Understanding Distribution Sources for Tax-Advantaged Funds
Sources of Distribution for John Hancock Tax-Advantaged Dividend Income Fund
John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD) recently shared important insights about its monthly distribution practices, ensuring shareholders are well-informed. This information is particularly valuable for those holding shares, as it outlines the distribution amount and the fund's managed distribution plan, aimed at maintaining a steady payout to investors.
Distribution Notification Overview
The fund has declared a distribution of $0.1580 per share for the month of August, which is to be payable on the last day of the month. Shareholders of record as of an earlier date will automatically receive this distribution without needing to take any action.
Understanding Your Distribution Breakdown
It’s essential for investors to comprehend the sources of these distributions. The distribution is supported by various elements, primarily net investment income, realized gains, and a potential return of capital. Here’s a simple breakdown of each component:
Net Investment Income
This is the income generated from the assets held within the fund, primarily from dividends and interest received from investments. For the period leading up to this distribution, the net investment income contributed a significant portion, specifically estimated at $0.1163 per share, making up 74% of the current distribution.
Capital Gains and Returns
The fund also incorporates both short-term and long-term capital gains in its distributions. However, the current distribution did not include any realized short-term or long-term capital gains, each accounting for $0.0000 per share. Yet, it is crucial to note that cumulative distributions for the fiscal year have included some capital gains as well. Additionally, there's an expected return of capital of $0.0417, representing 26% of the total distribution.
Fund Performance Insights
Investors should keep in mind that the distribution amounts are estimates. The actual figures can fluctuate based on the fund's investment performance throughout the fiscal year. For tax purposes, the fund will provide a Form 1099-DIV, reflecting exact distribution details for fiscal reporting.
What Investors Should Consider
Potential investors should not make assumptions about the fund's investment performance merely based on distribution amounts. The fund has noted that it may be distributing more than its income, indicating a return of capital. Essentially, this means you might receive back some of your initial investment rather than income generated from the fund's assets.
About Manulife and its Investment Strategies
In managing the John Hancock Tax-Advantaged Dividend Income Fund, Manulife Investment Management focuses on a multi-manager approach. This strategy combines their internal operations with external specialized managers to provide a diversified range of investment options backed by robust oversight. This methodology aims to deliver superior risk-adjusted returns for investors.
Expertise and Commitment to Investors
With a substantial network and deep experience in public and private markets, Manulife endeavors to offer impactful investment opportunities. Their mission centers around improving investment processes and outcomes, enabling clients to invest confidently for a secure financial future.
Contact and Further Information
Should you have any questions regarding your investment or require additional information, you can reach out to your financial advisor or contact the Manulife John Hancock Closed-End Fund Information Line directly. Their dedicated team is available to support your inquiries, enhancing your investment experience.
Frequently Asked Questions
1. What is the distribution amount for the John Hancock Fund?
The distribution amount for August is $0.1580 per share.
2. How is the distribution funded?
Distribution is primarily funded through net investment income and realized capital gains, alongside potential returns of capital.
3. What percentage of the distribution is considered a return of capital?
The return of capital is noted to be 26% of the total distribution amount.
4. How can I obtain tax reporting for my distributions?
The fund will send a Form 1099-DIV detailing distributions for tax reporting at the end of the calendar year.
5. Who can I contact for more information?
For further inquiries, you can either contact your financial advisor or call the Manulife John Hancock Closed-End Fund Information Line at 1-800-843-0090.
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