John Hancock Diversified Income Fund Announces Quarterly Distribution
Boston, MA – March 31, 2025
John Hancock Diversified Income Fund (HEQ), a closed-end fund managed by John Hancock Investment Management LLC and subadvised by Wellington Management Company LLP, recently announced the sources of its quarterly distribution of $0.2500 per share. This distribution was paid to all shareholders of record as of March 13, 2025, as part of the Fund’s managed distribution plan.
Sources of Distribution
The Fund’s distribution policy is designed to provide a stable stream of income to investors. The sources of the quarterly distribution are as follows:
- Interest: 64.2%
- Capital Gains: 22.2%
- Return of Capital: 13.6%
It is important to note that the actual composition of the distribution may vary from time to time and may include ordinary income, net capital gains, and/or a return of capital. The final determination of the tax character of the Fund’s distributions will be made after the end of each calendar year.
Impact on Individual Investors
For individual investors holding shares of HEQ in their taxable accounts, the tax character of the distribution will impact their after-tax return. The interest and capital gains components of the distribution are taxed at ordinary income rates and long-term capital gains rates, respectively. The return of capital component is not taxed at the federal level but may be subject to state and local taxes.
It is essential for investors to consult with their tax advisors to understand the tax implications of their investments and to determine the most tax-efficient way to hold their shares. Additionally, investors should consider their overall investment objectives and risk tolerance when deciding whether to reinvest their distributions or take cash.
Impact on the World
The announcement of the quarterly distribution by John Hancock Diversified Income Fund is a reflection of the overall health and performance of the fund. The continued payment of distributions indicates that the fund is generating income for its investors, which can contribute to economic stability and growth.
Furthermore, the managed distribution plan allows investors to receive a consistent stream of income, which can help them meet their financial obligations and plan for their future. This, in turn, can lead to increased consumer spending and confidence, further contributing to economic growth.
Conclusion
The announcement of the quarterly distribution by John Hancock Diversified Income Fund is an essential update for investors in the fund. This distribution, which is part of the fund’s managed distribution plan, provides investors with a stable source of income. The sources of the distribution, which include interest, capital gains, and return of capital, will impact investors differently depending on their tax situation.
For individual investors, it is crucial to consult with their tax advisors to understand the tax implications of the distribution and to determine the most tax-efficient way to hold their shares. Meanwhile, the continuation of the fund’s distribution payments can contribute to economic stability and growth.
As always, investors should carefully consider their investment objectives and risk tolerance before making any investment decisions. For more information about John Hancock Diversified Income Fund, please visit the fund’s website or contact your financial advisor.
