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John Hancock Diversified Income Fund: Q3 Distribution Notice

Overview

The John Hancock Diversified Income Fund (NYSE: HEQ), managed by John Hancock Investment Management LLC, has announced important details regarding its quarterly distribution for shareholders. The fund has confirmed a distribution of $0.2500 per share, which will be paid to all shareholders on record as of September 12, 2025. This distribution will be effective on September 30, 2025, pursuant to the fund's managed distribution plan and following an exemptive order granted by the U.S. Securities and Exchange Commission.

This article aims to provide shareholders with a comprehensive overview of the distribution sources and highlights of the fund’s performance up to that date.

Distribution Details

The quarterly distribution of $0.2500 marks a continuation of the fund's consistent payment strategy under its managed distribution plan. Shareholders need not take any action for this payment. The distribution could comprise various sources of income including net investment income and capital gains. The breakdown of the sources for the current fiscal year is summarized as follows:

Breakdown Analysis

• - Net Investment Income: Comprising the largest portion, this figure represents income generated from the fund's investments, underscoring the fund's core strategy to generate earnings primarily from investments.
• - Long-Term Capital Gains: Although the contribution from long-term capital gains is modest, it nevertheless reflects the fund's ability to generate profits from asset dispositions.
• - Return of Capital: The portion classified as a return of capital indicates that the fund has returned part of the shareholders' initial investments, a factor that is essential to consider when evaluating overall investment performance since it may not represent income.

The estimated distributions have been made with the understanding that any returns of capital distributed might be a reflection of the fund's investment strategy not resulting in net income optimal for disbursement. The ongoing approach of setting fixed quarterly distributions at $0.2500 demonstrates the fund’s commitment to delivering consistent income to its shareholders, despite fluctuations in investment earnings.

Investment Performance and Future Outlook

The John Hancock Diversified Income Fund has demonstrated commendable returns, with an average annual total return of 9.56% over the past five years, as of August 31, 2025. This return reflects the fund's strategic initiatives aimed towards delivering satisfactory outcomes for investors. The annualized current distribution rate reached 8.20%, showcasing the fund's ability to provide substantial returns relative to the net asset value (NAV). Moreover, the cumulative total return for the fiscal year, as of August 31, 2025, has been an impressive 9.85%.

Looking ahead, shareholders should remain apprised of subsequent updates and reports as the financial year progresses. The fund has issued a clear notification that it will continue to pay out distributions as per the preset schedule until further notice. Investors are encouraged to review their financial positions and consult with professionals for personalized advice.

Contact Information

If there are any additional inquiries regarding this distribution notice or other fund-related details, stakeholders may reach out through the John Hancock Closed-End Fund Information Line at 1-800-843-0090, operated Monday to Friday from 8 AM to 7 PM ET.

Disclaimer: This report may contain forward-looking statements that are inherently subject to uncertainties. Actual results may differ materially based on various factors beyond the fund's control. Investors should exercise caution and consider the fund’s overall investment objectives and risks before making decisions.