John Hancock Preferred Income Fund III Preferred Income Fund III
Find Ratings Reports- Last Ratings Update:02/29/2024
- Price as of 02/29/2024 :$15.19
- Net Assets:$436 Million
- NAV:$14.27
- Premium6.45%
- Peer Rank:292 of 397
- Investment Rating:C
- Performance:C+
- RiskC+
We rate J Hancock Preferred Income III at C. Positive factors that influence this rating include a greater than above average total return and low price volatility. The fund invests approximately 4% of its assets in bonds and may be considered for investors seeking an Equity Income strategy.
Total return ranks above peers over the last three years. The J Hancock Preferred Income III has returned an annual rate of 6.79% since inception. More recently, the fund has generated a total return of 4.41% in the last five years, 4.84% in the last three years, and 9.89% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 45% of them. It has also outpaced 60% of its competitors on a three year basis and 49% of them over the last year for the period ending 2/29/2024. On a year to date basis, HPS has returned 8.36%.
Downside risk has been above average. HPS has a draw down risk of -38.96%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 18.1%. This fund has experienced a high level of volatility in its monthly performance over the last 36 months.
High expense ratio hinders performance. On total assets of $436.00 million, HPS maintains a high expense ratio compared to its Equity Income peers of 4.35% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As HPS is a closed end fund, it has no front end or back end load.
Manager tenure is a net positive but performance record lags managerial peers. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The J Hancock Preferred Income III has been managed by Joseph H. Bozoyan for the last 9 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than just 34% of other fund managers.