JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND NOTICE TO SHAREHOLDERS - SOURCES OF DISTRIBUTION UNDER SECTION 19(a)

Rhea-AI Summary

John Hancock Financial Opportunities Fund (NYSE: BTO) has announced its quarterly distribution of $0.6500 per share for December 2024. The distribution breakdown includes: 15% from net investment income ($0.0948), 7% from short-term capital gains ($0.0480), and 78% from long-term capital gains ($0.5072). The fund's performance metrics show a 10.19% average annual return over 5 years and a 34.58% cumulative total return for the fiscal year through November 30, 2024. The current annualized distribution rate is 6.74% of NAV. The fund operates under a managed distribution plan, making fixed quarterly distributions of $0.6500 per share.

Positive

• Strong cumulative total return of 34.58% for the fiscal year through November 30, 2024
• Solid 5-year average annual return of 10.19%
• 78% of distribution comes from realized long-term capital gains
• Consistent quarterly distribution of $0.6500 per share maintained

Negative

• 4% of fiscal year-to-date distributions represented return of capital
• Net investment income represents only 15% of current distribution

Insights

Financial Distribution Analyst

This quarterly distribution announcement from John Hancock Financial Opportunities Fund contains several noteworthy elements. The fund distributed $0.65 per share with 78% coming from long-term capital gains, indicating strong portfolio performance. The fund's 34.58% cumulative total return through November 2024 demonstrates robust performance. The 6.74% annualized distribution rate relative to NAV represents an attractive yield in the current market environment. The distribution composition, with 15% from net investment income and 7% from short-term gains, suggests effective income generation and portfolio management strategies. Notably, there's no return of capital in this current distribution, which is positive as it means the distribution is fully supported by actual earnings and gains.

Investment Portfolio Strategist

The fund's 10.19% five-year average annual return reflects consistent long-term performance. The substantial portion of long-term capital gains in the distribution ($0.5072 per share) suggests successful execution of the fund's investment strategy in the financial sector. The managed distribution plan's fixed quarterly payment of $0.65 provides predictability for investors while maintaining sustainability, as evidenced by the distribution coverage from genuine earnings rather than return of capital. This structured approach to distributions, combined with strong performance metrics, indicates effective portfolio management and alignment with income-focused investor objectives.

BOSTON, Dec. 31, 2024 /PRNewswire/ - John Hancock Financial Opportunities Fund (NYSE: BTO) (the "Fund"), a closed-end fund managed by John Hancock Investment Management LLC and subadvised by Manulife Investment Management (US) LLC, announced today sources of its quarterly distribution of $0.6500 per share paid to all shareholders of record as of December 12, 2024, pursuant to the Fund's managed distribution plan. This press release is issued as required by an exemptive order granted to the Fund by the U.S. Securities and Exchange Commission.  

Notification of Sources of Distribution

This notice provides shareholders of the John Hancock Financial Opportunities Fund (NYSE: BTO) with important information concerning the distribution declared on December 2, 2024, and payable on December 31, 2024. No action is required on your part.

Distribution Period:                                                                        December 2024

Distribution Amount Per Common Share:                                     $0.6500

The following table sets forth the estimated sources of the current distribution, payable December 31, 2024, and the cumulative distributions paid this fiscal year to date from the following sources:  net investment income; net realized short term capital gains; net realized long term capital gains; and return of capital or other capital source. All amounts are expressed on a per common share basis and as a percentage of the distribution amount.

		For the period 10/1/2024-12/31/2024				For the fiscal year-to-date period 01/1/2024-12/31/2024 1
Source		Current Distribution ($)		% Breakdown  of the Current Distribution		Total Cumulative Distributions ($)		% Breakdown of the Total Cumulative Distributions
Net Investment Income		0.0948		15 %		0.4281		16 %
Net Realized Short-     Term Capital Gains		0.0480		7 %		0.2000		8 %
Net Realized Long-     Term Capital Gains		0.5072		78 %		1.8742		72 %
Return of Capital or Other Capital Source		0.0000		0 %		0.0942		4 %
Total per common share		0.6500		100 %		2.5965		100 %
Average annual total return (in relation to NAV) for the 5 years ended on November 30, 2024								10.19 %
Annualized current distribution rate expressed as a percentage of NAV as of November 30, 2024								6.74 %
Cumulative total return (in relation to NAV) for the fiscal year through November 30, 2024								34.58 %
Cumulative fiscal year-to-date distribution rate expressed as a percentage of NAV as of November 30, 2024								6.73 %

______________________________

1  The Fund's current fiscal year began on January 1, 2024 and will end on December 31, 2024.

You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's managed distribution plan.

The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital.  A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you.  A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income."

The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes.  The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations.  The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

The Fund has declared the December 2024 distribution pursuant to the Fund's managed distribution plan (the "Plan").  Under the Plan, the Fund makes fixed quarterly distributions in the amount of $0.6500 per share.

If you have questions or need additional information, please contact your financial professional or call the John Hancock Investment Management Closed-End Fund Information Line at 1-800-843-0090, Monday through Friday between 8:00 a.m. and 7:00 p.m., Eastern Time.

Statements in this press release that are not historical facts are forward-looking statements as defined by the United States securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors which are, in some cases, beyond the Fund's control and could cause actual results to differ materially from those set forth in the forward-looking statements.

An investor should consider a Fund's investment objectives, risks, charges and expenses carefully before investing.

About John Hancock Investment Management 
A company of Manulife Investment Management, we serve investors through a unique multimanager approach, complementing our extensive in-house capabilities with an unrivaled network of specialized asset managers, backed by some of the most rigorous investment oversight in the industry. The result is a diverse lineup of time-tested investments from a premier asset manager with a heritage of financial stewardship.

About Manulife Investment Management 
Manulife Investment Management is the global brand for the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 18 geographies. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We're committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement. Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com. 

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SOURCE John Hancock Investment Management

FAQ

What is BTO's current quarterly distribution amount per share?

John Hancock Financial Opportunities Fund (BTO) pays a quarterly distribution of $0.6500 per share under its managed distribution plan.

What is BTO's 5-year average annual return as of November 2024?

BTO's average annual total return in relation to NAV for the 5 years ended November 30, 2024, was 10.19%.

How much of BTO's December 2024 distribution comes from long-term capital gains?

78% of BTO's December 2024 distribution ($0.5072 per share) comes from net realized long-term capital gains.

What is BTO's cumulative total return for fiscal year 2024 through November?

BTO's cumulative total return in relation to NAV for the fiscal year through November 30, 2024, was 34.58%.

What is BTO's current distribution rate as a percentage of NAV?

BTO's annualized current distribution rate expressed as a percentage of NAV as of November 30, 2024, is 6.74%.