Understanding the Latest Distribution from John Hancock Diversified Income Fund: Key Insights for Investors

Overview of John Hancock Diversified Income Fund



On June 30, 2025, John Hancock Investment Management announced significant details regarding the quarterly distribution of the John Hancock Diversified Income Fund (NYSE: HEQ), a closed-end fund. This announcement is crucial for current and prospective shareholders, revealing how much they will receive and the sources of these distributions.

Distribution Details



The fund declared a quarterly payout of $0.2500 per share, which is targeted at all shareholders who were on record as of June 12, 2025. This declaration stems from the fund's managed distribution plan, designed to deliver a consistent return to investors.

Scheduled Payments



  • - Distribution Declaration Date: June 2, 2025
  • - Payment Date: June 30, 2025
  • - Record Date for Eligibility: June 12, 2025

Breakdown of Current Distribution Sources



Following the period from April 1, 2025, to June 30, 2025, the estimated sources of the distribution are as follows:

Source Current Distribution ($) % Breakdown of Current Distribution Total Cumulative Distributions ($) % Breakdown of Total Cumulative Distributions
------------------------------------
Net Investment Income 0.2135 85% 0.3477 70%
Net Realized Short-Term Capital Gains 0.0000 0% 0.0000 0%
Net Realized Long-Term Capital Gains 0.0025 1% 0.0070 1%
Return of Capital or Other Capital Source 0.0340 14% 0.1453 29%

In total, each share will yield a distribution of $0.2500, with a significant portion stemming from net investment income. This highlights the fund's strategy to rely predominantly on investment income to support its dividend payouts, though a portion also constitutes a return of capital.

Fund Performance Indicators



  • - Average annual total return (in relation to NAV) for the last 5 years: 9.68%
  • - Annualized current distribution rate: 8.43% (as of May 31, 2025)
  • - Cumulative total return (in relation to NAV) for the fiscal year: 4.34%
  • - Cumulative fiscal year-to-date distribution rate: 4.22%

These performance indicators provide shareholders with a glimpse into the fund’s financial health, showcasing both current yield and historical returns. However, investors are reminded that the distribution does not necessarily correlate with the overall investment performance and should be approached with caution.

Important Investor Considerations



According to the management, it is essential for investors to understand that a portion of the distribution may be classified as a return of capital. This means that some of the distributions may consist of the original investment being returned to shareholders, rather than income generated from profits. This should not be mistakenly regarded as yield. For tax reporting purposes, the actual amounts and sources will be communicated to shareholders via a Form 1099-DIV at the end of the calendar year, detailing how to report distributions on federal income tax returns.

Conclusion



For those invested in the John Hancock Diversified Income Fund, the recent distribution announcement is an opportunity to reassess individual portfolios and long-term strategies. The continued quarterly payments reflect the fund's commitment to providing returns to its shareholders, albeit with the understanding that some funds distributed may represent a return on investment rather than a profit. Investors are urged to review their strategies in light of these developments and reach out to financial advisors for personalized guidance.

For further inquiries, shareholders can contact the Manulife John Hancock Closed-End Fund Information Line for assistance. Staying informed is key to navigating the complexities of investment in closed-end funds like HEQ.

Topics Financial Services & Investing)

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