Date of fiscal year end: | October 31 |
Date of reporting period: | October 31, 2023 |
United States and Europe
Manulife Investment Management
John Hancock Investment Management
2 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | |
ANNUAL REPORT | | 3 |
TOP 10 HOLDINGS AS OF 10/31/2023 (% of net assets) | |
Broadcom, Inc. | 2.7 |
Microsoft Corp. | 2.4 |
IBM Corp. | 2.2 |
TotalEnergies SE | 2.1 |
AbbVie, Inc. | 1.8 |
Apple, Inc. | 1.8 |
Restaurant Brands International, Inc. | 1.7 |
Deutsche Telekom AG | 1.7 |
Coca-Cola Europacific Partners PLC | 1.7 |
Lazard, Ltd., Class A | 1.7 |
TOTAL | 19.8 |
Cash and cash equivalents are not included. |
TOP 10 COUNTRIES AS OF 10/31/2023 (% of net assets) | |
United States | 55.9 |
United Kingdom | 9.6 |
France | 7.4 |
Canada | 6.7 |
Germany | 5.9 |
Switzerland | 3.2 |
South Korea | 2.3 |
Japan | 1.8 |
Italy | 1.3 |
Taiwan | 1.0 |
TOTAL | 95.1 |
Cash and cash equivalents are not included. |
4 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | |
ANNUAL REPORT | | 5 |
Average annual total returns (%) | Cumulative total returns (%) | ||||
1-Year | 5-Year | 10-Year | 5-year | 10-Year | |
At Net asset value | 4.75 | 2.16 | 1.91 | 11.28 | 20.83 |
At Market price | -0.58 | 0.66 | -0.15 | 3.37 | -1.50 |
MSCI World Index | 10.48 | 8.27 | 7.53 | 48.75 | 106.74 |
6 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | |
ANNUAL REPORT | | 7 |
Shares | Value | ||||
Common stocks 97.6% | $51,892,738 | ||||
(Cost $55,264,114) | |||||
Austria 0.8% | 445,404 | ||||
BAWAG Group AG (A)(B) | 10,000 | 445,404 | |||
Canada 6.7% | 3,548,163 | ||||
BCE, Inc. | 12,900 | 478,884 | |||
Enbridge, Inc. | 14,400 | 461,465 | |||
Great-West Lifeco, Inc. | 10,700 | 296,444 | |||
Nutrien, Ltd. | 6,400 | 343,680 | |||
Restaurant Brands International, Inc. | 13,700 | 920,640 | |||
Rogers Communications, Inc., Class B | 7,800 | 288,995 | |||
Royal Bank of Canada | 4,000 | 319,481 | |||
TELUS Corp. | 27,200 | 438,574 | |||
France 7.4% | 3,925,165 | ||||
AXA SA | 26,500 | 785,206 | |||
Cie Generale des Etablissements Michelin SCA | 13,500 | 401,064 | |||
Orange SA | 43,400 | 510,473 | |||
Sanofi SA | 8,300 | 753,692 | |||
TotalEnergies SE | 16,600 | 1,109,834 | |||
Vinci SA | 3,300 | 364,896 | |||
Germany 5.9% | 3,148,625 | ||||
Allianz SE | 2,500 | 585,606 | |||
Bayer AG | 7,107 | 307,083 | |||
Deutsche Post AG | 15,700 | 612,983 | |||
Deutsche Telekom AG | 41,190 | 893,974 | |||
Muenchener Rueckversicherungs-Gesellschaft AG | 1,000 | 401,308 | |||
Siemens AG | 2,620 | 347,671 | |||
Ireland 0.9% | 479,808 | ||||
Medtronic PLC | 6,800 | 479,808 | |||
Italy 1.3% | 685,080 | ||||
Snam SpA | 149,400 | 685,080 | |||
Japan 1.8% | 955,044 | ||||
Astellas Pharma, Inc. | 29,800 | 376,966 | |||
NET One Systems Company, Ltd. | 16,900 | 257,943 | |||
Toyota Motor Corp. | 18,300 | 320,135 | |||
Norway 0.8% | 444,566 | ||||
Orkla ASA | 64,500 | 444,566 | |||
South Korea 2.3% | 1,203,947 | ||||
Hyundai Glovis Company, Ltd. | 2,800 | 355,350 |
8 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
South Korea (continued) | |||||
Samsung Electronics Company, Ltd., GDR (A) | 352 | $440,167 | |||
SK Telecom Company, Ltd. | 11,200 | 408,430 | |||
Switzerland 3.2% | 1,718,214 | ||||
Garmin, Ltd. | 2,800 | 287,084 | |||
Nestle SA | 3,000 | 323,516 | |||
Novartis AG | 8,803 | 824,133 | |||
Roche Holding AG | 1,100 | 283,481 | |||
Taiwan 1.0% | 535,122 | ||||
Taiwan Semiconductor Manufacturing Company, Ltd., ADR | 6,200 | 535,122 | |||
United Kingdom 9.6% | 5,072,288 | ||||
AstraZeneca PLC, ADR | 11,531 | 729,105 | |||
BAE Systems PLC | 32,600 | 438,351 | |||
British American Tobacco PLC | 23,300 | 696,027 | |||
Coca-Cola Europacific Partners PLC | 15,200 | 889,352 | |||
GSK PLC | 32,320 | 576,161 | |||
Imperial Brands PLC | 19,200 | 409,040 | |||
National Grid PLC | 40,350 | 481,092 | |||
Schroders PLC | 63,800 | 287,295 | |||
Unilever PLC | 11,948 | 565,865 | |||
United States 55.9% | 29,731,312 | ||||
AbbVie, Inc. | 6,800 | 960,024 | |||
Air Products & Chemicals, Inc. | 1,100 | 310,684 | |||
American Electric Power Company, Inc. | 7,600 | 574,104 | |||
Analog Devices, Inc. | 5,600 | 881,048 | |||
Apple, Inc. | 5,600 | 956,312 | |||
AT&T, Inc. | 30,047 | 462,724 | |||
Bank of America Corp. | 10,700 | 281,838 | |||
Best Buy Company, Inc. | 4,300 | 287,326 | |||
Bristol-Myers Squibb Company | 5,100 | 262,803 | |||
Broadcom, Inc. | 1,700 | 1,430,328 | |||
Chevron Corp. | 1,900 | 276,887 | |||
Cisco Systems, Inc. | 16,400 | 854,932 | |||
Columbia Banking System, Inc. | 16,800 | 330,456 | |||
Cummins, Inc. | 2,500 | 540,750 | |||
CVS Health Corp. | 4,000 | 276,040 | |||
Dell Technologies, Inc., Class C | 5,500 | 368,005 | |||
Dow, Inc. | 10,000 | 483,400 | |||
Duke Energy Corp. | 3,400 | 302,226 | |||
Eaton Corp. PLC | 2,800 | 582,148 | |||
Eli Lilly & Company | 800 | 443,144 | |||
Emerson Electric Company | 4,800 | 427,056 | |||
Entergy Corp. | 3,900 | 372,801 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | 9 |
Shares | Value | ||||
United States (continued) | |||||
Evergy, Inc. | 8,100 | $398,034 | |||
Hasbro, Inc. | 7,700 | 347,655 | |||
IBM Corp. | 7,900 | 1,142,656 | |||
Johnson & Johnson | 1,900 | 281,846 | |||
JPMorgan Chase & Co. | 4,408 | 612,976 | |||
KLA Corp. | 1,300 | 610,610 | |||
Lazard, Ltd., Class A | 32,000 | 888,640 | |||
Leggett & Platt, Inc. | 9,900 | 231,957 | |||
Linde PLC | 900 | 343,944 | |||
Lockheed Martin Corp. | 700 | 318,248 | |||
LyondellBasell Industries NV, Class A | 6,200 | 559,488 | |||
McDonald’s Corp. | 1,100 | 288,387 | |||
Merck & Company, Inc. | 4,300 | 441,610 | |||
MetLife, Inc. | 9,534 | 572,135 | |||
Microsoft Corp. | 3,766 | 1,273,322 | |||
MSC Industrial Direct Company, Inc., Class A | 7,200 | 682,200 | |||
NetApp, Inc. | 4,700 | 342,066 | |||
NextEra Energy, Inc. | 7,300 | 425,590 | |||
NiSource, Inc. | 16,800 | 422,688 | |||
Omnicom Group, Inc. | 3,800 | 284,658 | |||
Paychex, Inc. | 2,900 | 322,045 | |||
PepsiCo, Inc. | 1,800 | 293,904 | |||
Pfizer, Inc. | 11,800 | 360,608 | |||
Philip Morris International, Inc. | 8,900 | 793,524 | |||
Pinnacle West Capital Corp. | 4,100 | 304,138 | |||
Regions Financial Corp. | 18,700 | 271,711 | |||
RTX Corp. | 4,100 | 333,699 | |||
Texas Instruments, Inc. | 3,400 | 482,834 | |||
The Coca-Cola Company | 6,300 | 355,887 | |||
The Home Depot, Inc. | 1,000 | 284,690 | |||
The PNC Financial Services Group, Inc. | 2,500 | 286,175 | |||
The Williams Companies, Inc. | 9,300 | 319,920 | |||
Truist Financial Corp. | 10,800 | 306,288 | |||
U.S. Bancorp | 10,200 | 325,176 | |||
United Parcel Service, Inc., Class B | 2,200 | 310,750 | |||
UnitedHealth Group, Inc. | 800 | 428,448 | |||
Vail Resorts, Inc. | 1,300 | 275,925 | |||
Verizon Communications, Inc. | 12,500 | 439,125 | |||
VICI Properties, Inc. | 10,300 | 287,370 | |||
Walmart, Inc. | 2,300 | 375,843 | |||
WEC Energy Group, Inc. | 5,400 | 439,506 | |||
10 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Yield (%) | Shares | Value | |||
Short-term investments 0.6% | $289,240 | ||||
(Cost $289,240) | |||||
Short-term funds 0.6% | 289,240 | ||||
State Street Institutional Treasury Money Market Fund, Premier Class | 5.2942(C) | 289,240 | 289,240 |
Total investments (Cost $55,553,354) 98.2% | $52,181,978 | ||||
Other assets and liabilities, net 1.8% | 981,218 | ||||
Total net assets 100.0% | $53,163,196 |
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. | |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
(A) | 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. |
(B) | Non-income producing security. |
(C) | The rate shown is the annualized seven-day yield as of 10-31-23. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | 11 |
Assets | |
Unaffiliated investments, at value (Cost $55,553,354) | $52,181,978 |
Foreign currency, at value (Cost $479) | 477 |
Dividends and interest receivable | 593,768 |
Receivable for investments sold | 1,727,452 |
Other assets | 60,446 |
Total assets | 54,564,121 |
Liabilities | |
Payable for investments purchased | 1,180,655 |
Payable to affiliates | |
Accounting and legal services fees | 3,931 |
Trustees’ fees | 72 |
Other liabilities and accrued expenses | 216,267 |
Total liabilities | 1,400,925 |
Net assets | $53,163,196 |
Net assets consist of | |
Paid-in capital | $90,668,867 |
Total distributable earnings (loss) | (37,505,671) |
Net assets | $53,163,196 |
Net asset value per share | |
Based on 10,921,751 shares of beneficial interest outstanding - unlimited number of shares authorized with $0.01 par value | $4.87 |
12 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $4,082,595 |
Interest | 293 |
Less foreign taxes withheld | (216,152) |
Total investment income | 3,866,736 |
Expenses | |
Investment management fees | 530,440 |
Accounting and legal services fees | 12,264 |
Transfer agent fees | 17,969 |
Trustees’ fees | 48,869 |
Custodian fees | 24,769 |
Printing and postage | 27,211 |
Professional fees | 247,794 |
Stock exchange listing fees | 23,738 |
Other | 9,385 |
Total expenses | 942,439 |
Less expense reductions | (4,255) |
Net expenses | 938,184 |
Net investment income | 2,928,552 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | (190,473) |
(190,473) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (552,599) |
(552,599) | |
Net realized and unrealized loss | (743,072) |
Increase in net assets from operations | $2,185,480 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | 13 |
Year ended 10-31-23 | Year ended 10-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $2,928,552 | $3,240,675 |
Net realized loss | (190,473) | (7,174,497) |
Change in net unrealized appreciation (depreciation) | (552,599) | (1,803,430) |
Increase (decrease) in net assets resulting from operations | 2,185,480 | (5,737,252) |
Distributions to shareholders | ||
From earnings | (3,040,311) | (3,212,941) |
From tax return of capital | (3,949,610) | (3,775,778) |
Total distributions | (6,989,921) | (6,988,719) |
Fund share transactions | ||
Issued pursuant to Dividend Reinvestment Plan | — | 24,180 |
Total decrease | (4,804,441) | (12,701,791) |
Net assets | ||
Beginning of year | 57,967,637 | 70,669,428 |
End of year | $53,163,196 | $57,967,637 |
Share activity | ||
Shares outstanding | ||
Beginning of year | 10,921,751 | 10,917,997 |
Issued pursuant to Dividend Reinvestment Plan | — | 3,754 |
End of year | 10,921,751 | 10,921,751 |
14 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Period ended | 10-31-23 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 |
Per share operating performance | |||||
Net asset value, beginning of period | $5.31 | $6.47 | $5.78 | $7.61 | $7.63 |
Net investment income 1 | 0.27 | 0.30 | 0.32 | 0.36 | 0.42 |
Net realized and unrealized gain (loss) on investments | (0.07) | (0.82) | 1.01 | (1.55) | 0.19 |
Total from investment operations | 0.20 | (0.52) | 1.33 | (1.19) | 0.61 |
Less distributions | |||||
From net investment income | (0.28) | (0.29) | (0.32) | (0.35) | (0.42) |
From tax return of capital | (0.36) | (0.35) | (0.32) | (0.29) | (0.22) |
Total distributions | (0.64) | (0.64) | (0.64) | (0.64) | (0.64) |
Anti-dilutive impact of repurchase plan | — | — | — | — 2,3 | 0.01 3 |
Net asset value, end of period | $4.87 | $5.31 | $6.47 | $5.78 | $7.61 |
Per share market value, end of period | $4.10 | $4.71 | $6.37 | $4.75 | $6.93 |
Total return at net asset value (%) 4,5 | 4.75 | (8.16) | 23.93 | (14.79) | 9.45 |
Total return at market value (%) 4 | (0.58) | (17.26) | 48.48 | (23.10) | 10.06 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $53 | $58 | $71 | $63 | $83 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.60 | 1.38 | 1.42 | 1.32 | 1.35 |
Expenses including reductions | 1.59 | 1.37 | 1.42 | 1.31 | 1.34 |
Net investment income | 4.97 | 4.93 | 4.85 | 5.43 | 5.60 |
Portfolio turnover (%) | 308 | 311 | 302 | 301 | 260 |
1 | Based on average daily shares outstanding. |
2 | Less than $0.005 per share. |
3 | The repurchase plan was completed at an average repurchase price of $6.97 for 24,933 shares and $6.80 for 106,001 shares for the periods ended 10-31-20 and 10-31-19, respectively. |
4 | 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. |
5 | 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 |
16 | JOHN HANCOCK Tax-Advantaged Global Shareholder Yield Fund | ANNUAL REPORT |
Total value at 10-31-23 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Austria | $445,404 | — | $445,404 | — |
Canada | 3,548,163 | $3,548,163 | — | — |
France | 3,925,165 | — | 3,925,165 | — |
Germany | 3,148,625 | — | 3,148,625 | — |
Ireland | 479,808 | 479,808 | — | — |
Italy | 685,080 | — | 685,080 | — |
Japan | 955,044 | — | 955,044 | — |
Norway | 444,566 | — | 444,566 | — |
South Korea | 1,203,947 | 440,167 | 763,780 | — |
Switzerland | 1,718,214 | 287,084 | 1,431,130 | — |
Taiwan | 535,122 | 535,122 | — | — |
United Kingdom | 5,072,288 | 1,618,457 | 3,453,831 | — |
United States | 29,731,312 | 29,731,312 | — | — |
Short-term investments | 289,240 | 289,240 | — | — |
Total investments in securities | $52,181,978 | $36,929,353 | $15,252,625 | — |
ANNUAL REPORT | JOHN HANCOCK Tax-Advantaged Global Shareholder Yield Fund | 17 |
October 31, 2023 | October 31, 2022 | |
Ordinary income | $3,040,311 | $3,212,941 |
Return of capital | 3,949,610 | 3,775,778 |
Total | $6,989,921 | $6,988,719 |
18 | JOHN HANCOCK Tax-Advantaged Global Shareholder Yield Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Tax-Advantaged Global Shareholder Yield Fund | 19 |
20 | JOHN HANCOCK Tax-Advantaged Global Shareholder Yield Fund | ANNUAL REPORT |
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 |
24 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | 25 |
26 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | 27 |
Payment Date | Income Distributions |
December 30, 2022 | $0.1600 |
March 31, 2023 | 0.1600 |
June 30, 2023 | 0.1600 |
September 29, 2023 | 0.1600 |
Total | $0.6400 |
28 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | |
Shareholder Transaction Expenses | |
Sales load (as a percentage of offering price) 1 | — % |
Offering expenses (as a percentage of offering price) 1 | — % |
ANNUAL REPORT | | 29 |
Dividend Reinvestment Plan fees 2 | None |
Annual Expenses (Percentage of Net Assets Attributable to Common Shares) | |
Management fees 3 | 0.90 % |
Interest payments on borrowed funds | — % |
Other expenses | 0.70 % |
Total Annual Operating Expenses | 1.60 % |
Contractual Expense Reimbursement 4 | (0.01)% |
Total Annual Fund Operating Expenses After Expense Reimbursements | 1.59 % |
1 | If common s hares are sold to or through underwriters, the fund’s prospectus will set forth any applicable sales load and the estimated offering expenses. |
2 | Partici p ants in the fund’s dividend reinvestment plan do not pay brokerage charges with respect to common shares issued directly by the fund. However, whenever common 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. Shareholders participating in the Plan may buy additional common shares of the fund through the Plan at any time and will be charged a $5 transaction fee plus $0.05 per share brokerage trading fee for each order. See “Dividends and distributions” and “Dividend reinvestmentplan ”. |
3 | See "Note 4 – Fees and transactions with affiliates.” |
4 | The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds 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. During the year ended October 31, 2023, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2025, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time. |
1 Year | 3 Years | 5 Years | 10 Years | |
Total Expenses | $16 | $50 | $87 | $190 |
30 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | |
Market Price | NAV per Share on Data of Market Price High and Low | Premium/(Discount) on Date of Market Price High and Low | ||||
Fiscal Quarter Ended | High | Low | High | Low | High | Low |
January 31, 2022 | $6.74 | $6.11 | $6.60 | $6.32 | 2.12% | -3.32% |
April 30, 2022 | $6.85 | $6.05 | $6.40 | $6.06 | 7.03% | -0.17% |
July 31, 2022 | $6.21 | $5.05 | $6.27 | $5.49 | -0.96% | -8.01% |
October 31, 2022 | $5.54 | $4.36 | $5.91 | $4.95 | -6.26% | -11.92% |
January 31, 2023 | $5.26 | $4.63 | $5.63 | $5.33 | -6.57% | -13.13% |
April 30, 2023 | $5.50 | $4.70 | $5.70 | $5.21 | -3.51% | -9.79% |
July 31, 2023 | $4.87 | $4.49 | $5.47 | $5.30 | -10.97% | -15.28% |
October 31, 2023 | $4.79 | $4.04 | $5.48 | $4.80 | -12.59% | -15.83% |
Computershare
P.O. Box 43006
Providence, RI 02940-3078
ANNUAL REPORT | | 31 |
Computershare
150 Royall Street, Suite 101
Canton, MA 02021
32 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | |
ANNUAL REPORT | | 33 |
(a) | the skills and competency with which the Advisor has in the past managed the fund’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s 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; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
34 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the fund’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(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. |
ANNUAL REPORT | | 35 |
(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. |
36 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | |
(1) | information relating to the Subadvisor’s 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 Subadvisor. |
ANNUAL REPORT | | 37 |
(1) | the Subadvisor has 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 Agreement. |
38 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | |
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 since 1 | Number of John Hancock funds overseen by Trustee |
Hassell H. McClellan, 2 Born: 1945 | 2012 | 179 |
Trustee and Chairperson of the Board | ||
Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); 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. | ||
James R. Boyle, Born: 1959 | 2015 | 175 |
Trustee | ||
Board Member, United of Omaha Life Insurance Company (since 2022). Board Member, Mutual of Omaha Investor Services, Inc. (since 2022). Foresters Financial, Chief Executive Officer (2018–2022) and board member (2017–2022). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). | ||
William H. Cunningham, 3 Born: 1944 | 2007 | 177 |
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; Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986). | ||
Noni L. Ellison, Born: 1971 | 2022 | 175 |
Trustee | ||
Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (since 2021); General Counsel, Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C. (2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier) (2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–2023). Trustee of various trusts within the John Hancock Fund Complex (since 2022). | ||
Grace K. Fey, Born: 1946 | 2012 | 179 |
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). | ||
Dean C. Garfield, Born: 1968 | 2022 | 175 |
Trustee | ||
Vice President, Netflix, Inc. (since 2019); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017); Advisory Board Member of the Block Center for Technology and Society (since 2019). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
ANNUAL REPORT | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | 39 |
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 since 1 | Number of John Hancock funds overseen by Trustee |
Deborah C. Jackson, Born: 1952 | 2008 | 177 |
Trustee | ||
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); 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 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). | ||
Steven R. Pruchansky, Born: 1944 | 2007 | 175 |
Trustee and Vice Chairperson of the Board | ||
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); 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. | ||
Frances G. Rathke, 3 Born: 1960 | 2020 | 175 |
Trustee | ||
Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director and Audit Committee Chair, Planet Fitness (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020). | ||
Gregory A. Russo, Born: 1949 | 2008 | 175 |
Trustee | ||
Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), 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); Global Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
40 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT |
Non-Independent Trustees 4 | ||
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since 1 | Number of John Hancock funds overseen by Trustee |
Andrew G. Arnott, Born: 1971 | 2017 | 177 |
Non-Independent Trustee | ||
Global Head of Retail for Manulife (since 2022); Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (2018-2023); Director and Chairman, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); Director and Chairman, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (2007-2023, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). | ||
Paul Lorentz, Born: 1968 | 2022 | 175 |
Non-Independent Trustee | ||
Global Head, Manulife Wealth and Asset Management (since 2017); General Manager, Manulife, Individual Wealth Management and Insurance (2013–2017); President, Manulife Investments (2010–2016). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
Principal officers who are not Trustees | |
Name, year of birth Position(s) held with fund Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Kristie M. Feinberg, Born: 1975 | 2023 |
President | |
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2023); CFO and Global Head of Strategy, Manulife Investment Management (2021-2023, including prior positions); CFO Americas & Global Head of Treasury, Invesco, Ltd., Invesco US (2019-2020, including prior positions); Senior Vice President, Corporate Treasurer and Business Controller, Oppenheimer Funds (2001-2019, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2023). | |
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). |
ANNUAL REPORT | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | 41 |
Principal officers who are not Trustees (continued) | |
Name, year of birth Position(s) held with fund Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Christopher (Kit) Sechler, Born: 1973 | 2018 |
Secretary and Chief Legal Officer | |
Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). | |
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer | |
Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
1 | Ms. Ellison and Ms. Rathke serve as Trustees for a term expiring in 2024; Mr. Arnott, Mr. Garfield, Ms. Jackson, and Mr. Pruchansky serve as Trustees for a term expiring in 2025; Mr. Boyle, Dr. Cunningham, Ms. Fey, Mr. Lorentz, Dr. McClellan and Mr. Russo serve as Trustees for a term expiring in 2026; Mr. Boyle has served as Trustee at various times prior to date listed in the table. |
2 | Member of the Audit Committee as of September 26, 2023. |
3 | Member of the Audit Committee. |
4 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain of its affiliates. |
42 | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT |
James R. Boyle
William H. Cunningham
Grace K. Fey
Noni L. Ellison
Dean C. Garfield
Deborah C. Jackson
Paul Lorentz
Frances G. Rathke
Gregory A. Russo
Michael A. Welhoelter, CFA
John M. Tobin, Ph.D., CFA
Kera Van Valen, CFA
You can also contact us: | ||
800-852-0218 | Regular mail: | Express mail: |
jhinvestments.com | Computershare P.O. Box 43006 Providence, RI 02940-3078 | Computershare 150 Royall St., Suite 101 Canton, MA 02021 |
ANNUAL REPORT | JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND | 43 |
GOVERNANCE FUNDS
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.
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.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
MF3208664 | P14A 10/23 |
ITEM 2. CODE OF ETHICS.
As of the end of the period, October 31, 2023, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer, Principal Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Covered Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Frances G. Rathke 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 $46,490 for the fiscal year ended October 31, 2023 and $45,527 for the fiscal year ended October 31, 2022. 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 for audit- related fees amounted to $12 for the fiscal year ended October 31, 2023 and $5 for the fiscal year ended October 31, 2022. These fees were 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"). The nature of the services provided was related to a software licensing fee.
(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 $5,253 for the fiscal year ended October 31, 2023 and $4,110 for the fiscal year ended October 31, 2022. 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
All other fees for John Hancock Tax-Advantaged Global Shareholder Yield Fund billed to the registrant or control affiliates for products and services provided by the principal accountant were $0 for the fiscal year ended October 31, 2023 and $163 for the fiscal year ended October 31, 2022. The nature of the services comprising all other fees is advisory services provided to the investment manager. 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, 2023, 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 $1,354,703 for the fiscal year ended October 31, 2023 and $1,198,914 for the fiscal year ended October 31, 2022.
(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.
(i)Not applicable.
(j)Not applicable.
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:
Frances G. Rathke – Chairperson
William H. Cunningham
Hassell H. McClellan, effective September 26, 2023
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 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. The information provided is as of the filing date of this N-CSR.
William W. Priest, CFA*
Founder, Executive Chairman, 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
*As of March 31, 2024, William W. Priest, CFA will no longer serve as Portfolio Manager of the fund.
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
President, 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, 2023. 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 Investment |
| Other Accounts | |||||||
|
| Companies |
| Vehicles |
|
| |||||||
|
|
|
|
|
|
|
| ||||||
|
| Number of |
| Total |
| Number of |
|
| Total |
| Number of |
| Total |
|
|
| Assets |
|
|
| Assets |
|
| Assets | |||
|
| Accounts |
|
| Accounts |
|
|
| Accounts |
| |||
|
|
| $Million |
|
|
| $Million |
|
| $Million | |||
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
William W. |
| 7 |
| 4,501 |
| 28 |
|
| 7,530 |
| 57 |
| 4,279 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Priest, CFA |
| 0* |
| 0* |
| 1* |
|
| 47* |
| 7* |
| 429* |
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kera Van |
| 6 |
| 4,373 |
| 12 |
|
| 2,124 |
| 11 |
| 1,599 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Valen, CFA |
| 0* |
| 0* |
| 0* |
|
| 0* |
| 0* |
| 0* |
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
John M. |
| 6 |
| 4,373 |
| 12 |
|
| 2,124 |
| 11 |
| 1,599 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Tobin, Ph.D., |
|
|
|
|
|
|
|
|
|
|
|
|
|
CFA |
| 0* |
| 0* |
| 0* |
|
| 0* |
| 0* |
| 0* |
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michael A. |
| 8 |
| 4,694 |
| 38 |
|
| 9,826 |
| 60 |
| 4,377 |
Welhoelter, |
| 0* |
| 0* |
| 1* |
|
| 47* |
| 7* |
| 429* |
CFA |
|
|
|
|
|
|
|
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.
A portion of senior employees' annual performance bonus is deferred, typically with a three-year vesting schedule, and invested in Epoch-managed investment vehicles Units and TD Restricted Stock Units.
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.
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| Range of |
| Range of | Beneficial |
| Ownership in | |
| Beneficial | Similarly |
| Ownership in the | Managed |
Portfolio Manager | Fund | Accounts |
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|
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William W. Priest, CFA | $100,001–$500,000 | none |
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Kera Van Valen, CFA | none | $10,001–$50,000 |
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John M. Tobin, Ph.D., CFA | none | $10,001–$50,000 |
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Michael A. Welhoelter, CFA | none | $100,001–$500,000 |
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ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a)Not applicable.
|
|
| Total number of | Maximum number of |
| Total number of | Average price per | shares purchased | shares that may yet |
| as part of publicly | be purchased under | ||
Period | shares purchased | share | announced plans* | the plans* |
Nov-22 | - | - | - | 1,091,800 |
Dec-22 | - | - | - | 1,091,800 |
Jan-23 | - | - | - | 1,092,175 |
Feb-23 | - | - | - | 1,092,175 |
Mar-23 | - | - | - | 1,092,175 |
Apr-23 | - | - | - | 1,092,175 |
May-23 | - | - | - | 1,092,175 |
Jun-23 | - | - | - | 1,092,175 |
Jul-23 | - | - | - | 1,092,175 |
Aug-23 | - | - | - | 1,092,175 |
Sep-23 | - | - | - | 1,092,175 |
Oct-23 | - | - | - | 1,092,175 |
Total |
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*In December 31, 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, 2022. The current share plan will remain in effect between January 1, 2023 and December 31, 2023.
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.
(c)(1) Proxy Voting Policies and Procedures are attached.
(d) Exhibit 99. CONSENT - Consent of Independent Registered Public Accounting Firm
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/ Kristie M. Feinberg |
| ------------------------------ |
| Kristie M. Feinberg |
| President |
Date: | December 15, 2023 |
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/ Kristie M. Feinberg |
| ------------------------------ |
| Kristie M. Feinberg |
| President |
Date: | December 15, 2023 |
By: | /s/ Charles A. Rizzo |
| -------------------------------- |
| Charles A. Rizzo |
| Chief Financial Officer |
December 15, 2023 |