more complete information, please refer to the fund’s prospectus. The currently effective prospectus is available at jhinvestments.com/documents or by calling 800-225-5291.
Effective October 1, 2024, the Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.43% of the fund’s average daily net assets.
This is a summary of certain changes to the fund since 6-1-24 . For more complete information, please refer to the fund’s prospectus. The currently effective prospectus is available at jhinvestments.com/documents or by calling 800-225-5291.
This report describes changes to the fund that occurred during the reporting period.
What were the fund costs during the last year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| California Municipal Bond Fund (Class I/JCAFX) |
$57 | 0.57% |
Management’s Discussion of Fund Performance
SUMMARY OF RESULTS
California Municipal Bond Fund (Class I/JCAFX) returned 0.01% for the year ended May 31, 2025. The most significant factors affecting fund performance during the period included declining short- and intermediate-term municipal bond yields, rising longer-term municipal bond yields, record levels of new municipal bond supply, and three short-term interest rate cuts by the U.S. Federal Reserve. The underperformance of California municipal bonds relative to the broader municipal bond market was also a key factor.
TOP PERFORMANCE CONTRIBUTORS
Housing bonds | Bonds funding housing projects in California were the top-performing sector in the portfolio.
High-yield municipal bonds | A noteworthy position in high-yield securities aided fund performance as high-yield bonds outperformed investment-grade securities.
Special tax bonds | The fund benefited from holdings of special tax bonds funding land development projects.
TOP PERFORMANCE DETRACTORS
Longer-term municipal bonds | The fund’s position in California municipal bonds maturing in 10 or more years detracted from performance as this maturity sector declined.
Local general obligation (GO) bonds | Local GOs were the largest sector weighting on average during the period, and the fund’s holdings in this sector declined overall.
The views expressed in this report are exclusively those of the portfolio management team at Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the fund (or for the life of the fund, if shorter). It assumes a $250,000 initial investment in the fund and in an appropriate, broad-based securities market index for the same period.
GROWTH OF $250,000
| AVERAGE ANNUAL TOTAL RETURN | 1 Year | 5 Years | 10 Years |
| California Municipal Bond Fund (Class I/JCAFX) | 0.01% | 1.19% | 2.22% |
| Bloomberg Municipal Bond Index | 2.03% | 0.55% | 2.13% |
| Bloomberg California Municipal Bond Index | 1.71% | 0.33% | 2.06% |
Fund Statistics
| Fund net assets | $519,286,048 |
| Total number of portfolio holdings | 439 |
| Total advisory fees paid (net) | $1,829,462 |
| Portfolio turnover rate | 42% |
Graphical Representation of Holdings
The tables below show the investment makeup of the fund, representing a percentage of the total investments of the fund.
Portfolio Composition
| General obligation bonds | 23.0% |
| Revenue bonds | 76.6% |
| Other revenue | 16.3% |
| Health care | 12.2% |
| Education | 10.0% |
| Airport | 8.5% |
| Facilities | 7.2% |
| Water and sewer | 6.5% |
| Housing | 4.2% |
| Development | 3.7% |
| Tobacco | 3.6% |
| Utilities | 2.6% |
| Transportation | 1.8% |
| Closed-end funds | 0.4% |
Quality Composition
Ratings are from Moody’s Investors Service, Inc. If not available, we have used S&P Global Ratings. In the absence of ratings from these agencies, we have used Fitch Ratings, Inc. “Not rated” securities are those with no ratings available from these agencies. All ratings are as of 5-31-25 and do not reflect subsequent downgrades or upgrades, if any.
Holdings may not have been held by the fund for the entire period and are subject to change without notice. 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 and may change at any time.
Ratings are from Moody’s Investors Service, Inc. If not available, we have used S&P Global Ratings. In the absence of ratings from these agencies, we have used Fitch Ratings, Inc. “Not rated” securities are those with no ratings available from these agencies. All ratings are as of 5-31-25 and do not reflect subsequent downgrades or upgrades, if any.
Material Fund Changes
Effective October 1, 2024, the Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.43% of the fund’s average daily net assets.
This is a summary of certain changes to the fund since 6-1-24 . For more complete information, please refer to the fund’s prospectus. The currently effective prospectus is available at jhinvestments.com/documents or by calling 800-225-5291.
Effective October 1, 2024, the Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.43% of the fund’s average daily net assets.
This is a summary of certain changes to the fund since 6-1-24 . For more complete information, please refer to the fund’s prospectus. The currently effective prospectus is available at jhinvestments.com/documents or by calling 800-225-5291.