JOHN HANCOCK HEDGED EQUITY & INCOME FUND REQUIRED NOTICE TO SHAREHOLDERS - SOURCES OF DISTRIBUTION UNDER SECTION 19(a)

Rhea-AI Summary

On December 30, 2022, John Hancock Hedged Equity & Income Fund (NYSE: HEQ) distributed $0.2900 per share to shareholders on record as of December 12, 2022. This distribution is part of the Fund's managed distribution plan and follows a declaration made on December 1, 2022. The current distribution includes sources such as net investment income (26%) and a significant return of capital (74%). For fiscal year 2022, the Fund has distributed more than its income and realized gains. The annualized current distribution rate is 9.47% based on the NAV as of November 30, 2022.

Positive

• The Fund's quarterly distribution of $0.2900 reflects a consistent managed distribution plan.
• The annualized current distribution rate of 9.47% is attractive compared to many market benchmarks.

Negative

• The distribution includes 74% return of capital, indicating that the Fund has distributed more than its income and gains.

BOSTON, Dec. 30, 2022 /PRNewswire/ -- John Hancock Hedged Equity & Income Fund (NYSE: HEQ) (the "Fund"), a closed-end fund managed by John Hancock Investment Management LLC (the "Adviser") and subadvised by Wellington Management Company LLP (the "Subadviser"), announced today sources of its quarterly distribution of $0.2900 per share paid to all shareholders of record as of December 12, 2022, 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.  

John Hancock Hedged Equity & Income Fund

Notification of Sources of Distribution

This notice provides shareholders of the John Hancock Hedged Equity & Income Fund (NYSE: HEQ) with important information concerning the distribution declared on December 1, 2022, and payable on December 30, 2022. No action is required on your part.

Distribution Period:	December 2022
Distribution Amount Per Common Share:	$0.2900

 

The following table sets forth the estimated sources of the current distribution, payable December 30, 2022, 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 10/1/2022-12/31/2022				For the fiscal year-to-date period 1/1/2022-12/31/2022 1
Source		Current Distribution ($)		% Breakdown of the Current Distribution		Total Cumulative Distributions ($)		% Breakdown of the Total Cumulative Distributions
Net Investment Income		0.0753		26 %		0.5662		49 %
Net Realized Short-      Term Capital Gains		0.0000		0 %		0.0000		0 %
Net Realized Long-      Term Capital Gains		0.0000		0 %		0.3333		29 %
Return of Capital or      Other Capital Source		0.2147		74 %		0.2600		22 %
Total per common share		0.2900		100 %		1.1595		100 %
Average annual total return (in relation to NAV) for the 5 years ended on November 30, 2022								2.66 %
Annualized current distribution rate expressed as a percentage of NAV as of November 30, 2022								9.47 %
Cumulative total return (in relation to NAV) for the fiscal year through November 30, 2022								0.86 %
Cumulative fiscal year-to-date distribution rate expressed as a percentage of NAV as of November 30, 2022								9.47 %

 

_____________________________ 1  The Fund's current fiscal year began on January 1, 2022 and will end on December 31, 2022.

 

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 2022 distribution pursuant to the Fund's managed distribution plan (the "Plan").  Under the Plan, the Fund makes fixed quarterly distributions in the amount of $0.2900 per share, which will continue to be paid quarterly until further notice.

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.

Wellington Management Company LLP is an independent and unaffiliated investment subadviser to John Hancock Hedged Equity & Income Fund.

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 was the distribution amount for HEQ in December 2022?

John Hancock Hedged Equity & Income Fund (HEQ) distributed $0.2900 per share in December 2022.

When was the HEQ distribution paid to shareholders?

The distribution was paid on December 30, 2022, to shareholders of record as of December 12, 2022.

What percentage of HEQ's December distribution was a return of capital?

74% of the December distribution was classified as a return of capital.

What is the annualized current distribution rate for HEQ as of November 30, 2022?

The annualized current distribution rate for HEQ is 9.47% based on the NAV as of November 30, 2022.