UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08568
(Exact name of registrant as specified in charter)
200 BERKELEY STREET, BOSTON, MA 02116
(Address of principal executive offices) (Zip code)SALVATORE SCHIAVONE
TREASURER
200 BERKELEY STREET
BOSTON, MA 02116
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 543-9634
Date of fiscal year end: December 31
Date of reporting period:
December 31, 2025
ITEM 1. REPORT TO STOCKHOLDERS.
Managed distribution plan
The fund has adopted a managed distribution plan (Plan). Under the Plan, the fund currently makes quarterly distributions of an amount equal to $0.6500 per share, which will be paid quarterly until further notice. The fund may make additional distributions: (i) for purposes of not incurring federal income tax at the fund level of investment company taxable income and net capital gain, if any, not included in such regular distributions; and (ii) for purposes of not incurring federal excise tax on ordinary income and capital gain net income, if any, not included in such regular distributions.
The Plan provides that the Board of Trustees of the fund may amend the terms of the Plan or terminate the Plan at any time without prior notice to the fund’s shareholders. The Plan is subject to periodic review by the fund’s Board of Trustees.
You should not draw any conclusions about the fund’s investment performance from the amount of the fund’s distributions or from the terms of the fund’s Plan. The fund’s total return at net asset value (NAV) is presented in the "Financial highlights" section.
With each distribution that does not consist solely of net income, the fund will issue a notice to shareholders and an accompanying press release that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income-tax purposes. The fund may, at times, distribute more than its net investment income and net realized capital gains; therefore, a portion of your distribution may result in a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital does not necessarily reflect the fund’s investment performance and should not be confused with "yield" or "income".
John Hancock
Financial Opportunities Fund
Table of contents
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| ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 1 |
Your fund at a glance
INVESTMENT
OBJECTIVE
The fund seeks to provide a high level of total return consisting of
long
-term capital appreciation and current income.AVERAGE ANNUAL TOTAL RETURNS AS
OF
12/31/2025 (%)
The Blended Benchmark comprises 85% S&P Regional Banks Select Industry Index which tracks the regional banking segment of the broad U.S. equity market and 15% Intercontinental Exchange (ICE) Bank of America (BofA) US All Capital Securities Index tracks all fixed- to floating-rate, perpetual callable and capital securities of the ICE BofA US
Corporate
Index.It is not possible to invest directly in an index. Index figures do not reflect expenses, which would result in lower returns.
The performance data contained within this material represents past performance, which does not guarantee future results.
Investment returns and principal value will fluctuate and a shareholder may sustain losses. Further, the fund’s performance at net asset value (NAV) is different from the fund’s performance at closing market price because the closing market price is subject to the dynamics of secondary market trading. Market risk may increase when shares are purchased at a premium to NAV or sold at a discount to NAV. Current month-end performance may be higher or lower than the performance cited. The fund’s most recent performance can be found at jhinvestments.com or by calling 800-852-0218.
| 2 | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | ANNUAL REPORT |
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Equities rose on artificial intelligence (AI) enthusiasm and resilient earnings
U.S. equities delivered double-digit gains driven by strong consumer spending, resilient corporate earnings and ongoing enthusiasm for AI innovation.
The fund’s regional bank holdings contributed to absolute results
The fund delivered positive absolute performance, led primarily by holdings in the regional bank segment as well as select preferred shares holdings.
The fund’s alternative asset manager holdings detracted
The performance of alternative managers was mostly negative and trailed other segments.
INDUSTRY COMPOSITION AS OF 12/31/2025 (% of total investments)
| ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 3 |
Management’s discussion of fund performance
What factors affected global equity markets over the past 12 months ended December 31, 2025?
U.S. stocks rallied strongly in 2025, a third straight year of double-digit annual gains. Throughout most of the year, strong consumer spending and resilient corporate earnings helped buoy stocks. Ongoing enthusiasm for artificial intelligence (AI) innovation boosted the market, particularly technology and related stocks. Falling interest rates provided another lift. The U.S. Federal Reserve (Fed) cut its policy interest rate in the second half of the year in response to higher-than-expected unemployment data. Together, these factors helped offset market volatility triggered by fears over tariffs in the spring and a government shutdown in the fall. The market’s momentum cooled toward year end when the Fed signaled fewer-than-expected rate cuts in 2026 and some investors engaged in profit-taking and portfolio rebalancing. There was some rotation away from AI-driven and mega cap stocks toward small- and mid-sized and value stocks.
How did the fund perform?
The fund at net asset value delivered solidly positive absolute performance, led primarily by holdings in the regional bank segment as well as select preferred shares holdings. Among the fund’s other major segments, the performance of alternative managers was mostly negative and trailed other segments.
TOP 10 HOLDINGS AS OF 12/31/2025 (% of total investments) | |
| Old National Bancorp | 1.9 |
| Citizens Financial Group, Inc. | 1.6 |
| Coastal Financial Corp. | 1.5 |
| Popular, Inc. | 1.5 |
| U.S. Bancorp | 1.4 |
| M&T Bank Corp. | 1.4 |
| Hancock Whitney Corp. | 1.4 |
| Zions Bancorp NA | 1.4 |
| Huntington Bancshares, Inc. | 1.4 |
| Ameris Bancorp | 1.3 |
TOTAL | 14.8 |
| Cash and short-term investments are not included. | |
| 4 | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | ANNUAL REPORT |
Which holdings had the most significant positive and negative impacts?
The top absolute contributor for the period was Prime Meridian Holding Company, the Florida-based holding company for community bank Prime Meridian Bank. Other top contributors included Citizens Financial Group, Inc., a regional bank based in Rhode Island, Puerto Rico-based bank Popular, Inc., Coastal Financial Corp., the Washington-based holding company for Coastal Community Bank and Northrim BanCorp, Inc., the Alaska-based holding company for Northrim Bank.
On the negative side, the following positions were among those that declined during the period and detracted from absolute performance: Atlantic Union Bankshares Corp., the Virginia-based holding company for Atlantic Union Bank; Pinnacle Financial Partners, Inc., a Georgia-based special purpose holding company formerly known as Steel Newco, Inc. that facilitated the merger of Synovus Bank and Pinnacle Bank; global alternative asset manager KKR & Company, Inc.; FFB Bancorp, the California-based holding company for FFB Bank; and French private equity and venture capital firm Eurazeo SE. We sold the Fund’s position in Atlantic Union Bankshares Corp. during the period.
The views expressed in this report are exclusively those of the portfolio management team at Manulife Investment Management (US) LLC and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 5 |
A look at performance
TOTAL RETURNS FOR THE PERIOD ENDED DECEMBER 31, 2025
Average annual total returns (%) | Cumulative total returns (%) | ||||
1-Year | 5-Year | 10-Year | 5-year | 10-Year | |
| At Net asset value | 10.67 | 13.11 | 10.65 | 85.12 | 175.00 |
| At Market price | 5.97 | 11.08 | 9.59 | 69.09 | 149.91 |
| S&P 500 Index | 17.88 | 14.42 | 14.82 | 96.16 | 298.27 |
| Blended Index | 10.54 | 7.52 | 7.63 | 43.73 | 108.56 |
Performance figures assume all distributions have been reinvested.
The returns reflect past results and should not be considered indicative of future performance. Investment returns and principal value will fluctuate and a shareholder may sustain losses. Further, the fund’s performance at net asset value (NAV) is different from the fund’s performance at closing market price because the closing market price is subject to the dynamics of secondary market trading. Market risk may be augmented when shares are purchased at a premium to NAV or when shares need to be sold at a discount to NAV. Current month-end performance may be higher or lower than the performance cited. The fund’s most recent performance can be found at jhinvestments.com or by calling 800-852-0218.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the sale of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
| 6 | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | ANNUAL REPORT |
This chart shows what happened to a hypothetical $10,000 investment in John Hancock Financial Opportunities Fund for the periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in a blended index and the S&P 500 Index.
The Blended Benchmark comprises 85% S&P Regional Banks Select Industry Index which tracks the regional banking segment of the broad U.S. equity market and 15% Intercontinental Exchange (ICE) Bank of America (BofA) US All Capital Securities Index tracks all fixed- to floating-rate, perpetual callable and capital securities of the ICE BofA US Corporate Index.
The fund changed its broad-based securities market index from S&P Composite 1500 Banks Index to S&P 500 Index to align with index changes across the fund complex.
The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses, which would result in lower returns.
The returns reflect past results and should not be considered indicative of future performance.
| ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 7 |
Fund’s investments
AS OF 12-31-25
Shares | Value | ||||
Common stocks 106.9% (90.8% of Total investments) | $763,757,278 | ||||
| (Cost $431,145,615) | |||||
Financials 106.1% | 758,032,385 | ||||
Banks 96.8% | |||||
| 1st Source Corp. | 118,620 | 7,412,564 | |||
| ACNB Corp. | 62,233 | 3,008,966 | |||
| Alpine Banks of Colorado, Class B | 173,462 | 6,903,788 | |||
| American Business Bank | 83,455 | 5,407,884 | |||
| American Riviera Bancorp (A) | 228,717 | 5,374,850 | |||
| Ameris Bancorp | 152,485 | 11,325,061 | |||
| Avidbank Holdings, Inc. (A) | 257,070 | 6,827,779 | |||
| Bank of Marin Bancorp | 200,182 | 5,206,734 | |||
| Bank7 Corp. | 116,363 | 4,768,556 | |||
| Banner Corp. | 53,428 | 3,347,798 | |||
| Bar Harbor Bankshares | 142,394 | 4,421,334 | |||
| BayCom Corp. | 173,874 | 5,111,896 | |||
| Business First Bancshares, Inc. | 182,458 | 4,769,452 | |||
| C&F Financial Corp. | 37,912 | 2,752,032 | |||
| California BanCorp | 455,317 | 8,500,768 | |||
| Camden National Corp. | 90,567 | 3,928,796 | |||
| CB Financial Services, Inc. | 57,155 | 1,992,423 | |||
| Central Pacific Financial Corp. | 144,201 | 4,493,303 | |||
| Chemung Financial Corp. | 63,598 | 3,548,768 | |||
| ChoiceOne Financial Services, Inc. | 98,216 | 2,899,336 | |||
| Citizens Community Bancorp, Inc. | 169,116 | 3,013,647 | |||
| Citizens Financial Group, Inc. (B)(C) | 228,406 | 13,341,194 | |||
| Civista Bancshares, Inc. | 250,733 | 5,571,287 | |||
| CNB Financial Corp. | 80,835 | 2,115,452 | |||
| Coastal Carolina Bancshares, Inc. (A) | 30,000 | 389,400 | |||
| Coastal Carolina Bancshares, Inc. (A)(D) | 260,000 | 3,206,060 | |||
| Coastal Financial Corp. (A)(B)(C) | 108,420 | 12,423,848 | |||
| Colony Bankcorp, Inc. | 97,517 | 1,737,753 | |||
| Columbia Banking System, Inc. | 318,953 | 8,914,736 | |||
| Community Bancorp, Inc. | 61,507 | 1,502,616 | |||
| Community Heritage Financial, Inc. | 141,197 | 3,798,199 | |||
| Community West Bancshares | 126,760 | 2,852,100 | |||
| ConnectOne Bancorp, Inc. | 85,763 | 2,248,706 | |||
| Cullen/Frost Bankers, Inc. | 86,104 | 10,903,350 | |||
| CVB Financial Corp. (B)(C) | 222,784 | 4,143,782 | |||
| Dime Community Bancshares, Inc. | 219,054 | 6,591,335 | |||
| Eagle Bancorp Montana, Inc. | 155,751 | 3,099,445 | |||
| East West Bancorp, Inc. | 56,285 | 6,325,871 | |||
| Eastern Bankshares, Inc. | 410,229 | 7,560,520 | |||
| 8 | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Financials (continued) | |||||
Banks (continued) | |||||
| Equity Bancshares, Inc., Class A | 169,613 | $7,573,220 | |||
| Farmers & Merchants Bancorp, Inc. | 114,822 | 2,838,400 | |||
| Farmers National Banc Corp. | 162,398 | 2,163,141 | |||
| FFB Bancorp (A) | 82,186 | 6,985,810 | |||
| Fifth Third Bancorp (B)(C) | 237,095 | 11,098,417 | |||
| First Business Financial Services, Inc. | 91,858 | 4,987,889 | |||
| First Citizens BancShares, Inc., Class A | 2,688 | 5,768,932 | |||
| First Commonwealth Financial Corp. | 249,243 | 4,202,237 | |||
| First Community Corp. | 132,912 | 3,940,841 | |||
| First Financial Bancorp | 311,817 | 7,801,661 | |||
| First Horizon Corp. | 325,059 | 7,768,910 | |||
| First Merchants Corp. | 150,025 | 5,622,937 | |||
| First Mid Bancshares, Inc. | 76,166 | 2,970,474 | |||
| First Reliance Bancshares, Inc. (A)(E) | 426,454 | 5,228,326 | |||
| Flushing Financial Corp. | 279,362 | 4,237,922 | |||
| German American Bancorp, Inc. | 124,124 | 4,863,178 | |||
| Glacier Bancorp, Inc. (B)(C) | 165,000 | 7,268,250 | |||
| Great Southern Bancorp, Inc. | 40,257 | 2,478,221 | |||
| Hancock Whitney Corp. (B)(C) | 182,751 | 11,637,584 | |||
| HBT Financial, Inc. | 209,443 | 5,414,102 | |||
| Heritage Commerce Corp. | 513,678 | 6,169,273 | |||
| Heritage Financial Corp. | 90,346 | 2,136,683 | |||
| Horizon Bancorp, Inc. (B)(C) | 505,196 | 8,568,124 | |||
| Huntington Bancshares, Inc. | 655,503 | 11,372,977 | |||
| InBankshares Corp. (A) | 207,676 | 2,481,728 | |||
| Independent Bank Corp. (Massachusetts) | 130,022 | 9,502,008 | |||
| Independent Bank Corp. (Michigan) | 163,971 | 5,333,977 | |||
| KeyCorp (B)(C) | 434,830 | 8,974,891 | |||
| Landmark Bancorp, Inc. | 138,666 | 3,631,663 | |||
| Ledyard Financial Group, Inc. | 155,104 | 2,321,907 | |||
| Live Oak Bancshares, Inc. | 110,051 | 3,780,252 | |||
| M&T Bank Corp. (C) | 58,267 | 11,739,635 | |||
| Metrocity Bankshares, Inc. | 65,263 | 1,732,080 | |||
| Mid Penn Bancorp, Inc. | 104,181 | 3,231,695 | |||
| NBT Bancorp, Inc. | 167,805 | 6,967,264 | |||
| Nicolet Bankshares, Inc. (B)(C) | 77,030 | 9,343,739 | |||
| Northrim BanCorp, Inc. | 369,612 | 9,835,375 | |||
| Norwood Financial Corp. | 78,289 | 2,196,006 | |||
| Ohio Valley Banc Corp. | 70,250 | 2,808,595 | |||
| Old National Bancorp (B)(C) | 708,861 | 15,814,685 | |||
| Old Second Bancorp, Inc. | 355,988 | 6,941,766 | |||
| OP Bancorp | 182,412 | 2,575,657 | |||
| Orange County Bancorp, Inc. | 123,187 | 3,516,989 | |||
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 9 |
Shares | Value | ||||
Financials (continued) | |||||
Banks (continued) | |||||
| Orrstown Financial Services, Inc. | 87,425 | $3,096,594 | |||
| Pinnacle Financial Partners, Inc. (B)(C) | 91,793 | 8,757,970 | |||
| Plumas Bancorp | 82,851 | 3,702,611 | |||
| Popular, Inc. (B)(C) | 98,514 | 12,266,963 | |||
| Prime Meridian Holding Company | 125,087 | 7,079,924 | |||
| Private Bancorp of America, Inc. (A) | 121,888 | 7,012,217 | |||
| Provident Financial Holdings, Inc. | 108,800 | 1,731,008 | |||
| QCR Holdings, Inc. | 74,384 | 6,196,187 | |||
| QNB Corp. | 75,111 | 2,625,881 | |||
| Red River Bancshares, Inc. | 58,027 | 4,144,869 | |||
| Regions Financial Corp. | 410,978 | 11,137,504 | |||
| Renasant Corp. | 310,405 | 10,932,464 | |||
| River City Bank | 148,780 | 6,527,723 | |||
| Riverview Bancorp, Inc. | 417,954 | 2,098,129 | |||
| SB Financial Group, Inc. | 257,156 | 5,726,864 | |||
| Shore Bancshares, Inc. | 406,028 | 7,178,575 | |||
| Sierra Bancorp | 163,038 | 5,328,082 | |||
| South Atlantic Bancshares, Inc. | 289,568 | 5,718,968 | |||
| Southern Missouri Bancorp, Inc. | 104,786 | 6,194,948 | |||
| SouthState Bank Corp. | 83,765 | 7,883,124 | |||
| SpareBank 1 Nord Norge | 240,836 | 3,619,186 | |||
| SpareBank 1 Sor-Norge ASA | 235,524 | 4,628,075 | |||
| Stock Yards Bancorp, Inc. | 79,829 | 5,184,894 | |||
| Synovus Financial Corp. (B)(C) | 162,547 | 8,135,477 | |||
| The First Bancorp, Inc. | 226,174 | 5,980,041 | |||
| Timberland Bancorp, Inc. | 113,266 | 4,054,923 | |||
| TriCo Bancshares (B)(C) | 190,923 | 9,044,023 | |||
| U.S. Bancorp (C) | 225,123 | 12,012,563 | |||
| United BanCorp of Alabama, Inc., Class A | 168,566 | 8,967,711 | |||
| Virginia National Bankshares Corp. | 86,679 | 3,454,158 | |||
| Walden Mutual (A)(D)(F) | 100,000 | 607,000 | |||
| Washington Trust Bancorp, Inc. | 133,936 | 3,957,809 | |||
| Western Alliance Bancorp | 52,765 | 4,435,954 | |||
| White River Bancshares Company (E) | 134,640 | 6,663,334 | |||
| WSFS Financial Corp. | 190,189 | 10,506,040 | |||
| WTB Financial Corp., Class B | 14,981 | 5,468,065 | |||
| Zions Bancorp NA (B)(C) | 198,195 | 11,602,335 | |||
Capital markets 6.4% | |||||
| Ares Management Corp., Class A (C) | 49,128 | 7,940,559 | |||
| GCM Grosvenor, Inc., Class A | 219,284 | 2,482,295 | |||
| KKR & Company, Inc. (C) | 65,878 | 8,398,127 | |||
| Marex Group PLC (B)(C) | 145,046 | 5,563,965 | |||
| Onex Corp. | 96,758 | 7,963,122 | |||
| 10 | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Financials (continued) | |||||
Capital markets (continued) | |||||
| Sixth Street Specialty Lending, Inc. (B)(C) | 228,214 | $4,956,808 | |||
| The Carlyle Group, Inc. | 146,317 | 8,648,798 | |||
Financial services 1.0% | |||||
| Eurazeo SE | 110,822 | 6,903,486 | |||
Insurance 1.5% | |||||
| American Integrity Insurance Group, Inc. (A) | 220,779 | 4,598,827 | |||
| Assured Guaranty, Ltd. | 71,190 | 6,397,845 | |||
Mortgage real estate investment trusts 0.4% | |||||
| Blackstone Mortgage Trust, Inc., Class A | 154,080 | 2,947,550 | |||
Real estate 0.8% | 5,724,893 | ||||
Health care REITs 0.4% | |||||
| Sila Realty Trust, Inc. | 121,300 | 2,827,503 | |||
Specialized REITs 0.4% | |||||
| Millrose Properties, Inc., Class A | 97,000 | 2,897,390 | |||
Preferred securities 5.8% (4.9% of Total investments) | $41,036,168 | ||||
| (Cost $38,005,477) | |||||
Financials 5.6% | 39,498,668 | ||||
Banks 5.3% | |||||
| Banc of California, Inc., 7.750% (7.750% to 9-1-27, then 5 Year CMT + 4.820%) (B)(C) | 90,000 | 2,266,200 | |||
| CNB Financial Corp., 7.125% | 75,200 | 1,880,000 | |||
| Dime Community Bancshares, Inc., 9.000% (9.000% to 7-15-29, then Overnight SOFR + 4.951%) | 80,000 | 2,088,000 | |||
| First Busey Corp., 8.250% | 200,000 | 5,150,000 | |||
| First Business Financial Services, Inc., 7.000% (7.000% to 3-15-27, then 3 month CME Term SOFR + 5.390%) (F)(G) | 4,000 | 3,734,560 | |||
| First Merchants Corp., 7.500% | 48,900 | 1,241,571 | |||
| Investar Holding Corp., 6.500% (F)(G) | 5,000 | 6,252,700 | |||
| Live Oak Bancshares, Inc., 8.375% (B)(C) | 120,000 | 3,066,000 | |||
| Synovus Financial Corp., 8.397% (5 Year CMT + 4.127%) (C)(H) | 77,222 | 1,996,189 | |||
| Tectonic Financial, Inc., 11.574% (3 month CME Term SOFR + 6.980%) (H) | 186,840 | 1,997,320 | |||
| WaFd, Inc., 4.875% | 210,875 | 3,534,265 | |||
| Wintrust Financial Corp., 7.875% (7.875% to 7-15-30, then 5 Year CMT + 3.878%) (C) | 166,700 | 4,315,863 | |||
Mortgage real estate investment trusts 0.3% | |||||
| Redwood Trust, Inc., 9.125% | 80,000 | 1,976,000 | |||
Real estate 0.2% | 1,537,500 | ||||
Diversified REITs 0.2% | |||||
| CTO Realty Growth, Inc., 6.375% | 75,000 | 1,537,500 | |||
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 11 |
Rate (%) | Maturity date | Par value^ | Value | ||
Corporate bonds 3.6% (3.0% of Total investments) | $25,571,141 | ||||
| (Cost $25,040,672) | |||||
Financials 3.1% | 21,803,866 | ||||
Banks 3.1% | |||||
| ConnectOne Bancorp, Inc. (8.125% to 6-1-30, then 3 month CME Term SOFR + 4.415%) | 8.125 | 06-01-35 | 5,000,000 | 5,100,000 | |
| First Interstate BancSystem, Inc. (7.625% to 6-15-30, then 3 month CME Term SOFR + 3.980%) | 7.625 | 06-15-35 | 1,850,000 | 1,887,000 | |
| Flagstar Bank NA (3 month CME Term SOFR + 3.042%) (H) | 6.928 | 11-06-28 | 3,385,000 | 3,256,906 | |
| Hometown Financial Group, Inc. (G) | 8.750 | 03-15-27 | 3,500,000 | 3,550,107 | |
| Independent Bank Corp. (7.250% to 4-1-30, then 3 month CME Term SOFR + 3.530%) | 7.250 | 04-01-35 | 3,000,000 | 3,115,810 | |
| QNB Corp. (8.875% to 9-1-29, then 3 month CME Term SOFR + 5.450%) (G) | 8.875 | 09-01-34 | 2,250,000 | 2,328,419 | |
| University Bancorp, Inc. (8.250% to 1-31-28, then 3 month CME Term SOFR + 4.870%) (G) | 8.250 | 01-31-33 | 2,500,000 | 2,565,624 | |
Real estate 0.5% | 3,767,275 | ||||
Residential REITs 0.5% | |||||
| BW Real Estate, Inc. (9.500% to 3-30-30, then 5 Year CMT + 5.402%) (G)(I) | 9.500 | 03-30-30 | 3,680,000 | 3,767,275 | |
Convertible bonds 0.6% (0.5% of Total investments) | $4,158,105 | ||||
| (Cost $3,996,601) | |||||
Financials 0.6% | 4,158,105 | ||||
Mortgage real estate investment trusts 0.6% | |||||
| Redwood Trust, Inc. | 7.750 | 06-15-27 | 4,179,000 | 4,158,105 | |
Certificate of deposit 0.0% (0.0% of Total investments) | $87,718 | ||||
| (Cost $87,718) | |||||
| Country Bank for Savings | 4.000 | 08-28-26 | 2,196 | 2,196 | |
| East Boston Savings Bank | 2.960 | 11-01-27 | 2,061 | 2,061 | |
| Eastern Savings Bank | 0.200 | 04-23-27 | 1,978 | 1,978 | |
| First Bank Richmond NA | 3.300 | 12-05-28 | 24,860 | 24,860 | |
| First Federal Savings Bank | 2.500 | 01-09-26 | 3,151 | 3,151 | |
| First National Bank | 0.400 | 06-17-26 | 1,379 | 1,379 | |
| First Savings Bank of Perkasie | 3.300 | 04-07-27 | 5,280 | 5,280 | |
| Home National Bank | 1.000 | 11-06-26 | 23,411 | 23,411 | |
| Hudson United Bank | 3.250 | 04-23-27 | 2,495 | 2,495 | |
| Machias Savings Bank | 2.960 | 05-29-26 | 2,065 | 2,065 | |
| Midstates Bank NA | 0.520 | 06-03-26 | 2,088 | 2,088 | |
| Milford Bank Short Term | 0.100 | 06-11-27 | 1,947 | 1,947 | |
| Milford Federal Savings and Loan Bank | 3.200 | 04-29-26 | 2,202 | 2,202 | |
| Mt. McKinley Bank | 0.500 | 12-02-26 | 1,770 | 1,770 | |
| MutualOne Bank | 1.300 | 09-10-27 | 4,423 | 4,423 | |
| 12 | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
| Newburyport Five Cents Savings Bank | 3.440 | 10-19-26 | 2,196 | $2,196 | |
| Newtown Savings Bank | 3.200 | 06-03-26 | 2,086 | 2,086 | |
| Sunshine Federal Savings and Loan Association | 3.250 | 05-12-27 | 2,130 | 2,130 | |
Yield (%) | Shares | Value | |||
Short-term investments 0.9% (0.8% of Total investments) | $6,513,879 | ||||
| (Cost $6,513,889) | |||||
Short-term funds 0.9% | 6,513,879 | ||||
| John Hancock Collateral Trust (J) | 3.7477(K) | 651,114 | 6,513,879 | ||
Total investments (Cost $504,789,972) 117.8% | $841,124,289 | ||||
Other assets and liabilities, net (17.8%) | (126,868,186) | ||||
Total net assets 100.0% | $714,256,103 | ||||
| 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 | |
| CME | CME Group Published Rates |
| CMT | Constant Maturity Treasury |
| SOFR | Secured Overnight Financing Rate |
| (A) | Non-income producing security. |
| (B) | All or a portion of this security is on loan as of 12-31-25, and is a component of the fund’s leverage under the Liquidity Agreement. The value of securities on loan amounted to $103,807,833. |
| (C) | All or a portion of this security is pledged as collateral pursuant to the Liquidity Agreement. Total collateral value at 12-31-25 was $148,866,277. |
| (D) | Restricted security as to resale, excluding 144A securities. For more information on this security refer to the Notes to financial statements. |
| (E) | The fund owns 5% or more of the outstanding voting shares of the issuer and the security is considered an affiliate of the fund. For more information on this security refer to the Notes to financial statements. |
| (F) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. Refer to Note 2 to the financial statements. |
| (G) | This security is 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 |
| (H) | Variable rate obligation. The coupon rate shown represents the rate at period end. |
| (I) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. |
| (J) | Investment is an affiliate of the fund, the advisor and/or subadvisor. |
| (K) | The rate shown is the annualized seven-day yield as of 12-31-25. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 13 |
DERIVATIVES
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 | 10,000,000 | USD | Fixed 3.356% | USD Compounded SOFR (a) | Semi-Annual | Quarterly | May 2028 | — | $(4,989) | $(4,989) |
| Centrally cleared | 15,000,000 | USD | Fixed 1.220% | USD Compounded SOFR (a) | Semi-Annual | Quarterly | Mar 2030 | $(2,744) | 1,425,152 | 1,422,408 |
| Centrally cleared | 25,000,000 | USD | Fixed 1.136% | USD Compounded SOFR (a) | Semi-Annual | Quarterly | Mar 2030 | (4,386) | 2,460,405 | 2,456,019 |
| Centrally cleared | 25,000,000 | USD | Fixed 1.077% | USD Compounded SOFR (a) | Semi-Annual | Quarterly | Mar 2030 | (4,310) | 2,522,024 | 2,517,714 |
$(11,440) | $6,402,592 | $6,391,152 | ||||||||
(a) | At |
Derivatives Currency Abbreviations | |
| USD | U.S. Dollar |
Derivatives Abbreviations | |
| OTC | Over-the-counter |
| SOFR | Secured Overnight Financing Rate |
At 12-31-25, the aggregate cost of investments for federal income tax purposes was $507,038,964. Net unrealized appreciation aggregated to $340,476,477, of which $345,313,340 related to gross unrealized appreciation and $4,836,863 related to gross unrealized depreciation.
See Notes to financial statements regarding investment transactions and other derivatives information.
| 14 | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial statements
STATEMENT OF ASSETS AND LIABILITIES
12-31-25
Assets | |
| Unaffiliated investments, at value (Cost $488,468,121) | $822,718,750 |
| Affiliated investments, at value (Cost $16,321,851) | 18,405,539 |
Total investments, at value (Cost $504,789,972) | 841,124,289 |
| Receivable for centrally cleared swaps | 1,816,349 |
| Dividends and interest receivable | 1,880,875 |
| Receivable from affiliates | 108,969 |
| Other assets | 147,664 |
Total assets | 845,078,146 |
Liabilities | |
| Liquidity agreement | 130,000,000 |
| Interest payable | 494,903 |
| Payable to affiliates | |
| Administrative services fees | 181,616 |
| Trustees’ fees | 1,610 |
| Other liabilities and accrued expenses | 143,914 |
Total liabilities | 130,822,043 |
Net assets | $714,256,103 |
Net assets consist of | |
| Paid-in capital | $370,635,878 |
| Total distributable earnings (loss) | 343,620,225 |
Net assets | $714,256,103 |
Net asset value per share | |
| Based on | $36.04 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Financial Opportunities Fund | 15 |
STATEMENT OF OPERATIONS
For the year ended
12-31-25
Investment income | |
| Dividends | $23,828,380 |
| Interest | 2,270,972 |
| Dividends from affiliated investments | 236,324 |
| Less foreign taxes withheld | (129,794) |
Total investment income | 26,205,882 |
Expenses | |
| Investment management fees | 8,856,294 |
| Interest expense | 6,473,819 |
| Administrative services fees | 2,023,677 |
| Transfer agent fees | 27,763 |
| Trustees’ fees | 53,486 |
| Custodian fees | 91,354 |
| Printing and postage | 94,573 |
| Professional fees | 87,613 |
| Stock exchange listing fees | 23,750 |
| Other | 31,151 |
Total expenses | 17,763,480 |
| Less expense reductions | (1,286,238) |
Net expenses | 16,477,242 |
Net investment income | 9,728,640 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
| Unaffiliated investments and foreign currency transactions | 37,526,661 |
| Affiliated investments | (363) |
| Swap contracts | 2,232,052 |
39,758,350 | |
Change in net unrealized appreciation (depreciation) of | |
| Unaffiliated investments and translation of assets and liabilities in foreign currencies | 22,055,113 |
| Affiliated investments | 1,876,863 |
| Swap contracts | (3,411,141) |
20,520,835 | |
Net realized and unrealized gain | 60,279,185 |
Increase in net assets from operations | $70,007,825 |
| 16 | JOHN HANCOCK Financial Opportunities Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
STATEMENTS OF CHANGES IN NET ASSETS
Year ended 12-31-25 | Year ended 12-31-24 | |
Increase (decrease) in net assets | ||
From operations | ||
| Net investment income | $9,728,640 | $8,296,561 |
| Net realized gain | 39,758,350 | 45,892,238 |
| Change in net unrealized appreciation (depreciation) | 20,520,835 | 86,755,535 |
Increase in net assets resulting from operations | 70,007,825 | 140,944,334 |
Distributions to shareholders | ||
| From earnings | (51,457,876) | (51,259,896) |
Total distributions | (51,457,876) | (51,259,896) |
Fund share transactions | ||
| Issued pursuant to Dividend Reinvestment Plan | 1,721,658 | 2,549,019 |
Total increase | 20,271,607 | 92,233,457 |
Net assets | ||
| Beginning of year | 693,984,496 | 601,751,039 |
End of year | $714,256,103 | $693,984,496 |
Share activity | ||
Shares outstanding | ||
| Beginning of year | 19,765,814 | 19,686,612 |
| Issued pursuant to Dividend Reinvestment Plan | 50,962 | 79,202 |
End of year | 19,816,776 | 19,765,814 |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Financial Opportunities Fund | 17 |
STATEMENT OF CASH FLOWS
For the year ended
12-31-25
Cash flows from operating activities | |
| Net increase in net assets from operations | $70,007,825 |
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities: | |
| Long-term investments purchased | (99,659,174) |
| Long-term investments sold | 142,522,291 |
| Net purchases and sales of short-term investments | (3,401,556) |
| Net amortization (accretion) of premium (discount) | (194,895) |
| (Increase) Decrease in assets: | |
| Receivable for centrally cleared swaps | 471,472 |
| Dividends and interest receivable | 59,383 |
| Receivable from affiliates | 175 |
| Other assets | 3,629 |
| Increase (Decrease) in liabilities: | |
| Interest payable | (84,428) |
| Payable to affiliates | (463) |
| Other liabilities and accrued expenses | (74,303) |
| Net change in unrealized (appreciation) depreciation on: | |
| Investments | (23,930,143) |
| Net realized (gain) loss on: | |
| Investments | (37,455,785) |
| Proceeds received as return of capital | 545,270 |
Net cash provided by operating activities | $48,809,298 |
Cash flows provided by (used in) financing activities | |
| Distributions to shareholders | $(49,736,218) |
| (Increase) decrease in receivable for fund shares sold pursuant to dividend reinvestment plan | 833,792 |
Net cash used in financing activities | $(48,902,426) |
Net decrease in cash | $(93,128) |
Cash at beginning of year | $93,128 |
Cash at end of year | — |
Supplemental disclosure of cash flow information: | |
Cash paid for interest | $(6,558,247) |
Noncash financing activities not included herein consists of reinvestment of distributions | $1,721,658 |
| 18 | JOHN HANCOCK Financial Opportunities Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial highlights
Period ended | 12-31-25 | 12-31-24 | 12-31-23 | 12-31-22 | 12-31-21 |
Per share operating performance | |||||
Net asset value, beginning of period | $ 35.11 | $ 30.57 | $ 32.82 | $ 39.82 | $ 28.48 |
| Net investment income 1 | 0.49 | 0.42 | 0.42 | 0.50 | 0.54 |
| Net realized and unrealized gain (loss) on investments | 3.04 | 6.72 | (0.11) 2 | (5.03) | 12.96 |
Total from investment operations | 3.53 | 7.14 | 0.31 | (4.53) | 13.50 |
Less distributions | |||||
| From net investment income | (0.75) | (0.70) | (0.62) | (0.47) | (0.62) |
| From net realized gain | (1.85) | (1.90) | (1.98) | (2.03) | (1.58) |
Total distributions | (2.60) | (2.60) | (2.60) | (2.50) | (2.20) |
| Premium from shares sold through shelf offering | — | — | 0.04 | 0.03 | 0.04 |
Net asset value, end of period | $36.04 | $35.11 | $30.57 | $32.82 | $39.82 |
Per share market value, end of period | $35.08 | $35.69 | $30.08 | $33.31 | $46.59 |
Total return at net asset value (%) 3,4 | 10.67 | 24.71 | 2.39 | (11.39) | 47.83 |
Total return at market value (%) 3 | 5.97 | 28.84 | (0.76) | (23.11) | 62.31 |
Ratios and supplemental data | |||||
| Net assets, end of period (in millions) | $714 | $694 | $602 | $632 | $757 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 2.61 | 2.97 | 3.16 | 2.12 | 1.78 |
| Expenses including reductions 5 | 2.42 | 2.78 | 2.96 | 1.93 | 1.60 |
| Net investment income | 1.43 | 1.35 | 1.55 | 1.41 | 1.45 |
| Portfolio turnover (%) | 12 | 13 | 13 | 10 | 14 |
Senior securities | |||||
| Total debt outstanding end of period (in millions) | $130 | $130 | $125 | $125 | $125 |
| Asset coverage per $1,000 of debt 6 | $6,494 | $6,338 | $5,814 | $6,057 | $7,058 |
1 | Based on average daily shares outstanding. |
2 | The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of the sales and repurchases of shares in relation to fluctuating market values of the investments of the fund. |
3 | Total return based on net asset value reflects changes in the fund’s net asset value during each period. Total return based on market value reflects changes in market value. Each figure assumes that distributions from income, capital gains and tax return of capital, if any, were reinvested. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Expenses including reductions excluding interest expense were 1.47%, 1.55%, 1.60%, 1.47% and 1.47% for the periods ended 12-31-25, 12-31-24, 12-31-23, 12-31-22 and 12-31-21, respectively. |
6 | Asset coverage equals the total net assets plus borrowings divided by the borrowings of the fund outstanding at period end (Note 8). As debt outstanding changes, the level of invested assets may change accordingly. Asset coverage ratio provides a measure of leverage. |
| SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Financial Opportunities Fund | 19 |
Notes to financial statements
Note 1—Organization
John Hancock Financial Opportunities Fund (the fund) is a closed-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act).
Note 2—Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
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 Valuation Policies and Procedures of the Advisor, John Hancock Investment Management LLC, the fund’s valuation designee.
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. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day. 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. Swaps are generally valued using evaluated prices obtained from an independent pricing vendor. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee of the Advisor 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 Pricing Committee following procedures established by the Advisor and adopted 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. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the Pricing Committee, following procedures established by the Advisor and adopted by the Board of Trustees. The Advisor uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
| 20 | JOHN HANCOCK Financial Opportunities Fund | ANNUAL REPORT |
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 Advisor’s 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 December 31, 2025, by major security category or type:
Total value at 12-31-25 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Financials | ||||
| Banks | $691,231,003 | $679,170,682 | $11,453,321 | $607,000 |
| Capital markets | 45,953,674 | 45,953,674 | — | — |
| Financial services | 6,903,486 | — | 6,903,486 | — |
| Insurance | 10,996,672 | 10,996,672 | — | — |
| Mortgage real estate investment trusts | 2,947,550 | 2,947,550 | — | — |
Real estate | ||||
| Health care REITs | 2,827,503 | 2,827,503 | — | — |
| Specialized REITs | 2,897,390 | 2,897,390 | — | — |
Preferred securities | ||||
Financials | ||||
| Banks | 37,522,668 | 27,535,408 | — | 9,987,260 |
| Mortgage real estate investment trusts | 1,976,000 | 1,976,000 | — | — |
Real estate | ||||
| Diversified REITs | 1,537,500 | 1,537,500 | — | — |
Corporate bonds | 25,571,141 | — | 25,571,141 | — |
Convertible bonds | 4,158,105 | — | 4,158,105 | — |
Certificate of deposit | 87,718 | — | 87,718 | — |
Short-term investments | 6,513,879 | 6,513,879 | — | — |
Total investments in securities | $841,124,289 | $782,356,258 | $48,173,771 | $10,594,260 |
| ANNUAL REPORT | JOHN HANCOCK Financial Opportunities Fund | 21 |
Total value at 12-31-25 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Derivatives: | ||||
Assets | ||||
| Swap contracts | $6,396,141 | — | $6,396,141 | — |
Liabilities | ||||
| Swap contracts | (4,989) | — | (4,989) | — |
The fund holds liabilities for which the fair value approximates the carrying amount for financial statement purposes. As of December 31, 2025, the liability for the fund’s Liquidity agreement on the Statement of assets and liabilities is categorized as Level 2 within the disclosure hierarchy.
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value. Transfers into or out of Level 3, if any, represent the beginning value of any security or instrument where a change in the level has occurred from the beginning to the end of the period and in all cases were transferred into or out of Level 2.
Common stocks | Preferred securities | Certificate of deposit | Total | |
| Balance as of 12-31-24 | $5,162,157 | $3,420,200 | $22,466 | $8,604,823 |
| Realized gain (loss) | — | — | — | — |
| Change in unrealized appreciation (depreciation) | 444,883 | 1,567,060 | — | 2,011,943 |
| Purchases | — | 5,000,000 | — | 5,000,000 |
| Sales | (5,000,040) | — | (22,466) | (5,022,506) |
| Transfers into Level 3 | — | — | — | — |
| Transfers out of Level 3 | — | — | — | — |
Balance as of 12-31-25 | $607,000 | $9,987,260 | — | $10,594,260 |
| Change in unrealized appreciation (depreciation) at period end 1 | $444,883 | $1,567,060 | — | $2,011,943 |
1 | Change in unrealized appreciation (depreciation) attributable to Level 3 securities held at period end. This balance is included in change in unrealized appreciation (depreciation) on the Statement of operations. |
The valuation techniques and significant amounts of unobservable inputs used in the fair value measurement of the fund’s Level 3 securities are outlined in the table below:
Fair Value at 12-31-25 | Valuation technique | Significant unobservable inputs | Input/Range* | Input weighted average* | |
| Common Stocks | $607,000 | Market Comparable | Price/Book Value multiple Discount | 1.14x 14.00% | 1.14x 14.00% |
| Preferred Securities | $3,734,560 | Market Comparable | Benchmark Yield to Call Implied OAS spread | 6.98% 6.54% | 6.98% 6.54% |
| $6,252,700 | Discounted cash flow | Discount | 14.67% | 14.67% | |
$9,987,260 | |||||
Total | $10,594,260 |
*A weighted average is an average in which each input in the grouping is assigned a weighting before summing to a single average value. The weighting of the input is determined based on a security’s fair value as a percentage of the total fair value.
| 22 | JOHN HANCOCK Financial Opportunities Fund | ANNUAL REPORT |
A change to unobservable inputs of the fund’s Level 3 securities as of December 31, 2025 could have resulted in changes to the fair value measurement, as follows:
Significant Unobservable Input | Impact to Valuation if input had increased | Impact to Valuation if input had decreased |
| Benchmark Yield to Call | Decrease | Increase |
| Discount | Decrease | Increase |
| Implied OAS spread | Decrease | Increase |
| Price/Book Value multiple | Increase | Decrease |
Real estate investment trusts.
The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of their fiscal year as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the distributions are known.
Security transactions and related investment income.
Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income is recorded on ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a tax return of capital and/or capital gain, if any, are recorded as a reduction of cost of investments and/or as a realized gain, if amounts are estimable. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign investing.
Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes.
The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdrafts.
Pursuant to the custodian agreement, the fund’s custodian may, in its discretion, advance funds to the fund to make properly authorized payments. When such payments result in an overdraft, the fund is obligated to repay the custodian for any overdraft, including any costs or expenses associated with the overdraft. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the maximum extent permitted by law, to the extent of any overdraft.
| ANNUAL REPORT | JOHN HANCOCK Financial Opportunities Fund | 23 |
Expenses.
Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Statement of cash flows.
A Statement of cash flows is presented when a fund has a significant amount of borrowing during the period, based on the average total borrowing in relation to total assets, or when a certain percentage of the fund’s investments is classified as Level 3 in the fair value hierarchy. Information on financial transactions that have been settled through the receipt and disbursement of cash is presented in the Statement of cash flows. The cash amount shown in the Statement of cash flows is the amount included in the fund’s Statement of assets and liabilities and represents the cash on hand at the fund’s custodian and does not include any short-term investments or collateral on derivative contracts, if any.
Federal income taxes.
The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
As of December 31, 2025, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Managed distribution plan.
The fund has adopted a managed distribution plan (Plan). Under the current plan, the fund makes quarterly distributions of an amount equal to $0.6500 per share, which will be paid quarterly until further notice.
Distributions under the Plan may consist of net investment income, net realized capital gains and, to the extent necessary, return of capital. Return of capital distributions may be necessary when the fund’s net investment income and net capital gains are insufficient to meet the minimum distribution. In addition, the fund may also make additional distributions for the purpose of not incurring federal income and excise taxes.
The Board of Trustees may terminate or reduce the amount paid under the Plan at any time. The termination or reduction may have an adverse effect on the market price of the fund’s shares.
Distribution of income and gains.
Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends quarterly pursuant to the Managed Distribution Plan described above. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended December 31, 2025 and 2024 was as follows:
December 31, 2025 | December 31, 2024 | |
| Ordinary income | $14,774,740 | $13,760,083 |
| Long-term capital gains | 36,683,136 | 37,499,813 |
Total | $51,457,876 | $51,259,896 |
As of December 31, 2025, the components of distributable earnings on a tax basis consisted of $3,110,284 of undistributed long-term capital gains.
Such distributions and distributable earnings, on a tax basis, if any, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
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Capital accounts within the financial statements are adjusted for permanent book-tax differences at fiscal year end. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to investments in passive foreign investment companies and derivative transactions.
Note 3—Derivative instruments
The fund may invest in derivatives in order to meet its investment objective. 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.
Certain derivatives are traded or cleared on an exchange or central clearinghouse. Exchange-traded or centrally-cleared transactions generally present less counterparty risk to a fund than OTC transactions. The exchange or clearinghouse stands between the fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the exchange or clearinghouse and the clearing member.
Centrally-cleared swap contracts are subject to clearinghouse rules, including initial and variation margin requirements, daily settlement of obligations and the clearinghouse guarantee of payments to the broker. There is, however, still counterparty risk due to the potential insolvency of the broker with respect to any margin held in the brokers’ customer accounts. While clearing members are required to segregate customer assets from their own assets, in the event of insolvency, there may be a shortfall in the amount of margin held by the broker for its clients. Collateral or margin requirements for centrally-cleared derivatives are set by the broker or applicable clearinghouse. Margin for centrally-cleared transactions is included in Receivable/Payable for centrally-cleared swaps in the Statement of assets and liabilities. Securities pledged by the fund for centrally-cleared transactions, if any, are identified in the Fund’s investments.
Swaps.
Swap agreements are agreements between the fund and a counterparty to exchange cash flows, assets, foreign currencies or market-linked returns at specified intervals. Swap agreements are privately negotiated in the OTC market (OTC swaps) or may be executed on a registered commodities exchange (centrally cleared swaps). Swaps are marked-to-market daily and the change in value is recorded as a component of unrealized appreciation/depreciation of swap contracts. The value of the swap will typically impose collateral posting obligations on the party that is considered out-of-the-money on the swap.
Upfront payments made/received by the fund, if any, are amortized/accreted for financial reporting purposes, with the unamortized/unaccreted portion included in the Statement of assets and liabilities. 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.
Entering into swap agreements involves, to varying degrees, elements of credit, market and documentation risk that may provide outcomes that produce losses in excess of the amounts recognized on the Statement of assets and liabilities. Such risks involve the possibility that there will be no liquid market for the swap, or that a counterparty may default on its obligation or delay payment under the swap terms. The counterparty may disagree or contest the terms of the swap. In addition to interest rate risk, market risks may also impact the swap. The fund may also suffer losses if it is unable to terminate or assign outstanding swaps or reduce its exposure through offsetting transactions.
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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.
During the year ended December 31, 2025, the fund used interest rate swap contracts to manage against changes in the liquidity agreement interest rates. The fund held interest rate swaps with total USD notional amounts ranging from $75.0 million to $90.0 million, as measured at each quarter end.
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the fund at December 31, 2025 by risk category:
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value |
| Interest rate | Swap contracts, at value 1 | Interest rate swaps | $6,396,141 | $(4,989) |
1 | Reflects cumulative value of swap contracts. Receivable/payable for centrally cleared swaps, which includes value and margin, are shown separately on the Statement of assets and liabilities. |
Effect of derivative instruments on the Statement of operations
The table below summarizes the net realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the year ended December 31, 2025:
Statement of operations location - Net realized gain (loss) on: | |
Risk | Swap contracts |
| Interest rate | $2,232,052 |
The table below summarizes the net change in unrealized appreciation (depreciation) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the year ended December 31, 2025:
Statement of operations location - Change in net unrealized appreciation (depreciation) of: | |
Risk | Swap contracts |
| Interest rate | $(3,411,141) |
Note 4—Guarantees and indemnifications
Under the fund’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 5—Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as distributor for the common shares offered through the equity shelf offering of the fund. The Advisor is an indirect, principally owned subsidiary of John Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary of Manulife Financial Corporation (MFC).
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Management fee.
The fund has an investment advisory agreement with the Advisor under which the fund pays a daily management fee to the Advisor, equivalent on an annual basis to the sum of (a) 1.15% of the first $500 million of the fund’s average daily managed assets, equal to total assets (including any assets attributable to the Liquidity Agreement (LA) (see Note 8) that may be outstanding) minus the sum of accrued liabilities (other than liabilities representing the LA), and (b) 1.00% of the fund’s average daily managed assets in excess of $500 million. The Advisor has a subadvisory agreement with Manulife Investment Management (US) LLC, an indirectly owned subsidiary of MFC and an affiliate of the Advisor. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate managed assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended December 31, 2025, this waiver amounted to 0.01% of the fund’s average daily net assets. This agreement expires on July 31, 2027, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The expense reductions described above amounted to $72,031 for the year ended December 31, 2025.
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended December 31, 2025, were equivalent to a net annual effective rate of 1.08% of the fund’s average daily managed assets.
Administrative services.
The fund has an administration agreement with the Advisor under which the Advisor provides certain administrative services to the fund and oversees operational activities of the fund. The compensation for the period was at an annual rate of 0.25% of the average weekly gross managed assets of the fund. The Advisor agreed to limit the administrative services fee to 0.10% of the fund’s average weekly gross assets. This arrangement expires on April 30, 2027, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time. Accordingly, the expense reductions related to administrative services fees amounted to $1,214,207 for the year ended December 31, 2025. The net administrative services fees incurred for the year ended December 31, 2025 amounted to an annual rate of 0.10% of the fund’s average weekly gross managed assets.
Distributor.
The fund will compensate the Distributor with respect to sales of the common shares offered through the equity shelf offering at a commission rate of 1.00% of the gross proceeds of the sale of common shares, a portion of which is allocated to the selling dealers. During the year ended December 31, 2025, there was no compensation paid to the Distributor. The Distributor has an agreement with a sub-placement agent in the sale of common shares. The fund is not responsible for payment of commissions to the subplacement agent.
Trustee expenses.
The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. These Trustees receive from the fund and the other John Hancock closed-end funds an annual retainer. In addition, Trustee out-of-pocket expenses are allocated to each fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 6—Fund share transactions
In May 2009, the Board of Trustees approved a share repurchase plan, which is subsequently reviewed by the Board of Trustees each year in December. Under the current share repurchase plan, the fund may purchase in the open market, between January 1, 2026 and December 31, 2026, up to 10% of its outstanding common shares as of December 31, 2025. The share repurchase plan will remain in effect between January 1, 2026 and December 31, 2026.
| ANNUAL REPORT | JOHN HANCOCK Financial Opportunities Fund | 27 |
During the years ended December 31, 2025 and 2024, the fund had no activities under the repurchase program. Shares repurchased and corresponding dollar amounts, if any, are included on the Statements of changes in net assets. The anti-dilutive impacts of these share repurchases, if any, are included on the Financial highlights.
Transactions in common shares, if any, are presented in the Statements of changes in net assets. In 2021, the fund filed a registration statement with the Securities and Exchange Commission, registering an additional 1,500,000 common shares through an equity shelf offering program. Under this program, the fund, subject to market conditions, may raise additional equity capital from time to time by offering new common shares at a price equal to or above the fund’s net asset value per common share. Shares issued in shelf offering and corresponding dollar amounts, if any, are included on the Statements of changes in net assets. The premium from shares sold through these shelf offerings, if any, are included on the Financial highlights. Proceeds received in connection with the shelf offering are net of commissions and offering costs. Total offering costs of $246,606 have been prepaid by the fund. As of December 31, 2025, $104,798 has been deducted from proceeds of shares issued and the remaining $141,808 is included in Other assets on the Statement of assets and liabilities.
Note 7—Leverage risk
The fund utilizes the LA to increase its assets available for investment. When the fund leverages its assets, shareholders bear the expenses associated with the LA and have potential to benefit or be disadvantaged from the use of leverage. The Advisor’s fee is also increased in dollar terms from the use of leverage. Consequently, the fund and the Advisor may have differing interests in determining whether to leverage the fund’s assets. Leverage creates risks that may adversely affect the return for the holders of shares, including:
| • | the likelihood of greater volatility of NAV and market price of shares; |
| • | fluctuations in the interest rate paid for the use of the LA; |
| • | increased operating costs, which may reduce the fund’s total return; |
| • | the potential for a decline in the value of an investment acquired through leverage, while the fund’s obligations under such leverage remains fixed; and |
| • | the fund is more likely to have to sell securities in a volatile market in order to meet asset coverage or other debt compliance requirements. |
To the extent the income or capital appreciation derived from securities purchased with funds received from leverage exceeds the cost of leverage, the fund’s return will be greater than if leverage had not been used; conversely, returns would be lower if the cost of the leverage exceeds the income or capital appreciation derived. The use of securities lending to obtain leverage in the fund’s investments may subject the fund to greater risk of loss than would reinvestment of collateral in short term highly rated investments.
In addition to the risks created by the fund’s use of leverage, the fund is subject to the risk that it would be unable to timely, or at all, obtain replacement financing if the LA is terminated. Were this to happen, the fund would be required to de-leverage, selling securities at a potentially inopportune time and incurring tax consequences. Further, the fund’s ability to generate income from the use of leverage would be adversely affected.
Note 8—Liquidity Agreement
The fund has entered into a LA with State Street Bank and Trust Company (SSB) that allows it to borrow or otherwise access up to $150.0 million (maximum facility amount) through a line of credit, securities lending and reverse repurchase agreements. The amounts outstanding at December 31, 2025 are shown in the Statement of assets and liabilities as the Liquidity agreement.
The fund pledges its assets as collateral to secure obligations under the LA. The fund retains the risks and rewards of the ownership of assets pledged to secure obligations under the LA and makes these assets available for securities lending and reverse repurchase transactions with SSB acting as the fund’s authorized agent for these transactions. All transactions initiated through SSB are required to be secured with cash collateral received from the securities borrower (the Borrower) or cash is received from the reverse repurchase agreement (Reverse Repo)
| 28 | JOHN HANCOCK Financial Opportunities Fund | ANNUAL REPORT |
counterparties. Securities lending transactions will be secured with cash collateral in amounts at least equal to 100% of the market value of the securities utilized in these transactions. Cash received by SSB from securities lending or Reverse Repo transactions is credited against the amounts borrowed under the line of credit. As of December 31, 2025, the LA balance of $130,000,000 was comprised of $22,821,973 from the line of credit and $107,178,027 cash received by SSB from securities lending or Reverse Repo transactions.
Upon return of securities by the Borrower or Reverse Repo counterparty, SSB will return the cash collateral to the Borrower or proceeds from the Reverse Repo, as applicable, which will eliminate the credit against the line of credit and will cause the drawdowns under the line of credit to increase by the amounts returned. Income earned on the loaned securities is retained by SSB, and any interest due on the reverse repurchase agreements is paid by SSB.
SSB has indemnified the fund for certain losses that may arise if the Borrower or a Reverse Repo Counterparty fails to return securities when due. With respect to securities lending transactions, upon a default of the securities borrower, SSB uses the collateral received from the Borrower to purchase replacement securities of the same issue, type, class and series. If the value of the collateral is less than the purchase cost of replacement securities, SSB is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any of the fund’s losses on the reinvested cash collateral. Although the risk of the loss of the securities is mitigated by receiving collateral from the Borrower or proceeds from the Reverse Repo counterparty and through SSB indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the Borrower or Reverse Repo counterparty fails to return the securities on a timely basis.
Interest charged is at the rate of overnight bank funding rate (OBFR) plus 0.700% and is payable monthly on the aggregate balance of the drawdowns outstanding under the LA. As of December 31, 2025, the fund had an aggregate balance of $130,000,000 at an interest rate of 4.35%, which is reflected in the Liquidity agreement on the Statement of assets and liabilities. During the year ended December 31, 2025, the average balance of the LA and the effective average interest rate were $130,000,000 and 4.98%, respectively.
The fund may terminate the LA with 60 days’ notice. If certain asset coverage and collateral requirements, or other covenants are not met, the LA could be deemed in default and result in termination. Absent a default or facility termination event, SSB is required to provide the fund with 360 days’ notice prior to terminating the LA.
Note 9—Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $99,658,934 and $142,522,291, respectively, for the year ended December 31, 2025.
Note 10—Industry or sector risk
The fund may invest a large percentage of its assets in one or more particular industries or sectors of the economy. If a large percentage of the fund’s assets are economically tied to a single or small number of industries or sectors of the economy, the fund will be less diversified than a more broadly diversified fund, and it may cause the fund to underperform if that industry or sector underperforms. In addition, focusing on a particular industry or sector may make the fund’s NAV more volatile. Further, a fund that invests in particular industries or sectors is particularly susceptible to the impact of market, economic, regulatory and other factors affecting those industries or sectors. Financial services companies can be hurt by economic declines, changes in interest rates, and regulatory and market impacts.
Note 11—Investment in affiliated underlying funds
The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
| ANNUAL REPORT | JOHN HANCOCK Financial Opportunities Fund | 29 |
Dividends and distributions | |||||||||
Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value |
| John Hancock Collateral Trust | 651,114 | $3,117,800 | $116,662,888 | $(113,266,338) | $(363) | $(108) | $169,079 | — | $6,513,879 |
Note 12—Restricted securities
The fund may hold restricted securities which are restricted as to resale and the fund has limited rights to registration under the Securities Act of 1933. Disposal may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. The following table summarizes the restricted securities held at December 31, 2025:
Issuer, Description | Original acquisition date | Acquisition cost | Beginning share amount | Shares purchased | Shares sold | Ending share amount | Value as a percentage of net assets | Ending value |
| Coastal Carolina Bancshares, Inc. | 12-18-25 | $3,250,000 | — | 260,000 | — | 260,000 | 0.4% | $3,206,060 |
| Walden Mutual | 9-1-22 | 1,000,000 | 100,000 | — | — | 100,000 | 0.1% | 607,000 |
$3,813,060 |
Note 13—Transactions in securities of affiliated issuers
Affiliated issuers, as defined by the 1940 Act, are those in which the fund’s holdings of an issuer represent 5% or more of the outstanding voting securities of the issuer. A summary of the fund’s transactions in the securities of these issuers during the year ended December 31, 2025, is set forth below:
Dividends and distributions | |||||||||
Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value |
| First Reliance Bancshares, Inc. | 426,454 | $4,089,694 | — | — | — | $1,138,632 | — | — | $5,228,326 |
| White River Bancshares Company* | 134,640 | 530,367 | $5,494,794 | — | — | 638,173 | $67,245 | — | 6,663,334 |
— | $1,776,805 | $67,245 | — | $11,891,660 | |||||
| * | The security was not an affiliate at the beginning of the year. |
Note 14—Segment reporting
The management committee of the Advisor acts as the fund’s chief operating decision maker (the CODM), assessing performance and making decisions about resource allocation. The fund represents a single operating segment, as the CODM monitors and assesses the operating results of the fund as a whole, and the fund’s long-term strategic asset allocation is managed in accordance with the terms of its prospectus, based on a defined investment strategy which is executed by the portfolio management team of the fund’s subadvisor. Segment assets are reflected in the Statement of assets and liabilities as “Total assets”, which consists primarily of total investments at value. The financial information, including the measurement of profit and loss and significant expenses, provided to and reviewed by the CODM is consistent with that presented within the Statement of
| 30 | JOHN HANCOCK Financial Opportunities Fund | ANNUAL REPORT |
operations, which includes “Increase (decrease) in net assets from operations”, Statements of changes in net assets, which includes “Increase (decrease) in net assets from fund share transactions”, and Financial highlights, which includes total return and income and expense ratios.
| ANNUAL REPORT | JOHN HANCOCK Financial Opportunities Fund | 31 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of John Hancock Financial Opportunities Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Financial Opportunities Fund (the "Fund") as of December 31, 2025, the related statements of operations and cash flows for the year ended December 31, 2025, the statements of changes in net assets for each of the two years in the period ended December 31, 2025, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2025 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2025, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2025 and the financial highlights for each of the five years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2025, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
February 11, 2026
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
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Tax information
(Unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended December 31, 2025.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable as Section 163(j) Interest Dividends.
The fund paid $36,683,136 in long-term capital gain dividends.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2025 Form 1099-DIV in early 2026. This will reflect the tax character of all distributions paid in calendar year 2025.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
| ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 33 |
Investment objective, principal investment strategies, and principal risks
Unaudited
Investment Objective
The fund’s primary investment objective is to provide a high level of total return consisting of long-term capital appreciation and current income.
Principal Investment Strategies
Under normal circumstances, the fund will invest at least 80% of its net assets in equity securities of U.S. and foreign financial services companies of any size. These companies may include, but are not limited to, banks, thrifts, finance and financial technology companies, brokerage and advisory firms, real estate-related firms, insurance companies and financial holding companies. The equity securities in which the fund may invest are common stocks, preferred stocks, warrants, stock purchase rights and securities convertible into other equity securities. Because the fund normally invests more than 25% of its assets in securities of issuers in the banking and thrift industry, the fund is considered to be “concentrated” in this industry. “Net assets” is defined as net assets plus any borrowings for investment purposes. The fund will notify shareholders at least 60 days prior to any change in this 80% policy.
The fund may invest up to 20% of its total assets in common and preferred equity securities and other preferred securities of foreign banking, lending and financial services companies, including securities quoted in foreign currencies. The fund will focus on common and preferred equity securities of issuers, in that the Advisor believes are undervalued by the marketplace as indicated by, among other factors: (1) the value and quality of the underlying assets of the financial services companies; and (2) the value of a financial services company relative to its earnings potential and to market valuations of comparable companies.
The fund may invest in securities of issuers that are small from a national perspective but have a significant share of their local market. The Advisor intends to focus its investment analysis on delinquency trends, reserve levels and investment and loan portfolio compositions, among other things, in assessing asset quality.
Under normal market conditions, the fund may also invest up to 20% of its net assets in the common and preferred equity securities and other preferred securities of non-financial services companies. The fund also may invest in investment grade securities. The fund may also invest in debt securities that are rated, at the time of purchase, below investment grade (junk bonds) (i.e., rated “Ba” or lower by Moody’s or “BB” or lower by S&P), or in unrated securities determined by the fund’s Advisor or Subadvisor to be of comparable quality. The fund will not purchase debt securities rated below C or which are in default at the time of purchase.
The fund may enter into interest-rate swaps for the purposes of reducing risk, obtaining efficient market exposure, and/or enhancing investment returns. The fund may engage in portfolio trading, may issue preferred shares, borrow or issue short-term debt securities, and enter into reverse repurchase agreements to obtain investment leverage either alone and/or in combination with other forms of investment leverage or for temporary purposes. The fund utilizes a liquidity agreement to increase its assets available for investments, and may also seek to obtain additional income or portfolio leverage by making secured loans of its portfolio securities with a value of up to 33 1/3% of its total assets.
The manager may also take into consideration environmental, social, and/or governance (ESG) factors, alongside other relevant factors, as part of its investment selection process. The ESG characteristics utilized in the fund’s investment process may change over time and one or more characteristics may not be relevant with respect to all issuers that are eligible fund investments. Because ESG factors are considered alongside other relevant factors, the manager may determine that an investment is appropriate notwithstanding its relative ESG characteristics.
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Principal Risks
As is the case with all exchange-listed closed-end funds, shares of this fund may trade at a discount or a premium to the fund’s net asset value (NAV). An investment in the fund is subject to investment and market risks, including the possible loss of the entire principal invested.
The fund’s main risks are listed below in alphabetical order, not in order of importance.
Banking industry risk.
Commercial banks (including “money center” regional and community banks), savings and loan associations, and holding companies of the foregoing are especially subject to adverse effects of volatile interest rates, concentrations of loans in particular industries (such as real estate or energy), and significant competition. Profitability of these businesses depends significantly upon the availability and cost of capital funds. Economic conditions in the real estate market may have a particularly strong effect on certain banks and savings associations. Commercial banks and savings associations are subject to extensive federal and state regulation. Neither such extensive regulation nor the federal insurance of deposits ensures the solvency or profitability of companies in this industry, and there is no assurance against losses in securities issued by such companies.
Changing distribution level & return of capital risk.
There is no guarantee prior distribution levels will be maintained, and distributions may include a substantial tax return of capital. A return of capital is the return of all or a portion of a shareholder’s investment in the fund.
Concentration risk.
Because the fund focuses on a single industry or sector of the economy, its performance depends in large part on the performance of that industry or sector. As a result, the value of an investment may fluctuate more widely since it is more susceptible to market, economic, political, regulatory, and other conditions and risks affecting that industry or sector than a fund that invests more broadly across industries a
Credit and counterparty risk.
The issuer or guarantor of a fixed-income security, the counterparty to an over-the-counter derivatives contract, or a borrower of fund securities may not make timely payments or otherwise honor its obligations. A downgrade or default affecting any of the fund’s securities could affect the fund’s performance.
Economic and market events risk.
Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth, may at times result in unusually high market volatility, which could negatively impact performance. Reduced liquidity in credit and fixed-income markets could adversely affect issuers worldwide. Financial institutions could suffer losses as interest rates rise or economic conditions deteriorate.
Equity securities risk.
The price of equity securities may decline due to changes in a company’s financial condition or overall market conditions. Securities the manager believes are undervalued may never realize their full potential value, and in certain markets value stocks may underperform the market as a whole.
ESG integration risk.
The manager considers ESG factors that it deems relevant or additive, along with other material factors and analysis, when managing the fund. The portion of the fund’s investments for which the manager considers these ESG factors may vary, and could increase or decrease over time. In certain situations, the extent to which these ESG factors may be applied according to the manager’s integrated investment process may not include U.S. Treasuries, government securities, or other asset classes. ESG factors may include, but are not limited to, matters regarding board diversity, climate change policies, and supply chain and human rights policies. Integration of ESG factors into the fund’s investment strategy does not preclude the fund from including companies with low ESG scores or excluding companies with high ESG scores in the fund’s investments. Incorporating ESG criteria and making investment decisions based on certain ESG characteristics, as determined by the Advisor, carries the risk that the fund may perform differently, including underperforming funds that do not utilize ESG criteria or funds that utilize different ESG criteria. Integration of ESG factors into the fund’s investment process may result in a manager making different investments for the fund than for a fund with a similar investment universe and/or investment style that does not incorporate such considerations in its
investment
| ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 35 |
strategy or processes, and the fund’s investment performance may be affected. Because ESG factors are one of many considerations for the fund, the manager may nonetheless include
companies
with low ESG characteristics
or exclude companies with high ESG characteristics in the fund’s investments.Fixed-income securities risk.
A rise in interest rates typically causes bond prices to fall. The longer the average maturity or duration of the bonds held by a fund, the more sensitive it will likely be to interest-rate fluctuations. An issuer may not make all interest payment or repay all or any of the principal borrowed. Changes in a security’s credit quality may adversely affect fund performance. Additionally, the value of inflation-indexed securities is subject to the effects of changes in market interest rates caused by factors other than inflation (“real interest rates”). Generally, when real interest rates rise, the value of inflation-indexed securities will fall and the fund’s value may decline as a result of this exposure to these securities.
Foreign securities risk.
Less information may be publicly available regarding foreign issuers, including foreign government issuers. Foreign securities may be subject to foreign taxes and may be more volatile than U.S. securities. Currency fluctuations and political and economic developments may adversely impact the value of foreign securities.
Hedging, derivatives, and other strategic transactions risk.
Hedging, derivatives, and other strategic transactions may increase a fund’s volatility and could produce disproportionate losses, potentially more than the fund’s principal investment. Risks of these transactions are different from and possibly greater than risks of investing directly in securities and other traditional instruments. Under certain market conditions, derivatives could become harder to value or sell and may become subject to liquidity risk (i.e., the inability to enter into closing transactions). Derivatives and other strategic transactions that the fund intends to utilize include: interest rate swaps and reverse repurchase agreements. Swaps generally are subject to counterparty risk. In addition, swaps may be subject to interest-rate and settlement risk, and the risk of default of the underlying reference obligation. An event of default or insolvency of the counterparty to a reverse repurchase agreement could result in delays or restrictions with respect to the fund’s ability to dispose of the underlying securities, in addition, a reverse repurchase agreement may be considered a form of leverage and may, therefore, increase fluctuations in the fund’s net asset value per share (NAV).
Large company risk.
Larger companies may grow more slowly than smaller companies or be slower to respond to business developments. Large-capitalization securities may underperform the market as a whole.
Leveraging risk.
Issuing preferred shares or using derivatives may result in a leveraged portfolio. Leveraging long exposures increases a fund’s losses when the value of its investments declines. Some derivatives have the potential for unlimited loss, regardless of the size of the initial investment. The fund also utilizes a Liquidity Agreement to increase its assets available for investment. See “Note 7 —Leverage risk” above.
Liquidity risk.
The extent (if at all) to which a security may be sold or a derivative position closed without negatively impacting its market value may be impaired by reduced market activity or participation, legal restrictions, or other economic and market impediments.
Lower-rated and high-yield fixed-income securities risk.
Lower-rated and high-yield fixed-income securities (junk bonds) are subject to greater credit quality risk, risk of default, and price volatility than higher-rated fixed-income securities, may be considered speculative, and can be difficult to resell.
Operational and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund assets, customer data, or proprietary information, or cause a fund or its service providers to suffer data corruption or lose operational functionality. Similar incidents affecting issuers of a fund’s
securities
may negatively impact performance. Operational risk may arise from human error, error by third parties, communication errors, or technology failures, among other causes.| 36 | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | ANNUAL REPORT |
Preferred and convertible securities risk.
Preferred stock dividends are payable only if declared by the issuer’s board. Preferred stock may be subject to redemption provisions. The market values of
convertible
securities tend to fall as interest rates rise and rise as interest rates fall. Convertible preferred stock’s value can depend heavily upon the underlying common stock’s value.Real estate investment trust risk.
REITs, pooled investment vehicles that typically invest in real estate directly or in loans collateralized by real estate, carry risks associated with owning real estate, including the potential for a decline in value due to economic or market conditions.
Real estate securities risk.
Securities of companies in the real estate industry carry risks associated with owning real estate, including the potential for a decline in value due to economic or market conditions.
Small and mid-sized company risk.
Small and mid-sized companies are generally less established and may be more volatile than larger companies. Small and/
or
mid-capitalization securities may underperform the market as a whole.| ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 37 |
ADDITIONAL INFORMATION
Unaudited
The fund is a closed-end, diversified management investment company, shares of which were initially offered to the public in August 1994.
Dividends and distributions
During the year ended December 31, 2025, distributions from net investment income totaling $0.7500 per share and distributions from capital gains totaling $1.8500 per share were paid to shareholders. The dates of payments and the amounts per share were as follows:
Payment Date | Income Distributions |
| March 31, 2025 | $0.6500 |
| June 30, 2025 | 0.6500 |
| September 30, 2025 | 0.6500 |
| December 31, 2025 | 0.6500 |
Total | $2.6000 |
Dividend reinvestment plan
The fund’s Dividend Reinvestment Plan (the Plan) provides that distributions of dividends and capital gains are automatically reinvested in common shares of the fund by Computershare Trust Company, N.A. (the Plan Agent). Every shareholder holding at least one full share of the fund is entitled to participate in the Plan. In addition, every shareholder who became a shareholder of the fund after June 30, 2011, and holds at least one full share of the fund will be automatically enrolled in the Plan. Shareholders may withdraw from the Plan at any time and shareholders who do not participate in the Plan will receive all distributions in cash.
If the fund declares a dividend or distribution payable either in cash or in common shares of the fund and the market price of shares on the payment date for the distribution or dividend equals or exceeds the fund’s net asset value per share (NAV), the fund will issue common shares to participants at a value equal to the higher of NAV or 95% of the market price. The number of additional shares to be credited to each participant’s account will be determined by dividing the dollar amount of the distribution or dividend by the higher of NAV or 95% of the market price. If the market price is lower than NAV, or if dividends or distributions are payable only in cash, then participants will receive shares purchased by the Plan Agent on participants’ behalf on the NYSE or otherwise on the open market. If the market price exceeds NAV before the Plan Agent has completed its purchases, the average per share purchase price may exceed NAV, resulting in fewer shares being acquired than if the fund had issued new shares.
There are no brokerage charges with respect to common shares issued directly by the fund. However, whenever shares are purchased or sold on the NYSE or otherwise on the open market, each participant will pay a pro rata portion of brokerage trading fees, currently $0.05 per share purchased or sold. Brokerage trading fees will be deducted from amounts to be invested.
The reinvestment of dividends and net capital gains distributions does not relieve participants of any income tax that may be payable on such dividends or distributions.
Shareholders participating in the Plan may buy additional shares of the fund through the Plan at any time in amounts of at least $50 per investment, up to a maximum of $10,000, with a total calendar year limit of $100,000. Shareholders will be charged a $5 transaction fee plus $0.05 per share brokerage trading fee for each order. Purchases of additional shares of the fund will be made on the open market. Shareholders who elect to utilize monthly electronic fund transfers to buy additional shares of the fund will be charged a $2 transaction fee plus $0.05 per share brokerage trading fee for each automatic purchase. Shareholders can also sell fund shares held in the Plan account at any time by contacting the Plan Agent by telephone, in writing or by visiting the Plan
| 38 | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | ANNUAL REPORT |
Agent’s website at www.computershare.com/investor. The Plan Agent will mail a check (less applicable brokerage trading fees) on settlement date. Pursuant to regulatory changes, effective September 5, 2017, the settlement date is changed from three business days after the shares have been sold to two business days after the shares have been sold. If shareholders choose to sell shares through their stockbroker, they will need to request that the Plan Agent electronically transfer those shares to their stockbroker through the Direct Registration System.
Shareholders participating in the Plan may withdraw from the Plan at any time by contacting the Plan Agent by telephone, in writing or by visiting the Plan Agent’s website at www.computershare.com/investor. Such termination will be effective immediately if the notice is received by the Plan Agent prior to any dividend or distribution record date; otherwise, such termination will be effective on the first trading day after the payment date for such dividend or distribution, with respect to any subsequent dividend or distribution. If shareholders withdraw from the Plan, their shares will be credited to their account; or, if they wish, the Plan Agent will sell their full and fractional shares and send the shareholders the proceeds, less a transaction fee of $5 and less brokerage trading fees of $0.05 per share. If a shareholder does not maintain at least one whole share of common stock in the Plan account, the Plan Agent may terminate such shareholder’s participation in the Plan after written notice. Upon termination, shareholders will be sent a check for the cash value of any fractional share in the Plan account, less any applicable broker commissions and taxes.
Shareholders who hold at least one full share of the fund may join the Plan by notifying the Plan Agent by telephone, in writing or by visiting the Plan Agent’s website at www.computershare.com/investor. If received in proper form by the Plan Agent before the record date of a dividend, the election will be effective with respect to all dividends paid after such record date. If shareholders wish to participate in the Plan and their shares are held in the name of a brokerage firm, bank or other nominee, shareholders should contact their nominee to see if it will participate in the Plan. If shareholders wish to participate in the Plan, but their brokerage firm, bank or other nominee is unable to participate on their behalf, they will need to request that their shares be re-registered in their own name, or they will not be able to participate. The Plan Agent will administer the Plan on the basis of the number of shares certified from time to time by shareholders as representing the total amount registered in their name and held for their account by their nominee.
Experience under the Plan may indicate that changes are desirable. Accordingly, the fund and the Plan Agent reserve the right to amend or terminate the Plan. Participants generally will receive written notice at least 90 days before the effective date of any amendment. In the case of termination, participants will receive written notice at least 90 days before the record date for the payment of any dividend or distribution by the fund.
All correspondence or requests for additional information about the Plan should be directed to Computershare Trust Company, N.A., at the address stated below, or by calling 800-852-0218, 201-680-6578 (For International Telephone Inquiries) and 800-952-9245 (For the Hearing Impaired (TDD)).
Additional Financial Highlights and Senior securities
The following information is presented in conformance with annual reporting requirements for funds that have filed a registration statement pursuant to General Instruction A.2 of Form N-2 (“Short Form N-2”). The table below sets forth additional Financial Highlights and each class of senior securities outstanding of the fund for the years ended, as indicated below. Refer to the “Financial highlights” for the most recent five years of senior securities outstanding, which have been audited by PricewaterhouseCoopers LLP (“PwC”), the fund’s independent registered public accounting firm. The report of PwC is included within this report.
Period ended | 12-31-20 | 12-31-19 | 12-31-18 | 12-31-17 | 12-31-16 |
Per share operating performance | |||||
Net asset value, beginning of period | $36.38 | $29.06 | $36.94 | $34.98 | $26.17 |
| Net investment income 1 | 0.60 | 0.50 | 0.39 | 0.37 | 0.50 |
| Net realized and unrealized gain (loss) on investments | (6.30) | 9.02 | (6.61) | 3.07 | 9.79 |
| ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 39 |
Period ended | 12-31-20 | 12-31-19 | 12-31-18 | 12-31-17 | 12-31-16 |
Total from investment operations | (5.70) | 9.52 | (6.22) | 3.44 | 10.29 |
Less distributions | |||||
| From net investment income | (0.65) | (0.48) | (0.40) | (0.42) | (0.40) |
| From realized gains | (1.55) | (1.72) | (1.26) | (1.06) | (1.08) |
Total distributions | (2.20) | (2.20) | (1.66) | (1.48) | (1.48) |
Net asset value, end of period | $28.48 | $36.38 | $29.06 | $36.94 | $34.98 |
Per share market value, end of the period | $30.35 | $36.30 | $27.93 | $39.33 | $36.27 |
Total return at net asset value (%) 2, 3 | (13.38) | 33.71 | (17.42) | 10.08 | 41.10 |
Total return at market value (%) 2 | (7.49) | 38.81 | (25.46) | 13.03 | 36.60 |
Ratio and Supplemental data | |||||
| Net assets, end of period (in millions) | $535 | $680 | $543 | $689 | $651 |
| Ratios (as a percentage of average net assets): | |||||
| Expenses before reductions | 2.21 | 2.27 | 2.04 | 1.93 | 2.02 |
| Expenses including reductions 4 | 2.01 | 2.08 | 1.86 | 1.75 | 1.82 |
| Net investment income | 2.50 | 1.52 | 1.04 | 1.07 | 1.88 |
| Portfolio turnover (%) | 10 | 13 | 11 | 5 | 11 |
Senior Securities | |||||
| Total debt outstanding end of period (in millions) | $ | $ | $ | $ | $ |
| Asset coverage per $1,000 of debt 5 | $ | $ | $ | $ | $ |
| 1 | Based on average daily shares outstanding. |
| 2 | Total return based on net asset value reflects changes in the fund’s net asset value during each period. Total return based on market value reflects changes in market value. Each figure assumes that distributions from income, capital gains and tax return of capital, if any, were reinvested. |
| 3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
| 4 | Expenses including reductions excluding interest expense were 1.69%, 1.50%, 1.44%, 1.45% and 1.58% for the periods ended 12-31-20, 12-31-19, 12-31-18, 12-31-17 and 12-31-16, respectively. |
| 5 | Asset coverage equals the total net assets plus borrowings divided by the borrowings of the fund outstanding at period end (Note 8). As debt outstanding changes, the level of |
Summary of fund expenses
The following information is presented in conformance with annual reporting requirements for funds that have filed a registration statement pursuant to General Instruction A.2 of Short Form N-2. The purpose of the table below is to help you understand all fees and expenses that you, as a common shareholder, would bear directly or indirectly. In accordance with SEC requirements, the table below shows the fund’s expenses as a percentage of its average net assets as of December 31, 2025, and not as a percentage of total assets. By showing expenses as a percentage of average net assets, expenses are not expressed as a percentage of all of
the
assets in which the fund invests. The offering costs to be paid or reimbursed by the fund are not included in the annual expenses table below. However, these expenses will be borne by common shareholders and may result in a reduction in the NAV of the common shares. The table and example are based on the fund’s capital structure as of December 31, 2025.Shareholder Transaction Expenses | |
| Sales load ( 1 | |
| Offering expenses ( 1 | |
| Dividend Reinvestment Plan fees 2 |
Annual Expenses ( | |
| Management fees 3 | |
| Interest payments on borrowed funds 4 |
| 40 | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | ANNUAL REPORT |
| Other expenses | |
| Total Annual Operating Expenses | |
| Contractual Expense Reimbursement 5 | ( |
| Total Annual Fund Operating Expenses After Expense Reimbursements |
| 1 | |
| 2 | Participants in the fund’s dividend reinvestment plan do not pay brokerage charges with respect to common shares issued directly by the fund. However, whenever common shares are purchased or sold on the NYSE or otherwise on the open market, each participant will pay a pro rata portion of brokerage trading fees, currently $0.05 per share purchased or sold. Brokerage trading fees will be deducted from amounts to be invested. Shareholders participating in the Plan may buy additional common shares of the fund through the Plan at any time and will be charged a $5 transaction fee plus $0.05 per share brokerage trading fee for each order. See “Dividends and distributions” and “Dividend reinvestment plan”. |
| 3 | |
| 4 | The fund uses leverage by borrowing under a liquidity agreement. “Interest payments on borrowed funds” includes all interest paid in connection with outstanding loans. See “Note 8 - “Liquidity Agreement.” |
| 5 | The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate managed assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended December 31, 2025, this waiver amounted to 0.01% of the fund’s average daily net assets. This agreement expires on July 31, 2027, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.The Advisor contractually agrees to limit its administration fee to 0.10% of the fund’s average weekly gross assets. This agreement expires on April 30, 2027, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time. |
Example
The following example illustrates the expenses that Common Shareholders would pay on a $1,000 investment in common shares, assuming (i) total annual expenses set forth above, including any reimbursements through their current expiration date; ; (ii) (a 5% annual return; and (iii) all distributions are reinvested at NAV:
1 Year | 3 Years | 5 Years | 10 Years | |
| Total Expenses | $ | $ | $ | $ |
The above table and example and the assumption in the example of a 5% annual return are required by regulations of the SEC that are applicable to all investment companies; the assumed 5% annual return is not a prediction of, and does not represent, the projected or actual performance of the fund’s common shares. For more complete descriptions of certain of the fund’s costs and expenses, see “Management of the Fund” in the fund’s prospectus. In addition, while the example assumes reinvestment of all dividends and distributions at NAV, participants in the Fund’s dividend reinvestment plan may receive Common Shares purchased or issued at a price or value different from NAV. See “Distribution Policy” and “Dividend Reinvestment Plan” in the fund’s prospectus.
The example should not be considered a representation of past or future expenses, and the fund’s actual expenses may be greater or less than those shown. Moreover, the fund’s actual rate of return may be greater or less than the hypothetical 5% return shown in the example.
Market and Net Asset Value Information
The following table, presented in conformance with annual reporting requirements for funds that have filed a registration statement pursuant to General Instruction A.2 of Short Form N-2, sets forth, for each of the periods indicated, the high and low closing market prices of the fund’s Common Shares on the NYSE, the high and low NAV per common share and the high and low premium/discount to NAV per common share. See Note 2, Investment Valuation and Fair Value Measurements in the Notes to Financial Statements for information as to how the Fund’s NAV is determined.
| ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 41 |
The fund’s currently outstanding Common Shares are listed on the New York Stock Exchange (“NYSE”) under the symbol BTO and commenced trading on the NYSE in 1994.
The fund’s common shares have traded both at a premium and at a discount to its net asset value (“NAV”). The fund cannot predict whether its shares will trade in the future at a premium or discount to NAV. The provisions of the 1940 Act generally require that the public offering price of common shares (less any underwriting commissions and discounts) must equal or exceed the NAV per share of a company’s common stock (calculated within 48 hours of pricing). The fund’s issuance of common shares may have an adverse effect on prices in the secondary market for common shares by increasing the number of common shares available, which may put downward pressure on the market price for common shares. Shares of common stock of closed-end investment companies frequently trade at a discount from NAV. See “Risk Factors—General Risks—Market Discount Risk” and “—Secondary Market for the Common Shares” in the within the fund’s prospectus.
The following table sets forth for each of the periods indicated the high and low closing market prices for common shares on the NYSE, and the corresponding NAV per share and the premium or discount to NAV per share at which the fund’s common shares were trading as of such date. NAV is determined once daily as of the close of regular trading of the NYSE (typically 4:00 P.M., Eastern Time). See “Determination of Net Asset Value” within the fund’s prospectus for information as to the determination of the fund’s NAV.
Market Price | NAV per Share on Data of Market Price High and Low | Premium/(Discount) on Date of Market Price High and Low | ||||
Fiscal Quarter Ended | High | Low | High | Low | High | Low |
| March 31, 2024 | $ | $ | $ | $ | - | |
| June 30, 2024 | - | |||||
| September 30, 2024 | - | - | ||||
| December 31, 2024 | - | |||||
| March 31, 2025 | ||||||
| June 30, 2025 | ||||||
| September 30, 2025 | ||||||
| December 31, 2025 | - | - | ||||
The fund does not believe that there are any material unresolved written comments, received 180
days
or more before December 31, 2025, from the Staff of the SEC regarding any of the fund’s periodic or current reports under the Securities Exchange Act or the 1940 Act, or its registration statement.Shareholder communication and assistance
If you have any questions concerning the fund, we will be pleased to assist you. If you hold shares in your own name and not with a brokerage firm, please address all notices, correspondence, questions or other communications regarding the fund to the transfer agent at:
Regular Mail:
Computershare
P.O. Box 43006
Providence, RI 02940-3078
Computershare
P.O. Box 43006
Providence, RI 02940-3078
Registered or Overnight Mail:
Computershare
150 Royall Street, Suite 101
Canton, MA 02021
Computershare
150 Royall Street, Suite 101
Canton, MA 02021
If your shares are held with a brokerage firm, you should contact that firm, bank or other nominee for assistance.
| 42 | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | ANNUAL REPORT |
Trustees and Officers
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees | ||
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since 1 | Number of John Hancock funds overseen by Trustee |
Hassell H. McClellan, Born: 1945 | 2012 | 179 |
Trustee and Chairperson of the Board | ||
| Trustee of Berklee College of Music (since 2022); Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The | ||
William K. Bacic, 4 Born: 1956 | 2024 | 172 |
Trustee | ||
| Director, Audit Committee Chairman, and Risk Committee Member, DWS USA Corp. (formerly, Deutsche Asset Management) (2018-2024); Senior Partner, Deloitte & Touche LLP (1978-retired 2017, including prior positions), specializing in the investment management industry. Trustee of various trusts within the John Hancock Fund Complex (since 2024). | ||
James R. Boyle, Born: 1959 | 2015 | 172 |
Trustee | ||
| Board Member, United of Omaha Life Insurance Company (since 2022); Board Member, Mutual of Omaha Investor Services, Inc. (since 2022); Foresters Financial, | ||
Grace K. Fey, Born: 1946 | 2012 | 179 |
Trustee | ||
| Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); | ||
Dean C. Garfield, Born: 1968 | 2022 | 172 |
Trustee | ||
| Senior Vice-President, TKO Group (a premier sports and live entertainment company) (since 2025); Vice President, Netflix, Inc. (2019-2024); President & Chief Executive Officer, Information Technology Industry Council (2009–2019); NYU School of Law Board of Trustees (since 2021); Member, U.S. Department of Transportation, Advisory Committee on Automation (since 2021); President of the United States Trade Advisory Council (2010–2018); Board Member, College for Every Student (2017–2021); Board Member, The Seed School of Washington, D.C. (2012–2017); Advisory Board Member of the Block Center for Technology and Society (since 2019). Trustee of various trusts within the John Hancock Fund Complex (since 2022). |
| ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 43 |
Independent Trustees (continued) | ||
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since 1 | Number of John Hancock funds overseen by Trustee |
Christine L. Hurtsellers, 2 Born: 1963 | 2025 | 172 |
Trustee | ||
| Director, Investment Committee Chair, Chariot Re (since 2025); Board Counselor, UNICEF USA (since 2018); Board Counselor, The Carter Center (since 2010); Voya Financial, Inc., Chief Executive Officer, Voya Investment Management (2016-2024), Chief Investment Officer, Fixed Income (2009-2016); Board Governor, Investment Company Institute (2019-2024); Director, Pomona Capital, (2018-2024); Former Member, US Treasury Borrowing Advisory Committee, (2014-2022). Trustee of various trusts within the John Hancock Fund Complex (since 2025). | ||
Deborah C. Jackson, Born: 1952 | 2008 | 175 |
Trustee | ||
| President, Cambridge College, Cambridge, Massachusetts (2011-2023); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee (since 2008) and Vice Chairperson of the Board (since 2025) of various trusts within the John Hancock Fund Complex. | ||
Noni Ellison McKee, Born: 1971 | 2022 | 172 |
Trustee | ||
| Senior Vice President, General Counsel & Corporate Secretary, Tractor Supply Company (rural lifestyle retailer) (2021-2026); General Counsel, Chief Compliance Officer & Corporate Secretary, Carestream Dental, L.L.C. (2017–2021); Associate General Counsel & Assistant Corporate Secretary, W.W. Grainger, Inc. (global industrial supplier) (2015–2017); Board Member, Goodwill of North Georgia, 2018 (FY2019)–2020 (FY2021); Board Member, Howard University School of Law Board of Visitors (since 2021); Board Member, University of Chicago Law School Board of Visitors (since 2016); Board member, Children’s Healthcare of Atlanta Foundation Board (2021–2023), Board Member, Congressional Black Caucus Foundation (since 2024). Trustee of various trusts within the John Hancock Fund Complex (since 2022). | ||
Kenneth J. Phelan, 2 Born: 1959 | 2025 | 172 |
| Trustee | ||
| Director, Audit, Finance & Social Responsibility Committees member, Adtalem Global Education Inc. (since 2020); Director, Risk Oversight Chair, Executive, Human Resources & Compensation Committees member, Huntington Bancshares Incorporated (since 2019); Senior Advisor, Oliver Wyman, Inc. (since 2019); Chief Risk Officer, U.S. Department of the Treasury (2014-2019). Trustee of various trusts within the John Hancock Fund Complex (since 2025). |
| 44 | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | ANNUAL REPORT |
Independent Trustees (continued) | ||
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since 1 | Number of John Hancock funds overseen by Trustee |
Frances G. Rathke, 4 Born: 1960 | 2020 | 172 |
| Trustee | ||
| Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); Director, Audit Committee Chair and Compensation Committee Member, | ||
Thomas R. Wright, Born: 1961 | 2024 | 172 |
| Trustee | ||
| Chief Operating Officer, JMP Securities (2020-2023); Director of Equities, JMP Securities (2013-2023); Executive Committee Member, JMP Group (2013-2023); Global Head of Trading, Sanford C. Bernstein & Co. (2004-2012); and Head of European Equity Trading and Salestrading, Merrill, Lynch & Co (2003-2004); Head of US Equity Cash Trading and Salestrading, Merrill Lynch & Co (1998-2002). Trustee of various trusts within the John Hancock Fund Complex (since 2024). |
Non-Independent Trustees 5 | ||
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since 1 | Number of John Hancock funds overseen by Trustee |
Andrew G. Arnott, Born: 1971 | 2017 | 176 |
Non-Independent Trustee | ||
| Global Head of Institutional for Manulife (since 2025); Global Head of Retail for Manulife (2022-2025); Head of Wealth and Asset Management, United | ||
Kristie M. Feinberg, 3 Born: 1975 | 2023 | 172 |
Non-Independent Trustee and President (Chief Executive Officer and Principal Executive Officer) | ||
| Head of Retail, Manulife Investment Management (since 2025); Head of Wealth & Asset Management, U.S. and Europe, for John Hancock and Manulife (2023–2025); Director and Chairman, John Hancock Investment Management LLC (since 2023); Director and Chairman, John Hancock Variable Trust Advisers LLC (since 2023); Director and Chairman, John Hancock Investment Management Distributors LLC (since 2023); CFO and Global Head of Strategy, Manulife Investment Management (2021–2023, including prior positions); CFO Americas & Global Head of Treasury, Invesco, Ltd., Invesco US (2019–2020, including prior positions); Senior Vice President, Corporate Treasurer and Business Controller, Oppenheimer Funds (2001–2019, including prior positions); President (Chief Executive Officer and Principal Executive Officer) of various trusts within the John Hancock Fund Complex (since 2023, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2025). | ||
| ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 45 |
Principal officers who are not Trustees | |
Name, year of birth Position(s) held with fund Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Fernando A. Silva, Born: 1977 | 2007 |
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |
| Director, Fund Administration and Assistant Treasurer, John Hancock Funds (2016-2020); Assistant Treasurer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Assistant Vice President, John Hancock Life & Health Insurance Company, John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York (since 2021); Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) of various trusts within the John Hancock Fund Complex (since 2024). | |
Salvatore Schiavone, Born: 1965 | 2010 |
Treasurer | |
| Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock | |
Christopher (Kit) Sechler, Born: 1973 | 2018 |
Secretary and Chief Legal Officer | |
| Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel | |
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer | |
| Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock | |
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
A copy of the Statement of Additional Information may be obtained without charge by visiting the Fund’s website, (jhinvestments.com) or by calling 800-225-6020 (toll-free) or from the SEC’s website at www.sec.gov.
1 | Mr. Boyle, Ms. Fey, Mr. Lorentz, and Dr. McClellan serve as Trustees for a term expiring in 2026; Mr. Bacic, Ms. Ellison McKee, Ms Rathke and Mr. Wright serve as Trustees for a term expiring in 2027; |
2 | Serves as Trustee effective November 12, 2025. |
3 | Serves as Non-Independent Trustee effective June 30, 2025. |
4 | Member of the Audit Committee. |
5 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain of its affiliates. |
| 46 | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | ANNUAL REPORT |
More information
†
Non-Independent Trustee
# Serves as Trustee effective November 12, 2025.
*
Member of the Audit Committee
§
Serves as Non-Independent Trustee effective as of June 30, 2025.
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as , and other fund details available on our website at jhinvestments.com or by calling 800-852-0218.
monthly portfolio holdings
The report is certified under the Sarbanes-Oxley Act, which requires closed-end funds and other public companies to affirm that, to the best of their knowledge, the information in their financial reports is fairly and accurately stated in all material respects.
| You can also contact us: | ||
800-852-0218 | Regular mail: | Express mail: |
jhinvestments.com | Computershare P.O. Box 43006 Providence, RI 02940-3078 | Computershare 150 Royall St., Suite 101 Canton, MA 02021 |
| ANNUAL REPORT | JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND | 47 |
John Hancock Investment Management LLC, 200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
Manulife, Manulife Investments, Stylized M Design, and Manulife Investments & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and John Hancock and the Stylized John Hancock Design are trademarks of John Hancock Life Insurance Company (U.S.A.). Each are used by it and by its affiliates under license.
| MF5113334 | P9A 12/25 |
2/26
ITEM 2. CODE OF ETHICS.
As of the end of the year, December 31, 2025, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Covered Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Frances G. Rathke and William K. Bacic are audit committee financial experts and are "independent", pursuant to general instructions on Form N-CSR Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees billed for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements amounted to $40,932 and $50,082 for the fiscal years ended December 31, 2025 and December 31, 2024, respectively. These fees were billed to the registrant and were approved by the registrant's audit committee.
(b) Audit-Related Services
Audit-related fees for assurance and related services by the principal accountant are billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser ("control affiliates") that provides ongoing services to the registrant. The nature of the services provided was related to a software licensing fee. Amounts billed to the registrant were $12 and $0 for fiscal years ended December 31, 2025 and December 31, 2024, respectively.
(c) Tax Fees
The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning ("tax fees") amounted to $4,382 and $4,382 for the fiscal years ended December 31, 2025 and December 31, 2024, respectively. The nature of the services comprising the tax fees was the review of the registrant's tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant's audit committee.
(d) All Other Fees
Other fees amounted to $0 and $0 for the fiscal years ended December 31, 2025 and December 31, 2024, respectively.
(e)(1) Audit Committee Pre-Approval Policies and Procedures
The registrant's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the "Auditor") relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The registrant's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of audit-related and non-audit services by the Auditor. The policies and procedures require that any audit- related and non-audit service provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per instance/per fund are subject to specific pre-approval by the Audit Committee. Tax services provided by the Auditor that are expected to exceed $30,000 per instance/per fund are subject to specific pre-approval by the Audit Committee.
All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal resolution of the Audit Committee. At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.
(e)(2) Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X
Audit-Related Fees, Tax Fees and All Other Fees
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f)According to the registrant's principal accountant for the fiscal year ended December 31, 2025, the percentage of hours spent on the audit of the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons who were
not full-time, permanent employees of principal accountant was less than 50%.
(g)The aggregate non-audit fees billed by the registrant's principal accountant for non-audit services rendered to the registrant and rendered to the registrant's control affiliates were $1,319,174 for the fiscal year ended December 31, 2025 and $871,886 for the fiscal year ended December 31, 2024.
(h)The audit committee of the registrant has considered the non-audit services provided by the registrant's principal accountant to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant's independence.
(i)Not applicable.
(j)Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant has a separately-designated standing audit committee comprised of independent trustees. The members of the audit committee are as follows:
Frances G. Rathke – Chairperson
William H. Cunningham - retired effective December 31, 2025
William K. Basic
Thomas R. Wright - effective January 1, 2026
ITEM 6. SCHEDULE OF INVESTMENTS.
(a)Refer to information included in Item 1.
(b)Not applicable.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PROXY DISCLOSURE FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.
Information included in Item 1, if applicable.
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
See attached exhibit "Proxy Voting Policies and Procedures".
ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Information about the Manulife Investment Management (US) LLC (“Manulife IM (US)”) portfolio managers
Below is a list of the Manulife Investment Management (US) LLC “Manulife IM (US)” portfolio managers who share joint responsibility for the day-to-day investment management of the Fund subject to oversight by John Hancock Investment Management LLC (the “Adviser”). It provides a brief summary of their business careers over the past five years. The information provided is as of the filing date of this N-CSR.
Susan A. Curry
Managing Director and Portfolio Manager
Manulife Investment Management (US) LLC since 2006
Managed the Fund since 2004
Began business career in 1993
Ryan P. Lentell, CFA
Managing Director and Portfolio Manager
Manulife Investment Management (US) LLC since 2008
Managed the Fund since 2008
Began business career in 1999
Other Accounts the Portfolio Managers are Managing
The table below indicates, for each portfolio manager, information about the accounts over which the portfolio manager has day-to-day investment responsibility. All information on the number of accounts and total assets in the table is as of December 31, 2025. For purposes of the table, “Other Pooled Investment Vehicles” may include investment partnerships and group trusts, and “Other Accounts” may include separate accounts for institutions or individuals, insurance company general or separate accounts, pension funds and other similar institutional accounts.
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Registered Investment |
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Other Pooled Investment |
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||||
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Companies |
|
Vehicles |
|
Other Accounts |
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Number of |
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Total |
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|
Total |
|
|
|
Total |
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|
|
|
Assets |
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Number of |
|
Assets |
|
Number of |
|
Assets |
|
|
|
|
Accounts |
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$Million |
|
Accounts |
|
$Million |
|
Accounts |
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$Million |
|
Susan A. |
|
4 |
|
4,923 |
|
8 |
|
328 |
|
5 |
|
1 |
|
Curry |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ryan P. |
|
3 |
|
1,259 |
|
2 |
|
132 |
|
0 |
|
0 |
|
Lentell, CFA |
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|
|
|
|
|
|
|
|
|
|
|
Accounts within the total accounts that are subject to a performance-based advisory fee: 0.
Conflicts of Interest. When a portfolio manager is responsible for the management of more than one account, the potential arises for the portfolio manager to favor one account over another. The principal types of potential conflicts of interest that may arise are discussed below. For the reasons outlined below, the Fund does not believe that any material conflicts are likely to arise out of a portfolio manager’s responsibility for the management of the Fund as well as one or more other accounts. The Advisor and Subadvisor have adopted procedures that are intended to monitor compliance with the policies referred to in the following paragraphs. Generally, the risks of such conflicts of interests are increased to the extent that a portfolio manager has a financial incentive to favor one account over another. The Advisor and Subadvisor have structured their compensation
arrangements in a manner that is intended to limit such potential for conflicts of interests. See “Compensation of Portfolio Managers” below.
•A portfolio manager could favor one account over another in allocating new investment opportunities that have limited supply, such as initial public offerings and private placements. If, for example, an initial public offering that was expected to appreciate in value significantly shortly after the offering was allocated to a single account, that account may be expected to have better investment performance than other accounts that did not receive an allocation on the initial public offering. The Subadvisor has policies that require a portfolio manager to allocate such investment opportunities in an equitable manner and generally to allocate such investments proportionately among all accounts with similar investment objectives.
•A portfolio manager could favor one account over another in the order in which trades for the accounts are placed. If a portfolio manager determines to purchase a security for more than one account in an aggregate amount that may influence the market price of the security, accounts that purchased or sold the security first may receive a more favorable price than accounts that made subsequent transactions. The less liquid the market for the security or the greater the percentage that the proposed aggregate purchases or sales represent of average daily trading volume, the greater the potential for accounts that make subsequent purchases or sales to receive a less favorable price. When a portfolio manager intends to trade the same security for more than one account, the policies of the Subadvisor generally require that such trades be “bunched,” which means that the trades for the individual accounts are aggregated and each account receives the same price. There are some types of accounts as to which bunching may not be possible for contractual reasons (such as directed brokerage arrangements). Circumstances may also arise where the trader believes that bunching the orders may not result in the best possible price. Where those accounts or circumstances are involved, the Subadvisor will place the order in a manner intended to result in as favorable a price as possible for such client.
•A portfolio manager could favor an account if the portfolio manager’s compensation is tied to the performance of that account rather than all accounts managed by the portfolio manager. If, for example, the portfolio manager receives a bonus based upon the performance of certain accounts relative to a benchmark while other accounts are disregarded for this purpose, the portfolio manager will have a financial incentive to seek to have the accounts that determine the portfolio manager’s bonus achieve the best possible performance to the possible detriment of other accounts. Similarly, if the Subadvisor receives a performance-based advisory fee, the portfolio manager may favor that account, whether or not the performance of that account directly determines the portfolio manager’s compensation. The investment performance on specific accounts is not a factor in determining the portfolio manager’s compensation. See “Compensation of Portfolio Managers” below. Neither the Advisor nor the Subadvisor receives a performance-based fee with respect to any of the accounts managed by the portfolio managers.
•A portfolio manager could favor an account if the portfolio manager has a beneficial interest in the account, in order to benefit a large client or to compensate a client that had poor returns. For example, if the portfolio manager held an interest in an investment partnership that was one of the accounts managed by the portfolio manager, the portfolio manager would have an economic incentive to favor the account in which the portfolio manager held an interest. The Subadvisor imposes certain trading restrictions and reporting requirements for accounts in which a portfolio manager or certain family members have a personal interest in order to confirm that such accounts are not favored over other accounts.
•If the different accounts have materially and potentially conflicting investment objectives or strategies, a conflict of interest may arise. For example, if a portfolio manager purchases a security for one account and sells the same security short for another account, such
trading pattern could disadvantage either the account that is long or short. In making portfolio manager assignments, the Subadvisor seeks to avoid such potentially conflicting situations. However, where a portfolio manager is responsible for accounts with differing investment objectives and policies, it is possible that the portfolio manager will conclude that it is in the best interest of one account to sell a portfolio security while another account continues to hold or increase the holding in such security.
Compensation of Portfolio Managers. The Subadvisor has adopted a system of compensation for portfolio managers and others involved in the investment process that is applied systematically among investment professionals. At the Subadvisor, the structure of compensation of investment professionals is currently composed of the following basic components: base salary and short-and long-term incentives. The following describes each component of the compensation package for the individuals identified as a portfolio manager for the Funds.
•Base salary. Base compensation is fixed and normally reevaluated on an annual basis. The Subadvisor seeks to set compensation at market rates, taking into account the experience and responsibilities of the investment professional.
•Incentives. Only investment professionals are eligible to participate in the short-and long-term incentive plan. Under the plan, investment professionals are eligible for an annual cash award. The plan is intended to provide a competitive level of annual bonus compensation that is tied to the investment professional achieving superior investment performance and aligns the financial incentives of the Subadvisor and the investment professional. Any bonus under the plan is completely discretionary, with a maximum annual bonus that may be well in excess of base salary. Payout of a portion of this bonus may be deferred for up to five years. While the amount of any bonus is discretionary, the following factors are generally used in determining bonuses under the plan:
•Investment Performance: The investment performance of all accounts managed by the investment professional over one, three and five-year periods are considered. With respect to fixed income accounts, relative yields are also used to measure performance. The pre-tax performance of each account is measured relative to an appropriate benchmark and universe.
•Financial Performance: The profitability of the Subadvisor and its parent company are also considered in determining bonus awards.
•In addition to the above, compensation may also include a revenue component for an investment team derived from a number of factors including, but not limited to client assets under management, investment performance, and firm metrics.
•Manulife Equity Awards. A limited number of senior investment professionals may receive options to purchase shares of Manulife Financial stock. Generally, such option would permit the investment professional to purchase a set amount of stock at the market price on the date of grant. The option can be exercised for a set period (normally a number of years or until termination of employment) and the investment professional would exercise the option if the market value of Manulife Financial stock increases. Some investment professionals may receive restricted stock grants, where the investment professional is entitled to receive the stock at no or nominal cost, provided that the stock is forgone if the investment professional’s employment is terminated prior to a vesting date.
•Deferred Incentives. Investment professionals may receive deferred incentives which are fully invested in strategies managed by the team/individuals as well as other Manulife Asset Management strategies.
The Subadvisor also permits investment professionals to participate on a voluntary basis in a deferred compensation plan, under which the investment professional may elect on an annual basis to defer receipt of a portion of their compensation until retirement. Participation in the plan is voluntary.
Share Ownership by Portfolio Managers. The following table indicates as of December 31, 2025, the value of shares beneficially owned by the portfolio managers in the Fund.” Delete the last column in the table labeled “Range of Beneficial Ownership in Similarly Managed Accounts.”
|
|
Range of Beneficial |
|
Portfolio Manager |
Ownership |
|
Susan A. Curry |
$10,001-$50,000 |
|
|
|
|
Ryan P. Lentell, CFA |
$500,001-$1,000,000 |
|
|
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a)Not applicable.
(b)REGISTRANT PURCHASES OF EQUITY SECURITIES
|
|
|
|
Total number of |
Maximum |
|
|
|
|
shares |
number of |
|
|
Total number of |
|
purchased as |
shares that may |
|
|
|
part of publicly |
yet be |
|
|
|
shares |
Average price per |
announced |
purchased |
|
Period |
purchased |
share |
plans* |
under the plans* |
|
|
|
|
|
|
|
Jan-25 |
- |
- |
- |
1,976,581 |
|
|
|
|
|
|
|
Feb-25 |
- |
- |
- |
1,976,581 |
|
|
|
|
|
|
|
Mar-25 |
- |
- |
- |
1,976,581 |
|
|
|
|
|
|
|
Apr-25 |
- |
- |
- |
1,976,581 |
|
|
|
|
|
|
|
May-25 |
- |
- |
- |
1,976,581 |
|
|
|
|
|
|
|
Jun-25 |
- |
- |
- |
1,976,581 |
|
|
|
|
|
|
|
Jul-25 |
- |
- |
- |
1,976,581 |
|
|
|
|
|
|
|
Aug-25 |
- |
- |
- |
1,976,581 |
|
|
|
|
|
|
|
Sep-25 |
- |
- |
- |
1,976,581 |
|
|
|
|
|
|
|
Oct-25 |
- |
- |
- |
1,976,581 |
|
|
|
|
|
|
|
Nov-25 |
- |
- |
- |
1,976,581 |
|
|
|
|
|
|
|
Dec-25 |
- |
- |
- |
1,976,581 |
|
|
|
|
|
|
|
Total |
- |
- |
- |
|
|
|
|
|
|
|
*In May 2009, the Board of Trustees approved a share repurchase plan, which was subsequently reviewed by the Board of Trustees each year in December. Under the current share repurchase plan, the Fund may purchase in the open market up to 10% of its outstanding common shares as of December 31, 2025 (shares that may yet be purchased under the current plan are 1,981,678 shares). The current plan is in effect between January 1, 2026 and December 31, 2026.
ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
No material changes.
ITEM 16. 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-CSR, the registrant's principal executive officer and principal financial 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 period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
The Fund did not participate directly in securities lending activities. See Note 8 to financial statements in Item 1.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
Not applicable.
ITEM 19. EXHIBITS.
(a)(1) Code of Ethics for Covered Officers is attached.
(a)(2) Not applicable.
(c)(1) Proxy Voting Policies and Procedures are attached.
(d) Exhibit 99. CONSENT - Consent of Independent Registered Public Accounting Firm.
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 Financial Opportunities Fund
|
By: |
/s/ Kristie M. Feinberg |
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------------------------------ |
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Kristie M. Feinberg |
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President, |
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Principal Executive Officer |
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Date: |
February 11, 2026 |
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/ Kristie M. Feinberg |
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|
------------------------------ |
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Kristie M. Feinberg |
|
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President, |
|
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Principal Executive Officer |
|
Date: |
February 11, 2026 |
|
By: |
/s/ Fernando A. Silva |
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|
--------------------------- |
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Fernando A. Silva |
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Chief Financial Officer, |
|
|
Principal Financial Officer |
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Date: |
February 11, 2026 |