John Hancock
Preferred Income Fund
Quarterly portfolio holdings 10/31/2021
| Fund’s investments |
As of 10-31-21
(unaudited)
| Shares | Value | ||||
| Preferred securities 92.2% (63.6% of Total investments) | $503,230,049 | ||||
| (Cost $478,131,235) | |||||
| Communication services 7.1% | 38,685,925 | ||||
| Diversified telecommunication services 1.7% | |||||
| Qwest Corp., 6.750% | 360,000 | 9,471,600 | |||
| Wireless telecommunication services 5.4% | |||||
| Telephone & Data Systems, Inc., 6.000% | 270,825 | 7,101,032 | |||
| Telephone & Data Systems, Inc., 6.625% | 259,750 | 7,124,943 | |||
| U.S. Cellular Corp., 5.500% | 135,000 | 3,592,350 | |||
| U.S. Cellular Corp., 5.500% | 140,000 | 3,707,200 | |||
| U.S. Cellular Corp., 6.250% | 280,000 | 7,688,800 | |||
| Consumer discretionary 1.9% | 10,142,880 | ||||
| Internet and direct marketing retail 1.9% | |||||
| Qurate Retail, Inc., 8.000% | 73,500 | 8,024,730 | |||
| QVC, Inc., 6.250% | 81,000 | 2,118,150 | |||
| Consumer staples 2.4% | 13,299,000 | ||||
| Food products 2.4% | |||||
| Ocean Spray Cranberries, Inc., 6.250% (A) | 143,000 | 13,299,000 | |||
| Energy 1.9% | 10,308,150 | ||||
| Oil, gas and consumable fuels 1.9% | |||||
| Enbridge, Inc. (6.375% to 4-15-23, then 3 month LIBOR + 3.593%) (B) | 210,000 | 5,640,600 | |||
| NuStar Logistics LP (3 month LIBOR + 6.734%), 6.866% (C) | 185,000 | 4,667,550 | |||
| Financials 34.9% | 190,541,079 | ||||
| Banks 18.0% | |||||
| Bank of America Corp., 6.000% (B) | 134,281 | 3,574,560 | |||
| Bank of America Corp. (6.450% to 12-15-66, then 3 month LIBOR + 1.327%) (B) | 135,000 | 3,586,950 | |||
| Bank of America Corp., 7.250% (B)(D) | 8,500 | 12,173,870 | |||
| Citigroup Capital XIII (3 month LIBOR + 6.370%), 6.502% (B)(C) | 384,725 | 10,560,701 | |||
| Citigroup, Inc. (7.125% to 9-30-23, then 3 month LIBOR + 4.040%) | 318,337 | 8,942,086 | |||
| Fifth Third Bancorp, 6.000% (B)(D) | 234,293 | 6,250,937 | |||
| First Republic Bank, 4.000% (B) | 205,000 | 4,997,900 | |||
| First Republic Bank, 4.700% (B) | 164,175 | 4,401,532 | |||
| Fulton Financial Corp., 5.125% (B) | 140,075 | 3,686,774 | |||
| Pinnacle Financial Partners, Inc., 6.750% | 175,000 | 4,933,250 | |||
| Synovus Financial Corp. (6.300% to 6-21-23, then 3 month LIBOR + 3.352%) (B) | 188,000 | 4,925,600 | |||
| The PNC Financial Services Group, Inc. (6.125% to 5-1-22, then 3 month LIBOR + 4.067%) (B) | 135,000 | 3,472,200 | |||
| Wells Fargo & Company (6.625% to 3-15-24, then 3 month LIBOR + 3.690%) (B)(D) | 322,025 | 9,065,004 | |||
| Wells Fargo & Company, 7.500% (B)(D) | 9,500 | 14,439,715 | |||
| WesBanco, Inc. (6.750% to 11-15-25, then 5 Year CMT + 6.557%) | 114,000 | 3,274,080 | |||
| Western Alliance Bancorp, 6.250% | 7,900 | 199,159 | |||
| Capital markets 5.4% | |||||
| Brookfield Finance, Inc., 4.625% (B) | 125,000 | 3,178,750 | |||
| Morgan Stanley (6.375% to 10-15-24, then 3 month LIBOR + 3.708%) (B) | 235,000 | 6,725,700 | |||
| Morgan Stanley (6.875% to 1-15-24, then 3 month LIBOR + 3.940%) | 100,000 | 2,825,000 | |||
| Morgan Stanley (7.125% to 10-15-23, then 3 month LIBOR + 4.320%) (B)(D) | 595,424 | 16,910,042 | |||
| Consumer finance 1.4% | |||||
| Navient Corp., 6.000% (B) | 294,071 | 7,519,395 | |||
| 2 | JOHN HANCOCK PREFERRED INCOME FUND | QUARTERLY REPORT | SEE NOTES TO FUND’S INVESTMENTS |
| Shares | Value | ||||
| Financials (continued) | |||||
| Insurance 10.0% | |||||
| AEGON Funding Company LLC, 5.100% (B) | 324,625 | $8,745,398 | |||
| American Equity Investment Life Holding Company (6.625% to 9-1-25, then 5 Year CMT + 6.297%) | 158,375 | 4,534,276 | |||
| American Financial Group, Inc., 5.125% (B)(D) | 153,425 | 4,165,489 | |||
| American International Group, Inc., 5.850% (B) | 249,000 | 6,782,760 | |||
| Athene Holding, Ltd., Series A (6.350% to 6-30-29, then 3 month LIBOR + 4.253%) (B)(D) | 305,000 | 9,116,450 | |||
| Brighthouse Financial, Inc., 6.600% | 281,775 | 7,745,995 | |||
| Prudential PLC, 6.500% | 54,500 | 1,394,110 | |||
| Prudential PLC, 6.750% | 51,000 | 1,303,050 | |||
| RenaissanceRe Holdings, Ltd., 4.200% (B)(D) | 210,000 | 5,287,800 | |||
| The Hartford Financial Services Group, Inc. (7.875% to 4-15-22, then 3 month LIBOR + 5.596%) (B) | 58,227 | 1,517,396 | |||
| Unum Group, 6.250% | 147,500 | 4,026,750 | |||
| Thrifts and mortgage finance 0.1% | |||||
| Federal National Mortgage Association, Series S, 8.250% (E) | 80,000 | 278,400 | |||
| Health care 0.6% | 3,419,000 | ||||
| Health care equipment and supplies 0.6% | |||||
| Becton, Dickinson and Company, 6.000% | 65,000 | 3,419,000 | |||
| Industrials 1.0% | 5,221,537 | ||||
| Trading companies and distributors 1.0% | |||||
| WESCO International, Inc. (10.625% to 6-22-25, then 5 Year CMT + 10.325%) | 166,291 | 5,221,537 | |||
| Real estate 4.6% | 25,270,007 | ||||
| Equity real estate investment trusts 4.6% | |||||
| Diversified Healthcare Trust, 5.625% (B) | 821,432 | 19,919,726 | |||
| Pebblebrook Hotel Trust, 6.375% | 129,900 | 3,507,300 | |||
| Vornado Realty Trust, 5.400% | 70,775 | 1,842,981 | |||
| Utilities 37.8% | 206,342,471 | ||||
| Electric utilities 13.8% | |||||
| American Electric Power Company, Inc., 6.125% (B) | 160,000 | 7,956,800 | |||
| American Electric Power Company, Inc., 6.125% (B) | 140,000 | 7,229,600 | |||
| Duke Energy Corp., 5.750% (B) | 240,000 | 6,672,000 | |||
| Interstate Power & Light Company, 5.100% (B)(D) | 170,000 | 4,426,800 | |||
| NextEra Energy, Inc., 5.279% (B) | 65,000 | 3,540,550 | |||
| NextEra Energy, Inc., 6.219% (B)(D) | 394,250 | 21,604,900 | |||
| NSTAR Electric Company, 4.780% (B) | 15,143 | 1,559,729 | |||
| PG&E Corp., 5.500% | 45,000 | 5,089,500 | |||
| SCE Trust III (5.750% to 3-15-24, then 3 month LIBOR + 2.990%) (B) | 75,350 | 1,941,770 | |||
| The Southern Company, 6.750% (B) | 300,000 | 15,357,000 | |||
| Gas utilities 4.4% | |||||
| South Jersey Industries, Inc., 5.625% (B) | 239,275 | 6,398,214 | |||
| South Jersey Industries, Inc., 8.750% | 165,000 | 8,386,950 | |||
| Spire, Inc., 7.500% | 57,000 | 2,802,120 | |||
| UGI Corp., 7.250% | 61,300 | 6,223,789 | |||
| Independent power and renewable electricity producers 2.0% | |||||
| The AES Corp., 6.875% | 111,000 | 11,212,110 | |||
| Multi-utilities 17.6% | |||||
| Algonquin Power & Utilities Corp. (6.200% to 7-1-24, then 3 month LIBOR + 4.010%) | 354,930 | 9,913,195 | |||
| SEE NOTES TO FUND’S INVESTMENTS | QUARTERLY REPORT | JOHN HANCOCK PREFERRED INCOME FUND | 3 |
| Shares | Value | ||||
| Utilities (continued) | |||||
| Multi-utilities (continued) | |||||
| Algonquin Power & Utilities Corp. (6.875% to 10-17-23, then 3 month LIBOR + 3.677%) (B)(D) | 526,441 | $14,524,507 | |||
| CMS Energy Corp., 5.625% (B) | 225,000 | 6,012,000 | |||
| DTE Energy Company, 5.250% (B) | 240,000 | 6,280,800 | |||
| DTE Energy Company, 6.250% (B) | 394,200 | 19,899,216 | |||
| Integrys Holding, Inc. (6.000% to 8-1-23, then 3 month LIBOR + 3.220%) | 272,500 | 7,425,625 | |||
| NiSource, Inc. (6.500% to 3-15-24, then 5 Year CMT + 3.632%) (B)(D) | 344,000 | 9,673,280 | |||
| NiSource, Inc., 7.750% (B)(D) | 119,200 | 12,781,816 | |||
| Sempra Energy, 5.750% (B)(D) | 338,000 | 9,430,200 | |||
| Common stocks 8.4% (5.8% of Total investments) | $45,743,029 | ||||
| (Cost $51,275,746) | |||||
| Communication services 0.4% | 2,253,400 | ||||
| Diversified telecommunication services 0.4% | |||||
| Lumen Technologies, Inc. (B) | 190,000 | 2,253,400 | |||
| Energy 3.5% | 19,214,469 | ||||
| Oil, gas and consumable fuels 3.5% | |||||
| BP PLC, ADR (B)(D) | 172,500 | 4,966,275 | |||
| Equitrans Midstream Corp. (B) | 442,012 | 4,557,144 | |||
| The Williams Companies, Inc. (B)(D) | 345,000 | 9,691,050 | |||
| Utilities 4.5% | 24,275,160 | ||||
| Multi-utilities 4.5% | |||||
| Algonquin Power & Utilities Corp. | 159,000 | 7,666,980 | |||
| Dominion Energy, Inc. (B)(D) | 165,800 | 16,608,180 | |||
| Rate (%) | Maturity date | Par value^ | Value | ||
| Corporate bonds 43.7% (30.1% of Total investments) | $238,168,061 | ||||
| (Cost $230,374,089) | |||||
| Communication services 1.3% | 7,073,444 | ||||
| Wireless telecommunication services 1.3% | |||||
| SoftBank Group Corp. (6.875% to 7-19-27, then 5 Year ICE Swap Rate + 4.854%) (B)(F) | 6.875 | 07-19-27 | 6,955,000 | 7,073,444 | |
| Consumer discretionary 2.5% | 13,450,140 | ||||
| Automobiles 2.5% | |||||
| General Motors Financial Company, Inc. (5.700% to 9-30-30, then 5 Year CMT + 4.997%) (F) | 5.700 | 09-30-30 | 3,000,000 | 3,457,500 | |
| General Motors Financial Company, Inc. (6.500% to 9-30-28, then 3 month LIBOR + 3.436%) (F) | 6.500 | 09-30-28 | 8,922,000 | 9,992,640 | |
| Consumer staples 0.2% | 901,800 | ||||
| Food products 0.2% | |||||
| Land O’ Lakes, Inc. (A)(F) | 8.000 | 07-16-25 | 835,000 | 901,800 | |
| Energy 5.6% | 30,590,768 | ||||
| Oil, gas and consumable fuels 5.6% | |||||
| DCP Midstream LP (7.375% to 12-15-22, then 3 month LIBOR + 5.148%) (F) | 7.375 | 12-15-22 | 11,787,000 | 11,816,468 | |
| Energy Transfer LP (3 month LIBOR + 3.018%) (B)(C) | 3.143 | 11-01-66 | 8,800,000 | 7,268,800 | |
| Energy Transfer LP (6.625% to 2-15-28, then 3 month LIBOR + 4.155%) (F) | 6.625 | 02-15-28 | 8,000,000 | 7,750,000 | |
| MPLX LP (6.875% to 2-15-23, then 3 month LIBOR + 4.652%) (F) | 6.875 | 02-15-23 | 3,700,000 | 3,755,500 | |
| 4 | JOHN HANCOCK PREFERRED INCOME FUND | QUARTERLY REPORT | SEE NOTES TO FUND’S INVESTMENTS |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Financials 27.1% | $147,925,832 | ||||
| Banks 17.4% | |||||
| Bank of America Corp. (5.875% to 3-15-28, then 3 month LIBOR + 2.931%) (B)(F) | 5.875 | 03-15-28 | 8,510,000 | 9,526,690 | |
| Barclays PLC (7.750% to 9-15-23, then 5 Year U.S. Swap Rate + 4.842%) (B)(F) | 7.750 | 09-15-23 | 1,837,000 | 1,995,074 | |
| Barclays PLC (8.000% to 6-15-24, then 5 Year CMT + 5.672%) (F) | 8.000 | 06-15-24 | 3,226,000 | 3,596,990 | |
| Citizens Financial Group, Inc. (6.375% to 4-6-24, then 3 month LIBOR + 3.157%) (B)(F) | 6.375 | 04-06-24 | 7,500,000 | 7,884,375 | |
| Comerica, Inc. (5.625% to 7-1-25, then 5 Year CMT + 5.291%) (F) | 5.625 | 07-01-25 | 3,500,000 | 3,863,125 | |
| Huntington Bancshares, Inc. (5.625% to 7-15-30, then 10 Year CMT + 4.945%) (F) | 5.625 | 07-15-30 | 2,000,000 | 2,320,000 | |
| JPMorgan Chase & Co. (3 month LIBOR + 3.320%) (B)(C)(D)(F) | 3.451 | 01-01-22 | 5,230,000 | 5,232,559 | |
| JPMorgan Chase & Co. (4.600% to 2-1-25, then SOFR + 3.125%) (B)(D)(F) | 4.600 | 02-01-25 | 8,000,000 | 8,182,933 | |
| JPMorgan Chase & Co. (6.750% to 2-1-24, then 3 month LIBOR + 3.780%) (B)(F) | 6.750 | 02-01-24 | 6,000,000 | 6,558,240 | |
| Lloyds Banking Group PLC (7.500% to 6-27-24, then 5 Year U.S. Swap Rate + 4.760%) (B)(F) | 7.500 | 06-27-24 | 7,500,000 | 8,296,875 | |
| M&T Bank Corp. (3.500% to 9-1-26, then 5 Year CMT + 2.679%) (F) | 3.500 | 09-01-26 | 8,750,000 | 8,596,875 | |
| Societe Generale SA (5.375% to 11-18-30, then 5 Year CMT + 4.514%) (A)(F) | 5.375 | 11-18-30 | 6,100,000 | 6,481,250 | |
| SVB Financial Group (4.100% to 2-15-31, then 10 Year CMT + 3.064%) (F) | 4.100 | 02-15-31 | 5,500,000 | 5,391,870 | |
| SVB Financial Group (4.700% to 11-15-31, then 10 Year CMT + 3.064%) (F) | 4.700 | 11-15-31 | 4,270,000 | 4,339,388 | |
| The PNC Financial Services Group, Inc. (3.400% to 9-15-26, then 5 Year CMT + 2.595%) (F) | 3.400 | 09-15-26 | 3,500,000 | 3,451,875 | |
| U.S. Bancorp (3.700% to 1-15-27, then 5 Year CMT + 2.541%) (F) | 3.700 | 01-15-27 | 7,115,000 | 7,086,896 | |
| Wells Fargo & Company (5.900% to 6-15-24, then 3 month LIBOR + 3.110%) (B)(D)(F) | 5.900 | 06-15-24 | 2,000,000 | 2,132,320 | |
| Capital markets 2.3% | |||||
| The Charles Schwab Corp. (4.000% to 12-1-30, then 10 Year CMT + 3.079%) (B)(F) | 4.000 | 12-01-30 | 3,500,000 | 3,552,500 | |
| The Charles Schwab Corp. (4.000% to 6-1-26, then 5 Year CMT + 3.168%) (B)(F) | 4.000 | 06-01-26 | 4,750,000 | 4,888,463 | |
| The Charles Schwab Corp. (5.375% to 6-1-25, then 5 Year CMT + 4.971%) (B)(F) | 5.375 | 06-01-25 | 3,800,000 | 4,179,620 | |
| Consumer finance 2.2% | |||||
| American Express Company (3.550% to 9-15-26, then 5 Year CMT + 2.854%) (F) | 3.550 | 09-15-26 | 7,000,000 | 7,035,000 | |
| Discover Financial Services (6.125% to 6-23-25, then 5 Year CMT + 5.783%) (F) | 6.125 | 06-23-25 | 4,300,000 | 4,783,750 | |
| Diversified financial services 0.8% | |||||
| Enstar Finance LLC (5.750% to 9-1-25, then 5 Year CMT + 5.468%) | 5.750 | 09-01-40 | 4,000,000 | 4,220,000 | |
| Insurance 4.4% | |||||
| Markel Corp. (6.000% to 6-1-25, then 5 Year CMT + 5.662%) (F) | 6.000 | 06-01-25 | 2,500,000 | 2,750,000 | |
| MetLife, Inc. (5.875% to 3-15-28, then 3 month LIBOR + 2.959%) (B)(F) | 5.875 | 03-15-28 | 5,000,000 | 5,760,734 | |
| SBL Holdings, Inc. (6.500% to 11-13-26, then 5 Year CMT + 5.620%) (A)(F) | 6.500 | 11-13-26 | 7,350,000 | 7,239,750 | |
| SBL Holdings, Inc. (7.000% to 5-13-25, then 5 Year CMT + 5.580%) (A)(B)(F) | 7.000 | 05-13-25 | 8,536,000 | 8,578,680 | |
| Utilities 7.0% | 38,226,077 | ||||
| Electric utilities 5.1% | |||||
| Duke Energy Corp. (3.250% to 1-15-27, then 5 Year CMT + 2.321%) | 3.250 | 01-15-82 | 4,550,000 | 4,519,115 | |
| Edison International (5.375% to 3-15-26, then 5 Year CMT + 4.698%) (F) | 5.375 | 03-15-26 | 5,750,000 | 5,936,875 | |
| Emera, Inc. (6.750% to 6-15-26, then 3 month LIBOR + 5.440% to 6-15-46, then 3 month LIBOR + 6.190%) (B) | 6.750 | 06-15-76 | 3,224,000 | 3,784,589 | |
| Southern California Edison Company (6.250% to 2-1-22, then 3 month LIBOR + 4.199%) (B)(D)(F) | 6.250 | 02-01-22 | 8,000,000 | 8,051,759 | |
| The Southern Company (3.750% to 9-15-26, then 5 Year CMT + 2.915%) | 3.750 | 09-15-51 | 2,500,000 | 2,535,750 | |
| The Southern Company (4.000% to 10-15-25, then 5 Year CMT + 3.733%) (B)(D) | 4.000 | 01-15-51 | 3,100,000 | 3,232,370 | |
| Multi-utilities 1.9% | |||||
| CMS Energy Corp. (4.750% to 3-1-30, then 5 Year CMT + 4.116%) (B)(D) | 4.750 | 06-01-50 | 4,250,000 | 4,717,500 | |
| SEE NOTES TO FUND’S INVESTMENTS | QUARTERLY REPORT | JOHN HANCOCK PREFERRED INCOME FUND | 5 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Utilities (continued) | |||||
| Multi-utilities (continued) | |||||
| Dominion Energy, Inc. (5.750% to 10-1-24, then 3 month LIBOR + 3.057%) (B)(D) | 5.750 | 10-01-54 | 5,000,000 | $5,448,119 | |
| Par value^ | Value | ||||
| Short-term investments 0.7% (0.5% of Total investments) | $3,900,000 | ||||
| (Cost $3,900,000) | |||||
| Repurchase agreement 0.7% | 3,900,000 | ||||
| Repurchase Agreement with State Street Corp. dated 10-29-21 at 0.000% to be repurchased at $3,900,000 on 11-1-21, collateralized by $3,761,600 U.S. Treasury Notes, 2.500% due 5-15-24 (valued at $3,978,103) | 3,900,000 | 3,900,000 | |||
| Total investments (Cost $763,681,070) 145.0% | $791,041,139 | ||||
| Other assets and liabilities, net (45.0%) | (245,404,951) | ||||
| Total net assets 100.0% | $545,636,188 | ||||
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund unless otherwise indicated. | |
| ^All par values are denominated in U.S. dollars unless otherwise indicated. | |
| Security Abbreviations and Legend | |
| ADR | American Depositary Receipt |
| CMT | Constant Maturity Treasury |
| ICE | Intercontinental Exchange |
| LIBOR | London Interbank Offered Rate |
| SOFR | Secured Overnight Financing Rate |
| (A) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
| (B) | All of a portion of this security is pledged as collateral pursuant to the Credit Facility Agreement. Total collateral value at 10-31-21 was $465,609,814. A portion of the securities pledged as collateral were loaned pursuant to the Credit Facility Agreement. The value of securities on loan amounted to $208,651,008. |
| (C) | Variable rate obligation. The coupon rate shown represents the rate at period end. |
| (D) | All or a portion of this security is on loan as of 10-31-21, and is a component of the fund’s leverage under the Credit Facility Agreement. |
| (E) | Non-income producing security. |
| (F) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. |
The fund had the following country
composition as a percentage of total investments on 10-31-21:
| United States | 88.1% |
| Canada | 5.7% |
| United Kingdom | 2.7% |
| Bermuda | 1.8% |
| Other countries | 1.7% |
| TOTAL | 100.0% |
| 6 | JOHN HANCOCK PREFERRED INCOME FUND | QUARTERLY REPORT | SEE NOTES TO FUND’S INVESTMENTS |
DERIVATIVES
FUTURES
| Open contracts | Number of contracts | Position | Expiration date | Notional basis^ | Notional value^ | Unrealized appreciation (depreciation) |
| 10-Year U.S. Treasury Note Futures | 640 | Short | Dec 2021 | $(85,113,836) | $(83,650,000) | $1,463,836 |
| $1,463,836 |
^ Notional basis refers to the
contractual amount agreed upon at inception of open contracts; notional value represents the current value of the open contract.
SWAPS
| Interest rate swaps | ||||||||||
| Counterparty (OTC)/ Centrally cleared | Notional amount | Currency | Payments made | Payments received | Fixed payment frequency | Floating payment frequency | Maturity date | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value |
| Centrally cleared | 73,000,000 | USD | Fixed 2.136% | USD 3 month LIBOR BBA(a) | Semi-Annual | Quarterly | Oct 2022 | — | $(1,340,685) | $(1,340,685) |
| — | $(1,340,685) | $(1,340,685) | ||||||||
| (a) | At 10-31-21, the 3 month LIBOR was 0.132%. |
| Derivatives Currency Abbreviations | |
| USD | U.S. Dollar |
| Derivatives Abbreviations | |
| BBA | The British Banker’s Association |
| LIBOR | London Interbank Offered Rate |
| OTC | Over-the-counter |
| SEE NOTES TO FUND’S INVESTMENTS | QUARTERLY REPORT | JOHN HANCOCK PREFERRED INCOME FUND | 7 |
| Notes to Fund’s investments (unaudited) |
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other
disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the
NYSE pursuant to the fund’s Valuation Policies and Procedures.
In order to value the securities,
the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal
market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Debt obligations are typically
valued based on evaluated prices provided by an independent pricing vendor. Independent pricing vendors utilize matrix pricing, which takes into account factors such as institutional-size trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Futures contracts whose settlement prices are determined as of the
close of the NYSE are typically valued based on the settlement price while other futures contracts are typically valued at the last traded price on the exchange on which they trade. Swaps are generally valued using
evaluated prices obtained from an independent pricing vendor.
In certain instances, the Pricing
Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as
scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and
assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of
Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for
such securities existed.
The fund uses a three-tier hierarchy
to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities,
including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment
speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities
valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in
determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the
risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the
values by input classification of the fund’s investments as of October 31, 2021, by major security category or type:
| Total value at 10-31-21 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
| Investments in securities: | ||||
| Assets | ||||
| Preferred securities | ||||
| Communication services | $38,685,925 | $38,685,925 | — | — |
| Consumer discretionary | 10,142,880 | 10,142,880 | — | — |
| Consumer staples | 13,299,000 | — | $13,299,000 | — |
| Energy | 10,308,150 | 10,308,150 | — | — |
| Financials | 190,541,079 | 190,541,079 | — | — |
| Health care | 3,419,000 | 3,419,000 | — | — |
| Industrials | 5,221,537 | 5,221,537 | — | — |
| Real estate | 25,270,007 | 25,270,007 | — | — |
| Utilities | 206,342,471 | 198,916,846 | 7,425,625 | — |
| Common stocks | 45,743,029 | 45,743,029 | — | — |
| Corporate bonds | 238,168,061 | — | 238,168,061 | — |
| Short-term investments | 3,900,000 | — | 3,900,000 | — |
| Total investments in securities | $791,041,139 | $528,248,453 | $262,792,686 | — |
| Derivatives: | ||||
| Assets | ||||
| Futures | $1,463,836 | $1,463,836 | — | — |
| Liabilities | ||||
| Swap contracts | (1,340,685) | — | $(1,340,685) | — |
For additional information on the
fund’s significant accounting policies and risks, please refer to the fund’s most recent semiannual or annual shareholder report and prospectus.
| 8 | | |