In plain terms — John Hancock Preferred Income Fund III
Shares currently cost about 6.9% less than the value of the assets behind them (a discount).
Over the past year it has averaged a 3.1% premium, so today's level is unusually wide for this fund (Z-score -3.3). That describes the past; it does not predict where the discount goes next.
It pays regular distributions worth about 11.3% a year of the share price (10.5% of the assets). That is a payout rate, not a return: part of it may be capital being handed back.
Because the shares trade below the value of their assets, each dollar of reinvested distributions buys about $1.07 of assets — a ReinvestCapture™ rate of 12.1%, more than the payout rate itself. That is buying power, not a return.
The assets themselves fell 4.4% over the past year including distributions (NAV total return).
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Price and NAV, past year
Snapshot
Valuation vs. history
| Window | Average prem/disc | Std. dev. | Z-score | Observations |
|---|---|---|---|---|
| 3 months | +1.29% | 4.72% | -1.74 | 55 |
| 6 months | +2.99% | 3.82% | -2.60 | 108 |
| 1 year | +3.14% | 3.01% | -3.34 | 206 |
| 3 years | +4.49% | — | — | — |
| 5 years | +4.28% | — | — | — |
Current contemporaneous premium/discount -6.93% (close Oct 14, 2026 vs NAV Oct 13, 2026). 1-year range -7.47% to +7.27%. A negative Z-score means a wider discount than the window average — not that the fund is undervalued.
Performance
| Series | 1M | 3M | YTD | 1Y | 3Y (ann.) | 5Y (ann.) |
|---|---|---|---|---|---|---|
| Market price return | -11.12% | -19.96% | -20.12% | -24.77% | -2.48% | -9.87% |
| Market price total return | -10.28% | -17.90% | -13.61% | -17.42% | +6.69% | -1.58% |
| NAV return | -3.83% | -7.71% | -11.86% | -13.08% | +0.43% | -7.20% |
| NAV total return | -2.99% | -5.35% | -4.50% | -4.36% | +10.28% | +1.72% |
Through Oct 14, 2026. Total return reinvests distributions at the series value on the ex-date. Cumulative ≤ 1 year, annualised beyond.
About the fund
The John Hancock Preferred Income Fund III (HPS) functions as a closed-end investment vehicle, primarily focused on fixed-income securities. Its overall management falls under John Hancock Investment Management LLC, with additional co-management provided by John Hancock Asset Management. The fund strategically allocates capital within the United States' fixed-income markets, aiming to acquire debt instruments from companies operating across a diverse array of sectors. A significant portion of its portfolio is dedicated to preferred securities and other fixed-income instruments that possess an investment-grade credit rating or higher from either Moody's or Standard & Poor's. To assess its performance, the fund measures itself against both the Bank of America Merrill Lynch Hybrid Preferred Securities Index and the Barclays U.S. Aggregate Bond Index. This U.S.-domiciled fund was originally established on June 19, 2003.
CEF Explorer research page for John Hancock Preferred Income Fund III. Figures carry their own dates and sources; a discount to NAV does not guarantee convergence or any return. This is not investment advice.