John Hancock Mutual Funds (“JH Funds”) also achieved record funds under management as of March 31, 2012 of US$38.2 billion, a seven per cent increase from March 31, 2011, due primarily to positive net sales. First quarter sales decreased 10 per cent to US$3.1 billion compared to first quarter of 2011 while increasing 29 per cent compared to fourth quarter 2011. Sales in the first quarter were impacted by low retail investor confidence at the start of the quarter. JH Funds was successful in expanding its product offering with approvals at a number of large broker-dealers. JH Funds experienced positive net sales10 of US$0.9 billion in the non-proprietary market segment, while the overall industry incurred net redemptions year-to-date through March 31, 2012. As of March 31, 2012, JH Funds offered 19 Four- or Five-Star Morningstar11 rated mutual funds.