BOSTON, June 1 /PRNewswire-FirstCall/ -- John Hancock Bank and Thrift Opportunity Fund (the "Fund") declared a quarterly distribution of $0.0504 per share today. This distribution rate equates to an annualized rate of 1.61%, based on the Fund's closing market price of $12.49 as of May 29, 2009. The distribution rate is payable June 30, 2009 to shareholders of record on June 11, 2009 and with an ex-date of June 9, 2009.
As announced on May 11, 2009, the Board of Trustees concluded that it was in the best interest of shareholders to voluntarily suspend the Fund's managed distribution plan (the "Plan") effective with this June 2009 distribution. While the Plan is suspended, the Fund will continue to pay out any net investment income earned on the portfolio on a quarterly basis as well as any net realized capital gains on an annual basis, as required.
The Fund's Plan was adopted by the Board of Trustees in May 2003 and was implemented in January 2004. Under the Plan, the Fund made quarterly distributions of an amount equal to at least 2.5% (or 10% annually) of the Fund's net asset value ("NAV") determined at the preceding calendar year end. The Plan was originally adopted to allow the Fund to distribute significant capital gains accrued in the portfolio. Since the Plan was originally adopted, the Fund has distributed nearly $400 million of long-term gains to its shareholders.
Before coming to the conclusion to suspend the Plan, the Board took a number of factors into consideration, including, but not limited to, the current level of gains and losses in the portfolio as well as current market conditions. Unprecedented market declines and extreme market volatility, especially in the banking sector, have resulted in a substantial reduction of capital gains available in the portfolio for distribution, thereby impairing the Fund's ability to support the distribution level of the Plan without the risk of distributions consisting substantially of return of capital. While there has been some recent improvement in the sector, Management has determined that the gains currently available in the Fund's portfolio are not at the levels needed to sustain the Plan over the long-term. Furthermore, portfolio management believes that this action may allow them the opportunity to retain capital in order to take advantage of severely under-valued securities and attractive market opportunities as they seek to enhance the Fund's total return profile over the long-term. The suspension of the Plan does not impact the Fund's overall objective of seeking long-term capital appreciation with moderate income as a secondary objective. The Board will continue to regularly monitor the Fund's distribution policy.
John Hancock Bank and Thrift Opportunity Fund is a diversified, closed-end fund. The Fund seeks long-term capital appreciation with moderate income as a secondary objective by normally investing at least 80% of its assets in stocks of regional banks and lending companies, including commercial and industrial banks, savings and loan associations and bank holding companies.
A portion of the Fund's current distribution may include sources other than net investment income, including a return of capital. The ultimate composition of the distribution may vary because it may be materially impacted by future realized capital gains or losses, and income from holdings. As required under the Investment Company Act of 1940, the Fund will provide a notice to shareholders at the time of payment of a distribution that may not consist solely of net income. Such notification will also be posted to the Fund's website at http://www.jhfunds.com/ where it will be viewable under the "Funds & Performance" tab, by clicking on "Closed-End Funds" and then "19(a) Distribution Notices". The notice is for informational purposes only and should not be used to prepare tax returns as the estimates indicated in the notice may differ from the ultimate federal income tax characterization of distributions reported to shareholders on Form 1099 DIV at the end of the calendar year. As noted, distributions may include return of capital. Investors should understand that return of capital is not a distribution from income or gains from the Fund.
Statements in this press release that are not historical facts are forward-looking statements as defined by 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.
About John Hancock Funds
The Boston-based mutual fund business unit of John Hancock Financial, John Hancock Funds manages more than $35.8 billion in open-end funds, closed-end funds, private accounts, retirement plans and related party assets for individual and institutional investors at March 31, 2009
About John Hancock Financial and Manulife Financial Corporation
John Hancock Financial is a unit of Manulife Financial Corporation (the Company), a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and in most of Asia, and primarily as 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$405 billion (US$322 billion) at March 31, 2009.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '0945' on the SEHK. Manulife Financial can be found on the Internet at http://www.manulife.com/.
The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers a broad range of financial products and services, including life insurance, fixed and variable annuities, fixed products, mutual funds, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at http://www.johnhancock.com/.
John Hancock Bank and Thrift Opportunity Fund
CONTACT: Kelly Stevens, +1-617-663-2422; or Investors, +1-800-843-0090
Web Site: http://www.johnhancock.com/
