John Hancock Preferred Income Fund

Frequently Asked Questions About HPI

What does HPI invest in?

The John Hancock Preferred Income Fund operates as a closed-end, balanced mutual fund, managed by John Hancock Investment Management LLC, with additional oversight from John Hancock Asset Management. This U.S.-domiciled fund primarily invests in the public equity and fixed-income markets within the United States, seeking opportunities across a diverse range of corporate sectors. Its portfolio predominantly comprises preferred value stocks, convertible preferred securities, and investment-grade fixed-income instruments, which must hold an investment-grade rating or higher from Moody's or Standard & Poor's. The fund measures its performance against two industry benchmarks: the Bank of America Merrill Lynch Hybrid Preferred Securities Index and the Barclays U.S. Aggregate Bond Index. It was established on August 27, 2002.

What is the expense ratio of HPI?

John Hancock Preferred Income Fund (HPI) charges an expense ratio of 4.48%. This is the annual fee deducted from fund assets to cover management and operations.

What is HPI's dividend yield?

HPI's trailing-twelve-month yield is 9.47%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of HPI?

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

What is the credit quality of HPI?

HPI'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 HPI?

Yield to maturity (YTM) is the total return you'd earn from HPI if every bond in the portfolio is held to maturity at the current price. HPI'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.