John Hancock Preferred Income Fund (NYSE: HPI) is a closed-end investment company managed by John Hancock Investment Management, a division of Manulife Investment Management. The fund’s primary objective is to provide high current income while preserving capital by investing predominantly in preferred securities. These securities often represent claims on corporate assets that rank ahead of common stock, offering investors potentially higher yields in exchange for greater credit risk exposure.
HPI’s portfolio is diversified across a broad range of issuers, with a focus on U.S. financial and utility companies, although the fund may also invest in select foreign-issued preferred stocks and other income instruments. The fund utilizes active credit research and interest-rate analytics to identify undervalued opportunities, aiming to capitalize on market inefficiencies and generate consistent distributions. Duration management and credit quality monitoring are integral to the fund’s strategy, helping to navigate changing interest rate environments and credit cycles.
Since its inception in 1993, John Hancock Preferred Income Fund has leveraged the depth of John Hancock’s fixed-income research team, which is led by seasoned portfolio managers with decades of experience in preferred and corporate bond markets. The management team applies a disciplined, risk-aware approach to security selection, combining bottom-up fundamental analysis with macroeconomic insights. Regular engagement with company management and credit rating agencies also supports robust due diligence processes.
Serving both individual and institutional investors, HPI seeks to offer a convenient vehicle for accessing a targeted slice of the income market through a single closed-end fund structure. Shares of the fund trade on the New York Stock Exchange, providing liquidity and the opportunity to purchase at market prices. Over the years, HPI has aimed to balance income generation with risk oversight, making it a potential addition to diversified portfolios seeking enhanced yield.
AI Generated. May Contain Errors.
Free HPI Stock Alerts