UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-22056
John Hancock Tax-Advantaged Global Shareholder Yield Fund
(Exact name of registrant as specified in charter)
200 Berkeley Street, Boston, Massachusetts 02116
(Address of principal executive offices) (Zip code)
Salvatore Schiavone
Treasurer
200 Berkeley Street
Boston, Massachusetts 02116
(Name and address of agent for service)
Registrant's telephone number, including area code:617-663-4497
Date of fiscal year end: | October 31 |
Date of reporting period: | October 31, 2019 |
ITEM 1. REPORTS TO STOCKHOLDERS.
John Hancock
Tax-Advantaged Global Shareholder Yield Fund
Ticker: HTY
Annual report 10/31/19
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund's shareholder reports such as this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the transfer agent or from your financial intermediary. Instead, the reports will be made available on our website, and you will be notified by mail each time a report is posted and be provided with a website link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you do not need to take any action. You may elect to receive shareholder reports and other communications electronically by calling the transfer agent, Computershare, at 800-852-0218, by going to "Communication Preferences" at computershare.com/investor, or by contacting your financial intermediary.
You may elect to receive all reports in paper, free of charge, at any time. You can inform the transfer agent or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions listed above. Your election to receive reports in paper will apply to all funds held with John Hancock Investment Management or your financial intermediary.
A message to shareholders
Dear shareholder,
It was a volatile time for global stock investors during the 12 months ended October 31, 2019, although many segments of the market delivered attractive absolute returns for the period. Uncertainty surrounding global trade, a slowdown in China, sluggish growth in Europe, and the latest Brexit developments led to some dramatic swings in performance. Central banks introduced stimulative measures late in the period, with the U.S. Federal Reserve cutting interest rates three times and the European Central Bank rolling out a sweeping package of monetary and fiscal support for the eurozone economy.
Economic fundamentals around the globe are relatively mixed today, with the United States appearing fairly healthy, Europe on decidedly less stable footing, and emerging economies on divergent paths. With an uncertain outlook, it's safe to say there are sure to be patches of market turbulence as the year goes on. As always, your best resource in unpredictable markets is your financial advisor, who can help position your portfolio so that it's sufficiently diversified to meet your long-term objectives and to withstand the inevitable bouts of market volatility along the way.
On behalf of everyone at John Hancock Investment Management, I'd like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you've placed in us.
Sincerely,
Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
This commentary reflects the CEO's views as of this report's period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
Tax-Advantaged Global Shareholder Yield Fund
Table of contents
2 | Your fund at a glance | |
5 | Manager's discussion of fund performance | |
7 | Fund's investments | |
12 | Financial statements | |
15 | Financial highlights | |
16 | Notes to financial statements | |
23 | Report of independent registered public accounting firm | |
24 | Tax information | |
25 | Additional information | |
28 | Continuation of investment advisory and subadvisory agreements | |
35 | Trustees and Officers | |
39 | More information |
INVESTMENT OBJECTIVE
The fund seeks to provide total return consisting of a high level of current income and gains and long-term capital appreciation. The fund will seek to achieve favorable after-tax returns for shareholders by seeking to minimize the U.S. federal income tax consequences on income and gains generated by the fund.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/19 (%)
The MSCI World Index is a free float-adjusted capitalization-weighted index that is designed to measure the equity market performance of developed markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The performance data contained within this material represents past performance, which does not guarantee future results.
Investment returns and principal value will fluctuate and a shareholder may sustain losses. Further, the fund's performance at net asset value (NAV) is different from the fund's performance at closing market price because the closing market price is subject to the dynamics of secondary market trading. Market risk may be augmented when shares are purchased at a premium to NAV or sold at a discount to NAV. Current month-end performance may be higher or lower than the performance cited. The fund's most recent performance can be found at jhinvestments.com or by calling 800-852-0218.
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Accommodative policy supported equity gains
Global stocks delivered solid performance amid increased volatility, with easing monetary policy from central banks overcoming an ongoing trade war and slowing global economic growth.
Limited exposure to growth sectors affected performance
The fund had a positive return at NAV but underperformed its comparative index, the MSCI World Index, due to stock selection in the consumer staples and communication services sectors, an overweight in energy, and lower exposure to information technology.
Utilities and financial stocks had a positive influence
Stock selection in the utilities and financials sectors and an overweight in utilities contributed the most to relative results.
SECTOR COMPOSITION AS OF 10/31/19 (%)
A note about risks
As is the case with all exchange-listed closed-end funds, shares of this fund may trade at a discount or a premium to the fund's net asset value (NAV). An investment in the fund is subject to investment and market risks, including the possible loss of the entire principal invested. The value of a company's equity securities is subject to changes in its financial condition and overall market and economic conditions. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. There is no guarantee prior distribution levels will be maintained, and distributions may include a substantial return of capital. For the fiscal year ended October 31, 2019, the fund's aggregate distributions included a tax return of capital of $0.22 per share, or 34% of aggregate distributions, which may increase the potential tax gain or decrease the potential tax loss of a subsequent sale of shares of the fund. See the financial highlights and notes to the financial statements for details of the return of capital and risks associated with distributions made by the fund. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if an issuer, grantor, or counterparty is unable or unwilling to make principal, interest, or settlement payments. Investments in higher-yielding, lower-rated securities are subject to a higher risk of default. An issuer of securities held by the fund may default, have its credit rating downgraded, or otherwise perform poorly, which may affect fund performance. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. Focusing on a particular industry or sector may increase the fund's volatility and make it more susceptible to market, economic, and regulatory risks as well as other factors affecting those industries or sectors. Derivatives transactions, such as hedging and other strategic transactions, may increase a fund's volatility and could produce disproportionate losses, potentially more than the fund's principal investment. Cybersecurity incidents may allow an unauthorized party to gain access to fund assets, customer data, or proprietary information, or cause a fund or its service providers to suffer data corruption or lose operational functionality. Similar incidents affecting issuers of fund securities may negatively impact performance.
Global equities withstood increasing periods of volatility to deliver solid returns. A continued trade standoff between the United States and China, as well as signs of slowing global growth, centered in manufacturing, were the primary risks during the period. Global monetary policy, meanwhile, turned accommodative, with the U.S. Federal Reserve reducing its interest-rate target three times and the European Central Bank announcing plans to resume quantitative easing. The fund's benchmark, the MSCI World Index, advanced 12.7%, led by the income-oriented real estate and utilities sectors as well as information technology, communication services, and industrials; financials and healthcare lagged the market.
How did the fund respond to these market conditions?
Amid a backdrop of increased volatility and slowing global growth, the yield-oriented companies that we favor outperformed, and while the fund produced a positive return, it underperformed its benchmark. Asset allocation detracted from relative performance while stock selection contributed. Stock selection in the financials, utilities, and consumer discretionary sectors and an overweight in utilities were the primary contributors. Stock selection in the consumer staples and communication services sectors as well as an overweight in energy and an underweight in information technology hurt performance.
What were the main areas of weakness?
Kraft Heinz Company, a North American packaged food and beverage company, was among the leading detractors following disappointing results and an abrupt
TOP 10 HOLDINGS AS OF 10/31/19 (%) | TOP 10 COUNTRIES AS OF 10/31/19 (%) | |||
Eaton Corp. PLC | 2.5 | United States | 54.0 | |
MetLife, Inc. | 2.0 | United Kingdom | 10.8 | |
Unilever PLC | 1.9 | France | 7.4 | |
Allianz SE | 1.9 | Canada | 6.2 | |
AXA SA | 1.8 | Germany | 6.1 | |
Duke Energy Corp. | 1.8 | Italy | 3.3 | |
BCE, Inc. | 1.8 | Switzerland | 2.9 | |
Texas Instruments, Inc. | 1.8 | Australia | 1.8 | |
Verizon Communications, Inc. | 1.7 | Japan | 1.7 | |
Entergy Corp. | 1.7 | Netherlands | 1.4 | |
TOTAL | 18.9 | TOTAL | 95.6 | |
As a percentage of net assets. | As a percentage of net assets. | |||
Cash and cash equivalents are not included. | Cash and cash equivalents are not included. |
change in its capital allocation policy. Occidental Petroleum Corp., a global oil and natural gas exploration and production company, underperformed as deteriorating trade negotiations led to investor concerns on global oil demand and falling oil and gas prices.
Which holdings contributed the most to performance?
Utilities were among the top individual contributors for the period, led by Entergy Corp., a U.S.-based power producer. Shares outperformed as market volatility increased, interest rates declined, and investors gained further confidence in its exit of unregulated merchant power generation businesses. Munich Re, a global company engaged in reinsurance and primary insurance across life and property and casualty markets, was also among the leading contributors due to a better pricing environment and outlook for reinsurers.
What changes did you make during the period?
We added more than 10 new positions, including CenterPoint Energy, Inc., a U.S. utility involved in electricity generation and natural gas distribution that generates cash flow from regulated and nonutility businesses, and Darden Restaurants, Inc., which sustains cash flows through market leadership and scale of its eight U.S. dining brands. We also closed more than 10 positions, including Vodafone Group, PLC, a global provider of telecommunication services, which lowered its dividend due to increased competition, and risk management firm Arthur J. Gallagher & Company, where share price appreciation compressed the dividend yield.
MANAGED BY
The Tax-Advantaged Global Shareholder Yield fund is jointly managed by a team of portfolio managers from Epoch Investment Partners, Inc. and Wells Capital Management Incorporated. |
Fund’s investments |
Shares | Value | ||||
Common stocks 99.2% | $82,609,149 | ||||
(Cost $80,156,084) | |||||
Australia 1.8% | 1,500,872 | ||||
Commonwealth Bank of Australia | 8,600 | 466,293 | |||
Macquarie Group, Ltd. | 5,586 | 515,797 | |||
Westpac Banking Corp. | 26,720 | 518,782 | |||
Canada 6.2% | 5,172,882 | ||||
BCE, Inc. | 32,100 | 1,522,745 | |||
Nutrien, Ltd. | 15,223 | 727,507 | |||
Pembina Pipeline Corp. | 23,500 | 827,344 | |||
Rogers Communications, Inc., Class B | 14,600 | 687,378 | |||
Royal Bank of Canada | 7,400 | 596,899 | |||
TELUS Corp. | 22,800 | 811,009 | |||
France 7.4% | 6,185,947 | ||||
AXA SA | 58,189 | 1,540,333 | |||
Cie Generale des Etablissements Michelin SCA | 6,000 | 730,543 | |||
Sanofi | 10,874 | 1,002,442 | |||
SCOR SE | 13,100 | 552,547 | |||
TOTAL SA | 23,419 | 1,238,120 | |||
Vinci SA | 10,000 | 1,121,962 | |||
Germany 6.1% | 5,085,387 | ||||
Allianz SE | 6,353 | 1,551,546 | |||
BASF SE | 11,600 | 881,823 | |||
Deutsche Post AG | 19,500 | 690,788 | |||
Muenchener Rueckversicherungs-Gesellschaft AG | 4,600 | 1,278,062 | |||
Siemens AG | 5,920 | 683,168 | |||
Italy 3.3% | 2,771,378 | ||||
Assicurazioni Generali SpA | 34,300 | 695,518 | |||
Snam SpA | 218,700 | 1,122,785 | |||
Terna Rete Elettrica Nazionale SpA | 144,200 | 953,075 | |||
Japan 1.7% | 1,382,475 | ||||
Takeda Pharmaceutical Company, Ltd. | 22,400 | 809,380 | |||
Tokio Marine Holdings, Inc. | 10,600 | 573,095 | |||
Netherlands 1.4% | 1,141,893 | ||||
Royal Dutch Shell PLC, ADR, Class A (A) | 19,698 | 1,141,893 | |||
Norway 0.9% | 763,180 | ||||
Orkla ASA | 79,400 | 763,180 | |||
South Korea 0.8% | 695,911 | ||||
Samsung Electronics Company, Ltd., GDR (B) | 651 | 695,911 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | 7 |
Shares | Value | ||||
Spain 0.7% | $534,003 | ||||
Naturgy Energy Group SA | 19,600 | 534,003 | |||
Sweden 0.5% | 424,394 | ||||
Svenska Handelsbanken AB, A Shares | 42,288 | 424,394 | |||
Switzerland 2.9% | 2,441,977 | ||||
Nestle SA | 5,000 | 534,907 | |||
Novartis AG | 11,803 | 1,031,289 | |||
Roche Holding AG | 2,910 | 875,781 | |||
Taiwan 0.7% | 577,017 | ||||
Taiwan Semiconductor Manufacturing Company, Ltd., ADR | 11,176 | 577,017 | |||
United Kingdom 10.8% | 8,944,260 | ||||
AstraZeneca PLC, ADR (A) | 17,231 | 844,836 | |||
BAE Systems PLC | 156,700 | 1,170,504 | |||
British American Tobacco PLC | 21,600 | 755,479 | |||
British American Tobacco PLC, ADR | 7,746 | 270,800 | |||
Coca-Cola European Partners PLC (New York Stock Exchange) | 8,100 | 433,431 | |||
GlaxoSmithKline PLC | 38,200 | 874,969 | |||
Imperial Brands PLC | 38,400 | 842,322 | |||
Lloyds Banking Group PLC | 855,100 | 629,017 | |||
Micro Focus International PLC | 25,783 | 353,877 | |||
National Grid PLC | 99,750 | 1,166,305 | |||
Unilever PLC | 26,766 | 1,602,720 | |||
United States 54.0% | 44,987,573 | ||||
3M Company | 3,200 | 527,968 | |||
AbbVie, Inc. | 8,600 | 684,130 | |||
Altria Group, Inc. (A) | 22,700 | 1,016,733 | |||
Ameren Corp. (A) | 6,200 | 481,740 | |||
American Electric Power Company, Inc. (A) | 7,600 | 717,364 | |||
Amgen, Inc. | 2,400 | 511,800 | |||
AT&T, Inc. (A) | 29,800 | 1,147,002 | |||
BB&T Corp. | 11,928 | 632,780 | |||
BlackRock, Inc. (A) | 1,100 | 507,870 | |||
Broadcom, Inc. | 1,545 | 452,453 | |||
CenterPoint Energy, Inc. | 21,164 | 615,237 | |||
Chevron Corp. | 6,055 | 703,228 | |||
Cisco Systems, Inc. (A) | 15,628 | 742,486 | |||
CME Group, Inc. (A) | 2,298 | 472,814 | |||
Darden Restaurants, Inc. | 3,814 | 428,198 | |||
Dominion Energy, Inc. (A) | 14,200 | 1,172,210 | |||
Dow, Inc. | 17,606 | 888,927 | |||
Duke Energy Corp. (A) | 16,300 | 1,536,438 | |||
Eaton Corp. PLC | 24,268 | 2,113,985 | |||
Emerson Electric Company (A) | 10,120 | 709,918 |
8 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
United States (continued) | |||||
Entergy Corp. (A) | 11,384 | $1,382,928 | |||
Exxon Mobil Corp. (A) | 11,800 | 797,326 | |||
FirstEnergy Corp. (A) | 26,400 | 1,275,648 | |||
Hanesbrands, Inc. (A) | 36,982 | 562,496 | |||
IBM Corp. | 6,156 | 823,242 | |||
Intel Corp. | 9,931 | 561,399 | |||
Johnson & Johnson (A) | 5,525 | 729,521 | |||
Kimberly-Clark Corp. (A) | 5,400 | 717,552 | |||
KLA Corp. | 3,358 | 567,636 | |||
Las Vegas Sands Corp. | 14,800 | 915,232 | |||
Leggett & Platt, Inc. | 13,800 | 707,940 | |||
Lockheed Martin Corp. (A) | 1,532 | 577,074 | |||
LyondellBasell Industries NV, Class A | 7,200 | 645,842 | |||
McDonald's Corp. (A) | 2,600 | 511,420 | |||
Merck & Company, Inc. (A) | 12,600 | 1,091,916 | |||
MetLife, Inc. (A) | 34,934 | 1,634,562 | |||
Microsoft Corp. (A) | 4,398 | 630,541 | |||
Occidental Petroleum Corp. (A) | 13,600 | 550,800 | |||
People's United Financial, Inc. (A) | 54,700 | 884,499 | |||
PepsiCo, Inc. | 5,200 | 713,284 | |||
Pfizer, Inc. (A) | 32,375 | 1,242,229 | |||
Philip Morris International, Inc. (A) | 12,700 | 1,034,288 | |||
Phillips 66 | 8,022 | 937,130 | |||
PPL Corp. (A) | 27,800 | 931,022 | |||
Target Corp. | 6,100 | 652,151 | |||
Texas Instruments, Inc. (A) | 12,900 | 1,522,071 | |||
The Coca-Cola Company (A) | 14,900 | 811,007 | |||
The Home Depot, Inc. | 2,400 | 562,992 | |||
The Procter & Gamble Company (A) | 5,300 | 659,903 | |||
United Parcel Service, Inc., Class B | 4,800 | 552,816 | |||
UnitedHealth Group, Inc. | 2,300 | 581,210 | |||
Verizon Communications, Inc. (A) | 23,500 | 1,421,045 | |||
Watsco, Inc. | 3,492 | 615,640 | |||
WEC Energy Group, Inc. (A) | 6,081 | 574,046 | |||
Wells Fargo & Company | 10,573 | 545,884 | |||
Yield (%) | Shares | Value | |||
Short-term investments 0.9% | $732,778 | ||||
(Cost $732,778) | |||||
Money market funds 0.3% | 237,778 | ||||
State Street Institutional Treasury Money Market Fund, Premier Class | 1.7364(C) | 237,778 | 237,778 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | 9 |
Par value^ | Value | ||||
Repurchase agreement 0.6% | 495,000 | ||||
Repurchase Agreement with State Street Corp. dated 10-31-19 at 0.550% to be repurchased at $495,008 on 11-1-19, collateralized by $505,000 U.S. Treasury Notes, 1.875% due 1-31-22 (valued at $509,820, including interest) | 495,000 | 495,000 |
Total investments (Cost $80,888,862) 100.1% | $83,341,927 | ||||
Other assets and liabilities, net (0.1%) | (48,098) | ||||
Total net assets 100.0% | $83,293,829 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund unless otherwise indicated. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
(A) | All or a portion of this security is segregated as collateral for options. Total collateral value at 10-31-19 was $25,051,698. |
(B) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
(C) | The rate shown is the annualized seven-day yield as of 10-31-19. |
10 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Options on index | ||||||||
Counterparty (OTC)/ Exchange- traded | Name of issuer | Exercise price | Expiration date | Number of contracts | Notional amount | Premium | Value | |
Calls | ||||||||
Exchange-traded | NASDAQ 100 Index | USD | 7,875.00 | Nov 2019 | 1 | 100 | $21,519 | $(24,500) |
Exchange-traded | Russell 2000 Index | USD | 1,535.00 | Nov 2019 | 15 | 1,500 | 49,429 | (62,850) |
Exchange-traded | S&P 500 Index | USD | 3,005.00 | Nov 2019 | 8 | 800 | 17,194 | (28,200) |
Exchange-traded | S&P 500 Index | USD | 3,050.00 | Nov 2019 | 8 | 800 | 8,634 | (8,800) |
Exchange-traded | S&P 500 Index | USD | 3,225.00 | Nov 2019 | 42 | 4,200 | 10,290 | (630) |
Exchange-traded | S&P 500 Index | USD | 1,275.00 | Nov 2019 | 64 | 6,400 | 289,406 | (494,720) |
Exchange-traded | S&P 500 Index | USD | 3,040.00 | Nov 2019 | 8 | 800 | 12,714 | (18,720) |
Exchange-traded | S&P 500 Index | USD | 3,085.00 | Nov 2019 | 8 | 800 | 7,273 | (8,400) |
Exchange-traded | S&P 500 Index | USD | 1,330.00 | Dec 2019 | 8 | 800 | 28,474 | (30,640) |
Exchange-traded | S&P 500 Index | USD | 1,430.00 | Dec 2019 | 38 | 3,800 | 10,330 | (3,800) |
$455,263 | $(681,260) |
Derivatives Currency Abbreviations | |
USD | U.S. Dollar |
Derivatives Abbreviations | |
OTC | Over-the-counter |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | 11 |
Financial statements |
Assets | |
Unaffiliated investments, at value (Cost $80,888,862) | $83,341,927 |
Foreign currency, at value (Cost $36) | 36 |
Dividends and interest receivable | 758,601 |
Receivable for investments sold | 186,206 |
Other assets | 60,836 |
Total assets | 84,347,606 |
Liabilities | |
Written options, at value (Premiums received $455,263) | 681,260 |
Due to custodian | 185,798 |
Payable for fund shares repurchased | 69,227 |
Payable to affiliates | |
Accounting and legal services fees | 7,123 |
Trustees' fees | 147 |
Other liabilities and accrued expenses | 110,222 |
Total liabilities | 1,053,777 |
Net assets | $83,293,829 |
Net assets consist of | |
Paid-in capital | $105,308,987 |
Total distributable earnings (loss) | (22,015,158) |
Net assets | $83,293,829 |
Net asset value per share | |
Based on 10,938,436 shares of beneficial interest outstanding - unlimited number of shares authorized with $0.01 par value | $7.61 |
12 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $6,073,453 |
Interest | 28,818 |
Less foreign taxes withheld | (325,640) |
Total investment income | 5,776,631 |
Expenses | |
Investment management fees | 790,988 |
Accounting and legal services fees | 18,331 |
Transfer agent fees | 20,344 |
Trustees' fees | 43,690 |
Custodian fees | 48,456 |
Printing and postage | 49,481 |
Professional fees | 117,167 |
Stock exchange listing fees | 21,515 |
Other | 9,485 |
Total expenses | 1,119,457 |
Less expense reductions | (6,123) |
Net expenses | 1,113,334 |
Net investment income | 4,663,297 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | (3,654,652) |
Written options | (986,492) |
(4,641,144) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | 7,185,666 |
Written options | (453,937) |
6,731,729 | |
Net realized and unrealized gain | 2,090,585 |
Increase in net assets from operations | $6,753,882 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | 13 |
Year ended 10-31-19 | Year ended 10-31-18 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $4,663,297 | $4,494,980 |
Net realized loss | (4,641,144) | (2,453,114) |
Change in net unrealized appreciation (depreciation) | 6,731,729 | (6,922,809) |
Increase (decrease) in net assets resulting from operations | 6,753,882 | (4,880,943) |
Distributions to shareholders | ||
From earnings | (4,667,477) | (4,509,993) |
From tax return of capital | (2,386,247) | (4,540,867) |
Total distributions | (7,053,724) | (9,050,860) |
Fund share transactions | ||
Issued pursuant to Dividend Reinvestment Plan | — | 85,293 |
Repurchased | (720,881) | — |
Total from fund share transactions | (720,881) | 85,293 |
Total decrease | (1,020,723) | (13,846,510) |
Net assets | ||
Beginning of year | 84,314,552 | 98,161,062 |
End of year | $83,293,829 | $84,314,552 |
Share activity | ||
Shares outstanding | ||
Beginning of year | 11,044,437 | 11,034,238 |
Issued pursuant to Dividend Reinvestment Plan | — | 10,199 |
Shares repurchased | (106,001) | — |
End of year | 10,938,436 | 11,044,437 |
14 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial highlights |
Period ended | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | 10-31-15 |
Per share operating performance | |||||
Net asset value, beginning of period | $7.63 | $8.90 | $8.77 | $10.07 | $11.44 |
Net investment income1 | 0.42 | 0.41 | 0.44 | 0.52 | 0.64 |
Net realized and unrealized gain (loss) on investments | 0.19 | (0.86) | 0.66 | (0.57) | (0.75) |
Total from investment operations | 0.61 | (0.45) | 1.10 | (0.05) | (0.11) |
Less distributions | |||||
From net investment income | (0.42) | (0.41) | (0.44) | (0.52) | (0.75) |
From tax return of capital | (0.22) | (0.41) | (0.54) | (0.76) | (0.53) |
Total distributions | (0.64) | (0.82) | (0.98) | (1.28) | (1.28) |
Anti-dilutive impact of repurchase plan | 0.012 | — | — | — | — |
Anti-dilutive impact of shelf offering | — | — | 0.01 | 0.03 | 0.02 |
Net asset value, end of period | $7.61 | $7.63 | $8.90 | $8.77 | $10.07 |
Per share market value, end of period | $6.93 | $6.91 | $8.97 | $10.35 | $9.51 |
Total return at net asset value (%)3,4 | 9.45 | (5.45) | 12.95 | (1.28) | (0.65) |
Total return at market value (%)3 | 10.06 | (15.04) | (3.54) | 23.37 | (14.74) |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $83 | $84 | $98 | $96 | $106 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.35 | 1.35 | 1.32 | 1.32 | 1.27 |
Expenses including reductions | 1.34 | 1.34 | 1.31 | 1.32 | 1.26 |
Net investment income | 5.60 | 4.90 | 4.96 | 5.60 | 6.01 |
Portfolio turnover (%) | 260 | 208 | 220 | 253 | 261 |
1 | Based on average daily shares outstanding. |
2 | The repurchase plan was completed at an average repurchase price of $6.80 for 106,001 shares for the periods ended 10-31-19. |
3 | Total return based on net asset value reflects changes in the fund’s net asset value during each period. Total return based on market value reflects changes in market value. Each figure assumes that distributions from income, capital gains and tax return of capital, if any, were reinvested. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Tax-Advantaged Global Shareholder Yield Fund | 15 |
Notes to financial statements |
16 | JOHN HANCOCK Tax-Advantaged Global Shareholder Yield Fund | ANNUAL REPORT |
Total value at 10-31-19 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Australia | $1,500,872 | — | $1,500,872 | — |
Canada | 5,172,882 | $5,172,882 | — | — |
France | 6,185,947 | — | 6,185,947 | — |
Germany | 5,085,387 | — | 5,085,387 | — |
Italy | 2,771,378 | — | 2,771,378 | — |
Japan | 1,382,475 | — | 1,382,475 | — |
Netherlands | 1,141,893 | 1,141,893 | — | — |
Norway | 763,180 | — | 763,180 | — |
South Korea | 695,911 | — | 695,911 | — |
Spain | 534,003 | — | 534,003 | — |
Sweden | 424,394 | — | 424,394 | — |
Switzerland | 2,441,977 | — | 2,441,977 | — |
Taiwan | 577,017 | 577,017 | — | — |
United Kingdom | 8,944,260 | 1,549,067 | 7,395,193 | — |
United States | 44,987,573 | 44,987,573 | — | — |
ANNUAL REPORT | JOHN HANCOCK Tax-Advantaged Global Shareholder Yield Fund | 17 |
Total value at 10-31-19 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Short-term investments | $732,778 | $237,778 | $495,000 | — |
Total investments in securities | $83,341,927 | $53,666,210 | $29,675,717 | — |
Derivatives: | ||||
Liabilities | ||||
Written options | $(681,260) | $(681,260) | — | — |
18 | JOHN HANCOCK Tax-Advantaged Global Shareholder Yield Fund | ANNUAL REPORT |
October 31, 2019 | October 31, 2018 | |
Ordinary income | $4,667,477 | $4,509,993 |
Return of capital | 2,386,247 | 4,540,867 |
Total | $7,053,724 | $9,050,860 |
ANNUAL REPORT | JOHN HANCOCK Tax-Advantaged Global Shareholder Yield Fund | 19 |
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value |
Equity | Written options, at value | Written options | — | $(681,260) |
20 | JOHN HANCOCK Tax-Advantaged Global Shareholder Yield Fund | ANNUAL REPORT |
Statement of operations location - Net realized gain (loss) on: | |
Risk | Written options |
Equity | $(986,492) |
Statement of operations location - Change in net unrealized appreciation (depreciation) of: | |
Risk | Written options |
Equity | $(453,937) |
ANNUAL REPORT | JOHN HANCOCK Tax-Advantaged Global Shareholder Yield Fund | 21 |
22 | JOHN HANCOCK Tax-Advantaged Global Shareholder Yield Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | 23 |
Tax information (Unaudited) |
24 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT |
Unaudited
Investment objective and policy
The fund is a diversified, closed-end management investment company, common shares of which were initially offered to the public in 2007. The fund's investment objective is to provide total return consisting of a high level of current income and gains and long term capital appreciation. In pursuing its investment objective of total return, the fund will seek to emphasize high current income. The fund will seek to achieve favorable after-tax returns for its shareholders by seeking to minimize the U.S. federal income tax consequences on income and gains generated by the fund. Under normal market conditions, the fund will invest at least 80% of its total assets in a diversified portfolio of dividend-paying securities of issuers located throughout the world. The fund will notify shareholders at least 60 days prior to any change in this 80% investment policy. The fund also intends to write (sell) call options on a variety of both U.S. and non-U.S. broad-based indices.
Dividends and distributions
During the year ended October 31, 2019, distributions from net investment income totaling $0.6400 per share were paid to shareholders. The dates of payments and the amounts per share were as follows:
Payment Date | Income Distributions* |
December 31, 2018 | $0.1600 |
March 29, 2019 | 0.1600 |
June 28, 2019 | 0.1600 |
September 30, 2019 | 0.1600 |
Total | $0.6400 |
* A portion of the distributions may be deemed a tax return of capital at the fiscal year end.
Dividend reinvestment plan
The fund's Dividend Reinvestment Plan (the Plan) provides that distributions of dividends and capital gains are automatically reinvested in common shares of the fund by Computershare Trust Company, N.A. (the Plan Agent). Every shareholder holding at least one full share of the fund is entitled to participate in the Plan. In addition, every shareholder who became a shareholder of the fund after June 30, 2011, and holds at least one full share of the fund will be automatically enrolled in the Plan. Shareholders may withdraw from the Plan at any time and shareholders who do not participate in the Plan will receive all distributions in cash.
If the fund declares a dividend or distribution payable either in cash or in common shares of the fund and the market price of shares on the payment date for the distribution or dividend equals or exceeds the fund's net asset value per share (NAV), the fund will issue common shares to participants at a value equal to the higher of NAV or 95% of the market price. The number of additional shares to be credited to each participant's account will be determined by dividing the dollar amount of the distribution or dividend by the higher of NAV or 95% of the market price. If the market price is lower than NAV, or if dividends or distributions are payable only in cash, then participants will receive shares purchased by the Plan Agent on participants' behalf on the NYSE or otherwise on the open market. If the market price exceeds NAV before the Plan Agent has completed its purchases, the average per share purchase price may exceed NAV, resulting in fewer shares being acquired than if the fund had issued new shares.
There are no brokerage charges with respect to common shares issued directly by the fund. However, whenever shares are purchased or sold on the NYSE or otherwise on the open market, each participant will pay a pro rata portion of
brokerage trading fees, currently $0.05 per share purchased or sold. Brokerage trading fees will be deducted from amounts to be invested.
The reinvestment of dividends and net capital gains distributions does not relieve participants of any income tax that may be payable on such dividends or distributions.
Shareholders participating in the Plan may buy additional shares of the fund through the Plan at any time in amounts of at least $50 per investment, up to a maximum of $10,000, with a total calendar year limit of $100,000. Shareholders will be charged a $5 transaction fee plus $0.05 per share brokerage trading fee for each order. Purchases of additional shares of the fund will be made on the open market. Shareholders who elect to utilize monthly electronic fund transfers to buy additional shares of the fund will be charged a $2 transaction fee plus $0.05 per share brokerage trading fee for each automatic purchase. Shareholders can also sell fund shares held in the Plan account at any time by contacting the Plan Agent by telephone, in writing or by visiting the Plan Agent's website at www.computershare.com/investor. The Plan Agent will mail a check (less applicable brokerage trading fees) on settlement date. Pursuant to regulatory changes, effective September 5, 2017, the settlement date is changed from three business days after the shares have been sold to two business days after the shares have been sold. If shareholders choose to sell shares through their stockbroker, they will need to request that the Plan Agent electronically transfer those shares to their stockbroker through the Direct Registration System.
Shareholders participating in the Plan may withdraw from the Plan at any time by contacting the Plan Agent by telephone, in writing or by visiting the Plan Agent's website at www.computershare.com/investor. Such termination will be effective immediately if the notice is received by the Plan Agent prior to any dividend or distribution record date; otherwise, such termination will be effective on the first trading day after the payment date for such dividend or distribution, with respect to any subsequent dividend or distribution. If shareholders withdraw from the Plan, their shares will be credited to their account; or, if they wish, the Plan Agent will sell their full and fractional shares and send the shareholders the proceeds, less a transaction fee of $5 and less brokerage trading fees of $0.05 per share. If a shareholder does not maintain at least one whole share of common stock in the Plan account, the Plan Agent may terminate such shareholder's participation in the Plan after written notice. Upon termination, shareholders will be sent a check for the cash value of any fractional share in the Plan account, less any applicable broker commissions and taxes.
Shareholders who hold at least one full share of the fund may join the Plan by notifying the Plan Agent by telephone, in writing or by visiting the Plan Agent's website at www.computershare.com/investor. If received in proper form by the Plan Agent before the record date of a dividend, the election will be effective with respect to all dividends paid after such record date. If shareholders wish to participate in the Plan and their shares are held in the name of a brokerage firm, bank or other nominee, shareholders should contact their nominee to see if it will participate in the Plan. If shareholders wish to participate in the Plan, but their brokerage firm, bank or other nominee is unable to participate on their behalf, they will need to request that their shares be re-registered in their own name, or they will not be able to participate. The Plan Agent will administer the Plan on the basis of the number of shares certified from time to time by shareholders as representing the total amount registered in their name and held for their account by their nominee.
Experience under the Plan may indicate that changes are desirable. Accordingly, the fund and the Plan Agent reserve the right to amend or terminate the Plan. Participants generally will receive written notice at least 90 days before the effective date of any amendment. In the case of termination, participants will receive written notice at least 90 days before the record date for the payment of any dividend or distribution by the fund.
Effective November 1, 2013, the Plan was revised to provide that Computershare Trust Company, N.A. no longer provides mail loss insurance coverage when shareholders mail their certificates to the fund's administrator.
All correspondence or requests for additional information about the Plan should be directed to Computershare Trust Company, N.A., at the address stated below, or by calling 800-852-0218, 201-680-6578 (For International Telephone Inquiries) and 800-952-9245 (For the Hearing Impaired (TDD)).
Shareholder communication and assistance
If you have any questions concerning the fund, we will be pleased to assist you. If you hold shares in your own name and not with a brokerage firm, please address all notices, correspondence, questions or other communications regarding the fund to the transfer agent at:
Regular Mail:
Computershare
P.O. Box 505000
Louisville, KY 40233
Registered or Overnight Mail:
Computershare
462 South 4th Street, Suite 1600
Louisville, KY 40202
If your shares are held with a brokerage firm, you should contact that firm, bank or other nominee for assistance.
Continuation of Investment Advisory and Subadvisory Agreements
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Tax-Advantaged Global Shareholder Yield Fund (the fund) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management, LLC (the Advisor, formerly John Hancock Advisers, LLC) and the Subadvisory Agreements (the Subadvisory Agreements) with Epoch Investment Partners, Inc. and Wells Capital Management Incorporated (formerly known as Analytic Investors, LLC) (collectively, the Subadvisors). The Advisory Agreement and Subadvisory Agreements are collectively referred to as the Agreements. Prior to the June23-26, 2019 in-person meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at an in-person meeting held on May28-30, 2019.
Approval of Advisory and Subadvisory Agreements
At in-person meetings held on June 23-26, 2019, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the fund under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the fund and the Advisor and the Subadvisory Agreements between the Advisor and the Subadvisors with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreements, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisors, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and other pertinent information, such as the market premium and discount information, and, with respect to the Subadvisors, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisors regarding the nature, extent and quality of services provided by the Advisor and the Subadvisors under their respective Agreements, as well as information regarding the Advisor's revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreements are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisors is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisors to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisors with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor's affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreements separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisors in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the fund and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements
and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board's conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board's ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor's compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the fund's Chief Compliance Officer (CCO) regarding the fund's compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund's compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisors, and is also responsible for monitoring and reviewing the activities of the Subadvisors and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
The Board also considered the differences between the Advisor's services to the fund and the services it provides to other clients that are not closed-end funds, including, for example, the differences in services related to the regulatory and legal obligations of closed-end funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor's management and the quality of the performance of the Advisor's duties, through Board meetings, discussions and reports during the preceding year and through each Trustee's experience as a Trustee of the fund and of the other funds in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the fund's affairs and its subadvisory relationships, the Advisor's oversight and monitoring of the Subadvisors' investment performance and compliance programs, such as the Subadvisors' compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor's timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor's personnel; |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance.In considering the fund's performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund's performance results. In connection with the consideration of the Advisory Agreement, the Board:
(a) | reviewed information prepared by management regarding the fund's performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; |
(d) | took into account the Advisor's analysis of the fund's performance; and |
(e) | considered the fund's share performance and premium/discount information. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that, based on its net asset value, the fund underperformed its benchmark index for the one-, three- five- and ten-year periods ended December 31, 2018. The Board also noted that, based on its net asset value, the fund outperformed its peer group average for the one-year period and underperformed its peer group average for the three-, five- and ten-year periods ended December 31, 2018. The Board took into account management's discussion of the fund's performance, including the impact of current market conditions on the fund's investment strategy and the favorable performance relative to the peer group for the one-year period. The Board concluded that the fund's performance is being monitored and reasonably addressed, where appropriate.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund's contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisors. The Board considered the fund's ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund's ranking within a broader group of
funds. In comparing the fund's contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees for the fund are lower than the peer group median and that net total expenses for the fund are lower than the peer group median.
The Board took into account management's discussion with respect to the overall management fee and the fees of the Subadvisors, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fees, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fees and that such fees are negotiated at arm's length with respect to the Subadvisors. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor's and Subadvisors' services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor's relationship with the fund, the Board:
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor's allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor's allocation methodologies; |
(e) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(f) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(g) | noted that the subadvisory fees for the fund are paid by the Advisor, and are negotiated at arm's length; |
(h) | considered the Advisor's ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(i) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which the fund may realize any economies of scale and whether fee levels reflect these economies of scale for the benefit of the fund shareholders, the Board noted that the fund has a
limited ability to increase its assets as a closed-end fund. The Board took into account management's discussions of the current advisory fee structure, and, as noted above, the services the Advisor provides in performing its functions under the Advisory Agreement and in supervising the Subadvisors.
The Board also considered potential economies of scale that may be realized by the fund as part of the John Hancock Fund Complex. Among them, the Board noted that the Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. The Board also considered the Advisor's overall operations and its ongoing investment in its business in order to expand the scale of, and improve the quality of, its operations that benefit the fund. The Board determined that the management fee structure for the fund was reasonable.
Approval of Subadvisory Agreements
In making its determination with respect to approval of the Subadvisory Agreements, the Board reviewed:
(1) | information relating to the Subadvisors' business, including current subadvisory services to the fund (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fees for the fund and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the fund's Advisor and the Subadvisors. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisors, the Board received information provided to the Board by the Subadvisors, including the Subadvisors' respective Form ADV, as well as took into account information presented throughout the past year. The Board considered each Subadvisor's current level of staffing and its overall resources, as well as received information relating to each Subadvisor's compensation program. The Board reviewed each Subadvisor's history and investment experience, as well as information regarding the qualifications, background, and responsibilities of each Subadvisor's investment and compliance personnel who provide services to the fund. The Board also considered, among other things, each Subadvisor's compliance program and any disciplinary history. The Board also considered each Subadvisor's risk assessment and monitoring process. The Board reviewed each Subadvisor's regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of each Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the fund's CCO and his staff conduct regular, periodic compliance reviews with each Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of each Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of each Subadvisor.
The Board considered each Subadvisor's investment process and philosophy. The Board took into account that each Subadvisor's responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund's investment objective, the selection of investment securities and the placement of orders for
the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to each Subadvisor's brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by each Subadvisor and the profitability to each Subadvisor of its relationship with the fund, the Board noted that the fees under each Subadvisory Agreement are paid by the Advisor and not the fund. The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreements and the fees thereunder at arm's length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisors from its relationship with the fund were not a material factor in the Board's consideration of Subadvisory Agreements.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and the Subadvisors) of any material relationships with respect to the Subadvisors, which include arrangements in which a Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreements.
In addition, the Board considered other potential indirect benefits that the Subadvisors and its affiliates may receive from the Subadvisors' relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays subadvisory fees to the Subadvisors. As noted above, the Board also considered the fund's subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisors with respect to the fund and compared them to fees charged by the Subadvisors to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund's performance as compared to the fund's peer group and the benchmark index and noted that the Board reviews information about the fund's performance results at its regularly scheduled meetings. The Board noted the Advisor's expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisors. The Board was mindful of the Advisor's focus on the Subadvisors' performance. The Board also noted the Subadvisors' long-term performance record for similar accounts, as applicable.
The Board's decision to approve the Subadvisory Agreements was based on a number of determinations, including the following:
(1) | the Subadvisors have extensive experience and demonstrated skills as a manager; |
(2) | the fund's performance, based on net asset value, is being monitored and reasonably addressed, where appropriate; and |
(3) | the subadvisory fees are reasonable in relation to the level and quality of services being provided under the Subadvisory Agreements. |
* * *
Based on the Board's evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreements would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreements for an additional one-year period.
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Hassell H. McClellan, Born: 1945 | 2012 | 207 |
Trustee and Chairperson of the Board Director/Trustee, Virtus Funds (since 2008); Director, The Barnes Group (since 2010); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. |
Charles L. Bardelis,2 Born: 1941 | 2012 | 207 |
Trustee Director, Island Commuter Corp. (marine transport). Trustee of various trusts within the John Hancock Fund Complex (since 1988). |
James R. Boyle,Born: 1959 | 2015 | 207 |
Trustee Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014-July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999-2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005-2010). Trustee of various trusts within the John Hancock Fund Complex (2005-2014 and since 2015). |
Peter S. Burgess,2 Born: 1942 | 2012 | 207 |
Trustee Consultant (financial, accounting, and auditing matters) (since 1999); Certified Public Accountant; Partner, Arthur Andersen (independent public accounting firm) (prior to 1999); Director, Lincoln Educational Services Corporation (since 2004); Director, Symetra Financial Corporation (2010-2016); Director, PMA Capital Corporation (2004-2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005). |
William H. Cunningham, Born: 1944 | 2007 | 207 |
Trustee Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009-2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986). |
Grace K. Fey, Born: 1946 | 2012 | 207 |
Trustee Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988-2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
Independent Trustees (continued)
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Deborah C. Jackson, Born: 1952 | 2008 | 207 |
Trustee President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women's Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); Board of Directors, Association of Independent Colleges and Universities of Massachusetts (2014-2017); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002-2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of American Student Assistance Corporation (1996-2009); Board of Directors of Boston Stock Exchange (2002-2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007-2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
James M. Oates,2Born: 1946 | 2012 | 207 |
Trustee Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000-2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997-2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995-2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex. |
Steven R. Pruchansky, Born: 1944 | 2007 | 207 |
Trustee and Vice Chairperson of the Board Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2014); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011-2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. |
Gregory A. Russo, Born: 1949 | 2008 | 207 |
Trustee Director and Audit Committee Chairman (since 2012), and Member, Audit Committee and Finance Committee (since 2011), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018) and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002-2006); Vice Chairman, Industrial Markets, KPMG (1998-2002); Chairman and Treasurer, Westchester County, New York, Chamber of Commerce (1986-1992); Director, Treasurer, and Chairman of Audit and Finance Committees, Putnam Hospital Center (1989-1995); Director and Chairman of Fundraising Campaign, United Way of Westchester and Putnam Counties, New York (1990-1995). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
Non-Independent Trustees3
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Andrew G. Arnott, Born: 1971 | 2017 | 207 |
President and Non-Independent Trustee Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). |
Marianne Harrison, Born: 1963 | 2018 | 207 |
Non-Independent Trustee President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013-2017); Member, Board of Directors, CAE Inc. (since 2019); Member, Board of Directors, MA Competitive Partnership Board (since 2018); Member, Board of Directors, American Council of Life Insurers (ACLI) (since 2018); Member, Board of Directors, Communitech, an industry-led innovation center that fosters technology companies in Canada (2017-2019); Member, Board of Directors, Manulife Assurance Canada (2015-2017); Board Member, St. Mary's General Hospital Foundation (2014-2017); Member, Board of Directors, Manulife Bank of Canada (2013-2017); Member, Standing Committee of the Canadian Life & Health Assurance Association (2013-2017); Member, Board of Directors, John Hancock USA, John Hancock Life & Health, John Hancock New York (2012-2013). Trustee of various trusts within the John Hancock Fund Complex (since 2018). |
Principal officers who are not Trustees
Name, year of birth Position(s) held with fund Principal occupation(s) during past 5 years | Officer of the Trust since |
Francis V. Knox, Jr.,Born: 1947 | 2005 |
Chief Compliance Officer Vice President, John Hancock Financial Services (since 2005); Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2005). |
Charles A. Rizzo, Born: 1957 | 2007 |
Chief Financial Officer Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). |
Salvatore Schiavone, Born: 1965 | 2010 |
Treasurer Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). |
Principal officers who are not Trustees (continued)
Name, year of birth Position(s) held with fund Principal occupation(s) during past 5 years | Officer of the Trust since |
Christopher (Kit) Sechler,Born: 1973 | 2018 |
Chief Legal Officer and Secretary Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015); Assistant Vice President and Senior Counsel (2009-2015), John Hancock Investment Management; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009). |
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
1 | Mr. Boyle, Mr. Cunningham, Ms. Fey, Mr. McClellan and Mr. Russo serve as Trustees for a term expiring in 2020; Mr. Bardelis, Mr. Burgess and Ms. Harrison serve as Trustees for a term expiring in 2021; Mr. Arnott, Ms. Jackson, Mr. Oates and Mr. Pruchansky serve as Trustees for a term expiring in 2022; Mr. Boyle has served as Trustee at various times prior to date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain of its affiliates. |
Trustees Hassell H. McClellan,Chairperson Officers Andrew G. Arnott Francis V. Knox, Jr. Charles A. Rizzo Salvatore Schiavone Christopher (Kit) Sechler | Investment advisor John Hancock Investment Management LLC Subadvisors Epoch Investment Partners, Inc. (Epoch) Portfolio Managers The Investment Team at Epoch and WellsCap Distributor John Hancock Investment Management Distributors LLC Custodian State Street Bank and Trust Company Transfer agent Computershare Shareowner Services, LLC Legal counsel K&L Gates LLP Independent registered public accounting firm PricewaterhouseCoopers LLP Stock symbol Listed New York Stock Exchange: HTY |
* Member of the Audit Committee
† Non-Independent Trustee
For shareholder assistance refer to page 6
You can also contact us: | |||
800-852-0218 jhinvestments.com | Regular mail: Computershare | Express mail: Computershare |
The fund's proxy voting policies and procedures, as well as the fund's proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund's holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund's Form N-PORT filings are available on our website and the SEC's website, sec.gov.
We make this information on your fund, as well asmonthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-852-0218.
The report is certified under the Sarbanes-Oxley Act, which requires closed-end funds and other public companies to affirm that, to the best of their knowledge, the information in their financial reports is fairly and accurately stated in all material respects.
John Hancock family of funds
DOMESTIC EQUITY FUNDS Blue Chip Growth Classic Value Disciplined Value Disciplined Value Mid Cap Equity Income Financial Industries Fundamental All Cap Core Fundamental Large Cap Core New Opportunities Regional Bank Small Cap Core Small Cap Growth Small Cap Value U.S. Global Leaders Growth U.S. Quality Growth GLOBAL AND INTERNATIONAL EQUITY FUNDS Disciplined Value International Emerging Markets Emerging Markets Equity Fundamental Global Franchise Global Equity Global Shareholder Yield Global Thematic Opportunities International Dynamic Growth International Growth International Small Company | INCOME FUNDS Bond California Tax-Free Income Emerging Markets Debt Floating Rate Income Government Income High Yield High Yield Municipal Bond Income Investment Grade Bond Money Market Short Duration Bond Short Duration Credit Opportunities Strategic Income Opportunities Tax-Free Bond ALTERNATIVE AND SPECIALTY FUNDS Absolute Return Currency Alternative Asset Allocation Alternative Risk Premia Disciplined Alternative Yield Diversified Macro Infrastructure Multi-Asset Absolute Return Seaport Long/Short |
The fund's investment objectives, risks, charges, and expenses are included in the prospectus and should be considered carefully before investing. For a prospectus, contact your financial professional, call John Hancock Investment Management at 800-852-0218, or visit the fund's website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
ASSET ALLOCATION Balanced Income Allocation Multi-Index Lifetime Portfolios Multi-Index Preservation Portfolios Multimanager Lifestyle Portfolios Multimanager Lifetime Portfolios Retirement Income 2040 EXCHANGE-TRADED FUNDS John Hancock Multifactor Consumer Discretionary ETF John Hancock Multifactor Consumer Staples ETF John Hancock Multifactor Developed International ETF John Hancock Multifactor Emerging Markets ETF John Hancock Multifactor Energy ETF John Hancock Multifactor Financials ETF John Hancock Multifactor Healthcare ETF John Hancock Multifactor Industrials ETF John Hancock Multifactor Large Cap ETF John Hancock Multifactor Materials ETF John Hancock Multifactor Media and John Hancock Multifactor Mid Cap ETF John Hancock Multifactor Small Cap ETF John Hancock Multifactor Technology ETF John Hancock Multifactor Utilities ETF | ENVIRONMENTAL, SOCIAL, AND ESG All Cap Core ESG Core Bond ESG International Equity ESG Large Cap Core CLOSED-END FUNDS Financial Opportunities Hedged Equity & Income Income Securities Trust Investors Trust Preferred Income Preferred Income II Preferred Income III Premium Dividend Tax-Advantaged Dividend Income Tax-Advantaged Global Shareholder Yield |
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed
from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP.
Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the
John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no
representation as to the advisability of investing in, John Hancock Multifactor ETFs.
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager
representing one of America's most trusted brands, with a heritage of
financial stewardship dating back to 1862. Helping our shareholders
pursue their financial goals is at the core of everything we do. It's why
we support the role of professional financial advice and operate with
the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide
a diverse set of investments backed by some of the world's best
managers, along with strong risk-adjusted returns across asset classes.
John Hancock Investment Management Distributors LLC n Member FINRA, SIPC
200 Berkeley Street n Boston, MA 02116-5010 n 800-225-5291 n jhinvestments.com
MF1003894 | P14A 10/19 12/19 |
ITEM 2. CODE OF ETHICS.
As of the end of the period, October 31, 2019, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the “Senior Financial Officers”). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Peter S. Burgess is the audit committee financial expert and is “independent”, pursuant to general instructions on Form N-CSR Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees for John Hancock Tax-Advantaged Global Shareholder Yield Fund billed for professional services rendered by the principal accountant(s) for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant(s) in connection with statutory and regulatory filings or engagements amounted to $41,524 for the fiscal year ended October 31, 2019 and $44,363 for the fiscal year ended October 31, 2018. These fees were billed to the registrant and were approved by the registrant’s audit committee.
(b) Audit-Related Services
The aggregate fees for John Hancock Tax-Advantaged Global Shareholder Yield Fund billed for audit-related fees amounted to $5 for the fiscal year ended October 31, 2019 and $0 for the fiscal year ended October 31, 2018 billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant ("control affiliates"). In addition, amounts billed to control affiliates for service provider internal controls reviews were $116,467 and $110,200 for the fiscal years ended October 31, 2019 and 2018, respectively.
(c) Tax Fees
The aggregate fees for John Hancock Tax-Advantaged Global Shareholder Yield Fund billed for professional services rendered by the principal accountant(s) for the tax compliance, tax advice and tax planning (“tax fees”) amounted to $3,837 for the fiscal year ended October 31, 2019 and $3,725 for the fiscal year ended October 31, 2018. The nature of the services comprising the tax fees was the review of the registrant’s tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant’s audit committee.
(d) All Other Fees
The all other fees for John Hancock Tax-Advantaged Global Shareholder Yield Fund billed to the registrant for products and services provided by the principal accountant were $84 for the fiscal year ended October 31, 2019 and $239 for the fiscal year ended October 31, 2018 billed to control affiliates for products and services provided by the principal accountant. These fees were approved by the registrant’s audit committee.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the “Auditor”) relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust’s Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of audit-related and non-audit services by the Auditor. The policies and procedures require that any audit-related and non-audit service provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per instance/per fund are subject to specific pre-approval by the Audit Committee. Tax services provided by the Auditor that are expected to exceed $30,000 per instance/per fund are subject to specific pre-approval by the Audit Committee.
All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal resolution of the Audit Committee. At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.
(e)(2) Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
Audit-Related Fees, Tax Fees and All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f) According to the registrant’s principal accountant, for the fiscal year ended October 31, 2019, the percentage of hours spent on the audit of the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons who were not full-time, permanent employees of principal accountant was less than 50%.
(g) The aggregate non-audit fees billed by the registrant's accountant(s) for services rendered to the registrant and rendered to the registrant's control affiliates for each of the last two fiscal years of the registrant were $$962,139 for the fiscal year ended October 31, 2019 and $2,064,999 for the fiscal year ended October 31, 2018.
(h) The audit committee of the registrant has considered the non-audit services provided by the registrant’s principal accountant(s) to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant(s)' independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant has a separately-designated standing audit committee comprised of independent trustees. The members of the audit committee are as follows:
Peter S. Burgess - Chairman
Charles L. Bardelis
Theron S. Hoffman
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) Not applicable.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
See attached exhibit - Proxy Voting Policies and Procedures.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Information about the Wells Capital Management Incorporated portfolio managers
Management Biographies
Below is an alphabetical list of the Wells Capital Management Incorporated (“WellsCap”) (portfolio managers who share joint responsibility for the implementation and execution of the Fund’s options strategy. It provides a brief summary of their business careers over the past five years. Information is provided as of October 31, 2019.
Dennis M. Bein, CFA
Chief Investment Officer and Portfolio Manager, Wells Capital Management Incorporated since 1995
Began business career in 1990
Managed the Fund since 2007
Harindra de Silva, Ph.D., CFA
President and Portfolio Manager, Wells Capital Management Incorporated since 1995
Began business career in 1984
Managed the Fund since 2007
Gregory M. McMurran
Chief Investment Officer and Portfolio Manager, Wells Capital Management Incorporated since 1976
Began business career in 1976
Managed the Fund since 2007
Megan N. Miller, CFA
Portfolio Manager, Wells Capital Management Incorporated since 2014
Began business career in 2008
Managed Fund since 2018
Other Accounts the Portfolio Managers are Managing
The table below indicates for each portfolio manager information about the accounts over which the portfolio manager has day-to-day investment responsibility. All information on the number of accounts and total assets in the table is as of October 31, 2019. For purposes of the table, “Other Pooled Investment Vehicles” may include investment partnerships and group trusts, and “Other Accounts” may include separate accounts for institutions or individuals, insurance company general or separate accounts, pension funds and other similar institutional accounts.
Registered Investment | Other Pooled | |||||
Companies | Investment Vehicles | Other Accounts | ||||
Number | Total | Number | Total | Number | Total | |
of | Assets | of | Assets | of | Assets | |
Accounts | $Million | Accounts | $Million | Accounts | $Million | |
Dennis M. Bein, CFA | 18 | 6,002.49 | 20 | 7,768.72 | 27 | 6,340.94 |
(0)* | (0) | (2)* | (169.89)* | (3)* | 427.28 | |
Harindra de Silva., PH.D., CFA | 18 | 6,002.49 | 21 | 7,793.09 | 31 | 6,431.06 |
(0)* | (0)* | (2)* | (169.89)* | (3)* | (427.28)* |
Registered Investment | Other Pooled | |||||
Companies | Investment Vehicles | Other Accounts | ||||
Number | Total | Number | Total | Number | Total | |
of | Assets | of | Assets | of | Assets | |
Accounts | $Million | Accounts | $Million | Accounts | $Million | |
Gregory M. McMurran | 2 | 225.00 | 1 | 24.37 | 0 | 0 |
(0)* | (0)* | (0)* | (0)* | (0)* | (0)* | |
Megan N. Miller, CFA | 2 | 225.00 | 1 | 24.37 | 0 | 0 |
(0)* | (0)* | (0)* | (0)* | (0)* | (0)* |
Note: (*) represents the number and value of accounts, within the total accounts that are subject to a performance-based advisory fee.
POTENTIAL CONFLICTS OF INTEREST
Wells Capital Management’s Portfolio Managers often provide investment management for separate accounts advised in the same or similar investment style as that provided to mutual funds. While management of multiple accounts could potentially lead to conflicts of interest over various issues such as trade allocation, fee disparities and research acquisition, Wells Capital Management has implemented policies and procedures for the express purpose of ensuring that clients are treated fairly and that potential conflicts of interest are minimized.
Wells Capital Management investment professionals have responsibilities for managing investments of multiple accounts with a common investment strategy, including other registered investment companies, unregistered investment vehicles, pension plans, separate accounts, collective trusts and charitable foundations. Potential conflicts of interest may arise when an investment professional has responsibilities for the investments of more than one account because, inter alia, the investment professional may be unable to devote equal time and attention to each account; other accounts may have higher fee arrangements and may also have a performance-based fee; the side-by-side management of these funds may raise potential conflicts of interest relating to cross trading, the allocation of investment opportunities and the aggregation and allocation of trades.
As an investment adviser, Wells Capital Management has fiduciary responsibilities to act in the best interests of its clients. Such duties include: reasonable and independent basis for its investment advice, seeking best price execution for clients' securities transactions, ensuring that the investment advice is suitable to the client's objectives, and refraining from engaging in personal securities transactions inconsistent with client interests. To minimize any potential client investment conflicts, Wells Capital Management manages its advisory services, fee structure, and investment selection process in accordance with pre-established client investment guidelines, the advisory contract with the client, and all applicable policies and procedures pursuant to Rule 206(4)-7 of the Advisers Act. Wells Capital Management has a fiduciary responsibility to manage all client accounts in a fair and equitable manner. It seeks to provide best execution of all securities transactions and aggregate and allocate securities to client accounts in a fair and timely manner. To this end, Wells Capital Management has developed policies and procedures designed to mitigate and manage the potential conflicts of interest that may arise from side-by-side management. In addition, Wells Capital Management has adopted policies limiting the circumstances under which cross-trades may be affected between the Portfolio and another client account. Wells Capital Management conducts periodic reviews of trades for consistency with these policies.
COMPENSATION
The compensation structure for Wells Capital Management's Portfolio Managers includes a competitive fixed base salary plus variable incentives, payable annually and over a longer term period. Wells Capital Management participates in third party investment management compensation surveys for market-based compensation information to help support individual pay decisions. In addition to surveys, Wells Capital Management also considers prior professional experience, tenure, seniority and a Portfolio Manager's team size, scope and assets under management when determining his/her fixed base salary.
In addition, Portfolio Managers, who meet the eligibility requirements, may participate in Wells Fargo's 401(k) plan that features a limited matching contribution. Eligibility for and participation in this plan is on the same basis for all employees. Wells Capital Management also contributes to other employee benefits such as health and disability plans and paid time off, and encourages and supports personal professional development. The compensation structure and incentive programs will continually evolve in order to provide career growth, pay increase opportunities, incentive payment plan rewards and to balance the overall needs of the organization and its employees. In addition, senior management at Wells Capital maintains an ongoing assessment of resources within each team to support portfolio management and research needs.
Wells Capital Management's investment incentive program plays an important role in aligning the interests of our portfolio managers, investment team members, clients and shareholders. Incentive awards for portfolio managers are determined based on a review of relative investment and business/team performance. Investment performance is generally evaluated for 1, 3, and 5 year performance results, with a predominant weighting on the 3- and 5- year time periods, versus the relevant benchmarks and/or peer groups consistent with the investment style. In the case of each Fund, the benchmark(s) against which the performance of the Fund's portfolio may be compared for these purposes generally are indicated in the "Average Annual Total Returns" table in the Prospectus. Once determined, incentives are awarded to portfolio managers annually, with a portion awarded as annual cash and a portion awarded as long term incentive. The long term portion of incentives generally carry a pro-rated vesting schedule over a three year period. For many of our portfolio managers, Wells Capital Management further requires a portion of their annual long-term award be allocated directly into each strategy they manage through a deferred compensation vehicle. In addition, our investment team members who are eligible for long term awards also have the opportunity to invest up to 100% of their awards into investment strategies they support (through a deferred compensation vehicle).
Share Ownership by Portfolio Managers. The following table indicates as of October 31, 2019 the value of shares beneficially owned by the portfolio managers in the Fund.
Range of | |
Beneficial | |
Ownership | |
in the | |
Portfolio Manager | Fund |
Dennis M. Bein, CFA | None |
Harindra de Silva, Ph.D., CFA | None |
Gregory M McMurran | None |
Megan N. Miller, CFA | None |
Information about the EPOCH portfolio managers
Management Biographies
Below is a list of the Epoch portfolio managers who share joint responsibility for the day-to-day investment management of the Fund. It provides a brief summary of their business careers over the past five years. Information is provided as of October 31, 2019.
William W. Priest, CFA
Founder, Chief Executive Officer, Co-Chief Investment Officer and Portfolio Manager,
Epoch Investment Partners, Inc. since 2004
Co-managing partner and portfolio manager
Began business career in 1965
Managed the Fund since 2007
Kera Van Valen, CFA
Managing Director, Portfolio Manager, and Senior Research Analyst
Epoch Investment Partners, Inc. since 2005
Began business career in 2001
Managed the Fund since 2014
John M. Tobin, Ph.D., CFA
Managing Director, Portfolio Manager, and Senior Research Analyst
Epoch Investment Partners, Inc. since 2012
Began business career in 1981
Managed the Fund since 2014
Michael A. Welhoelter, CFA
Managing Director, Co-CIO, Portfolio Manager, Head of Risk Management
Epoch Investment Partners, Inc. since 2005
Began business career in 1986
Managed the Fund since 2007
Other Accounts the Portfolio Managers are Managing
The table below indicates for each portfolio manager information about the accounts over which the portfolio manager has day-to-day investment responsibility. All information on the number of accounts and total assets in the table is as of October 31, 2019. For purposes of the table, “Other Pooled Investment Vehicles” may include investment partnerships and group trusts, and “Other Accounts” may include separate accounts for institutions or individuals, insurance company general or separate accounts, pension funds and other similar institutional accounts.
Registered Investment Companies | Other Pooled Investment Vehicles | Other Accounts | ||||
Number of Accounts | Total Assets $Million | Number of Accounts | Total Assets $Million | Number of Accounts | Total Assets $Million | |
William W. Priest, CFA | 10 | 8,129 | 30 | 13,148 | 95 | 8,340 |
(0)* | (0)* | (1)* | (46)* | (8)* | (771)* | |
Kera Van Valen, CFA | 7 | 6,968 | 15 | 4,630 | 19 | 3,823 |
(0)* | (0)* | (0)* | (0)* | (0)* | ($0)* | |
John M. Tobin, Ph.D., CFA | 7 | 6,968 | 15 | 4,630 | 19 | 3,823 |
(0)* | (0)* | (0)* | (0)* | (0)* | (0)* | |
Michael A. Welhoelter, CFA | 12 | 8,534 | 40 | 13,904 | 101 | 8,626 |
(0)* | (0)* | (1)* | (46)* | (8)* | (771)* |
Note: (*) represents the number and value of accounts, within the total accounts that are subject to a performance-based advisory fee.
POTENTIAL CONFLICTS OF INTEREST
In Epoch’s view, conflicts of interest may arise in managing the Fund’s portfolio investments, on the one hand, and the portfolios of Epoch’s other clients and/or accounts (together “Accounts”), on the other. Set forth below is a brief description of some of the material conflicts that may arise and Epoch’s policy or procedure for handling them. Although Epoch has designed such procedures to prevent and address conflicts, there is no guarantee that such procedures will detect every situation in which a conflict arises.
The management of multiple Accounts inherently means there may be competing interests for the portfolio management team’s time and attention. Epoch seeks to minimize this by utilizing one investment approach (i.e., classic value investing), and by managing all Accounts on a product specific basis. Thus, all large cap value Accounts, whether they be fund accounts, institutional accounts or individual accounts are managed using the same investment discipline, strategy and proprietary investment model as the Fund.
If the portfolio management team identifies a limited investment opportunity that may be suitable for more than one Account, the Fund may not be able to take full advantage of that opportunity. However, Epoch has adopted procedures for allocating portfolio transactions across Accounts so that each Account is treated fairly. First, all orders are allocated among portfolios of the same or similar mandates at the time of trade creation/ initial order preparation. Factors affecting allocations include availability of cash to existence of client imposed trading restrictions or prohibitions, and the tax status of the account. The only changes to the allocations made at the time of the creation of the order, are if there is a partial fill for an order. Depending upon the size of the execution, Epoch may choose to allocate the executed shares through pro-rata breakdown, or on a random basis. As with all trade allocations each Account generally receives pro rata allocations of any new issue or IPO security that is appropriate for its investment objective. Permissible reasons for excluding an account from an otherwise acceptable IPO or new issue investment include the account having FINRA restricted person status, lack of available cash to make the purchase, or a client imposed trading prohibition on IPOs or on the business of the issuer.
With respect to securities transactions for the Accounts, Epoch determines which broker to use to execute each order, consistent with its duty to seek best execution. Epoch will bunch or aggregate like orders where to do so will be beneficial to the Accounts. However, with respect to certain Accounts, Epoch may be limited by the client with respect to the selection of brokers or may be instructed to direct trades through a particular broker. In these cases, Epoch may place separate, non-simultaneous, transactions for the Fund and another Account, which may temporarily affect the market price of the security or the execution of the transaction to the detriment one or the other.
Conflicts of interest may arise when members of the portfolio management team transact personally in securities investments made or to be made for the Fund or other Accounts. To address this, Epoch has adopted a written Code of Ethics designed to prevent and detect personal trading activities that may interfere or conflict with client interests (including Fund shareholders’ interests) or its current investment strategy. The Code of Ethics generally requires that most transactions in securities by Epoch’s Access Persons and their spouses, whether or not such securities are purchased or sold on behalf of the Accounts, be cleared prior to execution by appropriate approving parties and compliance personnel. Securities transactions for Access Persons’ personal accounts also are subject to monthly reporting requirements, and annual and quarterly certification requirements. Access Person is defined to include persons who have access to non-public information about client securities transactions, portfolio recommendations or holdings, and thus covers all of Epoch’s full-time employees except those whose job functions are solely clerical. In addition, no access person, including an investment person, shall be permitted to effect a short term trade (i.e. to purchase and subsequently sell within 21 calendar days for single name single securities or 7 days for an EFT, or to sell and subsequently purchase within 21 calendar days) of securities which (i) are issued by a mutual fund which is advised or sub-advised by Epoch, or (ii) are the same (or equivalent) securities purchased or sold by or on behalf of the advisory accounts unless and until the advisory accounts have effected a transaction which is the same as the access person’s contemplated transaction. Finally, orders for proprietary accounts (i.e., accounts of a Sub-Advisor’s principals, affiliates or employees or their immediate family which are managed by Epoch) are subject to written trade allocation procedures designed to ensure fair treatment to client accounts.
Proxy voting for the Fund and the other Accounts’ securities holdings also may pose certain conflicts. Epoch has identified the following areas of concern: (1) Where Epoch manages the assets of a publicly traded company, and also holds that company’s or an affiliated company’s securities in one or more Accounts; (2) Where Epoch manages the assets of a proponent of a shareholder proposal for a company whose securities are in one or more Accounts; and (3) Where Epoch had a client relationship with an individual who is a corporate director, or a candidate for a corporate directorship of a public company whose securities are in one or more client portfolios. Epoch’s proxy policies provide for various methods of dealing with these and any other conflict scenarios subsequently identified, including notifying clients and seeking their consent or instructions on how to vote, and deferring to the recommendation of an independent third party where a conflict exists.
Epoch manages some Accounts under performance based fee arrangements. Epoch recognizes that this type of incentive compensation creates the risk for potential conflicts of interest. This structure may create an inherent pressure to allocate investments having a greater potential for higher returns to accounts of those clients paying the higher performance fee. To prevent conflicts of interest associated with managing accounts with different compensation structures, Epoch generally requires portfolio decisions to be made on a product specific basis. Epoch also requires pre-allocation of all client orders based on specific fee-neutral criteria set forth above. Additionally, Epoch requires average pricing of all aggregated orders. Finally, Epoch has adopted a policy prohibiting Portfolio Managers (and all employees) from placing the investment interests of one client or a group of clients with the same investment objectives above the investment interests of any other client or group of clients with the same or similar investment objectives.
COMPENSATION
Epoch seeks to maintain a compensation program that is competitively positioned to attract, retain and motivate all employees. Epoch employees receive a base salary and an annual performance bonus, which is reviewed and determined annually by Epoch’s Operating Committee with input from the employee's supervisor and Epoch’s Human Resources Department. The level of compensation for each employee is based on a number of factors including individual performance, firm performance and marketplace compensation analysis and information.
For senior employees, a portion of their annual performance bonus is deferred, typically with a three-year vesting schedule, and invested in Epoch-managed investment vehicles, Epoch Performance Units and TD Restricted Stock Units. In addition, Managing Directors are eligible to participate in Epoch’s Long-Term Incentive Plan, which is designed to reward superior long-term business performance over a multi-year period.
Investment team members are compensated based on the performance of their strategy, their Operating Committee reviews product performance, including risk-adjusted returns over one- and three-year periods in assessing an investment professional’s performance and compensation. Each portfolio manager and analyst’s security selection and weighting recommendations are also reviewed on an annual basis.
A portion of deferred compensation payable to senior employees is invested into Epoch managed vehicles and a portion is in the form of TD RSU’s, both of which will be subject to a three-year vesting schedule.
Share Ownership by Portfolio Managers. For purposes of these tables, “similarly managed accounts” include all accounts that are managed (i) by the same portfolio managers that are jointly and primarily responsible for the day-to-day management of the Fund; and (ii) with an investment style, objective, policies and strategies substantially similar to those that are used to manage the Fund.
Range of | ||
Beneficial | ||
Range of | Ownership in | |
Beneficial | Similarly | |
Ownership in | Managed | |
Portfolio Manager | the Fund | Accounts |
William W. Priest, CFA | $50,001 - $100,000 | None |
John M. Tobin, Ph.D., CFA | $0 - 50,000 | None |
Kera Van Valen, CFA | None | None |
Michael A. Welhoelter, CFA | None | $100,001 - $500,000 |
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) Not applicable.
(b)
Total number of | Maximum number of | |||
shares purchased | shares that may yet | |||
Total number of | Average price per | as part of publicly | be purchased under | |
Period | shares purchased | share | announced plans* | the plans |
Nov-18 | - | - | - | - |
Dec-18 | - | - | - | - |
Jan-19 | - | - | - | 1,104,444 * |
Feb-19 | - | - | - | 1,104,444 |
Mar-19 | - | - | - | 1,104,444 |
Apr-19 | - | - | - | 1,104,444 |
May-19 | 15,974 | $6.80 | 15,974 | 1,102,847 |
Jun-19 | 9,804 | 6.84 | 25,778 | 1,101,867 |
Jul-19 | 20,223 | 6.96 | 46,001 | 1,099,844 |
Aug-19 | 23,000 | 6.66 | 69,001 | 1,097,544 |
Sep-19 | 17,000 | 6.71 | 86,001 | 1,095,844 |
Oct-19 | 20,000 | 6.85 | 106,001 | 1,093,844 |
Total | 106,001 | 1,093,844 | ||
*In December 2018, the Board of Trustees approved a share repurchase plan. Under the current share repurchase plan, the Fund may purchase in the open market up to 10% of its outstanding common shares as of December 31, 2018. The current share plan will remain in effect between January 1, 2019 and December 31, 2019. |
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
(a) The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form N-CSR. See attached "John Hancock Funds – Nominating and Governance Committee Charter".
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) Code of Ethics for Senior Financial Officers is attached.
(a)(2) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
(b)(1) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and Rule 30a-2(b) under the Investment Company Act of 1940, are attached. The certifications furnished pursuant to this paragraph are not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certifications are not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates them by reference.
(c)(1) Proxy Voting Policies and Procedures are attached.
(c)(2) Submission of Matters to a Vote of Security Holders is attached. See attached “John Hancock Funds – Nominating and Governance Committee Charter.”
(c)(3) Registrant’s notice to shareholders pursuant to Registrant’s exemptive order granting an exemption from Section 19(b) of the Investment Company Act of 1940, as amended and Rule 19b-1 thereunder regarding distributions made pursuant to the Registrant’s Managed Distribution Plan.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Tax-Advantaged Global Shareholder Yield Fund
By: | /s/ Andrew Arnott |
Andrew Arnott | |
President | |
Date: | December 13, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Andrew Arnott |
Andrew Arnott | |
President | |
Date: | December 13, 2019 |
By: | /s/ Charles A. Rizzo |
Charles A. Rizzo | |
Chief Financial Officer | |
Date: | December 13, 2019 |