0000045288
jhnbx-20081002:S000000646
2008-10-02
0000045288
jhnbx-20081002:C000001854
2008-10-02
0000045288
jhnbx-20081002:C000001855
2008-10-02
0000045288
jhnbx-20081002:C000001856
2008-10-02
0000045288
jhnbx-20081002:C000001857
2008-10-02
0000045288
ici-rr:Registrant_item
2008-10-02
0000045288
jhnbx-20081002:C000001858
2008-10-02
xbrli:pure
iso4217:USD
Goal and strategy
To seek a high level of current income consistent
with prudent investment risk. Under normal market conditions, the fund invests
at least 80% of its assets in a diversified portfolio of bonds. These may
include, but are not limited to, corporate bonds and debentures, as well as
U.S. government and agency securities. Most of these securities are investment
grade, although the fund may invest up to 25% of assets in high-yield bonds
rated as low as CC/Ca and their unrated equivalents. There is no limit on
the fund's average maturity. In managing the fund's portfolio, the subadviser
concentrates on sector allocation, industry allocation and securities selection:
deciding which types of bonds and industries to emphasize at a given time,
and then which individual bonds to buy. When making sector and industry allocations,
the subadviser tries to anticipate shifts in the business cycle, using top-down
analysis to determine which sectors and industries may benefit over the next
12 months. In choosing individual securities, the subadviser uses bottom-up
research to find securities that appear comparatively undervalued. The subadviser
looks at bonds of all quality levels and maturities from many different issuers,
potentially including foreign governments and corporations denominated in
U.S. dollars or foreign currencies. The fund will not invest more than 10%
of its total assets in securities denominated in foreign currencies. The fund
intends to keep its exposure to interest rate movements generally in line
with those of its peers. The fund may invest in mortgage-related securities
and certain other derivatives (investments whose value is based on indexes,
securities or currencies). The fund's investments in U.S. government and agency
securities may or may not be supported by the full faith and credit of the
United States. Under normal circumstances, the fund may not invest more than
10% of assets in cash or cash equivalents. In abnormal circumstances, the
fund may temporarily invest extensively in investment-grade short-term securities.
In these and other cases, the fund might not achieve its goal. The fund may
trade securities actively, which could increase its transaction costs (thus
lowering performance) and increase your taxable distributions.
Main 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. The fund's shares will go up and down in price,
meaning that you could lose money by investing in the fund. Many factors influence
a mutual fund's performance. The fund's main risk factors are listed below.
Before investing, be sure to read the additional descriptions of these risks
beginning on page 4. Active management risk The fund teams investment strategy
may fail to produce the intended result. 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 a funds securities, will be unable
or unwilling to make timely principal, interest or settlement payments, or
otherwise to honor its obligations. U.S. government securities are subject
to varying degrees of credit risk depending upon the nature of their support.
Fixed-income securities risk A rise in interest rates typically causes bond
prices to fall. The longer the average maturity of the bonds held by the fund,
the more sensitive the fund is likely to be to interest rate changes. There
is the possibility that the issuer of the security will not repay all or a
portion of the principal borrowed and will not make all interest payments.
Lower-rated fixed-income securities and high-yield securities involve a higher
degree of risk than fixed-income securities in higher-rated categories. Foreign
securities risk As compared to U.S. companies, there may be less publicly
available information relating to foreign companies. Foreign securities may
be subject to foreign taxes. The value of foreign securities is subject to
currency fluctuations and adverse political and economic developments. Hedging,
derivatives and other strategic transactions risk investing in derivatives
can magnify losses incurred by the underlying assets. Mortgage-backed and
asset-backed securities risk Different types of mortgage-backed securities
and asset-backed securities are subject to different combinations of prepayment,
extension, interest rate and/or other market risks.
t
t
Past performance
They are shown only for Class I and would
be different for other classes. How the fund's returns vary from year to year
can give an idea of its risk; however, as always, past performance (before
and after taxes) does not indicate future results. All figures assume dividend
reinvestment.
t
Calendar year total returns
? Class I (%)
1
1998
0.0794
1999
0.0097
2000
0.1085
2001
0.0761
2002
0.0783
2003
0.0808
2004
0.0503
2005
0.0278
2006
0.0491
2007
0.0534
1
November 9, 1973 is the inception date for
the Class A shares. Class I shares were first offered on September 4, 2001;
the returns prior to this date are those of Class A shares that have been
recalculated to apply the fees and expenses of Class I shares.
Year to Date
0.0129
2008-06-30
Highest
Quarter
0.0414
2000-12-31
Lowest
Quarter
0.0244
2004-06-30
Average annual total returns
Average annual total returns (%)
1
Average
Annual Return
0.0534
0.0522
0.0589
2007-12-31
Average Annual Return After Taxes on Distributions
2
0.0325
0.0325
0.036
2007-12-31
Average Annual Return After Taxes on Distributions
and Sales
2
0.0344
0.033
0.0362
2007-12-31
Lehman Brothers Government/Credit Bond Index
3
0.0723
0.0444
0.0601
1
November 9, 1973 is the
inception date for the Class A shares. Class I shares were first offered on
September 4, 2001; the returns prior to this date are those of Class A shares
that have been recalculated to apply the fees and expenses of Class I shares.
2
After-tax returns These are shown only for
Class I and would be different for other classes. They reflect the highest
individual federal marginal income tax rates in effect at the time 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.
3
Lehman Brothers Government/Credit Bond Index
is an unmanaged index of U.S.government, U.S. corporate and Yankee bonds.
Average annual total returns (%)
Average
Annual Return
0.0081
0.037
0.0486
1998-10-01
1998-10-01
1998-10-01
Lehman Brothers Government/Credit Bond Index
2
0.0723
0.0444
0.0601
0.0543
2
Lehman Brothers Government/Credit
BondIndex is an unmanaged index of U.S.government, U.S. corporate and Yankee
bonds.
Average annual total returns (%)
Average
Annual Return
0.0317
0.0403
0.0431
1998-10-01
1998-10-01
1998-10-01
Lehman Brothers Government/Credit Bond Index
2
0.0723
0.0444
0.0601
0.0543
2
Lehman Brothers Government/Credit
BondIndex is an unmanaged index of U.S.government, U.S. corporate and Yankee
bonds.
Past performance
These do not include sales charges and would
have been lower if they did. They are shown only for Class A and would be
different for other classes. How the fund's returns vary from year to year
can give an idea of its risk; however, as always, past performance (before
and after taxes) does not indicate future results. All figures assume dividend
reinvestment.
t
Calendar year total returns
? Class A (%)
1998
0.075
1999
0.0136
2000
0.1039
2001
0.0712
2002
0.0736
2003
0.0762
2004
0.0453
2005
0.0238
2006
0.0445
2007
0.049
Year to Date
0.015
2008-06-30
Highest
Quarter
0.0403
2000-12-31
Lowest
Quarter
0.0256
2004-06-30
Average annual total returns
These include sales charges.
Performance of broad-based market indexes is included for comparison. Indexes
have no sales charges and you cannot invest in them directly. All figures
assume dividend reinvestment.
Average annual total returns (%)
1
Average
Annual Return
0.0017
0.038
0.0496
1998-10-01
Average Annual Return After Taxes on Distributions
0.0167
0.0201
0.0278
1998-10-01
Average Annual Return After Taxes on Distributions
and Sales
0.0008
0.0218
0.0287
1998-10-01
Lehman Brothers Government/Credit Bond Index
2
0.0723
0.0444
0.0601
0.0543
1
After-tax returns These
are shown only for Class A and would be different for other classes. They
reflect the highest individual federal marginal income tax rates in effect
at the time 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.
2
Lehman Brothers Government/Credit BondIndex
is an unmanaged index of U.S.government, U.S. corporate and Yankee bonds.
Past performance
They are shown only for
Class R1 and would be different for other classes. How the fund's returns
vary from year to year can give an idea of its risk; however, as always, past
performance (before and after taxes) does not indicate future results. All
figures assume dividend reinvestment.
t
Calendar year total returns
? Class R1 (%)
1
1998
0.0699
1999
0.0185
2000
0.0987
2001
0.0664
2002
0.0687
2003
0.0719
2004
0.0437
2005
0.021
2006
0.0368
2007
0.039
1
November 9, 1973 is the inception date for
the Class A shares. Class I shares were first offered on September 4, 2001;
the returns prior to this date are those of Class A shares that have been
recalculated to apply the fees and expenses of Class I shares.
Year to Date
0.0119
2008-06-30
Highest
Quarter
0.0391
2000-12-31
Lowest
Quarter
0.0262
2004-06-30
Average annual total returns
1
Average annual total returns (%)
Average
Annual Return
0.039
0.0424
0.0493
2007-12-31
Average Annual Return After Taxes on Distributions
0.0233
0.026
0.0284
2007-12-31
Average Annual Return After Taxes on Distributions
and Sales
0.0251
0.0266
0.0291
2007-12-31
Lehman Brothers Government/Credit Bond Index
0.0723
0.0444
0.0601
1
After-tax returnsThese are
shown only for Class R1 and would be different for other classes. They reflect
the highest individual federal marginal income tax rates in effect at the
time 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.
2
Lehman Brothers Government/Credit BondIndex
is an unmanaged index of U.S.government, U.S. corporate and Yankee bonds.
Investor costs
Maximum Cumulative Sales Charge / Offering
Price
Maximum Deferred Sales Charge / Offering Price
Annual operating expenses (%)
1
Management fee
0.005
Distribution and service (12b-1) fees
0.005
Service plan fee
2
0.0009
Other expenses
0.0025
Total fund operating expenses
0.0134
1
These are paid from fund assets; shareholders,
therefore, pay these costs indirectly.
2
Under the service plan, the fund may pay a
fee of up to 0.25% for certain other services to retirement plans or participants.
Service plan fees shown are actual fees paid for the previous fiscal year.
Expense example
A hypothetical example showing the expenses
on a $10,000 investment during the various time frames indicated. The example
assumes a 5% average annual return and the reinvestment of all dividends.
The example is for comparison only and does not reflect actual expenses and
returns, either past or future.
Expenses ($)
1 Year
136
3 Years
425
5 Years
734
10 Years
1613
Shareholder transaction expenses
(%)
1
Maximum front-end sales charge (load) on purchases
as a % of purchase price
0
Maximum deferred sales charge (load) as a
% of purchase or sale price, whichever is less
0.05
1
A $4.00 fee will be charged
for wire redemptions.
Annual operating expenses (%)
1
Management fee
0.005
Distribution and service (12b-1) fees
0.01
Distribution or Similar Non 12b-1 Fees / Assets
Other
expenses
3
0.0026
Total fund operating expenses
3
0.0176
3
The fund receives credits from its transfer
agent as a result of uninvested cash balances; these credits (which may differ
from class to class depending on the number and size of shareholder accounts
in the class) are used to reduce a portion of the funds transfer agent fees.
Such fee reduction is not reflected in the table. Had this fee reduction been
taken into account, total fund operating expenses would have been 1.75% for
Class B.
1
These are paid from fund
assets; shareholders, therefore, pay these costs indirectly.
Expense example
A hypothetical example showing the expenses
on a $10,000 investment during the various time frames indicated. The example
assumes a 5% average annual return and the reinvestment of all dividends.
The example is for comparison only and does not reflect actual expenses and
returns, either past or future.
Expenses ($)
1 Year
679
3 Years
854
5 Years
1154
10 Years
4
1886
1 Year
179
3 Years
554
5 Years
954
10 Years
4
1886
4
Reflects conversion of Class
B shares to Class A shares after eight years.
4
Reflects conversion of Class B shares to Class
A shares after eight years.
Shareholder transaction expenses (%)
1
Maximum front-end sales charge (load) on purchases
as a % of purchase price
0
Maximum deferred sales charge (load) as a
% of purchases or sale price, whichever is less
0.01
1
A $4.00 fee will be charged
for wire redemptions.
Annual operating expenses (%)
1
Management fee
0.005
Distribution and service (12b-1) fees
0.01
Distribution or Similar Non 12b-1 Fees / Assets
Other
expenses
0.0025
Total fund operating expenses
0.0175
1
These are paid from fund assets; shareholders,
therefore, pay these costs indirectly.
Expense example
A hypothetical example showing
the expenses on a $10,000 investment during the various time frames indicated.
The example assumes a 5% average annual return and the reinvestment of all
dividends. The example is for comparison only and does not reflect actual
expenses and returns, either past or future.
Expenses ($)
1 Year
278
3 Years
551
5 Years
949
10 Years
2062
1 Year
178
3 Years
551
5 Years
949
10 Years
2062
Investor costs
These are paid from fund assets; shareholders,
therefore, pay these costs indirectly.
Shareholder transaction expenses1 (%)
1
Maximum front-end sales charge (load) on purchases
as a % of purchase price
0.045
Maximum deferred sales charge (load) as a
% of purchase or sale price, whichever is less
2
0
1
A $4.00 fee will be charged
for wire redemptions.
2
Except for investments of
$1 million or more; see "How sales charges are calculated."
Annual operating expenses (%)
1
Management fee
0.005
Distribution and service (12b-1) fees
0.003
Distribution or Similar Non 12b-1 Fees / Assets
Other
expenses
0.0025
Total fund operating expenses
0.0105
1
These are paid from fund assets; shareholders,
therefore, pay these costs indirectly.
Expense example
A hypothetical example showing
the expenses on a $10,000 investment during the various time frames indicated.
The example assumes a 5% average annual return and the reinvestment of all
dividends. The example is for comparison only and does not reflect actual
expenses and returns, either past or future.
Expenses ($)
1 Year
552
3 Years
769
5 Years
1003
10 Years
1675
Investor costs
Maximum Cumulative Sales Charge / Offering
Price
Maximum Deferred Sales Charge / Offering Price
Annual operating expenses (%)
1
Management fee
0.005
Distribution and service (12b-1) fees
Distribution or Similar Non 12b-1 Fees / Assets
Other
expenses
0.0012
Total fund operating expenses
0.0062
1
These are paid from fund assets; shareholders,
therefore, pay these costs indirectly.
Expense example
A hypothetical example showing
the expenses on a $10,000 investment during the various time frames indicated.
The example assumes a 5% average annual return and the reinvestment of all
dividends. The example is for comparison only and does not reflect actual
expenses and returns, either past or future.
Expenses ($)
1 Year
63
3 Years
199
5 Years
346
10 Years
774
2008-10-02
2008-10-02
The purpose of submitting
the tagged exhibit is to test the related format and technology and, as a
result, investors should not rely on this exhibit in making investment decisions.