BOSTON, Nov. 9 /PRNewswire-FirstCall/ -- The John Hancock Tax-Advantaged Global Shareholder Yield Fund today declared an initial dividend of $0.45 per share, payable on December 28, 2007 for shareholders of record on November 19, 2007. The Fund made an initial public offering of its shares at $20.00 per share on September 26, 2007, resulting in net proceeds to the fund of $167,125,000, which reflects the deduction of the sales load. On November 9, 2007, the closing per share price of the fund on the NYSE was $19.50.
The John Hancock Tax-Advantaged Global Shareholder Yield Fund is a closed- end fund combining a global equity income strategy managed by Epoch Investment Partners, Inc., and a covered call strategy managed by Analytic Investors, LLC. Epoch employs a proprietary investment approach that is focused on identifying companies with strong free cash flow, which use their free cash flow to seek to maximize "shareholder yield" through dividend payments, stock repurchases and debt reduction. Analytic Investors writes covered calls on indices to seek to enhance the fund's income and mute volatility.
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. Under normal market conditions, the Fund will invest at least 80% of its total assets in a diversified portfolio of dividend-paying stocks of issuers located throughout the world. By assembling a diversified portfolio of stocks which, in the aggregate, possess positive growth of free cash flow, high cash dividend yields, share buyback programs and net debt reductions, the Fund seeks to provide shareholders an attractive total return with less volatility than the global equity market as a whole. Under normal market conditions, the Fund will invest at least 40% of its total assets in securities of non-U.S. issuers. The Fund may invest up to 20% of its total assets in securities issued by companies located in emerging markets.
Market Commentary
In Epoch's view, the portfolio has performed as expected in volatile markets. The initial equity positions were fully invested within 48 hours, reflecting the significant liquidity in the securities chosen. Holdings are divided across 19 countries and 11 economic sectors. During the first month, corporate earnings reports and dividend payments have been in line or in excess of expectations. Of the holdings paying dividends in the month of October, the average dividend growth met expectations. In Epoch's opinion, the fund's strategy is well positioned for current volatile market conditions.
As a part of its investment program the fund writes covered index options. A popular measure of the implied volatility of S&P 500 index options is the Chicago Board Options Exchange Volatility Index ("VIX"). The VIX represents one measure of the market's expectation of volatility over the next 30 day period. Analytic notes calls were priced very high at October month end. Analytic believes that if implied volatilities stay at these levels there may be favorable opportunities for the fund's covered call strategy. Initially the fund contemplated a lower VIX level and Analytic believes that the current higher level may provide the fund with greater flexibility and potentially more opportunities to effectively implement its option writing program.
About John Hancock Funds
The Boston-based mutual fund business unit of John Hancock Financial Services, John Hancock Funds manages more than $59 billion in open-end funds, closed-end funds, private accounts, retirement plans and related party assets for individual and institutional investors at September 30, 2007. For more information, please visit http://www.jhfunds.com/.
John Hancock Financial Services is a unit of Manulife Financial Corporation, a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$399 billion (US$398 billion) at September 30, 2007. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '0945' on the SEHK. Manulife Financial may be found on the Internet at http://www.manulife.com/.
About Epoch Investment Partners, Inc.
Epoch Investment Partners was established in 2004 by four industry veterans -- William Priest, Tim Taussig, Phil Clark and David Pearl. Mr. Priest previously served as Chairman and CEO of Credit Suisse Asset Management Americas and of its predecessor firm BEA Associates, which he co-founded in 1972. He co-authored the recent book, "Free Cash Flow and Shareholder Yield." Epoch now oversees more than $6.0 billion in assets under management. Its investment team consists of 14 professionals.
About Analytic Investors, LLC
Based in Los Angeles, Analytic provides investment management services to corporations, foundations and institutional investors, as well as to individual investors. The firm has $11.8 billion in assets under management, and has been managing options-based strategies since the early 1970s. Its derivatives team averages 17 years of investment experience.
The final determination of tax characteristics of the fund's distributions will occur after the end of the year, at which time it will be reported to shareholders. The amount of each distribution will vary depending on a number of factors. As portfolio and market conditions change, the rate of distributions on the fund's common shares could change. Past performance is no guarantee of future results. This news release contains statements that are not historical facts, referred to as "forward looking statements." Actual future results may differ significantly from those stated in any forward looking statements, depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and purchases of shares, the continuation of investment advisory, administration, and service contracts, and other risks discussed from time to time in filings made with the Securities and Exchange Commission.
