#USA #Boston #share repurchase #John Hancock #Closed-End Funds

Renewal of Share Repurchase Plans for John Hancock Closed-End Funds

On December 12, 2024, the John Hancock Financial Opportunities Fund and its associated funds announced the renewal of their share repurchase plans for 2025. This decision came after a thorough evaluation by the Board of Trustees aimed at enhancing shareholder value and addressing the gap between market price and net asset value (NAV) of the funds' shares. The renewed plans will allow the purchase of up to 10% of the outstanding common shares of each fund in the open market starting January 1, 2025, until December 31, 2025.

Background of the Funds

The John Hancock closed-end funds comprise a variety of investment strategies, including income generation and equity hedging. Each fund under this umbrella offers investors a unique approach to capital growth and income stability. The funds listed in the recent announcement include:

• - John Hancock Financial Opportunities Fund (NYSE: BTO)
• - John Hancock Hedged Equity & Income Fund (NYSE: HEQ)
• - John Hancock Income Securities Trust (NYSE: JHS)
• - John Hancock Investors Trust (NYSE: JHI)
• - John Hancock Premium Dividend Fund (NYSE: PDT)
• - John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD)

Objectives of the Repurchase Plans

The primary goal of the share repurchase initiatives is to potentially narrow the discount between the market price and the NAV of the common shares. This strategy not only strives to enhance the value of existing shares but also aims to provide greater liquidity within the market. The Board of Trustees has stated that they will be reviewing this plan periodically, allowing for adjustments to be made based on current market conditions.

Investments made under these plans are intended to be executed at prices below the NAV, helping to realize incremental accretion to these funds’ NAV, benefiting current shareholders accordingly. For instance, up until October 31, 2024, the Hedged Equity & Income Fund completed buybacks totaling 57,490 shares, accounting for approximately 0.48% of its total outstanding shares.

Forward-Looking Statements and Considerations

John Hancock emphasizes that any statements regarding future expectations and plans are considered forward-looking and should be interpreted with caution. The results might differ significantly from those anticipated due to various uncontrollable factors. Potential investors should always evaluate the fund's investment objectives, risks, charges, and expenses closely before diving into this investment option.

About John Hancock Investment Management

Part of Manulife Financial Corporation, John Hancock Investment Management prides itself on its multimanager investment strategy. This framework merges extensive in-house capabilities with an extensive network of specialized asset managers, providing a broad range of investment options fortified by stringent oversight. Their mission is to facilitate diverse, reliable investment vehicles, ensuring their legacy of financial stewardship remains robust.

Commitment to Responsible Investing

Manulife Investment Management is dedicated to sustainable investing practices. They champion frameworks for responsible investments while engaging collaboratively with the companies within their portfolios, striving to secure financial wellness for employees through various workplace retirement plans. The firm maintains a significant focus on global markets, ensuring they adapt their strategies effectively wherever they operate.

This renewed share repurchase plan represents a strategic move by John Hancock to enhance market viability for their funds while ensuring their commitment to providing value to their shareholders in the upcoming year.