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The fund's market price is the last sale price as of the close of the regular market trading session. The fund's market price as of and after July 1, 2013, reflects the last sale price in the broad market; market price prior to July 1, 2013, reflects the last sale price on the New York Stock Exchange.
The shares of closed-end management investment companies frequently trade at a discount from their NAV. The fund’s cash available for distribution will vary over time, and there is no guarantee prior distribution levels will be maintained. If, for any calendar year, the total distributions made exceed the amount of the fund's earnings and profits as computed for federal tax purposes, the excess generally will be treated as a return of capital to holders of common shares (up to the amount of each shareholder’s basis in those shares) and thereafter as gain from the sale of common shares. Such return of capital reduces the shareholder’s adjusted basis for common shares, thereby increasing the potential gain or reducing the potential loss of a subsequent sale. Distributions in any year may include a substantial return-of-capital component. An investment in the fund's common shares is subject to investment and market risk, including the possible loss of the entire principal amount invested. An investment in common shares represents an indirect investment in the securities owned by the fund, which generally are traded on a securities exchange or in the over-the-counter markets. These securities will fluctuate in value, and an investor in the fund may lose some or all of his or her investment, even after accounting for any reinvestment of dividends and distributions. Fixed-income investments are subject to interest-rate risk; their value will normally decline as interest rates rise. An issuer of securities held by the fund may default, have its credit rating downgraded, or otherwise perform poorly. The fund utilizes a Credit Facility Agreement (CFA) to increase its assets available for investment. Shareholders bear the fees associated with this leverage and may be disadvantaged from the use of leverage. It is important to recognize that use of leverage increases the advisor’s fee. Leverage creates risks that may adversely affect the return for the holders of common shares, including:
Fund returns will be lower if the cost of the leverage exceeds the income or capital appreciation derived from securities purchased with leverage. If the fund is unable to obtain replacement financing in the event the CFA is terminated, the fund would be required to sell securities at a potentially inopportune time, incurring tax consequences, and its ability to generate income would be adversely affected.
Effective with the quarterly distribution payable on September 28, 2012, Financial Opportunities Fund (the Fund) declared its distribution pursuant to the Fund’s managed distribution plan (the BTO Plan). Under the current BTO Plan, the Fund makes quarterly distributions of an amount equal to $0.2961 per share, based upon an annual distribution rate of 6.50% of the Fund’s NAV of $18.22 on July 31, 2012 (representing a quarterly distribution rate of 1.625% of the Fund’s July 31, 2012, NAV). This amount will be paid quarterly until further notice.
Distributions under the BTO Plan may consist of net investment income, net realized long-term capital gains, net realized short-term capital gains and, to the extent necessary, return of capital. The BTO Plan intends to fund each distribution, to the extent possible, in a tax-advantaged manner through the realization of long-term capital gains where the distribution amount exceeds net investment income. The Fund will seek to realize capital gains for this purpose in a manner which the advisor and subadvisor believe is consistent with prudent portfolio management and the investment objective, policies, and guidelines of the Fund.
The Fund may also make additional distributions (i) for purposes of avoiding federal income tax on the Fund of investment company taxable income and net capital gain, if any, not included in such regular distributions and (ii) for purposes of avoiding federal excise tax of ordinary income and capital gain net income, if any, not included in such regular quarterly distributions. The Board may amend the terms of the BTO Plan or terminate the BTO Plan at any time.
Closed-end fund shares are not redeemable, but instead are traded in the secondary market on an exchange such as the New York Stock Exchange or the NASDAQ. They frequently trade at a discount to net asset value. Specialized funds may carry additional risks. The distribution rate and income amounts reflect past amounts distributed and may not be indicative of future rates or income amounts. Distribution rates and income amounts can change at any time.
Your financial advisor can help you select the funds that are suitable for your long-term goals and objectives.
The Value of a FinancialProfessional Why John Hancock Investments?
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.