John Hancock

Preferred Income Fund III

Fund’s investments

As of 4-30-18 (unaudited)

				Shares	Value
Preferred securities 131.7% (86.0% of Total investments)					$759,482,918
(Cost $789,649,860)
Consumer staples 2.1%					12,217,500
Food and staples retailing 2.1%
Ocean Spray Cranberries, Inc., 6.250% (A)				135,000	12,217,500
Energy 5.6%					32,014,757
Oil, gas and consumable fuels 5.6%
Enbridge, Inc., Series B (6.375% to 4-15-23, then 3 month LIBOR + 3.593%)				210,000	5,302,500
Kinder Morgan, Inc., 9.750% (B)				858,915	26,712,257
Financials 54.7%					315,502,315
Banks 32.9%
Bank of America Corp., 6.500% (B)				145,100	3,803,071
Bank of America Corp., 6.625%				41,120	1,078,578
Barclays Bank PLC, 8.125% (B)(C)				415,000	10,848,100
BB&T Corp. (Callable 6-1-18), 5.200% (B)				670,000	16,723,200
BB&T Corp., 5.625% (B)				302,325	7,567,195
Citigroup Capital XIII (3 month LIBOR + 6.370%), 8.729% (D)				17,000	455,430
Citigroup, Inc., 5.800%				85,000	2,143,700
Citigroup, Inc., 6.875%				25,000	655,750
Citigroup, Inc. (6.875% to 11-15-23, then 3 month LIBOR + 4.130%) (B)				177,250	4,877,920
Citigroup, Inc. (7.125% to 9-30-23, then 3 month LIBOR + 4.040%) (B)				616,412	17,179,402
First Republic Bank, 7.000% (B)				95,000	2,501,350
JPMorgan Chase & Co., 6.100% (B)				105,000	2,753,100
JPMorgan Chase & Co., 6.125% (B)				1,030,000	26,986,000
JPMorgan Chase & Co., 6.300%				125,000	3,278,750
JPMorgan Chase & Co., 6.700% (B)				30,000	793,200
MB Financial, Inc., 6.000%				145,000	3,622,100
Regions Financial Corp., 6.375% (B)				144,408	3,683,848
Santander Holdings USA, Inc., 7.300% (B)				463,000	11,852,800
The PNC Financial Services Group, Inc., 5.375%				40,000	1,002,800
The PNC Financial Services Group, Inc. (6.125% to 5-1-22, then 3 month LIBOR + 4.067%) (B)				210,000	5,697,300
U.S. Bancorp (6.500% to 1-15-22, then 3 month LIBOR + 4.468%) (B)(C)				888,000	24,508,800
Wells Fargo & Company, 6.000% (B)(C)				650,000	16,568,500
Wells Fargo & Company, 8.000% (B)(C)				374,000	9,720,260
Wells Fargo & Company (6.625% to 3-15-24, then 3 month LIBOR + 3.690%) (B)(C)				388,450	10,647,415
Western Alliance Bancorp, 6.250%				20,000	514,400
Capital markets 8.6%
Deutsche Bank Contingent Capital Trust II, 6.550%				13,800	353,832
Morgan Stanley, 6.625% (B)				170,000	4,414,900
Morgan Stanley (6.375% to 10-15-24, then 3 month LIBOR + 3.708%) (B)				170,000	4,545,800
Morgan Stanley (6.875% to 1-15-24, then 3 month LIBOR + 3.940%)				130,000	3,575,000
Morgan Stanley (7.125% to 10-15-23, then 3 month LIBOR + 4.320%)				473,725	13,330,622
State Street Corp., 5.250% (B)				65,000	1,631,500
State Street Corp., 6.000% (B)(C)				795,000	20,709,750
The Bank of New York Mellon Corp., 5.200% (B)				43,000	1,079,300
Consumer finance 2.9%
Capital One Financial Corp., 6.200% (B)(C)				257,181	6,740,714
Capital One Financial Corp., 6.700% (B)				52,650	1,383,642
Navient Corp., 6.000% (B)(C)				396,727	8,652,616

2

JOHN HANCOCK PREFERRED INCOME FUND III | QUARTERLY REPORT

SEE NOTES TO FUND'S INVESTMENTS

				Shares	Value
Financials (continued)
Insurance 10.2%
Aegon NV, 6.375% (B)				354,054	$9,095,647
Aegon NV, 6.500% (B)				330,000	8,523,900
Assurant, Inc., 6.500%				15,000	1,583,400
Prudential Financial, Inc., 5.750% (B)				150,000	3,763,500
Prudential PLC, 6.500% (B)				85,943	2,237,956
RenaissanceRe Holdings, Ltd., Series C, 6.080%				15,000	380,550
The Hartford Financial Services Group, Inc. (7.875% to 4-15-22, then 3 month LIBOR + 5.596%)				61,882	1,793,340
The Phoenix Companies, Inc., 7.450% (B)				574,500	10,633,995
W.R. Berkley Corp., 5.625% (B)(C)				868,205	21,097,382
Thrifts and mortgage finance 0.1%
Federal National Mortgage Association, Series S, 8.250% (E)				80,000	512,000
Health care 2.7%					15,707,248
Pharmaceuticals 2.7%
Teva Pharmaceutical Industries, Ltd., 7.000% (B)(C)				44,750	15,707,248
Industrials 2.3%					13,219,500
Machinery 2.3%
Stanley Black & Decker, Inc., 5.750% (B)(C)				525,000	13,219,500
Real estate 14.3%					82,110,052
Equity real estate investment trusts 14.3%
American Homes 4 Rent, Series D, 6.500%				30,000	760,200
American Homes 4 Rent, Series E, 6.350%				35,000	868,700
American Homes 4 Rent, Series F, 5.875%				160,450	3,634,193
American Homes 4 Rent, Series G, 5.875%				155,000	3,487,500
Crown Castle International Corp., Series A, 6.875% (B)(C)				24,500	25,098,839
Digital Realty Trust, Inc., 6.350%				921	23,762
Digital Realty Trust, Inc., 6.625%				10,900	285,580
Digital Realty Trust, Inc., 7.375%				40,134	1,043,885
Federal Realty Investment Trust, Series C, 5.000%				110,000	2,399,100
Kimco Realty Corp., 6.000% (B)				421,815	10,169,960
Public Storage, 5.200% (B)				255,000	5,984,850
Public Storage, 5.375%				21,275	516,132
Public Storage, 5.875% (B)				30,000	766,200
Senior Housing Properties Trust, 5.625% (B)				889,832	21,329,273
Ventas Realty LP, 5.450% (B)				229,859	5,741,878
Telecommunication services 10.6%					61,292,426
Diversified telecommunication services 3.1%
Qwest Corp., 6.125%				20,000	399,000
Qwest Corp., 6.500%				91,033	1,922,617
Qwest Corp., 6.750%				320,000	6,899,200
Qwest Corp., 6.875% (B)				98,793	2,160,603
Qwest Corp., 7.000% (B)				60,000	1,366,200
Qwest Corp., 7.500%				49,618	1,246,404
Verizon Communications, Inc., 5.900% (B)				148,000	3,788,800
Wireless telecommunication services 7.5%
Telephone & Data Systems, Inc., 6.875% (B)				473,000	11,744,590
Telephone & Data Systems, Inc., 7.000% (B)(C)				415,000	10,366,700
United States Cellular Corp., 6.950%				673,431	16,754,963
United States Cellular Corp., 7.250% (B)				184,994	4,643,349

SEE NOTES TO FUND'S INVESTMENTS

QUARTERLY REPORT | JOHN HANCOCK PREFERRED INCOME FUND III

3

				Shares	Value
Utilities 39.4%					$227,419,120
Electric utilities 22.7%
Alabama Power Company, 5.000% (B)(C)				364,875	9,121,875
Duke Energy Corp., 5.125% (B)				960,000	24,124,800
Entergy Louisiana LLC, 5.250% (B)				253,587	6,301,637
HECO Capital Trust III, 6.500%				228,100	5,971,658
Interstate Power & Light Company, 5.100% (B)(C)				207,514	5,218,977
NextEra Energy Capital Holdings, Inc., 5.125% (B)				200,000	4,932,000
NextEra Energy, Inc., 6.123%				375,000	21,675,000
PPL Capital Funding, Inc., 5.900% (B)				1,016,981	25,505,883
SCE Trust II, 5.100% (B)(C)				666,000	15,397,920
SCE Trust III (5.750% to 3-15-24, then 3 month LIBOR + 2.990%) (B)				120,000	3,174,000
The Southern Company, 6.250% (B)				380,000	9,842,000
Gas utilities 0.8%
South Jersey Industries, Inc., 7.250%				89,700	4,664,400
Multi-utilities 15.9%
CMS Energy Corp., 5.625%				235,000	5,795,100
Dominion Energy, Inc., 6.750% (B)				781,166	35,886,766
DTE Energy Company, 5.250% (B)(C)				647,000	15,806,210
DTE Energy Company, 5.250%				200,000	4,792,000
DTE Energy Company, 6.000%				100,550	2,612,289
DTE Energy Company, 6.500%				200,700	10,534,743
Integrys Holding, Inc. (6.000% to 8-1-23, then 3 month LIBOR + 3.220%) (B)				296,303	7,629,802
Sempra Energy, 6.000%				82,000	8,432,060
Common stocks 12.6% (8.2% of Total investments)					$72,428,347
(Cost $59,138,580)
Energy 11.5%					66,040,247
Oil, gas and consumable fuels 11.5%
BP PLC, ADR (B)				558,000	24,881,220
Enbridge, Inc.				50,000	1,513,500
ONEOK, Inc. (B)				360,000	21,679,200
Royal Dutch Shell PLC, ADR, Class A (B)				257,029	17,966,327
Telecommunication services 0.8%					4,552,100
Diversified telecommunication services 0.8%
CenturyLink, Inc.				245,000	4,552,100
Utilities 0.3%					1,836,000
Independent power and renewable electricity producers 0.3%
AES Corp.				150,000	1,836,000

    

	Rate (%)	Maturity date		Par value^	Value
Corporate bonds 7.9% (5.2% of Total investments)					$45,677,834
(Cost $45,786,872)
Consumer discretionary 1.7%					9,843,750
Automobiles 1.7%
General Motors Financial Company, Inc. (5.750% to 9-30-27, then 3 month LIBOR + 3.598%) (F)	5.750	09-30-27		10,000,000	9,843,750
Energy 1.4%					7,830,000
Oil, gas and consumable fuels 1.4%
Energy Transfer Partners LP (3 month LIBOR + 3.018%) (B)(C)(D)	4.791	11-01-66		9,000,000	7,830,000

4

JOHN HANCOCK PREFERRED INCOME FUND III | QUARTERLY REPORT

SEE NOTES TO FUND'S INVESTMENTS

	Rate (%)	Maturity date		Par value^	Value
Financials 3.7%					$21,653,906
Banks 2.0%
BNP Paribas SA (7.375% to 8-19-25, then 5 Year U.S. Swap Rate + 5.150%) (F)	7.375	08-19-25		1,000,000	1,090,000
HSBC Holdings PLC (6.500% to 3-23-28, then 5 Year U.S. ISDAFIX + 3.606%) (F)	6.500	03-23-28		5,000,000	5,081,250
Huntington Bancshares, Inc. (5.700% to 4-15-23, then 3 month LIBOR + 2.880%) (F)	5.700	04-15-23		2,000,000	1,998,750
The Royal Bank of Scotland Group PLC (8.000% to 8-10-25, then 5 Year U.S. Swap Rate + 5.720%) (F)	8.000	08-10-25		3,175,000	3,472,656
Consumer finance 0.8%
Discover Financial Services (5.500% to 10-30-27, then 3 month LIBOR + 3.076%) (F)	5.500	10-30-27		5,000,000	4,900,000
Insurance 0.9%
MetLife, Inc. (5.875% to 3-15-28, then 3 month LIBOR + 2.959%) (F)	5.875	03-15-28		5,000,000	5,111,250
Utilities 1.1%					6,350,178
Electric utilities 0.6%
Southern California Edison Company (6.250% to 2-1-22, then 3 month LIBOR + 4.199%) (B)(C)(F)	6.250	02-01-22		3,000,000	3,180,000
Multi-utilities 0.5%
Dominion Energy, Inc. (5.750% to 10-1-24, then 3 month LIBOR + 3.057%) (B)(C)	5.750	10-01-54		3,000,000	3,170,178

    

	Yield* (%)	Maturity date		Par value^	Value
Short-term investments 0.9% (0.6% of Total investments)					$5,185,000
(Cost $5,185,000)
U.S. Government Agency 0.9%					5,185,000
Federal Home Loan Bank Discount Note	1.580	05-01-18		5,185,000	5,185,000
Total investments (Cost $899,760,312) 153.1%					$882,774,099
Other assets and liabilities, net (53.1%)					(306,130,781)
Total net assets 100.0%					$576,643,318

    

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.
Security Abbreviations and Legend
ADR	American Depositary Receipt
ISDAFIX	International Swaps and Derivatives Association Fixed Interest Rate Swap Rate
LIBOR	London Interbank Offered Rate
(A)	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.
(B)	All of a portion of this security is pledged as collateral pursuant to the Credit Facility Agreement. Total collateral value at 4-30-18 was $625,865,780. A portion of the securities pledged as collateral were loaned pursuant to the Credit Facility Agreement. The value of securities on loan amounted to $229,672,609.
(C)	A portion of this security is on loan as of 4-30-18, and is a component of the fund's leverage under the Credit Facility Agreement.
(D)	Variable rate obligation. The coupon rate shown represents the rate at period end.
(E)	Non-income producing security.
(F)	Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date.
*	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.

The fund had the following country composition as a percentage of total investments on 4-30-18:

United States	88.0%
United Kingdom	5.3%
Netherlands	4.0%
Israel	1.8%
Other countries	0.9%
TOTAL	100.0%

SEE NOTES TO FUND'S INVESTMENTS

QUARTERLY REPORT | JOHN HANCOCK PREFERRED INCOME FUND III

5

DERIVATIVES

FUTURES

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 2018	$(81,710,146)	$(81,345,000)	$365,146
						$365,146

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

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	77,000,000	USD	Fixed 2.136%	USD 3 Month LIBOR BBA(a)	Semi-Annual	Quarterly	Oct 2022	—	$2,032,568	$2,032,568
								—	$2,032,568	$2,032,568

    

(a)	At 4-30-18, the 3 month LIBOR was 2.363%

    

Derivatives Currency Abbreviations
USD	U.S. Dollar

    

Derivatives Abbreviations
BBA	The British Banker's Association
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.

6

JOHN HANCOCK PREFERRED INCOME FUND III | QUARTERLY REPORT

SEE NOTES TO FUND'S INVESTMENTS

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. Futures contracts are typically 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, 2018, by major security category or type:

		Total value at 4-30-18	Level 1 quoted price	Level 2 significant observable inputs	Level 3 significant unobservable inputs
Investments in securities:
Assets
Preferred securities
	Consumer staples	$12,217,500	—	$12,217,500	—
	Energy	32,014,757	$32,014,757	—	—
	Financials	315,502,315	304,868,320	10,633,995	—
	Health care	15,707,248	15,707,248	—	—
	Industrials	13,219,500	13,219,500	—	—
	Real estate	82,110,052	57,011,213	25,098,839	—
	Telecommunication services	61,292,426	57,503,626	3,788,800	—
	Utilities	227,419,120	213,817,660	13,601,460	—
Common stocks		72,428,347	72,428,347	—	—
Corporate bonds		45,677,834	—	45,677,834	—
Short-term investments		5,185,000	—	5,185,000	—
Total investments in securities		$882,774,099	$766,570,671	$116,203,428	—
Derivatives:
Assets
Futures		$365,146	$365,146	—	—
Swap contracts		2,032,568	—	$2,032,568	—

Securities with a market value of approximately $27,519,000 at the beginning of the period 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.

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

       7

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, 2018, the fund used futures contracts to manage against anticipated interest rate changes against preferred securities.

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 April 30, 2018, the fund used interest rate swaps to manage against anticipated interest rate changes.

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

       8

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	04/18
This report is for the information of the shareholders of John Hancock Preferred Income Fund III.		6/18