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)
Susan S. Newton, 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: October 31, 2004
ITEM 1. SCHEDULE OF INVESTMENTS
JOHN HANCOCK
Preferred Income Fund
10.31.2004
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
October 31, 2004 (unaudited)
Interest Maturity Credit Par value
Issuer, description rate (%) date rating (A) ($000) Value
---------------------------------------------------------------------------------------------------------------------------------
Bonds 1.74% $16,102,281
(Cost $15,579,679)
Consumer Finance 0.22% 2,066,760
Capital One Bank, Sr Note 8.250 06-15-2005 BBB 2,000 2,066,760
Electric Utilities 1.52% 14,035,521
Black Hills Corp., Note 6.500 05-15-2013 BBB- 5,000 5,190,120
Entergy Gulf States, Inc., 1st Mtg Bond 6.200 07-01-2033 BBB 5,000 5,040,000
Midland Funding Corp. II, Lease Oblig Bond, Ser A 11.750 07-23-2005 BB- 3,613 3,805,401
Credit Par value
Issuer, description, maturity date rating (A) ($000) Value
---------------------------------------------------------------------------------------------------------------------------------
Capital preferred securities 7.48% $69,284,145
(Cost $62,689,351)
Diversified Banks 0.84% 7,800,750
Lloyds TSB Bank Plc, 6.90%, 11-29-49 (United Kingdom) Aa2 7,500 7,800,750
Electric Utilities 2.77% 25,620,000
DPL Capital Trust II, 8.125%, 09-01-31 B 24,000 25,620,000
Gas Utilities 2.36% 21,834,319
KN Capital Trust I, 8.56%, Ser B, 04-15-27 BB+ 11,500 12,956,015
KN Capital Trust III, 7.63%, 04-15-28 BB+ 8,000 8,878,304
Integrated Telecommunication Services 0.72% 6,665,415
TCI Communications Financing Trust III, 9.65%, 03-31-27 BBB- 5,700 6,665,415
Regional Banks 0.79% 7,363,661
Summit Capital Trust I, 8.40%, Ser B, 03-15-27 A- 6,500 7,363,661
Issuer Shares Value
---------------------------------------------------------------------------------------------------------------------------------
Common stocks 3.21% $29,710,016
(Cost $28,486,815)
Electric Utilities 1.99% 18,456,342
Alliant Energy Corp. 236,100 6,228,318
Progress Energy, Inc. 20,000 826,000
Scottish Power Plc, American Depositary Receipt (United Kingdom) 175,343 5,677,606
TECO Energy, Inc. 408,887 5,724,418
Gas Utilities 1.11% 10,267,200
Peoples Energy Corp. 240,000 10,267,200
Multi-Utilities & Unregulated Power 0.11% 986,474
Duke Energy Corp. 40,215 986,474
Credit
Issuer, description rating (A) Shares Value
---------------------------------------------------------------------------------------------------------------------------------
Preferred stocks 82.84% $767,455,406
(Cost $732,185,595)
Agricultural Products 1.18% 10,903,750
Ocean Spray Cranberries, Inc., 6.25%, Ser A (S) BB+ 143,000 10,903,750
Asset Management & Custody Banks 0.11% 994,000
BNY Capital V, 5.95%, Ser F A- 40,000 994,000
Automobile Manufacturers 2.66% 24,672,052
Ford Motor Co., 7.50% BBB- 50,000 1,288,000
General Motors Corp., 7.25%, Ser 4-15-41 BBB- 378,700 9,603,832
General Motors Corp., 7.25%, Ser 7-15-41 BBB- 89,000 2,241,910
General Motors Corp., 7.25%, Ser 2-15-52 BBB- 254,300 6,375,301
General Motors Corp., 7.375%, Ser 05-15-48 Baa2 70,000 1,761,900
General Motors Corp., 7.375%, Ser 10-01-51 Baa2 134,325 3,401,109
Broadcasting & Cable TV 2.69% 24,948,567
Shaw Communications, Inc., 8.45%, Ser A (Canada) B+ 328,418 8,328,680
Shaw Communications, Inc., 8.50% (Canada) B+ 655,100 16,619,887
Consumer Finance 3.18% 29,439,299
Ford Motor Credit Co., 7.60% A3 315,600 8,278,188
Household Finance Corp., 6.00% A 214,200 5,355,000
Household Finance Corp., 6.875% A 399,800 10,630,682
SLM Corp., 6.00% A 207,100 5,175,429
Diversified Banks 7.72% 71,490,330
BAC Capital Trust IV, 5.875% A- 181,150 4,441,798
Bank One Capital Trust V, 8.00% A- 20,500 546,325
Bank One Capital Trust VI, 7.20% A- 55,500 1,466,310
Chase Capital VII, 7.00%, Ser G A1 81,000 2,059,020
Comerica Capital Trust I, 7.60% BBB+ 171,400 4,542,100
Fleet Capital Trust VII, 7.20% A- 322,500 8,572,050
Fleet Capital Trust VIII, 7.20% A- 464,750 12,483,185
Royal Bank of Scotland Group Plc, 5.75%, Ser L (United Kingdom) A 550,900 13,177,528
USB Capital III, 7.75% A- 327,100 8,651,795
USB Capital IV, 7.35% A- 165,700 4,386,079
USB Capital V, 7.25% A- 103,599 2,770,237
Wachovia Preferred Funding Corp., 7.25%, Ser A BBB+ 69,000 1,914,060
Wells Fargo Capital Trust IV, 7.00% A 91,100 2,414,150
Wells Fargo Capital Trust VI, 6.95% A- 53,400 1,421,508
Wells Fargo Capital Trust VII, 5.85% A 107,750 2,644,185
Electric Utilities 24.58% 227,749,764
Ameren Corp., 9.75%, Conv BBB+ 480,000 13,872,000
American Electric Power Co., Inc., 9.25%, Conv BBB 200,000 9,516,000
Boston Edison Co., 4.78% BBB+ 15,143 1,347,727
Cinergy Corp., 9.50%, Conv Baa2 230,000 14,172,600
Detroit Edison Co., 7.375% BBB- 210,435 5,363,988
Detroit Edison Co., 7.54% BBB- 74,600 1,900,062
DTE Energy Co., 8.75%, Conv BBB 220,000 5,715,600
DTE Energy Trust I, 7.80% BBB- 111,700 3,018,134
Entergy Gulf States Capital I, 8.75%, Ser A BB 70,400 1,791,680
Entergy Mississippi, Inc., 7.25% A- 346,000 9,307,400
Enterprise Capital Trust I, 7.44%, Ser A BB+ 392,200 9,887,362
Enterprise Capital Trust III, 7.25%, Ser C BB+ 210,600 5,305,014
FPC Capital I, 7.10%, Ser A BB+ 603,791 15,287,988
FPL Group Capital Trust I, 5.875% BBB+ 468,300 11,534,229
FPL Group, Inc., 8.00%, Conv A- 120,000 6,810,000
Georgia Power Capital Trust VII, 5.875% BBB+ 233,400 5,746,308
Georgia Power Co., 6.00%, Ser R A 386,897 9,765,280
Great Plains Energy, Inc., 8.00%, Conv Baa2 540,000 13,365,000
HECO Capital Trust III, 6.50% (W) BBB- 235,300 6,214,273
Indiana Michigan Power Co., 6.875% BB+ 36,547 3,689,420
Interstate Power & Light Co., 8.375%, Ser B BBB- 700,000 22,400,000
Monongahela Power Co., $7.73, Ser L B- 45,000 4,353,750
Northern States Power Co., 8.00% BBB- 235,000 6,450,750
Pennsylvania Power Co., 7.75% BB 91,700 9,276,033
Puget Sound Energy Capital Trust II, 8.40% BB 103,900 2,761,662
Southern Co. Capital Trust VI, 7.125% BBB+ 49,800 1,333,644
TECO Capital Trust I, 8.50% B 469,800 12,186,612
TXU Corp., 8.125%, Conv Ba1 79,800 4,409,748
Virginia Power Capital Trust, 7.375% BBB 410,000 10,967,500
Gas Utilities 5.47% 50,657,026
El Paso Tennessee Pipeline Co., 8.25%, Ser A CCC- 231,500 10,931,152
KeySpan Corp., 8.75%, Conv A 335,000 17,956,000
SEMCO Capital Trust I, 10.25% B- 404,600 10,398,220
Southern Union Co., 5.75%, Conv Baa3 12,000 804,000
Southwest Gas Capital II, 7.70% BB 362,100 9,726,006
TransCanada Pipelines Ltd., 8.25% (Canada) BBB 32,800 841,648
Hotels, Resorts & Cruise Lines 0.24% 2,193,009
Hilton Hotels Corp., 8.00% BBB- 83,100 2,193,009
Industrial Conglomerates 0.63% 5,857,164
Grand Metropolitan Delaware, L.P., 9.42%, Gtd Ser A BBB+ 231,600 5,857,164
Integrated Oil & Gas 0.30% 2,791,272
Coastal Finance I, 8.375% CCC- 116,400 2,791,272
Integrated Telecommunication Services 2.04% 18,875,546
Telephone & Data Systems, Inc., 7.60%, Ser A A- 546,687 14,476,272
Verizon New England, Inc., 7.00%, Ser B Aa3 166,450 4,399,274
Investment Banking & Brokerage 4.95% 45,819,206
Bear Stearns Capital Trust III, 7.80% BBB 40,600 1,077,930
Bear Stearns Cos., Inc. (The), 5.72%, Depositary Shares, Ser F BBB 20,000 1,050,000
Lehman Brothers Holdings, Inc., 5.94%, Depositary Shares, Ser C BBB+ 175,600 8,955,600
Merril Lynch & Co., Inc., 9.00%, Depositary Shares, Ser A A- 204,500 5,237,245
Merrill Lynch Preferred Capital Trust III, 7.00% A- 151,300 4,021,554
Merrill Lynch Preferred Capital Trust IV, 7.12% A- 127,652 3,437,668
Merrill Lynch Preferred Capital Trust V, 7.28% A- 200,412 5,461,227
Morgan Stanley Capital Trust II, 7.25% A- 240,200 6,324,466
Morgan Stanley Capital Trust III, 6.25% A- 60,400 1,533,556
Morgan Stanley Capital Trust IV, 6.25% A- 47,000 1,184,870
Morgan Stanley Capital Trust V, 5.75% A1 317,000 7,535,090
Life & Health Insurance 1.25% 11,567,956
Great-West Life & Annuity Insurance Capital I, 7.25%, Ser A A- 27,200 688,976
PLC Capital Trust IV, 7.25% BBB+ 186,600 5,056,860
PLC Capital Trust V, 6.125% BBB+ 236,000 5,822,120
Multi-Line Insurance 1.74% 16,135,308
ING Groep N.V., 7.05% (Netherlands) A- 609,800 16,135,308
Multi-Media 0.37% 3,452,574
Newscorp Overseas Ltd., 8.625%, Ser A (Cayman Islands) BB 136,844 3,452,574
Multi-Utilities & Unregulated Power 8.40% 77,821,514
Aquila, Inc., 7.875% B2 511,700 11,978,897
Baltimore Gas & Electric Co., 6.99%, Ser 1995 Baa1 40,000 4,225,000
BGE Capital Trust II, 6.20% BBB- 608,125 15,385,563
Consumers Energy Co. Financing I, 8.36% B 42,800 1,092,684
Consumers Energy Co. Financing II, 8.20% B 136,200 3,497,616
Consumers Energy Co. Financing III, 9.25% B 115,200 2,918,016
Consumers Energy Co. Financing IV, 9.00% Ba2 117,600 3,123,456
Dominion CNG Capital Trust I, 7.80% BBB- 253,476 6,739,927
Dominion Resources, Inc., 9.50%, Conv BBB+ 9,000 483,120
Energy East Capital Trust I, 8.25% BBB- 447,200 11,895,520
ONEOK, Inc., 8.50%, Conv BBB+ 31,000 1,044,080
PSEG Funding Trust II, 8.75% BB+ 208,000 5,782,400
Public Service Electric & Gas Co., 4.18%, Ser B BB+ 7,900 592,500
Public Service Enterprise Group, Inc., 10.25%, Conv BBB- 155,450 9,062,735
Oil & Gas Exploration & Production 2.45% 22,726,600
Nexen, Inc., 7.35% (Canada) BB+ 874,100 22,726,600
Other Diversified Financial Services 6.76% 62,624,994
ABN AMRO Capital Funding Trust V, 5.90% A 481,800 11,621,016
ABN AMRO Capital Funding Trust VII, 6.08% A 188,000 4,653,000
Citigroup Capital VII, 7.125% A 98,700 2,630,355
Citigroup Capital VIII, 6.95% A 214,600 5,648,272
Citigroup Capital IX, 6.00% A 217,000 5,455,380
Citigroup Capital X, 6.10% A 100,000 2,512,000
General Electric Capital Corp., 5.875% AAA 151,500 3,870,825
General Electric Capital Corp., 6.10% AAA 51,210 1,327,363
J.P. Morgan Chase Capital IX, 7.50%, Ser I A- 61,000 1,618,330
J.P. Morgan Chase Capital X, 7.00%, Ser J A1 607,100 16,179,215
J.P. Morgan Chase Capital XI, 5.875%, Ser K A- 289,700 7,109,238
Real Estate Investment Trusts 4.21% 39,048,043
Duke Realty Corp., 6.50%, Depositary Shares, Ser K BBB 100,000 2,500,000
Duke Realty Corp., 6.625%, Depositary Shares, Ser J BBB 59,925 1,513,706
Duke Realty Corp., 7.99%, Depositary Shares, Ser B BBB 251,830 13,433,569
Public Storage, Inc., 6.45%, Depositary Shares, Ser X BBB+ 25,000 620,250
Public Storage, Inc., 6.50%, Depositary Shares, Ser W BBB+ 100,000 2,531,000
Public Storage, Inc., 7.50%, Depositary Shares, Ser V BBB+ 497,643 13,321,903
Public Storage, Inc., 8.00%, Depositary Shares, Ser R BBB+ 157,965 4,203,449
Public Storage, Inc., 8.60%, Depositary Shares, Ser Q BBB+ 34,600 924,166
Regional Banks 0.37% 3,403,093
National Commerce Capital Trust II, 7.70% A- 80,300 2,157,661
Regions Financing Trust I, 8.00% BBB+ 46,856 1,245,432
Thrifts & Mortgage Finance 1.23% 11,401,759
Abbey National Plc, 7.25% (United Kingdom) A- 73,580 1,916,759
Abbey National Plc, 7.375% (United Kingdom) A- 350,000 9,485,000
Wireless Telecommunication Services 0.31% 2,882,580
United States Cellular, 7.50% A- 107,760 2,882,580
Interest Maturity Credit Par value
Issuer, description rate (%) date rating (A) ($000) Value
---------------------------------------------------------------------------------------------------------------------------------
Short-term investments 4.73% $43,800,000
(Cost $43,800,000)
Government U.S. Agency 4.73% 43,800,000
Federal Home Loan Bank, Disc Note 1.69 11-01-2004 Aaa 43,800 43,800,000
Total investments 100.00% $926,351,848
John Hancock
Preferred Income Fund
Footnotes to Schedule of Investments
October 31, 2004 (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 $10,903,750 or 1.67% of
the Fund's total investments as of October 31, 2004.
(W) Issuer is an affiliate of John Hancock Advisers, LLC.
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, 2004, including
short-term investments, was $882,741,440. Gross unrealized
appreciation and depreciation of investments aggregated $51,684,249
and $8,073,841, respectively, resulting in net unrealized appreciation
of $43,610,408.
John Hancock
Preferred Income Fund
Transactions in securities of affiliated issuers
October 31, 2004 (unaudited)
Affiliated issuers, as defined by the Investment Company Act of 1940, are those in which the
Fund's holdings of an issuer represent 5% or more of the outstanding voting securities of the
issuer. A summary of the Fund's transactions in the securities of these issuers during the
period ended October 31, 2004, is set forth below.
Beginning Ending
share share Realized Dividend Ending
Affiliate amount amount gain (loss) income Value
--------------------------------------------------------------------------------------------------------------
HECO Capital Trust III, 6.50%
bought: 88,000, sold: none 147,300 235,300 -- 59,841 6,214,273
Totals $-- $59,841 $6,214,273
For more information
Trustees
Charles L. Ladner, Chairman*
James F. Carlin
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.)
John P. Toolan*
*Members of the Audit Committee
Officers
James A. Shepherdson
President and Chief Executive Officer
Susan S. Newton
Senior Vice President and Secretary
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 the John Hancock Preferred Income Fund.
P80Q1 10/04
12/04
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: December 21, 2004
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: December 21, 2004
By:
------------------------------
William H. King
Vice President and Treasurer
Date: December 21, 2004