a_preferredinc.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 Counsel 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, 2008 

ITEM 1. SCHEDULE OF INVESTMENTS


John Hancock
Preferred Income Fund
Securities owned by the Fund on
April 30, 2008 (unaudited)

  Interest  Maturity  Credit  Par value   
Issuer, description  rate  date  rating (A)  (000)  Value 
Bonds 3.27%          $17,567,839 
(Cost $19,748,436)           
 
Electric Utilities 1.93%          10,384,874 
Black Hills Corp.,           
Note  6.500%  05-15-13  BBB-  $5,950  5,940,664 
Entergy Gulf States, Inc.,           
1st Mtg Bond  6.200  07-01-33  BBB+  5,000  4,444,210 
 
Gas Utilities 1.34%          7,182,965 
Southern Union Co.,           
Jr Sub Note Ser A  7.200  11-01-66  BB  8,800  7,182,965 
    
  Interest  Maturity  Credit  Par value   
Issuer, description  rate  date  rating (A)  (000)  Value 
Capital preferred securities 6.47%          $34,714,464 
(Cost $28,949,179)           
 
Diversified Banks 1.36%          7,275,000 
Lloyds TSB Bank Plc  6.90%  11-29-49  A+  $7,500  7,275,000 
 
Electric Utilities 5.11%          27,439,464 
DPL Capital Trust II  8.125  09-01-31  BB+  24,000  27,439,464 
  
Issuer        Shares  Value 
Common stocks 1.01%          $5,405,499 
(Cost $7,134,344)           
 
Electric Utilities 0.26%          1,410,200 
Great Plains Energy, Inc.        55,000  1,410,200 
 
Gas Utilities 0.09%          473,099 
Southern Union Co.        18,466  473,099 
 
Multi-Utilities 0.66%          3,522,200 
TECO Energy, Inc.        220,000  3,522,200 

Page 1 

John Hancock
Preferred Income Fund
Securities owned by the Fund on
April 30, 2008 (unaudited)

    Credit     
Issuer, description    rating (A)  Shares  Value 
Preferred stocks  136.60%      $733,288,207 
(Cost $802,956,916)         
 
Agricultural Products 2.44%      13,093,437 
Ocean Spray Cranberries, Inc., 6.25%,       
Ser A (S)    BBB-  143,000  13,093,437 
 
Automobile Manufacturers 2.80%      15,017,895 
Ford Motor Co., 7.50%    CCC+  37,900  659,460 
General Motors Corp., 7.25%, Ser 04-15-41  B-  378,700  6,059,200 
General Motors Corp., 7.25%, Ser 07-15-41  B-  82,000  1,334,140 
General Motors Corp., 7.25%, Ser 02-15-52  B-  254,300  4,005,225 
General Motors Corp., 7.375%,       
Ser 05-15-48    B-  50,000  827,500 
General Motors Corp., 7.375%,       
Ser 10-01-51    B-  129,000  2,132,370 
 
Broadcasting & Cable TV 4.67%      25,081,396 
CBS Corp., 6.75%    BBB  193,600  4,203,056 
Comcast Corp., 7.00%    BBB+  232,000  5,630,640 
Comcast Corp., 7.00%, Ser B  BBB+  634,000  15,247,700 
 
Consumer Finance 6.51%      34,961,760 
Ford Motor Credit Co., 7.60%  B1  308,500  5,704,165 
HSBC Finance Corp., 6.00%  AA-  134,200  3,155,042 
HSBC Finance Corp., 6.36%, Depositary       
Shares, Ser B    A  297,000  6,581,520 
HSBC Finance Corp., 6.875%  AA-  400,000  9,924,000 
SLM Corp., 6.00%    BBB-  194,100  3,590,850 
SLM Corp., 6.97%, Ser A  BB  147,391  6,006,183 

Page 2 

John Hancock
Preferred Income Fund
Securities owned by the Fund on
April 30, 2008 (unaudited)

Diversified Banks 8.82%      47,328,385 
BAC Capital Trust IV, 5.875%  A+  30,000  656,100 
Bank One Capital Trust VI, 7.20%  Aa3  81,100  2,003,981 
Barclays Bank Plc, 7.10%, Ser 3  A+  55,000  1,366,200 
Fleet Capital Trust VIII, 7.20%  A+  489,250  12,060,012 
HSBC Holdings Plc, 6.20%, Ser A  A  161,000  3,622,500 
Royal Bank of Scotland Group Plc, 5.75%,       
Ser L  A  550,900  10,924,347 
Royal Bank of Scotland Group Plc, 6.35%,       
Ser N ADR  A  25,000  556,500 
Royal Bank of Scotland Group Plc, 7.25%,       
Ser T  A  59,000  1,431,930 
Santander Finance Preferred SA,       
Unipersonal, 6.41%, Ser 1  A+  225,000  5,253,750 
USB Capital VIII, 6.35%, Ser 1  A+  179,800  4,079,662 
USB Capital X, 6.50%  A+  45,000  1,050,300 
Wachovia Preferred Funding Corp., 7.25%,       
Ser A  A  69,000  1,617,360 
Wells Fargo Capital Trust IV, 7.00%  AA-  108,100  2,705,743 
 
Electric Utilities 28.84%      154,826,397 
Duquesne Light Co., 6.50%  BB  73,650  3,259,013 
Entergy Arkansas, Inc., 6.70%  AAA  25,300  660,330 
Entergy Mississippi, Inc., 7.25%  A-  363,900  9,272,172 
FPC Capital I, 7.10%, Ser A  BBB-  884,891  21,803,714 
FPL Group Capital Trust I, 5.875%  BBB+  502,200  11,957,382 
FPL Group Capital, Inc., 7.45%, Ser E  BBB+  110,000  2,872,100 
Georgia Power Capital Trust VII, 5.875%  BBB+  250,600  6,082,062 
Georgia Power Co., 6.00%, Ser R  A  413,997  10,105,667 
HECO Capital Trust III, 6.50%  BB+  375,400  8,776,852 
Interstate Power & Light Co., 8.375%,       
Ser B  Baa2  700,000  20,510,000 
NSTAR Electric Co., 4.78%  A-  15,143  1,196,297 
PPL Electric Utilities Corp., 6.25%,       
Depositary Shares  BBB  300,000  7,181,250 
PPL Energy Supply, LLC, 7.00%  BBB  563,160  14,118,421 
Southern California Edison Co., 6.125%  BBB-  119,000  11,635,975 
Virginia Power Capital Trust, 7.375%  BBB  596,250  14,930,100 
Westar Energy, Inc., 6.10%  BBB  97,300  2,426,662 
Xcel Energy Inc., 7.60%  BBB-  320,000  8,038,400 
 
Gas Utilities 3.26%      17,507,466 
Southern Union Co., 7.55%, Ser A  BB  296,600  7,222,210 
Southwest Gas Capital II, 7.70%  BB  412,400  10,285,256 
 
Integrated Telecommunication Services 4.39%      23,573,664 
AT&T, Inc., 6.375%  A  66,000  1,649,340 
Telephone & Data Systems, Inc., 6.625%  BBB-  233,000  4,613,400 
Telephone & Data Systems, Inc., 7.60%,       
Ser A  BBB-  816,553  17,310,924 

Page 3 

John Hancock
Preferred Income Fund
Securities owned by the Fund on
April 30, 2008 (unaudited)

Investment Banking & Brokerage 11.77%      63,183,407 
Bear Stearns Capital Trust III, 7.80%  A  237,300  5,695,200 
Goldman Sachs Group, Inc., 6.20%, Ser B  A  445,000  10,453,050 
Lehman Brothers Holdings Capital Trust       
III, 6.375%, Ser K  A-  150,000  3,166,500 
Lehman Brothers Holdings, Inc., 5.94%,       
Depositary Shares, Ser C  A-  175,600  6,681,580 
Merrill Lynch Preferred Capital Trust       
III, 7.00%  A-  366,400  8,200,032 
Merrill Lynch Preferred Capital Trust       
IV, 7.12%  A-  278,752  6,277,495 
Merrill Lynch Preferred Capital Trust V,       
7.28%  A-  367,000  8,279,520 
Morgan Stanley Capital Trust III, 6.25%  A  192,400  4,146,220 
Morgan Stanley Capital Trust IV, 6.25%  A  57,000  1,216,380 
Morgan Stanley Capital Trust V, 5.75%  A1  347,000  6,832,430 
Morgan Stanley Capital Trust VI, 6.60%  A  100,000  2,235,000 
 
Life & Health Insurance 7.27%      39,036,605 
Lincoln National Capital VI, 6.75%, Ser F  A-  175,800  4,271,940 
MetLife, Inc., 6.50%, Ser B  BBB  950,500  21,890,015 
PLC Capital Trust IV, 7.25%  BBB+  224,600  5,109,650 
PLC Capital Trust V, 6.125%  BBB+  256,000  5,068,800 
Prudential Plc, 6.50%  A-  122,000  2,696,200 
 
Movies & Entertainment 4.22%      22,646,644 
Viacom, Inc., 6.85%  BBB  985,065  22,646,644 
 
Multi-Line Insurance 7.52%      40,380,607 
Aegon NV, 6.375%  A-  444,900  9,431,880 
Aegon NV, 6.50%  A-  116,100  2,482,218 
ING Groep NV 6.125%  A  61,500  1,288,425 
ING Groep NV, 6.20%  A  156,993  3,485,245 
ING Groep NV, 7.05%  A  760,100  18,234,799 
ING Groep NV, 7.20%  A  100,000  2,460,000 
ING Groep NV, 7.375%  A  120,500  2,998,040 
 
Multi-Utilities 6.66%      35,769,742 
Baltimore Gas & Electric Co., 6.99%,       
Ser 1995  Ba1  40,000  4,131,252 
BGE Capital Trust II, 6.20%  BBB-  836,825  19,707,229 
DTE Energy Trust I, 7.80%  BB+  140,400  3,543,696 
PNM Resources, Inc., 6.75%, Conv  BB-  284,500  7,800,990 
Public Service Electric & Gas Co.,       
4.18%, Ser B  BB+  7,900  586,575 
 
Oil & Gas Exploration & Production 5.71%      30,642,300 
Nexen, Inc., 7.35%  BB+  1,261,000  30,642,300 

Page 4 

John Hancock
Preferred Income Fund
Securities owned by the Fund on
April 30, 2008 (unaudited)

Other Diversified Financial Services 17.59%      94,392,117 
ABN AMRO Capital Funding Trust V, 5.90%  A  626,100  13,035,402 
ABN AMRO Capital Funding Trust VII, 6.08%  A  338,000  7,246,720 
Bank of America Corp., 6.204%,       
Depositary Shares, Ser D  A+  305,000  6,752,700 
Citigroup Capital VII, 7.125%  A  336,500  8,126,475 
Citigroup Capital VIII, 6.95%  A  658,600  15,430,998 
Citigroup Capital X, 6.10%  A  40,000  836,400 
Citigroup Capital XI, 6.00%  A  25,000  525,000 
DB Capital Funding VIII, 6.375%  A+  426,250  9,718,500 
DB Capital Trust II, 6.55%  A+  526,750  11,693,850 
JPMorgan Chase Capital X, 7.00%, Ser J  A  575,100  14,383,251 
JPMorgan Chase Capital XI, 5.875%, Ser K  A  289,700  6,642,821 
 
Real Estate Management & Development 3.92%      21,054,438 
Duke Realty Corp., 6.50%, Depositary       
Shares, Ser K  BBB  110,000  2,312,200 
Duke Realty Corp., 6.60%, Depositary       
Shares, Ser L  BBB  109,840  2,394,512 
Duke Realty Corp., 6.625%, Depositary       
Shares, Ser J  BBB  66,525  1,456,232 
Public Storage, Inc., 6.45%, Depositary       
Shares, Ser X  BBB+  25,000  528,500 
Public Storage, Inc., 6.50%, Depositary       
Shares, Ser W  BBB+  100,000  2,116,000 
Public Storage, Inc., 7.50%, Depositary       
Shares, Ser V  BBB+  497,643  12,246,994 
 
Regional Banks 5.50%      29,502,940 
KeyCorp Capital VI, 6.125%  BBB  25,900  514,115 
PFGI Capital Corp., 7.75%  A  796,000  20,472,165 
Wachovia Corp., 8.00%  A  338,500  8,516,660 
 
Reinsurance 0.55%      2,960,954 
RenaissanceRe Holdings Ltd., 6.08%,       
Ser C  BBB+  153,100  2,960,954 
 
Specialized Finance 0.96%      5,123,602 
CIT Group, Inc., 6.35%, Ser A  BBB  145,000  2,002,450 
Repsol International Capital Ltd.,       
7.45%, Ser A  BB+  123,610  3,121,152 
 
Thrifts & Mortgage Finance 0.83%      4,471,875 
Sovereign Capital Trust V, 7.75%  BB+  239  4,471,875 
 
Wireless Telecommunication Services 2.37%      12,732,576 
United States Cellular Corp., 7.50%  BBB-  582,460  12,732,576 

Page 5 

John Hancock
Preferred Income Fund
Securities owned by the Fund on
April 30, 2008 (unaudited)

  Interest  Maturity  Credit  Par value   
Issuer, description  rate  date  rating (A)  (000)  Value 
Short-term investments 4.79%        $25,700,000 
(Cost $25,700,000)           
Government U.S. Agency 4.79%          25,700,000 
Federal Home Loan Bank           
Discount Note  1.75% (Y)  05-01-08  AAA  $25,700  25,700,000 
 
Total investments (Cost $884,488,875)†   152.14%    $816,676,009 
Other assets and liabilities, net   0.04%        $196,793 
Fund preferred shares, at liquidation value   (52.18%)    ($280,071,915) 
Total net assets applicable to         
common shareholders 100.00%        $536,800,887 

The percentage shown for each investment category is the total value of that category as a percentage of the net assets applicable to common shareholders.

Page 6 

John Hancock
Preferred Income Fund
Notes to Schedule of Investments
April 30, 2008 (unaudited)

ADR American Depositary Receipt

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

(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 $13,093,437 or 2.44% of the net assets applicable to common shareholders as of April 30, 2008.

(Y) Represents current yield as of April 30, 2008.

† The cost of investments owned on April 30, 2008, including short-term investments, for Federal income tax purposes was $884,511,982. Gross unrealized appreciation and depreciation of investments aggregated $11,137,927 and $78,973,900, respectively, resulting in net unrealized depreciation of $67,835,973.

Country concentration1   
United States  86.33% 
Netherlands  4.94% 
Canada  3.93% 
United Kingdom  3.41% 
Others (individually less than 1%)  1.39% 
Totals  100.00% 

1 As a percentage of the Fund's total investments on April 30, 2008.

Notes to Schedule of Investments - Page 7 

John Hancock
Preferred Income Fund
Financial futures contracts
April 30, 2008 (unaudited)

 
    Number of      Unrealized 
Open contracts    contracts  Position  Expiration  depreciation 
 
U.S. 10-year Treasury Note  1050  Short  Jun 2008  $1,606,962 

 
Financial futures contracts - Page 8 

John Hancock
Preferred Income Fund
Interest rate swap contracts
April 30, 2008 (unaudited)

    Rate type      Unrealized 
Notional  Payments made  Payments received  Termination    appreciation 
amount                 by Fund  by Fund  date  Counterparty  (depreciation) 
         $70,000,000                   2.56% (a)  3-month LIBOR  Jun 2008  Morgan Stanley  $38,427 
           70,000,000                   4.37% (a)  3-month LIBOR  Nov 2008  Bank of America  (1,865,184) 
           70,000,000                   3.79% (a)  3-month LIBOR  Jun 2011  Morgan Stanley  (868,897) 
Total          ($2,695,654) 

(a) Fixed rate

Interest rate swap contracts - Page 9 

Notes to portfolio of investments

Security valuation

The net asset value of common shares of the Fund is determined daily as of the close of the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. Short-term debt investments that have a remaining maturity of 60 days or less are valued at amortized cost, and thereafter assume a constant amortization to maturity of any discount or premium, which approximates market value. All other securities held by the Fund are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) as of the close of business on the principal securities exchange (domestic or foreign) on which they trade or, lacking any sales, at the closing bid price. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Securities for which there are no such quotations, principally debt securities, are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied and electronic data processing techniques, which take 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.

Other assets and securities for which no such quotations are readily available are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. Generally, trading in non- U.S. securities is substantially completed each day at various times prior to the close of trading on the NYSE. The values of such securities used in computing the net asset value of the Fund’s shares are generally determined as of such times. Occasionally, significant events that affect the values of such securities may occur between the times at which such values are generally determined and the close of the NYSE. Upon such an occurrence, these securities will be valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees.

Futures

The Fund may purchase and sell financial futures contracts and options on those contracts. The Fund invests in contracts based on financial instruments such as U.S. Treasury Bonds or Notes or on securities indices such as the Standard & Poor’s 500 Index, in order to hedge against a decline in the value of securities owned by the Fund.

Initial margin deposits required upon entering into futures contracts are satisfied by the delivery of specific securities or cash as collateral to the broker (the Fund’s agent in acquiring the futures position). If the position is closed out by an opposite position prior to the settlement date of the futures contract, a final determination of variation margin is made, cash is required to be paid to or released by the broker and the Fund realizes a gain or loss.

When the Fund sells a futures contract based on a financial instrument, the Fund becomes obligated to deliver that kind of instrument at an agreed upon date for a specified price. The Fund realizes a gain or loss depending on whether the price of an offsetting purchase is less or more than the price of the initial sale or on whether the price of an offsetting sale is more or less than the price of the initial purchase. The Fund could be exposed to risks if it could not close out futures positions because of an illiquid secondary market or the inability of counterparties to meet the terms of their contracts. Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade.

Swap contracts

The Fund may enter into swap transactions in order to hedge the value of the Fund’s portfolio against interest rate fluctuations or to enhance the Fund’s income or to manage the Fund’s exposure to credit or market risk.

Interest rate swaps represent an agreement between two counterparties to exchange cash flows based on the difference in the two interest rates, applied to the notional principal amount for a specified period. 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 receivable or payable under the swap contracts on a periodic basis.

Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a “guarantor” receiving a periodic payment that is a fixed percentage applied to a notional principal amount. In return the party agrees to purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. The Fund may enter into credit default swaps in which either it or its counterparty act as guarantors. By acting as the guarantor of a swap, the Fund assumes the market and credit risk of the underlying instrument including liquidity and loss of value.

The Fund records changes in the value of the swap as unrealized gains or losses on swap contracts. Net periodic payments accrued but not yet received (paid) are included in change in the unrealized appreciation/depreciation. Accrued interest income and interest expense on the swap contracts are recorded as realized gain (loss).

Swap contracts are subject to risks related to the counterparty’s ability to perform under the contract, and may decline in value if the counterparty’s creditworthiness deteriorates. The risks may arise from unanticipated movement in interest rates. The Fund may also suffer losses if it is unable to terminate outstanding swap contracts or reduce its exposure through offsetting transactions.

Notes to Schedule of Investments - Page 10 


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 19, 2008

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 19, 2008

By: /s/ Charles A. Rizzo
-------------------------------------
Charles A. Rizzo
Chief Financial Officer

Date: June 19, 2008