a_preferredincome.htm

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 P. 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:  April 30, 2006 

 

ITEM 1. SCHEDULE OF INVESTMENTS


John Hancock
Preferred Income Fund
Securities owned by the Fund on

April 30, 2006 (unaudited)

    Interest  Maturity  Credit  Par value   
Issuer, description    rate (%)  date  rating (A)  ($000)  Value 
 
Bonds 1.18%          $10,362,127 
(Cost $10,982,356)           
 
Electric Utilities  1.18%          10,362,127 
Black Hills Corp.,             
Note    6.500  05-15-13  BBB-  5,950  5,855,817 
Entergy Gulf States, Inc.,           
1st Mtg Bond    6.200  07-01-33  BBB+  5,000  4,506,310 

        Credit  Par value   
Issuer, description, maturity date      rating (A)  ($000)  Value 
  
Capital preferred securities 7.69%          $67,844,582 
 
(Cost $62,728,880)           
 
Diversified Banks 0.84%          7,387,500 
Lloyds TSB Bank Plc, 6.90%, 11-29-49 (United           
Kingdom)        A+  7,500  7,387,500 
Electric Utilities  3.06%          26,940,000 
DPL Capital Trust II, 8.125%, 09-01-31      B+  24,000  26,940,000 
Gas Utilities 2.32%          20,497,193 
KN Capital Trust I, 8.56%, Ser B, 04-15-27      BB+  11,500  12,179,673 
KN Capital Trust III, 7.63%, 04-15-28      BB+  8,000  8,317,520 
Integrated Telecommunication Services 0.69%          6,111,130 
 
TCI Communications Financing Trust III, 9.65%,           
03-31-27        BBB-  5,700  6,111,130 
Regional Banks  0.78%          6,908,759 
Summit Capital Trust I, 8.40%, Ser B, 03-15-27      A  6,500  6,908,759 

Issuer          Shares  Value 
Common stocks 3.22%          $28,357,127 
 
(Cost $26,727,191)           
 
Electric Utilities  1.07%          9,437,645 
FPL Group, Inc.          176,688  6,996,845 
Scottish Power Plc, American Depositary Receipt           
(ADR) (United Kingdom)        60,000  2,440,800 
Gas Utilities 0.18%          1,571,870 
ONEOK, Inc.          47,618  1,571,870 

Page 1

John Hancock
Preferred Income Fund
Securities owned by the Fund on
April 30, 2006 (unaudited)

Multi-Utilities 1.97%        17,347,612 
Alliant Energy Corp.      206,100  6,586,956 
DTE Energy Co.      111,046  4,528,456 
TECO Energy, Inc.      390,000  6,232,200 
 
    Credit     
Issuer, description    rating (A)  Shares  Value 
 
Preferred stocks  87.69%      $773,333,686 
(Cost $796,059,818)         
 
Agricultural Products  1.25%      10,984,188 
Ocean Spray Cranberries, Inc., 6.25%, Ser A (S)  BB+  143,000  10,984,188 
 
Asset Management & Custody Banks 0.10%      892,000 
BNY Capital V, 5.95%, Ser F  A-  40,000  892,000 
 
Automobile Manufacturers 1.71%      15,105,134 
Ford Motor Co., 7.50%    BB-  40,000  680,800 
General Motors Corp., 7.25%, Ser 04-15-41  B  378,700  6,002,395 
General Motors Corp., 7.25%, Ser 07-15-41  B  82,000  1,293,140 
General Motors Corp., 7.25%, Ser 02-15-52  B  254,300  4,025,569 
General Motors Corp., 7.375%, Ser 05-15-48  B3  65,000  1,023,750 
General Motors Corp., 7.375%, Ser 10-01-51  B  129,000  2,079,480 
 
Consumer Finance 4.85%      42,739,415 
CIT Group, Inc., 6.35%, Ser A  BBB+  70,000  1,757,700 
Ford Motor Credit Co., 7.60%  Ba2  315,600  6,428,772 
HSBC Finance Corp., 6.00%  A  214,200  4,853,772 
HSBC Finance Corp., 6.36%, Depositary Shares,       
Ser B    BBB+  297,000  7,433,910 
HSBC Finance Corp., 6.875%  A  399,800  9,939,028 
SLM Corp., 6.00%    A  214,100  4,780,853 
SLM Corp., 6.97%, Ser A  BBB+  139,600  7,545,380 
 
Diversified Banks 9.18%      80,937,724 
BAC Capital Trust IV, 5.875%  A  181,150  3,990,734 
Bank One Capital Trust VI, 7.20%  A-  55,500  1,391,385 
Comerica Capital Trust I, 7.60%  BBB+  178,100  4,486,339 
Fleet Capital Trust VII, 7.20%  A  322,500  8,143,125 
Fleet Capital Trust VIII, 7.20%  A  464,750  11,744,232 
HSBC Holdings Plc, 6.20%, Ser A (United Kingdom)  A-  150,000  3,484,500 
Royal Bank of Scotland Group Plc, 5.75%, Ser L       
(United Kingdom)    A  550,900  12,141,836 
Royal Bank of Scotland Group Plc, 6.35%, Ser N,       
ADR (United Kingdom)    A  20,000  479,200 
Santander Finance Preferred SA, Unipersonal,       
6.41%, Ser 1 (Spain)    A-  225,000  5,467,500 
USB Capital III, 7.75%    Aa3  327,100  8,177,500 
USB Capital IV, 7.35%    A  165,700  4,150,785 
USB Capital V, 7.25%    A  103,599  2,614,839 
USB Capital VI, 5.75%    A  20,000  438,400 

Page 2

John Hancock
Preferred Income Fund
Securities owned by the Fund on

April 30, 2006 (unaudited)

USB Capital VII, 5.875%  A  36,900  824,715 
USB Capital VIII, 6.35%, Ser 1  A  169,800  3,995,394 
USB Capital X, 6.50%  A  45,000  1,104,750 
Wachovia Preferred Funding Corp., 7.25%, Ser A  A-  69,000  1,849,200 
Wells Fargo Capital Trust IV, 7.00%  A  108,100  2,721,958 
Wells Fargo Capital Trust VI, 6.95%  A-  53,400  1,338,204 
Wells Fargo Capital Trust VII, 5.85%  A  107,750  2,393,128 
 
Electric Utilities 17.39%      153,381,789 
Boston Edison Co., 4.78%  BBB+  15,143  1,258,535 
Entergy Arkansas, Inc., 6.70%  AAA  25,300  638,066 
Entergy Mississippi, Inc., 7.25%  A-  346,000  8,778,020 
FPC Capital I, 7.10%, Ser A  BB+  839,691  21,076,244 
FPL Group Capital Trust I, 5.875%  BBB+  502,200  11,249,280 
Georgia Power Capital Trust VII, 5.875%  BBB+  250,600  5,550,790 
Georgia Power Co., 6.00%, Ser R  A  395,497  9,037,106 
Great Plains Energy, Inc., 8.00%, Conv  BBB-  764,900  18,166,375 
HECO Capital Trust III, 6.50%  BBB-  375,400  9,313,674 
Interstate Power & Light Co., 8.375%, Ser B  Baa3  700,000  22,260,000 
Northern States Power Co., 8.00%  BBB-  235,000  6,016,000 
PPL Electric Utilities Corp., 6.25%, Depositary       
Shares  BBB  300,000  7,500,000 
Southern California Edison Co., 6.125%  BBB-  119,000  12,052,475 
Southern Co. Capital Trust VI, 7.125%  BBB+  49,800  1,252,968 
TXU Corp., 8.125%, Conv  Ba1  79,800  6,362,454 
Virginia Power Capital Trust, 7.375%  BB+  513,150  12,869,802 
 
Gas Utilities 2.33%      20,582,176 
Southern Union Co., 5.00%, Conv  BBB  30,000  1,538,100 
Southern Union Co., 7.55%, Ser A  BB+  296,600  7,652,280 
Southwest Gas Capital II, 7.70%  BB  404,300  10,560,316 
TransCanada Pipelines Ltd., 8.25% (Canada)  BBB  32,800  831,480 
 
Hotels, Resorts & Cruise Lines 0.33%      2,953,681 
Hilton Hotels Corp., 8.00%  BB  118,100  2,953,681 
 
Integrated Telecommunication Services 3.10%      27,377,470 
Telephone & Data Systems, Inc., 6.625%  A-  233,000  5,324,050 
Telephone & Data Systems, Inc., 7.60%, Ser A  A-  690,687  17,205,013 
Verizon New England, Inc., 7.00%, Ser B  A3  194,950  4,848,407 
 
Investment Banking & Brokerage 8.08%      71,272,157 
Bear Stearns Capital Trust III, 7.80%  BBB  40,600  1,016,218 
Goldman Sachs Group, Inc., 6.20%  A-  460,000  11,357,400 
Lehman Brothers Holdings Capital Trust III,       
6.375%, Ser K  A-  150,000  3,535,500 
Lehman Brothers Holdings Capital Trust V, 6.00%,       
Ser M  A-  70,000  1,550,500 
Lehman Brothers Holdings, Inc., 5.94%, Depositary       
Shares, Ser C  A-  175,600  8,665,860 
Merrill Lynch Preferred Capital Trust III, 7.00%  A-  330,500  8,321,990 
Merrill Lynch Preferred Capital Trust IV, 7.12%  A-  241,152  6,103,557 
Merrill Lynch Preferred Capital Trust V, 7.28%  A-  367,000  9,307,120 

Page 3

John Hancock
Preferred Income Fund
Securities owned by the Fund on

April 30, 2006 (unaudited)

Morgan Stanley Capital Trust II, 7.25%    A-  240,200  6,002,598 
Morgan Stanley Capital Trust III, 6.25%    A-  192,400  4,455,984 
Morgan Stanley Capital Trust IV, 6.25%    A-  57,000  1,309,860 
Morgan Stanley Capital Trust V, 5.75%    A1  347,000  7,463,970 
Morgan Stanley Capital Trust VI, 6.60%    A-  90,000  2,181,600 
 
Life & Health Insurance 4.51%        39,744,857 
Lincoln National Capital VI, 6.75%, Ser F  A-  148,600  3,664,476 
MetLife, Inc., 6.375%, Ser B, Conv    BBB+  9,930  278,239 
MetLife, Inc., 6.50%, Ser B    BBB  950,500  23,857,550 
PLC Capital Trust IV, 7.25%    BBB+  186,600  4,687,392 
PLC Capital Trust V, 6.125%    BBB+  256,000  5,811,200 
Prudential Plc, 6.50% (United Kingdom)    A  60,000  1,446,000 
 
Multi-Line Insurance 3.89%        34,315,037 
AEGON NV, 6.375% (Netherlands)    A-  444,900  10,646,457 
AEGON NV, 6.50% (Netherlands)    A-  111,100  2,684,176 
ING Groep NV, 6.20% (Netherlands)    A  134,793  3,150,112 
ING Groep NV, 7.05% (Netherlands)    A  703,800  17,834,292 
 
Multi-Utilities 10.06%        88,694,123 
Aquila, Inc., 7.875%    B2  511,700  12,838,553 
Baltimore Gas & Electric Co., 6.99%, Ser 1995  Baa2  40,000  4,165,000 
BGE Capital Trust II, 6.20%    BBB-  831,825  19,431,432 
Consumers Energy Co. Financing IV, 9.00%  Ba2  117,600  2,975,280 
Dominion CNG Capital Trust I, 7.80%    BB+  253,476  6,352,109 
DTE Energy Trust I, 7.80%    BB+  135,100  3,404,520 
Energy East Capital Trust I, 8.25%    BBB-  447,200  11,211,304 
PNM Resources, Inc., 6.75%, Conv    BBB-  268,000  13,030,160 
PSEG Funding Trust II, 8.75%    BB+  233,500  6,110,695 
Public Service Electric & Gas Co., 4.18%, Ser B  BB+  7,900  635,950 
Puget Sound Energy Capital Trust II, 8.40%  BB  103,900  2,624,514 
TECO Capital Trust I, 8.50%    B  234,893  5,914,606 
 
Oil & Gas Exploration & Production  3.63%      32,029,400 
Nexen, Inc., 7.35% (Canada)    BB+  1,261,000  32,029,400 
 
Other Diversified Financial Services  7.98%      70,377,790 
ABN AMRO Capital Funding Trust V, 5.90%  A  626,100  14,005,857 
ABN AMRO Capital Funding Trust VII, 6.08%  A  328,000  7,599,760 
Citigroup Capital VII, 7.125%    A  98,700  2,497,110 
Citigroup Capital VIII, 6.95%    A  410,600  10,252,682 
Citigroup Capital IX, 6.00%    A  222,000  5,137,080 
Citigroup Capital X, 6.10%    A  100,000  2,317,000 
Citigroup Capital XI, 6.00%    A  25,000  577,000 
General Electric Capital Corp., 5.875%    AAA  151,500  3,493,590 
General Electric Capital Corp., 6.10%    AAA  51,210  1,223,407 
JPMorgan Chase Capital IX, 7.50%, Ser I  A-  61,000  1,525,000 
JPMorgan Chase Capital X, 7.00%, Ser J  A1  607,100  15,335,346 
JPMorgan Chase Capital XI, 5.875%, Ser K  A-  289,700  6,413,958 

Page 4

John Hancock
Preferred Income Fund
Securities owned by the Fund on April 30, 2006 (unaudited)

Real Estate Investment Trusts 4.42%            38,995,798 
Duke Realty Corp., 6.50%, Depositary Shares, Ser K      BBB  110,000  2,582,800 
Duke Realty Corp., 6.60%, Depositary Shares, Ser L      BBB  109,840  2,610,897 
Duke Realty Corp., 6.625%, Depositary Shares,           
Ser J        BBB  59,925  1,427,413 
Duke Realty Corp., 7.99%, Depositary Shares, Ser B      BBB  251,830  13,024,345 
Public Storage, Inc., 6.45%, Depositary Shares,           
Ser X        BBB+  25,000  559,750 
Public Storage, Inc., 6.50%, Depositary Shares,           
Ser W        BBB+  100,000  2,253,000 
Public Storage, Inc., 7.50%, Depositary Shares,           
Ser V        BBB+  497,643  12,550,556 
Public Storage, Inc., 8.00%, Depositary Shares,           
Ser R        BBB+  157,965  3,987,037 
 
Regional Banks 2.63%            23,163,314 
KeyCorp Capital VI, 6.125%        BBB  20,900  469,414 
National Commerce Capital Trust II, 7.70%      A-  80,300  2,047,650 
PFGI Capital Corp., 7.75%        A  796,000  20,646,250 
 
Reinsurance 0.36%            3,169,170 
RenaissanceRe Holdings Ltd., 6.08%, Ser C           
(Bermuda)        BBB  153,100  3,169,170 
 
Thrifts & Mortgage Finance 1.30%            11,443,599 
Abbey National Plc, 7.25% (United Kingdom)      A  80,080  2,001,199 
Abbey National Plc, 7.375% (United Kingdom)      A  370,000  9,442,400 
 
Wireless Telecommunication Services  0.59%          5,174,864 
United States Cellular, 7.50%        A-  205,760  5,174,864 
 
    Interest  Maturity  Credit  Par value   
Issuer, description    rate (%)  Date  rating (A)  ($000)  Value 
 
Short-term investments 0.22%          $1,900,000 
(Cost $1,899,509)             
 
Government U.S. Agency 0.22%            1,900,000 
Federal Home Loan Bank, Disc Note    4.650  05-01-06  AAA  1,900  1,900,000 
 
Total investments 100.00%          $881,797,522 

Page 5

John Hancock
Preferred Income Fund
Financial futures contracts
April 30, 2006 (unaudited)

  Number of       
Open contracts  contracts  Position  Expiration  Appreciation 
U.S. 10-year Treasury Note  210  Short  Jun 06  $520,248 
U.S. 10-year Treasury Note  210  Short  Jun 06  $221,655 
        $741,903 

Financial futures contracts

John Hancock
Preferred Income Fund
Interest rate swap contracts
April 30, 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  $3,754,869 
 
        $3,754,869 

(a) Fixed rate

Interest rate swap contracts

John Hancock
Preferred Income Fund
Footnotes to Schedule of Investments
April 30, 2006 (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 security may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $10,984,188 or 1.24% of the Fund's total investments as of April 30, 2006.

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 net assets of the Fund.

The cost of investments owned on April 30, 2006, including short-term investments, was $898,397,754. Gross unrealized appreciation and depreciation of investments aggregated $24,683,493 and $41,283,725, respectively, resulting in net unrealized depreciation of $16,600,232.

Footnotes to Schedule of Investments - Page 1


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 financial 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 financial 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: June 27, 2006

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: June 27, 2006

By: /s/ John G. Vrysen
-------------------------------------
John G. Vrysen
Executive Vice President and Chief Financial Officer

Date: June 27, 2006