Printer Friendly

PATRIOT PREFERRED DIVIDEND FUND MAKES DEBUT

 BOSTON, May 21 /PRNewswire/ -- Expanding its family of closed-end investments, John Hancock Mutual Funds announced today the formation of Patriot Preferred Dividend Fund, offering 6.5 million shares at an issue price of $15. Common shares will be listed on the New York Stock Exchange under the symbol PPF.
 Edward J. Boudreau, Jr., chairman and CEO of John Hancock Mututal Funds, made the announcement, pointing out the new fund brings the number of closed-end funds under Hancock management to eight. The fund is managed by Andrew F. St. Pierre, who manages four other funds in Hancock's Patriot closed-end line-up.
 Patroit Preferred Dividend Fund's investment objective is to provide a high level of current income, consistent with preservation of capital, for holders of common shares. The fund intends to offer preferred shares amounting to approximately 33 percent of the fund's total capital within 90 days of the completion of the initial offering. The dividend rate on the preferred stock of the fund will be reset through an auction process every 49 days.
 According to St. Pierre, the fund will invest at least 80 percent of its assets in the preferred stock of a broad range of industry sectors, including financial services and utilities as well as other regulated industries. "This will give an added measure of flexibility in responding to market sector and interest rate changes," says St. Pierre.
 The fund will seek securities that are undervalued relative to similar ones in the market. At the same time, the fund intends to invest in high quality investments, including preferred stocks and other debt securities that are investment grade. The fund also has a distinctive capital structure -- with the intended 33 percent of total capital from the issuance of preferred shares -- that will enable it to invest in securities that produce income greater than the short-term coupon rate paid on the preferred shares, thereby enhancing the yield for holders of common shares.
 In addition, because of the make-up if the fund's holdings -- at least 65 percent of total assets will be invested in dividend paying securities -- qualified institutional shareholders may take advantage of the dividends received deduction (DRD) provision of the U.S. Tax Code that allows corporate investors a significant tax deduction on fund dividends.
 John Hancock manages four other Patriot funds, also traded on the New York Stock Exchange, and three other closed-end funds with combined assets of $1.3 billion.
 The underwriters for Patriot Preferred Dividend Fund are Oppenheimer & Co., Inc., Salomon Brothers Inc., Advest, Inc., Robert W. Baird & Co., Incorporated, Fahnestock & Co., Inc., Gruntal & Co. Incorporated, Legg Mason Wood Walker Incorporated, McDonald & Company Securities, Inc., Morgan Keegan & Company, Inc., Stifel, Nicolaus & Company, Incorporated, Sutro & Co., Incorporated, Tucker Anthony Incorporated and Wedbush Morgan Securities Inc.
 -0- 5/21/93
 /CONTACT: Bill Benintende of John Hancock Mututal Fund, 617-375-1883/
 (PPF)


CO: John Hancock Mututal Fund ST: Massachusetts IN: FIN SU: PDT

SM -- NE002 -- 1124 05/21/93 10:07 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 21, 1993
Words:490
Previous Article:/REPEATING FROM YESTERDAY/ DIGI INTERNATIONAL INC. MAKES BUSINESS WEEK MAGAZINE'S LIST OF HOT GROWTH COMPANIES
Next Article:ROXBURY MAN INDICTED FOR BANK ROBBERY
Topics:


Related Articles
John Hancock Advisers Releases Portfolio Information for Closed-End Funds.
John Hancock Advisers Releases Portfolio Information for Closed-End Funds.
John Hancock Advisers Releases Portfolio Information For Closed-End Funds.
John Hancock Advisers Releases Portfolio Information For Closed-End Funds.
John Hancock Advisers Releases Portfolio Information For Closed-End Funds.
John Hancock Advisers Releases Portfolio Information For Closed-End Funds.
John Hancock Advisers Releases Portfolio Information for Closed-End Funds.
John Hancock Advisers Releases Portfolio Information for Closed-End Funds.
John Hancock Advisers Declares Monthly Dividends.
John Hancock Announces Redemption Schedule for Auction Preferred Securities of Five Closed-End Funds.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters