John Hancock
Preferred Income Fund II
Quarterly portfolio holdings 10/31/2022
| Fund’s investments |
As of 10-31-22 (unaudited)
| Shares | Value | ||||
| Preferred securities (A) 87.3% (54.5% of Total investments) | $292,748,809 | ||||
| (Cost $346,298,744) | |||||
| Communication services 6.4% | 21,542,233 | ||||
| Diversified telecommunication services 1.2% | |||||
| Qwest Corp., 6.750% | 220,000 | 3,960,000 | |||
| Media 0.4% | |||||
| Paramount Global, 5.750% | 50,000 | 1,452,500 | |||
| Wireless telecommunication services 4.8% | |||||
| Telephone & Data Systems, Inc., 6.000% | 222,100 | 3,931,170 | |||
| Telephone & Data Systems, Inc., 6.625% | 211,250 | 4,244,013 | |||
| U.S. Cellular Corp., 5.500% | 105,000 | 1,792,350 | |||
| U.S. Cellular Corp., 5.500% | 110,000 | 1,881,000 | |||
| U.S. Cellular Corp., 6.250% | 220,000 | 4,281,200 | |||
| Consumer discretionary 1.2% | 3,934,420 | ||||
| Internet and direct marketing retail 1.2% | |||||
| Qurate Retail, Inc., 8.000% | 73,500 | 3,544,170 | |||
| QVC, Inc., 6.250% (B) | 25,000 | 390,250 | |||
| Energy 2.6% | 8,724,000 | ||||
| Oil, gas and consumable fuels 2.6% | |||||
| Enbridge, Inc., 6.375% (6.375% to 4-15-23, then 3 month LIBOR + 3.593%) (B) | 210,000 | 4,987,500 | |||
| NuStar Logistics LP, 10.813% (3 month LIBOR + 6.734%) (B)(C) | 150,000 | 3,736,500 | |||
| Financials 43.3% | 145,132,047 | ||||
| Banks 22.1% | |||||
| Bank of America Corp., 6.000% (B) | 108,575 | 2,584,085 | |||
| Bank of America Corp., 6.450% (6.450% to 12-15-66, then 3 month LIBOR + 1.327%) (B) | 110,000 | 2,794,000 | |||
| Bank of America Corp., 7.250% (B) | 7,000 | 8,123,220 | |||
| Citigroup Capital XIII, 10.785% (3 month LIBOR + 6.370%) (C) | 265,000 | 7,274,250 | |||
| Citigroup, Inc., 7.125% (7.125% to 9-30-23, then 3 month LIBOR + 4.040%) (B) | 300,564 | 7,502,077 | |||
| Fifth Third Bancorp, 6.000% (B) | 150,000 | 3,276,000 | |||
| First Republic Bank, 4.000% (B) | 185,000 | 2,776,850 | |||
| First Republic Bank, 4.500% (B) | 84,700 | 1,426,348 | |||
| First Republic Bank, 4.700% (B) | 147,325 | 2,588,500 | |||
| Fulton Financial Corp., 5.125% (B) | 113,025 | 2,269,542 | |||
| PacWest Bancorp, 7.750% (7.750% to 9-1-27, then 5 Year CMT + 4.820%) | 227,825 | 5,654,617 | |||
| Pinnacle Financial Partners, Inc., 6.750% | 140,000 | 3,409,000 | |||
| Synovus Financial Corp., 6.300% (6.300% to 6-21-23, then 3 month LIBOR + 3.352%) (B) | 164,500 | 3,849,300 | |||
| The PNC Financial Services Group, Inc., 6.850% (3 month LIBOR + 4.068%) (B)(C) | 109,000 | 2,774,050 | |||
| Wells Fargo & Company, 6.625% (6.625% to 3-15-24, then 3 month LIBOR + 3.690%) (B) | 269,225 | 6,733,317 | |||
| Wells Fargo & Company, 7.500% (B) | 7,500 | 8,741,475 | |||
| WesBanco, Inc., 6.750% (6.750% to 11-15-25, then 5 Year CMT + 6.557%) | 93,000 | 2,330,580 | |||
| Capital markets 6.6% | |||||
| Brookfield Finance, Inc., 4.625% (B) | 95,000 | 1,594,100 | |||
| Morgan Stanley, 6.375% (6.375% to 10-15-24, then 3 month LIBOR + 3.708%) (B) | 125,000 | 3,036,250 | |||
| Morgan Stanley, 6.500% (B) | 208,450 | 5,169,560 | |||
| Morgan Stanley, 6.875% (6.875% to 1-15-24, then 3 month LIBOR + 3.940%) (B) | 86,000 | 2,151,720 | |||
| 2 | JOHN HANCOCK PREFERRED INCOME FUND II | QUARTERLY REPORT | SEE NOTES TO FUND’S INVESTMENTS |
| Shares | Value | ||||
| Financials (continued) | |||||
| Capital markets (continued) | |||||
| Morgan Stanley, 7.125% (7.125% to 10-15-23, then 3 month LIBOR + 4.320%) (B) | 405,472 | $10,157,074 | |||
| Consumer finance 1.1% | |||||
| Navient Corp., 6.000% (B)(D) | 200,341 | 3,694,288 | |||
| Insurance 13.4% | |||||
| AEGON Funding Company LLC, 5.100% (B) | 267,925 | 5,224,538 | |||
| American Equity Investment Life Holding Company, 6.625% (6.625% to 9-1-25, then 5 Year CMT + 6.297%) (B) | 131,750 | 3,051,330 | |||
| American Financial Group, Inc., 5.125% (B) | 123,850 | 2,459,661 | |||
| American International Group, Inc., 5.850% (B) | 207,000 | 4,554,000 | |||
| Athene Holding, Ltd., Series A, 6.350% (6.350% to 6-30-29, then 3 month LIBOR + 4.253%) (B) | 270,000 | 6,428,700 | |||
| Brighthouse Financial, Inc., 6.600% (B) | 306,687 | 6,897,391 | |||
| Reinsurance Group of America, Inc., 7.125% (7.125% to 10-15-27, then 5 Year CMT + 3.456%) (B) | 282,950 | 7,145,902 | |||
| RenaissanceRe Holdings, Ltd., 4.200% (B)(D) | 169,000 | 2,817,230 | |||
| The Phoenix Companies, Inc., 7.450% | 216,500 | 3,306,217 | |||
| Unum Group, 6.250% (B) | 137,500 | 3,092,375 | |||
| Thrifts and mortgage finance 0.1% | |||||
| Federal National Mortgage Association, Series S, 8.250% (E) | 75,000 | 244,500 | |||
| Health care 1.6% | 5,312,660 | ||||
| Health care equipment and supplies 1.6% | |||||
| Becton, Dickinson and Company, 6.000% (B) | 109,000 | 5,312,660 | |||
| Industrials 1.1% | 3,713,175 | ||||
| Trading companies and distributors 1.1% | |||||
| WESCO International, Inc., 10.625% (10.625% to 6-22-25, then 5 Year CMT + 10.325%) | 137,525 | 3,713,175 | |||
| Real estate 3.8% | 12,873,205 | ||||
| Equity real estate investment trusts 3.8% | |||||
| Diversified Healthcare Trust, 5.625% (B) | 657,520 | 8,025,029 | |||
| Pebblebrook Hotel Trust, 6.375% | 160,450 | 2,926,608 | |||
| Vornado Realty Trust, 5.400% | 116,600 | 1,921,568 | |||
| Utilities 27.3% | 91,517,069 | ||||
| Electric utilities 5.2% | |||||
| Duke Energy Corp., 5.750% (B) | 160,000 | 3,780,800 | |||
| NextEra Energy, Inc., 6.219% (B) | 142,250 | 6,863,563 | |||
| NextEra Energy, Inc., 6.926% (B) | 90,800 | 4,222,200 | |||
| NSTAR Electric Company, 4.780% (B) | 15,143 | 1,408,299 | |||
| SCE Trust III, 5.750% (5.750% to 3-15-24, then 3 month LIBOR + 2.990%) (B) | 64,650 | 1,250,331 | |||
| Gas utilities 2.6% | |||||
| South Jersey Industries, Inc., 5.625% (B) | 188,875 | 3,307,201 | |||
| Spire, Inc., 7.500% | 26,000 | 1,319,760 | |||
| UGI Corp., 7.250% | 49,500 | 4,201,560 | |||
| Independent power and renewable electricity producers 3.5% | |||||
| The AES Corp., 6.875% (B) | 119,000 | 11,722,690 | |||
| Multi-utilities 16.0% | |||||
| Algonquin Power & Utilities Corp., 6.200% (6.200% to 7-1-24, then 3 month LIBOR + 4.010%) (B)(D) | 290,000 | 6,574,300 | |||
| Algonquin Power & Utilities Corp., 6.875% (6.875% to 10-17-23, then 3 month LIBOR + 3.677%) (B) | 420,050 | 9,430,123 | |||
| SEE NOTES TO FUND’S INVESTMENTS | QUARTERLY REPORT | JOHN HANCOCK PREFERRED INCOME FUND II | 3 |
| Shares | Value | ||||
| Utilities (continued) | |||||
| Multi-utilities (continued) | |||||
| CMS Energy Corp., 5.625% (B) | 187,515 | $4,055,949 | |||
| CMS Energy Corp., 5.875% (B) | 35,000 | 762,650 | |||
| DTE Energy Company, Series E, 5.250% (B) | 160,000 | 3,436,800 | |||
| Integrys Holding, Inc., 6.000% (6.000% to 8-1-23, then 3 month LIBOR + 3.220%) (B)(D) | 237,872 | 5,471,056 | |||
| NiSource, Inc., 6.500% (6.500% to 3-15-24, then 5 Year CMT + 3.632%) (B)(D) | 338,000 | 8,351,980 | |||
| NiSource, Inc., 7.750% (B)(D) | 93,100 | 9,493,407 | |||
| Sempra Energy, 5.750% (B) | 270,000 | 5,864,400 | |||
| Common stocks 5.1% (3.1% of Total investments) | $16,962,783 | ||||
| (Cost $23,215,711) | |||||
| Communication services 0.3% | 1,104,000 | ||||
| Diversified telecommunication services 0.3% | |||||
| Lumen Technologies, Inc. (B) | 150,000 | 1,104,000 | |||
| Energy 2.8% | 9,275,815 | ||||
| Oil, gas and consumable fuels 2.8% | |||||
| BP PLC, ADR (B)(D) | 140,000 | 4,659,200 | |||
| Equitrans Midstream Corp. (B) | 198,446 | 1,670,915 | |||
| The Williams Companies, Inc. (B) | 90,000 | 2,945,700 | |||
| Utilities 2.0% | 6,582,968 | ||||
| Multi-utilities 2.0% | |||||
| Algonquin Power & Utilities Corp. (B) | 174,800 | 6,582,968 | |||
| Rate (%) | Maturity date | Par value^ | Value | ||
| Corporate bonds 63.0% (39.3% of Total investments) | $211,285,741 | ||||
| (Cost $244,920,436) | |||||
| Communication services 2.7% | 9,230,468 | ||||
| Media 1.7% | |||||
| Paramount Global (6.375% to 3-30-27, then 5 Year CMT + 3.999%) | 6.375 | 03-30-62 | 6,700,000 | 5,664,308 | |
| Wireless telecommunication services 1.0% | |||||
| SoftBank Group Corp. (6.875% to 7-19-27, then 5 Year ICE Swap Rate + 4.854%) (B)(F) | 6.875 | 07-19-27 | 4,572,000 | 3,566,160 | |
| Consumer discretionary 2.4% | 8,239,764 | ||||
| Automobiles 2.4% | |||||
| General Motors Financial Company, Inc. (5.700% to 9-30-30, then 5 Year CMT + 4.997%) (F) | 5.700 | 09-30-30 | 2,500,000 | 2,125,000 | |
| General Motors Financial Company, Inc. (6.500% to 9-30-28, then 3 month LIBOR + 3.436%) (F) | 6.500 | 09-30-28 | 7,239,000 | 6,114,764 | |
| Consumer staples 0.2% | 661,625 | ||||
| Food products 0.2% | |||||
| Land O’ Lakes, Inc. (B)(F)(G) | 8.000 | 07-16-25 | 670,000 | 661,625 | |
| Energy 7.4% | 24,742,009 | ||||
| Oil, gas and consumable fuels 7.4% | |||||
| DCP Midstream LP (7.375% to 12-15-22, then 3 month LIBOR + 5.148%) (F) | 7.375 | 12-15-22 | 5,297,000 | 5,217,839 | |
| Enbridge, Inc. (7.375% to 10-15-27, then 5 Year CMT + 3.708%) (B)(D) | 7.375 | 01-15-83 | 4,193,000 | 3,956,795 | |
| Energy Transfer LP (3 month LIBOR + 3.018%) (B)(C) | 5.800 | 11-01-66 | 8,050,000 | 6,017,375 | |
| Energy Transfer LP (6.625% to 2-15-28, then 3 month LIBOR + 4.155%) (F) | 6.625 | 02-15-28 | 6,500,000 | 4,655,625 | |
| MPLX LP (6.875% to 2-15-23, then 3 month LIBOR + 4.652%) (B)(D)(F) | 6.875 | 02-15-23 | 3,000,000 | 2,925,000 | |
| Transcanada Trust (5.600% to 12-7-31, then 5 Year CMT + 3.986%) (B)(D) | 5.600 | 03-07-82 | 2,300,000 | 1,969,375 | |
| 4 | JOHN HANCOCK PREFERRED INCOME FUND II | QUARTERLY REPORT | SEE NOTES TO FUND’S INVESTMENTS |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Financials 40.8% | $136,687,615 | ||||
| Banks 27.9% | |||||
| Bank of America Corp. (5.875% to 3-15-28, then 3 month LIBOR + 2.931%) (B)(D)(F) | 5.875 | 03-15-28 | 6,096,000 | 5,247,132 | |
| Bank of America Corp. (6.125% to 4-27-27, then 5 Year CMT + 3.231%) (B)(D)(F) | 6.125 | 04-27-27 | 5,750,000 | 5,433,750 | |
| Bank of America Corp. (6.500% to 10-23-24, then 3 month LIBOR + 4.174%) (B)(F) | 6.500 | 10-23-24 | 1,636,000 | 1,623,730 | |
| Barclays PLC (7.750% to 9-15-23, then 5 Year U.S. Swap Rate + 4.842%) (B)(F) | 7.750 | 09-15-23 | 1,102,000 | 1,037,258 | |
| Barclays PLC (8.000% to 6-15-24, then 5 Year CMT + 5.672%) (B)(D)(F) | 8.000 | 06-15-24 | 1,935,000 | 1,820,734 | |
| Barclays PLC (8.000% to 3-15-29, then 5 Year CMT + 5.431%) (B)(F) | 8.000 | 03-15-29 | 2,240,000 | 2,006,713 | |
| BNP Paribas SA (7.750% to 8-16-29, then 5 Year CMT + 4.899%) (B)(F)(G) | 7.750 | 08-16-29 | 2,450,000 | 2,309,946 | |
| Citizens Financial Group, Inc. (6.375% to 4-6-24, then 3 month LIBOR + 3.157%) (B)(F) | 6.375 | 04-06-24 | 6,000,000 | 5,470,522 | |
| CoBank ACB (4.250% to 1-1-27, then 5 Year CMT + 3.049%) (B)(D)(F) | 4.250 | 01-01-27 | 5,500,000 | 4,617,007 | |
| CoBank ACB (6.450% to 10-1-27, then 5 Year CMT + 3.487%) (B)(D)(F) | 6.450 | 10-01-27 | 4,250,000 | 4,122,530 | |
| Comerica, Inc. (5.625% to 7-1-25, then 5 Year CMT + 5.291%) (F) | 5.625 | 07-01-25 | 4,250,000 | 4,128,025 | |
| Huntington Bancshares, Inc. (5.625% to 7-15-30, then 10 Year CMT + 4.945%) (F) | 5.625 | 07-15-30 | 1,500,000 | 1,363,270 | |
| JPMorgan Chase & Co. (4.600% to 2-1-25, then SOFR + 3.125%) (B)(D)(F) | 4.600 | 02-01-25 | 6,500,000 | 5,800,600 | |
| JPMorgan Chase & Co. (6.750% to 2-1-24, then 3 month LIBOR + 3.780%) (B)(D)(F) | 6.750 | 02-01-24 | 667,000 | 667,000 | |
| Lloyds Banking Group PLC (7.500% to 6-27-24, then 5 Year U.S. Swap Rate + 4.760%) (F) | 7.500 | 06-27-24 | 6,000,000 | 5,720,843 | |
| M&T Bank Corp. (3.500% to 9-1-26, then 5 Year CMT + 2.679%) (F) | 3.500 | 09-01-26 | 7,200,000 | 5,334,331 | |
| SVB Financial Group (4.100% to 2-15-31, then 10 Year CMT + 3.064%) (F) | 4.100 | 02-15-31 | 4,500,000 | 2,766,306 | |
| SVB Financial Group (4.700% to 11-15-31, then 10 Year CMT + 3.064%) (F) | 4.700 | 11-15-31 | 6,700,000 | 4,472,250 | |
| The Bank of Nova Scotia (8.625% to 10-27-27, then 5 Year CMT + 4.389%) | 8.625 | 10-27-82 | 2,490,000 | 2,503,315 | |
| The PNC Financial Services Group, Inc. (3.400% to 9-15-26, then 5 Year CMT + 2.595%) (B)(D)(F) | 3.400 | 09-15-26 | 2,800,000 | 2,089,500 | |
| The PNC Financial Services Group, Inc. (6.000% to 5-15-27, then 5 Year CMT + 3.000%) (B)(D)(F) | 6.000 | 05-15-27 | 5,965,000 | 5,532,538 | |
| The PNC Financial Services Group, Inc. (6.200% to 9-15-27, then 5 Year CMT + 3.238%) (B)(D)(F) | 6.200 | 09-15-27 | 5,631,000 | 5,333,683 | |
| The PNC Financial Services Group, Inc. (3 month LIBOR + 3.678%) (C)(F) | 6.460 | 02-01-23 | 1,330,000 | 1,326,647 | |
| The Toronto-Dominion Bank (8.125% to 10-31-27, then 5 Year CMT + 4.075%) (B) | 8.125 | 10-31-82 | 6,617,000 | 6,691,441 | |
| U.S. Bancorp (3.700% to 1-15-27, then 5 Year CMT + 2.541%) (B)(D)(F) | 3.700 | 01-15-27 | 5,735,000 | 4,458,963 | |
| Wells Fargo & Company (5.900% to 6-15-24, then 3 month LIBOR + 3.110%) (B)(D)(F) | 5.900 | 06-15-24 | 2,000,000 | 1,813,750 | |
| Capital markets 3.7% | |||||
| The Bank of New York Mellon Corp. (3.750% to 12-20-26, then 5 Year CMT + 2.630%) (B)(D)(F) | 3.750 | 12-20-26 | 2,550,000 | 1,963,959 | |
| The Charles Schwab Corp. (4.000% to 6-1-26, then 5 Year CMT + 3.168%) (B)(D)(F) | 4.000 | 06-01-26 | 4,000,000 | 3,288,600 | |
| The Charles Schwab Corp. (4.000% to 12-1-30, then 10 Year CMT + 3.079%) (B)(D)(F) | 4.000 | 12-01-30 | 2,700,000 | 2,005,425 | |
| The Charles Schwab Corp. (5.000% to 6-1-27, then 5 Year CMT + 3.256%) (B)(D)(F) | 5.000 | 06-01-27 | 2,475,000 | 2,196,563 | |
| The Charles Schwab Corp. (5.375% to 6-1-25, then 5 Year CMT + 4.971%) (B)(D)(F) | 5.375 | 06-01-25 | 3,100,000 | 3,026,375 | |
| Consumer finance 2.3% | |||||
| American Express Company (3.550% to 9-15-26, then 5 Year CMT + 2.854%) (B)(D)(F) | 3.550 | 09-15-26 | 5,500,000 | 4,241,875 | |
| Discover Financial Services (6.125% to 6-23-25, then 5 Year CMT + 5.783%) (F) | 6.125 | 06-23-25 | 3,400,000 | 3,266,379 | |
| Diversified financial services 0.8% | |||||
| Enstar Finance LLC (5.750% to 9-1-25, then 5 Year CMT + 5.468%) (B)(D) | 5.750 | 09-01-40 | 3,000,000 | 2,659,146 | |
| SEE NOTES TO FUND’S INVESTMENTS | QUARTERLY REPORT | JOHN HANCOCK PREFERRED INCOME FUND II | 5 |
| Rate (%) | Maturity date | Par value^ | Value | ||
| Financials (continued) | |||||
| Insurance 6.1% | |||||
| Markel Corp. (6.000% to 6-1-25, then 5 Year CMT + 5.662%) (F) | 6.000 | 06-01-25 | 4,000,000 | $3,829,783 | |
| MetLife, Inc. (5.875% to 3-15-28, then 3 month LIBOR + 2.959%) (B)(D)(F) | 5.875 | 03-15-28 | 5,277,000 | 4,733,688 | |
| Prudential Financial, Inc. (5.125% to 11-28-31, then 5 Year CMT + 3.162%) (B) | 5.125 | 03-01-52 | 2,224,000 | 1,896,338 | |
| SBL Holdings, Inc. (6.500% to 11-13-26, then 5 Year CMT + 5.620%) (F)(G) | 6.500 | 11-13-26 | 5,750,000 | 4,341,250 | |
| SBL Holdings, Inc. (7.000% to 5-13-25, then 5 Year CMT + 5.580%) (B)(F)(G) | 7.000 | 05-13-25 | 6,890,000 | 5,546,450 | |
| Utilities 9.5% | 31,724,260 | ||||
| Electric utilities 5.8% | |||||
| Duke Energy Corp. (3.250% to 1-15-27, then 5 Year CMT + 2.321%) (B)(D) | 3.250 | 01-15-82 | 3,350,000 | 2,345,428 | |
| Edison International (5.000% to 12-15-26, then 5 Year CMT + 3.901%) (F) | 5.000 | 12-15-26 | 2,790,000 | 2,259,900 | |
| Edison International (5.375% to 3-15-26, then 5 Year CMT + 4.698%) (F) | 5.375 | 03-15-26 | 7,500,000 | 6,119,250 | |
| Emera, Inc. (6.750% to 6-15-26, then 3 month LIBOR + 5.440% to 6-15-46, then 3 month LIBOR + 6.190%) (B)(D) | 6.750 | 06-15-76 | 2,490,000 | 2,320,984 | |
| NextEra Energy Capital Holdings, Inc. (5.650% to 5-1-29, then 3 month LIBOR + 3.156%) (B) | 5.650 | 05-01-79 | 5,500,000 | 4,646,561 | |
| The Southern Company (3.750% to 9-15-26, then 5 Year CMT + 2.915%) (B)(D) | 3.750 | 09-15-51 | 2,000,000 | 1,585,191 | |
| Independent power and renewable electricity producers 2.4% | |||||
| Vistra Corp. (7.000% to 12-15-26, then 5 Year CMT + 5.740%) (F)(G) | 7.000 | 12-15-26 | 2,440,000 | 2,158,436 | |
| Vistra Corp. (8.000% to 10-15-26, then 5 Year CMT + 6.930%) (F)(G) | 8.000 | 10-15-26 | 6,131,000 | 5,824,450 | |
| Multi-utilities 1.3% | |||||
| CenterPoint Energy, Inc. (6.125% to 9-1-23, then 3 month LIBOR + 3.270%) (F) | 6.125 | 09-01-23 | 342,000 | 321,201 | |
| CMS Energy Corp. (4.750% to 3-1-30, then 5 Year CMT + 4.116%) (B)(D) | 4.750 | 06-01-50 | 3,500,000 | 2,901,924 | |
| Dominion Energy, Inc. (4.350% to 1-15-27, then 5 Year CMT + 3.195%) (F) | 4.350 | 01-15-27 | 1,500,000 | 1,240,935 | |
| Capital preferred securities (H) 2.8% (1.8% of Total investments) | $9,497,917 | ||||
| (Cost $10,678,500) | |||||
| Financials 1.2% | 4,084,473 | ||||
| Insurance 1.2% | |||||
| MetLife Capital Trust IV (7.875% to 12-15-37, then 3 month LIBOR + 3.960%) (B)(D)(G) | 7.875 | 12-15-37 | 3,900,000 | 4,084,473 | |
| Utilities 1.6% | 5,413,444 | ||||
| Multi-utilities 1.6% | |||||
| Dominion Resources Capital Trust III (B)(D) | 8.400 | 01-15-31 | 5,000,000 | 5,413,444 | |
| Yield (%) | Shares | Value | |||
| Short-term investments 2.0% (1.3% of Total investments) | $6,761,799 | ||||
| (Cost $6,762,526) | |||||
| Short-term funds 2.0% | 6,761,799 | ||||
| John Hancock Collateral Trust (I) | 3.1986(J) | 676,789 | 6,761,799 | ||
| Total investments (Cost $631,875,917) 160.2% | $537,257,049 | ||||
| Other assets and liabilities, net (60.2%) | (201,892,516) | ||||
| Total net assets 100.0% | $335,364,533 | ||||
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund unless otherwise indicated. | |
| ^All par values are denominated in U.S. dollars unless otherwise indicated. | |
| Security Abbreviations and Legend | |
| ADR | American Depositary Receipt |
| CMT | Constant Maturity Treasury |
| ICE | Intercontinental Exchange |
| LIBOR | London Interbank Offered Rate |
| SOFR | Secured Overnight Financing Rate |
| (A) | Includes preferred stocks and hybrid securities with characteristics of both equity and debt that pay dividends on a periodic basis. |
| 6 | JOHN HANCOCK PREFERRED INCOME FUND II | QUARTERLY REPORT | SEE NOTES TO FUND’S INVESTMENTS |
| (B) | All or a portion of this security is pledged as collateral pursuant to the Credit Facility Agreement. Total collateral value at 10-31-22 was $369,734,760. A portion of the securities pledged as collateral were loaned pursuant to the Credit Facility Agreement. The value of securities on loan amounted to $138,217,726. |
| (C) | Variable rate obligation. The coupon rate shown represents the rate at period end. |
| (D) | All or a portion of this security is on loan as of 10-31-22, and is a component of the fund’s leverage under the Credit Facility Agreement. |
| (E) | Non-income producing security. |
| (F) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. |
| (G) | These securities are 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. |
| (H) | Includes hybrid securities with characteristics of both equity and debt that trade with, and pay, interest income. |
| (I) | Investment is an affiliate of the fund, the advisor and/or subadvisor. |
| (J) | The rate shown is the annualized seven-day yield as of 10-31-22. |
The fund had the following country composition as a percentage of total investments on 10-31-22:
| United States | 85.7% |
| Canada | 8.6% |
| United Kingdom | 2.9% |
| Bermuda | 1.7% |
| Other countries | 1.1% |
| TOTAL | 100.0% |
| SEE NOTES TO FUND’S INVESTMENTS | QUARTERLY REPORT | JOHN HANCOCK PREFERRED INCOME FUND II | 7 |
DERIVATIVES
FUTURES
| Open contracts | Number of contracts | Position | Expiration date | Notional basis^ | Notional value^ | Unrealized appreciation (depreciation) |
| 10-Year U.S. Treasury Note Futures | 205 | Short | Dec 2022 | $(24,162,401) | $(22,671,719) | $1,490,682 |
| $1,490,682 |
^ Notional basis refers to the contractual amount agreed upon at inception of open contracts; notional value represents the current value of the open contract.
| 8 | JOHN HANCOCK PREFERRED INCOME FUND II | QUARTERLY REPORT | SEE NOTES TO FUND’S INVESTMENTS |
| Notes to Fund’s investments (unaudited) |
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the Advisor’s Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day. Debt obligations are typically valued based on evaluated prices provided by an independent pricing vendor. Independent pricing vendors utilize matrix pricing, which takes 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, as well as broker supplied prices. Futures contracts whose settlement prices are determined as of the close of the NYSE are typically valued based on the settlement price while other futures contracts are typically valued at the last traded price on the exchange on which they trade.
In certain instances, the Pricing Committee of the Advisor may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the Pricing Committee following procedures established by the Advisor and adopted by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Advisor’s assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2022, by major security category or type:
| Total value at 10-31-22 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
| Investments in securities: | ||||
| Assets | ||||
| Preferred securities | ||||
| Communication services | $21,542,233 | $21,542,233 | — | — |
| Consumer discretionary | 3,934,420 | 3,934,420 | — | — |
| Energy | 8,724,000 | 8,724,000 | — | — |
| Financials | 145,132,047 | 134,679,928 | $10,452,119 | — |
| Health care | 5,312,660 | 5,312,660 | — | — |
| Industrials | 3,713,175 | 3,713,175 | — | — |
| Real estate | 12,873,205 | 12,873,205 | — | — |
| Utilities | 91,517,069 | 83,317,954 | 8,199,115 | — |
| Common stocks | 16,962,783 | 16,962,783 | — | — |
| Corporate bonds | 211,285,741 | — | 211,285,741 | — |
| Capital preferred securities | 9,497,917 | — | 9,497,917 | — |
| Short-term investments | 6,761,799 | 6,761,799 | — | — |
| Total investments in securities | $537,257,049 | $297,822,157 | $239,434,892 | — |
| Derivatives: | ||||
| Assets | ||||
| Futures | $1,490,682 | $1,490,682 | — | — |
| | | 9 |
Investment in affiliated underlying funds. The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
| Dividends and distributions | |||||||||
| Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value |
| John Hancock Collateral Trust | 676,789 | — | $53,891,732 | $(47,127,674) | $(1,532) | $(727) | $66,744 | — | $6,761,799 |
For additional information on the fund’s significant accounting policies and risks, please refer to the fund’s most recent semiannual or annual shareholder report and prospectus.
| 10 | | |