Bargain shopping at its best John Hancock closed end funds

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					                                                 Bargain shopping
                                                             at its best
                                                                                    John Hancock closed-end funds


                                         A look at the benefits of closed-end fund discounts
                                         There is no definitive answer as to why closed-end funds typically trade at
                                         discounts to their net asset values (NAVs). While investors tend to view the
                                         discount as a disadvantage, it can in fact be beneficial.

                                         Investors often consider the income potential of closed-end funds when deciding
                                         to invest. Closed-end fund income and capital gains distributions are always made
                                         on a per share basis. When investors purchase closed-end fund shares trading at a
                                         discount to NAV, they receive a higher yield on their investment. Sounds too good
                                         to be true? The example below will show you it’s not.




  Assume Joe and Mary each purchase 1,000 shares in a closed-end income fund paying steady monthly dividends of $0.05.
  Joe invests at a NAV of $10 per share, at a total cost of $10,000. Mary purchases the fund at a 20% discount to NAV, at a
  total cost of $8,000.


  Which investor will earn a greater return?

                                                Joe                           Mary                   When Mary purchases closed-end fund
                                        Closed-end at NAV          Closed-end at 20% discount        shares at a 20% discount to NAV, she is

                                             $10,000                        $8,000                   able to buy the same number of shares
 Total investment*
                                      (1,000 @ $10 per share)        (1,000 @ $8 per share)
                                                                                                     as Joe did, but for $2,000 less, and
 Monthly dividend payment
                                               $50                            $50                    receive the same monthly dividend
 at $0.05 per share
                                                                                                     payment as Joe.
                                                Joe                           Mary
                                        Closed-end at NAV          Closed-end at 20% discount

 Price per share*                         $10 per share                  $8 per share                Based on the example above, we can

                                                                                                     further demonstrate the benefit of
 Annual dividend                               $0.60                         $0.60
                                                                                                     closed-end fund discounts by looking at
 Annual dividend yield                         6.0%                          7.5%                    Joe’s and Mary’s annual dividend yield.


* All commissions are excluded.
   long-term benefits

   Many investors purchase closed-end              Long-term benefit of investing at a discount
   fund shares for their ability to pay             $30,000
   dividends on a monthly, quarterly,
                                                                       $10,000 investment with a 20% discount
                                                                                                                                                                $26,089
   semiannual or annual basis. Whether                                 $10,000 investment without discount
                                                                                                                                                                $23,789
   investors choose to reinvest their
   dividends or take them in cash, the              $20,000

   long-term benefit of investing in a
   closed-end fund trading at a discount
   can be extremely profitable, as
                                                    $10,000
   illustrated in the chart on the right.                                                                  5 years                                   10 years

                                                     The example is for illustrative purposes only. It assumes an annual rate of return of 10%, with 5% in dividends
   Joe and Mary each invest $10,000                  reinvested in the fund and 5% in capital appreciation. All taxes and commissions are excluded. This example is
                                                     not indicative of John Hancock’s closed-end funds or typical net asset values and market prices.
   in a closed-end fund. Joe invests at
   a NAV of $10 per share and receives
                                                                                                   Ticker                    Inception Distribution               Listed
   1,000 shares. Mary purchases the                      John Hancock Closed-End Funds
                                                                                                  symbol
                                                                                                                     CUSIP
                                                                                                                                year    schedule                exchange
   fund at a 20% discount to NAV for
                                                         Bank and Thrift Opportunity Fund           Bto       409735107        1994          Quarterly           Nyse
   $8 per share. She receives 1,250
   shares. The example assumes both                      Income Securities Trust                     JHs      410123103        1973          Quarterly           Nyse

   funds consistently pay annual dividends
                                                         Investors Trust                             JHI      410142103        1971          Quarterly           Nyse
   of $0.50 per share which are reinvested
   in the funds and have identical                       Patriot Premium Dividend Fund II           PDt       41013t105        1989          Monthly             Nyse

   performance records, with both funds                  Preferred Income Fund                       HPI     41013W108         2002          Monthly             Nyse
   appreciating 5% per year.
                                                         Preferred Income Fund II                   HPF       41013X106        2002          Monthly             Nyse
   Although Joe and Mary both invest an
                                                         Preferred Income Fund III                  HPs       41021P103        2003          Monthly             Nyse
   initial $10,000, the discount allows
   Mary to purchase additional shares                    Tax-Advantaged Dividend
                                                                                                    HtD       41013v100        2004          Monthly             Nyse
                                                         Income Fund
   and receive more in dividend income.
   Over a 10-year period, Mary would                     Tax-Advantaged Global
                                                                                                    Hty       41013P749        2007          Quarterly           Nyse
                                                         Shareholder Yield
   receive an additional $2,300.




   If you are interested in investing in any of the John Hancock closed-end funds, please contact your
   financial professional. For current fund information, including daily NAVs and market prices, or to
   request closed-end fund literature, call 1-800-843-0090 or visit our Web site at www.jhfunds.com.


Closed-end fund shares are not redeemable, but instead are traded in the secondary market and frequently trade at a discount to
net asset value. Specialized funds may carry additional risks.
Not FDIC INsureD. May lose value. No BaNk guaraNtee. Not INsureD By aNy goverNMeNt ageNCy.


                                          John Hancock Funds, LLC
                                          MeMBer FINra
                                          601 Congress street n Boston, Ma 02210-2805
                                          1-800-225-6020 n www.jhfunds.com                                                                                rMs34 11/07