John Hancock

Preferred Income Fund III

Quarterly portfolio holdings 4/30/16

	As of 4-30-16 (unaudited)
													Shares						Value
	Preferred securities 143.0% (95.2% of Total investments)																		$874,975,738
	(Cost $825,136,180)
	Consumer staples 1.9%																		11,690,163
	Food and staples retailing 1.9%
	Ocean Spray Cranberries, Inc., Series A, 6.250% (S) (Z)												135,000						11,690,163
	Energy 4.8%																		29,013,120
	Oil, gas and consumable fuels 4.8%
	Kinder Morgan, Inc., 9.750%												657,000						29,013,120
	Financials 86.0%																		526,315,408
	Banks 46.3%
	Bank of America Corp., 6.500%												109,000						2,877,600
	Bank of America Corp., 6.625%												41,120						1,098,726
	Barclays Bank PLC, Series 3, 7.100%												355,000						9,201,600
	Barclays Bank PLC, Series 5, 8.125%												515,000						13,585,700
	BB&T Corp., 5.200%												670,000						16,917,500
	BB&T Corp., 5.625% (Z)												210,000						5,401,200
	Citigroup Capital XIII, 7.008% (P)												17,000						444,550
	Citigroup, Inc., 5.800%												85,000						2,208,300
	Citigroup, Inc., 6.875%												25,000						673,000
	Citigroup, Inc. (6.875% to 11-15-23, then 3 month LIBOR + 4.130%) (Z)												446,650						12,323,074
	Citigroup, Inc. (7.125% to 9-30-23, then 3 month LIBOR + 4.040%)												465,848						13,025,110
	First Republic Bank, 7.000%												95,000						2,620,100
	HSBC Holdings PLC, 8.000% (Z)												63,500						1,682,750
	HSBC USA, Inc., 6.500% (Z)												135,000						3,514,050
	ING Groep NV, 7.050% (Z)												445,000						11,712,400
	ING Groep NV, 7.200%												765,000						20,058,300
	JPMorgan Chase & Co., 5.500% (Z)												120,000						3,034,800
	JPMorgan Chase & Co., 6.100%												105,000						2,743,650
	JPMorgan Chase & Co., 6.125%												1,030,000						26,893,300
	JPMorgan Chase & Co., 6.300%												125,000						3,293,750
	JPMorgan Chase & Co., 6.700%												30,000						828,900
	RBS Capital Funding Trust V, 5.900% (Z)												719,900						17,565,560
	RBS Capital Funding Trust VI, 6.250% (Z)												320,000						7,865,600
	Regions Financial Corp., 6.375% (Z)												131,080						3,434,296
	Royal Bank of Scotland Group PLC, Series L, 5.750%												901,000						21,804,200
	Santander Holdings USA, Inc., Series C, 7.300% (Z)												463,000						11,922,250
	The PNC Financial Services Group, Inc., 5.375%												40,000						1,031,600
	The PNC Financial Services Group, Inc. (6.125% to 5-1-22, then 3 month LIBOR + 4.067%)												210,000						6,071,100
	U.S. Bancorp (6.000% to 4-15-17, then 3 month LIBOR + 4.861%) (Z)												160,000						4,225,600
	U.S. Bancorp (6.500% to 1-15-22, then 3 month LIBOR + 4.468%) (Z)												888,000						26,249,280
	Wells Fargo & Company, 6.000% (Z)												650,000						17,309,500
	Wells Fargo & Company, 8.000% (Z)												374,000						10,535,580
	Wells Fargo & Company (6.625% to 3-15-24, then 3 month LIBOR + 3.690%) (Z)												50,000						1,456,000
	Capital markets 12.9%
	Deutsche Bank Contingent Capital Trust II, 6.550%												396,500						9,872,850
	Deutsche Bank Contingent Capital Trust III, 7.600% (Z)												311,000						8,061,120
	Morgan Stanley, 6.625%												170,000						4,596,800
	Morgan Stanley (6.375% to 10-15-24, then 3 month LIBOR + 3.708%)												95,000						2,519,400
	Morgan Stanley Capital Trust III, 6.250%												160,000						4,120,000
	Morgan Stanley Capital Trust IV, 6.250% (Z)												845,000						21,708,050

													Shares						Value
	Financials  (continued)
	Capital markets  (continued)
	Morgan Stanley Capital Trust V, 5.750%												95,000						$2,428,200
	State Street Corp., 5.250% (Z)												65,000						1,704,300
	State Street Corp., 6.000% (Z)												795,000						21,480,900
	The Bank of New York Mellon Corp., 5.200%												43,000						1,102,950
	The Goldman Sachs Group, Inc., 5.950% (Z)												60,000						1,539,600
	Consumer finance 4.6%
	Capital One Financial Corp., 6.200%												289,250						7,639,093
	Capital One Financial Corp., 6.700%												40,000						1,097,600
	HSBC Finance Corp., Depositary Shares, Series B, 6.360% (Z)												635,000						16,471,900
	Navient Corp., 6.000% (Z)												50,000						963,000
	SLM Corp., Series A, 6.970% (Z)												44,899						2,121,478
	Insurance 9.3%
	Aegon NV, 6.375% (Z)												355,492						9,143,254
	Aegon NV, 6.500% (Z)												330,000						8,629,500
	Prudential Financial, Inc., 5.750% (Z)												150,000						3,958,500
	Prudential PLC, 6.500% (Z)												130,700						3,420,419
	RenaissanceRe Holdings, Ltd., Series C, 6.080%												15,000						383,700
	The Phoenix Companies, Inc., 7.450%												574,500						10,628,250
	W.R. Berkley Corp., 5.625% (Z)												805,000						20,479,200
	Real estate investment trusts 12.8%
	Digital Realty Trust, Inc., 7.375%												40,134						1,115,725
	Kimco Realty Corp., 6.000% (Z)												955,000						24,944,600
	Public Storage, 5.200%												255,000						6,630,000
	Public Storage, 5.750%												439,500						11,563,245
	Public Storage, 5.875%												30,000						811,500
	Public Storage, 6.350% (Z)												220,000						5,645,200
	Senior Housing Properties Trust, 5.625% (Z)												875,000						22,093,748
	Ventas Realty LP, 5.450%												215,000						5,521,200
	Thrifts and mortgage finance 0.1%
	Federal National Mortgage Association, Series S, 8.250% (I)												80,000						311,200
	Industrials 2.3%																		13,812,750
	Machinery 2.3%
	Stanley Black & Decker, Inc., 5.750% (Z)												525,000						13,812,750
	Telecommunication services 12.0%																		73,612,175
	Diversified telecommunication services 5.2%
	Qwest Corp., 6.125%												20,000						489,800
	Qwest Corp., 6.875% (Z)												65,000						1,660,750
	Qwest Corp., 7.000% (Z)												60,000						1,530,000
	Qwest Corp., 7.375% (Z)												777,500						19,872,900
	Qwest Corp., 7.500%												174,500						4,486,395
	Verizon Communications, Inc., 5.900% (Z)												148,000						4,060,750
	Wireless telecommunication services 6.8%
	Telephone & Data Systems, Inc., 6.875%												473,000						12,070,960
	Telephone & Data Systems, Inc., 7.000%												415,000						10,549,300
	United States Cellular Corp., 6.950% (Z)												742,000						18,891,320
	Utilities 36.0%																		220,532,122
	Electric utilities 27.1%
	Duke Energy Corp., 5.125% (Z)												960,000						25,248,000

													Shares						Value
	Utilities  (continued)
	Electric utilities  (continued)
	Entergy Arkansas, Inc., 5.750% (Z)												105,100						$2,657,979
	Entergy Louisiana LLC, 5.250% (Z)												240,000						6,067,200
	Entergy Louisiana LLC, 5.875% (Z)												312,625						7,925,044
	Entergy Louisiana LLC, 6.000%												190,403						4,860,989
	Entergy Mississippi, Inc., 6.000% (Z)												112,500						2,864,250
	Entergy Mississippi, Inc., 6.200% (Z)												156,706						4,063,387
	FPL Group Capital Trust I, 5.875% (Z)												295,000						7,699,500
	Gulf Power Company, 5.750%												140,000						3,539,200
	HECO Capital Trust III, 6.500%												228,100						6,033,245
	Interstate Power & Light Company, 5.100% (Z)												202,470						5,482,888
	NextEra Energy Capital Holdings, Inc., 5.125%												200,000						5,090,000
	NextEra Energy Capital Holdings, Inc., 5.700% (Z)												745,000						19,302,950
	PPL Capital Funding, Inc., 5.900%												1,124,024						29,977,720
	SCE Trust I, 5.625%												210,000						5,373,900
	SCE Trust II, 5.100% (Z)												636,000						16,059,000
	SCE Trust III (5.750% to 3-15-24, then 3 month LIBOR + 2.990%) (Z)												120,000						3,264,000
	The Southern Company, 6.250% (Z)												380,000						10,286,600
	Multi-utilities 8.9%
	BGE Capital Trust II, 6.200% (Z)												762,000						19,812,000
	DTE Energy Company, 5.250% (Z)												647,000						16,763,770
	DTE Energy Company, 6.500% (Z)												405,000						10,570,500
	Integrys Holding, Inc. (6.000% to 8-1-23, then 3 month LIBOR + 3.220%) (Z)												287,500						7,590,000
	Common stocks 3.7% (2.5% of Total investments)																		$22,722,600
	(Cost $20,653,332)
	Energy 3.2%																		19,719,600
	Oil, gas and consumable fuels 3.2%
	Royal Dutch Shell PLC, ADR, Class A												160,000						8,462,400
	Spectra Energy Corp.												360,000						11,257,200
	Utilities 0.5%																		3,003,000
	Multi-utilities 0.5%
	CenterPoint Energy, Inc.												140,000						3,003,000
							Rate (%	)		Maturity date			Par value^						Value
	Corporate bonds 2.2% (1.5% of Total investments)																		$13,789,500
	(Cost $17,633,488)
	Energy 1.2%																		7,611,000
	Oil, gas and consumable fuels 1.2%
	Energy Transfer Partners LP (P)						3.633			11-01-66						12,900,000			7,611,000
	Utilities 1.0%																		6,178,500
	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			3,291,000
	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			2,887,500

							Yield	* (%)		Maturity date			Par value^						Value
	Short-term investments 1.2% (0.8% of Total investments)																		$7,308,960
	(Cost $7,308,960)
	U.S. Government Agency 1.2%																		7,169,960
	Federal Home Loan Bank Discount Note						0.200			05-02-16			7,170,000						7,169,960
	Repurchase agreement 0.0%																		139,000
	Repurchase Agreement with State Street Corp. dated 4-29-16 at 0.030% to be repurchased at $139,000 on 5-2-16, collateralized by $145,000 U.S. Treasury Notes, 1.125% due 2-28-21 (valued at $143,731, including interest)												139,000						139,000
	Total investments (Cost $870,731,960)† 150.1%																		$918,796,798
	Other assets and liabilities, net (50.1%)																		($306,834,047	)
	Total net assets 100.0%																		$611,962,751

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 4-30-16 was $504,735,522.

*

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.

†

At 4-30-16, the aggregate cost of investment securities for federal income tax purposes was $870,751,867. Net unrealized appreciation aggregated to $48,044,931, of which $60,841,163 related to appreciated investment securities and $12,796,232 related to depreciated investment securities.

The fund had the following country composition as a percentage of net assets on 4-30-16:

	United States			88.3%
	Netherlands			6.3%
	United Kingdom			5.4%
	TOTAL			100.0%

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. The time at which shares and transactions are priced and until which orders are accepted may vary to the extent permitted by the Securities and Exchange Commission and applicable regulations. 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 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.

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.

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 April 30, 2016, by major security category or type:

							Total value at 4-30-16			Level 1 quoted price			Level 2 significant observable inputs			Level 3 significant unobservable inputs
	Preferred securities
				Consumer staples			$11,690,163			—			$11,690,163			—
				Energy			29,013,120			$29,013,120			—			—
				Financials			526,315,408			526,315,408			—			—
				Industrials			13,812,750			13,812,750			—			—
				Telecommunication services			73,612,175			69,551,425			4,060,750			—
				Utilities			220,532,122			212,942,122			7,590,000			—
	Common stocks						22,722,600			22,722,600			—			—
	Corporate bonds						13,789,500			—			13,789,500			—
	Short-term investments						7,308,960			—			7,308,960			—
	Total investments in securities						$918,796,798			$874,357,425			$44,439,373			—
	Other financial instruments:
	Futures						$465,750			$465,750			—			—
	Interest rate swaps						(524,750	)		—			($524,750	)		—

Securities with a 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 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

       6

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 April 30, 2016, the fund used futures contracts to manage against anticipated interest rate changes. The following table summarizes the contracts held at April 30, 2016.

	Open contracts			Number of contracts			Position			Expiration date			Notional basis			Notional value			Unrealized appreciation (depreciation)
	10-Year U.S. Treasury Note Futures			680			Short			Jun 2016			($88,908,250	)		($88,442,500	)		$465,750
																			$465,750

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). Upfront payments made/received by the fund are amortized/accreted for financial reporting purposes, with the unamortized/unaccreted portion included in the Statement of assets and liabilities. (include previous sentence only if applies) 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 April 30, 2016, the fund used interest rate swaps to manage against anticipated rate changes. The following table summarizes the interest rate swap contracts held as of April 30, 2016.

Counterparty

USD notional amount

Payments made by fund

Payments received by fund

Maturity date

Market value

Morgan Stanley Capital Services

$72,000,000

Fixed 1.4625%

3 Month LIBOR (a)

Aug 2016

($300,334

)

Morgan Stanley Capital Services

72,000,000

Fixed 0.8750%

3 Month LIBOR (a)

Jul 2017

(224,416

)

$144,000,000

($524,750

)

^(a) At 4-30-16, the 3-month LIBOR rate was 0.63660%

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

       7

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

	P12Q3	04/16
This report is for the information of the shareholders of John Hancock Preferred Income Fund III.		6/16