In our follow-up article focusing on the John Hancock Preferred Income Fund (HPI), we would like to update our readers on what has been going on in the power and telecommunication industries after the outbreak of the COVID-19 pandemic earlier this year. This CEF has continued to recuperate from its market bottom in late March 2020; however, the market price is still down around 7% year to date. Communications services holdings have been the biggest contributor to the overall Fund’s performance in FY 20, while energy holdings have been the biggest contractor. Lockdown restrictions have put into jeopardy the demand for commercial and industrial power, while the demand for data and residential power has been robust, as people work from home and spend more time at home. Surprisingly, a monthly distribution payment of $0.1237 per share has remained steady so far in 2020, even though the Fund has faced almost a 60% drop in market price during the peak of the coronavirus crisis in late March 2020. In our view, the key bullish catalyst is the defensive structure of this fund as we anticipate that utilities and communication services industries are well-positioned to capitalize on the economic recovery after the end of the COVID-19 pandemic. In addition, the low-interest-rate environment should persist over the next couple of quarters, which supports the demand for preferred securities over risk-free assets.

The COVID-19 impact on Utilities and Communication Services

Top 10 Holdings (as of 08/31/2020)

(Source: John Hancock)

The fund has maintained its selection of top 10 issuers pretty much the same after our first analysis in June here. However, the exposure to the top 10 holdings has been reduced from 57.7% to 49.1% as part of portfolio de-leveraging. In addition, the fund has maintained a very high share of non-investment grade securities,

The Daily Beast

Photos Show Why Miami Public Schools Could Be the Next Ron DeSantis Coronavirus Debacle

MIAMI—Last week, a few days before Donald Trump revealed he came down with COVID-19, Karla Hernandez-Mats went on a coronavirus safety fact-finding mission in South Florida schools ahead of their reopening on Monday.The president of United Teachers of Dade, the local teachers union, Hernandez-Mats said she and her colleagues conducted surprise inspection visits at 17 Miami-area schools that suggested administrators were still scrambling to put safety measures in place.At Miami Springs Senior High, one of the 17 schools inspected, administrators initially refused to allow her colleague, United Teachers of Dade First Vice-President Antonio White, to enter the building and called a police resource officer on him, the union officials told The Daily Beast.“When administrators act like that, their schools are usually not prepared,” White said in an interview. “That was the case at Miami Springs.”COVID-Skeptical Florida Guv Outdoes Himself, Lifts All Restrictions on Restaurants and BarsFor instance, the school appears to be supplying teachers with alcohol-free hand sanitizer, which may be ineffective in killing coronavirus, the union officials said, providing The Daily Beast with a photo of just that. (The Centers for Disease Control’s COVID-19 guidance recommends people use hand sanitizer that is at least 60 percent ethanol-based or 70 percent isopropanol-based.) Union officials also provided photos showing decals marking 6-foot distance requirements that were already peeling off the sidewalks near the school’s entrance, and desks arranged in such a way that does not allow for 6-foot social distancing.Reached by phone, Miami Springs principal Torossian said he was unaware of police being called on the union official and referred further questions to the school district’s media relations department. Spokeswoman Jacquelyn Calzadilla did not specifically address what had occurred at Miami Springs, but she