In plain terms — John Hancock Preferred Income Fund
Shares currently cost about 4.3% less than the value of the assets behind them (a discount).
Over the past year it has averaged a 3.4% premium, so today's level is unusually wide for this fund (Z-score -2.4). That describes the past; it does not predict where the discount goes next.
It pays regular distributions worth about 11.0% a year of the share price (10.5% of the assets). That is a payout rate, not a return: part of it may be capital being handed back.
Because the shares trade below the value of their assets, each dollar of reinvested distributions buys about $1.04 of assets — a ReinvestCapture™ rate of 11.5%, more than the payout rate itself. That is buying power, not a return.
The assets themselves fell 4.4% over the past year including distributions (NAV total return).
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Price and NAV, past year
Snapshot
Valuation vs. history
| Window | Average prem/disc | Std. dev. | Z-score | Observations |
|---|---|---|---|---|
| 3 months | +3.47% | 3.66% | -1.73 | 55 |
| 6 months | +3.67% | 2.80% | -2.32 | 108 |
| 1 year | +3.37% | 2.60% | -2.40 | 206 |
| 3 years | +3.25% | — | — | — |
| 5 years | +2.46% | — | — | — |
Current contemporaneous premium/discount -2.85% (close Oct 14, 2026 vs NAV Oct 13, 2026). 1-year range -3.10% to +7.50%. A negative Z-score means a wider discount than the window average — not that the fund is undervalued.
Performance
| Series | 1M | 3M | YTD | 1Y | 3Y (ann.) | 5Y (ann.) |
|---|---|---|---|---|---|---|
| Market price return | -10.47% | -17.71% | -17.60% | -22.35% | -0.76% | -9.18% |
| Market price total return | -9.66% | -15.64% | -11.56% | -14.78% | +8.67% | -0.68% |
| NAV return | -3.77% | -7.75% | -11.36% | -13.11% | +0.50% | -7.44% |
| NAV total return | -2.92% | -5.38% | -4.68% | -4.37% | +10.37% | +1.47% |
Through Oct 14, 2026. Total return reinvests distributions at the series value on the ex-date. Cumulative ≤ 1 year, annualised beyond.
About the fund
The John Hancock Preferred Income Fund operates as a closed-end, balanced mutual fund, managed by John Hancock Investment Management LLC, with additional oversight from John Hancock Asset Management. This U.S.-domiciled fund primarily invests in the public equity and fixed-income markets within the United States, seeking opportunities across a diverse range of corporate sectors. Its portfolio predominantly comprises preferred value stocks, convertible preferred securities, and investment-grade fixed-income instruments, which must hold an investment-grade rating or higher from Moody's or Standard & Poor's. The fund measures its performance against two industry benchmarks: the Bank of America Merrill Lynch Hybrid Preferred Securities Index and the Barclays U.S. Aggregate Bond Index. It was established on August 27, 2002.
CEF Explorer research page for John Hancock Preferred Income Fund. Figures carry their own dates and sources; a discount to NAV does not guarantee convergence or any return. This is not investment advice.