John Hancock Closed-end Funds Declare Monthly Dividends
July 03 2006 - 7:43PM
PR Newswire (US)
BOSTON, July 3 /PRNewswire/ -- Nine John Hancock closed-end funds
declared their monthly dividends today as follows: Declaration
Date: July 3, 2006 Ex Date: July 11, 2006 Record Date: July 13,
2006 Payable Date: July 31, 2006 Change Annualized from Yield
Previous Ticker Fund Name Amount at Market* Month PDF Patriot
Premium Dividend Fund I $0.0390 5.84% ($0.007) PDT Patriot Premium
Dividend Fund II $0.0480 5.59% ($0.009) DIV Patriot Select Dividend
Trust $0.0560 5.57% ($0.010) PGD Patriot Global Dividend Fund
$0.0590 6.11% ($0.010) PPF Patriot Preferred Dividend Fund $0.0720
7.15% -- HPI Preferred Income Fund $0.1550 8.27% -- HPF Preferred
Income Fund II $0.1550 8.40% -- HPS Preferred Income Fund III
$0.1320 8.02% -- HTD Tax-Advantaged Dividend Income Fund $0.0967
6.73% -- The relationship between short-and long-term interest
rates continues to put added pressure on the Patriot Funds'
dividends. The seventeen quarter- point rate increases since June
2004 have significantly increased the fund's leverage costs,
reducing the income available to the common shareholders. During
this time, longer-term interest rates have fallen below the federal
funds rate. Furthermore, new preferred issuance has weighed heavily
on our existing preferreds. With many of our higher-yielding
preferred securities being called such as Sierra Pacific Power, a
large holding across the Patriot Funds, with a 7.8% coupon rate,
the funds have been forced to reinvest the proceeds at lower
yields. In order to maintain management's approach of only paying
dividends from income generated by the underlying securities within
the portfolio, four of our Patriot Funds' dividends have been
reduced. Management believes this amendment is necessary at this
time to avoid a return of capital. Despite these market conditions,
the yields represented by the new dividend levels still remain
attractive relative to other investment-grade, income-oriented
securities. We also remain optimistic due to Congress extending the
15% Qualified Dividend Income (QDI) tax rate for two more years.
This allows investors to earn attractive after-tax yields because
the qualifying dividend income is taxed at the same rate as
long-term capital gains. The Patriot Funds are managed to invest a
large percentage of their assets in securities whose dividends
qualify for this special tax treatment. For historical distribution
information for any of our closed-end funds, please visit our
website http://www.jhfunds.com/. John Hancock Funds, the mutual
fund business unit of John Hancock Financial Services, offers a
broad array of investment products, including open-end and
closed-end funds, privately managed accounts, 529 plans and
retirement accounts to retail and institutional investors. As of
March 31, 2006, investors entrusted John Hancock Funds with more
than $47 billion. Additional information about John Hancock Funds
can be found on the website: http://www.jhfunds.com/. About
Manulife Financial and John Hancock John Hancock 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$386
billion (US$330 billion) as at March 31, 2006. 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 universal life insurance, variable
life, term life and whole life, as well as college savings
products, fixed and variable annuities, long-term care insurance,
mutual funds, 401(k) plans and various forms of business insurance.
* Based on June 30, 2006 closing market price DATASOURCE: John
Hancock Funds CONTACT: Kimberley Dietrich, +1-617-663-4217, or
Investors: 1-800-843-0090, both of John Hancock
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