Regulatory Filings • Sep 26, 2016
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811- 21416
John Hancock Tax-Advantaged Dividend Income Fund (Exact name of registrant as specified in charter)
601 Congress Street, Boston, Massachusetts 02210 (Address of principal executive offices) (Zip code)
Salvatore Schiavone, Treasurer
601 Congress Street
Boston, Massachusetts 02210 (Name and address of agent for service)
Registrant's telephone number, including area code: 617-663-4497
| Date of fiscal year end: | October 31 |
|---|---|
| Date of reporting period: | July 31, 2016 |
ITEM 1. SCHEDULE OF INVESTMENTS
John Hancock
Tax-Advantaged Dividend Income Fund
Quarterly portfolio holdings 7/31/16
Fund's investments Tax-Advantaged Dividend Income Fund
| As of 7-31-16 (unaudited) | Shares | Value |
|---|---|---|
| Common stocks 70.1% (48.4% of Total investments) | $667,462,052 | |
| (Cost $458,546,359) | ||
| Energy 13.3% | 127,026,524 | |
| Oil, gas and consumable fuels 13.3% | ||
| BP PLC, ADR | 567,500 | 19,522,000 |
| Chevron Corp. | 40,000 | 4,099,200 |
| ConocoPhillips | 195,000 | 7,959,900 |
| Kinder Morgan, Inc. | 232,000 | 4,716,560 |
| ONEOK, Inc. (L)(Z) | 500,000 | 22,395,000 |
| Royal Dutch Shell PLC, ADR, Class A | 478,584 | 24,785,865 |
| Spectra Energy Corp. (L)(Z) | 1,130,442 | 40,661,999 |
| TOTAL SA, ADR | 60,000 | 2,886,000 |
| Materials 0.1% | 842,400 | |
| Metals and mining 0.1% | ||
| Freeport-McMoRan, Inc. (L)(Z) | 65,000 | 842,400 |
| Telecommunication services 2.5% | 23,372,697 | |
| Diversified telecommunication services 1.9% | ||
| AT&T, Inc. | 250,000 | 10,822,500 |
| Verizon Communications, Inc. | 129,160 | 7,156,756 |
| Wireless telecommunication services 0.6% | ||
| Vodafone Group PLC, ADR (L)(Z) | 174,545 | 5,393,441 |
| Utilities 54.2% | 516,220,431 | |
| Electric utilities 26.3% | ||
| Alliant Energy Corp. | 390,000 | 15,697,500 |
| American Electric Power Company, Inc. (L)(Z) | 590,000 | 40,887,000 |
| Avangrid, Inc. (L)(Z) | 475,000 | 21,441,500 |
| Duke Energy Corp. (L)(Z) | 320,000 | 27,388,800 |
| Entergy Corp. | 298,000 | 24,254,220 |
| Eversource Energy (L)(Z) | 490,000 | 28,660,100 |
| FirstEnergy Corp. (L)(Z) | 582,500 | 20,340,900 |
| OGE Energy Corp. (C)(L) | 540,000 | 17,371,800 |
| Pinnacle West Capital Corp. | 50,000 | 3,943,500 |
| PPL Corp. | 500,000 | 18,855,000 |
| The Southern Company (L)(Z) | 375,000 | 20,062,500 |
| Xcel Energy, Inc. (L)(Z) | 270,000 | 11,874,600 |
| Gas utilities 5.0% | ||
| Atmos Energy Corp. (L)(Z) | 350,000 | 27,926,500 |
| ONE Gas, Inc. | 170,000 | 11,043,200 |
| Questar Corp. (L)(Z) | 350,000 | 8,809,500 |
| Independent power and renewable electricity producers 0.1% | ||
| Talen Energy Corp. (I) | 62,453 | 849,361 |
| Multi-utilities 22.8% | ||
| Ameren Corp. (L)(Z) | 540,000 | 28,317,600 |
| Black Hills Corp. | 440,000 | 27,742,000 |
| CenterPoint Energy, Inc. (L)(Z) | 1,020,000 | 24,398,400 |
| Dominion Resources, Inc. (L)(Z) | 400,000 | 31,208,000 |
| DTE Energy Company (L)(Z) | 250,000 | 24,380,000 |
| National Grid PLC, ADR | 255,000 | 18,474,750 |
| NiSource, Inc. | 770,000 | 19,758,200 |
| Public Service Enterprise Group, Inc. | 70,000 | 3,220,700 |
2SEE NOTES TO FUND'S INVESTMENTS
Tax-Advantaged Dividend Income Fund
| Shares | Value | |
|---|---|---|
| Utilities (continued) | ||
| Multi-utilities (continued) | ||
| Vectren Corp. | 760,000 | 39,314,800 |
| Preferred securities 73.2% (50.5% of Total investments) | $696,724,442 | |
| (Cost $633,138,366) | ||
| Energy 4.3% | 40,538,990 | |
| Oil, gas and consumable fuels 4.3% | ||
| Kinder Morgan, Inc., 9.750% | 830,717 | 40,538,990 |
| Financials 43.2% | 411,028,667 | |
| Banks 26.5% | ||
| Bank of America Corp., 6.375% (Z) | 139,000 | 3,602,880 |
| Bank of America Corp., 6.500% (Z) | 153,476 | 4,196,034 |
| Bank of America Corp., 6.625% (Z) | 355,000 | 9,460,750 |
| Bank of America Corp., Depositary Shares, Series D, 6.204% (Z) | 230,000 | 5,950,100 |
| Barclays Bank PLC, Series 5, 8.125% (C) | 610,000 | 15,945,400 |
| BB&T Corp., 5.625% | 606,000 | 15,949,920 |
| BB&T Corp. (Callable 11-1-17 ), 5.200% (Z) | 225,000 | 5,856,750 |
| BB&T Corp. (Callable 6-1-18 ), 5.200% | 480,000 | 12,801,600 |
| Citigroup, Inc. (6.875% to 11-15-23 , then 3 month LIBOR + 4.130%) (Z) | 35,000 | 1,041,950 |
| Citigroup, Inc. (7.125% to 9-30-23 , then 3 month LIBOR + 4.040%) (Z) | 163,997 | 4,933,030 |
| Citigroup, Inc., Depositary Shares, Series AA, 8.125% (L)(Z) | 270,400 | 7,711,808 |
| HSBC Holdings PLC, 8.000% (C) | 325,000 | 8,719,750 |
| HSBC Holdings PLC, 8.125% (Z) | 50,000 | 1,392,000 |
| ING Groep NV, 6.200% | 109,100 | 2,820,235 |
| ING Groep NV, 7.050% | 150,000 | 3,960,000 |
| JPMorgan Chase & Co., 5.450% (Z) | 245,000 | 6,333,250 |
| JPMorgan Chase & Co., 5.500% (Z) | 980,000 | 25,372,200 |
| JPMorgan Chase & Co., 6.100% (Z) | 510,000 | 13,826,100 |
| JPMorgan Chase & Co., 6.125% (Z) | 98,888 | 2,679,865 |
| JPMorgan Chase & Co., 6.700% (Z) | 30,000 | 836,700 |
| Royal Bank of Scotland Group PLC, Series L, 5.750% | 760,000 | 19,038,000 |
| Santander Holdings USA, Inc., Series C, 7.300% | 120,000 | 3,114,000 |
| The PNC Financial Services Group, Inc., 5.375% (C) | 280,000 | 7,288,400 |
| The PNC Financial Services Group, Inc. (6.125% to 5-1-22 , then 3 month LIBOR + 4.067%) (Z) | 40,000 | 1,212,800 |
| U.S. Bancorp, 5.150% (C) | 720,000 | 19,483,200 |
| U.S. Bancorp (6.500% to 1-15-22 , then 3 month LIBOR + 4.468%) (Z) | 296,000 | 9,078,320 |
| Wells Fargo & Company, 6.000% (Z) | 215,000 | 5,873,800 |
| Wells Fargo & Company, 8.000% (Z) | 1,200,000 | 33,900,000 |
| Capital markets 15.1% | ||
| Deutsche Bank Contingent Capital Trust II, 6.550% (C) | 310,000 | 7,787,200 |
| Deutsche Bank Contingent Capital Trust III, 7.600% | 797,893 | 20,497,871 |
| Morgan Stanley, 6.625% (Z) | 1,057,915 | 28,986,871 |
| Morgan Stanley (6.375% to 10-15-24 , then 3 month LIBOR + 3.708%) | 220,000 | 6,162,200 |
| Morgan Stanley (7.125% to 10-15-23 , then 3 month LIBOR + 4.320%) | 300,000 | 9,048,000 |
| State Street Corp., 5.250% | 910,000 | 23,942,100 |
| State Street Corp., 6.000% | 192,065 | 5,385,503 |
| State Street Corp. (5.900% to 3-15-24 , then 3 month LIBOR + 3.108%) (Z) | 25,000 | 735,750 |
| The Bank of New York Mellon Corp., 5.200% | 425,000 | 11,232,750 |
| The Goldman Sachs Group, Inc., 5.950% (C) | 950,000 | 24,576,500 |
| The Goldman Sachs Group, Inc., Series B, 6.200% | 215,000 | 5,650,200 |
SEE NOTES TO FUND'S INVESTMENTS 3
Tax-Advantaged Dividend Income Fund
| Shares | Value | |
|---|---|---|
| Financials (continued) | ||
| Consumer finance 1.0% | ||
| Capital One Financial Corp., 6.200% | 80,000 | 2,198,400 |
| Capital One Financial Corp., 6.700% (Z) | 126,569 | 3,626,202 |
| SLM Corp., Series A, 6.970% | 74,000 | 3,700,000 |
| Insurance 0.4% | ||
| Aegon NV, 6.500% | 96,512 | 2,561,428 |
| Prudential Financial, Inc., 5.750% (Z) | 40,000 | 1,072,800 |
| Real estate investment trusts 0.2% | ||
| Ventas Realty LP, 5.450% | 45,000 | 1,226,250 |
| Thrifts and mortgage finance 0.0% | ||
| Federal National Mortgage Association, Series S, 8.250% (I) | 60,000 | 259,800 |
| Health care 2.6% | 24,331,199 | |
| Pharmaceuticals 2.6% | ||
| Teva Pharmaceutical Industries, Ltd., 7.000% | 27,400 | 24,331,199 |
| Industrials 0.3% | 3,297,500 | |
| Machinery 0.3% | ||
| Stanley Black & Decker, Inc., 5.750% (L)(Z) | 125,000 | 3,297,500 |
| Telecommunication services 5.2% | 49,720,080 | |
| Diversified telecommunication services 3.5% | ||
| Qwest Corp., 6.125% | 730,000 | 18,782,900 |
| Qwest Corp., 7.375% | 366,000 | 9,464,760 |
| Qwest Corp., 7.500% | 120,000 | 3,075,600 |
| Verizon Communications, Inc., 5.900% (Z) | 60,000 | 1,677,000 |
| Wireless telecommunication services 1.7% | ||
| Telephone & Data Systems, Inc., 5.875% | 340,000 | 8,806,000 |
| Telephone & Data Systems, Inc., 6.625% | 30,000 | 805,500 |
| Telephone & Data Systems, Inc., 6.875% | 243,000 | 6,327,720 |
| United States Cellular Corp., 6.950% | 30,000 | 780,600 |
| Utilities 17.6% | 167,808,006 | |
| Electric utilities 15.4% | ||
| Duke Energy Corp., 5.125% | 210,000 | 5,565,000 |
| Entergy Arkansas, Inc., 4.560% | 9,388 | 933,226 |
| Entergy Arkansas, Inc., 6.450% | 135,000 | 3,651,750 |
| Entergy Mississippi, Inc., 4.920% | 8,190 | 789,823 |
| Entergy Mississippi, Inc., 6.250% (C) | 197,500 | 5,186,350 |
| Gulf Power Company, 5.600% | 100,155 | 10,378,141 |
| Interstate Power & Light Company, 5.100% | 1,380,000 | 38,157,000 |
| Mississippi Power Company, 5.250% | 257,500 | 6,682,125 |
| NextEra Energy Capital Holdings, Inc., 5.000% | 110,000 | 2,812,700 |
| NextEra Energy Capital Holdings, Inc., 5.700% | 225,000 | 5,928,750 |
| PPL Capital Funding, Inc., 5.900% | 1,010,000 | 27,037,700 |
| SCE Trust I, 5.625% | 143,777 | 3,782,773 |
| SCE Trust II, 5.100% | 1,275,000 | 33,558,000 |
| The Southern Company, 6.250% | 80,000 | 2,240,000 |
| Multi-utilities 2.2% | ||
| BGE Capital Trust II, 6.200% | 247,000 | 6,523,270 |
| DTE Energy Company, 5.250% (C) | 165,000 | 4,257,000 |
| DTE Energy Company, 6.500% | 175,000 | 4,567,500 |
| Integrys Holding, Inc. (6.000% to 8-1-23 , then 3 month LIBOR + 3.220%) | 210,000 | 5,756,898 |
4SEE NOTES TO FUND'S INVESTMENTS
Tax-Advantaged Dividend Income Fund
| Rate (% | ) | Maturity date | Par value^ | Value | ||
|---|---|---|---|---|---|---|
| Corporate bonds 0.3% (0.2% of Total investments) | $3,345,000 | |||||
| (Cost $3,000,000) | ||||||
| Utilities 0.3% | 3,345,000 | |||||
| Electric utilities 0.3% | ||||||
| Southern California Edison Company (6.250% to 2-1-22 , then 3 month LIBOR + 4.199%) (Q) | 6.250 | 02-01-22 | 3,000,000 | 3,345,000 | ||
| Yield | *(%) | Maturity date | Par value^ | Value | ||
| Short-term investments 1.3% (0.9% of Total investments) | $12,022,000 | |||||
| (Cost $12,022,000) | ||||||
| U.S. Government Agency 0.6% | 5,886,000 | |||||
| Federal Home Loan Bank Discount Note | 0.150 | 08-01-16 | 5,886,000 | 5,886,000 | ||
| Par value^ | Value | |||||
| Repurchase agreement 0.7% | 6,136,000 | |||||
| Repurchase Agreement with State Street Corp. dated 7-29-16 at 0.030% to be repurchased at $6,136,015 on 8-1-16 , collateralized by $6,210,000 Federal National Mortgage Association, | ||||||
| 1.985% due 9-29-21 (valued at $6,264,338, including interest). | 6,136,000 | 6,136,000 | ||||
| Total investments (Cost $1,106,706,725) 144.9% | $1,379,553,494 | |||||
| Other assets and liabilities, net (44.9%) | ($427,678,948 | ) | ||||
| Total net assets 100.0% | $951,874,546 |
| 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. | |
| Key to Security Abbreviations and Legend | |
| ADR | American Depositary Receipts |
| LIBOR | London Interbank Offered Rate |
| (C) | All or a portion of this security is segregated as collateral for
options. Total collateral value at 7-31-16 was $105,759,585. |
| (I) | Non-income producing security. |
| (L) | A portion of this security is on loan as of 7-31-16 , and is a component of the fund's leverage under the Liquidity
Agreement. The value of securities on loan amounted to $343,187,372. |
| (Q) | Perpetual bonds have no stated maturity date. Date shown as maturity
date is next call date. |
| (Z) | A portion of this security is segregated as collateral pursuant to
the Liquidity Agreement. Total collateral value at 7-31-16 was $500,620,449. |
| * | Yield represents either the annualized yield at the date of purchase,
the stated coupon rate or, for floating rate securities, the rate at
period end. |
| | At 7-31-16 , the aggregate cost of investment securities for federal income tax
purposes was $1,113,223,518. Net unrealized appreciation aggregated
to $266,329,976, of which $289,381,854 related to appreciated
investment securities and $23,051,878 related to depreciated
investment securities. |
The fund had the following country composition as a percentage of total investments on 7-31-16 :
| United States | 89.1 |
|---|---|
| United Kingdom | 6.4 |
| Netherlands | 2.5 |
| Israel | 1.8 |
| France | 0.2 |
| Total | 100.0 |
SEE NOTES TO FUND'S INVESTMENTS 5
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 may be determined as of the regularly scheduled close of the NYSE pursuant to the fund's Valuation Policies and Procedures. The time at which shares and transactions are priced and until which orders are accepted may vary to the extent permitted by the Securities and Exchange Commission and applicable regulations.
In order to value the securities, the fund uses the following valuation techniques: Equity securities held by the fund are typically valued at the last sale price or official closing price on the exchange or principal market where the security was acquired or most likely will be sold. 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 valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. 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. Options listed on an exchange are valued at the mean of the most recent bid and ask prices from the exchange where the option was acquired or most likely will be sold. Swaps are valued using evaluated prices obtained from an independent pricing vendor. Futures contracts are valued at settlement prices, which are the official closing prices published by the exchange on which they trade. Foreign securities are valued in U.S. dollars, based on foreign currency exchange rates supplied by 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. 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 July 31, 2016 , by major security category or type:
| Total value at 7-31-16 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | ||||
|---|---|---|---|---|---|---|---|
| Common stocks | |||||||
| Energy | $127,026,524 | $127,026,524 | | | |||
| Materials | 842,400 | 842,400 | | | |||
| Telecommunication services | 23,372,697 | 23,372,697 | | | |||
| Utilities | 516,220,431 | 516,220,431 | | | |||
| Preferred securities | |||||||
| Energy | 40,538,990 | 40,538,990 | | | |||
| Financials | 411,028,667 | 411,028,667 | | | |||
| Health care | 24,331,199 | 24,331,199 | | | |||
| Industrials | 3,297,500 | 3,297,500 | | | |||
| Telecommunication services | 49,720,080 | 48,043,080 | 1,677,000 | | |||
| Utilities | 167,808,006 | 144,763,568 | 23,044,438 | | |||
| Corporate bonds | 3,345,000 | | 3,345,000 | | |||
| Short-term investments | 12,022,000 | | 12,022,000 | | |||
| Total investments in securities | $1,379,553,494 | $1,339,465,056 | $40,088,438 | | |||
| Other financial instruments: | |||||||
| Futures | ($3,515,847 | ) | ($3,515,847 | ) | | | |
| Written options | (1,316,377 | ) | (1,316,377 | ) | | | |
| Interest rate swaps | (558,048 | ) | | ($558,048 | ) | |
Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund's custodian. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount
6
not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the Fund's investments as part of the caption related to the repurchase agreement.
Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of default, assets and liabilities resulting from repurchase agreements are not offset. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay back claims resulting from close-out of the transactions.
Derivative instruments. The fund may invest in derivatives in order to meet its investment objectives. Derivatives include a variety of different instruments that may be traded in the over-the-counter (OTC) market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.
Futures. A futures contract is a contractual agreement to buy or sell a particular currency or financial instrument at a pre-determined price in the future. Risks related to the use of futures contracts include possible illiquidity of the futures markets and contract prices that can be highly volatile and imperfectly correlated to movements in the underlying financial instrument. Use of long futures contracts subjects the funds to the risk of loss up to the notional value of the futures contracts. Use of short futures contracts subjects the funds to unlimited risk of loss.
During the period ended July 31, 2016 , the fund used futures contracts to manage against anticipated interest rate changes. The following table summarizes the contracts held at July 31, 2016 :
| Open contracts | Number of contracts | Position | Expiration date | Notional basis | Notional value | Unrealized appreciation (depreciation) | |||
|---|---|---|---|---|---|---|---|---|---|
| 10-Year U.S. Treasury Note Futures | 980 | Short | Sep 2016 | ($126,870,091 | ) | ($130,385,938 | ) | ($3,515,847 | ) |
| ($3,515,847 | ) |
Notional basis refers to the contractual amount agreed upon at inception of open contracts; notional value represents the current value of the open contract.
Options. There are two types of options, put options and call options. Options are traded either OTC or on an exchange. A call option gives the purchaser of the option the right to buy (and the seller the obligation to sell) the underlying instrument at the exercise price. A put option gives the purchaser of the option the right to sell (and the writer the obligation to buy) the underlying instrument at the exercise price. Writing puts and buying calls may increase the fund's exposure to changes in the value of the underlying instrument. Buying puts and writing calls may decrease the fund's exposure to such changes. Risks related to the use of options include the loss of premiums, possible illiquidity of the options markets, trading restrictions imposed by an exchange and movements in underlying security values. In addition, OTC options are subject to the risks of all OTC derivatives contracts.
When the fund purchases an option, the premium paid by the fund is included in the portfolio of investments and subsequently "marked-to-market" to reflect current market value. When the fund writes an option, the premium received is included as a liability and subsequently "marked-to-market" to reflect current market value of the option written.
During the period ended July 31, 2016 , the fund wrote option contracts to hedge against anticipated changes in securities markets and to generate potential income. The following tables summarize the fund's written options activities during the period ended July 31, 2016 and the contracts held at July 31, 2016 :
| Outstanding, beginning of period | Number of contracts — 660 | Premiums received — $2,243,192 | ||
|---|---|---|---|---|
| Options written | 6,280 | 15,475,851 | ||
| Option closed | (5,438 | ) | (16,091,414 | ) |
| Options exercised | ||||
| Options expired | (365 | ) | (283,224 | ) |
| Outstanding, end of period | 1,137 | $1,344,405 |
| Name of issuer | Exercise price | Expiration date | Number of contracts | Premium | Value | |
|---|---|---|---|---|---|---|
| Calls | ||||||
| Philadelphia Utility Index | $660 | Sep 2016 | 95 | $99,834 | ($109,250 | ) |
| S&P 100 Index | 1,020 | Sep 2016 | 543 | 40,296 | (24,435 | ) |
| S&P 500 Index | 2,200 | Aug 2016 | 48 | 32,122 | (28,560 | ) |
| S&P 500 Index | 4,410 | Aug 2016 | 96 | 60,404 | (46,762 | ) |
| S&P 500 Index | 2,210 | Aug 2016 | 48 | 28,282 | (17,520 | ) |
| S&P 500 Index | 2,165 | Sep 2016 | 307 | 1,083,467 | (1,089,850 | ) |
7
| Name of issuer | Number of contracts | Premium | Value | |
|---|---|---|---|---|
| Calls | ||||
| Total | 1,137 | $1,344,405 | ($1,316,377 | ) |
Interest rate swaps. Interest rate swaps represent an agreement between the fund and a counterparty to exchange cash flows based on the difference between two interest rates applied to a notional amount. The payment flows are usually netted against each other, with the difference being paid by one party to the other. The fund settles accrued net interest receivable or payable under the swap contracts at specified, future intervals. Swap agreements are privately negotiated in the OTC market or may be executed on a registered commodities exchange (centrally cleared swaps). Upfront payments made/received by the fund are amortized/accreted for financial reporting purposes, with the unamortized/unaccreted portion included in the Statement of assets and liabilities. (include previous sentence only if applies) Swaps are marked-to-market daily and the change in value is recorded as unrealized appreciation/depreciation of swap contracts. A termination payment by the counterparty or the fund is recorded as realized gain or loss, as well as the net periodic payments received or paid by the fund. The value of the swap will typically impose collateral posting obligations on the party that is considered out-of-the-money on the swap.
During the period ended July 31, 2016 , the fund used interest rate swaps to manage against anticipated interest rate changes. The following table summarizes the interest rate swap contracts held as of July 31, 2016 .
| Counterparty | USD notional amount | Payments made by fund | Payments received by fund | Maturity date | Market value | |
|---|---|---|---|---|---|---|
| Morgan Stanley Capital Services | $86,000,000 | Fixed 1.4625% | 3-Month LIBOR (a) | Aug 2016 | ($494,847 | ) |
| Morgan Stanley Capital Services | 86,000,000 | Fixed 0.8750% | 3-Month LIBOR (a) | Jul 2017 | (63,201 | ) |
| Total | $172,000,000 | ($558,048 | ) |
(a) At 7-31-16 , the 3-Month LIBOR rate was 0.7591%
For additional information on the fund's significant accounting policies, please refer to the fund's most recent semiannual or annual shareholder report.
8
More information
| How to contact us — Internet | www.jhinvestments.com | |
|---|---|---|
| Computershare P.O. Box 30170 College Station, TX 77842-3170 | ||
| Phone | Customer service representatives Portfolio commentary 24-hour automated information TDD line | 800-852-0218 800-344-7054 800-843-0090 800-231-5469 |
| 07/16 | |
|---|---|
| This report is for the information of the shareholders of John | |
| Hancock Tax-Advantaged Dividend Income Fund. | 9/16 |
ITEM 2. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-Q, the registrant's principal executive officer and principal accounting officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Separate certifications for the registrant's principal executive officer and principal accounting officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Tax-Advantaged Dividend Income Fund
By:
/s/ Andrew G. Arnott
Andrew G. Arnott
President
Date: September 16, 2016
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By:
/s/ Andrew G. Arnott
Andrew G. Arnott
President
Date: September 16, 2016
By:
/s/ Charles A. Rizzo
Charles A. Rizzo
Chief Financial Officer
Date: September 16, 2016
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