UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-8568

John Hancock Financial Opportunities Fund
(Exact name of registrant as specified in charter)

601 Congress Street, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)

Salvatore Schiavone

Treasurer

601 Congress Street

Boston, Massachusetts 02210
(Name and address of agent for service)

Registrant's telephone number, including area code: 617-663-4497

Date of fiscal year end: December 31
 
Date of reporting period: March 31, 2018



ITEM 1. SCHEDULE OF INVESTMENTS







John Hancock

Financial Opportunities Fund

Quarterly portfolio holdings 3/31/18

jhnq_logo.jpg


Fund’s investments  
As of 3-31-18 (unaudited)
        Shares Value
Common stocks 105.9% (91.7% of Total investments)   $737,818,641
(Cost $376,537,141)          
Financials 104.4%       727,303,937
Banks 93.4%        
1st Source Corp.       121,706 6,160,758
Access National Corp.       81,825 2,334,467
Ameris Bancorp       226,471 11,980,316
Atlantic Capital Bancshares, Inc. (A)       241,667 4,374,173
Avidbank Holdings, Inc. (A)       200,000 4,950,000
Bank of America Corp. (B)       432,436 12,968,756
Bank of Commerce Holdings       40,374 470,357
Bank of Marin Bancorp       58,731 4,049,502
Bar Harbor Bankshares       129,698 3,595,229
BB&T Corp.       346,799 18,047,420
Berkshire Hills Bancorp, Inc.       338,903 12,861,369
Bryn Mawr Bank Corp.       80,000 3,516,000
Cambridge Bancorp       9,795 854,614
Camden National Corp.       55,164 2,454,798
Carolina Financial Corp.       70,982 2,788,173
Chemical Financial Corp. (B)(C)       217,502 11,893,009
Citigroup, Inc. (B)       49,519 3,342,533
Citizens Financial Group, Inc.       493,538 20,718,725
City Holding Company       39,363 2,698,727
Civista Bancshares, Inc. (B)(C)       81,213 1,856,529
Columbia Banking System, Inc. (B)(C)       119,363 5,007,278
Comerica, Inc.       167,706 16,088,037
Commerce Bancshares, Inc. (B)(C)       115,985 6,948,661
Communities First Financial Corp. (A)       115,523 2,420,207
Community Bank System, Inc. (B)(C)       39,951 2,139,776
County Bancorp, Inc.       62,184 1,816,395
Cullen/Frost Bankers, Inc. (B)(C)       178,964 18,982,711
DNB Financial Corp.       78,515 2,799,060
Eagle Bancorp Montana, Inc.       82,912 1,720,424
Equity Bancshares, Inc., Class A (A)       130,915 5,126,631
Evans Bancorp, Inc.       69,760 3,156,640
FCB Financial Holdings, Inc., Class A (A)       188,399 9,627,189
Fifth Third Bancorp       452,067 14,353,127
First Bancorp, Inc.       266,499 7,456,642
First Business Financial Services, Inc.       60,700 1,527,212
First Citizens BancShares, Inc., Class A       15,038 6,214,303
First Community Corp.       136,228 3,119,621
First Connecticut Bancorp, Inc.       202,450 5,182,720
First Financial Bancorp (B)(C)       146,045 4,286,421
First Hawaiian, Inc.       160,968 4,479,739
First Merchants Corp.       118,683 4,949,081
First Security Group, Inc. (A)       83,942 2,266,434
Flushing Financial Corp.       139,050 3,748,788
FNB Corp. (B)(C)       706,188 9,498,229
German American Bancorp, Inc. (B)(C)       60,090 2,004,002
Glacier Bancorp, Inc. (B)(C)       201,918 7,749,613
Great Southern Bancorp, Inc.       40,257 2,010,837
Great Western Bancorp, Inc. (B)(C)       159,455 6,421,253
Hamilton State Bancshares, Inc. (D)       500,000 4,579,575
Hancock Holding Company       245,752 12,705,378
2 JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND |QUARTERLY REPORT SEE NOTES TO FUND'S INVESTMENTS

 

        Shares Value
Financials (continued)        
Banks (continued)        
Heritage Commerce Corp.       371,642 $6,124,660
Heritage Financial Corp.       194,590 5,954,454
HomeTown Bankshares Corp. (A)       174,720 2,087,904
Horizon Bancorp       269,724 8,094,417
Howard Bancorp, Inc. (A)       136,118 2,695,136
Independent Bank Corp. (MA)       173,570 12,418,934
Independent Bank Corp. (MI)       125,407 2,871,820
JPMorgan Chase & Co. (B)       203,805 22,412,436
KeyCorp       738,141 14,430,657
M&T Bank Corp.       117,579 21,676,864
Mackinac Financial Corp.       40,000 646,400
MainSource Financial Group, Inc.       185,504 7,540,738
MB Financial, Inc. (B)(C)       183,150 7,413,912
MidWestOne Financial Group, Inc.       31,763 1,057,390
MutualFirst Financial, Inc.       100,539 3,644,539
National Commerce Corp. (A)       71,147 3,098,452
Nicolet Bankshares, Inc. (A)       29,792 1,640,645
Northrim BanCorp, Inc.       99,739 3,445,982
Old National Bancorp (B)(C)       419,575 7,090,818
Old Second Bancorp, Inc.       202,363 2,812,846
OP Bancorp (A)       26,189 326,053
Pacific Premier Bancorp, Inc. (A)(B)(C)       169,865 6,828,573
PacWest Bancorp       123,139 6,099,075
Park National Corp. (B)(C)       42,113 4,369,645
Peoples Bancorp, Inc.       122,945 4,358,400
Pinnacle Financial Partners, Inc. (B)(C)       114,502 7,351,028
Presidio Bank (A)       13,781 366,575
Prime Meridian Holding Company       83,010 1,643,598
QCR Holdings, Inc.       48,822 2,189,667
Regions Financial Corp.       701,530 13,034,427
Renasant Corp.       159,629 6,793,810
SBT Bancorp, Inc.       37,879 1,170,461
Shore Bancshares, Inc.       183,579 3,462,300
South Atlantic Bancshares, Inc. (A)       265,755 4,119,203
South State Corp.       82,030 6,997,159
Southern First Bancshares, Inc. (A)       131,586 5,855,577
State Bank Financial Corp.       53,182 1,595,992
Stock Yards Bancorp, Inc.       66,324 2,327,972
SunTrust Banks, Inc.       278,451 18,945,806
The Community Financial Corp. (B)(C)       32,029 1,192,119
The First Bancshares, Inc.       210,000 6,772,500
The First of Long Island Corp.       57,322 1,573,489
The PNC Financial Services Group, Inc. (B)(C)       146,047 22,088,148
Towne Bank       157,856 4,514,682
TriCo Bancshares       202,536 7,538,390
U.S. Bancorp       310,100 15,660,050
Union Bankshares Corp.       164,127 6,025,102
United Bankshares, Inc. (B)(C)       112,955 3,981,664
United Community Banks, Inc.       111,192 3,519,227
Washington Trust Bancorp, Inc.       123,905 6,659,894
Wells Fargo & Company (B)       229,099 12,007,079
Zions Bancorporation (B)(C)       265,769 14,013,999
SEE NOTES TO FUND'S INVESTMENTS QUARTERLY REPORT |JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND 3

 

        Shares Value
Financials (continued)        
Capital markets 4.1%        
Ares Management LP       38,057 $814,420
Intermediate Capital Group PLC       336,897 4,653,266
KKR & Company LP       355,776 7,222,253
Oaktree Specialty Lending Corp.       837,762 3,526,978
The Blackstone Group LP       243,005 7,764,010
TPG Specialty Lending, Inc. (B)(C)       243,379 4,346,749
Consumer finance 0.7%        
Capital One Financial Corp.       47,914 4,591,119
Insurance 0.4%        
Gjensidige Forsikring ASA       165,452 3,043,033
Thrifts and mortgage finance 5.8%        
BSB Bancorp, Inc. (A)       177,195 5,422,167
First Defiance Financial Corp.       110,515 6,334,720
Provident Financial Holdings, Inc.       97,339 1,760,863
Provident Financial Services, Inc.       155,989 3,991,759
Southern Missouri Bancorp, Inc.       112,188 4,106,081
United Community Financial Corp.       634,588 6,257,038
Westbury Bancorp, Inc. (A)       88,349 1,964,882
WSFS Financial Corp.       222,599 10,662,492
Information technology 0.5%       3,420,812
IT services 0.5%        
EVERTEC, Inc.       209,224 3,420,812
Real estate 1.0%       7,093,892
Equity real estate investment trusts 1.0%        
Park Hotels & Resorts, Inc. (B)(C)       50,154 1,355,161
Simon Property Group, Inc. (B)       37,180 5,738,731
Preferred securities 3.5% (3.0% of Total investments)   $24,524,585
(Cost $21,988,751)          
Financials 2.0%         14,323,768
Banks 0.9%          
OFG Bancorp, Series C, 8.750%   1,671 1,676,932
SB Financial Group, Inc., 6.500%   250,000 4,558,625
Capital markets 0.8%          
JMP Group, Inc., 8.000%   82,428 2,085,428
THL Credit, Inc., 6.750%   136,266 3,474,783
Mortgage real estate investment trusts 0.3%          
Arbor Realty Trust, Inc., 7.375%   100,000 2,528,000
Real estate 1.5%         10,200,817
Equity real estate investment trusts 1.5%          
American Homes 4 Rent (5.500% to 3-31-21, then 10.000% thereafter)   100,000 2,825,000
Bluerock Residential Growth REIT, Inc., 8.250%   84,140 2,101,817
Invesco Mortgage Capital, Inc. (7.750% to 12-27-24, then 3 month LIBOR + 5.180%)   150,000 3,777,000
Sotherly Hotels, Inc., 8.000%   60,000 1,497,000
Investment companies 0.6% (0.5% of Total investments)   $3,990,201
(Cost $4,323,234)          
Eagle Point Credit Company, Inc. (B)(C)       219,967 3,990,201
    
4 JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND |QUARTERLY REPORT SEE NOTES TO FUND'S INVESTMENTS

 

  Rate (%) Maturity date   Par value^ Value
Corporate bonds 5.4% (4.7% of Total investments)   $37,809,756
(Cost $36,368,620)          
Financials 5.4%       37,809,756
Banks 4.5%      
Avidbank Holdings, Inc. (6.875% to 11-15-20, then 3 month LIBOR + 5.367%) (E) 6.875 11-15-25   3,000,000 3,075,000
Cadence BanCorp (6.500% to 3-11-20, then 3 month LIBOR + 4.663%) (E) 6.500 03-11-25   5,000,000 5,150,000
First Business Financial Services, Inc. (D) 6.500 09-01-24   5,000,000 5,032,854
Northeast Bancorp (6.750% to 7-1-21, then 3 month LIBOR + 5.570%) (E) 6.750 07-01-26   5,000,000 5,127,892
Old Second Bancorp, Inc. (5.750% to 12-31-21, then 3 month LIBOR + 3.850%) 5.750 12-31-26   1,366,000 1,421,255
Popular, Inc. 7.000 07-01-19   6,000,000 6,120,000
VantageSouth Bancshares, Inc. (D) 7.625 08-12-23   5,000,000 5,555,744
Thrifts and mortgage finance 0.9%      
Flagstar Bancorp, Inc. 6.125 07-15-21   6,000,000 6,327,011
Certificate of deposit 0.0% (0.0% of Total investments) $78,980
(Cost $78,980)          
Country Bank for Savings 1.000 08-27-18   2,016 2,016
First Bank Richmond 0.990 12-05-19   21,010 21,010
First Bank System, Inc. 0.600 04-03-19   5,015 5,015
First Federal Savings Bank of Louisiana 1.000 01-07-19   3,045 3,045
Home Banks 1.739 11-04-21   18,927 18,927
Hudson Savings 0.800 04-23-19   2,188 2,188
Machias Savings Bank 0.500 05-29-18   1,975 1,975
Midstate Federal Savings and Loan 0.500 05-30-18   2,019 2,019
Milford Federal Savings and Loan Bank 0.250 06-10-19   1,913 1,913
Milford Federal Savings and Loan Bank 0.300 04-24-18   2,040 2,040
Mount McKinley Savings Bank 0.500 12-03-18   1,700 1,700
Mt. Washington Bank 0.650 10-31-19   1,924 1,924
MutualOne Bank 0.900 09-09-19   4,084 4,084
Newburyport Five Cent Savings Bank 0.700 10-19-18   2,093 2,093
Newton Savings Bank 0.450 05-30-18   1,955 1,955
OBA Federal Savings and Loan 0.400 12-17-18   1,346 1,346
Plymouth Savings Bank 0.200 04-22-19   1,946 1,946
Salem Five Cents Savings Bank 0.250 12-17-18   1,739 1,739
Sunshine Federal Savings and Loan Association 0.500 05-10-19   2,045 2,045
    
  Yield* (%) Maturity date   Par value^ Value
Short-term investments 0.1% (0.1% of Total investments) $736,981
(Cost $736,981)          
U.S. Government Agency 0.1%         553,981
Federal Agricultural Mortgage Corp. Discount Note 1.500 04-02-18   58,000 57,998
Federal Home Loan Bank Discount Note 1.200 04-02-18   396,000 395,987
Federal Home Loan Bank Discount Note 1.400 04-02-18   100,000 99,996
    
        Par value^ Value
Repurchase agreement 0.0%         183,000
Repurchase Agreement with State Street Corp. dated 3-29-18 at 0.740% to be repurchased at $183,015 on 4-2-18, collateralized by $190,000 U.S. Treasury Notes, 2.125% due 8-31-20 (valued at $189,225, including interest)       183,000 183,000
    
Total investments (Cost $440,033,707) 115.5%     $804,959,144
Other assets and liabilities, net (15.5%)     (108,113,329)
Total net assets 100.0%     $696,845,815
    
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.
SEE NOTES TO FUND'S INVESTMENTS QUARTERLY REPORT |JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND 5

 

Security Abbreviations and Legend
LIBOR London Interbank Offered Rate
(A) Non-income producing security.
(B) All or a portion of this security is pledged as collateral pursuant to the Liquidity Agreement. Total collateral value at 3-31-18 was $120,148,544. A portion of the securities pledged as collateral were loaned pursuant to the Liquidity Agreement. The value of securities on loan amounted to $97,003,769.
(C) A portion of this security is on loan as of 3-31-18, and is a component of the fund's leverage under the Liquidity Agreement.
(D) Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
(E) These securities are 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 registration.
* Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end.
6 JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND |QUARTERLY REPORT SEE NOTES TO FUND'S INVESTMENTS

 

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 1.427% 3 Month LIBOR(a) Semi-Annual Quarterly Aug 2019 $145,764 $145,764
Centrally cleared 5,000,000 USD Fixed 1.295% 3 Month LIBOR(a) Semi-Annual Quarterly Aug 2019 82,142 82,142
Centrally cleared 5,000,000 USD Fixed 1.594% 3 Month LIBOR(a) Semi-Annual Quarterly Dec 2020 114,925 114,925
Centrally cleared 5,000,000 USD Fixed 1.790% 3 Month LIBOR(a) Semi-Annual Quarterly Aug 2022 188,867 188,867
                $531,698 $531,698
    
(a) At 3-31-18, the 3 month LIBOR was 2.312%
    
Derivatives Currency Abbreviations
USD U.S. Dollar
    
Derivatives Abbreviations
LIBOR London Interbank Offered Rate
OTC is an abbreviation for over-the-counter. See Notes to Fund's investments regarding investment transactions and other derivatives information.
SEE NOTES TO FUND'S INVESTMENTS QUARTERLY REPORT |JOHN HANCOCK FINANCIAL OPPORTUNITIES FUND 7

Notes to Fund's investments (unaudited)

Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value may be determined as of the regularly scheduled close of the NYSE pursuant to the fund's Valuation Policies and Procedures.

In order to value the securities, the fund uses the following valuation techniques: Equity securities held by the fund are typically valued at the last sale price or official closing price on the exchange or principal market where the security 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. Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Swaps are valued using evaluated prices obtained from an independent pricing vendor. Foreign securities are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.

In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.

Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. 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 fund's Pricing Committee, following procedures established by the Board of Trustees. The fund 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.

The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.

The following is a summary of the values by input classification of the fund's investments as of March 31, 2018, by major security category or type:

           
  Total
value at
3-31-18
Level 1
quoted
price
Level 2
significant
observable
inputs
Level 3
significant
unobservable
inputs
Investments in securities:        
Assets        
Common stocks        
  Financials $727,303,937 $706,998,828 $15,725,534 $4,579,575
  Information technology 3,420,812 3,420,812
  Real estate 7,093,892 7,093,892
Preferred securities        
  Financials 14,323,768 8,088,211 6,235,557
  Real estate 10,200,817 10,200,817
Investment companies 3,990,201 3,990,201
Corporate bonds        
  Financials 37,809,756 27,221,158 10,588,598
Certificate of deposit 78,980 78,980
Short-term investments 736,981 736,981
Total investments in securities $804,959,144 $739,792,761 $49,998,210 $15,168,173
Derivatives:        
Assets        
Swap contracts $531,698 $531,698

       8


The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

                       
  Investments in securities     Common stocks     Corporate bonds     Total  
  Balance as of 12-31-17     $4,029,900     $10,740,175     $14,770,075  
  Realized gain (loss)              
  Change in unrealized appreciation (depreciation)     549,675     (151,577 )   $398,098  
  Purchases              
  Sales              
  Transfers into Level 3              
  Transfers out of Level 3          
  Balance as of 3-31-18     $4,579,575     $10,588,598     $15,168,173  
  Change in unrealized appreciation (depreciation) at period end*     $549,675     ($151,577 )   $398,098  

*Change in unrealized appreciation (depreciation) attributable to Level 3 securities held at the period end.

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  3-31-18
Valuation
technique
Significant
unobservable inputs
Input/range
Common stocks $4,579,575
Market
Approach

Expected future value
Discount
9.39x
2.5%
Corporate bonds $10,588,598
Market
Approach
Yield 522bps - 600bps
(weighted average 559bps)
Total $15,168,173

A change to unobservable inputs of a fund's Level 3 securities may result in changes to the fair value measurement, as follows:

       
Significant  unobservable  input   Impact to valuation
if input increases
Impact to valuation
if input decreases
Discount   Decrease Increase
Expected future value   Increase Decrease
Yield   Decrease Increase

Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund's custodian. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the Fund's investments as part of the caption related to the repurchase agreement.

Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of default, assets and liabilities resulting from repurchase agreements are not offset. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay back claims resulting from close-out of the transactions.

Derivative instruments. The fund may invest in derivatives in order to meet its investment 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.

Interest rate swaps. Interest rate swaps represent an agreement between the fund and a counterparty to exchange cash flows based on the difference between two interest rates applied to a notional amount. The payment flows are usually netted against each other, with the difference being paid by one party to the other. The fund settles accrued net interest receivable or payable under the swap contracts at specified, future intervals. Swap agreements are privately negotiated in the OTC market or may be executed on a registered commodities exchange (centrally cleared swaps). Swaps are marked-to-market daily and the change in value is recorded as unrealized appreciation/depreciation of swap contracts. A termination payment by the counterparty or the fund is recorded as realized gain or loss, as well as the net periodic payments received or paid by the fund. The value of the swap will typically impose collateral posting obligations on the party that is considered out-of-the-money on the swap.

During the period ended March 31, 2018, the fund used interest rate swaps to manage against anticipated interest rate changes.

       9


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 period ended March 31, 2018, is set forth below:

                                                                             
                                      Dividends and distributions                          
  Affiliate     Beginning
share
amount
    Shares
purchased
    Shares
sold
    Ending
share
amount
          Income
distributions
received
    Capital gain
distributions
received
    Realized
gain
(loss)
          Change in unrealized appreciation (depreciation)           Ending
value
 
  First Colebrook Bancorp, Inc.     48,750         (48,750 )             $4,388         $1,207,870           ($1,160,250 )          

For additional information on the fund's significant accounting policies, please refer to the fund's most recent semiannual or annual shareholder report.

       10


More information

     
How to contact us
Internet www.jhinvestments.com  
Mail Computershare
P.O. Box 30170
College Station, TX 77842-3170
 
Phone Customer service representatives
Portfolio commentary
24-hour automated information
TDD line
800-852-0218
800-344-7054
800-843-0090
800-231-5469

     
  P9Q1 03/18
This report is for the information of the shareholders of John Hancock Financial Opportunities Fund.   5/18



ITEM 2. CONTROLS AND PROCEDURES.

(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-Q, the registrant's principal executive officer and principal accounting officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

ITEM 3. EXHIBITS.

Separate certifications for the registrant's principal executive officer and principal accounting officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

John Hancock Financial Opportunities Fund

By: /s/ Andrew Arnott      
Andrew Arnott
President
 
Date:    May 10, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: /s/ Andrew Arnott
Andrew Arnott
President
 
Date:    May 10, 2018
 
By: /s/ Charles A. Rizzo
Charles A. Rizzo
Chief Financial Officer
 
Date: May 10, 2018