UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21131
John Hancock Preferred Income Fund
(Exact name of registrant as specified in charter)
101 Huntington Avenue, Boston, Massachusetts 02199
(Address of principal executive offices) (Zip code)
Alfred E. Ouellette, Attorney and Assistant Secretary
101 Huntington Avenue
Boston, Massachusetts 02199
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-375-1702
Date of fiscal year end: July 31
Date of reporting period: April 30, 2005
ITEM 1. SCHEDULE OF INVESTMENTS
JOHN HANCOCK
Preferred Income Fund
4.30.2005
Quarterly Portfolio Holdings
[A 2" x 1" John Hancock (Signature)/John Hancock Funds logo in lower,
center middle of page. A tag line below reads "JOHN HANCOCK FUNDS."]
John Hancock
Preferred Income Fund
Securities owned by the Fund on
April 30, 2005 (unaudited)
Interest Maturity Credit Par value
Issuer, description rate (%) date rating (A) ($000) Value
---------------------------------------------------------------------------------------------------------------------------------
Bonds 1.86% $17,041,113
(Cost $16,596,798)
Consumer Finance 0.22% 2,010,728
Capital One Bank,
Sr Note 8.250 06-15-2005 BBB 2,000 2,010,728
Electric Utilities 1.64% 15,030,385
Black Hills Corp.,
Note 6.500 05-15-2013 BBB- 5,950 6,252,998
Entergy Gulf States, Inc.,
1st Mtg Bond 6.200 07-01-2033 BBB+ 5,000 5,111,055
Midland Funding Corp. II,
Lease Oblig Bond, Ser A 11.750 07-23-2005 BB- 3,613 3,666,332
Credit Par value
Issuer, description, maturity date rating (A) ($000) Value
---------------------------------------------------------------------------------------------------------------------------------
Capital preferred securities 7.70% $70,753,956
(Cost $62,701,863)
Diversified Banks 0.85% 7,759,500
Lloyds TSB Bank Plc, 6.90% 11-29-49 (United Kingdom) A+ 7,500 7,759,500
Electric Utilities 3.02% 27,740,712
DPL Capital Trust II, 8.125%, 09-01-31 B+ 24,000 27,740,712
Gas Utilities 2.35% 21,629,639
KN Capital Trust I, 8.56%, Ser B, 04-15-27 BB+ 11,500 12,631,175
KN Capital Trust III, 7.63%, 04-15-28 BB+ 8,000 8,998,464
Integrated Telecommunication Services 0.70% 6,440,396
TCI Communications Financing Trust III, 9.65%,
03-31-27 BB+ 5,700 6,440,396
Regional Banks 0.78% 7,183,709
Summit Capital Trust I, 8.40%, Ser B, 03-15-27 A 6,500 7,183,709
Issuer Shares Value
---------------------------------------------------------------------------------------------------------------------------------
Common stocks 4.28% $39,326,031
(Cost $38,253,050)
Electric Utilities 2.50% 22,962,255
Alliant Energy Corp. 236,100 6,218,874
Cinergy Corp. 323,378 12,805,769
Scottish Power Plc, American Depositary Receipt
(United Kingdom) 121,344 3,937,612
Gas Utilities 0.95% 8,712,000
Peoples Energy Corp. 220,000 8,712,000
Multi-Utilities & Unregulated Power 0.83% 7,651,776
Duke Energy Corp. 40,215 1,173,876
TECO Energy, Inc. 390,000 6,477,900
Credit
Issuer, description rating (A) Shares Value
---------------------------------------------------------------------------------------------------------------------------------
Preferred stocks 85.23% $782,855,855
(Cost $759,958,661)
Agricultural Products 1.33% 12,195,226
Ocean Spray Cranberries, Inc., 6.25%, Ser A (S) BB+ 143,000 12,195,226
Asset Management & Custody Banks 0.11% 978,000
BNY Capital V, 5.95%, Ser F A- 40,000 978,000
Automobile Manufacturers 2.05% 18,869,227
Ford Motor Co., 7.50% BB+ 50,000 1,094,500
General Motors Corp., 7.25%, Ser 04-15-41 BB 378,700 7,028,672
General Motors Corp., 7.25%, Ser 07-15-41 BB 89,000 1,655,400
General Motors Corp., 7.25%, Ser 02-15-52 BB 254,300 4,615,545
General Motors Corp., 7.375%, Ser 05-15-48 Baa3 90,000 1,660,500
General Motors Corp., 7.375%, Ser 10-01-51 BB 149,000 2,814,610
Broadcasting & Cable TV 1.80% 16,554,377
Shaw Communications, Inc., 8.50% (Canada) B+ 655,100 16,554,377
Consumer Finance 3.05% 27,992,735
Ford Motor Credit Co., 7.60% A3 315,600 7,085,220
Household Finance Corp., 6.00% A 214,200 5,342,148
Household Finance Corp., 6.875% A 399,800 10,414,790
SLM Corp., 6.00% A 207,100 5,150,577
Diversified Banks 8.07% 74,126,614
BAC Capital Trust IV, 5.875% A 181,150 4,420,060
Bank One Capital Trust V, 8.00% A- 20,500 528,900
Bank One Capital Trust VI, 7.20% A- 55,500 1,429,680
Comerica Capital Trust I, 7.60% BBB+ 171,400 4,418,692
Fleet Capital Trust VII, 7.20% A 322,500 8,352,750
Fleet Capital Trust VIII, 7.20% A 464,750 12,208,983
Royal Bank of Scotland Group Plc, 5.75%, Ser L
(United Kingdom) A 550,900 13,381,361
Santander Finance Preferred S.A. Unipersonal, 6.41%,
Ser 1 (Spain) BBB+ 225,000 5,711,400
USB Capital III, 7.75% A- 327,100 8,383,573
USB Capital IV, 7.35% A- 165,700 4,258,490
USB Capital V, 7.25% A- 103,599 2,685,286
Wachovia Preferred Funding Corp., 7.25%, Ser A A- 69,000 1,952,700
Wells Fargo Capital Trust IV, 7.00% A 91,100 2,356,757
Wells Fargo Capital Trust VI, 6.95% A- 53,400 1,387,332
Wells Fargo Capital Trust VII, 5.85% A 107,750 2,650,650
Electric Utilities 19.61% 180,073,285
Ameren Corp., 9.75%, Conv BBB+ 480,000 13,483,200
American Electric Power Co., Inc., 9.25%, Conv BBB 200,000 8,846,000
Boston Edison Co., 4.78% BBB+ 15,143 1,396,942
Entergy Mississippi, Inc., 7.25% A- 346,000 9,117,100
FPC Capital I, 7.10%, Ser A BB+ 729,791 18,478,308
FPL Group Capital Trust I, 5.875% BBB+ 493,300 12,209,175
FPL Group, Inc., 8.00%, Conv A- 120,000 7,486,800
Georgia Power Capital Trust VII, 5.875% BBB+ 250,600 6,152,230
Georgia Power Co., 6.00%, Ser R A 393,197 9,908,564
Great Plains Energy, Inc., 8.00%, Conv BBB- 725,600 19,409,800
HECO Capital Trust III, 6.50% BBB- 375,400 9,895,544
Interstate Power & Light Co., 8.375%, Ser B BBB- 700,000 23,800,000
Monongahela Power Co., $7.73, Ser L B 45,000 4,488,750
Northern States Power Co., 8.00% BBB- 235,000 6,283,900
Pennsylvania Power Co., 7.75% BB 91,700 9,278,894
Southern Co. Capital Trust VI, 7.125% BBB+ 49,800 1,307,748
TXU Corp., 8.125%, Conv Ba1 79,800 5,665,002
Virginia Power Capital Trust, 7.375% BBB- 494,250 12,865,328
Gas Utilities 5.36% 49,265,305
El Paso Tennessee Pipeline Co., 8.25%, Ser A CCC- 231,500 11,575,000
KeySpan Corp., 8.75%, Conv A 335,000 17,095,050
SEMCO Capital Trust I, 10.25% B- 303,446 7,671,115
Southern Union Co., 5.00%, Conv BBB 30,000 1,504,500
Southern Union Co., 5.75%, Conv Baa3 12,000 845,400
Southwest Gas Capital II, 7.70% BB 362,100 9,733,248
TransCanada Pipelines Ltd., 8.25% (Canada) BBB 32,800 840,992
Hotels, Resorts & Cruise Lines 0.33% 3,045,799
Hilton Hotels Corp., 8.00% BBB- 118,100 3,045,799
Integrated Oil & Gas 0.31% 2,869,260
Coastal Finance I, 8.375% CCC- 116,400 2,869,260
Integrated Telecommunication Services 2.84% 26,042,703
Telephone & Data Systems, Inc., 6.625% A- 160,000 3,955,200
Telephone & Data Systems, Inc., 7.60%, Ser A A- 690,687 17,819,725
Verizon New England, Inc., 7.00%, Ser B A2 166,450 4,267,778
Investment Banking & Brokerage 5.96% 54,692,643
Bear Stearns Capital Trust III, 7.80% BBB 40,600 1,045,044
Bear Stearns Cos., Inc. (The), 5.72%, Depositary
Shares, Ser F BBB 20,000 1,022,000
Lehman Brothers Holdings Capital Trust V, 6.00%, Ser M BBB+ 70,000 1,722,000
Lehman Brothers Holdings, Inc., 5.94%, Depositary
Shares, Ser C BBB+ 175,600 9,069,740
Merrill Lynch Preferred Capital Trust III, 7.00% A- 330,500 8,616,135
Merrill Lynch Preferred Capital Trust IV, 7.12% A- 241,152 6,351,944
Merrill Lynch Preferred Capital Trust V, 7.28% A- 367,000 9,721,830
Morgan Stanley Capital Trust II, 7.25% A- 240,200 6,139,512
Morgan Stanley Capital Trust III, 6.25% A- 60,400 1,505,168
Morgan Stanley Capital Trust IV, 6.25% A- 57,000 1,414,170
Morgan Stanley Capital Trust V, 5.75% A1 347,000 8,085,100
Life & Health Insurance 1.56% 14,365,180
Lincoln National Capital VI, 6.75%, Ser F BBB 143,200 3,687,400
PLC Capital Trust IV, 7.25% BBB+ 186,600 4,907,580
PLC Capital Trust V, 6.125% BBB+ 236,000 5,770,200
Multi-Line Insurance 2.26% 20,746,558
ING Groep N.V., 6.20% (Netherlands) A- 94,193 2,363,302
ING Groep N.V., 7.05% (Netherlands) A- 703,800 18,383,256
Multi-Utilities & Unregulated Power 12.17% 111,782,572
Aquila, Inc., 7.875% B2 511,700 12,086,354
Baltimore Gas & Electric Co., 6.99%, Ser 1995 Baa1 40,000 4,190,000
BGE Capital Trust II, 6.20% BBB- 623,825 15,807,725
Consumers Energy Co. Financing IV, 9.00% Ba2 117,600 3,063,480
Dominion CNG Capital Trust I, 7.80% BBB- 253,476 6,547,285
DTE Energy Co., 8.75%, Conv BBB- 220,000 5,592,400
DTE Energy Trust I, 7.80% BB+ 135,100 3,499,090
Energy East Capital Trust I, 8.25% BBB- 447,200 11,600,368
Enterprise Capital Trust I, 7.44%, Ser A BB+ 392,200 9,867,752
Enterprise Capital Trust III, 7.25%, Ser C BB+ 210,600 5,300,802
ONEOK, Inc., 8.50%, Conv BBB+ 31,000 1,091,510
PSEG Funding Trust II, 8.75% BB+ 233,000 6,314,300
Public Service Electric & Gas Co., 4.18%, Ser B BB+ 7,900 624,890
Public Service Enterprise Group, Inc., 10.25%, Conv BBB- 155,450 11,503,300
Puget Sound Energy Capital Trust II, 8.40% BB 103,900 2,699,322
TECO Capital Trust I, 8.50% B 469,800 11,993,994
Oil & Gas Exploration & Production 3.20% 29,393,074
Nexen, Inc., 7.35% (Canada) BB+ 1,127,900 29,393,074
Other Diversified Financial Services 7.56% 69,427,364
ABN AMRO Capital Funding Trust V, 5.90% A 626,100 15,182,925
ABN AMRO Capital Funding Trust VII, 6.08% A 328,000 8,160,640
Citigroup Capital VII, 7.125% A 98,700 2,566,200
Citigroup Capital VIII, 6.95% A 214,600 5,517,366
Citigroup Capital IX, 6.00% A 217,000 5,396,790
Citigroup Capital X, 6.10% A 100,000 2,502,000
Citigroup Capital XI, 6.00% A 25,000 620,000
General Electric Capital Corp., 5.875% AAA 151,500 3,834,465
General Electric Capital Corp., 6.10% AAA 51,210 1,307,391
J.P. Morgan Chase Capital IX, 7.50%, Ser I A- 61,000 1,567,700
J.P. Morgan Chase Capital X, 7.00%, Ser J A1 607,100 15,778,529
J.P. Morgan Chase Capital XI, 5.875%, Ser K A- 289,700 6,993,358
Real Estate Investment Trusts 4.48% 41,139,176
Duke Realty Corp., 6.50%, Depositary Shares, Ser K BBB 110,000 2,728,000
Duke Realty Corp., 6.60%, Depositary Shares, Ser L BBB 109,840 2,741,606
Duke Realty Corp., 6.625%, Depositary Shares, Ser J BBB 59,925 1,496,327
Duke Realty Corp., 7.99%, Depositary Shares, Ser B BBB 251,830 13,118,782
Public Storage, Inc., 6.45%, Depositary Shares, Ser X BBB+ 25,000 613,750
Public Storage, Inc., 6.50%, Depositary Shares, Ser W BBB+ 100,000 2,499,000
Public Storage, Inc., 7.50%, Depositary Shares, Ser V BBB+ 497,643 12,933,742
Public Storage, Inc., 8.00%, Depositary Shares, Ser R BBB+ 157,965 4,111,829
Public Storage, Inc., 8.60%, Depositary Shares, Ser Q BBB+ 34,600 896,140
Regional Banks 0.94% 8,674,376
National Commerce Capital Trust II, 7.70% A- 80,300 2,100,648
PFGI Capital Corp., 7.75% A3 200,000 5,362,500
Regions Financing Trust I, 8.00% BBB+ 46,856 1,211,228
Reinsurance 0.38% 3,505,990
RenaissanceRe Holdings Ltd., 6.08%, Ser C (Bermuda) BBB+ 153,100 3,505,990
Thrifts & Mortgage Finance 1.27% 11,676,097
Abbey National Plc, 7.25% (United Kingdom) A- 73,580 1,878,497
Abbey National Plc, 7.375% (United Kingdom) A- 370,000 9,797,600
Wireless Telecommunication Services 0.59% 5,440,294
United States Cellular, 7.50% A- 205,760 5,440,294
Interest Maturity Credit Par value
Issuer, description rate (%) date rating (A) ($000) Value
---------------------------------------------------------------------------------------------------------------------------------
Short-term investments 0.93% $8,500,000
(Cost $8,498,725)
Government U.S. Agency 0.93% 8,500,000
Federal Home Loan Bank, Disc Note 2.70 05-02-2005 AAA 8,500 8,500,000
Total investments 100.00% $918,476,955
John Hancock
Preferred Income Fund
Financial futures contracts
April 30, 2005 (unaudited)
Number of
Open contracts contracts Position Expiration (Depreciation)
----------------------------------------------------------------------------------------------------------
U.S. 10-year Treasury Note 700 Short June 05 ($453,341)
U.S. 10-year Treasury Note 140 Short June 05 ($287,543)
John Hancock
Preferred Income Fund
Interest rate swap contracts
April 30, 2005 (unaudited)
---------------------------------------------------------------------------------------------------------
Rate type
--------------------------------------------------
Notional Payments made Payments received Termination
amount by Fund by Fund date Appreciation
$70,000,000 2.56%(a) 3-month LIBOR June 08 $3,264,563
(a) Fixed rate
John Hancock
Preferred Income Fund
Footnotes to Schedule of Investments
April 30, 2005 (unaudited)
(A) Credit ratings are unaudited and are rated by Moody's Investors
Service where Standard & Poor's ratings are not available.
(S) This security is 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. Rule 144A securities amounted to $12,195,226 or 1.33% of
the Fund's total investments as of April 30, 2005.
Parenthetical disclosure of a foreign country in the security
description represents country of a foreign issuer.
The percentage shown for each investment category is the total value
of that category as a percentage of the total investments of the Fund.
The cost of investments owned on April 30, 2005, including short-term
investments, was $886,009,097. Gross unrealized appreciation and
depreciation of investments aggregated $46,454,386 and $13,986,528,
respectively, resulting in net unrealized appreciation of $32,467,858.
For more information
Trustees
Charles L. Ladner, Chairman*
James F. Carlin
Richard P. Chapman, Jr.*
William H. Cunningham
Ronald R. Dion
Dr. John A. Moore*
Patti McGill Peterson*
Steven R. Pruchansky
James A. Shepherdson
Lt. Gen. Norman H. Smith, USMC (Ret.)
*Members of the Audit Committee
Officers
James A. Shepherdson
President and Chief Executive Officer
William H. King
Vice President and Treasurer
Investment Adviser
John Hancock Advisers, LLC
101 Huntington Avenue
Boston, Massachusetts 02199-7603
Custodian
The Bank of New York
One Wall Street
New York, New York 10286
Transfer Agent and Dividend Disburser
Mellon Investor Services
85 Challenger Road
Overpeck Centre
Ridgefield Park, New Jersey 07660
Transfer Agent for DARTS
Deutsche Bank Trust Company Americas
280 Park Avenue
New York, New York 10017
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
60 State Street
Boston, Massachusetts 02109-1803
Stock Symbol
Listed New York Stock Exchange: HPI
How to contact us
Internet www.jhfunds.com
Mail Regular mail:
Mellon Investor Services
85 Challenger Road
Overpeck Centre
Ridgefield Park, NJ 07660
Phone Customer service representatives 1-800-852-0218
Portfolio commentary 1-800-344-7054
24-hour automated information 1-800-843-0090
TDD line 1-800-231-5469
This report is for the information of the shareholders
of John Hancock Preferred Income Fund.
P80Q3 4/05
6/05
ITEM 2. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure
controls and procedures as conducted within 90 days of the filing date of
this Form N-Q, the registrant's principal executive officer and principal
accounting officer have concluded that those disclosure controls and
procedures provide reasonable assurance that the material information
required to be disclosed by the registrant on this report is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over
financial reporting that occurred during the registrant's last fiscal
quarter that has materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Separate certifications for the registrant's principal executive officer
and principal accounting officer, as required by Rule 30a-2(a) under the
Investment Company Act of 1940, are attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and 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.
John Hancock Preferred Income Fund
By:
------------------------------
James A. Shepherdson
President and Chief Executive Officer
Date: June 30, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By:
------------------------------
James A. Shepherdson
President and Chief Executive Officer
Date: June 30, 2005
By:
------------------------------
William H. King
Vice President and Treasurer
Date: June 30, 2005