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
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1 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 2 |
3 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT |
TOP 10 ISSUERS AS OF 10/31/2023 (% of total investments) | |
The PNC Financial Services Group, Inc. | 3.9 |
NextEra Energy, Inc. | 3.2 |
Wells Fargo & Company | 3.2 |
Bank of America Corp. | 3.1 |
Edison International | 2.9 |
Enbridge, Inc. | 2.7 |
Citigroup, Inc. | 2.7 |
Morgan Stanley | 2.5 |
BP PLC | 2.5 |
Duke Energy Corp. | 2.4 |
TOTAL | 29.1 |
Cash and cash equivalents are not included. |
COUNTRY COMPOSITION AS OF 10/31/2023 (% of total investments) | |
United States | 87.5 |
United Kingdom | 5.2 |
Canada | 4.6 |
France | 1.6 |
Bermuda | 1.1 |
TOTAL | 100.0 |
ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 4 |
5 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 6 |
Average annual total returns (%) | Cumulative total returns (%) | ||||
1-Year | 5-Year | 10-Year | 5-year | 10-Year | |
At Net asset value | -7.65 | 2.35 | 6.13 | 12.29 | 81.28 |
At Market price | -24.77 | -1.44 | 6.27 | -7.00 | 83.64 |
Primary Blended Index | -0.68 | 3.01 | 5.22 | 15.98 | 66.29 |
Secondary Blended Index | -0.97 | 2.85 | 5.27 | 15.07 | 67.12 |
7 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 8 |
Shares | Value | ||||
Common stocks 71.3% (42.0% of Total investments) | $371,354,867 | ||||
(Cost $372,029,053) | |||||
Communication services 7.1% | 37,170,472 | ||||
Diversified telecommunication services 7.1% | |||||
AT&T, Inc. (A) | 1,091,919 | 16,815,553 | |||
Verizon Communications, Inc. (A) | 579,417 | 20,354,919 | |||
Consumer staples 1.6% | 8,202,720 | ||||
Tobacco 1.6% | |||||
Philip Morris International, Inc. (A) | 92,000 | 8,202,720 | |||
Energy 11.9% | 61,871,415 | ||||
Oil, gas and consumable fuels 11.9% | |||||
BP PLC, ADR | 590,950 | 21,616,950 | |||
Enbridge, Inc. (A) | 281,200 | 9,009,648 | |||
Kinder Morgan, Inc. (A) | 1,164,001 | 18,856,817 | |||
ONEOK, Inc. (A) | 190,000 | 12,388,000 | |||
Financials 1.1% | 5,918,290 | ||||
Banks 1.1% | |||||
Columbia Banking System, Inc. (A) | 300,879 | 5,918,290 | |||
Real estate 1.9% | 9,654,485 | ||||
Specialized REITs 1.9% | |||||
Crown Castle, Inc. (A) | 103,834 | 9,654,485 | |||
Utilities 47.7% | 248,537,485 | ||||
Electric utilities 27.0% | |||||
American Electric Power Company, Inc. (A) | 160,000 | 12,086,400 | |||
Duke Energy Corp. (A)(B) | 185,000 | 16,444,650 | |||
Entergy Corp. (A) | 110,000 | 10,514,900 | |||
Evergy, Inc. (A) | 245,000 | 12,039,300 | |||
Eversource Energy (A) | 234,033 | 12,588,635 | |||
Exelon Corp. (A) | 230,000 | 8,956,200 | |||
FirstEnergy Corp. (A)(B) | 435,000 | 15,486,000 | |||
NextEra Energy, Inc. (A) | 88,081 | 5,135,122 | |||
OGE Energy Corp. (A)(B) | 530,000 | 18,126,000 | |||
Pinnacle West Capital Corp. (A) | 50,000 | 3,709,000 | |||
PPL Corp. (A)(B) | 660,000 | 16,216,200 | |||
The Southern Company (A) | 135,000 | 9,085,500 | |||
Gas utilities 3.7% | |||||
Spire, Inc. (A) | 200,000 | 11,126,000 | |||
UGI Corp. (A) | 395,000 | 8,216,000 |
9 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Utilities (continued) | |||||
Multi-utilities 17.0% | |||||
Algonquin Power & Utilities Corp. | 386,550 | $7,224,620 | |||
Black Hills Corp. (A) | 250,000 | 12,087,500 | |||
CenterPoint Energy, Inc. (A) | 380,181 | 10,219,265 | |||
Dominion Energy, Inc. (A) | 268,800 | 10,838,016 | |||
DTE Energy Company (A) | 105,000 | 10,119,900 | |||
National Grid PLC, ADR (A)(B) | 164,166 | 9,874,585 | |||
NiSource, Inc. (A) | 150,000 | 3,774,000 | |||
Public Service Enterprise Group, Inc. (A)(B) | 235,000 | 14,487,750 | |||
Sempra (A) | 145,394 | 10,181,942 | |||
Preferred securities (C) 39.1% (23.0% of Total investments) | $203,567,491 | ||||
(Cost $245,876,395) | |||||
Communication services 0.5% | 2,332,500 | ||||
Media 0.5% | |||||
Paramount Global, 5.750% | 150,000 | 2,332,500 | |||
Consumer discretionary 0.5% | 2,742,300 | ||||
Broadline retail 0.5% | |||||
QVC, Inc., 6.250% (A) | 330,000 | 2,742,300 | |||
Financials 23.4% | 122,005,269 | ||||
Banks 10.1% | |||||
Bank of America Corp., 7.250% | 6,000 | 6,319,200 | |||
Citigroup, Inc., 9.696% (3 month CME Term SOFR + 4.302%) (A)(D) | 240,650 | 6,160,640 | |||
Fulton Financial Corp., 5.125% (A) | 197,400 | 3,012,324 | |||
Huntington Bancshares, Inc., 6.875% (6.875% to 4-15-28, then 5 Year CMT + 2.704%) (A) | 261,075 | 5,782,811 | |||
JPMorgan Chase & Co., 6.000% (A) | 92,200 | 2,204,502 | |||
KeyCorp, 5.650% (A) | 98,925 | 1,513,553 | |||
KeyCorp, 6.200% (6.200% to 12-15-27, then 5 Year CMT + 3.132%) (A) | 134,275 | 2,243,735 | |||
Regions Financial Corp., 4.450% (A) | 221,105 | 3,267,932 | |||
Synovus Financial Corp., 9.011% (3 month CME Term SOFR + 3.614%) (A)(D) | 188,000 | 4,673,680 | |||
Truist Financial Corp., 4.750% (A) | 151,375 | 2,699,016 | |||
Wells Fargo & Company, 7.500% | 14,000 | 14,788,200 | |||
Capital markets 5.2% | |||||
Brookfield Finance, Inc., 4.625% (A) | 170,000 | 2,517,700 | |||
Carlyle Finance LLC, 4.625% (A) | 56,950 | 930,563 | |||
Morgan Stanley, 6.375% (A) | 344,227 | 8,096,219 | |||
Morgan Stanley, 6.500% (A) | 374,000 | 9,222,840 | |||
Morgan Stanley, 7.125% (A) | 205,075 | 5,147,383 | |||
State Street Corp., 5.350% | 38,175 | 834,887 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 10 |
Shares | Value | ||||
Financials (continued) | |||||
Capital markets (continued) | |||||
State Street Corp., 5.900% (5.900% to 3-15-24, then 9.008% thereafter) | 25,000 | $628,750 | |||
Financial services 2.2% | |||||
Apollo Global Management, Inc., 7.625% (7.625% to 12-15-28, then 5 Year CMT + 3.226%) (A) | 437,250 | 11,438,460 | |||
Insurance 5.9% | |||||
American Equity Investment Life Holding Company, 6.625% (6.625% to 9-1-25, then 5 Year CMT + 6.297%) (A) | 211,825 | 4,855,029 | |||
Athene Holding, Ltd., Series A, 6.350% (6.350% to 6-30-29, then 3 month LIBOR + 4.253%) (A) | 344,299 | 7,275,038 | |||
Brighthouse Financial, Inc., 6.600% (A) | 125,485 | 2,449,467 | |||
Enstar Group, Ltd., 7.000% (7.000% to 9-1-28, then 3 month LIBOR + 4.015%) (A) | 121,400 | 2,888,106 | |||
Lincoln National Corp., 9.000% (A) | 330,275 | 8,752,288 | |||
The Allstate Corp., 7.375% (A) | 166,975 | 4,302,946 | |||
Utilities 14.7% | 76,487,422 | ||||
Electric utilities 8.2% | |||||
Duke Energy Corp., 5.750% (A) | 199,700 | 4,581,118 | |||
NextEra Energy Capital Holdings, Inc., 5.650% (A) | 6,200 | 137,516 | |||
NextEra Energy, Inc., 6.926% | 381,350 | 14,315,879 | |||
NSTAR Electric Company, 4.250% (A) | 13,347 | 907,596 | |||
NSTAR Electric Company, 4.780% (A) | 100,000 | 7,575,000 | |||
SCE Trust II, 5.100% (A) | 566,770 | 9,941,146 | |||
SCE Trust VI, 5.000% (A) | 249,380 | 4,369,138 | |||
Union Electric Company, 3.700% (A) | 12,262 | 747,982 | |||
Gas utilities 1.4% | |||||
Spire, Inc., 5.900% (A) | 183,775 | 4,059,590 | |||
Spire, Inc., 7.500% | 77,057 | 3,392,049 | |||
Independent power and renewable electricity producers 2.3% | |||||
The AES Corp., 6.875% | 196,100 | 11,820,908 | |||
Multi-utilities 2.8% | |||||
Algonquin Power & Utilities Corp., 6.200% (6.200% to 7-1-24, then 3 month LIBOR + 4.010% to 7-1-29, then 3 month LIBOR + 4.260% to 7-1-49, then 3 month LIBOR + 5.010%) (A) | 300,000 | 7,377,000 | |||
NiSource, Inc., 6.500% (6.500% to 3-15-24, then 5 Year CMT + 3.632% to 3-15-44, then 5 Year CMT + 4.632%) (A) | 250,000 | 6,250,000 |
11 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Utilities (continued) | |||||
Multi-utilities (continued) | |||||
Sempra, 5.750% (A) | 45,000 | $1,012,500 | |||
Rate (%) | Maturity date | Par value^ | Value | ||
Corporate bonds 52.4% (30.9% of Total investments) | $272,880,699 | ||||
(Cost $312,929,684) | |||||
Communication services 1.7% | 9,015,265 | ||||
Media 1.7% | |||||
Paramount Global (6.375% to 3-30-27, then 5 Year CMT + 3.999% to 3-30-32, then 5 Year CMT + 4.249% to 3-30-47, then 5 Year CMT + 4.999%) | 6.375 | 03-30-62 | 12,250,000 | 9,015,265 | |
Consumer discretionary 2.6% | 13,540,660 | ||||
Automobiles 2.6% | |||||
General Motors Financial Company, Inc. (5.700% to 9-30-30, then 5 Year CMT + 4.997%) (E) | 5.700 | 09-30-30 | 9,250,000 | 7,767,816 | |
General Motors Financial Company, Inc. (6.500% to 9-30-28, then 3 month LIBOR + 3.436%) (A)(B)(E) | 6.500 | 09-30-28 | 7,046,000 | 5,772,844 | |
Energy 2.9% | 14,813,431 | ||||
Oil, gas and consumable fuels 2.9% | |||||
Enbridge, Inc. (6.250% to 3-1-28, then 3 month CME Term SOFR + 3.903% to 3-1-48, then 3 month CME Term SOFR + 4.653%) (A) | 6.250 | 03-01-78 | 10,000,000 | 8,758,449 | |
Enbridge, Inc. (7.375% to 1-15-28, then 5 Year CMT + 3.708% to 1-15-33, then 5 Year CMT + 3.958% to 1-15-48, then 5 Year CMT + 4.708%) (A) | 7.375 | 01-15-83 | 3,304,000 | 3,056,544 | |
Enbridge, Inc. (8.500% to 1-15-34, then 5 Year CMT + 4.431% to 1-15-54, then 5 Year CMT + 5.181%) (A) | 8.500 | 01-15-84 | 3,130,000 | 2,998,438 | |
Financials 40.3% | 209,911,826 | ||||
Banks 32.0% | |||||
Bank of America Corp. (5.875% to 3-15-28, then 3 month CME Term SOFR + 3.193%) (A)(E) | 5.875 | 03-15-28 | 7,000,000 | 6,027,000 | |
Bank of America Corp. (6.125% to 4-27-27, then 5 Year CMT + 3.231%) (A)(B)(E) | 6.125 | 04-27-27 | 15,500,000 | 14,573,412 | |
BNP Paribas SA (7.375% to 8-19-25, then 5 Year U.S. Swap Rate + 5.150%) (A)(B)(E) | 7.375 | 08-19-25 | 14,400,000 | 14,028,297 | |
Citigroup, Inc. (7.375% to 5-15-28, then 5 Year CMT + 3.209%) (A)(B)(E) | 7.375 | 05-15-28 | 8,095,000 | 7,720,846 | |
Citigroup, Inc. (7.625% to 11-15-28, then 5 Year CMT + 3.211%) (E) | 7.625 | 11-15-28 | 10,225,000 | 9,846,094 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 12 |
Rate (%) | Maturity date | Par value^ | Value | ||
Financials (continued) | |||||
Banks (continued) | |||||
Citizens Financial Group, Inc. (6.375% to 4-6-24, then 3 month CME Term SOFR + 3.419%) (A)(B)(E) | 6.375 | 04-06-24 | 2,500,000 | $2,032,880 | |
Citizens Financial Group, Inc. (3 month CME Term SOFR + 3.265%) (D)(E) | 8.687 | 01-06-24 | 18,000,000 | 15,296,844 | |
CoBank ACB (6.450% to 10-1-27, then 5 Year CMT + 3.487%) (A)(E) | 6.450 | 10-01-27 | 7,000,000 | 6,502,568 | |
Comerica, Inc. (5.625% to 10-1-25, then 5 Year CMT + 5.291%) (A)(B)(E) | 5.625 | 07-01-25 | 6,250,000 | 5,373,501 | |
HSBC Holdings PLC (6.500% to 3-23-28, then 5 Year ICE Swap Rate + 3.606%) (A)(E) | 6.500 | 03-23-28 | 5,000,000 | 4,394,455 | |
Huntington Bancshares, Inc. (5.625% to 7-15-30, then 10 Year CMT + 4.945%) (E) | 5.625 | 07-15-30 | 6,500,000 | 5,054,738 | |
Huntington Bancshares, Inc. (3 month CME Term SOFR + 3.142%) (A)(B)(D)(E) | 8.535 | 01-15-24 | 3,000,000 | 2,516,077 | |
JPMorgan Chase & Co. (6.750% to 2-1-24, then 3 month CME Term SOFR + 4.042%) (A)(B)(E) | 6.750 | 02-01-24 | 7,334,000 | 7,328,433 | |
KeyCorp (5.000% to 9-15-26, then 3 month CME Term SOFR + 3.868%) (E) | 5.000 | 09-15-26 | 4,253,000 | 2,832,715 | |
Lloyds Banking Group PLC (7.500% to 6-27-24, then 5 Year U.S. Swap Rate + 4.760%) (E) | 7.500 | 06-27-24 | 9,750,000 | 9,502,073 | |
M&T Bank Corp. (3.500% to 9-1-26, then 5 Year CMT + 2.679%) (E) | 3.500 | 09-01-26 | 9,600,000 | 6,419,592 | |
The PNC Financial Services Group, Inc. (3.400% to 9-15-26, then 5 Year CMT + 2.595%) (A)(E) | 3.400 | 09-15-26 | 4,900,000 | 3,525,753 | |
The PNC Financial Services Group, Inc. (6.000% to 5-15-27, then 5 Year CMT + 3.000%) (A)(E) | 6.000 | 05-15-27 | 11,285,000 | 9,459,765 | |
The PNC Financial Services Group, Inc. (6.200% to 9-15-27, then 5 Year CMT + 3.238%) (A)(E) | 6.200 | 09-15-27 | 12,680,000 | 11,281,211 | |
The PNC Financial Services Group, Inc. (6.250% to 3-15-30, then 7 Year CMT + 2.808%) (A)(E) | 6.250 | 03-15-30 | 9,100,000 | 7,489,307 | |
The PNC Financial Services Group, Inc. (3 month CME Term SOFR + 3.940%) (A)(B)(D)(E) | 9.312 | 11-01-23 | 2,185,000 | 2,185,000 | |
Wells Fargo & Company (5.900% to 6-15-24, then 3 month LIBOR + 3.110%) (E) | 5.900 | 06-15-24 | 2,000,000 | 1,966,610 | |
Wells Fargo & Company (7.625% to 9-15-28, then 5 Year CMT + 3.606%) (E) | 7.625 | 09-15-28 | 11,301,000 | 11,315,657 | |
Capital markets 3.6% | |||||
The Charles Schwab Corp. (5.000% to 6-1-27, then 5 Year CMT + 3.256%) (A)(E) | 5.000 | 06-01-27 | 4,389,000 | 3,466,385 | |
The Charles Schwab Corp. (5.375% to 6-1-25, then 5 Year CMT + 4.971%) (A)(B)(E) | 5.375 | 06-01-25 | 2,800,000 | 2,658,763 |
13 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Financials (continued) | |||||
Capital markets (continued) | |||||
The Goldman Sachs Group, Inc. (7.500% to 2-10-29, then 5 Year CMT + 3.156%) (E) | 7.500 | 02-10-29 | 12,857,000 | $12,609,540 | |
Consumer finance 1.0% | |||||
Discover Financial Services (6.125% to 9-23-25, then 5 Year CMT + 5.783%) (A)(B)(E) | 6.125 | 06-23-25 | 5,500,000 | 5,078,774 | |
Insurance 3.7% | |||||
Markel Group, Inc. (6.000% to 6-1-25, then 5 Year CMT + 5.662%) (E) | 6.000 | 06-01-25 | 7,000,000 | 6,767,663 | |
SBL Holdings, Inc. (6.500% to 11-13-26, then 5 Year CMT + 5.620%) (E)(F) | 6.500 | 11-13-26 | 10,000,000 | 5,640,477 | |
SBL Holdings, Inc. (7.000% to 5-13-25, then 5 Year CMT + 5.580%) (E)(F) | 7.000 | 05-13-25 | 11,549,000 | 7,017,396 | |
Utilities 4.9% | 25,599,517 | ||||
Electric utilities 3.8% | |||||
Edison International (5.000% to 3-15-27, then 5 Year CMT + 3.901% to 3-15-32, then 5 Year CMT + 4.151% to 3-15-47, then 5 Year CMT + 4.901%) (E) | 5.000 | 12-15-26 | 4,650,000 | 4,138,323 | |
Edison International (5.375% to 3-15-26, then 5 Year CMT + 4.698%) (E) | 5.375 | 03-15-26 | 8,000,000 | 7,169,374 | |
NextEra Energy Capital Holdings, Inc. (3 month CME Term SOFR + 2.387%) (A)(D) | 7.796 | 06-15-67 | 10,000,000 | 8,596,267 | |
Multi-utilities 1.1% | |||||
Dominion Energy, Inc. (4.350% to 4-15-27, then 5 Year CMT + 3.195%) (E) | 4.350 | 01-15-27 | 7,000,000 | 5,695,553 | |
Capital preferred securities (G) 1.4% (0.8% of Total investments) | $7,117,651 | ||||
(Cost $9,141,705) | |||||
Financials 1.4% | 7,117,651 | ||||
Insurance 1.4% | |||||
MetLife Capital Trust IV (7.875% to 12-15-37, then 3 month LIBOR + 3.960%) (A)(F) | 7.875 | 12-15-67 | 6,990,000 | 7,117,651 | |
Yield (%) | Shares | Value | |||
Short-term investments 5.6% (3.3% of Total investments) | $29,154,284 | ||||
(Cost $29,155,516) | |||||
Short-term funds 5.6% | 29,154,284 | ||||
John Hancock Collateral Trust (H) | 5.5153(I) | 2,916,420 | 29,154,284 |
Total investments (Cost $969,132,353) 169.8% | $884,074,992 | ||||
Other assets and liabilities, net (69.8%) | (363,477,966) | ||||
Total net assets 100.0% | $520,597,026 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 14 |
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 |
CME | Chicago Mercantile Exchange |
CMT | Constant Maturity Treasury |
ICE | Intercontinental Exchange |
LIBOR | London Interbank Offered Rate |
SOFR | Secured Overnight Financing Rate |
(A) | All or a portion of this security is pledged as collateral pursuant to the Liquidity Agreement. Total collateral value at 10-31-23 was $594,736,257. A portion of the securities pledged as collateral were loaned pursuant to the Liquidity Agreement. The value of securities on loan amounted to $112,343,354. |
(B) | All or a portion of this security is on loan as of 10-31-23, and is a component of the fund’s leverage under the Liquidity Agreement. |
(C) | Includes preferred stocks and hybrid securities with characteristics of both equity and debt that pay dividends on a periodic basis. |
(D) | Variable rate obligation. The coupon rate shown represents the rate at period end. |
(E) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. |
(F) | 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. |
(G) | Includes hybrid securities with characteristics of both equity and debt that trade with, and pay, interest income. |
(H) | Investment is an affiliate of the fund, the advisor and/or subadvisor. |
(I) | The rate shown is the annualized seven-day yield as of 10-31-23. |
15 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Interest rate swaps | ||||||||||
Counterparty (OTC)/ Centrally cleared | Notional amount | Currency | Payments made | Payments received | Fixed payment frequency | Floating payment frequency | Maturity date | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value |
Centrally cleared | 187,000,000 | USD | Fixed 3.662% | USD SOFR Compounded OIS (a) | Semi-Annual | Quarterly | May 2026 | — | $3,906,197 | $3,906,197 |
Centrally cleared | 93,000,000 | USD | Fixed 3.473% | USD SOFR Compounded OIS (a) | Semi-Annual | Quarterly | May 2026 | — | 2,454,035 | 2,454,035 |
— | $6,360,232 | $6,360,232 |
(a) | At 10-31-23, the overnight SOFR was 5.350%. |
Derivatives Currency Abbreviations | |
USD | U.S. Dollar |
Derivatives Abbreviations | |
OIS | Overnight Index Swap |
OTC | Over-the-counter |
SOFR | Secured Overnight Financing Rate |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 16 |
Assets | |
Unaffiliated investments, at value (Cost $939,976,837) | $854,920,708 |
Affiliated investments, at value (Cost $29,155,516) | 29,154,284 |
Total investments, at value (Cost $969,132,353) | 884,074,992 |
Receivable for centrally cleared swaps | 5,211,006 |
Dividends and interest receivable | 4,938,615 |
Receivable for investments sold | 3,735,165 |
Other assets | 237,643 |
Total assets | 898,197,421 |
Liabilities | |
Liquidity agreement | 373,700,000 |
Payable for investments purchased | 1,632,251 |
Interest payable | 1,937,219 |
Payable to affiliates | |
Administrative services fees | 75,953 |
Trustees’ fees | 759 |
Other liabilities and accrued expenses | 254,213 |
Total liabilities | 377,600,395 |
Net assets | $520,597,026 |
Net assets consist of | |
Paid-in capital | $600,857,245 |
Total distributable earnings (loss) | (80,260,219) |
Net assets | $520,597,026 |
Net asset value per share | |
Based on 49,185,225 shares of beneficial interest outstanding - unlimited number of shares authorized with no par value | $10.58 |
17 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $34,497,930 |
Interest | 18,351,439 |
Dividends from affiliated investments | 781,149 |
Less foreign taxes withheld | (250,290) |
Total investment income | 53,380,228 |
Expenses | |
Investment management fees | 7,658,885 |
Interest expense | 20,886,481 |
Administrative services fees | 968,256 |
Transfer agent fees | 99,275 |
Trustees’ fees | 51,334 |
Custodian fees | 77,129 |
Printing and postage | 92,549 |
Professional fees | 186,516 |
Stock exchange listing fees | 47,778 |
Other | 26,364 |
Total expenses | 30,094,567 |
Less expense reductions | (76,238) |
Net expenses | 30,018,329 |
Net investment income | 23,361,899 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 23,511,333 |
Affiliated investments | 4,299 |
Futures contracts | 1,767,826 |
Swap contracts | 3,647,776 |
28,931,234 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | (100,524,467) |
Affiliated investments | 457 |
Futures contracts | (2,799,573) |
Swap contracts | 6,360,232 |
(96,963,351) | |
Net realized and unrealized loss | (68,032,117) |
Decrease in net assets from operations | $(44,670,218) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 18 |
Year ended 10-31-23 | Year ended 10-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $23,361,899 | $35,285,384 |
Net realized gain | 28,931,234 | 20,077,718 |
Change in net unrealized appreciation (depreciation) | (96,963,351) | (109,947,904) |
Decrease in net assets resulting from operations | (44,670,218) | (54,584,802) |
Distributions to shareholders | ||
From earnings | (48,362,463) | (57,179,674) |
From tax return of capital | (6,202,768) | — |
Total distributions | (54,565,231) | (57,179,674) |
Fund share transactions | ||
Issued in shelf offering | 394,292 | 2,659,431 |
Issued pursuant to Dividend Reinvestment Plan | 794,202 | 1,806,330 |
Total from fund share transactions | 1,188,494 | 4,465,761 |
Total decrease | (98,046,955) | (107,298,715) |
Net assets | ||
Beginning of year | 618,643,981 | 725,942,696 |
End of year | $520,597,026 | $618,643,981 |
Share activity | ||
Shares outstanding | ||
Beginning of year | 49,091,976 | 48,800,759 |
Issued in shelf offering | 29,487 | 183,557 |
Issued pursuant to Dividend Reinvestment Plan | 63,762 | 107,660 |
End of year | 49,185,225 | 49,091,976 |
19 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Cash flows from operating activities | |
Net decrease in net assets from operations | $(44,670,218) |
Adjustments to reconcile net decrease in net assets from operations to net cash provided by operating activities: | |
Long-term investments purchased | (230,241,420) |
Long-term investments sold | 245,640,960 |
Net purchases and sales of short-term investments | 7,090,418 |
Net amortization of premium (discount) | 1,576,135 |
(Increase) Decrease in assets: | |
Receivable for futures variation margin | 156,430 |
Receivable for centrally cleared swaps | (5,211,006) |
Collateral held at broker for futures contracts | 1,220,000 |
Dividends and interest receivable | 7,828 |
Receivable for investments sold | (3,653,967) |
Other assets | 13,363 |
Increase (Decrease) in liabilities: | |
Payable for investments purchased | 1,632,251 |
Interest payable | 622,339 |
Payable to affiliates | (5,513) |
Other liabilities and accrued expenses | (35,705) |
Net change in unrealized (appreciation) depreciation on: | |
Investments | 100,524,010 |
Net realized (gain) loss on: | |
Investments | (23,521,977) |
Proceeds received as return of capital | 1,883,514 |
Net cash provided by operating activities | $53,027,442 |
Cash flows provided by (used in) financing activities | |
Distributions to shareholders | $(53,771,029) |
Fund shares issued in shelf offering | 613,951 |
Net cash used in financing activities | $(53,157,078) |
Net decrease in cash | $(129,636) |
Cash at beginning of year | $129,636 |
Cash at end of year | — |
Supplemental disclosure of cash flow information: | |
Cash paid for interest | $(20,264,142) |
Noncash financing activities not included herein consists of reinvestment of distributions | $794,202 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 20 |
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 | $12.60 | $14.88 | $12.84 | $15.74 | $14.33 |
Net investment income 1 | 0.48 | 0.72 | 0.83 | 0.83 | 0.72 |
Net realized and unrealized gain (loss) on investments | (1.39) | (1.83) | 2.40 | (2.53) | 1.89 |
Total from investment operations | (0.91) | (1.11) | 3.23 | (1.70) | 2.61 |
Less distributions | |||||
From net investment income | (0.98) | (1.17) | (1.17) | (1.17) | (1.17) |
From net realized gain | — | — | (0.02) | (0.03) | (0.03) |
From tax return of capital | (0.13) | — | — | — | — |
Total distributions | (1.11) | (1.17) | (1.19) | (1.20) | (1.20) |
Premium from shares sold through shelf offering | — 2 | — 2 | — | — | — |
Net asset value, end of period | $10.58 | $12.60 | $14.88 | $12.84 | $15.74 |
Per share market value, end of period | $9.57 | $13.99 | $17.27 | $12.55 | $17.69 |
Total return at net asset value (%) 3,4 | (7.65) | (8.30) | 25.56 | (10.89) | 18.52 |
Total return at market value (%) 3 | (24.77) | (12.28) | 49.09 | (22.55) | 22.04 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $521 | $619 | $726 | $625 | $764 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 5.07 | 2.42 | 1.82 | 2.32 | 3.01 |
Expenses including reductions 5 | 5.06 | 2.41 | 1.81 | 2.31 | 3.00 |
Net investment income | 3.93 | 5.08 | 5.78 | 6.07 | 4.79 |
Portfolio turnover (%) | 26 | 16 | 17 | 24 | 18 |
Senior securities | |||||
Total debt outstanding end of period (in millions) | $374 | $374 | $374 | $374 | $384 |
Asset coverage per $1,000 of debt 6 | $2,393 | $2,655 | $2,943 | $2,672 | $2,992 |
1 | Based on average daily shares outstanding. |
2 | Less than $0.005 per share. |
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. |
5 | Expenses including reductions excluding interest expense were 1.54%, 1.39%, 1.41%, 1.48% and 1.41% for the periods ended 10-31-23, 10-31-22, 10-31-21, 10-31-20 and 10-31-19, respectively. |
6 | Asset coverage equals the total net assets plus borrowings divided by the borrowings of the fund outstanding at period end (Note 8). As debt outstanding changes, the level of invested assets may change accordingly. Asset coverage ratio provides a measure of leverage. |
21 | JOHN HANCOCK Premium Dividend Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
ANNUAL REPORT | JOHN HANCOCK Premium Dividend Fund | 22 |
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 | $371,354,867 | $371,354,867 | — | — |
Preferred securities | ||||
Communication services | 2,332,500 | 2,332,500 | — | — |
Consumer discretionary | 2,742,300 | 2,742,300 | — | — |
Financials | 122,005,269 | 122,005,269 | — | — |
Utilities | 76,487,422 | 64,772,391 | $11,715,031 | — |
Corporate bonds | 272,880,699 | — | 272,880,699 | — |
Capital preferred securities | 7,117,651 | — | 7,117,651 | — |
Short-term investments | 29,154,284 | 29,154,284 | — | — |
Total investments in securities | $884,074,992 | $592,361,611 | $291,713,381 | — |
Derivatives: | ||||
Assets | ||||
Swap contracts | $6,360,232 | — | $6,360,232 | — |
23 | JOHN HANCOCK Premium Dividend Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Premium Dividend Fund | 24 |
October 31, 2023 | October 31, 2022 | |
Ordinary income | $26,599,790 | $43,932,151 |
Long-term capital gains | 21,762,673 | 13,247,523 |
Return of capital | 6,202,768 | — |
Total | $54,565,231 | $57,179,674 |
25 | JOHN HANCOCK Premium Dividend Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Premium Dividend Fund | 26 |
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value |
Interest rate | Swap contracts, at value 1 | Interest rate swaps | $6,360,232 | — |
1 | Reflects cumulative value of swap contracts. Receivable/payable for centrally cleared swaps, which includes value and margin, are shown separately on the Statement of assets and liabilities. |
Statement of operations location - Net realized gain (loss) on: | |||
Risk | Futures contracts | Swap contracts | Total |
Interest rate | $1,767,826 | $3,647,776 | $5,415,602 |
Statement of operations location - Change in net unrealized appreciation (depreciation) of: | |||
Risk | Futures contracts | Swap contracts | Total |
Interest rate | $(2,799,573) | $6,360,232 | $3,560,659 |
27 | JOHN HANCOCK Premium Dividend Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Premium Dividend Fund | 28 |
• | the likelihood of greater volatility of NAV and market price of shares; |
• | fluctuations in the interest rate paid for the use of the LA; |
• | increased operating costs, which may reduce the fund’s total return; |
• | the potential for a decline in the value of an investment acquired through leverage, while the fund’s obligations under such leverage remains fixed; and |
• | the fund is more likely to have to sell securities in a volatile market in order to meet asset coverage or other debt compliance requirements. |
29 | JOHN HANCOCK Premium Dividend Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Premium Dividend Fund | 30 |
Dividends and distributions | |||||||||
Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value |
John Hancock Collateral Trust | 2,916,420 | $21,901,844 | $216,552,807 | $(209,305,123) | $4,299 | $457 | $781,149 | — | $29,154,284 |
31 | JOHN HANCOCK Premium Dividend Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 32 |
33 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 34 |
35 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 36 |
37 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 38 |
Payment Date | Income Distributions |
November 30, 2022 | $0.0975 |
December 30, 2022 | 0.0975 |
January 31, 2023 | 0.0975 |
Feburary 28, 2023 | 0.0975 |
March 31, 2023 | 0.0975 |
April 28, 2023 | 0.0975 |
May 31, 2023 | 0.0975 |
June 30, 2023 | 0.0975 |
July 31, 2023 | 0.0825 |
August 31, 2023 | 0.0825 |
September 29, 2023 | 0.0825 |
October 31, 2023 | 0.0825 |
Total | $1.1100 |
39 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 40 |
Senior securities | 10-31-18 | 10-31-17 | 10-31-16 | 10-31-15 | 10-31-14 |
Total debt outstanding end of period (in millions) | $384 | $384 | $384 | $384 | $384 |
Asset coverage per $1,000 of debt | $2,811 | $3,009 | $3,035 | $2,909 | $2,994 |
Shareholder Transaction Expenses | |
Sales load (as a percentage of offering price) 1 | —% |
Offering expenses (as a percentage of offering price) 1 | —% |
Dividend Reinvestment Plan fees 2 | None |
Annual Expenses (Percentage of Net Assets Attributable to Common Shares) | |
Management fees 3 | 1.29% |
Interest payments on borrowed funds 4 | 3.52% |
Other expenses | 0.26% |
Total Annual Operating Expenses | 5.07% |
Contractual Expense Reimbursement 5 | (0.01)% |
Total Annual Fund Operating Expenses After Expense Reimbursements | 5.06% |
1 | If common shares are sold to or through underwriters, the fund’s prospectus will set forth any applicable sales load and the estimated offering expenses. |
2 | Participants 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 reinvestment plan”. |
3 | See "Note 5 – Fees and transactions with affiliates .” |
4 | The fund uses leverage by borrowing under a liquidity agreement. “Interest payments on borrowed funds” includes all interest paid in connection with outstanding loans. See “Note 8 - “Liquidity Agreement.” |
5 | 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 thatthis is appropriate under the circumstances at that time. |
41 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT |
1 Year | 3 Years | 5 Years | 10 Years | |
Total Expenses | $51 | $152 | $253 | $505 |
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 | $17.55 | $15.69 | $14.70 | $14.75 | 19.39% | 6.37% |
April 30, 2022 | $17.10 | $14.83 | $14.84 | $14.35 | 15.23% | 3.34% |
July 31, 2022 | $15.87 | $12.95 | $14.78 | $12.70 | 7.37% | 1.97% |
ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 42 |
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 |
October 31, 2022 | $16.23 | $12.96 | $14.65 | $12.15 | 10.78% | 6.67% |
January 31, 2023 | $14.20 | $12.72 | $12.95 | $12.84 | 9.65% | -0.93% |
April 30, 2023 | $13.39 | $11.81 | $13.69 | $11.31 | -2.19% | 4.42% |
July 31, 2023 | $12.57 | $11.10 | $12.13 | $11.25 | 3.63% | -1.33% |
October 31, 2023 | $11.14 | $8.97 | $11.94 | $10.41 | -6.70% | -13.83% |
Computershare
P.O. Box 43006
Providence, RI 02940-3078
Computershare
150 Royall Street, Suite 101
Canton, MA 02021
43 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 44 |
(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; |
45 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT |
(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 fund 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 | JOHN HANCOCK PREMIUM DIVIDEND FUND | 46 |
(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 fund’s Subadvisor is an affiliate of the Advisor; |
(g) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(h) | noted that the subadvisory fees for the fund are paid by the Advisor; |
(i) | 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 |
(j) | 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 it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
47 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT |
(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; and |
(3) | the subadvisory fee for the fund and to the extent available, comparable fee information prepared by an independent third party provider of fund data. |
ANNUAL REPORT | JOHN HANCOCK PREMIUM DIVIDEND FUND | 48 |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the fund’s performance, based on net asset value, has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index over the longer term; and |
(3) | the subadvisory fees are reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement. |
49 | JOHN HANCOCK PREMIUM DIVIDEND FUND | ANNUAL REPORT |
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 | 1994 | 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 PREMIUM DIVIDEND FUND | 50 |
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 | 1992 | 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). |
51 | JOHN HANCOCK PREMIUM DIVIDEND 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 PREMIUM DIVIDEND FUND | 52 |
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. |
53 | JOHN HANCOCK PREMIUM DIVIDEND 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
James Gearhart, CFA
Jonas Grazulis, CFA
Caryn E. Rothman, 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 PREMIUM DIVIDEND FUND | 54 |
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.
MF3208645 | P2A 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 Premium Dividend 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 $47,032 for the fiscal year ended October 31, 2023 and $46,045 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 Premium Dividend 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 Premium Dividend 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 Premium Dividend 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 portfolio managers
Management Biographies
Below is a list of the Manulife Investment Management (US) LLC ("Manulife IM (US)") 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.
Joseph H. Bozoyan, CFA
Managing Director and Portfolio Manager
Manulife Investment Management (US) LLC since 2015
Began business career in 1993
Managed the Fund since 2015
James Gearhart, CFA
Managing Director and Associate Portfolio Manager
Manulife Investment Management (US) LLC since 2022
Managed the Fund since 2022
Began business career in 2011
Jonas Grazulis, CFA
Managing Director and Associate Portfolio Manager
Manulife Investment Management (US) LLC since 2022
Managed the Fund since 2022
Began business career in 2011
Caryn E. Rothman, CFA
Managing Director and Portfolio Manager
Manulife Investment Management (US) LLC since 1996
Managed the Fund since 2022
Began business career in 1996
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.
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Joseph H. |
| 5 |
| 2,914 |
| 2 |
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| 248 |
| 1 |
| 33 |
Bozoyan, CFA |
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James Gearhart, |
| 7 |
| 4,175 |
| 11 |
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| 1,732 |
| 1 |
| 33 |
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Jonas Grazulis, |
| 7 |
| 4,175 |
| 11 |
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| 1,732 |
| 1 |
| 33 |
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Caryn E. |
| 8 |
| 4,284 |
| 13 |
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| 2,364 |
| 4 |
| 299 |
Rothman, CFA |
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Number and value of accounts within the total accounts that are subject to a performance-based advisory fee: 0
Conflicts of Interest. When a portfolio manager is responsible for the management of more than one account, the potential arises for the portfolio manager to favor one account over another. The principal types of potential conflicts of interest that may arise are discussed below. For the reasons outlined below, the Fund does not believe that any material conflicts are likely to arise out of a portfolio manager's responsibility for the management of the Fund as well as one or more other accounts. The Advisor and Subadvisor have adopted procedures that are intended to monitor compliance with the policies referred to in the following paragraphs. Generally, the risks of such conflicts of interests are increased to the extent that a portfolio manager has a financial incentive to favor one account over another. The Advisor and Subadvisor have structured their compensation arrangements in a manner that is intended to limit such potential for conflicts of interests. See "Compensation of Portfolio Managers" below.
•A portfolio manager could favor one account over another in allocating new investment opportunities that have limited supply, such as initial public offerings and private placements. If, for example, an initial public offering that was expected to appreciate in value significantly shortly after the offering was allocated to a single account, that account may be expected to have better investment performance than other accounts that did not receive an allocation on the initial public offering. The Subadvisor has policies that require a portfolio manager to allocate such investment opportunities in an equitable manner and generally to allocate such investments proportionately among all accounts with similar investment objectives.
•A portfolio manager could favor one account over another in the order in which trades for the accounts are placed. If a portfolio manager determines to purchase a security for more than one account in an aggregate amount that may influence the market price of the security, accounts that purchased or sold the security first may receive a more favorable price than accounts that made subsequent transactions. The less liquid the market for the security or the greater the percentage that the proposed aggregate purchases or sales represent of average daily trading volume, the greater the potential for accounts that make subsequent purchases or sales to receive a less favorable price. When a portfolio manager intends to trade the same security for more than one account, the policies of the Subadvisor generally require that such trades be "bunched," which means that the trades for the individual accounts are aggregated and each account receives the same price. There are some types of accounts as to which bunching may not be possible for contractual reasons (such as directed brokerage arrangements). Circumstances may also arise where the trader believes that bunching the orders may not result in the best possible price. Where those accounts or circumstances are involved, the Subadvisor will place the order in a manner intended to result in as favorable a price as possible for such client.
•A portfolio manager could favor an account if the portfolio manager's compensation is tied to the performance of that account rather than all accounts managed by the portfolio manager. If, for example, the portfolio manager receives a bonus based upon the performance of certain accounts relative to a benchmark while other accounts are disregarded for this purpose, the portfolio manager will have a financial incentive to seek to have the accounts that determine the portfolio manager's bonus achieve the best possible performance to the possible detriment of other accounts. Similarly, if the Subadvisor receives a performance-based advisory fee, the portfolio manager may favor that account, whether or not the performance of that account directly determines the portfolio manager's compensation. The investment performance on specific accounts is not a factor in determining the portfolio manager's compensation. See "Compensation of Portfolio Managers" below. Neither the Advisor nor the Subadvisor receives a performance-based fee with respect to any of the accounts managed by the portfolio managers.
•A portfolio manager could favor an account if the portfolio manager has a beneficial interest in the account, in order to benefit a large client or to compensate a client that had poor returns. For example, if the portfolio manager held an interest in an investment partnership that was one of the accounts managed by the portfolio manager, the portfolio manager would have an economic incentive to favor the account in which the portfolio manager held an interest. The Subadvisor imposes certain trading restrictions and reporting requirements for accounts in which a portfolio manager or certain family members have a personal interest in order to confirm that such accounts are not favored over other accounts.
•If the different accounts have materially and potentially conflicting investment objectives or strategies, a conflict of interest may arise. For example, if a portfolio manager purchases a security for one account and sells the same security short for another account, such trading pattern could disadvantage either the account that is long or short. In making portfolio manager assignments, the Subadvisor seeks to avoid such potentially conflicting situations. However, where a portfolio manager is responsible for accounts with differing investment objectives and policies, it is possible that the portfolio manager will conclude that it is in the best interest of one account to sell a portfolio security while another account continues to hold or increase the holding in such security.
Compensation of Portfolio Managers. The Subadvisor has adopted a system of compensation for portfolio managers and others involved in the investment process that is applied systematically among investment professionals. At the Subadvisor, the structure of compensation of investment professionals is currently composed of the following basic components: base salary and short- and long-term incentives. The following describes each component of the compensation package for the individuals identified as a portfolio manager for the Funds.
•Base salary. Base compensation is fixed and normally reevaluated on an annual basis. The Subadvisor seeks to set compensation at market rates, taking into account the experience and responsibilities of the investment professional.
•Incentives. Only investment professionals are eligible to participate in the short-and long-term incentive plan. Under the plan, investment professionals are eligible for an annual cash award. The plan is intended to provide a competitive level of annual
bonus compensation that is tied to the investment professional achieving superior investment performance and aligns the financial incentives of the Subadvisor and the investment professional. Any bonus under the plan is completely discretionary, with a maximum annual bonus that may be well in excess of base salary. Payout of a portion of this bonus may be deferred for up to five years. While the amount of any bonus is discretionary, the following factors are generally used in determining bonuses under the plan:
•Investment Performance: The investment performance of all accounts managed by the investment professional over one, three and five-year periods are considered, and no specific benchmark is used to measure performance. With respect to fixed income accounts, relative yields are also used to measure performance.
•Financial Performance: The profitability of the Subadvisor and its parent company are also considered in determining bonus awards.
•Non-Investment Performance: To a lesser extent, intangible contributions, including the investment professional's support of client service and sales activities, new fund/strategy idea generation, professional growth and development, and management, where applicable, are also evaluated when determining bonus awards.
•In addition to the above, compensation may also include a revenue component for an investment team derived from a number of factors including, but not limited to, client assets under management, investment performance, and firm metrics.
•Manulife Equity Awards. A limited number of senior investment professionals may receive options to purchase shares of Manulife Financial stock. Generally, such option would permit the investment professional to purchase a set amount of stock at the market price on the date of grant. The option can be exercised for a set period (normally a number of years or until termination of employment) and the investment professional would exercise the option if the market value of Manulife Financial stock increases. Some investment professionals may receive restricted stock grants, where the investment professional is entitled to receive the stock at no or nominal cost, provided that the stock is forgone if the investment professional's employment is terminated prior to a vesting date.
•Deferred Incentives. Investment professionals may receive deferred incentives which are fully invested in strategies managed by the team/individuals as well as other Manulife Asset Management strategies.
The Subadvisor also permits investment professionals to participate on a voluntary basis in a deferred compensation plan, under which the investment professional may elect on an annual basis to defer receipt of a portion of their compensation until retirement. Participation in the plan is voluntary.
Share Ownership by Portfolio Managers. The following table indicates as of October 31, 2023, the value of shares beneficially owned by the portfolio managers in the Fund.
| Range of |
| Beneficial |
| Ownership in the |
Portfolio Manager | Fund |
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Joseph H. Bozoyan, CFA | $10,001–$50,000 |
James Gearhart, CFA | $10,001–$50,000 |
Jonas Grazulis, CFA | none |
Caryn E. Rothman, CFA | $1–$10,000 |
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a)Not applicable.
REGISTRANT PURCHASES OF EQUITY SECURITIES
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| Maximum |
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| Total number of | number of shares |
| Total number of | Average price per | shares purchased | that may yet be |
| as part of publicly | purchased under | ||
Period | shares purchased | share | announced plans* | the plans* |
Nov-22 | - | - | - | 4,881,744 |
Dec-22 | - | - | - | 4,881,744 |
Jan-23 | - | - | - | 4,913,810 |
Feb-23 | - | - | - | 4,913,810 |
Mar-23 | - | - | - | 4,913,810 |
Apr-23 | - | - | - | 4,913,810 |
May-23 | - | - | - | 4,913,810 |
Jun-23 | - | - | - | 4,913,810 |
Jul-23 | - | - | - | 4,913,810 |
Aug-23 | - | - | - | 4,913,810 |
Sep-23 | - | - | - | 4,913,810 |
Oct-23 | - | - | - | 4,913,810 |
Total | - | - | - |
|
*On December 17, 2014, the Board of Trustees approved a share repurchase program, which is subsequently reviewed by the Board of Trustees each year in December. Under the share repurchase program, the Fund may purchase in the open market, up to 10% of its outstanding common shares as of December 31, 2022. The current share repurchase plan
will remain in effect between January 1, 2023 to 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.
The Fund did not participate directly in securities lending activities. See Note 8 to financial statements in Item 1.
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 Premium Dividend 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
Date: December 15, 2023