John Hancock

Preferred Income Fund III

Quarterly portfolio holdings 10/31/15

	As of 10-31-15 (unaudited)
																						Shares						Value
	Preferred securities 145.8% (96.9% of Total investments)																											$884,121,526
	(Cost $841,091,732)
	Consumer staples 2.0%																											12,285,000
	Food and staples retailing 2.0%
	Ocean Spray Cranberries, Inc., Series A, 6.250% (S) (Z)																					135,000						12,285,000
	Energy 3.4%																											20,710,200
	Oil, gas and consumable fuels 3.4%
	Kinder Morgan, Inc., 9.750% (I)																					420,000						20,710,200
	Financials 90.1%																											546,506,261
	Banks 44.1%
	Bank of America Corp., 6.500%																					89,000						2,342,480
	Bank of America Corp., 6.625%																					30,000						796,200
	Barclays Bank PLC, Series 3, 7.100% (Z)																					355,000						9,208,700
	Barclays Bank PLC, Series 5, 8.125% (Z)																					515,000						13,534,200
	BB&T Corp., 5.200%																					680,000						16,904,800
	BB&T Corp., 5.625% (Z)																					210,000						5,409,600
	Citigroup Capital XIII (7.875% to 10-30-15, then 3 month LIBOR + 6.370%)																					17,000						431,800
	Citigroup, Inc., 5.800%																					85,000						2,132,650
	Citigroup, Inc., 6.875%																					25,000						669,750
	Citigroup, Inc., 7.125%																					20,000						551,400
	Citigroup, Inc. (6.875% to 11-15-23, then 3 month LIBOR + 4.130%)																					436,650						12,025,341
	First Republic Bank, 7.000%																					95,000						2,603,000
	HSBC Holdings PLC, 8.000% (Z)																					63,500						1,651,000
	HSBC USA, Inc., 6.500% (Z)																					135,000						3,458,700
	ING Groep NV, 7.050% (Z)																					445,000						11,712,400
	ING Groep NV, 7.200%																					765,000						20,073,600
	JPMorgan Chase & Co., 5.500% (Z)																					120,000						2,962,800
	JPMorgan Chase & Co., 6.100%																					105,000						2,657,550
	JPMorgan Chase & Co., 6.125%																					1,030,000						26,110,500
	JPMorgan Chase & Co., 6.300%																					125,000						3,256,250
	JPMorgan Chase & Co., 6.700%																					30,000						810,000
	RBS Capital Funding Trust V, 5.900% (Z)																					719,900						17,745,535
	RBS Capital Funding Trust VI, 6.250% (Z)																					320,000						8,073,600
	Regions Financial Corp., 6.375% (Z)																					83,505						2,171,130
	Royal Bank of Scotland Group PLC, Series L, 5.750% (Z)																					901,000						22,245,690
	Santander Holdings USA, Inc., Series C, 7.300% (Z)																					463,000						11,945,400
	The PNC Financial Services Group, Inc., 5.375%																					40,000						1,014,800
	The PNC Financial Services Group, Inc. (6.125% to 5-1-22, then 3 month LIBOR + 4.067%)																					210,000						5,848,500
	U.S. Bancorp (6.000% to 4-15-17, then 3 month LIBOR + 4.861%) (Z)																					160,000						4,288,000
	U.S. Bancorp (6.500% to 1-15-22, then 3 month LIBOR + 4.468%) (Z)																					888,000						25,734,240
	Wells Fargo & Company, 6.000%																					650,000						16,874,000
	Wells Fargo & Company, 8.000% (Z)																					374,000						10,490,700
	Wells Fargo & Company (6.625% to 3-15-24, then 3 month LIBOR + 3.690%) (Z)																					50,000						1,407,000
	Capital markets 18.8%
	Deutsche Bank Contingent Capital Trust II, 6.550% (Z)																					396,500						10,237,630
	Deutsche Bank Contingent Capital Trust III, 7.600% (Z)																					311,000						8,316,140
	Merrill Lynch Preferred Capital Trust III, 7.000% (Z)																					475,000						12,297,750
	Merrill Lynch Preferred Capital Trust IV, 7.120% (Z)																					415,000						10,777,550
	Merrill Lynch Preferred Capital Trust V, 7.280% (Z)																					430,000						11,210,100
	Morgan Stanley, 6.625%																					170,000						4,549,200

																						Shares						Value
	Financials  (continued)
	Capital markets  (continued)
	Morgan Stanley (6.375% to 10-15-24, then 3 month LIBOR + 3.708%)																					95,000						$2,460,500
	Morgan Stanley Capital Trust III, 6.250%																					160,000						4,144,000
	Morgan Stanley Capital Trust IV, 6.250% (Z)																					845,000						21,758,750
	Morgan Stanley Capital Trust V, 5.750%																					95,000						2,418,700
	State Street Corp., 5.250% (Z)																					65,000						1,662,700
	State Street Corp., 6.000% (Z)																					795,000						20,550,750
	The Bank of New York Mellon Corp., 5.200%																					43,000						1,104,670
	The Goldman Sachs Group, Inc., 5.950% (Z)																					60,000						1,534,800
	The Goldman Sachs Group, Inc., 6.125%																					37,000						924,260
	Consumer finance 4.5%
	Capital One Financial Corp., 6.200%																					289,250						7,477,113
	Capital One Financial Corp., 6.700%																					40,000						1,088,400
	HSBC Finance Corp., Depositary Shares, Series B, 6.360%																					635,000						16,103,600
	Navient Corp., 6.000% (Z)																					50,000						932,500
	SLM Corp., Series A, 6.970% (Z)																					44,899						1,957,596
	Insurance 9.5%
	Aegon NV, 6.375% (Z)																					355,492						9,100,595
	Aegon NV, 6.500% (Z)																					330,000						8,593,200
	Prudential Financial, Inc., 5.750% (Z)																					150,000						3,897,000
	Prudential PLC, 6.500% (Z)																					130,700						3,467,471
	RenaissanceRe Holdings, Ltd., Series C, 6.080%																					15,000						380,850
	The Phoenix Companies, Inc., 7.450%																					574,500						12,334,515
	W.R. Berkley Corp., 5.625% (Z)																					805,000						20,060,600
	Real estate investment trusts 13.1%
	Kimco Realty Corp., 6.000% (Z)																					955,000						24,639,000
	Public Storage, 5.200%																					255,000						6,301,050
	Public Storage, 5.750%																					439,500						11,299,545
	Public Storage, 5.875%																					30,000						781,800
	Public Storage, 6.350% (Z)																					220,000						5,702,400
	Public Storage, Depositary Shares, Series Q, 6.500%																					142,000						3,633,780
	Senior Housing Properties Trust, 5.625% (Z)																					875,000						21,603,750
	Ventas Realty LP, 5.450%																					215,000						5,684,600
	Thrifts and mortgage finance 0.1%
	Federal National Mortgage Association, Series S, 8.250% (I)																					80,000						378,080
	Industrials 2.3%																											13,697,250
	Machinery 2.3%
	Stanley Black & Decker, Inc., 5.750% (Z)																					525,000						13,697,250
	Telecommunication services 12.2%																											73,989,675
	Diversified telecommunication services 5.3%
	Qwest Corp., 6.125%																					20,000						497,600
	Qwest Corp., 6.875% (Z)																					65,000						1,677,000
	Qwest Corp., 7.000% (Z)																					60,000						1,567,200
	Qwest Corp., 7.375% (Z)																					777,500						20,067,275
	Qwest Corp., 7.500%																					174,500						4,571,900
	Verizon Communications, Inc., 5.900% (Z)																					148,000						3,966,400
	Wireless telecommunication services 6.9%
	Telephone & Data Systems, Inc., 6.875%																					473,000						12,089,880
	Telephone & Data Systems, Inc., 7.000%																					415,000						10,624,000

																						Shares						Value
	Telecommunication services  (continued)
	Wireless telecommunication services  (continued)
	United States Cellular Corp., 6.950% (Z)																					742,000						$18,928,420
	Utilities 35.8%																											216,933,140
	Electric utilities 26.9%
	Duke Energy Corp., 5.125% (Z)																					960,000						24,268,800
	Entergy Arkansas, Inc., 5.750% (Z)																					105,100						2,653,775
	Entergy Louisiana LLC, 5.250% (Z)																					240,000						6,122,400
	Entergy Louisiana LLC, 5.875% (Z)																					312,625						7,918,791
	Entergy Louisiana LLC, 6.000% (Z)																					242,038						6,157,689
	Entergy Mississippi, Inc., 6.000% (Z)																					112,500						2,880,000
	Entergy Mississippi, Inc., 6.200% (Z)																					156,706						4,022,643
	FPL Group Capital Trust I, 5.875% (Z)																					295,000						7,608,050
	Gulf Power Company, 5.750% (Z)																					140,000						3,610,600
	HECO Capital Trust III, 6.500%																					228,100						5,841,641
	Interstate Power & Light Company, 5.100% (Z)																					202,470						5,213,603
	NextEra Energy Capital Holdings, Inc., 5.125%																					200,000						4,890,000
	NextEra Energy Capital Holdings, Inc., 5.700% (Z)																					745,000						19,250,800
	PPL Capital Funding, Inc., 5.900%																					1,124,024						28,482,768
	SCE Trust I, 5.625%																					210,000						5,388,600
	SCE Trust II, 5.100% (Z)																					636,000						15,575,640
	SCE Trust III (5.750% to 3-15-24, then 3 month LIBOR + 2.990%) (Z)																					120,000						3,342,000
	The Southern Company, 6.250%																					380,000						10,032,000
	Multi-utilities 8.9%
	BGE Capital Trust II, 6.200% (Z)																					762,000						19,598,640
	DTE Energy Company, 5.250% (Z)																					647,000						15,890,320
	DTE Energy Company, 6.500% (Z)																					405,000						10,862,100
	Integrys Holding, Inc. (6.000% to 8-1-23, then 3 month LIBOR + 3.220%) (Z)																					287,500						7,322,280
	Common stocks 1.5% (1.0% of Total investments)																											$9,231,300
	(Cost $10,233,523)
	Energy 1.1%																											6,819,800
	Oil, gas and consumable fuels 1.1%
	Royal Dutch Shell PLC, ADR, Class A																					130,000						6,819,800
	Utilities 0.4%																											2,411,500
	Multi-utilities 0.4%
	CenterPoint Energy, Inc.																					130,000						2,411,500
										Rate (%				)		Maturity date			Par value^									Value
	Corporate bonds 2.6% (1.7% of Total investments)																											$15,408,000
	(Cost $17,629,189)
	Energy 1.5%																											8,965,500
	Oil, gas and consumable fuels 1.5%
	Energy Transfer Partners LP (P)									3.318						11-01-66									12,900,000			8,965,500
	Utilities 1.1%																											6,442,500
	Electric utilities 0.6%
	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			3,337,500
	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			3,105,000

																						Par value						Value
	Short-term investments 0.7% (0.4% of Total investments)																											$4,099,000
	(Cost $4,099,000)
	Repurchase agreement 0.7%																											4,099,000
	Repurchase Agreement with State Street Corp. dated 10-30-15 at 0.000% to be repurchased at $4,099,000 on 11-2-15, collateralized by $4,165,000 U.S. Treasury Notes, 0.875% due 8-15-17 (valued at $4,185,825, including interest)																					4,099,000						4,099,000
	Total investments (Cost $873,053,444)† 150.6%																											$912,859,826
	Other assets and liabilities, net (50.6%)																											($306,566,591	)
	Total net assets 100.0%																											$606,293,235

The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.

^All par values are denominated in U.S. dollars unless otherwise indicated.

Key to Security Abbreviations and Legend

ADR

American Depositary Receipts

LIBOR

London Interbank Offered Rate

(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 10-31-15 was $503,164,310.

†

At 10-31-15, the aggregate cost of investment securities for federal income tax purposes was $873,073,351. Net unrealized appreciation aggregated $39,786,475, of which $48,742,076 related to appreciated investment securities and $8,955,601 related to depreciated investment securities.

The fund had the following country composition as a percentage of net assets on 10-31-15:

	United States			88.3%
	Netherlands			6.2%
	United Kingdom			5.5%
	Total			100.0%

Notes to Fund's investments (unaudited)

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. 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 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 October 31, 2015, by major security category or type:

							Total value at 10-31-15			Level 1 quoted price			Level 2 significant observable inputs			Level 3 significant unobservable inputs
	Preferred securities
				Consumer staples			$12,285,000			—			$12,285,000			—
				Energy			20,710,200			$20,710,200			—			—
				Financials			546,506,261			546,506,261			—			—
				Industrials			13,697,250			13,697,250			—			—
				Telecommunication services			73,989,675			70,023,275			3,966,400			—
				Utilities			216,933,140			209,610,860			7,322,280			—
	Common stocks						9,231,300			9,231,300			—			—
	Corporate bonds						15,408,000			—			15,408,000			—
	Short-term investments						4,099,000			—			4,099,000			—
	Total investments in securities						$912,859,826			$869,779,146			$43,080,680			—
	Other financial instruments:
	Futures						($118,351	)		($118,351	)		—			—
	Interest rate swaps						($1,047,141	)		—			($1,047,141	)		—

Securities with market value of approximately $7,943,625 at the beginning of the year were transferred from Level 1 to Level 2 during the period since quoted prices in active markets for identical securities were no longer available and securities were valued using other significant observable inputs.

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 objectives. Derivatives include a variety of different instruments that may be traded in the 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.

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, 2015, the fund used futures contracts to manage against anticipated interest rate changes. The following table summarizes the contracts held at October 31, 2015.

	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 2015			($86,709,149	)		($86,827,500	)		($118,351	)
																			($118,351	)

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, 2015, the fund used interest rate swaps to manage against anticipated rate changes. The following table summarizes the interest rate swap contracts held as of October 31, 2015.

Counterparty

Notional Amount

Payments Made by Fund

Payments Received by Fund

Termination Date

Market Value

Morgan Stanley Capital Services

$72,000,000

Fixed 1.4625%

3 Month LIBOR (a)

Aug 2016

($728,962

)

Morgan Stanley Capital Services

72,000,000

Fixed 0.8750%

3 Month LIBOR (a)

Jul 2017

(318,179

)

$144,000,000

($1,047,141

)

(a) At 10-31-15, the 3-month LIBOR rate was 0.3341%

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	10/15
This report is for the information of the shareholders of John Hancock Preferred Income Fund III.		12/15