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 March 31, 2026, to shareholders of record March 12, 2026, under its managed distribution plan.

The Fund estimates the current distribution is funded 60% by net investment income, 35% by net realized short-term gains, 5% by net realized long-term gains and 0% by return of capital. Annualized distribution rate was 7.75% of NAV as of February 28, 2026.

Positive

• Distribution maintained at $0.2500 per share
• 60% of distribution from net investment income
• Annualized distribution rate of 7.75% of NAV

Negative

• 35% of the distribution from net realized short-term gains (potentially higher tax rates)
• 40% of distribution funded by realized capital gains (35% short-term, 5% long-term)

Key Figures

Quarterly distribution: $0.2500 per share Net investment income portion: $0.1492 (60%) Short-term gains portion: $0.0877 (35%) +5 more

8 metrics

Quarterly distribution $0.2500 per share March 2026 distribution under managed distribution plan

Net investment income portion $0.1492 (60%) Current March 2026 distribution source breakdown

Short-term gains portion $0.0877 (35%) Current March 2026 distribution source breakdown

Long-term gains portion $0.0131 (5%) Current March 2026 distribution source breakdown

Return of capital portion $0.0000 (0%) Current March 2026 distribution source breakdown

5-year average total return 9.68% Average annual total return at NAV for 5 years ended Feb 28, 2026

Current distribution rate 7.75% Annualized current distribution rate vs NAV as of Feb 28, 2026

FYTD total return 5.82% Cumulative total return at NAV fiscal year through Feb 28, 2026

Market Reality Check

Price: $10.58 Vol: Volume 42,981 is below 20...

normal vol

$10.58 Last Close

Volume Volume 42,981 is below 20-day average 55,796 (relative volume 0.77). normal

Technical Price 10.86 is slightly above 200-day MA of 10.79, near long-term trend.

Peers on Argus

HEQ gained 0.57% while peers were mixed: BCV +1.94%, MCN +0.52%, MPA +1.47% vers...

HEQ gained 0.57% while peers were mixed: BCV +1.94%, MCN +0.52%, MPA +1.47% versus BANX -0.45% and SAMG -2.33%, pointing to fund‑specific rather than broad sector drivers.

Historical Context

2 past events · Latest: Jan 13 (Positive)

Pattern 2 events

Date	Event	Sentiment	Move	Catalyst
Jan 13	Earnings update	Positive	-0.5%	Reported higher net investment income and income per share versus prior period.
Dec 31	Distribution notice	Neutral	+0.2%	Quarterly $0.2500 managed distribution and breakdown of income and gains sources.

Pattern Detected

Recent HEQ news has shown one mild negative and one mild positive price reaction, with a divergence on stronger income data.

Recent Company History

Over the last few months, HEQ’s key updates centered on earnings and distribution stability. On Dec 31, 2025, the fund detailed a $0.2500 quarterly managed distribution with a mix of income and capital gains. On Jan 13, 2026, it reported higher net investment income of $1,479,416 and $0.123 per share versus the prior period. That stronger income update coincided with a modest -0.54% move, while the prior Section 19(a) notice saw a small positive reaction, framing today’s similar notice within a pattern of generally modest price responses.

Market Pulse Summary

This announcement details HEQ’s March 2026 distribution of $0.2500 per share and clarifies the estim...

Analysis

This announcement details HEQ’s March 2026 distribution of $0.2500 per share and clarifies the estimated sources: primarily net investment income with contributions from short‑ and long‑term gains, and no return of capital for this period. It also highlights a 9.68% five‑year average annual total return at NAV and a 7.75% annualized distribution rate. Investors may watch future Section 19(a) notices for shifts in the income‑versus‑gains mix and any emergence of return‑of‑capital components.

Key Terms

managed distribution plan, net investment income, net realized short term capital gains, net realized long term capital gains, +4 more

8 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.

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"

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"

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.

return of capital financial

"and return of capital or other capital source."

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 asset value financial

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

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

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

"statements that are not historical facts are forward-looking statements as defined"

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, March 31, 2026 /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 March 12, 2026, 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 March 2, 2026, and payable on March 31, 2026. No action is required on your part.

Distribution Period:	March 2026
Distribution Amount Per Common Share:	$0.2500

The following table sets forth the estimated sources of the current distribution, payable March 31, 2026, 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 01/01/2026-03/31/2026				For the fiscal year-to-date period 01/01/2026-03/31/2026 1
Source		Current Distribution ($)		% Breakdown of the Current Distribution		Total Cumulative Distributions ($)		% Breakdown of the Total Cumulative Distributions
Net Investment Income		0.1492		60 %		0.1492		60 %
Net Realized Short- Term Capital Gains		0.0877		35 %		0.0877		35 %
Net Realized Long- Term Capital Gains		0.0131		5 %		0.0131		5 %
Return of Capital or Other Capital Source		0.0000		0 %		0.0000		0 %
Total per common share		0.2500		100 %		0.2500		100 %
_____________________________
1 The Fund's current fiscal year began on January 1, 2026 and will end on December 31, 2026.
Average annual total return (in relation to NAV) for the 5 years ended on February 28, 2026								9.68 %
Annualized current distribution rate expressed as a percentage of NAV as of February 28, 2026								7.75 %
Cumulative total return (in relation to NAV) for the fiscal year through February 28, 2026								5.82 %
Cumulative fiscal year-to-date distribution rate expressed as a percentage of NAV as of February 28, 2026								1.94 %

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 March 2026 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-302730609.html

SOURCE John Hancock Investment Management

FAQ

What is HEQ's March 2026 distribution amount and payment date?

HEQ declared a $0.2500 per share quarterly distribution payable on March 31, 2026. According to the company, shareholders of record as of March 12, 2026 are eligible under the Fund's managed distribution plan.

How were HEQ's March 2026 distributions funded by source (net investment income, gains, ROC)?

The March 2026 distribution was funded 60% by net investment income, 35% by net realized short-term gains, and 5% by net realized long-term gains. According to the company, return of capital was reported as 0% for the period.

What is the tax implication for HEQ shareholders from the March 2026 distribution?

A significant portion (35%) came from short-term gains, which may be taxed at higher ordinary-income rates. According to the company, final tax characterization will be provided on the year-end Form 1099-DIV.

What is HEQ's annualized distribution rate and recent performance metrics?

HEQ's annualized current distribution rate was reported as 7.75% of NAV as of February 28, 2026. According to the company, the five-year average annual total return (to NAV) was 9.68% through February 28, 2026.

Will HEQ continue paying $0.2500 quarterly and where can investors get more information?

The Fund stated it will continue fixed quarterly distributions of $0.2500 per share under its managed distribution plan until further notice. According to the company, investors can call the information line at 1-800-843-0090 for more details.