John Hancock Preferred Income Fund II

Frequently Asked Questions About HPF

What does HPF invest in?

Operating as a closed-end mutual fund focused on fixed-income assets, the John Hancock Preferred Income Fund II is overseen by John Hancock Investment Management LLC, with additional stewardship provided by John Hancock Asset Management. Its investment strategy is exclusively concentrated on U.S. fixed-income markets. The fund aims to allocate capital across a diverse array of companies spanning various industries. Its primary holdings include preferred value equities and convertible preferred instruments. Furthermore, it targets debt securities that carry an investment-grade rating or higher from either Moody's or Standard & Poor's. Performance is evaluated against two key benchmarks: the Bank of America Merrill Lynch Hybrid Preferred Securities Index and the Barclays U.S. Aggregate Bond Index. The fund commenced operations on November 29, 2002, and is legally based in the United States.

What is the expense ratio of HPF?

John Hancock Preferred Income Fund II (HPF) charges an expense ratio of 4.51%. This is the annual fee deducted from fund assets to cover management and operations.

What is HPF's dividend yield?

HPF's trailing-twelve-month yield is 11.57%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of HPF?

Effective duration measures HPF's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. HPF's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of HPF?

HPF's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of HPF?

Yield to maturity (YTM) is the total return you'd earn from HPF if every bond in the portfolio is held to maturity at the current price. HPF's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.