John Hancock Bank and Thrift Opportunity Fund Suspends Managed Distribution Plan and Adopts Share Repurchase Plan
May 11 2009 - 5:09PM
PR Newswire (US)
BOSTON, May 11 /PRNewswire-FirstCall/ -- At a regularly scheduled
meeting, held on May 7, 2009, the Board of Trustees concluded that
it was in the best interest of shareholders to voluntarily suspend
the John Hancock Bank and Thrift Opportunity Fund's (NYSE:BTO) (the
"Fund") managed distribution plan (the "Plan") effective with the
Fund's June distribution. While the Plan is suspended, the Fund
will continue to pay out any net investment income earned on the
portfolio as well as any net realized capital gains on an annual
basis, as required. The Fund's next quarterly distribution will be
declared on June 1, 2009. 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, this action may allow portfolio management
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. The Fund also announced today that its Board of Trustees,
in evaluating strategic options to enhance shareholder value, has
approved a share repurchase plan. Under the share repurchase plan
the Fund may purchase, in the open market, up to 10% of its
outstanding common shares commencing immediately through December
31, 2009. Share repurchase plans can be accretive to the Fund's net
asset value when shares are purchased on the open market at a
discount to NAV. They could also have the benefit of providing
additional liquidity in the trading of the common shares. 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. 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. 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/. DATASOURCE: John Hancock Bank and
Thrift Opportunity Fund CONTACT: Media, Kelly Stevens,
+1-617-663-2422, or Investors, +1-800-843-0090 Web Site:
http://www.johnhancock.com/
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