PrefIncome2_NQ.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811- 21202

John Hancock Preferred Income Fund II
(Exact name of registrant as specified in charter)

601 Congress Street, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)

Alfred E. Ouellette, Senior Attorney and Assistant Secretary

601 Congress Street

Boston, Massachusetts 02210
(Name and address of agent for service)

Registrant's telephone number, including area code: 617-663-4324

Date of fiscal year end:  July 31 
 
Date of reporting period:  October 31, 2005 

ITEM 1. SCHEDULE OF INVESTMENTS  		 


John Hancock           
Preferred Income Fund II           
Securities owned by the Fund on           
October 31, 2005 (unaudited)           
 
    Interest  Maturity  Credit  Par value   
Issuer, description    rate (%)  date  rating (A)  ($000)  Value 
Bonds 1.26%          $9,723,925 
(Cost $9,990,100)             
 
Electric Utilities  1.26%          9,723,925 
Black Hills Corp.,             
Note    6.500  05-15-13  BBB-  5,000  5,102,035 
Entergy Gulf States, Inc.,           
1st Mtg Bond    6.200  07-01-33  BBB+  5,000  4,621,890 


  		      Credit     
Issuer, description        rating (A)  Shares  Value 
Capital preferred stocks 12.80%          $98,643,759 
(Cost $91,760,152)           
 
Asset Management & Custody Banks 0.65%          5,020,277 
BNY Capital, 7.97%, Ser B, 12-31-26      A-  4,700  5,020,277 

Diversified Banks 0.53%  		        4,065,200 
Lloyds TSB Bank Plc, 6.90%, 11-29-49 (United           
Kingdom)        A+  4,000  4,065,200 

Diversified Financial Services 1.65%  		        12,717,048 
JPM Capital Trust I, 7.54%, 01-15-27      A-  12,000  12,717,048 

Electric Utilities  3.35%  		        25,804,750 
DPL Capital Trust II, 8.125%, 09-01-31      B+  22,150  25,804,750 

Gas Utilities 2.90%  		        22,369,083 
KN Capital Trust I, 8.56%, Ser B, 04-15-27      BB+  10,000  10,755,770 
KN Capital Trust III, 7.63%, 04-15-28      BB+  10,673  11,613,313 

Integrated Telecommunication Services 1.30%  		        10,035,781 
TCI Communications Financing Trust III, 9.65%,           
03-31-27        BB+  9,243  10,035,781 

Multi-Utilities & Unregulated Power 1.96%  		        15,092,452 
Dominion Resources Capital I, 7.83%, 12-01-27      BBB-  8,450  9,103,937 
Dominion Resources Capital III, 8.40%, 01-15-31      BBB-  5,000  5,988,515 

Regional Banks  0.46%  		        3,539,168 
Summit Capital Trust I, 8.40%, Ser B, 03-15-27      A  3,300  3,539,168 

Page 1

John Hancock         
Preferred Income Fund II       
Securities owned by the Fund on       
October 31, 2005 (unaudited)       


Issuer  		    Shares  Value 
Common stocks  2.53%      $19,549,788 
(Cost $16,564,266)         
 
Electric Utilities 0.45%      3,519,000 
Scottish Power Plc, American Depositary Receipt       
(ADR)(United Kingdom)      90,000  3,519,000 

Multi-Utilities & Unregulated Power 2.08%  		    16,030,788 
Alliant Energy Corp.      220,000  5,819,000 
CH Energy Group, Inc.      40,000  1,862,000 
DTE Energy Co.      98,790  4,267,728 
KeySpan Corp.      118,081  4,082,060 

  		  Credit     
Issuer, description    rating (A)  Shares  Value 
Preferred stocks  82.24%      $633,917,325 
(Cost $632,276,141)         
 
Agricultural Products  1.70%      13,110,000 
Ocean Spray Cranberries, Inc., 6.25%, Ser A (S)  BB+  160,000  13,110,000 

Asset Management & Custody Banks 0.12%  		    962,400 
BNY Capital V, 5.95%, Ser F  A-  40,000  962,400 

Automobile Manufacturers 1.94%  		    14,945,115 
Ford Motor Co., 7.50%    BB+  50,000  862,500 
General Motors Corp., 7.25%, Ser 02-15-52  BB  447,300  7,322,301 
General Motors Corp., 7.25%, Ser 04-15-41  BB  87,900  1,431,891 
General Motors Corp., 7.25%, Ser 07-15-41  BB  233,500  3,841,075 
General Motors Corp., 7.375%, Ser 10-01-51  BB  91,025  1,487,348 

Broadcasting & Cable TV 0.74%  		    5,682,672 
Shaw Communications, Inc., 8.50% (Canada)  B+  223,200  5,682,672 

Consumer Finance 2.39%  		    18,449,797 
CIT Group, Inc., 6.35%, Ser A  BBB+  60,000  1,513,200 
Ford Motor Credit Co., 7.375%  BBB-  30,000  607,200 
Ford Motor Credit Co., 7.60%  Baa3  100,000  2,114,000 
Household Finance Corp., 6.00%  A  72,200  1,745,074 
Household Finance Corp., 6.875%  A  349,100  8,884,595 
HSBC Finance Corp., 6.36%, Depositary Shares,       
Ser B    BBB+  143,200  3,585,728 

Diversified Banks 8.61%  		    66,350,970 
BAC Capital Trust IV, 5.875%  A  46,150  1,102,985 
Comerica Capital Trust I, 7.60%  BBB+  120,400  3,061,772 
Fleet Capital Trust VII, 7.20%  A  459,900  11,713,653 
Fleet Capital Trust VIII, 7.20%  A  310,000  7,936,000 
HSBC Holdings Plc, 6.20%, Ser A (United Kingdom)  A-  249,600  6,092,736 
Republic New York Corp., 6.25%, Ser HSBC  A  50,000  1,245,000 

Page 2

John Hancock       
Preferred Income Fund II       
Securities owned by the Fund on       
October 31, 2005 (unaudited)       
 
Royal Bank of Scotland Group Plc, 5.75%, Ser L       
(United Kingdom)  A  475,500  10,960,275 
Santander Finance Preferred S.A., Unipersonal,       
6.41%, Ser 1 (Spain)  BBB+  225,000  5,670,000 
USB Capital III, 7.75%  A-  134,300  3,393,761 
USB Capital IV, 7.35%  A-  152,800  3,871,952 
USB Capital V, 7.25%  A-  252,000  6,441,120 
Wells Fargo Capital Trust IV, 7.00%  A  140,800  3,593,216 
Wells Fargo Capital Trust VI, 6.95%  A-  50,000  1,268,500 
 
Diversified Financial Services 4.87%      37,524,948 
ABN AMRO Capital Funding Trust V, 5.90%  A  312,400  7,347,648 
ABN AMRO Capital Funding Trust VII, 6.08%  A  306,000  7,365,420 
Citigroup Capital VII, 7.125%  A  113,700  2,908,446 
Citigroup Capital VIII, 6.95%  A  359,000  9,089,880 
Citigroup Capital IX, 6.00%  A  70,000  1,709,400 
General Electric Capital Corp., 6.10%  AAA  22,863  577,748 
JPMorgan Chase Capital IX, 7.50%, Ser I  A-  73,800  1,864,926 
JPMorgan Chase Capital X, 7.00%, Ser J  A1  259,000  6,661,480 
 
Electric Utilities 14.08%      108,512,539 
Boston Edison Co., 4.78%  BBB+  15,143  1,317,441 
Cleveland Electric Financing Trust I, 9.00%  BB  210,000  5,487,300 
Entergy Mississippi, Inc., 7.25%  A-  109,000  2,826,370 
FPC Capital I, 7.10%, Ser A  BB+  559,503  14,093,881 
FPL Group Capital Trust I, 5.875%  BBB+  436,800  10,461,360 
FPL Group, Inc., 8.00%, Conv  A-  140,000  9,066,400 
Georgia Power Capital Trust V, 7.125%  BBB+  207,300  5,288,223 
Georgia Power Capital Trust VII, 5.875%  BBB+  116,500  2,792,505 
Great Plains Energy, Inc., 8.00%, Conv  BBB-  544,100  14,078,587 
HECO Capital Trust III, 6.50%  BBB-  120,000  3,136,800 
Interstate Power & Light Co., 8.375%, Ser B  BBB-  700,000  23,100,000 
Northern States Power Co., 8.00%  BBB-  175,800  4,595,412 
NVP Capital III, 7.75%  CCC+  108,500  2,739,625 
Southern California Edison Co., 6.125%  BBB-  10,000  997,500 
Southern Co. Capital Trust VI, 7.125%  BBB+  30,000  765,900 
Virginia Power Capital Trust, 7.375%  BBB-  304,519  7,765,235 
 
Gas Utilities 1.87%      14,438,960 
AGL Capital Trust II, 8.00%  BBB  41,000  1,033,200 
Southern Union Co., 7.55%  BB+  197,600  5,224,544 
Southwest Gas Capital II, 7.70%  BB  253,900  6,751,201 
Vectren Utility Holdings, Inc., 7.25%  A-  56,500  1,430,015 
 
Hotels, Resorts & Cruise Lines 0.41%      3,140,000 
Hilton Hotels Corp., 8.00%  BBB-  125,000  3,140,000 
 
Integrated Telecommunication Services 2.97%      22,876,212 
Telephone & Data Systems, Inc., 6.625%  A-  150,000  3,652,500 
Telephone & Data Systems, Inc., 7.60%, Ser A  A-  605,967  15,427,920 
Verizon New England, Inc., 7.00%, Ser B  A2  150,150  3,795,792 

Page 3

John Hancock       
Preferred Income Fund II       
Securities owned by the Fund on       
October 31, 2005 (unaudited)       
 
Investment Banking & Brokerage 8.16%      62,869,678 
Bear Stearns Cos., Inc. (The), 6.15%, Depositary       
Shares, Ser E  BBB  248,600  12,454,860 
Goldman Sachs Group, Inc., 6.20%, Ser B  A-  140,000  3,478,132 
Lehman Brothers Holdings Capital Trust III,       
6.375%, Ser K  BBB+  170,000  4,175,200 
Lehman Brothers Holdings Capital Trust V, 6.00%,       
Ser M  BBB+  40,000  937,600 
Lehman Brothers Holdings, Inc., 5.94%, Depositary       
Shares, Ser C  BBB+  145,200  7,136,580 
Merrill Lynch Preferred Capital Trust III, 7.00%  A-  360,400  9,201,012 
Merrill Lynch Preferred Capital Trust IV, 7.12%  A-  167,400  4,330,638 
Merrill Lynch Preferred Capital Trust V, 7.28%  A-  273,200  7,103,200 
Morgan Stanley Capital Trust II, 7.25%  A-  35,000  883,400 
Morgan Stanley Capital Trust III, 6.25%  A-  248,779  6,085,134 
Morgan Stanley Capital Trust IV, 6.25%  A-  57,000  1,389,090 
Morgan Stanley Capital Trust V, 5.75%  A1  248,900  5,694,832 
 
Life & Health Insurance 3.84%      29,624,891 
MetLife, Inc., 6.375%, Ser B, Conv  BBB+  8,390  229,467 
MetLife, Inc., 6.50%, Ser B  BBB  799,550  20,140,664 
PLC Capital Trust IV, 7.25%  BBB+  331,075  8,518,560 
Prudential Plc, 6.50% (United Kingdom)  A  30,000  736,200 
 
Multi-Line Insurance 3.07%      23,637,555 
AEGON N.V., 6.375% (Netherlands)  A-  150,000  3,766,500 
ING Groep N.V., 7.05% (Netherlands)  A-  774,700  19,871,055 
 
Multi-Utilities & Unregulated Power 13.54%      104,359,667 
Baltimore Gas & Electric Co., 6.99%, Ser 1995  Baa1  39,870  4,162,679 
BGE Capital Trust II, 6.20%  BBB-  525,000  12,888,750 
Consumers Energy Co. Financing IV, 9.00%  Ba2  217,000  5,555,200 
Dominion CNG Capital Trust I, 7.80%  BBB-  150,000  3,816,000 
DTE Energy Trust I, 7.80%  BB+  253,000  6,456,560 
Energy East Capital Trust I, 8.25%  BBB-  424,800  10,785,672 
ONEOK, Inc., 8.50%, Conv  BBB+  470,000  16,252,600 
PSEG Funding Trust II, 8.75%  BB+  680,000  18,040,400 
Public Service Electric & Gas Co., 4.18%, Ser B  BB+  7,900  639,900 
Public Service Enterprise Group, Inc., 10.25%,       
Conv  BBB-  75,450  6,003,557 
Puget Sound Energy Capital Trust II, 8.40%  BB  232,060  5,915,209 
South Carolina Electric & Gas Co., 6.52%  Baa1  15,000  1,523,438 
TECO Capital Trust I, 8.50%  B  490,434  12,319,702 
 
Oil & Gas Exploration & Production 4.96%      38,242,989 
Anadarko Petroleum Corp., 5.46%, Depositary       
Shares, Ser B  BBB-  62,000  6,048,875 
Apache Corp., 5.68%, Depositary Shares, Ser B  BBB  25,000  2,513,282 
Devon Energy Corp., 6.49%, Ser A  BB+  32,355  3,324,476 
Nexen, Inc., 7.35% (Canada)  BB+  1,018,800  26,356,356 

Page 4

John Hancock             
Preferred Income Fund II           
Securities owned by the Fund on           
October 31, 2005 (unaudited)           
 
Real Estate Investment Trusts  4.58%          35,290,786 
Duke Realty Corp., 6.50%, Depositary Shares, Ser K      BBB  110,000  2,702,700 
Duke Realty Corp., 6.60%, Depositary Shares, Ser L      BBB  109,840  2,718,540 
Duke Realty Corp., 6.625%, Depositary Shares,           
Ser J        BBB  449,400  11,284,434 
Duke Realty Corp., 7.99%, Depositary Shares, Ser B      BBB  10,650  534,497 
Kimco Realty Co., 6.65%, Depositary Shares, Ser F      BBB+  37,030  942,784 
Public Storage, Inc., 6.45%, Depositary Shares,           
Ser X        BBB+  30,000  721,500 
Public Storage, Inc., 7.50%, Depositary Shares,           
Ser V        BBB+  307,100  7,920,109 
Public Storage, Inc., 8.00%, Depositary Shares,           
Ser R        BBB+  304,500  7,789,110 
Public Storage, Inc., 8.60%, Depositary Shares,           
Ser Q        BBB+  26,700  677,112 

Regional Banks 2.35%  		          18,136,125 
PFGI Capital Corp., 7.75%        A-  686,000  18,136,125 

Reinsurance 0.11%  		          858,000 
RenaissanceRe Holdings Ltd., 6.08%, Ser C           
(Bermuda)        BBB+  40,000  858,000 

Thrifts & Mortgage Finance 1.37%  		        10,585,005 
Abbey National Plc, 7.25% (United Kingdom)      A-  275,620  6,959,405 
Abbey National Plc, 7.375% (United Kingdom)      A-  140,800  3,625,600 

Wireless Telecommunication Services 0.56%  		        4,319,016 
United States Cellular, 7.50%        A-  165,100  4,319,016 

  		  Interest  Maturity  Credit  Par value   
Issuer, description, maturity date    rate (%)  date  rating (A)  ($000)  Value 
Short-term investments 1.17%          $9,000,000 
(Cost $9,000,000)             
 
Government U.S. Agency 1.17%          9,000,000 
Fannie Mae, Discount Note    Zero  11-01-05  AAA  9,000  9,000,000 
 
Total investments  100.00%          $770,834,797 

Page 5

John Hancock         
Preferred Income Fund II       
Financial futures contracts       
October 31, 2005 (unaudited)       
 
  Number of       
Open contracts  contracts  Position  Expiration  Appreciation 
U.S. 10-year Treasury Note  684  Short  December 2005  $1,506,243 

Financial futures contracts

John Hancock         
Preferred Income Fund II     
Interest rate swap contracts       
October 31, 2005 (unaudited)       
 
    Rate type     
Notional  Payments made  Payments received  Termination   
amount  by Fund  by Fund  date  Appreciation 
$63,500,000  2.56%(a)  3-month LIBOR  June 2008  $3,475,058 
(a) Fixed rate         

Interest rate swap contracts

John Hancock
Preferred Income Fund II
Footnotes to Schedule of Investments
October 31, 2005 (unaudited)

(A)      Credit ratings are unaudited and are rated by Moody's Investors Service where Standard & Poor's ratings are not available.
 
(S)      This security is 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. Rule 144A securities amounted to $13,110,000 or 1.70% of the Fund's total investments as of October 31, 2005.
 
  Parenthetical disclosure of a foreign country in the security description represents country of a foreign issuer; however, security is U.S. dollar-denominated.
 
  The percentage shown for each investment category is the total value of that category as a percentage of the total investments of the Fund.
 
  The cost of investments owned on October 31, 2005, including short-term investments, was $759,590,659. Gross unrealized appreciation and depreciation of investments aggregated $31,172,539 and $19,928,401, respectively, resulting in net unrealized appreciation of $11,244,138.
 

Footnotes to Schedule of Investments - Page 1




ITEM 2. CONTROLS AND PROCEDURES.

(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-Q, the registrant's principal executive officer and principal accounting officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

ITEM 3. EXHIBITS.

Separate certifications for the registrant's principal executive officer and principal accounting officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

John Hancock Preferred Income Fund II

By:  /s/Keith F. Hartstein 
  Keith F. Hartstein 
  President and Chief Executive Officer 
 
Date:  December 21, 2005 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:  /s/Keith F. Hartstein 
  Keith F. Hartstein 
  President and Chief Executive Officer 
 
Date:  December 21, 2005 
 
 
By:  /s/John G. Vrysen 
  John G. Vrysen 
  Executive Vice President and Chief Financial Officer 
 
Date:  December 21, 2005