Company John Hancock Preferred Income Fund III

John Hancock Preferred Income Fund III (the Fund) is a closed-end, diversified management investment company. The Fund's primary investment objective is to provide a high level of current income, consistent with preservation of capital. The Fund's secondary investment objective is to provide growth of capital to the extent consistent with its primary investment objective. The Fund invests at least 80% of its assets (net assets plus borrowings for investment purposes) in preferred stocks and other preferred securities, including convertible preferred securities. The Fund may invest in corporate bonds, common stock, securities issued by the United States (U.S.) government or its related agencies, real estate investment trusts and money market instruments. It may invest up to 20% of its total assets in securities of corporate and governmental issuers located outside the U.S. that are traded or denominated in U.S. dollars. Its investment advisor is John Hancock Investment Management LLC.