JOHN HANCOCK DIVERSIFIED INCOME FUND NOTICE TO SHAREHOLDERS - SOURCES OF DISTRIBUTION UNDER SECTION 19(a)

Rhea-AI Summary

John Hancock Diversified Income Fund (NYSE: HEQ) declared a quarterly distribution of $0.2500 per share payable December 31, 2025 to shareholders of record December 11, 2025 under its managed distribution plan.

The Fund reports the current distribution for 10/01/2025–12/31/2025 is split 50% net investment income ($0.1253) and 50% net realized short‑term capital gains ($0.1247); long‑term gains and return of capital each contributed 0% to the current distribution.

Fiscal year‑to‑date through 12/31/2025 totals per share are $1.0022 with 63% net investment income, 17% short‑term gains, 12% long‑term gains, and 8% return of capital. The Fund notes it has distributed more than income and realized gains, so a portion may be a return of capital.

Positive

• Quarterly distribution of $0.2500 per share declared and payable 12/31/2025
• Current distribution split 50% net investment income and 50% net realized short‑term capital gains
• Fiscal YTD total distributed $1.0022 per share through 12/31/2025

Negative

• Fiscal YTD return of capital of $0.0816 per share (8% of cumulative distributions)
• High annualized distribution rate of 8.14% of NAV as of 11/28/2025

Key Figures

Quarterly distribution $0.2500 per share Declared Dec 1, 2025; payable Dec 31, 2025

Current distribution NII share $0.1253 (50%) Net investment income portion of Dec 2025 distribution

Current short-term gains share $0.1247 (50%) Net realized short-term capital gains in Dec 2025 distribution

FY25 total distributions $1.0022 per share Cumulative distributions 01/01/2025–12/31/2025

5-year avg total return 9.28% Average annual total return (NAV) for 5 years to Nov 28, 2025

Current distribution rate 8.14% Annualized, as % of NAV as of Nov 28, 2025

FY25 cumulative total return 13.16% Cumulative total return (NAV) through Nov 28, 2025

FY25 cumulative distribution rate 8.16% Cumulative fiscal YTD distribution rate vs NAV as of Nov 28, 2025

Market Reality Check

$10.77 Last Close

Volume Volume 81,203 is 1.55x the 20-day average of 52,392 ahead of the distribution. high

Technical Price $10.75 is trading above the 200-day MA of $10.56 before this notice.

Peers on Argus

While HEQ was up 0.37%, key peers like MCN, BANX, MPA, and SAMG showed modest declines between -0.33% and -1.36%, suggesting a fund-specific move rather than a broad sector shift.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Sep 30	Distribution notice	Positive	+0.2%	Quarterly $0.2500 distribution with detailed source breakdown.
Jul 17	Earnings update	Positive	+0.2%	Earnings release showing higher net investment income and assets.

Pattern Detected

Limited history shows mildly positive price reactions around distribution notices and related fund news.

Recent Company History

Over the past months, HEQ’s key disclosures have centered on distributions and broader John Hancock closed-end fund data. On Sep 30, 2025, HEQ detailed a quarterly $0.2500 distribution with a mix of net investment income, realized gains, and return of capital, followed by a modestly positive price reaction. In Jul 2025, earnings data for affiliated funds highlighted rising net investment income and asset growth, which also coincided with a small positive move. Today’s Section 19(a) notice continues this pattern of income and distribution transparency.

Market Pulse Summary

This announcement details HEQ’s quarterly distribution of $0.2500 per share under its managed distribution plan, with the December 2025 payment sourced 50% from net investment income and 50% from short-term capital gains. The fund also reports a 9.28% 5-year average annual total return and a fiscal year-to-date NAV total return of 13.16%. Investors should note the possibility of return of capital in future distributions and monitor ongoing performance and Section 19(a) updates for changes in distribution composition.

Key Terms

managed distribution plan financial

"pursuant to the Fund's managed distribution plan."

A managed distribution plan is a company’s program to pay regular, predictable cash amounts to shareholders by setting a fixed schedule and target payout, often funded from operating cash, reserves, or return of capital. Think of it like a household budget that guarantees a monthly allowance: it provides steady income for investors but can mask when distributions exceed sustainable earnings, which may reduce the company’s capital over time and affect long‑term value.

return of capital financial

"a portion of your distribution may be a return of capital."

Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.

net investment income financial

"from the following sources: net investment income; net realized short term capital gains;"

Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.

net realized short term capital gains financial

"net investment income; net realized short term capital gains; net realized long term capital gains;"

Net realized short term capital gains are the profits a person or fund actually pockets from selling investments held for one year or less, after subtracting any short-term losses or related offsets. Investors care because these gains are taxed like ordinary income, reducing after-tax returns and influencing decisions about when to sell assets; think of it like selling items at a garage sale and paying tax only on the total profit after accounting for any items you sold at a loss.

net realized long term capital gains financial

"net realized short term capital gains; net realized long term capital gains; and return of capital"

Net realized long-term capital gains are the total profit an investor actually locks in from selling investments held longer than one year, after subtracting any losses and offsets. Think of it like the cleaned-up harvest from a season: it’s the money left over after you count both the good crops and the spoiled ones. Investors care because these gains usually get taxed at lower rates than short-term profits and can affect after-tax returns and reported fund distributions.

net asset value (NAV) financial

"Average annual total return (in relation to NAV) for the 5 years"

Net asset value (NAV) is the per-share value of an investment fund calculated by totaling the fund’s assets, subtracting its liabilities, and dividing the remainder by the number of outstanding shares. Think of it like a price tag on each share of a collective piggy bank: investors use NAV to see what each share is worth, to compare funds, and, for many funds, it’s the price at which shares are bought or redeemed.

Form 1099-DIV regulatory

"The Fund will send you a Form 1099-DIV for the calendar year"

Form 1099-DIV is a U.S. tax document brokers, mutual funds and other financial institutions send to investors showing dividends and other distributions paid during the year. Investors use it like an annual receipt to report taxable income — including regular dividends, dividends that may qualify for lower tax rates, and capital gains distributions — so it directly affects tax liability and helps reconcile brokerage records with a tax return.

forward-looking statements regulatory

"forward-looking statements as defined by the United States securities laws."

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

BOSTON, Dec. 31, 2025 /PRNewswire/ - John Hancock Diversified Income Fund (NYSE: HEQ) (the "Fund"), a closed-end fund managed by John Hancock Investment Management LLC (the "Adviser") and subadvised by Wellington Management Company LLP (the "Subadviser"), announced today sources of its quarterly distribution of $0.2500 per share paid to all shareholders of record as of December 11, 2025, pursuant to the Fund's managed distribution plan.  This press release is issued as required by an exemptive order granted to the Fund by the U.S. Securities and Exchange Commission. 

Notification of Sources of Distribution

This notice provides shareholders of the John Hancock Diversified Income Fund (NYSE: HEQ) with important information concerning the distribution declared on December 1, 2025, and payable on December 31, 2025. No action is required on your part.

Distribution Period:	December 2025
Distribution Amount Per Common Share:	$0.2500

The following table sets forth the estimated sources of the current distribution, payable December 31, 2025, and the cumulative distributions paid this fiscal year to date from the following sources:  net investment income; net realized short term capital gains; net realized long term capital gains; and return of capital or other capital source. All amounts are expressed on a per common share basis and as a percentage of the distribution amount.

		For the period 10/01/2025-12/31/2025				For the fiscal year-to-date period 01/01/2025-12/31/20251
Source		Current Distribution ($)		% Breakdown of the Current Distribution		Total Cumulative Distributions ($)		% Breakdown of the Total Cumulative Distributions
Net Investment Income		0.1253		50 %		0.6344		63 %
Net Realized Short- Term Capital Gains		0.1247		50 %		0.1671		17 %
Net Realized Long- Term Capital Gains		0.0000		0 %		0.1191		12 %
Return of Capital or Other Capital Source		0.0000		0 %		0.0816		8 %
Total per common share		0.2500		100 %		1.0022		100 %
_______________________________ 1 The Fund's current fiscal year began on January 1, 2025 and will end on December 31, 2025.
Average annual total return (in relation to NAV) for the 5 years ended on November 28, 2025								9.28 %
Annualized current distribution rate expressed as a percentage of NAV as of November 28, 2025								8.14 %
Cumulative total return (in relation to NAV) for the fiscal year through November 28, 2025								13.16 %
Cumulative fiscal year-to-date distribution rate expressed as a percentage of NAV as of November 28, 2025								8.16 %

You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's managed distribution plan.

The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital.  A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you.  A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income."

The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes.  The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations.  The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

The Fund has declared the December 2025 distribution pursuant to the Fund's managed distribution plan (the "Plan").  Under the Plan, the Fund makes fixed quarterly distributions in the amount of $0.2500 per share, which will continue to be paid quarterly until further notice.

If you have questions or need additional information, please contact your financial professional or call the Manulife John Hancock Closed-End Fund Information Line at 1-800-843-0090, Monday through Friday between 8:00 a.m. and 7:00 p.m., Eastern Time.

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 Manulife John Hancock Investments 
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 manulife.com.

Media Contact:
Gordon Haight
(617) 572-0034

Investor Contact:
(800) 843-0090

View original content:https://www.prnewswire.com/news-releases/john-hancock-diversified-income-fund-notice-to-shareholders--sources-of-distribution-under-section-19a-302651408.html

SOURCE John Hancock Investment Management

FAQ

What is the amount and payment date of HEQ's December 2025 distribution?

HEQ declared a $0.2500 per share distribution payable on December 31, 2025 to holders of record on December 11, 2025.

How was HEQ's December 2025 distribution funded?

For the 10/01/2025–12/31/2025 period the distribution was funded 50% by net investment income ($0.1253) and 50% by net realized short‑term capital gains ($0.1247).

Did HEQ report any return of capital for fiscal year 2025?

Yes. Fiscal year‑to‑date through 12/31/2025 shows $0.0816 per share classified as return of capital, or 8% of cumulative distributions.

What is HEQ's fiscal year‑to‑date total distribution per share for 2025?

HEQ reports a cumulative fiscal year‑to‑date distribution of $1.0022 per share for the period 01/01/2025–12/31/2025.

What is HEQ's annualized distribution rate relative to NAV?

The annualized current distribution rate is reported as 8.14% of NAV as of 11/28/2025.

Will HEQ send tax documents showing the final classification of distributions for 2025?

Yes. The Fund will send a Form 1099‑DIV for the calendar year that reports the final tax classification of distributions.