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)

601 Congress Street, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)

Alfred E. Ouellette, Senior Attorney and Assistant Secretary

601 Congress Street

Boston, Massachusetts 02210

(Name and address of agent for service)

Registrant's telephone number, including area code: 617-663-4324

Date of fiscal year end:  July 31 
  
Date of reporting period:  October 31, 2006 


ITEM 1. SCHEDULE OF INVESTMENTS


John Hancock
Preferred Income Fund
Securities owned by the Fund on

October 31, 2006 (unaudited)

  Interest  Maturity  Credit  Par value   
Issuer, description  rate  date  rating (A)  (000)  Value 
Bonds 1.91%          $17,271,986 
(Cost $17,279,818)           
 
Electric Utilities  1.21%          10,911,260 
Black Hills Corp.,           
Note  6.500%  05-15-13  BBB-  $5,950  6,011,785 
Entergy Gulf States, Inc.,           
1st Mtg Bond  6.200  07-01-33  BBB+  5,000  4,899,475 
Gas Utilities 0.70%          6,360,726 
Southern Union Co.,           
Jr Sub Note Ser A (P)  7.200  11-01-66  BB+  6,300  6,360,726 
     
      Credit  Par value   
Issuer, description, maturity date      rating (A)  (000)  Value 
Capital preferred securities  7.87%          $71,102,239 
(Cost $68,433,343)           
 
Diversified Banks 0.83%          7,537,500 
Lloyds TSB Bank Plc, 6.90%, 11-29-49 (United           
Kingdom)      A+  $7,500  7,537,500 
Electric Utilities  2.83%          25,560,000 
DPL Capital Trust II, 8.125%, 09-01-31      BB-  24,000  25,560,000 
Gas Utilities 2.78%          25,139,665 
KN Capital Trust I, 8.56%, Ser B, 04-15-27      BB+  17,500  17,650,465 
KN Capital Trust III, 7.63%, 04-15-28      BB+  8,000  7,489,200 
Integrated Telecommunication Services 0.67%          6,039,463 
TCI Communications Financing Trust III,           
9.65%, 03-31-27      BBB-  5,700  6,039,463 
Regional Banks  0.76%          6,825,611 
Summit Capital Trust I, 8.40%, Ser B,           
03-15-27      A  6,500  6,825,611 

Page 1

John Hancock
Preferred Income Fund
Securities owned by the Fund on

October 31, 2006 (unaudited)

Issuer    Shares  Value 
Common stocks  3.56%      $32,157,670 
(Cost $25,443,427)       
 
Electric Utilities 0.71%      6,450,950 
FPL Group, Inc.    80,000  4,080,000 
Scottish Power Plc, American Depositary       
Receipt (ADR) (United Kingdom)    47,619  2,370,950 
Independent Power Producers & Energy Traders  0.77%      6,944,300 
TXU Corp.    110,000  6,944,300 
Multi-Utilities 2.08%      18,762,420 
Alliant Energy Corp.    190,000  7,286,500 
DTE Energy Co.    111,046  5,044,820 
TECO Energy, Inc.    390,000  6,431,100 
  Credit     
Issuer, description  rating (A)  Shares  Value 
Preferred stocks  86.24%      $779,525,178 
(Cost $777,927,369)       
 
Agricultural Products  1.30%      11,761,750 
Ocean Spray Cranberries, Inc., 6.25%,       
Ser A (S)  BB+  143,000  11,761,750 
Asset Management & Custody Banks 0.08%      724,800 
BNY Capital V, 5.95%, Ser F  A-  30,000  724,800 
Automobile Manufacturers 2.00%      18,061,941 
Ford Motor Co., 7.50%  B  40,000  745,200 
General Motors Corp., 7.25%, Ser 04-15-41  B-  378,700  7,244,531 
General Motors Corp., 7.25%, Ser 07-15-41  B-  82,000  1,567,020 
General Motors Corp., 7.25%, Ser 02-15-52  B-  254,300  4,806,270 
General Motors Corp., 7.375%, Ser 05-15-48  Caa1  65,000  1,237,600 
General Motors Corp., 7.375%, Ser 10-01-51  B-  129,000  2,461,320 
Broadcasting & Cable TV 2.14%      19,368,155 
Comcast Corp., 7.00%  BBB+  222,000  5,627,700 
Comcast Corp., 7.00%, Ser B  BBB+  539,900  13,740,455 

Page 2

John Hancock

Preferred Income Fund

Securities owned by the Fund on October 31, 2006 (unaudited)

Consumer Finance 4.87%      44,029,138 
CIT Group, Inc., 6.35%, Ser A  BBB+  70,000  1,821,400 
Ford Motor Credit Co., 7.60%  B1  315,600  6,927,420 
HSBC Finance Corp., 6.00%  AA-  199,200  4,888,368 
HSBC Finance Corp., 6.36%, Depositary       
Shares, Ser B  A  297,000  7,704,180 
HSBC Finance Corp., 6.875%  AA-  399,800  10,230,882 
SLM Corp., 6.00%  A  209,100  5,127,132 
SLM Corp., 6.97%, Ser A  BBB+  137,390  7,329,756 
 
Diversified Banks 7.12%      64,361,651 
BAC Capital Trust IV, 5.875%  A  141,150  3,396,069 
Bank One Capital Trust VI, 7.20%  A-  81,100  2,047,775 
Comerica Capital Trust I, 7.60%  BBB+  178,100  4,497,025 
Fleet Capital Trust VIII, 7.20%  A  464,750  11,776,765 
HSBC Holdings Plc, 6.20%, Ser A (United       
Kingdom)  A  150,000  3,771,000 
Royal Bank of Scotland Group Plc, 5.75%,       
Ser L (United Kingdom)  A  550,900  13,238,127 
Royal Bank of Scotland Group Plc, 6.35%,       
Ser N, ADR (United Kingdom)  A  20,000  508,600 
Santander Finance Preferred SA, Unipersonal,       
6.41%, Ser 1 (Spain)  A-  225,000  5,742,000 
USB Capital IV, 7.35%  A  165,700  4,155,756 
USB Capital V, 7.25%  A  103,599  2,620,019 
USB Capital VI, 5.75%  A  15,000  349,500 
USB Capital VII, 5.875%  A  36,900  873,423 
USB Capital VIII, 6.35%, Ser 1  A  169,800  4,199,154 
USB Capital X, 6.50%  A  45,000  1,122,300 
Wachovia Preferred Funding Corp., 7.25%,       
Ser A  A-  69,000  1,954,080 
Wells Fargo Capital Trust IV, 7.00%  A+  108,100  2,741,416 
Wells Fargo Capital Trust VI, 6.95%  A+  53,400  1,368,642 
 
Electric Utilities 17.84%      161,262,177 
Boston Edison Co., 4.78%  A-  15,143  1,351,513 
Entergy Arkansas, Inc., 6.70%  AAA  25,300  644,138 
Entergy Mississippi, Inc., 7.25%  A-  346,000  8,878,360 
FPC Capital I, 7.10%, Ser A  BB+  844,691  21,472,045 
FPL Group Capital Trust I, 5.875%  BBB+  502,200  11,987,514 
Georgia Power Capital Trust VII, 5.875%  BBB+  250,600  5,929,196 
Georgia Power Co., 6.00%, Ser R  A  395,497  9,855,785 
Great Plains Energy, Inc., 8.00%, Conv  BBB-  764,900  19,122,500 
HECO Capital Trust III, 6.50%  BBB-  375,400  9,392,508 
Interstate Power & Light Co., 8.375%, Ser B  Baa3  700,000  22,575,000 
Northern States Power Co., 8.00%  BBB-  235,000  5,997,200 
PPL Electric Utilities Corp., 6.25%,       
Depositary Shares  BBB  300,000  7,678,140 
PPL Energy Supply, LLC, 7.00%  BBB  383,660  9,837,042 
Southern California Edison Co., 6.125%  BBB-  119,000  12,082,225 
Southern Co. Capital Trust VI, 7.125%  BBB+  49,800  1,266,912 
Virginia Power Capital Trust, 7.375%  BB+  518,150  13,192,099 

Page 3

John Hancock
Preferred Income Fund
Securities owned by the Fund on

October 31, 2006 (unaudited)

Gas Utilities 2.27%      20,506,084 
Southern Union Co., 5.00%, Conv  BBB  25,000  1,393,750 
Southern Union Co., 7.55%, Ser A  BB+  296,600  7,747,192 
Southwest Gas Capital II, 7.70%  BB  404,300  10,519,886 
TransCanada Pipelines Ltd., 8.25% (Canada)  BBB  32,800  845,256 
 
Hotels, Resorts & Cruise Lines 0.33%      3,024,541 
Hilton Hotels Corp., 8.00%  BB  118,100  3,024,541 
 
Integrated Telecommunication Services 3.11%      28,112,085 
Telephone & Data Systems, Inc., 6.625%  BBB  233,000  5,778,400 
Telephone & Data Systems, Inc., 7.60%, Ser A  BBB  690,687  17,315,523 
Verizon New England, Inc., 7.00%, Ser B  A3  199,450  5,018,162 
 
Investment Banking & Brokerage 8.20%      74,138,928 
Bear Stearns Capital Trust III, 7.80%  BBB+  40,600  1,029,210 
Goldman Sachs Group, Inc., 6.20%, Ser B  A  460,000  11,799,000 
Lehman Brothers Holdings Capital Trust III,       
6.375%, Ser K  A-  150,000  3,750,000 
Lehman Brothers Holdings Capital Trust V,       
6.00%, Ser M  A-  70,000  1,701,700 
Lehman Brothers Holdings, Inc., 5.94%,       
Depositary Shares, Ser C  A-  175,600  8,955,600 
Merrill Lynch Preferred Capital Trust III,       
7.00%  A  330,500  8,450,885 
Merrill Lynch Preferred Capital Trust IV,       
7.12%  A  247,752  6,344,929 
Merrill Lynch Preferred Capital Trust V,       
7.28%  A  367,000  9,501,630 
Morgan Stanley Capital Trust II, 7.25%  A-  240,200  6,041,030 
Morgan Stanley Capital Trust III, 6.25%  A-  192,400  4,802,304 
Morgan Stanley Capital Trust IV, 6.25%  A-  57,000  1,414,170 
Morgan Stanley Capital Trust V, 5.75%  A1  347,000  8,088,570 
Morgan Stanley Capital Trust VI, 6.60%  A-  90,000  2,259,900 
 
Life & Health Insurance 4.59%      41,443,156 
Lincoln National Capital VI, 6.75%, Ser F  A-  148,600  3,835,366 
MetLife, Inc., 6.50%, Ser B  BBB  950,500  24,713,000 
PLC Capital Trust IV, 7.25%  BBB+  186,600  4,739,640 
PLC Capital Trust V, 6.125%  BBB+  256,000  6,246,400 
Prudential Plc, 6.50% (United Kingdom)  A-  75,000  1,908,750 
 
Multi-Line Insurance 3.92%      35,445,821 
AEGON NV, 6.375% (Netherlands)  A-  444,900  11,291,562 
AEGON NV, 6.50% (Netherlands)  A-  111,100  2,840,827 
ING Groep NV, 6.20% (Netherlands)  A  134,793  3,380,608 
ING Groep NV, 7.05% (Netherlands)  A  703,800  17,932,824 

Page 4

John Hancock
Preferred Income Fund
Securities owned by the Fund on

October 31, 2006 (unaudited)

Multi-Utilities 8.13%      73,451,126 
Aquila, Inc., 7.875%  B2  511,700  12,946,010 
Baltimore Gas & Electric Co., 6.99%, Ser 1995  Ba1  40,000  4,180,000 
BGE Capital Trust II, 6.20%  BBB-  831,825  20,404,667 
Dominion CNG Capital Trust I, 7.80%  BB+  253,476  6,359,713 
DTE Energy Trust I, 7.80%  BB+  135,100  3,400,467 
PNM Resources, Inc., 6.75%, Conv  BBB-  268,000  13,308,880 
PSEG Funding Trust II, 8.75%  BB+  233,500  6,131,710 
Public Service Electric & Gas Co., 4.18%,       
Ser B  BB+  7,900  635,950 
TECO Capital Trust I, 8.50%  B  234,893  6,083,729 
 
Oil & Gas Exploration & Production 3.69%      33,332,764 
Chesapeake Energy Corp., 6.25%, Conv (G)  B+  4,530  1,240,314 
Nexen, Inc., 7.35% (Canada)  BB+  1,261,000  32,092,450 
 
Other Diversified Financial Services 7.51%      67,879,009 
ABN AMRO Capital Funding Trust V, 5.90%  A  626,100  15,107,793 
ABN AMRO Capital Funding Trust VII, 6.08%  A  328,000  8,160,640 
Citigroup Capital VII, 7.125% (G)  A  138,700  3,525,754 
Citigroup Capital VIII, 6.95%  A  410,600  10,351,226 
Citigroup Capital X, 6.10%  A  73,300  1,822,971 
Citigroup Capital XI, 6.00%  A  25,000  611,500 
DB Capital Funding VIII, 6.375%  A  175,000  4,418,750 
JPMorgan Chase Capital IX, 7.50%, Ser I  A-  61,000  1,558,550 
JPMorgan Chase Capital X, 7.00%, Ser J  A-  607,100  15,438,553 
JPMorgan Chase Capital XI, 5.875%, Ser K  A-  289,700  6,883,272 
 
Real Estate Management & Development 3.93%      35,488,935 
Duke Realty Corp., 6.50%, Depositary Shares,       
Ser K  BBB  110,000  2,753,300 
Duke Realty Corp., 6.60%, Depositary Shares,       
Ser L  BBB  109,840  2,765,771 
Duke Realty Corp., 6.625%, Depositary       
Shares, Ser J  BBB  59,925  1,505,915 
Duke Realty Corp., 7.99%, Depositary Shares,       
Ser B  BBB  251,830  12,599,382 
Public Storage, Inc., 6.45%, Depositary       
Shares, Ser X  BBB+  25,000  618,000 
Public Storage, Inc., 6.50%, Depositary       
Shares, Ser W  BBB+  100,000  2,487,000 
Public Storage, Inc., 7.50%, Depositary       
Shares, Ser V  BBB+  497,643  12,759,567 
 
Regional Banks 2.57%      23,220,833 
KeyCorp Capital VI, 6.125%  BBB  20,900  517,275 
National Commerce Capital Trust II, 7.70%  A-  80,300  2,032,393 
PFGI Capital Corp., 7.75%  A  796,000  20,671,165 

Page 5

John Hancock
Preferred Income Fund
Securities owned by the Fund on

October 31, 2006 (unaudited)

Reinsurance 0.39%          3,567,230 
RenaissanceRe Holdings Ltd., 6.08%, Ser C         
(Bermuda)      BBB  153,100  3,567,230 
Specialized Finance 0.28%          2,545,000 
Repsol International Capital Ltd., 7.45%,           
Ser A (Cayman Islands)      BB+  100,000  2,545,000 
Thrifts & Mortgage Finance 1.38%          12,479,100 
Abbey National Plc, 7.375% (United Kingdom)    A  370,000  9,520,100 
Sovereign Capital Trust V, 7.75%      BB+  110,000  2,959,000 
Wireless Telecommunication Services  0.59%        5,320,954 
United States Cellular, 7.50%      BBB  205,760  5,320,954 
        
  Interest  Maturity  Credit  Par value   
Issuer, description  rate  date  rating (A)  (000)  Value 
Short-term investments 0.42%        $3,800,000 
(Cost $3,800,000)           
 
Government U.S. Agency 0.42%          3,800,000 
Federal Home Loan Bank, Disc Note  4.98%  11-01-06  AAA  $3,800  3,800,000 
 
Total investments (Cost $892,883,957)  100.00%      $903,857,073 

Page 6

John Hancock
Preferred Income Fund

Footnotes to Schedule of Investments
October 31, 2006 (unaudited)

(A) Credit ratings are unaudited and are rated by Moody's Investors Service where Standard & Poor's ratings are not available, unless indicated otherwise.

(G) Security rated internally by John Hancock Advisers, LLC.

(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 $11,761,750 or 1.30% of the Fund's total investments as of October 31, 2006.

Parenthetical disclosure of a foreign country in the security description represents country of a foreign issuer; however, security is U.S. dollar-denominated.

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 October 31, 2006, including short-term investments, was $892,883,957. Gross unrealized appreciation and depreciation of investments aggregated $30,082,757 and $19,109,641, respectively, resulting in net unrealized appreciation of $10,973,116.

Footnotes to Schedule of Investments - Page 1

John Hancock
Preferred Income Fund
Financial futures contracts
October 31, 2006 (unaudited)

  Number of      Appreciation 
Open contracts  contracts  Position  Expiration  (depreciation) 
 
U.S. 10-year Treasury Note  840  Short  Dec-06  ($1,095,251) 

Financial futures contracts

John Hancock
Preferred Income Fund
Interest rate swap contracts
October 31, 2006 (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  Jun 08  $2,731,826 
 
          $2,731,826 

(a) Fixed rate

Interest rate swap contracts


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: /s/ Keith F. Hartstein
-------------------------------------
Keith F. Hartstein
President and Chief Executive Officer

Date: January 2, 2007

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: /s/ Keith F. Hartstein
-------------------------------------
Keith F. Hartstein
President and Chief Executive Officer

Date: January 2, 2007

By: /s/ John G. Vrysen
-------------------------------------
John G. Vrysen
Chief Financial Officer

Date: January 2, 2007