JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND ANNOUNCE PROPOSED MERGER

Rhea-AI Summary

John Hancock Tax-Advantaged Global Shareholder Yield Fund announces proposed merger with John Hancock Global Shareholder Yield Fund (JGYIX), scheduled to be effective on April 26, 2024. Former Fund shareholders will hold shares of JGYIX, an open-end fund with approximately $1.17 billion in net assets.

Financial Analyst

The proposed merger of John Hancock Tax-Advantaged Global Shareholder Yield Fund into John Hancock Global Shareholder Yield Fund represents a strategic consolidation that may result in operational efficiencies and a streamlined fund offering for investors. Considering the Fund's aim to provide total return with a focus on tax-advantaged income, the merger could potentially enhance the value proposition to current and prospective shareholders by offering a more focused investment strategy under the larger umbrella of JGYIX.

Investors should note the cessation of trading on the NYSE for the Fund, as it could influence the liquidity and marketability of their investments in the short term. Over the long term, the reorganization into an open-end fund like JGYIX may provide shareholders with increased flexibility in terms of share redemption, potentially improving liquidity. However, transitional costs associated with the merger could affect net asset values in the short term.

It is imperative for investors to understand that the tax-advantaged nature of the Fund's returns is a key feature that might align well with their portfolio strategies, especially for those in higher tax brackets seeking to minimize the impact of federal income tax on investment income and gains.

Market Research Analyst

With $1.17 billion in net assets, JGYIX positions itself as a substantial player in the closed-end fund space. The fund's reorganization could resonate positively in the market by potentially attracting a broader investor base. The similar investment strategy used by the subadvisor, Epoch Investment Partners, indicates a continuity in the management approach, which could be reassuring to investors familiar with the Fund's performance.

It is also essential to consider the competitive landscape of tax-advantaged investment products. The merger could strengthen the Fund's position against competitors by leveraging economies of scale and potentially improved performance consistency. Investors should monitor how the market reacts to the merger announcement and the subsequent completion of the reorganization to gauge market sentiment and the potential impact on the Fund's performance relative to its peers.

BOSTON, April 15, 2024 /PRNewswire/ - John Hancock Tax-Advantaged Global Shareholder Yield Fund (the "Fund"), a closed-end fund managed by John Hancock Investment Management LLC and subadvised by Epoch Investment Partners, announced today that shareholders of the Fund have approved the Fund's reorganization into John Hancock Global Shareholder Yield Fund ("JGYIX") (the proposed reorganization of the Fund into JGYIX is the "Reorganization").  As part of the Reorganization, shareholders of the Fund will receive Class I shares of JGYIX as previously announced.

The Reorganization is currently scheduled to become effective close of business on Friday, April 26, 2024 (the "Closing Date"), subject to satisfaction of certain closing conditions. Former Fund shareholders will hold shares of the JGYIX. Shares of JGYIX may be purchased or redeemed on any business day. To facilitate the Reorganization, all shares of the Fund will cease trading on the New York Stock Exchange as of market close on April 17, 2024.

JGYIX is an open-end fund that is a series of John Hancock Funds III with approximately $1.17 billion in net assets and is also managed by John Hancock Investment Management, the investment adviser of the Fund, and subadvised by Epoch Investment Partners, the sub-adviser of the Fund, using a similar investment strategy.

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.

John Hancock Tax-Advantaged Global Shareholder Yield Fund is a Massachusetts business trust registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. The Fund's investment objective is to provide total return consisting of a high level of current income and gains and long term capital appreciation. In pursuing its investment objective, the Fund seeks to achieve favorable after-tax returns for its shareholders by seeking to minimize the U.S. federal income tax consequences on income and gains generated by the fund. There can be no assurance that the fund will achieve its investment objective.

This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will," and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual future results to differ significantly from the Fund's present expectations or projections indicated in any forward-looking statements. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; leverage risk; valuation risk; interest rate risk; tax risk; the volume of sales and purchase of shares; the continuation of investment advisory, administration and other service arrangements; and other risks discussed in the Fund's filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund's investment objective will be attained.

An investor should consider the Funds 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 the proposed merger mentioned in the press release?

The press release announces the proposed merger of John Hancock Tax-Advantaged Global Shareholder Yield Fund into John Hancock Global Shareholder Yield Fund (JGYIX).

When is the Reorganization scheduled to become effective?

The Reorganization is scheduled to become effective close of business on Friday, April 26, 2024.

What will former Fund shareholders receive as part of the Reorganization?

Former Fund shareholders will receive Class I shares of JGYIX as part of the Reorganization.

How can shares of JGYIX be purchased or redeemed?

Shares of JGYIX may be purchased or redeemed on any business day.

What is the total net assets of JGYIX?

JGYIX is an open-end fund with approximately $1.17 billion in net assets.