John Hancock Tax-Advantaged Dividend IncomeFind Ratings Reports
- Last Ratings Update:09/30/2016
- Price as of 09/30/2016 :$24.44
- Net Assets:$894 Million
- Peer Rank:4 of 267
- Investment Rating:A+
We rate J Hancock Tax Advantage Div Income at A+. This overall rating indicates it is among the top 10% of all closed end funds in its peer group. Positive factors that influence this rating include a well above average total return and low price volatility. The fund invests approximately 61% of its assets in stocks and may be considered for investors seeking an Equity Income strategy.
POSITIVES AND RISKS
Total return ranks very high in comparison with peers over the last three years. The J Hancock Tax Advantage Div Income has returned an annual rate of 10.33% since inception. More recently, the fund has generated a total return of 17.15% in the last five years, 19.86% in the last three years, and 32.71% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 90% of them. It has also outpaced 93% of its competitors on a three year basis and 93% of them over the last year for the period ending 9/30/2016. On a year to date basis, HTD has returned 23.72%.
Downside risk has been below average. HTD has a draw down risk of -13.57%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 11.3%. This fund has had moderate volatility in its monthly performance over the last 36 months. As of 9/30/2016, the fund was trading at a price of $24.44, which is 3.2% below its 52-week high of $25.25 and 4.4% above its 52-week low of $23.42.
High expense ratio hinders performance. On total assets of $894.00 million, HTD maintains a high expense ratio compared to its Equity Income peers of 1.73% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As HTD is a closed end fund, it has no front end or back end load.
Manager tenure and performance record are net positives. 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 Tax Advantage Div Income has been managed by Gregory K. Phelps for the last 13 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than 98% of other fund managers.