Important Distribution Update for John Hancock Hedged Fund
Key Distribution Insights for Shareholders
John Hancock Hedged Equity & Income Fund (NYSE: HEQ), a prominent closed-end fund managed by John Hancock Investment Management LLC, has recently communicated crucial information regarding its quarterly distribution. This announcement aims to provide all shareholders with essential details about the distribution source and amount.
Understanding the Fund's Distribution Announcement
The Fund has declared a quarterly distribution of $0.2500 per share for shareholders of record as of a recent date. According to the Fund's managed distribution plan, this distribution will be paid quarterly, allowing investors to gain a steady income stream. Importantly, shareholders do not need to take any action regarding this distribution.
Sources of the Current Distribution
For the upcoming distribution, it is essential for shareholders to be aware of where the funds are coming from. The distribution is derived from several sources, including net investment income and realized capital gains. Here’s a breakdown of the estimated sources:
Distribution Breakdown
- Net Investment Income: $0.1313 (53%)
- Net Realized Short-Term Capital Gains: $0.0000 (0%)
- Net Realized Long-Term Capital Gains: $0.1087 (43%)
- Return of Capital: $0.0100 (4%)
This breakdown illustrates how the distribution amount per common share is sourced, ensuring transparency for all shareholders. Furthermore, the total cumulative distributions for the fiscal year thus far are also noteworthy, totaling $0.7510 per common share.
Future Financial Expectations
As part of ongoing communication efforts, the Fund intends to keep shareholders informed regarding the performance and progress throughout the fiscal year. Historically, funds like the John Hancock Hedged Equity & Income Fund aim to provide value through consistent distributions. The management team emphasizes the importance of understanding the impacts of both income and capital gains.
Investment Performance Considerations
It’s important for shareholders to recognize that the distribution amount does not solely reflect the Fund's investment performance. The Fund may be distributing more than its net income and realized capital gains, leading to potential returns of capital. Such returns should not be confused with yield or income, and investors are encouraged to consult with financial professionals for a comprehensive understanding.
About John Hancock Investment Management
John Hancock Investment Management, a division under Manulife Investment Management, operates with a multimanager approach that combines in-house capabilities with a diverse range of specialized asset managers. This strategy fosters an environment of responsible investing, ensuring that the firm adheres to the highest standards of financial stewardship across its offerings, which spans public and private markets.
Contact Information for Shareholders
Shareholders seeking further assistance or detailed inquiries about their investment can reach out through their financial advisors or contact the John Hancock Investment Management Closed-End Fund Information Line at 1-800-843-0090, available Monday to Friday from 8:00 a.m. to 7:00 p.m. Eastern Time.
Frequently Asked Questions
What is the distribution amount for the current quarter?
The distribution amount for the current quarter is $0.2500 per share.
How often are distributions made by the Fund?
The Fund makes fixed quarterly distributions, ensuring regular income for shareholders.
What sources contribute to the Fund's distributions?
Distributions come from net investment income, realized capital gains, and for some portions, a return of capital.
Where can I find more information about my investment?
For more information, shareholders can contact their financial advisors or call the Fund's information line.
What is the purpose of the managed distribution plan?
The managed distribution plan aims to provide a consistent income stream to shareholders and manage the Fund's distributions effectively.
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