John Hancock Investors Closed Fund (JHI)

John Hancock Investors Closed Fund: A Comprehensive Overview

Company Profile

History: John Hancock Investors Closed Fund (JHC) was first established in 1983 as a closed-end bond fund, originally named Strategic Income Fund and later renamed Income Builder Fund. Today, it operates as a diversified closed-end fund investing in a portfolio of common stocks.

Business Areas: JHC focuses primarily on investing in equity securities of large and mid-capitalization companies across various sectors. The fund aims to provide shareholders with current income, long-term capital appreciation, and access to a diverse portfolio of stocks.

Leadership: The fund's investment team is led by Portfolio Managers David A. Blinn and Michael R. Gustafson, who possess extensive experience in equity investing. JHC's Board of Directors consists of seven independent directors with diverse professional backgrounds.

Top Products and Market Share:

JHC's primary product is its closed-end fund, aiming for a total return strategy. Analyzing market share within the broader closed-end fund market is challenging, as JHC does not fall neatly into a specific category.

However, JHC's portfolio composition and investment strategy bear resemblance to larger multi-sector funds. As of May 11, 2023, JHC has approximately $2.85 billion in assets under management, placing it among the smaller players in this segment.

Total Addressable Market:

The total addressable market for JHC encompasses the entire investable universe of common stocks. In 2022, the global stock market capitalization stood at around $101.2 trillion, offering a vast potential market for JHC's investment strategy.

Financial Performance:

JHC's financial performance has been mixed in recent years.

• Revenue: The fund's total revenue in 2022 was $24.6 million, a decrease of 29.5% compared to 2021. This decline can be attributed mainly to a downturn in the overall stock market.
• Net Income: JHC's net income in 2022 was $7.5 million, a decrease of 62.5% from 2021. This decrease reflects the impact of lower revenue and higher operating expenses.
• Profit Margins: The fund's net profit margin in 2022 was 30.4%, down from 40.8% in 2021. This decline suggests a decrease in profitability.
• Earnings per Share (EPS): JHC's EPS in 2022 was $0.37, compared to $0.99 in 2021. This represents a significant decline in earnings per share.

Dividends and Shareholder Returns:

JHC has historically distributed dividends, although the amount can vary based on market performance. The latest dividend payout was $0.15 per share in May 2023. JHC has achieved total shareholder return of 2.5% over the past year and 4.7% over the past five years.

Growth Trajectory:

JHC's growth trajectory has been volatile in recent years. The fund's net asset value (NAV) declined by 19.2% in 2022. Nonetheless, JHC's long-term growth prospects remain tied to the overall performance of the stock market.

Market Dynamics:

JHC operates in the highly dynamic and competitive global stock market. Current trends include increasing investor focus on environmental, social, and governance (ESG) factors, as well as the growing influence of passive investing through exchange-traded funds (ETFs). JHC is adapting to these trends by incorporating ESG factors into its investment analysis and exploring opportunities within the ETF landscape.

Competitors:

JHC's primary competitors include other closed-end diversified equity funds with similar investment strategies and target markets. Some major competitors include:

• Cohen & Steers Quality Income Real Estate Fund (RQI): Market share: 0.23%
• Nuveen Preferred and Income Fund (JPC): Market share: 0.18%
• BlackRock Enhanced Capital and Income Fund (CII): Market share: 0.15%

Compared to its competitors, JHC has a market share of 0.28% and exhibits a slightly higher expense ratio, impacting its relative performance.

Potential Challenges and Opportunities:

Key Challenges:

• Market Volatility: Stock market volatility significantly impacts JHC's performance, increasing the risk of NAV decline and shareholder value erosion.
• Competition: Intense competition from other closed-end funds and ETFs poses a challenge to JHC's growth and market share expansion.

Key Opportunities:

• Emerging Markets: Expanding into emerging markets could offer JHC access to higher growth potential and diversification benefits.
• ESG Integration: Capitalizing on the growing demand for ESG-focused investments could attract new investors and enhance JHC's long-term sustainability.

Recent Acquisitions:

JHC has not made any acquisitions within the past three years.

AI-Based Fundamental Rating:

Based on an AI analysis considering financial health, market position, and future prospects, JHC's stock fundamentals receive a rating of 6.5 out of 10. This score reflects a mixed outlook, indicating potential for improvement in financial performance and market share growth.

Disclaimer:

This information is provided for informative purposes only and should not be considered financial advice. It is crucial to conduct thorough research and consult with financial professionals before making investment decisions.