BOSTON, Dec. 8 /PRNewswire-FirstCall/ -- John Hancock Bank and Thrift Opportunity Fund (the "Fund"), a closed-end fund managed by John Hancock Advisers, LLC, announced today that its Board of Trustees, in evaluating strategic options to enhance shareholder value and potentially decrease the discount between the market price and the net asset value ("NAV") of the Fund's common shares, has renewed the Fund's share repurchase plan which is set to expire on December 31, 2009. As renewed, the Fund may purchase, in the open market, up to an additional 10% of its outstanding common shares between January 1, 2010 and December 31, 2010 (based on common shares outstanding as of December 31, 2009).
The share repurchase plan seeks to enhance shareholder value and narrow the Fund's discount to NAV. The plan allows the Fund to acquire its own shares in the open market at a discount to NAV, which is intended to increase the NAV per share. It could also have the benefit of providing additional liquidity in the trading of common shares.
Since the plan commenced in May 2009 the Fund has been actively repurchasing shares to seek to enhance shareholder value, and through November 30, 2009 the Fund has repurchased 321,300 shares, or 1.52% of total outstanding shares. During this period the share repurchases have contributed to the Fund's NAV by approximately $0.04 per share.
There is no assurance that the Fund will purchase shares at any specific discount levels or in any specific amounts. The Fund's repurchase activity will be disclosed in its shareholder report for the relevant fiscal period. There is no assurance that the market price of the Fund's shares, either absolutely or relative to net asset value, will increase as a result of any share repurchases, or that the plan will enhance shareholder value over the long-term.
Year-to-Date Update
Bank stocks have staged a strong come-back since the March 2009 stock market bottom, both on an absolute basis and relative to other sectors. The Fund's investment team, a unit of MFC Global Investment Management (U.S.) LLC, has a positive outlook on bank stocks. While fundamentals remain challenging due to elevated credit costs, the Fund's investment team believes that investors may be beginning to focus on future earnings potential for many names in the sector. Examples of stocks that have positively contributed to performance in 2009 include some large banks that have gone through the government's stress test, including Bank of America and JPMorgan Chase. Stocks that have detracted from year-to-date performance were generally those with greater-than-expected exposure to problem loans, particularly commercial real estate loans, such as Utah based Zions Bancorporation. The investment team believes that bank stocks will remain strong in the coming period, initially due to significant fundamental improvement as credit costs decline and secondly due to a major wave of consolidation in the industry as the economy recovers.
Despite the challenging market conditions over the past year, the Fund has continued to outperform its bank benchmark, the S&P 1500 Bank Index. As of November 30, 2009, the Fund's average annual total returns at NAV and at market price have outperformed the benchmark over the YTD, 1-, 3-, and 5-year periods:
Total Return as of 11/30/09 YTD 1-Yr 3-Yr 5-Yr --- ---- ---- ---- John Hancock Bank and Thrift Opportunity Fund at NAV 3.3% -0.7% -14.4% -6.3% John Hancock Bank and Thrift Opportunity Fund at Market 4.0% -2.3% -18.3% -8.6% S&P 1500 Bank Index -7.3% -10.4% -27.7% -15.7%
The views of the investment team reflect its own opinions and they are in no way guarantees of future events, and are not intended to be used as an investment advice or a recommendation regarding any specific security. They are also subject to change at any time as market and other conditions warrant.
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.
Past performance is no guarantee of future results. The Fund's performance during the period year-to-date through November 30, 2009 reflect the strong stock market performance and/or the strong performance of stocks held by the Fund during these periods. This performance is not typical and may not be repeated. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. The Fund's performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund's shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted. For performance as of the most recent month end, please refer to http://www.jhfunds.com/.
It is not possible to invest directly in an Index. The Index's total returns do not reflect commissions or expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.
Fund shares do not represent a deposit or obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Data are based on total market value of Fund holdings unless otherwise indicated. The data provided in this press release are for information only and are not intended for trading purposes. The Fund is subject to investment risks, including possible loss of principal invested. Portfolio information is subject to change due to active management.
Before investing, prospective investors should consider carefully the Fund's objective, risks, and charges and expenses. For more complete information about the Fund, please contact your financial advisor.
About John Hancock Funds
The Boston-based mutual fund business unit of John Hancock Financial, John Hancock Funds, manages more than $50.5 billion in open-end funds, closed-end funds, private accounts, retirement plans and related party assets for individual and institutional investors at September 30, 2009.
About John Hancock Financial and Manulife Financial Corporation
John Hancock Financial is a unit of Manulife Financial Corporation, a leading Canadian-based financial services group serving millions of customers in 22 countries and territories worldwide. Operating as Manulife Financial in Canada and in most of Asia, and primarily as John Hancock in the United States, Manulife Financial Corporation 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$437 billion (US$407 billion) at September 30, 2009.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' 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 Funds
CONTACT: Jay Aronowitz, +1-617-663-2702, or Investor Contact,
1-800-843-0090, of John Hancock Funds
Web Site: http://www.jhfunds.com/
