HPS Overview

Fed's Impact on Preferred Stocks: The Federal Reserve's interest rate cuts are expected to benefit preferred stocks, which offer higher payouts compared to common shares, making them attractive investments during periods of falling rates.

Preferred Stocks vs. Common Shares: Preferred stocks are hybrid securities that combine features of stocks and bonds, providing dividends and ownership while often trading like bonds, which makes them appealing when interest rates decline.

Closed-End Funds (CEFs) for Diversification: Investing in preferred stocks can be complex, but closed-end funds (CEFs) offer a simpler way to gain exposure, often at discounts to their net asset values, and can enhance yields through leverage.

Highlighted Preferred Funds: Three preferred funds are discussed: Cohen & Steers Limited Duration Preferred and Income Fund (LDP) with a 7.2% yield, John Hancock Preferred Income Fund III (HPS) at 8.6%, and Nuveen Preferred & Income Opportunities Fund (JPC) yielding 9.8%, each with varying levels of risk and investment strategies.

Annual Meeting Announcement: Nine John Hancock closed-end funds will hold their Annual Meeting of Shareholders on February 17, 2026, at 2:00 p.m. ET in Boston, Massachusetts, where shareholders will vote on the election of Trustees.

Shareholder Eligibility and Notice: Shareholders of record as of November 25, 2025, are entitled to vote, and notices will be mailed around December 26, 2025.

Monthly Distributions Declared: John Hancock closed-end funds announced their monthly distributions on August 1, 2025, with payment dates set for August 29, 2025. The distributions vary by fund, with amounts such as $0.1235 for Preferred Income Fund I and $0.1580 for Tax-Advantaged Dividend Income Fund.

Managed Distribution Plans: The funds operate under managed distribution plans that may include net investment income, capital gains, and potentially return of capital. Shareholders will receive notices detailing the components of distributions, which are subject to change by the Board at any time.