John Hancock Preferred Income Fund III (NYSE: HPS) is a closed-end management investment company that seeks to provide a high level of current income consistent with the preservation of capital. Incorporated in Maryland, the fund pursues its investment objective by primarily acquiring preferred securities, including U.S. and international preferred stocks, equity-linked notes and other hybrid instruments. The fund’s portfolio may also include common stocks, convertible securities and investment-grade debt when deemed appropriate by its management team.
The fund is actively managed by John Hancock Advisers LLC, a subsidiary of Manulife Financial Corporation, drawing on the parent company’s global research platform and fixed-income expertise. The portfolio management team combines fundamental credit analysis with interest-rate and currency management to construct a diversified portfolio across sectors such as financials, utilities, energy and telecommunications. The investment process incorporates rigorous credit evaluation and risk controls designed to mitigate volatility and preserve capital through market cycles.
HPS employs modest leverage through preferred share borrowings and other financing arrangements to potentially enhance income, while maintaining coverage ratios and monitoring liquidity positions. The fund generally targets investment-grade and high-yield issues, balancing yield opportunities with credit quality standards. Geographic exposure spans North America, Europe and select developed markets, offering investors access to income streams from a broad cross-section of global issuers.
Since its inception, John Hancock Preferred Income Fund III has sought to deliver stable monthly distributions to shareholders. The fund’s governance structure includes an independent board of trustees responsible for oversight of investment policies, conflicts of interest and service providers. By combining a disciplined credit-driven approach with the resources of a large global asset manager, HPS aims to serve income-oriented investors seeking a professionally managed portfolio of preferred and other income-producing securities.
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