John Hancock

Preferred Income Fund II

	As of 10-31-16 (unaudited)
																						Shares						Value
	Preferred securities (a) 134.8% (89.2% of Total investments)																											$623,768,847
	(Cost $599,654,678)
	Consumer staples 3.1%																											14,365,008
	Food and staples retailing 3.1%
	Ocean Spray Cranberries, Inc., Series A, 6.250% (S)																					160,000						14,365,008
	Energy 6.1%																											28,013,689
	Oil, gas and consumable fuels 6.1%
	Kinder Morgan, Inc., 9.750%																					608,332						28,013,689
	Financials 50.8%																											235,034,421
	Banks 31.3%
	Bank of America Corp., 6.500%																					180,000						4,840,199
	Bank of America Corp., 6.625%																					20,000						545,400
	Barclays Bank PLC, Series 3, 7.100%																					365,000						9,413,350
	Barclays Bank PLC, Series 5, 8.125%																					340,000						8,853,600
	BB&T Corp., 5.200% (Z)																					330,000						8,537,100
	BB&T Corp., 5.625% (Z)																					450,000						11,610,000
	Citigroup Capital XIII, 7.257% (P) (Z)																					55,000						1,430,550
	Citigroup, Inc., 5.800%																					10,000						253,100
	Citigroup, Inc., 6.875% (Z)																					60,000						1,622,400
	Citigroup, Inc. (6.875% to 11-15-23, then 3 month LIBOR + 4.130%)																					242,253						6,950,239
	Citigroup, Inc. (7.125% to 9-30-23, then 3 month LIBOR + 4.040%)																					155,000						4,420,600
	JPMorgan Chase & Co., 5.450% (Z)																					60,000						1,545,600
	JPMorgan Chase & Co., 5.500% (Z)																					77,661						1,974,143
	JPMorgan Chase & Co., 6.100% (Z)																					276,500						7,377,020
	JPMorgan Chase & Co., 6.125% (Z)																					501,419						13,468,114
	JPMorgan Chase & Co., 6.300% (Z)																					30,000						806,100
	Royal Bank of Scotland Group PLC, Series L, 5.750%																					465,000						11,694,750
	The PNC Financial Services Group, Inc., 5.375% (Z)																					70,000						1,777,300
	The PNC Financial Services Group, Inc. (6.125% to 5-1-22, then 3 month LIBOR + 4.067%) (Z)																					145,000						4,089,000
	U.S. Bancorp (6.000% to 4-15-17, then 3 month LIBOR + 4.861%) (Z)																					200,000						5,122,000
	U.S. Bancorp (6.500% to 1-15-22, then 3 month LIBOR + 4.468%) (Z)																					570,000						16,729,500
	Wells Fargo & Company, 6.000% (Z)																					250,000						6,550,000
	Wells Fargo & Company, 8.000% (Z)																					565,000						15,334,100
	Capital markets 6.1%
	Deutsche Bank Contingent Capital Trust II, 6.550%																					5,500						126,830
	Deutsche Bank Contingent Capital Trust III, 7.600% (Z)																					300,000						7,287,000
	Morgan Stanley, 6.625% (Z)																					175,000						4,786,250
	Morgan Stanley (6.375% to 10-15-24, then 3 month LIBOR + 3.708%)																					70,000						1,932,000
	State Street Corp., 5.250% (Z)																					45,000						1,143,000
	State Street Corp., 6.000% (Z)																					445,000						11,837,000
	The Goldman Sachs Group, Inc., 5.950%																					40,000						1,032,800
	Consumer finance 3.2%
	Capital One Financial Corp., 6.200%																					234,250						6,252,133
	Capital One Financial Corp., 6.700%																					52,925						1,486,663
	Navient Corp., 6.000%																					177,500						4,059,425
	SLM Corp., Series A, 6.970%																					64,000						3,216,640
	Insurance 10.1%
	Aegon NV, 6.375% (Z)																					430,000						10,947,800
	Aegon NV, 6.500% (Z)																					220,000						5,704,600
	Prudential Financial, Inc., 5.750% (Z)																					160,000						4,222,400

																						Shares						Value
	Financials  (continued)
	Insurance  (continued)
	Prudential PLC, 6.500% (Z)																					103,000						$2,687,270
	The Phoenix Companies, Inc., 7.450%																					216,500						4,106,745
	W.R. Berkley Corp., 5.625% (Z)																					740,000						18,966,200
	Thrifts and mortgage finance 0.1%
	Federal National Mortgage Association, Series S, 8.250% (I)																					75,000						295,500
	Health care 5.9%																											27,363,800
	Pharmaceuticals 5.9%
	Teva Pharmaceutical Industries, Ltd., 7.000%																					36,100						27,363,800
	Industrials 2.1%																											9,575,600
	Machinery 2.1%
	Stanley Black & Decker, Inc., 5.750% (Z)																					370,000						9,575,600
	Real estate 12.1%																											56,129,466
	Equity real estate investment trusts 12.1%
	Digital Realty Trust, Inc., 7.375%																					25,592						709,666
	Kimco Realty Corp., 6.000% (Z)																					725,000						18,386,000
	Public Storage, 5.200% (Z)																					255,000						6,482,100
	Public Storage, 5.750% (Z)																					340,000						8,639,400
	Senior Housing Properties Trust, 5.625% (Z)																					667,000						16,608,300
	Ventas Realty LP, 5.450% (Z)																					200,000						5,304,000
	Telecommunication services 9.7%																											44,896,169
	Diversified telecommunication services 2.4%
	Qwest Corp., 6.125%																					30,000						757,500
	Qwest Corp., 6.875%																					65,000						1,677,000
	Qwest Corp., 7.000%																					60,000						1,524,000
	Qwest Corp., 7.500%																					86,550						2,200,101
	Verizon Communications, Inc., 5.900% (Z)																					185,000						4,982,050
	Wireless telecommunication services 7.3%
	Telephone & Data Systems, Inc., 6.625% (Z)																					161,300						4,179,283
	Telephone & Data Systems, Inc., 6.875% (Z)																					85,000						2,182,800
	Telephone & Data Systems, Inc., 7.000%																					283,000						7,208,010
	United States Cellular Corp., 6.950% (Z)																					772,500						20,185,425
	Utilities 45.0%																											208,390,694
	Electric utilities 29.4%
	Duke Energy Corp., 5.125% (Z)																					720,000						18,792,000
	Entergy Louisiana LLC, 5.250% (Z)																					220,000						5,678,200
	FPL Group Capital Trust I, 5.875% (Z)																					255,000						6,619,800
	Great Plains Energy, Inc., 7.000%																					485,000						25,700,150
	HECO Capital Trust III, 6.500% (Z)																					187,750						4,950,968
	Interstate Power & Light Company, 5.100% (Z)																					154,600						4,152,556
	NextEra Energy Capital Holdings, Inc., 5.125% (Z)																					80,000						2,004,800
	NextEra Energy Capital Holdings, Inc., 5.700% (Z)																					665,000						17,010,700
	NSTAR Electric Company, 4.780%																					15,143						1,506,880
	PPL Capital Funding, Inc., 5.900% (Z)																					1,050,000						27,363,000
	SCE Trust I, 5.625% (Z)																					105,000						2,685,900
	SCE Trust II, 5.100% (Z)																					426,000						10,914,120
	SCE Trust III (5.750% to 3-15-24, then 3 month LIBOR + 2.990%) (Z)																					20,000						574,000
	The Southern Company, 6.250% (Z)																					310,000						8,280,100

																						Shares						Value
	Utilities  (continued)
	Independent power and renewable electricity producers 0.3%
	AES Trust III, 6.750%																					31,733						$1,604,103
	Multi-utilities 15.3%
	BGE Capital Trust II, 6.200% (Z)																					539,000						13,879,250
	Dominion Resources, Inc., 6.750% (Z)																					569,667						28,739,700
	DTE Energy Company, 5.250% (Z)																					415,420						10,634,752
	DTE Energy Company, 6.500%																					40,000						2,130,000
	DTE Energy Company, 6.500% (Z)																					355,000						9,041,850
	Integrys Holding, Inc. (6.000% to 8-1-23, then 3 month LIBOR + 3.220%) (Z)																					225,372						6,127,865
	Common stocks 10.6% (7.0% of Total investments)																											$49,079,131
	(Cost $44,482,736)
	Energy 10.1%																											46,571,131
	Oil, gas and consumable fuels 10.1%
	BP PLC, ADR (Z)																					481,000						17,099,550
	Royal Dutch Shell PLC, ADR, Class A (Z)																					373,019						18,580,076
	Spectra Energy Corp. (Z)																					260,500						10,891,505
	Utilities 0.5%																											2,508,000
	Multi-utilities 0.5%
	CenterPoint Energy, Inc. (Z)																					110,000						2,508,000
										Rate (%				)		Maturity date			Par value^									Value
	Capital preferred securities (b) 1.3% (0.9% of Total investments)																											$6,206,085
	(Cost $5,574,000)
	Utilities 1.3%																											6,206,085
	Multi-utilities 1.3%
	Dominion Resources Capital Trust III (Z)									8.400						01-15-31			5,000,000									6,206,085
	Corporate bonds 2.6% (1.7% of Total investments)																											$11,780,875
	(Cost $13,369,254)
	Energy 1.6%																											7,305,875
	Oil, gas and consumable fuels 1.6%
	Energy Transfer Partners LP (P)									3.774						11-01-66									10,550,000			7,305,875
	Utilities 1.0%																											4,475,000
	Electric utilities 1.0%
	Southern California Edison Company (6.250% to 2-1-22, then 3 month LIBOR + 4.199%) (Q) (Z)									6.250						02-01-22									4,000,000			4,475,000
										Yield				* (%)		Maturity date			Par value^									Value
	Short-term investments 1.8% (1.2% of Total investments)																											$8,352,000
	(Cost $8,352,000)
	U.S. Government Agency 1.5%																											6,747,000
	Federal Agricultural Mortgage Corp. Discount Note ()									0.200						11-01-16			6,747,000									6,747,000
																						Par value^						Value
	Repurchase agreement 0.3%																											$1,605,000
	Repurchase Agreement with State Street Corp. dated 10-31-16 at 0.030% to be repurchased at $1,605,001 on 11-1-16, collateralized by $1,640,000 Federal Home Loan Mortgage Corp., 1.000% due 8-15-18 (valued at $1,642,050, including interest)																					1,605,000						1,605,000
	Total investments (Cost $671,432,668)† 151.1%																											$699,186,938
	Other assets and liabilities, net (51.1%)																											($236,486,340	)
	Total net assets 100.0%																											$462,700,598

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.

Key to Security Abbreviations and Legend

ADR

American Depositary Receipts

LIBOR

London Interbank Offered Rate

(a)

Includes preferred stocks and hybrid securities with characteristics of both equity and debt that pay dividends on a periodic basis.

(b)

Includes hybrid securities with characteristics of both equity and debt that trade with, and pay, interest income.

(I)

Non-income producing security.

(P)

Variable rate obligation. The coupon rate shown represents the rate at period end.

(Q)

Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date.

(S)

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.

(Z)

All or a portion of this security is pledged as collateral pursuant to the Credit Facility Agreement. Total collateral value at 10-31-16 was $494,417,062.

*

Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end.

†

At 10-31-16, the aggregate cost of investment securities for federal income tax purposes was $671,581,204. Net unrealized appreciation aggregated to $27,605,734, of which $37,402,031 related to appreciated investment securities and $9,796,297 related to depreciated investment securities.

The fund had the following country composition as a percentage of total investments on 10-31-16:

	United States			83.9%
	United Kingdom			7.1%
	Netherlands			5.1%
	Israel			3.9%
	TOTAL			100.0%

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 may be determined as of the regularly scheduled close of the NYSE pursuant to the fund's Valuation Policies and Procedures. The time at which shares and transactions are priced and until which orders are accepted may vary to the extent permitted by the Securities and Exchange Commission and applicable regulations.

In order to value the securities, the fund uses the following valuation techniques: Equity securities held by the fund 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. Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. 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. Swaps are valued using evaluated prices obtained from an independent pricing vendor. Futures contracts are valued at settlement prices, which are the official closing prices published by the exchange on which they trade.

In certain instances, the Pricing Committee 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 fund's Pricing Committee following procedures established 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. 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 fund's own 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, 2016, by major security category or type:

										Total value at 10-31-16						Level 1 quoted price						Level 2 significant observable inputs						Level 3 significant unobservable inputs
	Preferred securities
				Consumer staples						$14,365,008						—						$14,365,008						—
				Energy						28,013,689						$28,013,689						—						—
				Financials						235,034,421						230,927,676						4,106,745						—
				Health care						27,363,800						27,363,800						—						—
				Industrials						9,575,600						9,575,600						—						—
				Real estate						56,129,466						56,129,466						—						—
				Telecommunication services						44,896,169						39,914,119						4,982,050						—
				Utilities						208,390,694						202,262,829						6,127,865						—
	Common stocks									49,079,131						49,079,131						—						—
	Capital preferred securities									6,206,085						—						6,206,085						—
	Corporate bonds									11,780,875						—						11,780,875						—
	Short-term investments									8,352,000						—						8,352,000						—
	Total investments in securities									$699,186,938						$643,266,310						$55,920,628						—
	Other financial instruments:
	Futures									$762,653						$762,653						—						—
	Interest rate swaps									(89,567	)					—						($89,567	)					—

Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund's custodian. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the Fund's investments as part of the caption related to the repurchase agreement.

Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of

       6

default, assets and liabilities resulting from repurchase agreements are not offset. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay back claims resulting from close-out of the transactions.

Derivative instruments. The fund may invest in derivatives in order to meet its investment objectives. Derivatives include a variety of different instruments that may be traded in the over-the-counter (OTC) market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.

Futures. A futures contract is a contractual agreement to buy or sell a particular currency or financial instrument at a pre-determined price in the future. Risks related to the use of futures contracts include possible illiquidity of the futures markets and contract prices that can be highly volatile and imperfectly correlated to movements in the underlying financial instrument. Use of long futures contracts subjects the funds to the risk of loss up to the notional value of the futures contracts. Use of short futures contracts subjects the funds to unlimited risk of loss.

During the period ended October 31, 2016, the fund used futures contracts to manage against anticipated interest rate changes against preferred securities. The following table summarizes the contracts held at October, 31, 2016.

Open contracts

Number of contracts

Position

Expiration date

Notional basis

Notional value

Unrealized appreciation (depreciation)

10-Year U.S. Treasury Note Futures

520

Short

Dec 2016

($68,167,653

)

($67,405,000

)

$762,653

Notional basis refers to the contractual amount agreed upon at inception of open contracts; notional value represents the current value of the open contract.

Interest rate swaps. Interest rate swaps represent an agreement between the fund and a counterparty to exchange cash flows based on the difference between two interest rates applied to a notional amount. 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 interest receivable or payable under the swap contracts at specified, future intervals. Swap agreements are privately negotiated in the OTC market or may be executed on a registered commodities exchange (centrally cleared swaps). Swaps are marked-to-market daily and the change in value is recorded as unrealized appreciation/depreciation of swap contracts. A termination payment by the counterparty or the fund is recorded as realized gain or loss, as well as the net periodic payments received or paid by the fund. The value of the swap will typically impose collateral posting obligations on the party that is considered out-of-the-money on the swap.

During the period ended October 31, 2016, the fund used interest rate swaps to manage against anticipated interest rate changes. The following table summarizes the interest rate swap contracts held as of October 31, 2016.

Counterparty

USD notional amount

Payments made by fund

Payments received by fund

Maturity date

Market value

Morgan Stanley Capital Services

$56,000,000

Fixed 0.8750%

3 Month LIBOR(a)

Jul 2017

($89,567

)

(a)At 10-31-16, the 3-month LIBOR rate was 0.88428%

For additional information on the fund's significant accounting policies, please refer to the fund's most recent semiannual or annual shareholder report.

       7

More information

How to contact us
Internet	www.jhinvestments.com
Mail	Computershare P.O. Box 30170 College Station, TX 77842-3170
Phone	Customer service representatives Portfolio commentary 24-hour automated information TDD line	800-852-0218 800-344-7054 800-843-0090 800-231-5469

	P11Q1	10/16
This report is for the information of the shareholders of John Hancock Preferred Income Fund II.		12/16