Understanding the Distribution Sources for BTO Shareholders

Understanding Distribution Sources for BTO Shareholders

John Hancock Financial Opportunities Fund (NYSE: BTO), a closed-end fund managed by John Hancock Investment Management LLC, has recently announced important information regarding its quarterly distribution. This distribution is an essential aspect for shareholders who are keen to understand where their returns are coming from and what it means for their investments.

Details of the Quarterly Distribution

The Fund declared a distribution amount of $0.6500 per share, which shareholders will receive. This specific distribution reflects the ongoing managed distribution plan that helps provide a consistent return to investors. For shareholders of record, this distribution is tied closely to investment performance and overall fund management strategy.

Notification of Distribution

It's crucial for shareholders to be aware that they do not need to take any action regarding this distribution. The Fund has clearly outlined the terms of the distribution which is declared and payable based on the performance metrics established for the quarter.

Source Breakdown of the Distribution

For the period covering January 1, 2025, to March 31, 2025, the sources of distribution are broken down into several categories, each representing different aspects of the Fund's financial performance:

• Net Investment Income: $0.1020, accounting for 16% of the total distribution.
• Net Realized Short-Term Capital Gains: $0.0350, contributing 5% to the distribution.
• Net Realized Long-Term Capital Gains: $0.3363, representing 52% of the overall distribution.
• Return of Capital: $0.1767, equating to 27% of the total distribution.

Financial Insights from the Fund

The total distribution of $0.6500 per common share is a culmination of various financial inputs. Each component gives shareholders insight into the fund's operational success and its focus on providing value to investors. Understanding these breakdowns is vital for gauging the effectiveness of the Fund's investment strategies.

Investment Performance Factors

While the distribution amounts may provide immediate returns, shareholders should consider them in the broader context of performance. The Fund estimates that it has distributed more than its net income and realized capital gains, signifying that some payouts could be a return of capital. This means that parts of the investment may be recouped, which should be understood distinctly from yield or income.

Tax Reporting and Expectations for Shareholders

The amounts mentioned previously are estimates provided for informational purposes. The actual amounts that shareholders will report for tax purposes can vary based on ongoing fund performance and regulatory changes. At the end of the fiscal year, shareholders will receive a Form 1099-DIV to assist with this reporting process.

Contact Information for Shareholders

For any inquiries or further clarifications, shareholders can reach out to their financial advisors or contact the John Hancock Investment Management Closed-End Fund Information Line at 1-800-843-0090. The team is available Monday through Friday during working hours.

Frequently Asked Questions

What is the total distribution amount announced for BTO?

The total distribution amount declared for BTO is $0.6500 per share.

How is the distribution amount comprised?

The distribution amount includes net investment income, net realized short term and long term capital gains, and a return of capital.

When will shareholders receive their distributions?

Shareholders will receive their distributions on March 31, 2025.

What should shareholders do regarding their distributions?

No action is required on the part of shareholders for this distribution.

Where can I find more information about my investment?

Shareholders can contact John Hancock Investment Management or their financial advisor for more details regarding their investments.

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