Plan Disclosure Document September 2013

Transcription

1 Plan Disclosure Document September :529PDD FOR USE BY ACCOUNT HOLDERS INVESTING WITH A FINANCIAL CONSULTANT

2 John Hancock Freedom 529 A National Plan Offered by the EDUCATION TRUST of ALASKA IMPORTANT UPDATE TO THE JOHN HANCOCK FREEDOM 529 PLAN DISCLOSURE DOCUMENT PLEASE READ CAREFULLY This supplement, dated June 9, 2014, amends the John Hancock Freedom 529 Plan Disclosure Document, dated September You should review this information carefully and keep it with your current copy of the Plan Disclosure Document. JH Money Market Portfolio Effective September 2, 2014, John Hancock Freedom 529 will begin offering JH Money Market Portfolio Class A and Class C2 units. The last day that new accounts may be established in the existing JH Money Market Portfolio is August 29, Thereafter, John Hancock Freedom 529 will no longer accept investments from new investors in the existing JH Money Market Portfolio, and all new investors in the JH Money Market Portfolio must invest either in Class A or Class C2 units. Existing Account Holders in JH Money Market Portfolio as of August 29, 2014, will still be permitted to invest in the existing JH Money Market Portfolio. Existing Account Holders will also continue to have the ability to redeem units and make beneficiary, Account Holder and service option changes. Account Holders who own units in the existing JH Money Market Portfolio as of August 29, 2014, will be permitted to continue to exchange into the existing JH Money Market Portfolio. Account Holders who wish to make an exchange and who do not already own units in the existing JH Money Market Portfolio as of August 29, 2014, must exchange into either Class A or Class C2 units of the JH Money Market Portfolio. The fees for Class A and Class C2 of the JH Money Market Portfolio will be the same as for the existing JH Money Market Portfolio: the Program Management Fee will be 0.25% and the Trust and Distribution and Service Fees will be 0.00%, provided however, the Trustee has authorized the Program Manager to waive all or a portion of the annual program management fee for Class A and Class C2 of the JH Money Market Portfolio, to the extent necessary to maintain the net yield at 0.0% or above. The following updates Section IV, The Plan s Investment Options, Investment Risks and Performance beginning with the last paragraph on page 14: The following target allocations for each portfolio represent a single point in time, as of June 9, Allocations for other portfolios not reflected in this supplement may be found in the Plan Disclosure Document dated September For more current target allocations as well as actual allocations, please call or visit For more detailed information on each underlying mutual fund please refer to Appendix: Underlying Mutual Funds on page 22 of this supplement. 1

3 College Portfolio Emphasizing investment in a mix of high-quality, fixed-income funds, this portfolio also has an allocation invested in equity funds. The allocations remain relatively constant over time and reflect a lower-risk investment approach. Designed with a more conservative strategy, the portfolio seeks to minimize the risks associated with equity markets while generating income at a time when the Beneficiary may be using the Account. This portfolio is designed for a Beneficiary who is already enrolled or about to enroll in college % Conservative Fixed Income 40.00% T. Rowe Price Inflation Focused Bond Fund 40.00% Bond 20.00% T. Rowe Price Spectrum Income Fund 20.00% John Hancock Funds II Total Return Fund (subadvised by PIMCO) 20.00% Equity 5.14% T. Rowe Price Blue Chip Growth Fund 4.79% T. Rowe Price Equity Income Fund 3.42% John Hancock Funds II Capital Appreciation Fund (subadvised by Jennison) 2.50% John Hancock Disciplined Value Fund (subadvised by Robeco) 1.25% American Mutual Fund F % T. Rowe Price Real Assets Fund 0.95% Oppenheimer International Growth Fund Y 0.95% John Hancock Funds II International Value Fund (subadvised by Templeton) The target allocations of the remaining enrollment-based portfolios change and become more conservative over time. Portfolio Using a moderate-risk approach, this portfolio focuses on a mix of both domestic and international equity funds while seeking diversification through holdings in fixed-income funds. This mix of funds offers exposure to equities while substantially diversifying in the fixed-income market to reduce the risk and volatility typically associated with the equity market % Conservative Fixed Income 31.25% T. Rowe Price Inflation Focused Bond Fund 43.00% Bond 21.50% T. Rowe Price Spectrum Income Fund 21.50% John Hancock Funds II Total Return Fund (subadvised by PIMCO) 25.75% Equity 6.63% T. Rowe Price Blue Chip Growth Fund 6.16% T. Rowe Price Equity Income Fund 4.40% John Hancock Funds II Capital Appreciation Fund (subadvised by Jennison) 3.22% John Hancock Disciplined Value Fund (subadvised by Robeco) 1.61% American Mutual Fund F % T. Rowe Price Real Assets Fund 1.22% Oppenheimer International Growth Fund Y 1.22% John Hancock Funds II International Value Fund (subadvised by Templeton) 2

4 Portfolio This predominantly equity portfolio focuses on a mix of both domestic and international equity funds while seeking diversification through holdings in fixed-income funds. The portfolio s strategy is based on accepting the risks associated with stocks that have the potential to provide high returns in the equity markets, and cushioning the effects of volatility through diversification. 1.50% Conservative Fixed Income 1.50% T. Rowe Price Inflation Focused Bond Fund 50.00% Bond 25.00% T. Rowe Price Spectrum Income Fund 25.00% John Hancock Funds II Total Return Fund (subadvised by PIMCO) 48.50% Equity 8.35% T. Rowe Price Blue Chip Growth Fund 7.79% T. Rowe Price Equity Income Fund 5.56% John Hancock Funds II Capital Appreciation Fund (subadvised by Jennison) 5.27% Oppenheimer International Growth Fund Y 5.27% John Hancock Funds II International Value Fund (subadvised by Templeton) 4.08% John Hancock Disciplined Value Fund (subadvised by Robeco) 3.27% T. Rowe Price Mid Cap Value Fund 3.00% T. Rowe Price New Horizons Fund 2.43% T. Rowe Price Real Assets Fund 2.04% American Mutual Fund F % John Hancock Funds II Emerging Markets Fund (subadvised by DFA) Portfolio This predominantly equity portfolio seeks long-term capital appreciation by broadly investing in mutual funds primarily focused on both domestic and international equity markets. The strategy is based on the understanding that the volatility associated with equity markets is accompanied by the greatest potential for long-term capital appreciation % Bond 15.13% T. Rowe Price Spectrum Income Fund 15.13% John Hancock Funds II Total Return Fund (subadvised by PIMCO) 69.74% Equity 10.70% T. Rowe Price Blue Chip Growth Fund 10.00% T. Rowe Price Equity Income Fund 8.45% Oppenheimer International Growth Fund Y 8.45% John Hancock Funds II International Value Fund (subadvised by Templeton) 7.14% John Hancock Funds II Capital Appreciation Fund (subadvised by Jennison) 5.57% T. Rowe Price Mid Cap Value Fund 5.24% John Hancock Disciplined Value Fund (subadvised by Robeco) 5.10% T. Rowe Price New Horizons Fund 3.49% T. Rowe Price Real Assets Fund 2.98% John Hancock Funds II Emerging Markets Fund (subadvised by DFA) 2.62% American Mutual Fund F-1 3

5 Portfolio This all-equity portfolio seeks long-term capital appreciation by broadly investing in mutual funds primarily focused on both domestic and international equity markets. The strategy is based on the understanding that the volatility associated with equity markets is accompanied by the greatest potential for long-term capital appreciation % Bond 5.00% T. Rowe Price Spectrum Income Fund 5.00% John Hancock Funds II Total Return Fund (subadvised by PIMCO) 90.00% Equity 13.83% T. Rowe Price Blue Chip Growth Fund 12.90% T. Rowe Price Equity Income Fund 10.90% Oppenheimer International Growth Fund Y 10.90% John Hancock Funds II International Value Fund (subadvised by Templeton) 9.22% John Hancock Funds II Capital Appreciation Fund (subadvised by Jennison) 7.18% T. Rowe Price Mid Cap Value Fund 6.76% John Hancock Disciplined Value Fund (subadvised by Robeco) 6.58% T. Rowe Price New Horizons Fund 4.50% T. Rowe Price Real Assets Fund 3.85% John Hancock Funds II Emerging Markets Fund (subadvised by DFA) 3.38% American Mutual Fund F-1 Portfolio This all-equity portfolio seeks long-term capital appreciation by broadly investing in mutual funds primarily focused on both domestic and international equity markets. The strategy is based on the understanding that the volatility associated with equity markets is accompanied by the greatest potential for long-term capital appreciation. 100% Equity 15.34% T. Rowe Price Blue Chip Growth Fund 14.34% T. Rowe Price Equity Income Fund 12.11% Oppenheimer International Growth Fund Y 12.11% John Hancock Funds II International Value Fund (subadvised by Templeton) 10.24% John Hancock Funds II Capital Appreciation Fund (subadvised by Jennison) 7.98% T. Rowe Price Mid Cap Value Fund 7.52% John Hancock Disciplined Value Fund (subadvised by Robeco) 7.32% T. Rowe Price New Horizons Fund 5.00% T. Rowe Price Real Assets Fund 4.28% John Hancock Funds II Emerging Markets Fund (subadvised by DFA) 3.76% American Mutual Fund F-1 4

6 Equity Portfolio The Equity Portfolio seeks long-term capital appreciation by investing in a broad range of mutual funds focused on both domestic and international equity markets. This portfolio s strategy is based on the understanding that the volatility associated with equity markets is accompanied by the greatest potential for long-term capital appreciation. This portfolio also seeks to enhance performance and respond to market conditions by allowing broad allocation changes that reflect the outlook of the joint Investment Oversight Committee. The allocations within a particular asset class may be made to any or all of the funds within that asset class, subject to the following ranges for each asset class: 100% Equity Investment Range: 30 95% Domestic Large-Cap T. Rowe Price Blue Chip Growth Fund T. Rowe Price Equity Income Fund John Hancock Funds II Capital Appreciation Fund (subadvised by Jennison) John Hancock Disciplined Value Fund (subadvised by Robeco) American Mutual Fund F % Domestic Mid-Cap T. Rowe Price Mid Cap Value Fund 0 20% Domestic Small-Cap T. Rowe Price New Horizons Fund 10 30% International John Hancock Funds II International Value Fund (subadvised by Templeton) Oppenheimer International Growth Fund Y John Hancock Funds II Emerging Markets Fund (subadvised by DFA) 0 5% Global T. Rowe Price Real Assets Fund 5

7 The following information replaces John Hancock Freedom 529 Investment Performance on pages in Section IV, The Plan s Investment Options, Investment Risks and Performance: John Hancock Freedom 529 Investment Performance Performance information for each of the John Hancock Freedom 529 Investment Options, as of March 31, 2014, follows. For more recent performance, please visit or contact your financial consultant. In addition, annual performance data is sent to the address of record for all Account Holders. Current performance may be higher or lower than that quoted. As always, past performance does not indicate future results. Average Annual Total Returns as of 3/31/14 Without a Sales Charge With a Sales Charge Investment Options 1 Year 3 Year 5 Year 10 Year ITD 1 Year 3 Year 5 Year 10 Year ITD Inception Date College Portfolio Class A % 4.38% 7.75% 4.40% 4.24% 0.11% 3.15% 6.99% 4.03% 3.95% 7/2/01 Class A 2 Effective 6/3/ % 4.38% 7.75% 4.40% 4.24% 1.92% 2.52% 6.59% 3.84% 3.80% 7/2/01 Class B % 3.60% 6.93% 3.55% 3.82% 1.30% 2.65% 6.78% 3.55% 3.82% 9/30/03 Class C % 4.12% 7.48% 4.12% 3.96% 3.22% 4.12% 7.48% 4.12% 3.96% 7/2/01 Class C % 3.62% 6.96% 3.57% 4.12% 2.78% 3.62% 6.96% 3.57% 4.12% 9/30/02 Portfolio Class A % 6.22% 13.10% 6.07% 4.82% 2.34% 4.96% 12.29% 5.69% 4.53% 7/2/01 Class A 2 Effective 6/3/ % 6.22% 13.10% 6.07% 4.82% 0.49% 4.33% 11.89% 5.50% 4.38% 7/2/01 Class B % 5.43% 12.26% 5.22% 6.20% 1.26% 4.52% 12.13% 5.22% 6.20% 9/30/03 Class C % 5.95% 12.81% 5.78% 4.54% 5.77% 5.95% 12.81% 5.78% 4.54% 7/2/01 Class C % 5.42% 12.26% 5.22% 7.35% 5.27% 5.42% 12.26% 5.22% 7.35% 9/30/02 Portfolio Class A % 8.32% 16.08% 6.53% 5.06% 7.34% 7.04% 15.26% 6.15% 4.77% 7/2/01 Class A 2 Effective 6/3/ % 8.32% 16.08% 6.53% 5.06% 5.40% 6.39% 14.84% 5.96% 4.62% 7/2/01 Class B % 7.51% 15.23% 5.68% 6.81% 6.45% 6.64% 15.12% 5.68% 6.81% 9/30/03 Class C % 8.04% 15.79% 6.25% 4.80% 10.94% 8.04% 15.79% 6.25% 4.80% 7/2/01 Class C % 7.49% 15.22% 5.68% 8.06% 10.42% 7.49% 15.22% 5.68% 8.06% 9/30/02 Portfolio Class A % 9.98% 18.76% 6.75% 8.74% 9.63% 8.02% 17.49% 6.17% 8.21% 4/30/03 Class B % 9.17% 17.86% 5.89% 7.00% 10.84% 8.33% 17.75% 5.89% 7.00% 9/30/03 Class C % 9.18% 17.87% 5.90% 7.88% 14.85% 9.18% 17.87% 5.90% 7.88% 4/30/03 Portfolio Class A % 11.62% 20.43% N/A 5.51% 13.75% 9.63% 19.14% N/A 4.69% 4/30/07 Class B % 10.81% 19.54% N/A 4.73% 15.22% 9.99% 19.45% N/A 4.73% 4/30/07 Class C % 10.78% 19.53% N/A 4.72% 19.24% 10.78% 19.53% N/A 4.72% 4/30/07 Portfolio Class A % N/A N/A N/A 11.33% 15.11% N/A N/A N/A 9.29% 4/30/11 Class B % N/A N/A N/A 10.45% 16.56% N/A N/A N/A 9.31% 4/30/11 Class C % N/A N/A N/A 10.51% 20.52% N/A N/A N/A 10.51% 4/30/11 6

8 Average Annual Total Returns as of 3/31/14 (continued) Without a Sales Charge With a Sales Charge Investment Options 1 Year 3 Year 5 Year 10 Year ITD 1 Year 3 Year 5 Year 10 Year ITD Inception Date Future Trends Portfolio Class A % 16.97% 24.15% 8.94% 6.94% 28.43% 15.59% 23.26% 8.55% 6.64% 7/2/01 Class A 2 Effective 6/3/ % 16.97% 24.15% 8.94% 6.94% 26.10% 14.89% 22.81% 8.35% 6.49% 7/2/01 Class B % 16.11% 23.22% 8.07% 9.12% 28.07% 15.37% 23.14% 8.07% 9.12% 9/30/03 Class C % 16.67% 23.85% 8.64% 6.64% 32.79% 16.67% 23.85% 8.64% 6.64% 7/2/01 Class C % 16.09% 23.22% 8.05% 11.22% 32.10% 16.09% 23.22% 8.05% 11.22% 9/30/02 Equity Portfolio Class A % 12.09% 20.55% 7.54% 5.87% 17.15% 10.77% 19.70% 7.15% 5.58% 7/2/01 Class A 2 Effective 6/3/ % 12.09% 20.55% 7.54% 5.87% 15.02% 10.09% 19.26% 6.96% 5.43% 7/2/01 Class B % 11.26% 19.64% 6.67% 7.77% 16.48% 10.45% 19.54% 6.67% 7.77% 9/30/03 Class C % 11.83% 20.24% 7.25% 5.61% 21.06% 11.83% 20.24% 7.25% 5.61% 7/2/01 Class C % 11.28% 19.66% 6.69% 8.97% 20.47% 11.28% 19.66% 6.69% 8.97% 9/30/02 Fixed Income Portfolio Class A % 4.02% 7.86% 5.08% 5.78% 2.85% 2.79% 7.10% 4.71% 5.48% 7/2/01 Class A 2 Effective 6/3/ % 4.02% 7.86% 5.08% 5.78% 4.62% 2.16% 6.71% 4.52% 5.33% 7/2/01 Class B % 3.26% 7.06% 4.24% 4.46% 4.12% 2.31% 6.91% 4.24% 4.46% 9/30/03 Class C % 3.76% 7.59% 4.80% 5.49% 0.41% 3.76% 7.59% 4.80% 5.49% 7/2/01 Class C % 3.24% 7.07% 4.24% 4.84% 0.12% 3.24% 7.07% 4.24% 4.84% 9/30/02 Short-Term Bond Portfolio Class A % 0.87% 2.21% 2.28% 2.72% 3.66% 0.32% 1.48% 1.92% 2.43% 7/2/01 Class A 2 Effective 6/3/ % 0.87% 2.21% 2.28% 2.72% 5.41% 0.93% 1.11% 1.73% 2.28% 7/2/01 Class B % 0.11% 1.43% 1.45% 1.46% 4.90% 0.89% 1.24% 1.45% 1.46% 9/30/03 Class C % 0.62% 1.94% 2.00% 2.45% 0.41% 0.62% 1.94% 2.00% 2.45% 7/2/01 Class C % 0.14% 1.44% 1.46% 1.60% 0.91% 0.14% 1.44% 1.46% 1.60% 9/30/02 Lifestyle Growth 529 Class A % 8.66% 17.21% N/A 5.59% 9.98% 6.72% 15.95% N/A 4.85% 6/30/06 Class B % 7.83% 16.33% N/A 4.80% 11.22% 6.96% 16.22% N/A 4.80% 6/30/06 Class C % 7.83% 16.35% N/A 4.75% 15.19% 7.83% 16.35% N/A 4.75% 6/30/06 Lifestyle Balanced 529 Class A % 7.62% 15.37% N/A 5.61% 6.23% 5.70% 14.14% N/A 4.88% 6/30/06 Class B % 6.84% 14.52% N/A 4.80% 7.30% 5.96% 14.41% N/A 4.80% 6/30/06 Class C % 6.81% 14.52% N/A 4.80% 11.21% 6.81% 14.52% N/A 4.80% 6/30/06 Lifestyle Moderate 529 Class A % 6.83% 13.26% N/A 5.69% 2.35% 4.92% 12.05% N/A 4.96% 6/30/06 Class B % 6.01% 12.40% N/A 4.85% 3.20% 5.11% 12.27% N/A 4.85% 6/30/06 Class C % 6.02% 12.43% N/A 4.89% 7.26% 6.02% 12.43% N/A 4.89% 6/30/06 7

9 Average Annual Total Returns as of 3/31/14 (continued) Without a Sales Charge With a Sales Charge Investment Options 1 Year 3 Year 5 Year 10 Year ITD 1 Year 3 Year 5 Year 10 Year ITD Inception Date TRP New Horizons 529 Class A % 18.69% 29.71% N/A 12.48% 25.91% 16.58% 28.32% N/A 11.84% 9/30/04 Class B % 17.82% 28.72% N/A 11.58% 27.86% 17.09% 28.65% N/A 11.58% 9/30/04 Class C % 17.80% 28.72% N/A 11.61% 31.88% 17.80% 28.72% N/A 11.61% 9/30/04 Templeton Int l Value 529 Class A % 6.82% 16.38% N/A 0.97% 17.80% 4.92% 15.13% N/A 0.11% 11/30/07 Class B % 6.04% 15.51% N/A 0.25% 19.30% 5.15% 15.40% N/A 0.25% 11/30/07 Class C % 6.01% 15.49% N/A 0.24% 23.33% 6.01% 15.49% N/A 0.24% 11/30/07 TRP Small-Cap Stock 529 Class A % 14.17% 26.61% 9.95% 12.11% 17.52% 12.14% 25.25% 9.36% 11.56% 4/30/03 Class B % 13.34% 25.65% 9.08% 10.37% 19.13% 12.56% 25.57% 9.08% 10.37% 9/30/03 Class C % 13.34% 25.64% 9.06% 11.18% 23.15% 13.34% 25.64% 9.06% 11.18% 4/30/03 TRP Mid-Cap Value 529 Class A % 12.93% 22.69% 9.31% 12.34% 14.60% 10.92% 21.37% 8.72% 11.82% 9/30/02 Class B % 12.09% 21.77% 8.42% 10.03% 16.07% 11.29% 21.68% 8.42% 10.03% 9/30/03 Class C % 12.09% 21.75% 8.43% 11.42% 20.05% 12.09% 21.75% 8.43% 11.42% 9/30/02 Jennison Capital Appreciation 529 Class A % 14.40% 19.78% N/A 6.72% 21.06% 12.36% 18.50% N/A 5.81% 11/30/07 Class B % 13.52% 18.92% N/A 5.94% 22.74% 12.74% 18.82% N/A 5.94% 11/30/07 Class C % 13.51% 18.89% N/A 5.95% 26.82% 13.51% 18.89% N/A 5.95% 11/30/07 TRP Blue Chip Growth 529 Class A % 16.01% 22.23% 7.75% 9.93% 21.86% 13.94% 20.92% 7.17% 9.42% 9/30/02 Class B % 15.15% 21.32% 6.89% 7.79% 23.66% 14.39% 21.23% 6.89% 7.79% 9/30/03 Class C % 15.16% 21.31% 6.89% 9.05% 27.66% 15.16% 21.31% 6.89% 9.05% 9/30/02 TRP Equity Income 529 Class A % 12.51% 20.48% 6.80% 8.37% 11.60% 10.50% 19.19% 6.23% 7.83% 4/30/03 Class B % 11.67% 19.58% 5.93% 6.97% 12.95% 10.86% 19.48% 5.93% 6.97% 9/30/03 Class C % 11.67% 19.58% 5.94% 7.47% 16.87% 11.67% 19.58% 5.94% 7.47% 4/30/03 American Mutual 529 Class A % 12.75% 17.92% 6.80% 8.09% 10.92% 10.74% 16.65% 6.23% 7.56% 4/30/03 Class B % 11.89% 17.03% 5.94% 6.77% 12.18% 11.08% 16.92% 5.94% 6.77% 9/30/03 Class C % 11.91% 17.04% 5.95% 7.24% 16.25% 11.91% 17.04% 5.95% 7.24% 4/30/03 8

10 Average Annual Total Returns as of 3/31/14 (continued) Total Return Investment Option 1 Year 3 Year 5 Year 10 Year ITD JH Money Market Portfolio 7 Day Simple Yield 7 Day Compound Yield Inception Date 0.00% 0.00% 0.00% N/A 1.32% 0.00% 0.00% 9/30/04 The performance data presented represents past performance. Past performance is not a guarantee of future results and current performance may be lower or higher than the performance quoted. Investment returns in John Hancock Freedom 529 portfolios and the value of an investor s units will fluctuate and may be worth more or less than original cost when redeemed. 1 Performance with a sales charge reflects a 3.5% maximum sales charge for units purchased prior to June 3, Performance with a sales charge reflects a 5.25% maximum sales charge for units purchased on or after June 3, 2002 unless grandfather rules on page 32 apply. 3 All Class B portfolios carry a six-year Contingent Deferred Sales Charge or CDSC (maximum of 5%, declining over six years). Class B returns With a Sales Charge reflect the applicable sales charge for the period shown. Class B units of each portfolio are charged an annual program management fee of 0.35%, an annual Trust fee of 0.05% and an annual distribution and service fee of 0.25%. Class B units carry a six-year CDSC of 5%, 4%, 4%, 3%, 2%, 1%, 0%, so that withdrawals made within six years of the contribution will be charged as follows: withdrawals made in year 1 will be assessed a 5% charge, in years 2 and 3, a 4% charge, in year 4 a 3% charge, in year 5 a 2% charge and in year 6 a 1% charge. B shares will automatically convert to A shares on the 15 th day (or following business day) of the first month in the seventh year. 4 Class C2 units do not have a sales charge. For Accounts established on or after October 1, 2002, Class C units are referred to as Class C2. Class C2 has an inception date of 9/30/02. Returns for Class C2 units reflect an annual program management fee of 0.35%, an annual Trust fee of 0.05% and an annual distribution and service fee of 0.25%. The Trustee has authorized the Program Manager to waive all or a portion of the annual program management fee for the JH Money Market Portfolio to the extent necessary to maintain the net yield of the JH Money Market Portfolio at 0.0% or above. The fee waiver has the effect of increasing the portfolio s net yield. Without this waiver, the yield on the portfolio could be lower. Performance figures reflect the deduction of program fees, underlying investment management fees and other expenses of the underlying mutual funds in which the portfolio invests. Performance does not reflect the annual account maintenance fee of $25 which if reflected, performance would be lower. The performance of the enrollment-based Investment Options reflects changes in asset allocations over time relating to the targeted college enrollment date of Beneficiaries for which the particular Investment Option is designed. Assets are automatically moved to the College Portfolio in the second quarter of the third year in the title of the Investment Option, and may not remain invested in the referenced Investment Option for a portion of the period reported. 9

11 The following replaces similar information in Section V. Fees and Expenses, Choosing a Class of Units beginning on page 31: Choosing a Class of Units Interests in the Plan are referred to as units. There are two classes of units, Class A and Class C2 ( classes ), available to new investors for each of the Investment Options. Each class has a different cost structure determined by the sales charge and the annual distribution and service fee. (The annual program management fee is the same for all classes of units.) The different classes allow you to select the cost structure that best suits your needs. There are different underlying mutual fund expenses associated with each Investment Option, although these underlying mutual fund expenses are the same for Class A and Class C2 within a particular Investment Option. Estimated expenses for each class, including the class-specific sales charge and the annual distribution and service fee, as well as the annual program management fee and the annual Trust fee are provided in the Summary of Fees/Expenses tables that begin on page 14 of the Supplement. Generally, the class of units you choose will be determined by the amount you invest as well as the length of time between your investment and the Beneficiary s expected use of the Account. Exchanges between classes are not permitted. You should work with your financial consultant to determine the class of units appropriate for you. The cost structure for each class of units currently available to new investors is: All portfolios, except Short-Term Bond & Fixed Income Portfolios: Class A Initial sales charge of up to 5.25% % effective 9/2/2014 Annual program management fee of 0.25% Annual distribution and service fee of 0.25% Annual Trust fee of 0.05% Class C2 No initial sales charge; all your money goes to work for you right away Annual program management fee of 0.25% Annual distribution and service fee of 1.00% Annual Trust fee of 0.05% No Contingent Deferred Sales Charge No automatic conversion to Class A units, so annual expenses continue at the Class C2 level throughout the life of the investment Class B (CLOSED) No initial sales charge; all your money goes to work for you right away Annual program management fee of 0.25% Annual distribution and service fee of 1.00% Annual Trust fee of 0.05% A Contingent Deferred Sales Charge of up to 5.0% for assets redeemed within the first six years Automatically converts to Class A units in year seven, thus reducing the annual distribution and service fee to 0.25% Short-Term Bond & Fixed Income Portfolios: Class A Initial sales charge of up to 5.25% % effective 9/2/2014 Annual program management fee of 0.25% Annual distribution and service fee of 0.15% Annual Trust fee of 0.05% Class C2 No initial sales charge; all your money goes to work for you right away Annual program management fee of 0.25% Annual distribution and service fee of 0.90% Annual Trust fee of 0.05% No Contingent Deferred Sales Charge No automatic conversion to Class A units, so annual expenses continue at the Class C2 level throughout the life of the investment Class B (CLOSED) No initial sales charge; all your money goes to work for you right away Annual program management fee of 0.25% Annual distribution and service fee of 0.90% Annual Trust fee of 0.05% A Contingent Deferred Sales Charge of up to 5.0% for assets redeemed within the first six years Automatically converts to Class A units in year seven, thus reducing the annual distribution and service fee to 0.25% 10

12 There is a $100,000 limit per Account Holder for investments in Class B units. This maximum will be applied across all Accounts with the same Account Holder and shall be based upon the contribution amount as well as the aggregate Account balance(s) for individual Account Holders. Breakpoint pricing and Rights of Accumulation offered by Class A units may be more appropriate for Account Holders with larger aggregate Account balances. Your financial consultant can provide you with additional information. Effective as of June 24, 2013, John Hancock Freedom 529 no longer allows the establishment of new Accounts in Class B units. Effective as of September 3, 2013, Class B units are closed and John Hancock Freedom 529 will no longer accept any investments in Class B units. Any contributions to B Class units that are received after September 3, 2013, will be directed to a different share class as designated by the Account Holder and if no new share class is designated, the contribution will be rejected. After September 3, 2013, an Account Holder may continue to hold Class B units until those units automatically convert to Class A units pursuant to the conversion schedule outlined in the Plan Disclosure Document or redeem such Class B units, subject to any applicable contingent deferred sales charge (CDSC). Existing Account Holders will continue to have exchange privileges with Class B units of other John Hancock Freedom 529 portfolios. Note: The JH Money Market Portfolio, including the existing portfolio, Class A and Class C2 (see JH Money Market Portfolio section of this Supplement) has an annual program management fee of 0.25%, no annual distribution and service fee and no Trust fee. Sales Charges The sales charges applicable to each class of units of all portfolios (except Short-Term Bond & Fixed Income) which are paid by the Account Holder, are summarized as follows: Class A Class B* Class C2 Initial Sales Charge Up to 5.25% % effective 9/2/2014 None None Contingent Deferred Sales Charge None 5% declining to 0 after six years** None The sales charges applicable to each class of units of Short-Term Bond & Fixed Income Portfolios, which are paid by the Account Holder, are summarized as follows: Class A Class B* Class C2 Initial Sales Charge Up to 5.25% % effective 9/2/2014 None None Contingent Deferred Sales Charge None 5% declining to 0 after six years** None * Class B units automatically convert to Class A in the first month after six years. ** Distributions taken within six years of each contribution will typically pay a CDSC based on a declining scale as described on page

13 Initial Sales Charge Each contribution into Class A units is charged a maximum front-end sales charge of up to 5.25% 2 (unless a reduced sales charge applies as a result of Rights of Accumulation). 2 Effective September 2, 2014, the maximum front-end sales charge for all portfolios, except Short-Term Bond Portfolio & Fixed Income Portfolio will be reduced to 5.00% and the maximum front-end sales charge for Short-Term Bond Portfolio & Fixed Income Portfolio will be reduced to 4.00%. For Accounts established prior to June 3, 2002, contributions will generally be subject to the original 3.5% sales charge unless a material change is made on or after June 3, 2002 to an existing Account, and then the current 5.25% sales charge will apply. Examples of material changes are: changing the Account Holder (except change of Account Holder due to death or declaration of legal incompetence of the original Account Holder); changing the Beneficiary accompanied by a change in investment strategy; changing the investment strategy by directing new contributions or reallocating existing portfolios to new or different portfolios. All portfolios, except Short-Term Bond & Fixed Income Portfolios: Asset Range Sales Charge $0 $49, % 1 $50,000 $99, % $100,000 $249, % $250,000 $499, % $500,000 $999, % $1,000, % Short-Term Bond & Fixed Income Portfolios: Asset Range Sales Charge $0 $49, % 2 $50,000 $99, % 3 $100,000 $249, % 4 $250,000 $499, % $500,000 $999, % $1,000, % % effective 9/2/ % effective 9/2/ % effective 9/2/ % effective 9/2/2014 Reducing or Eliminating Your Initial Sales Charge Breakpoints and Rights of Accumulation (ROA) Breakpoint pricing is available when investing in Class A units, providing a reduced sales charge on contributions at defined asset levels. As the amount of a specific contribution increases, the initial sales charge decreases. The following replaces Section V. Fees and Expenses, Annual Program Management Fee on page 35: All Investment Options are subject to an annual program management fee for management of the Plan. The annual program management fee is 0.25% for all Investment Options.* The annual program management fee is paid out of the assets of each Investment Option on an ongoing basis and is reflected in the NAV of the Investment Option. * The Trustee has authorized the Program Manager to waive all or a portion of the annual program management fee for the JH Money Market Portfolio, to the extent necessary to maintain the net yield of JH Money Market Portfolio at 0.0% or above. 12

14 The Summary of annual distribution and service fee table in Section V. Fees and Expenses, Annual Distribution and Service Fee on page 35 is deleted and replaced with the following: Summary of annual distribution and service fee: All portfolios, except of Short-Term Bond Portfolio, Fixed Income Portfolio and JH Money Market Portfolio: Class Annual Distribution and Service Fee A 0.25% B % 2 C % C2 1.00% Short-Term Bond Portfolio & Fixed Income Portfolio: Class Annual Distribution and Service Fee A 0.15% B % 4 C % C2 0.90% JH Money Market Portfolio: Class Annual Distribution and Service Fee Existing Money Market 0.00% Portfolio 5 A 0.00% C2 0.00% 1 Closed to new Accounts as of October 1, Reduced to 0.25% in the 7th year when Class B units convert to Class A units. 3 Closed to new Accounts (see Choosing a Class of Units section of this Plan Disclosure Document for details) 4 Reduced to 0.15% in the 7th year when Class B units convert to Class A units. 5 Closed to new Accounts as of September 2, 2014 (see JH Money Market Portfolio section of this Supplement for details). The following additional bullets are added to Section V. Fees and Expenses, Annual Account Maintenance Fee on page 36: elects to receive electronic delivery of account statements, transaction confirmations, and other documents as they become available for electronic delivery invests through a financial intermediary and that intermediary maintains all of the Account Holder s Accounts in an omnibus account with the Plan (please refer to the Section entitled Contributions and Distributions through Third Parties on pages for more information on omnibus accounts) 13

15 The following information updates Section V, Fees and Expenses and replaces the Summary of Fees/Expenses on pages and the Hypothetical Cost of a $10,000 Investment on pages 43 44: Summary of Fees/Expenses Fees and expenses vary based on the class of units chosen and the amount invested. A summary of fees, inclusive of Plan Fees and underlying fund expenses payable by class and assessed to each Account, is provided on the following charts. Class A Cost Structure Investment Options Estimated Underlying Fund Expenses 1 Annual Asset-Based Fees Program Management Fee Trust Fee Distribution and Service Fee Total Annual Asset-Based Fees 2 Additional Investor Expenses Maximum Initial Sales Charge 3 Annual Account Maintenance Fee 4 Portfolio % 0.25% 0.05% 0.25% 1.35% 5.25% $25 Portfolio % 0.25% 0.05% 0.25% 1.34% 5.25% $25 Portfolio % 0.25% 0.05% 0.25% 1.32% 5.25% $25 Portfolio % 0.25% 0.05% 0.25% 1.30% 5.25% $25 Portfolio % 0.25% 0.05% 0.25% 1.20% 5.25% $25 College Portfolio 0.63% 0.25% 0.05% 0.25% 1.18% 5.25% $25 Short-Term Bond Portfolio 0.51% 0.25% 0.05% 0.15% 0.96% 5.25% $25 Fixed Income Portfolio % 0.25% 0.05% 0.15% 1.17% 5.25% $25 Equity Portfolio 0.80% 0.25% 0.05% 0.25% 1.35% 5.25% $25 Future Trends Portfolio 0.84% 0.25% 0.05% 0.25% 1.39% 5.25% $25 Lifestyle Growth % 0.25% 0.05% 0.25% 1.49% 5.25% $25 Lifestyle Balanced % 0.25% 0.05% 0.25% 1.45% 5.25% $25 Lifestyle Moderate % 0.25% 0.05% 0.25% 1.39% 5.25% $25 TRP New Horizons % 0.25% 0.05% 0.25% 1.35% 5.25% $25 TRP Blue Chip Growth % 0.25% 0.05% 0.25% 1.29% 5.25% $25 TRP Mid-Cap Value % 0.25% 0.05% 0.25% 1.35% 5.25% $25 Templeton International Value % 0.25% 0.05% 0.25% 1.46% 5.25% $25 TRP Equity Income % 0.25% 0.05% 0.25% 1.22% 5.25% $25 TRP Small Cap Stock % 0.25% 0.05% 0.25% 1.46% 5.25% $25 Jennison Capital Appreciation % 0.25% 0.05% 0.25% 1.29% 5.25% $25 American Mutual % 0.25% 0.05% 0.25% 1.23% 5.25% $25 1 Estimated Underlying Fund Expenses reflect a weighted average of the underlying mutual fund expenses using the target allocations of the underlying mutual funds effective 6/9/14 and the actual expense ratios of the underlying funds as of each fund s most recent published fiscal year end. Future underlying fund and/or Investment Option expenses may be higher or lower than those reflected. 2 The Total Annual Asset-Based Fees is the sum of the Annual Estimated Underlying Fund Expenses, the Annual Program Management Fee, the Annual Trust Fee, and the Annual Distribution and Service Fee. The Total Annual Asset-Based Fee is assessed over the course of the year and does not include sales charges or the Annual Account Maintenance Fee. For an illustration of the total investment cost of a $10,000 investment over 1-, 3-, 5-, and 10-year periods, please refer to the chart that begins on page 43 titled Hypothetical Cost of a $10,000 Investment. Future annual asset-based fees may be higher or lower than those reflected. 3 Class A units will be subject to an initial sales charge of 5.25% (effective 9/2/2014 the initial sales charge for all portfolios, except Short-Term Bond Portfolio & Fixed Income Portfolio will be reduced to 5.00% and the initial sales charge for Short-Term Bond Portfolio & Fixed Income Portfolio will be reduced to 4.00%) unless the Account was established prior to June 3, 2002, and no material changes have been made to the Account. Certain contributions may be eligible for breakpoint pricing, thereby reducing the sales charge (see page 33, Breakpoints and Rights of Accumulation and Statement of Intention) or a sales charge waiver as described on page 36 under Initial Sales Charge/Fee Waivers. 4 The maximum Annual Account Maintenance Fee is $25. As described on page 36, for Account Holders investing through their employer, investing systematically, or who maintain certain Account balances, the Annual Account Maintenance Fee may be reduced or waived. + The Program Manager has voluntarily capped the Total Annual Asset-Based Fee for the Fixed Income Portfolio Class A at 1.34%. This cap may be withdrawn or amended at any time. 14

16 Class B Cost Structure Investment Options Estimated Underlying Fund Expenses 1 Annual Asset-Based Fees Program Management Fee Trust Fee Distribution and Service Fee Total Annual Asset-Based Fees 2 Additional Investor Expenses Maximum Initial Sales Charge 3 Annual Account Maintenance Fee 4 Portfolio % 0.25% 0.05% 1.00% 2.10% 5.00% $25 Portfolio % 0.25% 0.05% 1.00% 2.09% 5.00% $25 Portfolio % 0.25% 0.05% 1.00% 2.07% 5.00% $25 Portfolio % 0.25% 0.05% 1.00% 2.05% 5.00% $25 Portfolio % 0.25% 0.05% 1.00% 1.95% 5.00% $25 College Portfolio 0.63% 0.25% 0.05% 1.00% 1.93% 5.00% $25 Short-Term Bond Portfolio 0.51% 0.25% 0.05% 0.90% 1.71% 5.00% $25 Fixed Income Portfolio % 0.25% 0.05% 0.90% 1.92% 5.00% $25 Equity Portfolio 0.80% 0.25% 0.05% 1.00% 2.10% 5.00% $25 Future Trends Portfolio 0.84% 0.25% 0.05% 1.00% 2.14% 5.00% $25 Lifestyle Growth % 0.25% 0.05% 1.00% 2.24% 5.00% $25 Lifestyle Balanced % 0.25% 0.05% 1.00% 2.20% 5.00% $25 Lifestyle Moderate % 0.25% 0.05% 1.00% 2.14% 5.00% $25 TRP New Horizons % 0.25% 0.05% 1.00% 2.10% 5.00% $25 TRP Blue Chip Growth % 0.25% 0.05% 1.00% 2.04% 5.00% $25 TRP Mid-Cap Value % 0.25% 0.05% 1.00% 2.10% 5.00% $25 Templeton International Value % 0.25% 0.05% 1.00% 2.21% 5.00% $25 TRP Equity Income % 0.25% 0.05% 1.00% 1.97% 5.00% $25 TRP Small Cap Stock % 0.25% 0.05% 1.00% 2.21% 5.00% $25 Jennison Capital Appreciation % 0.25% 0.05% 1.00% 2.04% 5.00% $25 American Mutual % 0.25% 0.05% 1.00% 1.98% 5.00% $25 1 Estimated Underlying Fund Expenses reflect a weighted average of the underlying mutual fund expenses using the target allocations of the underlying mutual funds effective 6/9/14 and the actual expense ratios of the underlying funds as of each fund s most recent published fiscal year end. Future underlying fund and/or Investment Option expenses may be higher or lower than those reflected. 2 The Total Annual Asset-Based Fees is the sum of the Annual Estimated Underlying Fund Expenses, the Annual Program Management Fee, the Annual Trust Fee and the Annual Distribution and Service Fee. The Total Annual Asset-Based Fee is assessed over the course of the year and does not include sales charges or the Annual Account Maintenance Fee. For an illustration of the total investment cost of a $10,000 investment over 1-, 3-, 5-, and 10-year periods, please refer to the chart that begins on page 43 titled Hypothetical Cost of a $10,000 Investment. Future annual asset-based fees may be higher or lower than those reflected. 3 Class B units will be subject to a six-year declining Contingent Deferred Sales Charge (CDSC): 5%, 4%, 4%, 3%, 2%, 1%, 0%. Class B units will automatically convert to Class A units on the 15 th day (or following business day) of the first month in the seventh year, and the Annual Distribution and Service Fee will be reduced to 0.25%. The CDSC will be waived if the Beneficiary dies, becomes disabled, receives a scholarship or enrolls in a U.S. military academy, provided the appropriate documentation is submitted. The CDSC will not be waived for distributions used for Qualified Higher Education Expenses if such distributions are made within six years of the date of contribution. All distributions are processed on a first-in, first-out basis. In the instance of a distribution of the entire Account value, the CDSC is calculated based on the lesser of the Account value or contribution amount. In the instance of a distribution amount less than the entire Account value, the CDSC is calculated based on the lesser of the distribution amount or the contribution amounts attributable to those units being distributed. In either instance, the CDSC is not charged on earnings. 4 The maximum Annual Account Maintenance Fee is $25. As described on page 36, for Account Holders investing through their employer, investing systematically or who maintain certain Account balances, the Annual Account Maintenance Fee may be reduced or waived. + The Program Manager has voluntarily capped the Total Annual Asset-Based Fee for the Fixed Income Portfolio Class B at 2.09%. This cap may be withdrawn or amended at any time. 15

17 Class C2 Cost Structure Investment Options Estimated Underlying Fund Expenses 1 Annual Asset-Based Fees Program Management Fee Trust Fee Distribution and Service Fee Total Annual Asset-Based Fees 2 Additional Investor Expenses Maximum Initial Sales Charge Annual Account Maintenance Fee 3 Portfolio % 0.25% 0.05% 1.00% 2.10% 0.00% $25 Portfolio % 0.25% 0.05% 1.00% 2.09% 0.00% $25 Portfolio % 0.25% 0.05% 1.00% 2.07% 0.00% $25 Portfolio % 0.25% 0.05% 1.00% 2.05% 0.00% $25 Portfolio % 0.25% 0.05% 1.00% 1.95% 0.00% $25 College Portfolio 0.63% 0.25% 0.05% 1.00% 1.93% 0.00% $25 Short-Term Bond Portfolio 0.51% 0.25% 0.05% 0.90% 1.71% 0.00% $25 Fixed Income Portfolio % 0.25% 0.05% 0.90% 1.92% 0.00% $25 Equity Portfolio 0.80% 0.25% 0.05% 1.00% 2.10% 0.00% $25 Future Trends Portfolio 0.84% 0.25% 0.05% 1.00% 2.14% 0.00% $25 Lifestyle Growth % 0.25% 0.05% 1.00% 2.24% 0.00% $25 Lifestyle Balanced % 0.25% 0.05% 1.00% 2.20% 0.00% $25 Lifestyle Moderate % 0.25% 0.05% 1.00% 2.14% 0.00% $25 TRP New Horizons % 0.25% 0.05% 1.00% 2.10% 0.00% $25 TRP Blue Chip Growth % 0.25% 0.05% 1.00% 2.04% 0.00% $25 TRP Mid-Cap Value % 0.25% 0.05% 1.00% 2.10% 0.00% $25 Templeton International Value % 0.25% 0.05% 1.00% 2.21% 0.00% $25 TRP Equity Income % 0.25% 0.05% 1.00% 1.97% 0.00% $25 TRP Small Cap Stock % 0.25% 0.05% 1.00% 2.21% 0.00% $25 Jennison Capital Appreciation % 0.25% 0.05% 1.00% 2.04% 0.00% $25 American Mutual % 0.25% 0.05% 1.00% 1.98% 0.00% $25 1 Estimated Underlying Fund Expenses reflect a weighted average of the underlying mutual fund expenses using the target allocations of the underlying mutual funds effective 6/9/14 and the actual expense ratios of the underlying funds as of each fund s most recent published fiscal year end. Future underlying fund and/or Investment Option expenses may be higher or lower than those reflected. 2 The Total Annual Asset-Based Fees is the sum of the Annual Estimated Underlying Fund Expenses, the Annual Program Management Fee, the Annual Trust Fee, and the Annual Distribution and Service Fee. The Total Annual Asset-Based Fee is assessed over the course of the year and does not include sales charges or the Annual Account Maintenance Fee. For an illustration of the total investment cost of a $10,000 investment over 1-, 3-, 5-, and 10-year periods, please refer to the chart that begins on page 43 titled Hypothetical Cost of a $10,000 Investment. Future annual asset-based fees may be higher or lower than those reflected. 3 The maximum Annual Account Maintenance Fee is $25. As described on page 36, for Account Holders investing through their employer, investing systematically, or who maintain certain Account balances, the Annual Account Maintenance Fee may be reduced or waived. + The Program Manager has voluntarily capped the Total Annual Asset-Based Fee for the Fixed Income Portfolio Class C2 at 2.09%. This cap may be withdrawn or amended at any time. 16

18 Class C Cost Structure* Investment Options Estimated Underlying Fund Expenses 1 Annual Asset-Based Fees Program Management Fee Trust Fee Distribution and Service Fee Total Annual Asset-Based Fees 2 Additional Investor Expenses Maximum Initial Sales Charge Annual Account Maintenance Fee 3 Portfolio % 0.25% 0.05% 0.50% 1.55% 0.00% $25 Portfolio % 0.25% 0.05% 0.50% 1.45% 0.00% $25 College Portfolio 0.63% 0.25% 0.05% 0.50% 1.43% 0.00% $25 Short-Term Bond Portfolio 0.51% 0.25% 0.05% 0.40% 1.21% 0.00% $25 Fixed Income Portfolio % 0.25% 0.05% 0.40% 1.42% 0.00% $25 Equity Portfolio 0.80% 0.25% 0.05% 0.50% 1.60% 0.00% $25 Future Trends Portfolio 0.84% 0.25% 0.05% 0.50% 1.64% 0.00% $25 * Class C is only available in a limited number of Investment Options and was closed to new Accounts as of October 1, Contributions to Accounts established in Class C prior to October 1, 2002 will be subject to the original annual distribution and service fee unless a material change is made to the Account as described on page Estimated Underlying Fund Expenses reflect a weighted average of the underlying mutual fund expenses using the target allocations of the underlying mutual funds effective 6/9/14 and the actual expense ratios of the underlying funds as of each fund s most recent published fiscal year end. Future underlying fund and/or Investment Option expenses may be higher or lower than those reflected. 2 The Total Annual Asset-Based Fees is the sum of the Annual Estimated Underlying Fund Expenses, the Annual Program Management Fee, the Annual Trust Fee and the Annual Distribution and Service Fee. The Total Annual Asset-Based Fee is assessed over the course of the year and does not include sales charges or the Annual Account Maintenance Fee. For an illustration of the total investment cost of a $10,000 investment over 1-, 3-, 5-, and 10-year periods, please refer to the chart that begins on page 43 titled Hypothetical Cost of a $10,000 Investment. Future annual asset-based fees may be higher or lower than those reflected. 3 The maximum Annual Account Maintenance Fee is $25. As described on page 36, for Account Holders investing through their employer, investing systematically, or who maintain certain Account balances, the Annual Account Maintenance Fee may be reduced or waived. + The Program Manager has voluntarily capped the Total Annual Asset-Based Fee for the Fixed Income Portfolio Class C at 1.59%. This cap may be withdrawn or amended at any time. 17

19 JH Money Market Portfolio Cost Structure (not offered in multiple classes) Investment Options Estimated Underlying Fund Expenses 1 Annual Asset-Based Fees Program Management Fee Trust Fee Distribution and Service Fee Total Annual Asset-Based Fees 2 Additional Investor Expenses Maximum Initial Sales Charge Annual Account Maintenance Fee 3 JH Money Market Portfolio 0.19% 0.25% 0.00% 0.00% 0.44% 0.00% $25 1 Estimated Underlying Fund Expenses reflect a weighted average of the underlying mutual fund expenses using the target allocations of the underlying mutual funds effective 6/9/14 and the actual expense ratios of the underlying funds as of each fund s most recent published fiscal year end. Future underlying fund and/or Investment Option expenses may be higher or lower than those reflected. 2 The Total Annual Asset-Based Fees is the sum of the Annual Estimated Underlying Fund Expenses, the Annual Program Management Fee, and if applicable, the Annual Trust Fee, and the Annual Distribution and Service Fee. The Total Annual Asset-Based Fee is assessed over the course of the year and does not include sales charges or the Annual Account Maintenance Fee. For an illustration of the total investment cost of a $10,000 investment over 1-, 3-, 5-, and 10-year periods, please refer to the chart that begins on page 43 titled Hypothetical Cost of a $10,000 Investment. Future annual asset-based fees may be higher or lower than those reflected. 3 The maximum Annual Account Maintenance Fee is $25. As described on page 36, for Account Holders investing through their employer, investing systematically or who maintain certain Account balances, the Annual Account Maintenance Fee may be reduced or waived. Note: The Trustee has authorized the Program Manager to waive all or a portion of the annual program management fee for the JH Money Market Portfolio, to the extent necessary to maintain the net yield of the JH Money Market Portfolio at 0.0% or above. 18

20 The following information replaces similar information beginning on page 43 of the document. Hypothetical Cost of a $10,000 Investment The following table compares the approximate cost of investing in the various classes of units offered by John Hancock Freedom 529 over different periods of time. Your actual cost may be higher or lower. The table is based on the following assumptions: A $10,000 investment for the time periods shown. A 5% annually compounded rate of return on the net amount invested throughout the period. The imposition of the maximum initial sales charge as of September 2, 2014 (without regard to possible breakpoints in Class A units) and any CDSC applicable to units invested for the applicable periods in Class B units. All units are redeemed at the end of the period shown for Qualified Higher Education Expenses, and therefore the table does not consider the impact, if any, of federal or state taxes. One Year Three Years Cost Structure A B 1 B 2 C2 C 3 A B 1 B 2 C2 C 3 Investment Options Portfolio N/A 980 1, N/A Portfolio N/A 977 1, N/A Portfolio N/A 971 1, N/A Portfolio , Portfolio , College Portfolio , Short-Term Bond Portfolio , Fixed Income Portfolio , Equity Portfolio , Future Trends Portfolio , Lifestyle Growth N/A 1,021 1, N/A Lifestyle Balanced N/A 1,010 1, N/A Lifestyle Moderate N/A 992 1, N/A TRP New Horizons N/A 980 1, N/A TRP Blue Chip Growth N/A 963 1, N/A TRP Mid Cap Value N/A 980 1, N/A Templeton Int'l Value N/A 1,013 1, N/A TRP Equity Income N/A 942 1, N/A TRP Small-Cap Stock N/A 1,013 1, N/A Jennison Capital Appreciation N/A 963 1, N/A American Mutual N/A 945 1, N/A 1 Assumes redemption at the end of the period. 2 Assumes no redemption at the end of the period. 3 Class C is only available in a limited number of Investment Options and was closed to new Accounts as of October 1, Contributions to Accounts established in Class C prior to October 1, 2002 will be subject to the original annual distribution and service fee unless a material change is made to the Account as described on page