UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-PX ANNUAL REPORT OF PROXY VOTING RECORD OF REGISTERED MANAGEMENT INVESTMENT COMPANY INVESTMENT COMPANY ACT FILE NUMBER: 811-21287 NAME OF REGISTRANT: John Hancock Funds Preferred Income Fund III ADDRESS OF PRINCIPAL EXECUTIVE OFFICES: 601 Congress Street Boston, MA 02210 NAME AND ADDRESS OF AGENT FOR SERVICE: Gordon M. Shone 601 Congress Street Boston, MA 02210 REGISTRANT'S TELEPHONE NUMBER: 617-663-3000 DATE OF FISCAL YEAR END: 05/31 DATE OF REPORTING PERIOD: 07/01/2007 - 06/30/2008 127343 John Hancock Funds Preferred Income Fund III -------------------------------------------------------------------------------------------------------------------------- GREAT PLAINS ENERGY INCORPORATED Agenda Number: 932767621 -------------------------------------------------------------------------------------------------------------------------- Security: 391164100 Meeting Type: Special Ticker: GXP Meeting Date: 10-Oct-2007 ISIN: US3911641005 -------------------------------------------------------------------------------------------------------------------------- Prop.# Proposal Proposal Proposal Vote For/Against Type Management 01 APPROVAL OF THE ISSUANCE OF SHARES OF GREAT Mgmt For For PLAINS ENERGY INCORPORATED COMMON STOCK AS CONTEMPLATED BY THE AGREEMENT AND PLAN OF MERGER, DATED AS OF FEBRUARY 6, 2007, BY AND AMONG AQUILA, INC., GREAT PLAINS ENERGY INCORPORATED, GREGORY ACQUISITION CORP. AND BLACK HILLS CORPORATION, INCLUDING ALL EXHIBITS AND SCHEDULES THERETO. 02 APPROVAL OF AUTHORITY OF THE PROXY HOLDERS TO Mgmt For For VOTE IN FAVOR OF A MOTION TO ADJOURN THE MEETING FOR THE PURPOSE OF SOLICITING ADDITIONAL PROXIES. -------------------------------------------------------------------------------------------------------------------------- GREAT PLAINS ENERGY INCORPORATED Agenda Number: 932834888 -------------------------------------------------------------------------------------------------------------------------- Security: 391164100 Meeting Type: Annual Ticker: GXP Meeting Date: 06-May-2008 ISIN: US3911641005 -------------------------------------------------------------------------------------------------------------------------- Prop.# Proposal Proposal Proposal Vote For/Against Type Management 01 DIRECTOR D.L. BODDE Mgmt For For M.J. CHESSER Mgmt For For W.H. DOWNEY Mgmt For For M.A. ERNST Mgmt For For R.C. FERGUSON, JR. Mgmt For For L.A. JIMENEZ Mgmt For For J.A. MITCHELL Mgmt For For W.C. NELSON Mgmt For For L.H. TALBOTT Mgmt For For R.H. WEST Mgmt For For 02 RATIFICATION OF APPOINTMENT OF DELOITTE & TOUCHE Mgmt For For LLP AS INDEPENDENT AUDITORS FOR 2008. -------------------------------------------------------------------------------------------------------------------------- WACHOVIA PREFERRED FUNDING CORP. Agenda Number: 932861621 -------------------------------------------------------------------------------------------------------------------------- Security: 92977V206 Meeting Type: Annual Ticker: WNAPR Meeting Date: 12-May-2008 ISIN: US92977V2060 -------------------------------------------------------------------------------------------------------------------------- Prop.# Proposal Proposal Proposal Vote For/Against Type Management 01 DIRECTOR JAMES E. ALWARD Mgmt For For JOEL J. GRIFFIN Mgmt For For CHARLES F. JONES Mgmt For For G. KENNEDY THOMPSON Mgmt For For * Management position unknown SIGNATURES Pursuant to the requirements of 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. (Registrant) John Hancock Funds Preferred Income Fund III By (Signature) /s/ Keith F. Hartstein Name Keith F. Hartstein Title President Date 08/28/2008