John Hancock Hedged Equity & Income Fund Required Notice to Shareholders - Sources of Distribution Under Section 19(a)

Rhea-AI Summary

On March 31, 2021, the John Hancock Hedged Equity & Income Fund (NYSE: HEQ) announced its quarterly distribution of $0.2900 per share, payable to shareholders as of March 11, 2021. This distribution is part of the Fund's managed distribution plan. The total distribution for the period includes contributions from net investment income, net realized short-term capital gains, net realized long-term capital gains, and return of capital. Shareholders should note that part of the distribution may be a return of capital, which does not directly reflect the Fund's investment performance.

Positive

• Quarterly distribution of $0.2900 per share.
• Managed distribution plan suggests a structured payout approach.
• 40% of the distribution from net investment income indicates stable income generation.

Negative

• A portion of the distribution may be a return of capital, which can indicate the Fund is distributing more than its income and gains.
• Contributions from net realized long-term capital gains are only 18%, signifying limited long-term growth.

BOSTON, March 31, 2021 /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 March 11, 2021, 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 Hedged Equity & Income Fund (NYSE: HEQ) with important information concerning the distribution declared on March 1, 2021, and payable on March 31, 2021. No action is required on your part.

Distribution Period:  March 2021

Distribution Amount Per Common Share:  $0.2900

The following table sets forth the estimated sources of the current distribution, payable March 31, 2021, 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 1/1/2021-3/31/2021				For the fiscal year-to-date period 1/1/2021-3/31/2021 1
Source		Current Distribution ($)		% Breakdown of the Current Distribution		Total Cumulative Distributions ($)		% Breakdown of the Total Cumulative Distributions
Net Investment Income		0.1158		40%		0.1158		40%
Net Realized Short- Term Capital Gains		0.1026		35%		0.1026		35%
Net Realized Long- Term Capital Gains		0.0514		18%		0.0514		18%
Return of Capital or Other Capital Source		0.0202		7%		0.0202		7%
Total per common share		0.2900		100%		0.2900		100%
Average annual total return (in relation to NAV) for the 5 years ended on February 28, 2021								6.34%
Annualized current distribution rate expressed as a percentage of NAV as of February 28, 2021								8.88%
Cumulative total return (in relation to NAV) for the fiscal year through February 28, 2021								2.35%
Cumulative fiscal year-to-date distribution rate expressed as a percentage of NAV as of February 28, 2021								2.22%

__________________

1  The Fund's current fiscal year began on January 1, 2021 and will end on December 31, 2021.

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 March 2021 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 Financial and Manulife Financial
John Hancock is a division of Manulife Financial Corporation, a leading international financial services group that helps people achieve their dreams and aspirations by putting customers' needs first and providing the right advice and solutions. We operate primarily as John Hancock in the United States and as Manulife elsewhere. We provide financial advice, insurance, and wealth and asset management solutions for individuals, groups, and institutions. Assets under management and administration by Manulife and its subsidiaries were over CAD$1.3 trillion (US$1.02 trillion) as of December 31, 2020. Manulife Financial Corporation trades as MFC on the TSX, NYSE, and PSE, and under 945 on the SEHK. Manulife can be found at manulife.com.

One of the largest life insurers in the United States, John Hancock supports approximately 10 million Americans with a broad range of financial products, including life insurance, annuities, investments, 401(k) plans, and education savings plans. Additional information about John Hancock may be found at johnhancock.com.

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SOURCE John Hancock Investment Management

FAQ

What is the distribution amount for HEQ in March 2021?

The distribution amount for HEQ in March 2021 is $0.2900 per share.

When is the HEQ distribution paid?

The HEQ distribution is payable on March 31, 2021.

Who is eligible for the HEQ distribution?

Shareholders of record as of March 11, 2021, are eligible for the HEQ distribution.

What percentage of the HEQ distribution is from net investment income?

40% of the HEQ distribution is from net investment income.

Is any part of the HEQ distribution a return of capital?

Yes, a portion of the HEQ distribution may be a return of capital, indicating that the Fund distributed more than its income and gains.