NPORT-EX 3 edgar.htm
John Hancock
Preferred Income Fund II
Quarterly portfolio holdings 10/31/2020
Fund’s investments  
As of 10-31-20 (unaudited)
        Shares Value
Preferred securities (A) 111.4% (75.0% of Total investments)     $434,309,233
(Cost $445,736,763)          
Communication services 13.1%       51,097,626
Diversified telecommunication services 2.4%        
Qwest Corp., 6.125% (B)(C)       30,000 756,600
Qwest Corp., 6.500% (C)       110,790 2,815,174
Qwest Corp., 6.750%       220,000 5,748,600
Wireless telecommunication services 10.7%        
Telephone & Data Systems, Inc., 6.625% (C)       168,297 4,326,916
Telephone & Data Systems, Inc., 6.875% (C)       115,519 2,927,251
Telephone & Data Systems, Inc., 7.000%       283,000 7,140,090
U.S. Cellular Corp., 6.250%       220,000 5,773,900
U.S. Cellular Corp., 6.950% (B)(C)       633,600 16,131,456
U.S. Cellular Corp., 7.250%       215,825 5,477,639
Consumer discretionary 1.2%       4,502,550
Internet and direct marketing retail 1.2%        
Qurate Retail, Inc., 8.000%       40,000 3,912,800
QVC, Inc., 6.250% (C)       25,000 589,750
Consumer staples 3.4%       13,120,000
Food products 3.4%        
Ocean Spray Cranberries, Inc., 6.250% (C)(D)       160,000 13,120,000
Energy 2.1%       8,170,200
Oil, gas and consumable fuels 2.1%        
Enbridge, Inc. (6.375% to 4-15-23, then 3 month LIBOR + 3.593%) (C)       210,000 5,359,200
NuStar Logistics LP (3 month LIBOR + 6.734%), 6.971% (C)(E)       150,000 2,811,000
Financials 39.1%       152,362,826
Banks 21.6%        
Bank of America Corp., 6.000% (C)       108,575 2,913,067
Bank of America Corp. (6.450% to 11-30-20, then 3 month LIBOR + 1.327%) (C)       110,000 2,901,800
Citigroup Capital XIII (3 month LIBOR + 6.370%), 6.584% (E)       265,000 7,261,000
Citigroup, Inc. (7.125% to 9-30-23, then 3 month LIBOR + 4.040%) (B)(C)       300,564 8,499,950
Fifth Third Bancorp, 6.000% (C)       150,000 3,984,000
First Republic Bank, 4.700% (C)       128,875 3,355,905
Fulton Financial Corp., 5.125%       113,025 2,865,184
GMAC Capital Trust I (3 month LIBOR + 5.785%), 6.065% (B)(C)(E)       361,904 9,315,409
Pinnacle Financial Partners, Inc., 6.750%       140,000 3,752,000
Synovus Financial Corp. (6.300% to 6-21-23, then 3 month LIBOR + 3.352%) (C)       164,500 4,229,295
The PNC Financial Services Group, Inc. (6.125% to 5-1-22, then 3 month LIBOR + 4.067%) (C)       145,000 3,872,950
Truist Financial Corp., Series G, 5.200% (C)       276,250 7,027,800
U.S. Bancorp (6.500% to 1-15-22, then 3 month LIBOR + 4.468%) (C)       130,000 3,467,100
Wells Fargo & Company (6.625% to 3-15-24, then 3 month LIBOR + 3.690%) (B)(C)       269,225 7,535,608
Wells Fargo & Company, 7.500%       7,500 10,115,700
WesBanco, Inc. (6.750% to 11-15-25, then 5 Year CMT + 6.557%)       93,000 2,457,990
Western Alliance Bancorp, 6.250% (C)       20,000 512,200
Capital markets 5.1%        
Brookfield Finance, Inc., 4.625% (C)       95,000 2,379,750
Morgan Stanley (6.375% to 10-15-24, then 3 month LIBOR + 3.708%) (C)       125,000 3,532,500
2 JOHN HANCOCK PREFERRED INCOME FUND II | QUARTERLY REPORT SEE NOTES TO FUND'S INVESTMENTS
        Shares Value
Financials (continued)        
Capital markets (continued)        
Morgan Stanley (6.875% to 1-15-24, then 3 month LIBOR + 3.940%) (C)       86,000 $2,402,840
Morgan Stanley (7.125% to 10-15-23, then 3 month LIBOR + 4.320%)       405,472 11,657,320
Consumer finance 1.4%        
Navient Corp., 6.000% (C)       244,271 5,388,618
Insurance 10.8%        
AEGON Funding Company LLC, 5.100% (B)(C)       267,925 6,982,126
American Equity Investment Life Holding Company (6.625% to 9-1-25, then 5 Year CMT + 6.297%)       131,750 3,433,405
American Financial Group, Inc., 5.125% (C)       123,850 3,343,950
American International Group, Inc., 5.850% (B)(C)       200,000 5,420,000
Athene Holding, Ltd., Series A (6.350% to 6-30-29, then 3 month LIBOR + 4.253%) (B)(C)       250,000 6,695,000
Brighthouse Financial, Inc., 6.600%       222,187 5,890,177
Prudential PLC, 6.500% (B)(C)       103,000 2,768,640
The Hartford Financial Services Group, Inc. (7.875% to 4-15-22, then 3 month LIBOR + 5.596%) (C)       46,750 1,283,755
The Phoenix Companies, Inc., 7.450% (C)       216,500 3,131,687
Unum Group, 6.250% (C)       127,500 3,371,100
Thrifts and mortgage finance 0.2%        
Federal National Mortgage Association, Series S, 8.250% (F)       75,000 615,000
Industrials 1.0%       3,985,475
Trading companies and distributors 1.0%        
WESCO International, Inc. (10.625% to 6-22-25, then 5 Year CMT + 10.325%)       137,525 3,985,475
Information technology 0.9%       3,569,970
Semiconductors and semiconductor equipment 0.9%        
Broadcom, Inc., 8.000% (C)       3,000 3,569,970
Real estate 4.7%       18,382,386
Equity real estate investment trusts 4.7%        
American Homes 4 Rent, Series E, 6.350% (C)       79,996 2,060,697
American Homes 4 Rent, Series F, 5.875% (C)       146,511 3,845,914
Diversified Healthcare Trust, 5.625% (B)(C)       665,020 12,475,775
Utilities 45.9%       179,118,200
Electric utilities 16.9%        
Duke Energy Corp., 5.125% (B)(C)       386,624 9,936,237
Duke Energy Corp., 5.750% (C)       160,000 4,512,000
Entergy Louisiana LLC, 5.250% (C)       120,000 3,130,800
Interstate Power & Light Company, 5.100% (B)(C)       108,837 2,794,934
NextEra Energy, Inc., 5.279% (C)       55,000 2,719,750
NextEra Energy, Inc., 6.219% (B)(C)       100,000 4,933,000
NSTAR Electric Company, 4.780% (C)       15,143 1,578,658
PG&E Corp., 5.500%       35,000 3,486,700
PPL Capital Funding, Inc., 5.900% (C)       627,444 15,937,078
SCE Trust II, 5.100%       187,737 4,451,244
SCE Trust III (5.750% to 3-15-24, then 3 month LIBOR + 2.990%) (C)       20,000 442,000
SCE Trust VI, 5.000%       9,125 208,415
The Southern Company, 6.750% (C)       245,000 11,843,300
Gas utilities 3.6%        
South Jersey Industries, Inc., 5.625% (C)       188,875 4,810,646
South Jersey Industries, Inc., 7.250%       283,600 9,418,356
SEE NOTES TO FUND'S INVESTMENTS QUARTERLY REPORT | JOHN HANCOCK PREFERRED INCOME FUND II 3
        Shares Value
Utilities (continued)        
Multi-utilities 25.4%        
Algonquin Power & Utilities Corp. (6.200% to 7-1-24, then 3 month LIBOR + 4.010%)       290,000 $7,806,800
Algonquin Power & Utilities Corp. (6.875% to 10-17-23, then 3 month LIBOR + 3.677%)       420,050 11,219,536
CenterPoint Energy, Inc., 7.000% (C)       615,000 24,458,550
CMS Energy Corp., 5.625% (B)(C)       187,515 5,068,530
DTE Energy Company, 5.250% (C)       160,000 4,251,200
DTE Energy Company, 6.000% (B)(C)       72,100 1,896,230
DTE Energy Company, 6.250% (B)(C)       424,300 20,188,194
Integrys Holding, Inc. (6.000% to 8-1-23, then 3 month LIBOR + 3.220%) (B)(C)       237,872 6,434,438
NiSource, Inc. (6.500% to 3-15-24, then 5 Year CMT + 3.632%) (B)(C)       288,000 7,994,880
Sempra Energy, 5.750% (B)(C)       270,000 7,187,400
Sempra Energy, 6.750% (C)       23,600 2,409,324
Common stocks 4.4% (3.0% of Total investments)     $17,251,876
(Cost $27,627,441)          
Communication services 0.3%       1,293,000
Diversified telecommunication services 0.3%        
CenturyLink, Inc. (C)       150,000 1,293,000
Energy 2.6%       10,142,718
Oil, gas and consumable fuels 2.6%        
BP PLC, ADR (C)       140,000 2,167,200
Equitrans Midstream Corp. (C)       358,446 2,602,318
The Williams Companies, Inc. (C)       280,000 5,373,200
Utilities 1.5%       5,816,158
Multi-utilities 1.5%        
Dominion Energy, Inc. (B)(C)       56,000 5,816,158
    
  Rate (%) Maturity date   Par value^ Value
Corporate bonds 26.7% (18.0% of Total investments)     $104,211,722
(Cost $111,271,698)          
Communication services 1.4%       5,684,109
Wireless telecommunication services 1.4%        
SoftBank Group Corp. (6.875% to 7-19-27, then 5 Year ICE Swap Rate + 4.854%) (C)(G) 6.875 07-19-27   5,988,000 5,684,109
Consumer discretionary 2.5%       9,790,305
Automobiles 2.5%        
General Motors Financial Company, Inc. (5.700% to 9-30-30, then 5 Year CMT + 4.997%) (G) 5.700 09-30-30   2,500,000 2,587,500
General Motors Financial Company, Inc. (6.500% to 9-30-28, then 3 month LIBOR + 3.436%) (G) 6.500 09-30-28   7,239,000 7,202,805
Consumer staples 0.2%       663,300
Food products 0.2%        
Land O' Lakes, Inc. (C)(D)(G) 8.000 07-16-25   670,000 663,300
Energy 4.4%       17,324,280
Oil, gas and consumable fuels 4.4%        
DCP Midstream LP (7.375% to 12-15-22, then 3 month LIBOR + 5.148%) (G) 7.375 12-15-22   9,297,000 6,043,050
Energy Transfer Operating LP (3 month LIBOR + 3.018%) (C)(E) 3.269 11-01-66   8,050,000 4,145,750
Energy Transfer Operating LP (6.625% to 2-15-28, then 3 month LIBOR + 4.155%) (B)(C)(G) 6.625 02-15-28   6,500,000 4,615,000
4 JOHN HANCOCK PREFERRED INCOME FUND II | QUARTERLY REPORT SEE NOTES TO FUND'S INVESTMENTS
  Rate (%) Maturity date   Par value^ Value
Energy (continued)        
Oil, gas and consumable fuels (continued)        
MPLX LP (6.875% to 2-15-23, then 3 month LIBOR + 4.652%) (B)(C)(G) 6.875 02-15-23   3,000,000 $2,520,480
Financials 13.5%       52,481,875
Banks 7.7%        
Barclays PLC (7.750% to 9-15-23, then 5 Year U.S. Swap Rate + 4.842%) (C)(G) 7.750 09-15-23   1,102,000 1,136,239
Barclays PLC (8.000% to 6-15-24, then 5 Year CMT + 5.672%) (G) 8.000 06-15-24   1,935,000 2,075,288
Citigroup, Inc. (6.125% to 2-15-21, then 3 month LIBOR + 4.478%) (G) 6.125 02-15-21   1,350,000 1,333,811
Citizens Financial Group, Inc. (6.375% to 4-6-24, then 3 month LIBOR + 3.157%) (G) 6.375 04-06-24   6,000,000 6,007,080
Comerica, Inc. (5.625% to 7-1-25, then 5 Year CMT + 5.291%) (G) 5.625 07-01-25   2,750,000 2,935,625
Huntington Bancshares, Inc. (5.625% to 7-15-30, then 10 Year CMT + 4.945%) (G) 5.625 07-15-30   1,500,000 1,678,125
JPMorgan Chase & Co. (3 month LIBOR + 3.320%) (B)(C)(E)(G) 3.545 01-01-21   4,220,000 3,924,853
JPMorgan Chase & Co. (6.750% to 2-1-24, then 3 month LIBOR + 3.780%) (C)(G) 6.750 02-01-24   667,000 729,270
Lloyds Banking Group PLC (7.500% to 6-27-24, then 5 Year U.S. Swap Rate + 4.760%) (G) 7.500 06-27-24   6,000,000 6,330,000
Regions Financial Corp. (5.750% to 6-15-25, then 5 Year CMT + 5.430%) (G) 5.750 06-15-25   1,800,000 1,928,250
Wells Fargo & Company (5.900% to 6-15-24, then 3 month LIBOR + 3.110%) (C)(G) 5.900 06-15-24   2,000,000 2,017,437
Capital markets 0.9%        
The Charles Schwab Corp. (5.375% to 6-1-25, then 5 Year CMT + 4.971%) (C)(G) 5.375 06-01-25   3,100,000 3,394,500
Consumer finance 0.9%        
Discover Financial Services (6.125% to 6-23-25, then 5 Year CMT + 5.783%) (G) 6.125 06-23-25   3,400,000 3,665,200
Diversified financial services 0.8%        
Enstar Finance LLC (5.750% to 9-1-25, then 5 Year CMT + 5.468%) 5.750 09-01-40   3,000,000 3,048,337
Insurance 3.2%        
Markel Corp. (6.000% to 6-1-25, then 5 Year CMT + 5.662%) (G) 6.000 06-01-25   2,000,000 2,125,000
MetLife, Inc. (5.875% to 3-15-28, then 3 month LIBOR + 2.959%) (B)(C)(G) 5.875 03-15-28   4,000,000 4,434,160
SBL Holdings, Inc. (7.000% to 5-13-25, then 5 Year CMT + 5.580%) (C)(D)(G) 7.000 05-13-25   6,890,000 5,718,700
Materials 0.6%       2,336,248
Chemicals 0.6%        
Braskem Netherlands Finance BV (8.500% to 10-24-25, then 5 Year CMT + 8.220%) (D) 8.500 01-23-81   2,300,000 2,336,248
Utilities 4.1%       15,931,605
Electric utilities 3.1%        
Emera, Inc. (6.750% to 6-15-26, then 3 month LIBOR + 5.440%) (C) 6.750 06-15-76   2,490,000 2,757,675
Southern California Edison Company (6.250% to 2-1-22, then 3 month LIBOR + 4.199%) (B)(C)(G) 6.250 02-01-22   6,500,000 6,381,840
The Southern Company (4.000% to 1-15-26, then 5 Year CMT + 3.733%) (B)(C) 4.000 01-15-51   3,000,000 3,050,756
Multi-utilities 1.0%        
CMS Energy Corp. (4.750% to 3-1-30, then 5 Year CMT + 4.116%) (C) 4.750 06-01-50   3,500,000 3,741,334
Capital preferred securities (H) 1.8% (1.2% of Total investments)     $6,847,636
(Cost $6,064,403)          
Financials 0.1%       486,583
Banks 0.1%        
Wachovia Capital Trust III (Greater of 3 month LIBOR + 0.930% or 5.570%) (C)(E)(G) 5.570 11-30-20   486,000 486,583
SEE NOTES TO FUND'S INVESTMENTS QUARTERLY REPORT | JOHN HANCOCK PREFERRED INCOME FUND II 5
  Rate (%) Maturity date   Par value^ Value
Utilities 1.7%       $6,361,053
Multi-utilities 1.7%        
Dominion Resources Capital Trust III (C) 8.400 01-15-31   5,000,000 6,361,053
    
        Par value^ Value
Short-term investments 4.1% (2.8% of Total investments)     $16,011,000
(Cost $16,011,000)          
Repurchase agreement 4.1%         16,011,000
Repurchase Agreement with State Street Corp. dated 10-30-20 at 0.000% to be repurchased at $16,011,000 on 11-2-20, collateralized by $15,941,100 U.S. Treasury Notes, 1.375% due 10-15-22 (valued at $16,331,220)       16,011,000 16,011,000
Total investments (Cost $606,711,305) 148.4%       $578,631,467
Other assets and liabilities, net (48.4%)       (188,837,659)
Total net assets 100.0%         $389,793,808
    
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
(A) Includes preferred stocks and hybrid securities with characteristics of both equity and debt that pay dividends on a periodic basis.
(B) All or a portion of this security is on loan as of 10-31-20, and is a component of the fund's leverage under the Credit Facility Agreement.
(C) All of a portion of this security is pledged as collateral pursuant to the Credit Facility Agreement. Total collateral value at 10-31-20 was $384,045,054. A portion of the securities pledged as collateral were loaned pursuant to the Credit Facility Agreement. The value of securities on loan amounted to $162,419,086.
(D) 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.
(E) Variable rate obligation. The coupon rate shown represents the rate at period end.
(F) Non-income producing security.
(G) Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date.
(H) Includes hybrid securities with characteristics of both equity and debt that trade with, and pay, interest income.
The fund had the following country composition as a percentage of total investments on 10-31-20:
United States 89.9%
Canada 5.1%
United Kingdom 2.4%
Bermuda 1.2%
Japan 1.0%
Other countries 0.4%
TOTAL 100.0%
6 JOHN HANCOCK PREFERRED INCOME FUND II | QUARTERLY REPORT SEE NOTES TO FUND'S INVESTMENTS
DERIVATIVES
FUTURES
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 2020 $(72,368,494) $(71,873,750) $494,744
            $494,744
^ Notional basis refers to the contractual amount agreed upon at inception of open contracts; notional value represents the current value of the open contract.
SWAPS
Interest rate swaps
Counterparty (OTC)/
Centrally cleared 		Notional
amount 		Currency Payments
made 		Payments
received 		Fixed
payment
frequency 		Floating
payment
frequency 		Maturity
date 		Unamortized
upfront
payment
paid
(received) 		Unrealized
appreciation
(depreciation) 		Value
Centrally cleared 60,000,000 USD Fixed 2.136% USD 3 month LIBOR BBA(a) Semi-Annual Quarterly Oct 2022 — $(2,275,918) $(2,275,918)
                — $(2,275,918) $(2,275,918)
    
(a) At 10-31-20, the 3 month LIBOR was 0.216%.
    
Derivatives Currency Abbreviations
USD U.S. Dollar
    
Derivatives Abbreviations
BBA The British Banker's Association
LIBOR London Interbank Offered Rate
OTC Over-the-counter
SEE NOTES TO FUND'S INVESTMENTS QUARTERLY REPORT | JOHN HANCOCK PREFERRED INCOME FUND II 7
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 fund'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. 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 are typically valued at the last traded price on the exchange on which they trade. Swaps are generally valued using evaluated prices obtained from an independent pricing vendor.
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, 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 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, 2020, by major security category or type:
  Total
value at
10-31-20 		Level 1
quoted
price 		Level 2
significant
observable
inputs 		Level 3
significant
unobservable
inputs
         
Investments in securities:        
Assets        
Preferred securities        
Communication services $51,097,626 $45,323,726 $5,773,900 —
Consumer discretionary 4,502,550 4,502,550 — —
Consumer staples 13,120,000 — 13,120,000 —
Energy 8,170,200 8,170,200 — —
Financials 152,362,826 149,231,139 3,131,687 —
Industrials 3,985,475 3,985,475 — —
Information technology 3,569,970 3,569,970 — —
Real estate 18,382,386 18,382,386 — —
Utilities 179,118,200 172,683,762 6,434,438 —
Common stocks 17,251,876 17,251,876 — —
Corporate bonds 104,211,722 — 104,211,722 —
Capital preferred securities 6,847,636 — 6,847,636 —
Short-term investments 16,011,000 — 16,011,000 —
Total investments in securities $578,631,467 $423,101,084 $155,530,383 —
Derivatives:        
Assets        
Futures $494,744 $494,744 — —
Liabilities        
Swap contracts (2,275,918) — $(2,275,918) —
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.
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