John Hancock

Preferred Income Fund III

Quarterly portfolio holdings 10/31/14

	As of 10-31-14 (unaudited)
																			Shares						Value
	Preferred securities (a) 142.1% (94.0% of Total investments)																								$857,525,709
	(Cost $824,276,519)
	Consumer staples 2.0%																								12,289,226
	Food and staples retailing 2.0%
	Ocean Spray Cranberries, Inc., Series A, 6.250% (S) (Z)																		135,000						12,289,226
	Financials 88.8%																								535,992,186
	Banks 31.0%
	Barclays Bank PLC, Series 3, 7.100% (Z)																		355,000						9,080,900
	Barclays Bank PLC, Series 5, 8.125% (Z)																		515,000						13,292,150
	BB&T Corp., 5.200%																		680,000						15,470,000
	BB&T Corp., 5.625% (Z)																		210,000						5,111,400
	HSBC Finance Corp., Depositary Shares, Series B, 6.360%																		615,000						15,590,250
	HSBC Holdings PLC, 8.000% (Z)																		63,500						1,701,800
	HSBC USA, Inc., 6.500% (Z)																		135,000						3,438,450
	RBS Capital Funding Trust V, 5.900%																		719,900						17,205,610
	RBS Capital Funding Trust VI, 6.250% (Z)																		330,000						7,982,700
	Royal Bank of Scotland Group PLC, Series L, 5.750% (Z)																		916,000						21,498,520
	Santander Holdings USA, Inc., Series C, 7.300% (Z)																		463,000						11,806,500
	The PNC Financial Services Group, Inc., 5.375%																		35,000						835,800
	The PNC Financial Services Group, Inc. (6.125% to 5-1-22, then 3 month LIBOR + 4.067%)																		210,000						5,720,400
	U.S. Bancorp (6.000% to 4-15-17, then 3 month LIBOR + 4.861%) (Z)																		160,000						4,329,600
	U.S. Bancorp (6.500% to 1-15-22, then 3 month LIBOR + 4.468%) (Z)																		888,000						26,027,280
	Wells Fargo & Company, 6.000%																		640,000						15,987,200
	Wells Fargo & Company, 8.000% (Z)																		374,000						10,984,380
	Wells Fargo & Company (6.625% to 3-15-24, then 3 month LIBOR + 3.690%) (Z)																		50,000						1,403,500
	Capital markets 9.6%
	Morgan Stanley, 6.625%																		60,000						1,528,800
	Morgan Stanley (6.375% to 10-15-24, then 3 month LIBOR + 3.708%)																		95,000						2,394,950
	Morgan Stanley Capital Trust III, 6.250%																		160,000						4,089,600
	Morgan Stanley Capital Trust IV, 6.250% (Z)																		845,000						21,547,500
	Morgan Stanley Capital Trust V, 5.750%																		100,000						2,528,000
	Morgan Stanley Capital Trust VII, 6.600%																		30,000						764,100
	State Street Corp., 5.250%																		62,000						1,513,420
	The Bank of New York Mellon Corp., 5.200%																		45,000						1,072,800
	The Goldman Sachs Group, Inc., 6.125% (Z)																		877,000						22,679,220
	Consumer finance 0.5%
	Navient Corp., 6.000% (Z)																		50,000						1,076,500
	SLM Corp., Series A, 6.970% (Z)																		44,899						2,207,233
	Diversified financial services 17.7%
	Citigroup Capital XIII (7.875% to 10-30-15, then 3 month LIBOR + 6.370%)																		17,000						452,540
	Deutsche Bank Contingent Capital Trust II, 6.550% (Z)																		396,500						10,273,315
	Deutsche Bank Contingent Capital Trust III, 7.600% (Z)																		311,000						8,524,510
	General Electric Capital Corp., 4.700%																		115,000						2,749,650
	ING Groep NV, 7.050% (Z)																		445,000						11,334,150
	ING Groep NV, 7.200%																		765,000						19,584,000
	JPMorgan Chase & Company, 5.500%																		60,000						1,385,400
	JPMorgan Chase & Company, 6.700%																		30,000						771,900
	JPMorgan Chase Capital XXIX, 6.700% (Z)																		687,500						17,682,500
	Merrill Lynch Preferred Capital Trust III, 7.000% (Z)																		475,000						12,174,250
	Merrill Lynch Preferred Capital Trust IV, 7.120% (Z)																		415,000						10,661,350

																			Shares						Value
	Financials  (continued)
	Diversified financial services  (continued)
	Merrill Lynch Preferred Capital Trust V, 7.280% (Z)																		430,000						$11,068,200
	Insurance 16.4%
	Aegon NV, 6.375% (Z)																		280,000						7,148,400
	Aegon NV, 6.500% (Z)																		330,000						8,408,400
	American Financial Group, Inc., 7.000% (Z)																		490,000						12,842,900
	MetLife, Inc., Series B, 6.500% (Z)																		1,000,000						25,950,000
	PLC Capital Trust V, 6.125% (Z)																		190,000						4,845,000
	Prudential Financial, Inc., 5.750% (Z)																		119,000						2,986,900
	Prudential PLC, 6.500% (Z)																		129,638						3,362,810
	RenaissanceRe Holdings, Ltd., Series C, 6.080%																		60,000						1,529,400
	The Phoenix Companies, Inc., 7.450%																		574,500						14,172,915
	W.R. Berkley Corp., 5.625% (Z)																		730,000						17,600,300
	Real estate investment trusts 13.5%
	Duke Realty Corp., Depositary Shares, Series K, 6.500% (Z)																		151,600						3,847,608
	Duke Realty Corp., Depositary Shares, Series L, 6.600% (Z)																		118,500						2,999,235
	Kimco Realty Corp., 6.000% (Z)																		950,000						24,196,500
	Public Storage, 5.200%																		255,000						5,859,900
	Public Storage, 5.750%																		395,000						9,855,250
	Public Storage, 6.350%																		220,000						5,702,400
	Public Storage, Depositary Shares, Series Q, 6.500%																		142,000						3,727,500
	Public Storage, Series P, 6.500% (Z)																		123,000						3,207,840
	Senior Housing Properties Trust, 5.625% (Z)																		710,000						16,706,300
	Ventas Realty LP, 5.450%																		210,000						5,172,300
	Thrifts and mortgage finance 0.1%
	Federal National Mortgage Association, Series S, 8.250% (I)																		80,000						340,000
	Industrials 1.8%																								10,487,050
	Machinery 1.8%
	Stanley Black & Decker, Inc., 5.750% (Z)																		415,000						10,487,050
	Telecommunication services 12.3%																								74,081,035
	Diversified telecommunication services 5.4%
	Qwest Corp., 6.125%																		20,000						470,800
	Qwest Corp., 6.875%																		62,500						1,598,125
	Qwest Corp., 7.000%																		60,000						1,539,000
	Qwest Corp., 7.375% (Z)																		777,500						20,510,450
	Qwest Corp., 7.500%																		174,500						4,659,150
	Verizon Communications, Inc., 5.900% (Z)																		148,000						3,833,200
	Wireless telecommunication services 6.9%
	Telephone & Data Systems, Inc., 6.875%																		473,000						11,914,870
	Telephone & Data Systems, Inc., 7.000% (Z)																		415,000						10,582,500
	United States Cellular Corp., 6.950% (Z)																		742,000						18,972,940
	Utilities 37.2%																								224,676,212
	Electric utilities 25.4%
	Alabama Power Company, 5.200% (Z)																		410,000						10,360,700
	Duke Energy Corp., 5.125% (Z)																		960,000						23,299,200
	Entergy Arkansas, Inc., 5.750%																		105,100						2,673,744
	Entergy Louisiana LLC, 5.250% (Z)																		240,000						6,000,000
	Entergy Louisiana LLC, 5.875% (Z)																		312,625						8,000,074
	Entergy Louisiana LLC, 6.000% (Z)																		242,038						6,150,186

																			Shares						Value
	Utilities  (continued)
	Electric utilities  (continued)
	Entergy Mississippi, Inc., 6.000%																		112,500						$2,880,000
	Entergy Mississippi, Inc., 6.200% (Z)																		156,706						3,996,003
	FPL Group Capital Trust I, 5.875% (Z)																		295,000						7,655,250
	Gulf Power Company, 5.750% (Z)																		140,000						3,607,800
	HECO Capital Trust III, 6.500%																		228,100						5,942,005
	Interstate Power & Light Company, 5.100% (Z)																		75,000						1,882,500
	NextEra Energy Capital Holdings, Inc., 5.125%																		200,000						4,534,000
	NextEra Energy Capital Holdings, Inc., 5.700% (Z)																		710,000						17,884,900
	PPL Capital Funding, Inc., 5.900%																		1,110,000						27,028,500
	SCE Trust I, 5.625%																		190,000						4,647,400
	SCE Trust II, 5.100% (Z)																		610,000						13,584,700
	SCE Trust III (5.750% to 3-15-24, then 3 month LIBOR + 2.990%)																		120,000						3,244,800
	Multi-utilities 11.8%
	BGE Capital Trust II, 6.200% (Z)																		762,000						19,469,100
	DTE Energy Company, 5.250% (Z)																		605,000						14,786,200
	DTE Energy Company, 6.500% (Z)																		385,000						10,337,250
	Integrys Energy Group, Inc. (6.000% to 8-1-23, then 3 month LIBOR + 3.220%) (Z)																		287,500						7,509,500
	SCANA Corp., 7.700%																		756,000						19,202,400
	Common stocks 0.8% (0.5% of Total investments)																								$4,742,180
	(Cost $5,435,057)
	Utilities 0.8%																								4,742,180
	Electric utilities 0.8%
	FirstEnergy Corp.																		127,000						4,742,180
							Rate (%)						Maturity date			Par value									Value
	Capital preferred securities (b) 1.5% (1.0% of Total investments)																								$9,087,300
	(Cost $9,517,500)
	Financials 1.5%																								9,087,300
	Banks 1.5%
	CA Preferred Funding Trust (Q)						7.000						01-30-15			9,000,000									9,087,300
	Corporate bonds 3.0% (2.0% of Total investments)																								$18,434,787
	(Cost $17,590,033)
	Energy 2.0%																								12,013,125
	Oil, gas and consumable fuels 2.0%
	Energy Transfer Partners LP (P)						3.250						11-01-66									12,900,000			12,013,125
	Utilities 1.0%																								6,421,662
	Electric utilities 0.5%
	Southern California Edison Company (6.250% to 2-1-22, then 3 month LIBOR + 4.199%) (Q) (Z)						6.250						02-01-22									3,000,000			3,302,502
	Multi-utilities 0.5%
	Dominion Resources, Inc. (5.750% to 10-1-24, then 3 month LIBOR + 3.057%)						5.750						10-01-54									3,000,000			3,119,160
																			Par value						Value
	Short-term investments 3.7% (2.5% of Total investments)																								$22,316,000
	(Cost $22,316,000)
	Repurchase agreement 3.7%																								22,316,000
	Repurchase Agreement with State Street Corp. dated 10-31-14 at 0.000% to be repurchased at $22,316,000 on 11-3-14, collateralized by $23,200,000 U.S. Treasury Notes, 0.625% due 4-30-18 (valued at $22,766,160, including interest)																		22,316,000						22,316,000

																			Par value						Value
	Repurchase agreement  (continued)
	Total investments (Cost $879,135,109)† 151.1%																								$912,105,976
	Other assets and liabilities, net (51.1%)																								($308,637,393	)
	Total net assets 100.0%																								$603,468,583

The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
LIBOR	London Interbank Offered Rate
(a)	Includes preferred stocks and hybrid securities with characteristics of both equity and debt that pay dividends on a periodic basis.
(b)	Includes hybrid securities with characteristics of both equity and debt that trade with, and pay, interest income.
(I)	Non-income producing security.
(P)	Variable rate obligation. The coupon rate shown represents the rate at period end.
(Q)	Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date.
(S)	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.
(Z)	All or a portion of this security is pledged as collateral pursuant to the Credit Facility Agreement. Total collateral value at 10-31-14 was $503,561,849.
†	At 10-31-14, the aggregate cost of investment securities for federal income tax purposes was $879,165,898. Net unrealized appreciation aggregated $32,940,078, of which $43,792,623 related to appreciated investment securities and $10,852,545 related to depreciated investment securities.

Notes to Fund's investments

Security valuation. Investments are stated at value as of the close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In order to value the securities, the fund uses the following valuation techniques: Equity securities held by the fund are valued at the last sale price or official closing price on the exchange where the security was acquired or most likely will be sold. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Swaps are valued using evaluated prices obtained from an independent pricing vendor. Futures contracts are valued at settlement prices, which are the official closing prices published by the exchange on which they trade. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing vendor. Securities that trade only in the over-the-counter (OTC) market are valued using bid prices. Certain short-term securities with maturities of 60 days or less at the time of purchase are valued at amortized cost. Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.

The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques 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 April 30, 2014, by major security category or type:

							Total market value at 10-31-14			Level 1 quoted price			Level 2 significant observable inputs			Level 3 significant unobservable inputs
	Preferred securities
				Consumer staples			$12,289,226			—			$12,289,226			—
				Financials			535,992,186			$535,992,186			—			—
				Industrials			10,487,050			10,487,050			—			—
				Telecommunication services			74,081,035			70,247,835			3,833,200			—
				Utilities			224,676,212			224,676,212			—			—
	Common stocks						4,742,180			4,742,180			—			—
	Capital preferred securities						9,087,300			—			9,087,300			—
	Corporate bonds						18,434,787			—			18,434,787			—
	Short-term investments						22,316,000			—			22,316,000			—
	Total Investments in Securities						$912,105,976			$846,145,463			$65,960,513			—
	Other Financial Instruments:
	Futures						($628,827	)		($628,827	)		—			—
	Interest rate swaps						($1,221,787	)		—			($1,221,787	)		—

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. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay back claims resulting from close-out of the transactions.

Derivative instruments. The fund may invest in derivatives in order to meet its investment objectives. Derivatives include a variety of different instruments that may be traded in the over-the-counter market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.

Futures. A futures contract is a contractual agreement to buy or sell a particular currency or financial instrument at a pre-determined price in the future. Risks related to the use of futures contracts include possible illiquidity of the futures markets and contract prices that can be highly volatile and imperfectly correlated to movements in the underlying financial instrument. Use of long futures contracts subjects the funds to the risk of loss up to the notional value of the futures contracts. Use of short futures contracts subjects the funds to unlimited risk of loss.

During the period ended October 31, 2014, the fund used futures contracts to manage against anticipated interest rate changes. The following table summarizes the contracts held at October 31, 2014.

	Open contracts			Number of contracts			Position			Expiration date			Notional basis			Notional value			Unrealized appreciation (depreciation)
	10-Year U.S. Treasury Note Futures			680			Short			Dec 2014			($85,295,548)			($85,924,375)			($628,827	)
																			($628,827	)

Notional basis refers to the contractual amount agreed upon at inception of open contracts; notional value represents the current value of the open contract.

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 October 31, 2014, the fund used interest rate swaps in anticipation of rising interest rates. The following table summarizes the interest rate swap contracts held as of October 31, 2014.

	Counterparty			Notional amount			Currency			USD notional amount			Payments made by fund			Payments received by fund			Maturity date			Unamortized upfront payment paid (received)			Unrealized appreciation (depreciation)			Market value
	Morgan Stanley Capital Services			72,000,000			USD			72,000,000			Fixed 1.462500%			3 Month LIBOR			Aug 2016			—			($1,285,031	)		($1,285,031	)
	Morgan Stanley Capital Services			72,000,000			USD			72,000,000			Fixed.8750%			3 Month LIBOR			Jul 2017			—			63,244			63,244
										144,000,000												—			($1,221,787	)		($1,221,787	)

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

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

	P12Q1	10/14
This report is for the information of the shareholders of John Hancock Preferred Income Fund III.		12/14