JOHN HANCOCK CLOSED-END FUNDS RELEASE EARNINGS DATA

Rhea-AI Summary

John Hancock Closed-End Funds announced earnings for the three months ended December 31, 2023, compared to the same period in 2022. The Financial Opportunities Fund (BTO) showed a decrease in net investment income and per common share, as well as a decrease in total net assets. However, the fund's net asset value (NAV) and total managed assets increased.

Financial Analyst

The reported earnings for John Hancock Closed-End Funds can be pivotal for investors analyzing the funds' performance. A key metric disclosed is the Net Investment Income (NII), which reflects the profitability of the funds from their investment activities. The NII is crucial as it directly affects the distributions to shareholders and is a significant indicator of a fund's ability to generate income from its investments.

Comparing year-over-year NII, we observe a decrease for both HEQ and BTO funds. For instance, HEQ's NII per common share decreased from $0.073 to $0.069 and BTO's from $0.114 to $0.108. This decline might signal a reduction in income-generating capability or an increase in expenses, both of which are essential considerations for current and potential investors.

Furthermore, the Net Asset Value (NAV) has declined for both funds, indicative of a potential decrease in the underlying value of the funds' assets. This could be due to various factors, including market volatility or changes in the asset mix. A declining NAV might affect investor sentiment and could lead to pressure on the funds' market prices.

Market Research Analyst

The performance of closed-end funds like HEQ and BTO is often reflective of broader market trends and investor sentiment. The reported decrease in total managed assets for both funds suggests an outflow of capital or a decrease in asset valuations, which could be attributed to shifts in the market environment. This information is valuable for stakeholders to assess the funds' management efficacy and market positioning.

It's also important to note the role of borrowings under a Liquidity Agreement included in total managed assets. Such borrowings can provide leverage to amplify returns but also introduce additional risk. Stakeholders should evaluate the level of leverage used and its impact on the funds' risk profile.

Lastly, the distribution of earnings is a critical aspect for income-focused investors. The announcement mentions that distributions may vary from the earnings shown, highlighting the importance of monitoring distribution rates for those who rely on these funds for regular income.

Economist

The earnings report from John Hancock Closed-End Funds offers insights into the economic factors at play within the investment sector. A year-over-year decrease in NII and NAV could be symptomatic of broader economic headwinds such as rising interest rates, inflationary pressures, or a bearish stock market. These factors can erode investment income and asset values, respectively.

Moreover, the performance of these funds can serve as an economic indicator. Closed-end funds are typically invested in a variety of assets, including equities and bonds, making them susceptible to shifts in economic conditions. The funds' decreased performance may signal caution to investors about potential challenges in the financial markets.

Investors and policymakers alike might use this data to gauge the health of the investment sector and to make informed decisions regarding asset allocation and monetary policy.

BOSTON, Jan. 24, 2024 /PRNewswire/ - The John Hancock Closed-End Funds listed in the table below announced earnings¹ for the three months ended December 31, 2023. The same data for the comparable three-month period ended December 31, 2022 is also available below.

Three Months Ended 12/31/23
Ticker	Fund Name	Current Fiscal Year End	Net Investment Income	Per Common Share	NAV	Total Managed Assets		Total Net Assets
HEQ	Hedged Equity & Income Fund	12/31	$839,928	$0.069	$11.61	$141,095,524		$141,095,524
BTO	Financial Opportunities Fund	12/31	$2,120,626	$0.108	$30.57	$726,756,203	*	$601,756,203
Three Months Ended 12/31/22
Ticker	Fund Name	Current Fiscal Year End	Net Investment Income	Per Common Share	NAV	Total Managed Assets		Total Net Assets
HEQ	Hedged Equity & Income Fund	12/31	$889,068	$0.073	$11.74	$143,577,080		$143,577,080
BTO	Financial Opportunities Fund	12/31	$2,200,058	$0.114	$32.81	$756,211,450	*	$631,211,450
*Total managed assets include assets attributable to borrowings under a Liquidity Agreement.

¹ Earnings refer to net investment income, which is comprised of the Fund's interest and dividend income, less expenses. Earnings presented represent past earnings and there is no guarantee of future results.

Amounts distributed by the Funds may vary from the earnings shown above and will be announced in separate press releases. Up-to-date distribution rate information is available on John Hancock Investment Management's web site at www.jhinvestments.com  by clicking on "Closed-End Funds" under the "Daily Prices" tab.

Statements in this press release that are not historical facts are forward-looking statements as defined by the United States securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors which are, in some cases, beyond the Fund's control and could cause actual results to differ materially from those set forth in the forward-looking statements.

An investor should consider a Fund's investment objectives, risks, charges, and expenses carefully before investing.

About John Hancock Investment Management

A company of Manulife Investment Management, we serve investors through a unique multimanager approach, complementing our extensive in-house capabilities with an unrivaled network of specialized asset managers, backed by some of the most rigorous investment oversight in the industry. The result is a diverse lineup of time-tested investments from a premier asset manager with a heritage of financial stewardship.

About Manulife Investment Management

Manulife Investment Management is the global brand for the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 18 geographies. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We're committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.

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SOURCE John Hancock Investment Management

What are the earnings announced by John Hancock Closed-End Funds for the three months ended December 31, 2023?

The earnings announced for the three months ended December 31, 2023, include net investment income, per common share, NAV, total managed assets, and total net assets for each fund listed in the press release.

How do the earnings of Financial Opportunities Fund (BTO) compare between December 31, 2023, and December 31, 2022?

The net investment income and per common share decreased for BTO, while the NAV and total managed assets increased. However, the total net assets decreased.

Where can I find up-to-date distribution rate information for John Hancock Investment Management's Closed-End Funds?

Up-to-date distribution rate information is available on John Hancock Investment Management's website at www.jhinvestments.com by clicking on 'Closed-End Funds' under the 'Daily Prices' tab.