John Hancock Preferred Income Fund III (the Fund) is a diversified, closed-end management investment company. Its primary objective is to provide a high level of current income, consistent with preservation of capital. Its secondary objective is to provide growth of capital to the extent consistent with its primary objective. It invests in a portfolio of securities that may be undervalued relative to similar securities in the marketplace. The Fund invests at least 80% of its assets in preferred stocks and other preferred securities, including convertible preferred securities; 25% of its total assets in the industries comprising the utilities sector, and 80% of its total assets in preferred securities or other fixed-income securities, which are rated investment grade or higher by Moody’s Investors Service or Standard & Poor’s at the time of investment. Its investment advisor is John Hancock Advisers, LLC. Its sub-advisor is MFC Global Investment Management (U.S.), LLC.