UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-21654
Pioneer Floating Rate Fund, Inc.
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Amundi Asset Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant’s telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30, 2022
Date of reporting period: December 1, 2021 through May 31, 2022
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.
Pioneer Floating Rate Fund, Inc.
Semiannual Report | May 31, 2022
Ticker Symbol: PHD
visit us: www.amundi.com/us
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 1
President’s Letter
Dear Shareholders,
For two years now, investors have faced unprecedented challenges, as the COVID-19 pandemic has not only dominated the headlines since March 2020, but has also led to significant changes in government and central-bank policies, both in the US and abroad, and affected the everyday lives of each of us. With 2022 now well underway, the situation, while improved, has continued to evolve.
Widespread distribution of the COVID-19 vaccines approved for emergency use in late 2020 led to a general decline in virus-related hospitalizations in the US and had a positive effect on overall market sentiment during most of the 2021 calendar year. The passage of two additional fiscal stimulus packages by US lawmakers in December 2020 and January 2021 also helped drive a strong market rally. Then, the late-2021 emergence of the highly infectious Omicron variant of the virus led to surges in cases and hospitalizations, especially outside of the US, but also in certain areas of this country. That development contributed to a slowdown in the global economic recovery, as some foreign governments reinstated strict virus-containment measures that had been relaxed after the rollout of the vaccines. Many of those renewed restrictions were lifted as case numbers again began to decline during the late-winter months, but it appears the possibility of further virus-containment measures could be with us for a while longer, given that occasional surges in new cases have continued to arise, particularly in non-US locations.
In the US, while performance of most asset classes, especially equities, was positive for the full 2021 calendar year, 2022, so far, has featured a less-friendly market environment. Volatility in the fixed-income markets has remained high and we have seen negative returns for most asset classes. Meanwhile, equity markets, both domestic and global, have experienced significant underperformance over the first several months of the year. Concerns over global supply chain issues, rising inflation, the enactment of less-accommodative monetary policies from the Federal Reserve System (Fed), and partisan debates in Washington, DC over future spending and tax policies, are among the many factors that have led to greater uncertainty and an increase in market volatility. In addition, Russia's recent incursion into Ukraine has resulted in even greater market volatility, as economic sanctions placed on Russia by many Western countries have exacerbated the existing supply-chain issues and helped drive energy prices, including gas prices, to very high levels.
In our view, the long-term impact on the global economy from COVID-19, while currently unknown, is likely to be considerable, as it is clear that several industries have already felt greater effects than others, and could continue to struggle for quite some time. Of course, geopolitical concerns, whether they are related to the conflict in Ukraine or other crises in different areas of the globe, can always have an effect on the markets, and so our investment teams will remain vigilant and continue to monitor the geopolitical landscape.
2 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
At the outset of the pandemic, we temporarily closed our offices and instituted a work-from-home policy, but have since re-opened our US locations. However, we have been maintaining all the necessary precautions, which at times may have us working more remotely than in person in order to ensure a safe working environment as new variants of the COVID-19 virus continue to arise and spread. I am proud of the careful planning that has taken place. Throughout the pandemic, our business has continued to operate without any disruption, and we all look forward to regaining a bit of normalcy after so many months of remote working.
Since 1928, Amundi US’s investment process has been built on a foundation of fundamental research and active management, principles which have guided our investment decisions for more than 90 years. We believe active management – that is, making active investment decisions – can help mitigate the risks during periods of market volatility.
At Amundi US, active management begins with our own fundamental, bottom-up research process. Our team of dedicated research analysts and portfolio managers analyzes each security under consideration, communicating frequently with the management teams of the companies and other entities issuing the securities, and working together to identify those securities that best meet our investment criteria for our family of funds. Our risk management approach begins with each and every security, as we strive to carefully understand the potential opportunity, while considering any and all risk factors.
Today, as investors, we have many options. It is our view that active management can serve shareholders well, not only when markets are thriving, but also during periods of market stress.
As you consider your long-term investment goals, we encourage you to work with your financial professional to develop an investment plan that paves the way for you to pursue both your short-term and long-term goals.
We greatly appreciate the trust you have placed in us and look forward to continuing to serve you in the future.
Sincerely,
Lisa M. Jones
Head of the Americas, President and CEO of US
Amundi Asset Management US, Inc.
July 2022
Any information in this shareowner report regarding market or economic trends or the factors influencing the Fund’s historical or future performance are statements of opinion as of the date of this report. Past performance is no guarantee of future results.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 3
Portfolio Management Discussion | 5/31/22
In the following interview, Jonathan Sharkey discusses the factors that influenced the performance of Pioneer Floating Rate Fund, Inc. during the six-month period ended May 31, 2022. Mr. Sharkey, a senior vice president and a portfolio manager at Amundi Asset Management US, Inc.(Amundi US), is responsible for the day-to-day management of the Fund.
| Q | | How did the Fund perform during the six-month period ended May 31, 2022? |
| A | | Pioneer Floating Rate Fund, Inc. returned -5.70% at net asset value (NAV) and -18.83% at market price during the six-month period ended May 31, 2022. During the same six-month period, the Fund’s benchmark, the Standard & Poor’s/Loan Syndications & Trading Association Leveraged Loan Index (the S&P/LSTA Index), returned -1.82% at NAV. Unlike the Fund, the S&P/LSTA Index does not use leverage. While the use of leverage increases investment opportunity, it also increases investment risk. |
During the same six-month period, the average return at NAV of the 64 closed end funds in Morningstar’s Bank Loan Closed End Funds category (which may or may not be leveraged), was -2.89%, and the average return at market price of the closed end funds in the same Morningstar category was -10.70%.
The shares of the Fund were selling at a 11.5% discount to NAV on May 31, 2022. Comparatively, the shares of the Fund were selling at a 2.8% premium to NAV on November 30, 2021.
The Fund’s standardized, 30-day SEC yield was 6.6% on May 31, 2022*.
| Q | | How would you describe the environment for investing in bank loans during the six-month period ended May 31, 2022? |
| A | | As the period opened, the market appeared to shrug off concerns over the prospect of tighter Federal Reserve System (Fed) monetary policy and the rapidly spreading Omicron variant of COVID-19, as we saw solid performance for credit-sensitive categories of the fixed-income market, including bank loans. Late 2021 and early 2022 saw elevated leveraged-finance activity and loan issuance, driven by both mergers and |
| * | | The 30-day SEC yield is a standardized formula that is based on the hypothetical annualized earning power (investment income only) of the Fund’s portfolio securities during the period indicated. |
4 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
acquisitions as well as dividends extracted by private-equity investors. Record levels of collateralized loan obligation (CLO) issuance and historically high flows into loan mutual funds also supported loan valuations, leading to tighter spreads and strong performance. (Loans spreads are the interest rates over and above the rate charged to borrowers by banks.)
However, the first quarter of 2022 saw market sentiment dominated by increased geopolitical tensions, a worsening growth/inflation mix arising from a spike in commodity prices, and the prospect of rising interest rates due to changing policies of many central banks, which led to losses across most asset classes within fixed income.
Russia’s invasion of Ukraine in late February, together with US and European sanctions on Russia, led to sharp increases in energy, metals, and food prices, adding downside risk to real economic growth and adding upside risk to inflation. In addition, another round of lockdowns in China in the wake of increasing COVID-19 infection rates exacerbated the existing supply chain disruptions and raised concerns about further risks to global economic growth.
At the same time, the Fed began to move away from its highly accommodative monetary policy stance. At its mid-March meeting, the Fed’s Open Market Committee (FOMC) raised the federal funds rate target range by a quarter-point, to 0.25% - 0.50%, then enacted a second increase to the target range of 50 basis points (bps) in May, a few weeks before the end of the six-month period. The Fed also indicated that further increases in the benchmark overnight lending rate would follow rapidly. (A basis point is equal to 1/100th of a percentage point.) In addition, the Fed formally ended its pandemic-era quantitative easing program and signaled it would soon begin reducing its holdings of Treasury securities and agency mortgage-backed securities (MBS) by reinvesting only part of the proceeds from maturing securities.
Against this backdrop, loan issuance ground to a halt amid a sharp sell-off, and spreads widened to three-year highs, leading to losses in February across the broader loan market. Unlike most other fixed-income assets, the loan market posted positive returns through the end of April, because of the overall lower duration of bank loans in general, but the loan market saw a steep decline in May as investors came to fear that the Fed would feel compelled to raise interest rates at a pace that risked
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 5
pushing the economy into recession. (Duration is a measure of the sensitivity of the price, or the value of principal, of a fixed-income investment to a change in interest rates, expressed as a number of years.)
For the full six-month period ended May 31, 2022, loans generated negative returns.
| Q | | What factors had the biggest effects on the Fund’s benchmark-relative performance during the six-month period ended May 31, 2022? |
| A | | In broad terms, the Fund’s underperformance relative to the S&P/LSTA Index was driven primarily by loan selection. By loan sector, selection results for the Fund lagged within health care, steel, drugs, and utilities. Conversely, a portfolio underweight to home furnishings, selection results within conglomerates, an underweight to telecommunication services, and selection results within forest products proved additive to the Fund’s relative performance for the six-month period. The Fund’s allocations across loan-rating categories, where we favored loans rated “CCC” versus loans with “B” ratings, detracted from benchmark-relative performance, as risk-aversion among investors increased over the course of the period. |
Another detractor from benchmark-relative returns during the six-month period was the Fund’s exposure to high-yield corporate bonds. We have typically maintained a modest, out-of-benchmark exposure to high-yield corporate bonds in the portfolio, both through investments in individual names and occasionally through the use of derivatives, with the aim of helping to improve the risk/reward and liquidity profile of the portfolio. The non-benchmark allocation had a negative effect on relative returns during the six-month period, as high-yield corporates notably underperformed bank loans. In addition, the Fund’s allocations to pass-through and structured residential MBS (RMBS) detracted from benchmark-relative returns.
In terms of individual positions that detracted from the Fund’s relative performance, a number came from within health care, led by dialysis provider US Renal, as a pending lawsuit against a large competitor weighed on investors’ sentiment concerning the loan. Within the steel industry, the portfolio’s holding of a loan for Phoenix Services was a laggard during the six-month period, as the company’s results have been negatively affected by rising costs for labor and other inputs. Finally, overweight exposure to the loan for utility Eastern Power Group detracted from the Fund’s relative returns, as investors remained concerned that electricity demand from New York City would not recover fully from the effects of the pandemic.
6 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
Positive individual contributors to the Fund’s benchmark-relative returns for the six-month period included exposure to business services provider DTI Holdings, as the company’s improved operating results enabled it to refinance its loan. An allocation to the bonds of Aeromexico also contributed notably to the Fund’s relative performance, as Mexico’s flagship airline emerged from bankruptcy financing. The company’s results have been bolstered by the slow return of air travel to normal (pre-pandemic) levels. Finally, the Fund’s position in Neotech (also known as Natel Engineering), which designs and tests semiconductors for OEM (original equipment manufacturing), contributed positively to relative returns. The loans were upgraded by the ratings agencies during the period as the semiconductor supply-chain shortages started to show evidence of easing.
| Q | | How did the level of leverage in the Fund change over the six-month period ended May 31, 2022? |
| A | | The Fund employs leverage through a revolving credit facility. (See Note 10 to the Financial Statements.) |
As of May 31, 2022, 32.9% of the Fund’s total managed assets were financed by leverage (or borrowed funds), compared with 32.7% of total managed assets financed by leverage at the start of the period on November 30, 2021. During the six month period, the Fund decreased the absolute amount of funds borrowed by a total of $5.3 million, to $64.2 million as of May 31, 2022. The percentage of the Fund's total managed assets financed by leverage increased during the period due to the decrease in the total managed assets of the Fund.
| Q | | Did the Fund have any exposure to derivative securities during the six-month period ended May 31, 2022? If so, did the derivatives have any material effect on performance? |
| A | | The Fund had some exposure to forward foreign currency exchange contracts (currency forwards) during the six-month period. The currency forwards had no material effect on the Fund's performance. |
| Q | | Did the Fund’s distributions** to shareholders change during the six-month period ended May 31, 2022? |
| A | | No, the Fund’s distributions to shareholders did not change during the six-month period. The Fund’s monthly distribution rate began and ended the six-month period at the same level, at $0.05750 per share/per month. |
** Distributions/dividends are not guaranteed.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 7
| Q | | What is your investment outlook? |
| A | | The default rate on loans for the 12 months ended May 31, 2022, was 0.21% by loan volume, near historic lows, and below the historical average of slightly below 3%. The default rate by number of issuers was 0.35%, slightly above a record low of 0.26% printed in April 2022. In addition, recovery rates for loans have exceeded those for their high-yield corporate counterparts in recent years. |
Loan performance weakened notably in May as credit markets grappled with the Fed’s increasing sense of urgency concerning interest-rate hikes. We are cognizant of the risk that the Fed could “overshoot” on rate increases and send the economy into recession, which would likely create an unfavorable backdrop for credit-oriented assets in general, including loans. While it may prove challenging for the Fed to achieve a “soft” economic landing as it works to bring inflation back down to its stated long-term target of 2%, we maintain a constructive view on loan-market fundamentals over the remainder of 2022. The outlook for continued below average loan-default rates is supported, in our opinion, by interest-coverage ratios for borrowers that have been more favorable than when the economy was entering the 2008-2009 financial crisis, or at the onset of the COVID-19 pandemic in the spring of 2020. And thus, under most scenarios, we think those factors should be sufficient for the loan market to absorb increases in the bank-loan reference rate likely to result from the Fed’s steps to normalize short-term rates. Beyond 2022, we anticipate default rates could remain below average, as historical trends suggest that loan defaults typically have not peaked for nine to 12 months after the Fed has finished raising interest rates. Of course, historical precedent does not guarantee future outcomes.
The outlook for Fed interest-rate increases should be supportive of loans, in our view, due to their floating-rate feature and low interest-rate sensitivity, especially as loan interest payments have continued to rise above their floors. (A loan floor is an agreed-upon rate in the lower range of rates associated with a floating-rate product, used in derivative contracts and loan agreements).
In addition, the loan market has continued to trade at a discount to par (face) value, which has created the potential for capital appreciation. We will continue to maintain a focus on quality and careful evaluation of individual loans when choosing investments for the portfolio, especially if the Fed’s rate-raising cycle becomes more accelerated than anticipated and, at the same time, economic growth turns negative.
8 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
Please refer to the Schedule of Investments on pages 14–37 for a full listing of Fund securities.
All investments are subject to risk, including the possible loss of principal. In the past several years, financial markets have experienced increased volatility and heightened uncertainty. The market prices of securities may go up or down, sometimes rapidly or unpredictably, due to general market conditions, such as real or perceived adverse economic, political, or regulatory conditions, recessions, inflation, changes in interest or currency rates, lack of liquidity in the bond markets, the spread of infectious illness or other public health issues, armed conflict including Russia's military invasion of Ukraine, sanctions against Russia, other nations or individuals or companies and possible countermeasures, or adverse investor sentiment. These conditions may continue, recur, worsen or spread.
The Fund may invest in floating rate loans. The value of collateral, if any, securing a floating rate loan can decline or may be insufficient to meet the issuer’s obligations or may be difficult to liquidate. No active trading market may exist for many floating rate loans, and many loans are subject to restrictions on resale. Any secondary market may be subject to irregular trading activity and extended settlement periods. There is less readily available, reliable information about most floating rate loans than is the case for many other types of securities.
Securities with floating interest rates generally are less sensitive to interest rate changes but may decline in value if their interest rates do not rise as much, or as quickly, as prevailing interest rates. Unlike fixed-rate securities, floating-rate securities generally will not increase in value if interest rates decline. Changes in interest rates also will affect the amount of interest income the Fund earns on its floating-rate investments.
The Fund’s investments, payment obligations and financing terms may be based on floating rates, such as LIBOR (London Interbank Offered Rate), or SOFR (Secured Overnight Financing Rate). Plans are underway to phase out the use of LIBOR. There remains uncertainty regarding the nature of any replacement rate and the impact of the transition from LIBOR on the Fund, issuers of instruments in which the Fund invests, and financial markets generally.
The Fund may use derivatives, which may include futures and options, for a variety of purposes, including: in an attempt to hedge against adverse changes in the marketplace of securities, interest rates or currency exchange rates; as a substitute for purchasing or selling securities; to attempt to increase the Fund’s return as a non-hedging strategy that may be considered speculative; and to manage portfolio characteristics. Using derivatives can increase fund losses and reduce
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 9
opportunities for gains when the market prices, interest rates or the derivative instruments themselves behave in a way not anticipated by the Fund. These types of instruments can increase price fluctuation.
The Fund is not limited in the percentage of its assets that may be invested in illiquid securities. Illiquid securities may be difficult to sell at a price reflective of their value at times when the Fund believes it is desirable to do so and the market price of illiquid securities is generally more volatile than that of more liquid securities. Illiquid securities may be difficult to value, and investment of the Fund’s assets in illiquid securities may restrict the Fund’s ability to take advantage of market opportunities.
The Fund employs leverage through a revolving credit facility. Leverage creates significant risks, including the risk that the Fund’s income or capital appreciation from investments purchased with the proceeds of leverage will not be sufficient to cover the cost of leverage, which may adversely affect the return for shareowners.
The Fund is required to maintain certain regulatory and other asset coverage requirements in connection with the Fund’s use of leverage. In order to maintain required asset coverage levels, the Fund may be required to reduce the amount of leverage employed by the Fund, alter the composition of the Fund’s investment portfolio or take other actions at what might be inopportune times in the market. Such actions could reduce the net earnings or returns to shareowners over time, which is likely to result in a decrease in the market value of the Fund’s shares.
Investments in high-yield or lower-rated securities are subject to greater-than-average risk. The Fund may invest in securities of issuers that are in default or that are in bankruptcy.
Investing in foreign and/or emerging markets securities involves risks relating to interest rates, currency exchange rates and economic and political conditions.
The Fund invests in insurance-linked securities (ILS). The return of principal and the payment of interest on ILS are contingent on the non-occurrence of a pre-defined “trigger” event, such as a hurricane or an earthquake of a specific magnitude.
These risks may increase share price volatility.
Any information in this shareowner report regarding market or economic trends or the factors influencing the Fund’s historical or future performance are statements of opinion as of the date of this report. Past performance is no guarantee of future results.
10 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
Portfolio Summary | 5/31/22
Portfolio Diversification
(As a percentage of total investments)*
| 10 Largest Holdings | | |
| (As a percentage of total investments)* | | |
| 1 | . | Traverse Midstream Partners LLC, Advance, Term Loan, 5.25% | | |
| | | (Term SOFR + 425 bps), 9/27/24 | 1.72 | % |
| 2 | . | Team Health Holdings, Inc., Extended Term Loan, 6.284% | | |
| | | (Term SOFR + 525 bps), 3/2/27 | 1.60 | |
| 3 | . | Natel Engineering Co., Inc., Initial Term Loan, Term Loan, 7.743% | | |
| | | (LIBOR + 625 bps), 4/30/26 | 1.13 | |
| 4 | . | Upstream Newco, Inc., First Lien August 2021 Incremental Term Loan, | | |
| | | Term Loan, 5.065% (Term SOFR + 425 bps), 11/20/26 | 1.09 | |
| 5 | . | Clear Channel Outdoor Holdings, Inc., Term B Loan, Term Loan, | | |
| | | 4.739% (LIBOR + 350 bps), 8/21/26 | 0.99 | |
| 6 | . | Verscend Holding Corp., Term B-1 Loan, Term Loan, 5.06% | | |
| | | (LIBOR + 400 bps), 8/27/25 | 0.97 | |
| 7 | . | Garda World Security Corp., Term B-2 Loan, Term Loan, 5.26% | | |
| | | (LIBOR + 425 bps), 10/30/26 | 0.97 | |
| 8 | . | Altice France SA, USD TLB-13 Incremental Term Loan, Term Loan, | | |
| | | 5.411% (LIBOR + 400 bps), 8/14/26 | 0.97 | |
| 9 | . | Grupo Aeromexico SAB de CV, 8.50%, 3/17/27 (144A) | 0.87 | |
| 10 | . | US Renal Care, Inc., Initial Term Loan, Term Loan, 5.764% | | |
| | | (LIBOR + 500 bps), 6/26/26 | 0.86 | |
| * | | Excludes short-term investments and all derivative contracts except for options purchased. The Fund is actively managed, and current holdings may be different. The holdings listed should not be considered recommendations to buy or sell any securities. |
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 11
Prices and Distributions | 5/31/22
| Market Value per Share^ | | |
| |
| | 5/31/22 | 11/30/21 |
| Market Value | $9.35 | $11.90 |
| Premium/(Discount) | (11.54)% | 2.76% |
| | | |
| Net Asset Value per Share^ | |
| |
| | 5/31/22 | 11/30/21 |
| Net Asset Value | $10.57 | $11.58 |
| Distributions per Share | | | |
| Net | |
| | Investment | Short-Term | Long-Term |
| | Income | Capital Gains | Capital Gains |
| 12/1/21–5/31/22 | $0.3500 | $ — | $ — |
| Yields | | |
| | 5/31/22 | 11/30/21 |
| 30-day SEC Yield | 6.65% | 5.78% |
The data shown above represents past performance, which is no guarantee of future results.
| ^ | | Net asset value and market value are published in Barron's on Saturday, The Wall Street Journal on Monday and The New York Times on Monday and Saturday. Net asset value and market value are published daily on the Fund's website at www.amundi.com/us. |
12 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
Performance Update | 5/31/22
Investment Returns
The mountain chart on the right shows the change in market value, including reinvestment of dividends and distributions, of a $10,000 investment made in shares of Pioneer Floating Rate Fund, Inc. during the periods shown, compared with the value of the S&P/LSTA Leveraged Loan Index, which provides broad and comprehensive total return metrics of the U.S. universe of syndicated term loans.
| Average Annual Total Returns |
| (As of May 31, 2022) | |
| |
| | Net | | |
| | Asset | | S&P/LSTA |
| | Value | Market | Leveraged |
| Period | (NAV) | Price | Loan Index |
| 10 Years | 4.84% | 3.52% | 4.04% |
| 5 Years | 3.36 | 1.90 | 3.35 |
| 1 Year | -3.94 | -11.86 | -0.26 |
Call 1-800-710-0935 or visit www.amundi.com/us for the most recent month-end performance results. Current performance may be lower or higher than the performance data quoted.
Performance data shown represents past performance. Past performance is no guarantee of future results. Investment return and market price will fluctuate, and your shares may trade below NAV, due to such factors as interest rate changes, and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions. All performance is for shares of the Fund.
Shares of closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and, once issued, shares of closed-end funds are bought and sold in the open market through a stock exchange and frequently trade at prices lower than their NAV. NAV per share is total assets less total liabilities, which include preferred shares, or borrowings, as applicable, divided by the number of shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at the greater of NAV or 95% of the market price. When NAV is higher, dividends are assumed to be reinvested at prices obtained through open-market purchases under the Fund’s dividend reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes that a shareowner would pay on Fund distributions or the sale of Fund shares. Had these fees and taxes been reflected, performance would have been lower.
Index returns are calculated monthly, assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees, expenses or sales charges. The index does not use leverage. You cannot invest directly in an index.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 13
Schedule of Investments | 5/31/22
(unaudited)
| | | | |
| Principal | | | |
| Amount | | | |
| USD ($) | | | Value |
| | UNAFFILIATED ISSUERS — 148.1% | | |
| | SENIOR SECURED FLOATING RATE LOAN | | |
| | INTERESTS — 122.6% of Net Assets*(a) |
| | Advanced Materials — 1.7% | | |
| 946,918 | Gemini HDPE LLC, 2027 Advance, 4.239% (LIBOR + | | |
| | 300 bps), 12/31/27 | $ | 929,559 |
| 1,390,495 | Groupe Solmax, Inc., Initial Term Loan, 5.756% (LIBOR + | | |
| | 475 bps) , 5/29/28 | | 1,307,065 |
| | Total Advanced Materials | $ | 2,236,624 |
| | Advertising Sales — 1.5% | | |
| 2,075,531 | Clear Channel Outdoor Holdings, Inc., Term B Loan, | | |
| | 4.739% (LIBOR + 350 bps), 8/21/26 | $ | 1,902,859 |
| | Total Advertising Sales | $ | 1,902,859 |
| | Advertising Services — 1.8% | | |
| 920,000 | CB Poly US Holdings, Inc., Initial Term Loan, 6.811% | | |
| | (Term SOFR + 550 bps), 5/18/29 | $ | 894,700 |
| 497,500 | Dotdash Meredith, Inc., Term Loan B, 4.866% (Term | | |
| | SOFR + 400 bps), 12/1/28 | | 478,222 |
| 995,000 | Summer BC Holdco B S.a r.l. USD Additional Facility B2, | | |
| | 5.506% (LIBOR + 450 bps), 12/4/26 | | 953,956 |
| | Total Advertising Services | $ | 2,326,878 |
| | Aerospace & Defense — 2.2% | | |
| 902,500 | ADS Tactical, Inc., Initial Term Loan, 6.75% (LIBOR + | | |
| | 575 bps), 3/19/26 | $ | 852,863 |
| 691,276 | Spirit AeroSystems, Inc., (fka Mid-Western Aircraft | | |
| | Systems, Inc. and Onex Wind Finance LP.), 2021 | | |
| | Refinancing Term Loan, 4.81% (LIBOR + | | |
| | 375 bps), 1/15/25 | | 675,290 |
| 1,537,777 | WP CPP Holdings, LLC, First Lien Initial Term Loan, | | |
| | 4.99% (LIBOR + 375 bps), 4/30/25 | | 1,387,843 |
| | Total Aerospace & Defense | $ | 2,915,996 |
| | Airlines — 2.7% | | |
| 500,000 | AAdvantage Loyalty IP, Ltd. (American Airlines, Inc.), | | |
| | Initial Term Loan, 5.813% (LIBOR + | | |
| | 475 bps) , 4/20/28 | $ | 498,750 |
| 1,267,566 | Allegiant Travel Co., Replacement Term Loan, 4.444% | | |
| | (LIBOR + 300 bps), 2/5/24 | | 1,241,422 |
| 185,000 | LATAM Airlines Group S.A., Tranche A Facility, 8.234% | | |
| | (Term SOFR + 750 bps), 8/8/22 | | 185,809 |
| 1,250,000 | Mileage Plus Holdings LLC (Mileage Plus Intellectual | | |
| | Property Assets, Ltd.), Initial Term Loan, 6.25% |
| | (LIBOR + 525 bps), 6/21/27 | | 1,271,008 |
| 340,000 | SkyMiles IP, Ltd. (Delta Air Lines, Inc.), Initial Term | | |
| | Loan, 4.75% (LIBOR + 375 bps), 10/20/27 | | 344,108 |
| | Total Airlines | $ | 3,541,097 |
The accompanying notes are an integral part of these financial statements.
14 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
| Principal | | | | |
| Amount | | | | |
| USD ($) | | | | Value |
| | | Airport Development & Maintenance — 0.2% |
| 250,000 | | KKR Apple Bidco LLC, Second Lien Initial Term Loan, | | |
| | | 6.81% (LIBOR + 575 bps), 9/21/29 | $ | 244,375 |
| | | Total Airport Development & Maintenance | $ | 244,375 |
| | | Applications Software — 0.9% | | |
| 250,000 | | EP Purchaser LLC, First Lien Closing Date Term Loan, | | |
| | | 4.506% (LIBOR + 350 bps), 11/6/28 | $ | 244,125 |
| 981,250 | | Loyalty Ventures, Inc., Term B Loan, 5.56% (LIBOR + | | |
| | | 450 bps), 11/3/27 | | 919,922 |
| | | Total Applications Software | $ | 1,164,047 |
| | | Auction House & Art Dealer — 0.4% | | |
| 496,250 | | Sotheby’s, 2021 Second Refinancing Term Loan, | | |
| | | 5.544% (LIBOR + 450 bps), 1/15/27 | $ | 483,223 |
| | | Total Auction House & Art Dealer | $ | 483,223 |
| | | Auto Parts & Equipment — 3.7% | | |
| 645,125 | | Adient US LLC, Term B-1 Loan, 4.31% (LIBOR + | | |
| | | 325 bps), 4/10/28 | $ | 609,643 |
| 595,500 | | Autokiniton US Holdings, Inc., (aka L&W, Inc.) Closing | | |
| | | Date Term B Loan, 5.345% (LIBOR + 450 bps), 4/6/28 | | 567,214 |
| 1,715,245 | | First Brands Group LLC, First Lien 2021 Term Loan, | | |
| | | 6.00% (Term SOFR + 500 bps), 3/30/27 | | 1,649,495 |
| 1,577,648 | | IXS Holdings, Inc., Initial Term Loan, 5.00% (LIBOR + | | |
| | | 425 bps), 3/5/27 | | 1,416,594 |
| 746,250 | | Wheel Pros, Inc., First Lien Initial Term Loan, 5.428% | | |
| | | (LIBOR + 450 bps), 5/11/28 | | 620,631 |
| | | Total Auto Parts & Equipment | $ | 4,863,577 |
| | | Auto-Truck Trailers — 1.8% | | |
| 1,491,244 | | American Trailer World Corp., First Lien Initial Term | | |
| | | Loan, 4.634% (Term SOFR + 350 bps), 3/3/28 | $ | 1,345,847 |
| 222,222 | | Novae LLC, Delayed Draw Term Loan, 5.919% (Term | | |
| | | SOFR + 500 bps), 12/22/28 | | 216,389 |
| 777,778 | | Novae LLC, Tranche B Term Loan, 5.75% (Term SOFR + | | |
| | | 500 bps), 12/22/28 | | 757,361 |
| | | Total Auto-Truck Trailers | $ | 2,319,597 |
| | | Beverages — 0.5% | | |
| 166,667 | | Naked Juice LLC, First Lien Initial Term Loan, | | |
| | | 4.001% (Term SOFR + 325 bps), 1/24/29 | $ | 158,708 |
| 500,000 | (b) | Pegasus BidCo BV, (USD) Term Loan, 5/5/29 | | 495,313 |
| | | Total Beverages | $ | 654,021 |
| | | Broadcast Service & Programing — 0.5% | | |
| 750,000 | | Univision Communications, Inc., First Lien Initial Term | | |
| | | Loan, 4.31% (LIBOR + 325 bps), 1/31/29 | $ | 720,000 |
| | | Total Broadcast Service & Programing | $ | 720,000 |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 15
Schedule of Investments | 5/31/22
(unaudited) (continued)
| | | | | |
| Principal | | | | |
| Amount | | | | |
| USD ($) | | | | Value |
| | | Building & Construction — 1.4% | | |
| 446,640 | | DG Investment Intermediate Holdings 2, Inc., First Lien | | |
| | | Closing Date Initial Term Loan, 4.56% (LIBOR + |
| | | 350 bps) , 3/31/28 | $ | 434,357 |
| 500,000 | | DG Investment Intermediate Holdings 2, Inc., Second | | |
| | | Lien Initial Term Loan, 7.81% (LIBOR + | | |
| | | 675 bps) , 3/30/29 | | 486,250 |
| 930,107 | | Service Logic Acquisition, Inc., First Lien Closing Date | | |
| | | Initial Term Loan, 5.005% (LIBOR + 400 bps), 10/29/27 | | 892,904 |
| | | Total Building & Construction | $ | 1,813,511 |
| | | Building & Construction Products — 1.8% |
| 1,466,155 | | Cornerstone Building Brands, Inc., Tranche B Term | | |
| | | Loan, 4.125% (LIBOR + 325 bps), 4/12/28 | $ | 1,315,874 |
| 1,140,131 | | CP Atlas Buyer, Inc., Term B Loan, 4.81% (LIBOR + | | |
| | | 375 bps) , 11/23/27 | | 1,039,736 |
| | | Total Building & Construction Products | $ | 2,355,610 |
| | | Building Production — 1.7% | | |
| 498,750 | | Chariot Buyer LLC., First Lien Initial Term Loan, 4.506% | | |
| | | (LIBOR + 350 bps), 11/3/28 | $ | 461,344 |
| 997,500 | | Pelican Products, Inc., First Lien Initial Term Loan, | | |
| | | 5.256% (LIBOR + 425 bps), 12/29/28 | | 948,248 |
| 847,875 | | Vector WP HoldCo., Inc. (Vector Canada Acquisition | | |
| | | ULC), Initial Term B Loan, 5.875% (LIBOR + |
| | | 500 bps) , 10/12/28 | | 822,439 |
| | | Total Building Production | $ | 2,232,031 |
| | | Building-Heavy Construction — 0.5% | | |
| 497,500 | | Aegion Corp., Initial Term Loan, 5.637% (LIBOR + | | |
| | | 475 bps) , 5/17/28 | $ | 479,466 |
| 249,372 | | Artera Services LLC, First Lien Tranche B Term Loan, | | |
| | | 4.506% (LIBOR + 350 bps), 3/6/25 | | 196,380 |
| | | Total Building-Heavy Construction | $ | 675,846 |
| | | Building-Maintenance & Service — 0.5% | | |
| 746,250 | | ArchKey Holdings, Inc., First Lien Initial Term Loan, | | |
| | | 6.489% (LIBOR + 525 bps), 6/29/28 | $ | 708,938 |
| | | Total Building-Maintenance & Service | $ | 708,938 |
| | | Cable & Satellite Television — 1.6% | | |
| 573,000 | | DIRECTV Financing LLC, Closing Date Term Loan, | | |
| | | 6.06% (LIBOR + 500 bps), 8/2/27 | $ | 554,537 |
| 1,047,500 | (b) | Radiate Holdco LLC, Amendment No. 6 Term | | |
| | | Loan, 9/25/26 | | 1,019,676 |
| 500,000 | | Virgin Media Bristol LLC, Facility Q, 4.125% (LIBOR + | | |
| | | 325 bps) , 1/31/29 | | 491,719 |
| | | Total Cable & Satellite Television | $ | 2,065,932 |
The accompanying notes are an integral part of these financial statements.
16 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
| Principal | | | | |
| Amount | | | | |
| USD ($) | | | | Value |
| | Casino Hotels — 1.2% | | | |
| 1,083,500 | Caesars Resort Collection LLC, Term B-1 Loan, 4.56% | | | |
| | (LIBOR + 350 bps), 7/21/25 | | $ | 1,071,762 |
| 500,000 | Century Casinos, Inc., Term B Facility Loan, 6.842% | | | |
| | (Term SOFR + 600 bps), 4/2/29 | | | 484,375 |
| | Total Casino Hotels | | $ | 1,556,137 |
| | Casino Services — 1.6% | | | |
| 545,391 | Everi Holdings, Inc., Term B Loan, 3.56% (LIBOR + | | | |
| | 250 bps) , 8/3/28 | $ | 532,438 |
| 497,500 | J&J Ventures Gaming LLC, Initial Term Loan, 5.06% | | | |
| | (LIBOR + 400 bps), 4/26/28 | | | 488,172 |
| 1,086,250 | Lucky Bucks LLC, Initial Term Loan, 6.25% (LIBOR + | | | |
| | 550 bps) , 7/30/27 | | 1,015,644 |
| | Total Casino Services | | $ | 2,036,254 |
| | Cellular Telecom — 3.3% | | | |
| 1,946,933 | Altice France SA, USD TLB-13 Incremental Term Loan, | | | |
| | 5.411% (LIBOR + 400 bps), 8/14/26 | | $ | 1,848,774 |
| 548,614 | CCI Buyer, Inc., First Lien Initial Term Loan, 4.75% (Term | | | |
| | SOFR + 400 bps), 12/17/27 | | | 526,807 |
| 996,250 | Gogo Intermediate Holdings LLC, Initial Term Loan, | | | |
| | 4.989% (LIBOR + 375 bps), 4/30/28 | | | 967,857 |
| 746,250 | Xplornet Communications, Inc., First Lien Refinancing | | | |
| | Term Loan, 5.06% (LIBOR + 400 bps), 10/2/28 | | | 690,281 |
| 350,000 | Xplornet Communications, Inc., Second Lien Initial | | | |
| | Term Loan, 8.059% (LIBOR + 700 bps), 10/1/29 | | | 323,750 |
| | Total Cellular Telecom | | $ | 4,357,469 |
| | Chemicals-Diversified — 1.6% | | | |
| 1,000,000 | ARC Falcon I, Inc., Second Lien Initial Term Loan, 8.06% | | | |
| | (LIBOR + 700 bps), 9/30/29 | | $ | 965,000 |
| 746,250 | Geon Performance Solutions LLC (Fka. Echo US | | | |
| | Holdings, LLC), Initial Term Loan, 5.56% (LIBOR + | | | |
| | 450 bps) , 8/18/28 | | 729,460 |
| 445,000 | Hexion Holdings Corporation, First Lien Initial Term | | | |
| | Loan, 5.924% (Term SOFR + 450 bps), 3/15/29 | | | 423,306 |
| | Total Chemicals-Diversified | | $ | 2,117,766 |
| | Chemicals-Specialty — 1.7% | | | |
| 1,089,000 | Cpc Acquisition Corp., First Lien Initial Term Loan, | | | |
| | 4.756% (LIBOR + 375 bps), 12/29/27 | | $ | 1,011,863 |
| 595,507 | Herens US Holdco Corp., USD Facility B, 5.006% | | | |
| | (LIBOR + 400 bps), 7/3/28 | | | 554,008 |
| 717,777 | LSF11 Skyscraper Holdco S.a r.l. USD Facility B3, | | | |
| | 4.506% (LIBOR + 350 bps), 9/29/27 | | | 696,244 |
| 18,851 | Nouryon USA LLC, Initial Dollar Term Loan, 4.006% | | | |
| | (LIBOR + 300 bps), 10/1/25 | | | 18,277 |
| | Total Chemicals-Specialty | | $ | 2,280,392 |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 17
Schedule of Investments | 5/31/22
(unaudited) (continued)
| Principal | | | |
| Amount | | | |
| USD ($) | | | Value |
| | Commercial Services — 2.9% | | |
| 746,250 | CoreLogic, Inc. (fka First American Corporation), First | | |
| | Lien Initial Term Loan, 4.563% (LIBOR + | | |
| | 350 bps) , 6/2/28 | $ | 689,162 |
| 594,015 | Indy US Bidco LLC, 2021 Refinancing Dollar Term | | |
| | Loan, 4.81% (LIBOR + 375 bps), 3/6/28 | | 577,679 |
| 641,875 | TruGreen LP, First Lien Second Refinancing Term | | |
| | Loan, 5.06% (LIBOR + 400 bps), 11/2/27 | | 620,212 |
| 1,897,082 | Verscend Holding Corp., Term B-1 Loan, 5.06% | | |
| | (LIBOR + 400 bps), 8/27/25 | | 1,863,883 |
| | Total Commercial Services | $ | 3,750,936 |
| | Communications Software — 0.4% | | |
| 498,750 | Mavenir Systems, Inc., Initial Term Loan, 6.205% | | |
| | (LIBOR + 475 bps), 8/18/28 | $ | 490,022 |
| | Total Communications Software | $ | 490,022 |
| | Computer Data Security — 1.5% | | |
| 1,144,250 | Magenta Buyer LLC, First Lien Initial Term Loan, 6.23% | | |
| | (LIBOR + 500 bps), 7/27/28 | $ | 1,057,001 |
| 896,248 | Vision Solutions, Inc. (Precisely Software Incorporated), | | |
| | First Lien Third Amendment Term Loan, 5.184% |
| | (LIBOR + 400 bps), 4/24/28 | | 855,917 |
| | Total Computer Data Security | $ | 1,912,918 |
| | Computer Services — 2.0% | | |
| 1,126,488 | Ahead DB Holdings LLC, First Lien Term B Loan, 4.76% | | |
| | (LIBOR + 375 bps), 10/18/27 | $ | 1,085,934 |
| 972,112 | Peraton Corp., First Lien Term B Loan, 4.81% (LIBOR + | | |
| | 375 bps) , 2/1/28 | | 944,570 |
| 597,000 | Sitel Group, Initial Dollar Term Loan, 4.81% (LIBOR + | | |
| | 375 bps) , 8/28/28 | | 580,302 |
| | Total Computer Services | $ | 2,610,806 |
| | Computer Software — 3.1% | | |
| 1,250,000 | Cornerstone OnDemand, Inc., First Lien Initial Term | | |
| | Loan, 4.81% (LIBOR + 375 bps), 10/16/28 | $ | 1,190,625 |
| 498,728 | Help/Systems Holdings, Inc., First Lien Seventh | | |
| | Amendment Refinancing Loan, 4.813% (Term SOFR + | | |
| | 400 bps) , 11/19/26 | | 482,675 |
| 497,487 | Idera, Inc., First Lien Term B-1 Loan, 4.52% (LIBOR + | | |
| | 375 bps) , 3/2/28 | | 480,386 |
| 900,000 | McAfee Corp., Tranche B-1 Term Loan, 4.842% (Term | | |
| | SOFR + 400 bps), 3/1/29 | | 856,350 |
| 1,039,500 | Rackspace Technology Global, Inc., First Lien 2021 | | |
| | Term B Loan, 3.50% (LIBOR + 275 bps), 2/15/28 | | 994,022 |
| | Total Computer Software | $ | 4,004,058 |
The accompanying notes are an integral part of these financial statements.
18 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
| | | | | |
| Principal | | | | |
| Amount | | | | |
| USD ($) | | | | Value |
| | | Computers-Integrated Systems — 0.5% | | |
| 556,708 | | Atlas CC Acquisition Corp., First Lien Term B Loan, | | |
| | | 5.825% (LIBOR + 425 bps), 5/25/28 | $ | 532,005 |
| 113,229 | | Atlas CC Acquisition Corp., First Lien Term C Loan, | | |
| | | 5.825% (LIBOR + 425 bps), 5/25/28 | | 108,204 |
| | | Total Computers-Integrated Systems | $ | 640,209 |
| | | Consulting Services — 1.3% | | |
| 1,042,491 | | Ankura Consulting Group LLC, First Lien Closing Date | | |
| | | Term Loan, 5.534% (Term SOFR + 450 bps), 3/17/28 | $ | 1,008,610 |
| 723,385 | | MAG DS Corp., Initial Term Loan, 6.506% (LIBOR + | | |
| | | 550 bps) , 4/1/27 | | 674,557 |
| | | Total Consulting Services | $ | 1,683,167 |
| | | Consumer Products — 0.8% | | |
| 1,354,281 | | Instant Brands Holdings, Inc., Initial Loan, 7.076% | | |
| | | (LIBOR + 500 bps), 4/12/28 | $ | 1,083,425 |
| | | Total Consumer Products | $ | 1,083,425 |
| | | Containers-Metal & Glass — 0.7% | | |
| 985,031 | | Plaze, Inc., 2021-1 Term Loan, 6.25% (LIBOR + | | |
| | | 375 bps) , 8/3/26 | $ | 935,780 |
| | | Total Containers-Metal & Glass | $ | 935,780 |
| | | Containers-Paper & Plastic — 2.4% | | |
| 494,987 | | Charter Next Generation, Inc., First Lien 2021 Initial | | |
| | | Term Loan, 4.81% (LIBOR + 375 bps), 12/1/27 | $ | 477,663 |
| 785,299 | | Pregis TopCo, LLC, First Lien Initial Term Loan, 5.06% | | |
| | | (LIBOR + 400 bps), 7/31/26 | | 753,887 |
| 1,297,739 | | ProAmpac PG Borrower LLC, First Lien 2020-1 Term | | |
| | | Loan, 4.712% (LIBOR + 375 bps), 11/3/25 | | 1,239,990 |
| 54,385 | (c) | Trident TPI Holdings, Inc., Tranche B-3 Delayed Draw | | |
| | | Term Loan, 5.06% (LIBOR + 400 bps), 9/15/28 | | 52,180 |
| 609,978 | | Trident TPI Holdings, Inc., Tranche B-3 Initial Term Loan, | | |
| | | 5.06% (LIBOR + 400 bps), 9/15/28 | | 585,252 |
| | | Total Containers-Paper & Plastic | $ | 3,108,972 |
| | | Cosmetics & Toiletries — 0.6% | | |
| 776,250 | | Sunshine Luxembourg VII S.a r.l. Facility B3, 4.756% | | |
| | | (LIBOR + 375 bps), 10/1/26 | $ | 746,309 |
| | | Total Cosmetics & Toiletries | $ | 746,309 |
| | | Cruise Lines — 1.2% | | |
| 1,621,125 | | Carnival Corp., Initial Advance, 3.75% (LIBOR + | | |
| | | 300 bps) , 6/30/25 | $ | 1,569,114 |
| | | Total Cruise Lines | $ | 1,569,114 |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 19
Schedule of Investments | 5/31/22
(unaudited) (continued)
| | | | |
| Principal | | | |
| Amount | | | |
| USD ($) | | | Value |
| | Data Processing & Management — 0.5% | | |
| 550,000 | DTI Holdco, Inc., First Lien Initial Term Loan, 5.722% | | |
| | (Term SOFR + 475 bps), 4/26/29 | $ | 518,804 |
| 166,667 | Dun & Bradstreet Corp., 2022 Incremental Term B-2 | | |
| | Loan, 4.225% (Term SOFR + 325 bps), 1/18/29 | | 160,903 |
| | Total Data Processing & Management | $ | 679,707 |
| | Dialysis Centers — 1.3% | | |
| 2,049,166 | US Renal Care, Inc., Initial Term Loan, 5.764% (LIBOR + | | |
| | 500 bps) , 6/26/26 | $ | 1,654,519 |
| | Total Dialysis Centers | $ | 1,654,519 |
| | Distribution & Wholesale — 1.2% | | |
| 600,000 | AIP RD Buyer Corp., First Lien Term Loan B, 4.992% | | |
| | (SOFR + 425 bps), 12/22/28 | $ | 583,500 |
| 1,100,795 | Patriot Container Corp. (aka Wastequip), First Lien | | |
| | Closing Date Term Loan, 4.75% (LIBOR + | | |
| | 375 bps) , 3/20/25 | | 996,219 |
| | Total Distribution & Wholesale | $ | 1,579,719 |
| | E-Commerce — 1.3% | | |
| 495,000 | CNT Holdings I Corp., First Lien Initial Term Loan, | | |
| | 4.345% (LIBOR + 350 bps), 11/8/27 | $ | 482,377 |
| 275,000 | Olaplex, Inc., Initial Term Loan, 4.799% (Term SOFR + | | |
| | 375 bps) , 2/23/29 | | 267,438 |
| 500,000 | TA TT Buyer LLC, First Lien Initial Term Loan, 5.901% | | |
| | (Term SOFR + 525 bps), 4/2/29 | | 490,000 |
| 454,779 | Trader Corp., First Lien 2017 Refinancing Term Loan, | | |
| | 4.06% (LIBOR + 300 bps), 9/28/23 | | 450,231 |
| | Total E-Commerce | $ | 1,690,046 |
| | Electric-Generation — 1.6% | | |
| 1,589,066 | Eastern Power, LLC (Eastern Covert Midco, LLC), Term | | |
| | Loan, 4.756% (LIBOR + 375 bps), 10/2/25 | $ | 1,145,866 |
| 982,500 | Hamilton Projects Acquiror LLC, Term Loan, 5.506% | | |
| | (LIBOR + 450 bps), 6/17/27 | | 967,456 |
| | Total Electric-Generation | $ | 2,113,322 |
| | Electric-Integrated — 2.3% | | |
| 1,153,093 | Constellation Renewables, LLC, Loan, 4.08% (LIBOR + | | |
| | 250 bps) , 12/15/27 | $ | 1,130,991 |
| 1,429,537 | PG&E Corp., Term Loan, 4.063% (LIBOR + | | |
| | 300 bps) , 6/23/25 | | 1,392,906 |
| 479,452 | Pike Corp., 2028 Initial Term Loan, 4.06% (LIBOR + | | |
| | 300 bps) , 1/21/28 | | 464,469 |
| | Total Electric-Integrated | $ | 2,988,366 |
The accompanying notes are an integral part of these financial statements.
20 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
| Principal | | | |
| Amount | | | |
| USD ($) | | | Value |
| | Electronic Composition — 3.7% | | |
| 1,062,665 | Compass Power Generation, L.L.C., Tranche B-2 Term | | |
| | Loan, 5.284% (Term SOFR + 425 bps), 4/14/29 | $ | 1,034,770 |
| 1,705,302 | Energy Acquisition LP, First Lien Initial Term Loan, | | |
| | 5.31% (LIBOR + 425 bps), 6/26/25 | | 1,606,715 |
| 2,221,705 | Natel Engineering Co., Inc., Initial Term Loan, 7.743% | | |
| | (LIBOR + 625 bps), 4/30/26 | | 2,162,459 |
| | Total Electronic Composition | $ | 4,803,944 |
| | E-Marketing & Information — 0.2% | | |
| 331,220 | Trader Interactive LLC (fka Dominion Web | | |
| | Solutions LLC), Initial Term Loan, 4.81% (LIBOR + | | |
| | 375 bps), 7/28/28 | $ | 325,423 |
| | Total E-Marketing & Information | $ | 325,423 |
| | Engines — 1.0% | | |
| 1,300,000 | Arcline FM Holdings LLC, Second Lien Term Loan, | | |
| | 9.00% (LIBOR + 825 bps), 6/25/29 | $ | 1,261,000 |
| | Total Engines | $ | 1,261,000 |
| | Enterprise Software & Services — 0.4% | | |
| 497,500 | Skopima Consilio Parent LLC, First Lien Initial Term | | |
| | Loan, 5.06% (LIBOR + 400 bps), 5/12/28 | $ | 473,869 |
| | Total Enterprise Software & Services | $ | 473,869 |
| | Finance-Leasing Company — 0.4% | | |
| 564,191 | Fly Willow Funding Ltd., Term Loan B, 7.012% | | |
| | (LIBOR + 600 bps), 10/8/25 | $ | 565,954 |
| | Total Finance-Leasing Company | $ | 565,954 |
| | Food-Dairy Products — 1.2% | | |
| 1,723,750 | Chobani LLC., 2020 New Term Loan, 4.56% (LIBOR + | | |
| | 350 bps), 10/25/27 | $ | 1,610,270 |
| | Total Food-Dairy Products | $ | 1,610,270 |
| | Footwear & Related Apparel — 0.5% | | |
| 750,000 | Crocs, Inc., Term Loan, 4.00% (Term SOFR + | | |
| | 350 bps), 2/20/29 | $ | 705,000 |
| | Total Footwear & Related Apparel | $ | 705,000 |
| | Gambling (Non-Hotel) — 0.5% | | |
| 613,105 | Enterprise Development Authority, Term B Loan, | | |
| | 5.31% (LIBOR + 425 bps), 2/28/28 | $ | 597,778 |
| | Total Gambling (Non-Hotel) | $ | 597,778 |
| | Housewares — 0.4% | | |
| 482,500 | Ozark Holdings LLC, 2020 Refinancing Term Loan, | | |
| | 4.81% (LIBOR + 375 bps), 12/16/27 | $ | 466,819 |
| | Total Housewares | $ | 466,819 |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 21
Schedule of Investments | 5/31/22
(unaudited) (continued)
| | | | |
| Principal | | | |
| Amount | | | |
| USD ($) | | | Value |
| | Human Resources — 3.1% | | |
| 990,000 | CCRR Parent, Inc., First Lien Initial Term Loan, 4.76% | | |
| | (LIBOR + 375 bps), 3/6/28 | $ | 955,350 |
| 3,480,469 | Team Health Holdings, Inc., Extended Term Loan, | | |
| | 6.284% (Term SOFR + 525 bps), 3/2/27 | | 3,054,112 |
| | Total Human Resources | $ | 4,009,462 |
| | Independ Power Producer — 1.1% | | |
| 1,458,604 | EFS Cogen Holdings I LLC, Term B Advance, 4.51% | | |
| | (LIBOR + 350 bps), 10/1/27 | $ | 1,389,685 |
| | Total Independ Power Producer | $ | 1,389,685 |
| | Internet Content — 0.3% | | |
| 410,719 | Hunter US Bidco, Inc., First Lien Initial Dollar Term | | |
| | Loan, 5.256% (LIBOR + 425 bps), 8/19/28 | $ | 400,451 |
| | Total Internet Content | $ | 400,451 |
| | Investment Management & Advisory Services — 1.0% | | |
| 496,250 | Edelman Financial Engines Center LLC, First Lien 2021 | | |
| | Initial Term Loan, 4.56% (LIBOR + 350 bps), 4/7/28 | $ | 477,951 |
| 1,000,000 | LHS Borrower LLC, Initial Term Loan, 5.784% (Term | | |
| | SOFR + 475 bps), 2/16/29 | | 870,000 |
| | Total Investment Management & Advisory Services | $ | 1,347,951 |
| | Lottery Services — 0.6% | | |
| 800,000 | Scientific Games Corp., Term Loan, 4.175% (Term | | |
| | SOFR + 350 bps), 4/4/29 | $ | 770,375 |
| | Total Lottery Services | $ | 770,375 |
| | Machinery — 1.7% | | |
| 785,714 | East West Manufacturing LLC, Initial Term Loan, | | |
| | 6.50% (Term SOFR + 575 bps), 12/22/28 | $ | 746,429 |
| 1,496,250 | Engineered Components & Systems LLC, First Lien | | |
| | Initial Term Loan, 6.845% (LIBOR + 600 bps), 8/2/28 | | 1,421,437 |
| | Total Machinery | $ | 2,167,866 |
| | Machinery-Pumps — 0.7% | | |
| 974,987 | Circor International, Inc., Initial Term Loan, 6.461% | | |
| | (LIBOR + 550 bps), 12/20/28 | $ | 935,987 |
| | Total Machinery-Pumps | $ | 935,987 |
| | Medical Diagnostic Imaging — 0.6% | | |
| 842,264 | US Radiology Specialists, Inc. (US Outpatient Imaging | | |
| | Services, Inc.), Closing Date Term Loan, 6.256% |
| | (LIBOR + 525 bps), 12/15/27 | $ | 796,361 |
| | Total Medical Diagnostic Imaging | $ | 796,361 |
The accompanying notes are an integral part of these financial statements.
22 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
| Principal | | | |
| Amount | | | |
| USD ($) | | | Value |
| | Medical Information Systems — 0.9% | | |
| 769,565 | athenahealth, Inc., Initial Term Loan, 4.363% (Term | | |
| | SOFR + 350 bps), 2/15/29 | $ | 736,619 |
| 495,010 | Azalea TopCo, Inc., First Lien 2021 Term Loan, 4.989% | | |
| | (LIBOR + 375 bps), 7/24/26 | | 473,971 |
| | Total Medical Information Systems | $ | 1,210,590 |
| | Medical Labs & Testing Services — 2.2% | | |
| 1,165,224 | Envision Healthcare Corp., Initial Term Loan, 4.81% | | |
| | (LIBOR + 375 bps), 10/10/25 | $ | 464,997 |
| 494,962 | eResearchTechnology, Inc., First Lien Initial Term Loan, | | |
| | 5.50% (LIBOR + 450 bps), 2/4/27 | | 478,051 |
| 1,466,438 | FC Compassus LLC, Term B-1 Loan, 5.31% (LIBOR + | | |
| | 425 bps) , 12/31/26 | | 1,428,555 |
| 496,250 | Sound Inpatient Physicians Holdings LLC, First Lien | | |
| | 2021 Incremental Term Loan, 4.006% (LIBOR + |
| | 300 bps) , 6/27/25 | | 471,437 |
| | Total Medical Labs & Testing Services | $ | 2,843,040 |
| | Medical Products — 1.1% | | |
| 1,247,595 | NMN Holdings III Corp., First Lien Closing Date Term | | |
| | Loan, 6.25% (LIBOR + 375 bps), 11/13/25 | $ | 1,175,858 |
| 215,530 | NMN Holdings III Corp., First Lien Delayed Draw Term | | |
| | Loan, 4.81% (LIBOR + 375 bps), 11/13/25 | | 203,138 |
| | Total Medical Products | $ | 1,378,996 |
| | Medical-Biomedical & Generation — 1.0% |
| 1,396,500 | ANI Pharmaceuticals, Inc., Initial Term Loan, 7.06% | | |
| | (LIBOR + 600 bps), 11/19/27 | $ | 1,355,478 |
| | Total Medical-Biomedical & Generation | $ | 1,355,478 |
| | Medical-Drugs — 1.8% | | |
| 1,481,733 | Endo Luxembourg Finance Company I S.a r.l., 2021 | | |
| | Term Loan, 6.062% (LIBOR + 500 bps), 3/27/28 | $ | 1,155,487 |
| 496,250 | Jazz Pharmaceuticals Public Limited Company, Initial | | |
| | Dollar Term Loan, 4.56% (LIBOR + 350 bps), 5/5/28 | | 486,369 |
| 705,883 | Padagis LLC, Term B Loan, 5.719% (LIBOR + | | |
| | 475 bps) , 7/6/28 | | 684,706 |
| | Total Medical-Drugs | $ | 2,326,562 |
| | Medical-HMO — 0.7% | | |
| 992,500 | One Call Corp., First Lien Term B Loan, 6.688% (LIBOR + | | |
| | 550 bps) , 4/22/27 | $ | 863,475 |
| | Total Medical-HMO | $ | 863,475 |
| | Medical-Hospitals — 1.0% | | |
| 1,508,209 | Quorum Health Corp., Exit Term Loan, 8.75% (LIBOR + | | |
| | 775 bps) , 4/29/25 | $ | 1,176,403 |
| 207,900 | Surgery Center Holdings, Inc., 2021 New Term Loan, | | |
| | 4.60% (LIBOR + 375 bps), 8/31/26 | | 199,728 |
| | Total Medical-Hospitals | $ | 1,376,131 |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 23
Schedule of Investments | 5/31/22
(unaudited) (continued)
| Principal | | | |
| Amount | | | |
| USD ($) | | | Value |
| | Medical-Outpatient & Home Medicine — 0.3% |
| 420,000 | Medical Solutions Holdings, Inc., First Lien Initial Term | | |
| | Loan, 4.00% (LIBOR + 350 bps), 11/1/28 | $ | 402,150 |
| | Total Medical-Outpatient & Home Medicine | $ | 402,150 |
| | Medical-Wholesale Drug Distribution — 0.6% |
| 868,748 | Gainwell Acquisition Corp., First Lien Term B Loan, | | |
| | 5.006% (LIBOR + 400 bps), 10/1/27 | $ | 851,373 |
| | Total Medical-Wholesale Drug Distribution | $ | 851,373 |
| | Metal Processors & Fabrication — 1.8% | | |
| 400,000 | AZZ Inc., Initial Term Loan, 5.384% (Term SOFR + | | |
| | 425 bps) , 5/13/29 | $ | 387,500 |
| 497,500 | Grinding Media Inc. (Molycop Ltd.), First Lien Initial | | |
| | Term Loan, 4.796% (LIBOR + 400 bps), 10/12/28 | | 474,490 |
| 744,375 | Tiger Acquisition LLC, First Lien Initial Term Loan, | | |
| | 4.31% (LIBOR + 325 bps), 6/1/28 | | 676,102 |
| 827,269 | WireCo WorldGroup, Inc., Initial Term Loan, 5.688% | | |
| | (LIBOR + 425 bps), 11/13/28 | | 809,172 |
| | Total Metal Processors & Fabrication | $ | 2,347,264 |
| | Metal-Iron — 0.7% | | |
| 10,024 | TMS International Corp., Term B-2 Loan, 3.989% | | |
| | (LIBOR + 275 bps), 8/14/24 | $ | 9,573 |
| 987,500 | TMS International Corp., Term B-3 Loan, 3.989% | | |
| | (LIBOR + 275 bps), 8/14/24 | | 943,063 |
| | Total Metal-Iron | $ | 952,636 |
| | Multimedia — 0.3% | | |
| 415,625 | EW Scripps Co., The Tranche B-3 Term Loan, 3.81% | | |
| | (LIBOR + 275 bps), 1/7/28 | $ | 406,620 |
| | Total Multimedia | $ | 406,620 |
| | Networking Products — 0.9% | | |
| 1,428,883 | GoTo Group, Inc., First Lien Initial Term Loan, 5.678% | | |
| | (LIBOR + 475 bps), 8/31/27 | $ | 1,238,961 |
| | Total Networking Products | $ | 1,238,961 |
| | Office Automation & Equipment — 0.6% | | |
| 891,000 | Pitney Bowes, Inc., Refinancing Tranche B Term Loan, | | |
| | 5.06% (LIBOR + 400 bps), 3/17/28 | $ | 850,905 |
| | Total Office Automation & Equipment | $ | 850,905 |
| | Oil-Field Services — 1.1% | | |
| 1,435,000 | ProFrac Holdings II, LLC, Term Loan, 10.007% (Term | | |
| | SOFR + 850 bps), 3/4/25 | $ | 1,413,475 |
| | Total Oil-Field Services | $ | 1,413,475 |
The accompanying notes are an integral part of these financial statements.
24 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
| Principal | | | | |
| Amount | | | | |
| USD ($) | | | | Value |
| | | Paper & Related Products — 1.1% | | |
| 992,500 | | Schweitzer-Mauduit International, Inc., Term B Loan, | | |
| | | 4.812% (LIBOR + 375 bps), 4/20/28 | $ | 962,725 |
| 443,750 | | Sylvamo Corp., Term Loan B, 5.56% (LIBOR + | | |
| | | 450 bps) , 8/18/28 | | 428,219 |
| | | Total Paper & Related Products | $ | 1,390,944 |
| | | Pastoral & Agricultural — 0.5% | | |
| 648,375 | | Alltech, Inc., Term B Loan, 5.06% (LIBOR + | | |
| | | 400 bps) , 10/13/28 | $ | 607,852 |
| | | Total Pastoral & Agricultural | $ | 607,852 |
| | | Pharmacy Services — 0.3% | | |
| 349,125 | | Option Care Health, Inc., First Lien 2021 Refinancing | | |
| | | Term Loan, 3.81% (LIBOR + 275 bps), 10/27/28 | $ | 342,470 |
| | | Total Pharmacy Services | $ | 342,470 |
| | | Physical Therapy & Rehabilitation Centers — 2.3% | | |
| 933,333 | | Summit Behavioral Healthcare LLC, First Lien Initial | | |
| | | Term Loan, 6.256% (LIBOR + 475 bps), 11/24/28 | $ | 900,667 |
| 2,207,128 | | Upstream Newco, Inc., First Lien August 2021 | | |
| | | Incremental Term Loan, 5.065% (Term SOFR + |
| | | 425 bps) , 11/20/26 | | 2,093,092 |
| | | Total Physical Therapy & Rehabilitation Centers | $ | 2,993,759 |
| | | Pipelines — 2.5% | | |
| 3,342,504 | | Traverse Midstream Partners LLC, Advance, 5.25% | | |
| | | (Term SOFR + 425 bps), 9/27/24 | $ | 3,299,679 |
| | | Total Pipelines | $ | 3,299,679 |
| | | Property & Casualty Insurance — 1.5% | | |
| 249,352 | (b) | Asurion LLC, New B-7 Term Loan, 11/3/24 | $ | 241,508 |
| 495,000 | | Asurion LLC, New B-9 Term Loan, 4.31% (LIBOR + | | |
| | | 325 bps) , 7/31/27 | | 469,941 |
| 1,250,000 | | Asurion LLC, Second Lien New B-4 Term Loan, 6.31% | | |
| | | (LIBOR + 525 bps), 1/20/29 | | 1,126,952 |
| 121,250 | | Sedgwick Claims Management Services, Inc. (Lightning | | |
| | | Cayman Merger Sub, Ltd.), 2020 Term Loan, 5.31% | | |
| | | (LIBOR + 425 bps), 9/3/26 | | 119,229 |
| | | Total Property & Casualty Insurance | $ | 1,957,630 |
| | | Protection-Safety — 1.1% | | |
| 1,492,500 | | APX Group, Inc., Initial Term Loan, 4.375% (LIBOR + | | |
| | | 350 bps) , 7/10/28 | $ | 1,430,934 |
| | | Total Protection-Safety | $ | 1,430,934 |
| | | Publishing — 1.1% | | |
| 348,250 | | Cengage Learning, Inc., First Lien Term B Loan, 5.75% | | |
| | | (LIBOR + 475 bps), 7/14/26 | $ | 332,361 |
| 500,000 | | Houghton Mifflin Harcourt Company, First Lien Term B | | |
| | | Loan, 6.384% (Term SOFR + 525 bps), 4/9/29 | | 463,437 |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 25
Schedule of Investments | 5/31/22
(unaudited) (continued)
| Principal | | | |
| Amount | | | |
| USD ($) | | | Value |
| | Publishing (continued) | | |
| 746,250 | McGraw-Hill Education, Inc., Initial Term Loan, 5.554% | | |
| | (LIBOR + 475 bps), 7/28/28 | $ | 710,990 |
| | Total Publishing | $ | 1,506,788 |
| | Publishing-Periodicals — 0.3% | | |
| 375,000 | MJH Healthcare Holdings LLC, Initial Term B Loan, | | |
| | 4.464% (Term SOFR + 350 bps), 1/28/29 | $ | 358,125 |
| | Total Publishing-Periodicals | $ | 358,125 |
| | Recycling — 0.6% | | |
| 844,373 | LTR Intermediate Holdings, Inc., Initial Term Loan, | | |
| | 5.506% (LIBOR + 450 bps), 5/5/28 | $ | 807,432 |
| | Total Recycling | $ | 807,432 |
| | Rental Auto & Equipment — 0.7% | | |
| 952,612 | PECF USS Intermediate Holding III Corp., Initial Term | | |
| | Loan, 5.31% (LIBOR + 425 bps), 12/15/28 | $ | 900,814 |
| | Total Rental Auto & Equipment | $ | 900,814 |
| | Retail — 6.0% | | |
| 397,000 | Foundation Building Materials, Inc., First Lien Initial | | |
| | Term Loan, 4.309% (LIBOR + 325 bps), 1/31/28 | $ | 374,740 |
| 1,086,291 | Great Outdoors Group LLC, Term B-2 Loan, 4.81% | | |
| | (LIBOR + 375 bps), 3/6/28 | | 1,033,470 |
| 1,023,000 | Highline Aftermarket Acquisition LLC, First Lien Initial | | |
| | Term Loan, 5.25% (LIBOR + 450 bps), 11/9/27 | | 961,620 |
| 1,042,125 | Michaels Cos, Inc., The Term B Loan, 5.256% (LIBOR + | | |
| | 425 bps), 4/15/28 | | 900,917 |
| 495,000 | Petco Health & Wellness Co., Inc., First Lien Initial | | |
| | Term Loan, 4.256% (LIBOR + 325 bps), 3/3/28 | | 471,982 |
| 1,042,125 | PetSmart LLC, Initial Term Loan, 4.50% (LIBOR + | | |
| | 375 bps), 2/11/28 | | 982,528 |
| 742,514 | RVR Dealership Holdings, LLC, Term Loan, 5.168% | | |
| | (Term SOFR + 375 bps), 2/8/28 | | 668,263 |
| 694,750 | SRS Distribution, Inc., 2021 Refinancing Term Loan, | | |
| | 4.019% (LIBOR + 350 bps), 6/2/28 | | 662,039 |
| 1,410,598 | Staples, Inc., 2019 Refinancing New Term B-2 Loan, | | |
| | 5.786% (LIBOR + 450 bps), 9/12/24 | | 1,351,353 |
| 487,500 | Torrid LLC, Closing Date Term Loan, 6.739% (LIBOR + | | |
| | 550 bps), 6/14/28 | | 463,125 |
| | Total Retail | $ | 7,870,037 |
| | Rubber & Plastic Products — 0.8% | | |
| 1,138,701 | Gates Global LLC, Initial B-3 Dollar Term Loan, 3.56% | | |
| | (LIBOR + 250 bps), 3/31/27 | $ | 1,095,525 |
| | Total Rubber & Plastic Products | $ | 1,095,525 |
The accompanying notes are an integral part of these financial statements.
26 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
| Principal | | | | |
| Amount | | | | |
| USD ($) | | | | Value |
| | Satellite Telecom — 0.5% | | | |
| 748,093 | Intelsat Jackson Holdings SA, Term B Loan, 5.00% | | | |
| | (Term SOFR + 425 bps), 2/1/29 | | $ | 708,444 |
| | Total Satellite Telecom | | $ | 708,444 |
| | Schools — 1.2% | | | |
| 1,077,733 | KUEHG Corp. (fka KC MergerSub, Inc.), Term B-3 Loan, | | | |
| | 4.756% (LIBOR + 375 bps), 2/21/25 | | $ | 1,047,084 |
| 600,000 | McKissock Investment Holdings LLC, Initial Term Loan, | | | |
| | 5.951% (Term SOFR + 500 bps), 3/12/29 | | | 590,250 |
| | Total Schools | | $ | 1,637,334 |
| | Security Services — 1.4% | | | |
| 1,964,719 | Garda World Security Corp., Term B-2 Loan, 5.26% | | | |
| | (LIBOR + 425 bps), 10/30/26 | | $ | 1,851,748 |
| | Total Security Services | | $ | 1,851,748 |
| | Semiconductor Equipment — 1.0% | | | |
| 1,269,815 | Ultra Clean Holdings, Inc., Second Amendment | | | |
| | Term B Loan, 4.81% (LIBOR + 375 bps), 8/27/25 | | $ | 1,255,265 |
| | Total Semiconductor Equipment | | $ | 1,255,265 |
| | Shipbuilding — 0.8% | | | |
| 1,047,438 | MHI Holdings LLC, Initial Term Loan, 6.06% (LIBOR + | | | |
| | 500 bps) , 9/21/26 | $ | 1,038,710 |
| | Total Shipbuilding | | $ | 1,038,710 |
| | Soap & Cleaning Preparation — 0.7% | | | |
| 997,500 | Knight Health Holdings LLC, Term B Loan, 6.31% | | | |
| | (LIBOR + 525 bps), 12/23/28 | | $ | 870,319 |
| | Total Soap & Cleaning Preparation | | $ | 870,319 |
| | Steel Producers — 0.9% | | | |
| 1,498,331 | Phoenix Services International LLC, Term B Loan, 4.81% | | | |
| | (LIBOR + 375 bps), 3/1/25 | | $ | 1,236,434 |
| | Total Steel Producers | | $ | 1,236,434 |
| | Telecom Services — 0.7% | | | |
| 1,032,708 | Windstream Services II, LLC, Initial Term Loan, 7.31% | | | |
| | (LIBOR + 625 bps), 9/21/27 | | $ | 970,745 |
| | Total Telecom Services | | $ | 970,745 |
| | Textile-Home Furnishings — 0.7% | | | |
| 1,000,000 | Runner Buyer, Inc., Initial Term Loan, 7.075% (LIBOR + | | | |
| | 550 bps) , 10/20/28 | $ | 895,000 |
| | Total Textile-Home Furnishings | | $ | 895,000 |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 27
Schedule of Investments | 5/31/22
(unaudited) (continued)
| Principal | | | | |
| Amount | | | | |
| USD ($) | | | | Value |
| | | Theaters — 0.7% | | |
| 1,055,387 | | AMC Entertainment Holdings, Inc. (fka AMC | | |
| | | Entertainment, Inc.), Term B-1 Loan, 3.844% (LIBOR + | | |
| | | 300 bps) , 4/22/26 | $ | 931,850 |
| | | Total Theaters | $ | 931,850 |
| | | Transportation — Trucks — 0.4% | | |
| 497,500 | | Carriage Purchaser, Inc., Term B Loan, 5.31% (LIBOR + | | |
| | | 425 bps) , 9/30/28 | $ | 471,070 |
| | | Total Transportation - Trucks | $ | 471,070 |
| | | Transportation Services — 2.0% | | |
| 1,194,000 | | AIT Worldwide Logistics Holdings, Inc., First Lien Initial | | |
| | | Term Loan, 5.719% (LIBOR + 475 bps), 4/6/28 | $ | 1,131,315 |
| 500,000 | | Echo Global Logistics, Inc., First Lien Initial Term Loan, | | |
| | | 4.56% (LIBOR + 350 bps), 11/23/28 | | 480,000 |
| 546,425 | | First Student Bidco, Inc., Initial Term B Loan, 3.983% | | |
| | | (LIBOR + 300 bps), 7/21/28 | | 516,176 |
| 202,206 | | First Student Bidco, Inc., Initial Term C Loan, 3.983% | | |
| | | (LIBOR + 300 bps), 7/21/28 | | 191,013 |
| 348,250 | | LaserShip, Inc., First Lien Initial Term Loan, 5.25% | | |
| | | (LIBOR + 450 bps), 5/7/28 | | 333,159 |
| | | Total Transportation Services | $ | 2,651,663 |
| | | TOTAL SENIOR SECURED FLOATING RATE LOAN INTERESTS | | |
| | | (Cost $167,656,006) | $ | 160,339,997 |
Shares | | | | |
| | | COMMON STOCKS — 0.8% of Net Assets |
| | | Airlines — 0.4% | | |
| 40,684 | (d) | Grupo Aeromexico SAB de CV | $ | 516,765 |
| | | Total Airlines | $ | 516,765 |
| | | Oil, Gas & Consumable Fuels — 0.3% | | |
| 23,920 | (d) | Summit Midstream Partners LP | $ | 438,932 |
| | | Total Oil, Gas & Consumable Fuels | $ | 438,932 |
| | | Specialty Retail — 0.1% | | |
| 91,346 | (d)+^ | Targus Cayman SubCo., Ltd. | $ | 112,355 |
| | | Total Specialty Retail | $ | 112,355 |
| | | TOTAL COMMON STOCKS | | |
| | | (Cost $1,168,695) | $ | 1,068,052 |
The accompanying notes are an integral part of these financial statements.
28 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
| Principal | | | | |
| Amount | | | | |
| USD ($) | | | | Value |
| | | ASSET BACKED SECURITIES — 3.5% of Net Assets | | |
| 1,000,000 | (a) | 522 Funding CLO, Ltd., Series 2019-4A, Class E, 8.063% | | |
| | | (3 Month USD LIBOR + 700 bps), 4/20/30 (144A) | $ | 922,477 |
| 1,000,000 | (a) | Goldentree Loan Management US CLO 2, Ltd., Series | | |
| | | 2017-2A, Class E, 5.763% (3 Month USD LIBOR + | | |
| | | 470 bps) , 11/28/30 (144A) | | 874,851 |
| 1,000,000 | | JPMorgan Chase Bank NA - CACLN, Series 2021-3, | | |
| | | Class G, 9.812%, 2/26/29 (144A) | | 938,571 |
| 1,000,000 | (a) | Madison Park Funding XXII, Ltd., Series 2016-22A, | | |
| | | Class ER, 7.744% (3 Month USD LIBOR + | | |
| | | 670 bps) , 1/15/33 (144A) | | 916,686 |
| 1,000,000 | (a) | Octagon Investment Partners XXI, Ltd., Series 2014-1A, | | |
| | | Class DRR, 8.411% (3 Month USD LIBOR + |
| | | 700 bps) , 2/14/31 (144A) | | 916,327 |
| | | TOTAL ASSET BACKED SECURITIES | | |
| | | (Cost $4,939,605) | $ | 4,568,912 |
| | | COLLATERALIZED MORTGAGE | | |
| | | OBLIGATIONS — 2.2% of Net Assets |
| 370,000 | (a) | Connecticut Avenue Securities Trust, Series 2021-R01, | | |
| | | Class 1B2, 6.584% (SOFR30A + | | |
| | | 600 bps) , 10/25/41 (144A) | $ | 311,752 |
| 750,000 | (a) | Freddie Mac Stacr Remic Trust, Series 2021-DNA5, | | |
| | | Class B2, 6.084% (SOFR30A + | | |
| | | 550 bps) , 1/25/34 (144A) | | 609,735 |
| 490,000 | (a) | Freddie Mac Stacr Remic Trust, Series 2021-HQA3, | | |
| | | Class B2, 6.834% (SOFR30A + | | |
| | | 625 bps) , 9/25/41 (144A) | | 412,764 |
| 250,000 | (a) | Freddie Mac Stacr Remic Trust, Series 2022-DNA1, | | |
| | | Class B2, 7.684% (SOFR30A + | | |
| | | 710 bps) , 1/25/42 (144A) | | 212,564 |
| 230,000 | (a) | Freddie Mac Structured Agency Credit Risk Debt Notes, | | |
| | | Series 2021-DNA7, Class B2, 8.384% (SOFR30A + | | |
| | | 780 bps) , 11/25/41 (144A) | | 207,963 |
| 320,000 | (a) | Freddie Mac Structured Agency Credit Risk Debt Notes, | | |
| | | Series 2022-DNA2, Class B2, 9.084% (SOFR30A + | | |
| | | 850 bps) , 2/25/42 (144A) | | 295,197 |
| 710,000 | (a) | STACR Trust, Series 2018-HRP2, Class B2, 11.506% | | |
| | | (1 Month USD LIBOR + 1,050 bps), 2/25/47 (144A) | | 748,229 |
| | | TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | | |
| | | (Cost $3,199,744) | $ | 2,798,204 |
| | | COMMERCIAL MORTGAGE-BACKED |
| | | SECURITIES — 1.3% of Net Assets | | |
| 315,000 | (a) | Capital Funding Mortgage Trust, Series 2021-8, Class B, | | |
| | | 14.35% (1 Month USD LIBOR + | | |
| | | 1,310 bps) , 6/22/23 (144A) | $ | 315,000 |
| 166,152 | (a) | FREMF Mortgage Trust, Series 2020-KF74, Class C, | | |
| | | 7.053% (1 Month USD LIBOR + 625 bps), 1/25/27 (144A) | | 165,721 |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 29
Schedule of Investments | 5/31/22
(unaudited) (continued)
| | | | | |
| Principal | | | | |
| Amount | | | | |
| USD ($) | | | | Value |
| | | COMMERCIAL MORTGAGE-BACKED | | |
| | | SECURITIES (continued) | | |
| 625,000 | (a) | Morgan Stanley Capital I Trust, Series 2019-BPR, | | |
| | | Class D, 5.125% (1 Month USD LIBOR + | | |
| | | 400 bps), 5/15/36 (144A) | $ | 538,717 |
| 1,000,000 | | Wells Fargo Commercial Mortgage Trust, Series | | |
| | | 2015-C28, Class E, 3.00%, 5/15/48 (144A) | | 719,443 |
| | | TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES | | |
| | | (Cost $1,890,327) | $ | 1,738,881 |
| | | CORPORATE BONDS — 14.5% of Net Assets | | |
| | | Advertising — 0.2% | | |
| 255,000 | | Clear Channel Outdoor Holdings, Inc., 7.50%, | | |
| | | 6/1/29 (144A) | $ | 207,238 |
| | | Total Advertising | $ | 207,238 |
| | | Aerospace & Defense — 0.3% | | |
| 500,000 | | Bombardier, Inc., 7.125%, 6/15/26 (144A) | $ | 455,932 |
| | | Total Aerospace & Defense | $ | 455,932 |
| | | Airlines — 1.3% | | |
| 1,690,000 | | Grupo Aeromexico SAB de CV, 8.50%, 3/17/27 (144A) | $ | 1,666,413 |
| | | Total Airlines | $ | 1,666,413 |
| | | Banks — 1.0% | | |
| 1,000,000 | (e)(f) | Citigroup, Inc., 4.70% (SOFR + 323 bps) | $ | 890,870 |
| 391,000 | | Freedom Mortgage Corp., 8.25%, 4/15/25 (144A) | | 363,193 |
| | | Total Banks | $ | 1,254,063 |
| | | Building Materials — 1.8% | | |
| 500,000 | | CP Atlas Buyer, Inc., 7.00%, 12/1/28 (144A) | $ | 410,000 |
| 1,000,000 | | Koppers, Inc., 6.00%, 2/15/25 (144A) | | 965,000 |
| 996,000 | | Patrick Industries, Inc., 7.50%, 10/15/27 (144A) | | 986,040 |
| | | Total Building Materials | $ | 2,361,040 |
| | | Commercial Services — 0.6% | | |
| 205,000 | | Allied Universal Holdco LLC/Allied Universal Finance | | |
| | | Corp./Atlas Luxco 4 S.a.r.l., 4.625%, 6/1/28 (144A) | $ | 183,282 |
| 200,000 | | Allied Universal Holdco LLC/Allied Universal Finance | | |
| | | Corp./Atlas Luxco 4 S.a.r.l., 4.625%, 6/1/28 (144A) | | 177,094 |
| 500,000 | | Garda World Security Corp., 6.00%, 6/1/29 (144A) | | 405,020 |
| | | Total Commercial Services | $ | 765,396 |
| | | Computers — 0.1% | | |
| 100,000 | | Diebold Nixdorf, Inc., 9.375%, 7/15/25 (144A) | $ | 74,656 |
| | | Total Computers | $ | 74,656 |
The accompanying notes are an integral part of these financial statements.
30 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
| | | | |
| Principal | | | |
| Amount | | | |
| USD ($) | | | Value |
| | Diversified Financial Services — 1.1% | | |
| 200,000 | Jefferies Finance LLC/JFIN Co.-Issuer Corp., 5.00%, | | |
| | 8/15/28 (144A) | $ | 180,372 |
| 1,500,000 | VistaJet Malta Finance Plc/XO Management | | |
| | Holding, Inc., 6.375%, 2/1/30 (144A) | | 1,275,000 |
| | Total Diversified Financial Services | $ | 1,455,372 |
| | Engineering & Construction — 0.6% | | |
| 1,000,000 | Artera Services LLC, 9.033%, 12/4/25 (144A) | $ | 790,000 |
| | Total Engineering & Construction | $ | 790,000 |
| | Entertainment — 0.7% | | |
| 1,005,000 | Mohegan Gaming & Entertainment, 8.00%, | | |
| | 2/1/26 (144A) | $ | 929,133 |
| | Total Entertainment | $ | 929,133 |
| | Healthcare-Products — 0.2% | | |
| 308,000 | Varex Imaging Corp., 7.875%, 10/15/27 (144A) | $ | 312,235 |
| | Total Healthcare-Products | $ | 312,235 |
| | Iron & Steel — 0.4% | | |
| 500,000 | Metinvest BV, 7.75%, 10/17/29 (144A) | $ | 308,150 |
| 265,000 | TMS International Corp., 6.25%, 4/15/29 (144A) | | 211,851 |
| | Total Iron & Steel | $ | 520,001 |
| | Leisure Time — 0.4% | | |
| 105,000 | Royal Caribbean Cruises, Ltd., 9.125%, 6/15/23 (144A) | $ | 107,100 |
| 500,000 | Viking Cruises, Ltd., 5.875%, 9/15/27 (144A) | | 424,122 |
| | Total Leisure Time | $ | 531,222 |
| | Lodging — 0.7% | | |
| 1,000,000 | Station Casinos LLC, 4.50%, 2/15/28 (144A) | $ | 904,922 |
| | Total Lodging | $ | 904,922 |
| | Media — 1.0% | | |
| 510,000 | McGraw-Hill Education, Inc., 8.00%, 8/1/29 (144A) | $ | 441,146 |
| 1,000,000 | Sinclair Television Group, Inc., 5.50%, 3/1/30 (144A) | | 820,605 |
| | Total Media | $ | 1,261,751 |
| | Mining — 0.3% | | |
| 500,000 | Coeur Mining, Inc., 5.125%, 2/15/29 (144A) | $ | 405,000 |
| 47,000 | Joseph T Ryerson & Son, Inc., 8.50%, 8/1/28 (144A) | | 48,939 |
| | Total Mining | $ | 453,939 |
| | Oil & Gas — 1.2% | | |
| 1,500,000 | MEG Energy Corp., 7.125%, 2/1/27 (144A) | $ | 1,569,900 |
| | Total Oil & Gas | $ | 1,569,900 |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 31
Schedule of Investments | 5/31/22
(unaudited) (continued)
| Principal | | | | |
| Amount | | | | |
| USD ($) | | | | Value |
| | | REITs — 1.6% | | |
| 1,000,000 | | iStar, Inc., 4.75%, 10/1/24 | $ | 996,225 |
| 1,065,000 | | Uniti Group LP/Uniti Fiber Holdings, Inc./CSL | | |
| | | Capital LLC, 7.875%, 2/15/25 (144A) | | 1,093,329 |
| | | Total REITs | $ | 2,089,554 |
| | | Retail — 0.4% | | |
| 500,000 | | LBM Acquisition LLC, 6.25%, 1/15/29 (144A) | $ | 387,232 |
| 221,000 | | Party City Holdings, Inc., 8.75%, 2/15/26 (144A) | | 167,407 |
| | | Total Retail | $ | 554,639 |
| | | Telecommunications — 0.6% | | |
| 500,000 | | Altice France Holding SA, 6.00%, 2/15/28 (144A) | $ | 416,250 |
| 500,000 | | Lumen Technologies, Inc., 4.50%, 1/15/29 (144A) | | 410,839 |
| | | Total Telecommunications | $ | 827,089 |
| | | TOTAL CORPORATE BONDS | | |
| | | (Cost $20,339,949) | $ | 18,984,495 |
| | | INSURANCE-LINKED SECURITIES — 1.5% of | | |
| | | Net Assets# | | |
| | | Event Linked Bonds — 1.1% | | |
| | | Multiperil – Texas — 0.2% | | |
| 250,000 | (a) | Alamo Re, Ltd., 6.248%, (1 Month U.S. Treasury Bill + | | |
| | | 504 bps) , 6/8/22 (144A) | $ | 249,250 |
| | | Multiperil – U.S. — 0.5% | | |
| 250,000 | (a) | Matterhorn Re, 5.845%, (SOFR + 525 bps), | | |
| | | 3/24/25 (144A) | $ | 244,525 |
| 250,000 | (a) | Residential Reinsurance 2021, 6.708%, (3 Month U.S. | | |
| | | Treasury Bill + 550 bps), 12/6/25 (144A) | | 246,950 |
| 250,000 | (a) | Sanders Re III, 4.082%, (SOFR + 350 bps), | | |
| | | 4/7/26 (144A) | | 248,775 |
| | | | $ | 740,250 |
| | | Multiperil – U.S. Regional — 0.2% | | |
| 250,000 | (a) | Long Point Re III, 2.75%, (3 Month U.S. Treasury Bill + | | |
| | | 275 bps) , 6/1/22 | $ | 250,000 |
| | | Windstorm – North Carolina — 0.2% | | |
| 250,000 | (a) | Cape Lookout Re, 6.213%, (3 Month U.S. Treasury Bill + | | |
| | | 500 bps) , 3/28/25 (144A) | $ | 248,225 |
| | | Total Event Linked Bonds | $ | 1,487,725 |
The accompanying notes are an integral part of these financial statements.
32 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
| Face | | | | |
| Amount | | | | |
| USD ($) | | | | Value |
| | | Collateralized Reinsurance — 0.0%† | | |
| | | Multiperil – Worldwide — 0.0%† | | |
| 27,000(d) | (g)+ | Limestone Re, 3/1/23 (144A) | $ | — |
| | | Windstorm – Florida — 0.0%† | | |
| 250,000(d) | (g)+ | Formby Re 2018, 2/28/23 | $ | 22,377 |
| | | Total Collateralized Reinsurance | $ | 22,377 |
| | | Reinsurance Sidecars — 0.4% | | |
| | | Multiperil – U.S. — 0.0%† | | |
| 250,000(d) | (h)+ | Harambee Re 2018, 12/31/22 | $ | — |
| 250,000 | (h)+ | Harambee Re 2019, 12/31/22 | | 175 |
| | | | $ | 175 |
| | | Multiperil – Worldwide — 0.4% | | |
| 3,037 | (h)+ | Alturas Re 2019-2, 3/10/23 | $ | 1,030 |
| 29,558 | (h)+ | Alturas Re 2020-2, 3/10/23 | | 8,349 |
| 250,000(d) | (g)+ | Bantry Re 2016, 3/31/23 | | 15,113 |
| 1,270,809(d) | (g)+ | Berwick Re 2018-1, 12/31/22 | | 98,234 |
| 907,913(d) | (g)+ | Berwick Re 2019-1, 12/31/22 | | 108,496 |
| 3,800 | (g)+ | Eden Re II, 3/22/23 (144A) | | 9,419 |
| 199,590(d) | (h)+ | Lorenz Re 2019, 6/30/23 | | 23,152 |
| 300,000(d) | (g)+ | Merion Re 2018-2, 12/31/22 | | 49,650 |
| 400,000(d) | (g)+ | Pangaea Re 2018-1, 12/31/22 | | 8,422 |
| 400,000(d) | (g)+ | Pangaea Re 2018-3, 7/1/22 | | 8,297 |
| 327,699(d) | (g)+ | Pangaea Re 2019-1, 2/1/23 | | 6,828 |
| 294,125(d) | (g)+ | Pangaea Re 2019-3, 7/1/23 | | 10,580 |
| 324,259(d) | (g)+ | Pangaea Re 2020-1, 2/1/24 | | 6,881 |
| 150,000 | (g)+ | Sector Re V, 12/1/23 (144A) | | 19,168 |
| 10,000 | (g)+ | Sector Re V, 12/1/24 (144A) | | 28,471 |
| 253,645(d) | (g)+ | Woburn Re 2018, 12/31/22 | | 14,035 |
| 244,914(d) | (g)+ | Woburn Re 2019, 12/31/22 | | 55,312 |
| | | | $ | 471,437 |
| | | Total Reinsurance Sidecars | $ | 471,612 |
| | | TOTAL INSURANCE-LINKED SECURITIES | | |
| | | (Cost $2,279,885) | $ | 1,981,714 |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 33
Schedule of Investments | 5/31/22
(unaudited) (continued)
| Shares | | | | Value |
| | | SHORT TERM INVESTMENTS — 1.7% | | |
| | | of Net Assets | | |
| | | Open-End Fund — 1.7% | | |
| 2,157,782 | (i) | Dreyfus Government Cash Management, Institutional | | |
| | | Shares, 0.70% | $ | 2,157,782 |
| | | | $ | 2,157,782 |
| | | TOTAL SHORT TERM INVESTMENTS | | |
| | | (Cost $2,157,782) | $ | 2,157,782 |
| | | TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS — 148.1% | | |
| | | (Cost $203,631,993) | $ | 193,638,037 |
| | | OTHER ASSETS AND LIABILITIES — (48.1)% | $ | (62,888,549) |
| | | NET ASSETS — 100.0% | $ | 130,749,488 |
| FREMF | | Freddie Mac Multifamily Fixed-Rate Mortgage Loans. |
| LIBOR | | London Interbank Offered Rate. |
| REIT | | Real Estate Investment Trust. |
| SOFR | | Secured Overnight Financing Rate. |
| SOFR30A | | Secured Overnight Financing Rate 30 Day Average. |
| (144A) | | 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 a transaction exempt from registration. At May 31, 2022, the value of these securities amounted to $27,823,603, or 21.3% of net assets. |
| (a) | | Floating rate note. Coupon rate, reference index and spread shown at May 31, 2022. |
| (b) | | This term loan will settle after May 31, 2022, at which time the interest rate will be determined. |
| (c) | | All or a portion of this position has not settled. Full contract rates do not take effect until settlement date. |
| (d) | | Non-income producing security. |
| (e) | | Security is perpetual in nature and has no stated maturity date. |
| (f) | | The interest rate is subject to change periodically. The interest rate and/or reference index and spread shown at May 31, 2022. |
| (g) | | Issued as participation notes. |
| (h) | | Issued as preference shares. |
| (i) | | Rate periodically changes. Rate disclosed is the 7-day yield at May 31, 2022. |
| * | | Senior secured floating rate loan interests in which the Fund invests generally pay interest at rates that are periodically re-determined by reference to a base lending rate plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as LIBOR, (ii) the prime rate offered by one or more major United States banks, (iii) the rate of a certificate of deposit or (iv) other base lending rates used by commercial lenders. The interest rate shown is the rate accruing at May 31, 2022. |
| + | | Security that used significant unobservable inputs to determine its value. |
The accompanying notes are an integral part of these financial statements.
34 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
| ^ | | Security is valued using fair value methods (other than prices supplied by independent pricing services or broker dealers). |
| † | | Amount rounds to less than 0.1%. |
| # | | Securities are restricted as to resale. |
| Restricted Securities | Acquisition date | | Cost | | Value | |
| Alamo Re, Ltd. | 1/24/2022 | $ | 252,725 | $ | 249,250 | |
| Alturas Re 2019-2 | 12/19/2018 | | 3,037 | | 1,030 | |
| Alturas Re 2020-2 | 1/1/2020 | | 29,558 | | 8,349 | |
| Bantry Re 2016 | 2/6/2019 | | 15,112 | | 15,113 | |
| Berwick Re 2018-1 | 1/10/2018 | | 185,623 | | 98,234 | |
| Berwick Re 2019-1 | 12/31/2018 | | 108,488 | | 108,496 | |
| Cape Lookout Re | 3/16/2022 | | 250,000 | | 248,225 | |
| Eden Re II | 1/22/2019 | | 446 | | 9,419 | |
| Formby Re 2018 | 7/9/2018 | | 15,148 | | 22,377 | |
| Harambee Re 2018 | 12/19/2017 | | 5,311 | | — | |
| Harambee Re 2019 | 12/20/2018 | | — | | 175 | |
| Limestone Re | 6/20/2018 | | 230 | | — | |
| Long Point Re III | 1/24/2022 | | 250,500 | | 250,000 | |
| Lorenz Re 2019 | 6/26/2019 | | 62,644 | | 23,152 | |
| Matterhorn Re | 3/10/2022 | | 250,000 | | 244,525 | |
| Merion Re 2018-2 | 12/28/2017 | | 12,346 | | 49,650 | |
| Pangaea Re 2018-1 | 12/26/2017 | | 57,203 | | 8,422 | |
| Pangaea Re 2018-3 | 5/31/2018 | | 96,345 | | 8,297 | |
| Pangaea Re 2019-1 | 1/9/2019 | | 3,440 | | 6,828 | |
| Pangaea Re 2019-3 | 7/25/2019 | | 8,824 | | 10,580 | |
| Pangaea Re 2020-1 | 1/21/2020 | | — | | 6,881 | |
| Residential Reinsurance 2021 | 10/28/2021 | | 250,000 | | 246,950 | |
| Sanders Re III | 3/22/2022 | | 250,000 | | 248,775 | |
| Sector Re V | 12/4/2018 | | 30,884 | | 19,168 | |
| Sector Re V | 1/1/2020 | | 10,000 | | 28,471 | |
| Woburn Re 2018 | 3/20/2018 | | 85,177 | | 14,035 | |
| Woburn Re 2019 | 1/30/2019 | | 46,844 | | 55,312 | |
| Total Restricted Securities | | | | $ | 1,981,714 | |
| % of Net assets | | | | | 1.5 | % |
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
| | In | | | | | | | |
| Currency | Exchange | Currency | | | Settlement | | Unrealized | |
| Purchased | for | Sold | Deliver | Counterparty | Date | | (Depreciation) | |
| USD | 684,907 | MXN | 13,970,000 | State Street | 7/22/22 | $ | (17,657 | ) |
| | | | | Bank & Trust Co. | | | | |
| TOTAL FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS | | $ | (17,657 | ) |
Principal amounts are denominated in U.S. dollars (“USD”) unless otherwise noted.
MXN — Mexican Peso
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 35
Schedule of Investments | 5/31/22
(unaudited) (continued)
Purchases and sales of securities (excluding short-term investments) for the six months ended May 31, 2022, aggregated $31,677,375 and $38,486,522, respectively.
The Fund is permitted to engage in purchase and sale transactions (“cross trades”) with certain funds and accounts for which Amundi Asset Management US, Inc. (the “Adviser”) serves as the Fund's investment adviser, as set forth in Rule 17a-7 under the Investment Company Act of 1940, pursuant to procedures adopted by the Board of Directors. Under these procedures, cross trades are effected at current market prices. During the six months ended May 31, 2022, the Fund did not engage in any cross trade activity.
At May 31, 2022, the net unrealized depreciation on investments based on cost for federal tax purposes of $204,056,936 was as follows:
| Aggregate gross unrealized appreciation for all investments in which | | | |
| there is an excess of value over tax cost | $ | 1,473,528 | |
| Aggregate gross unrealized depreciation for all investments in which | | | |
| there is an excess of tax cost over value | | (11,910,084 | ) |
| Net unrealized depreciation | $ | (10,436,556 | ) |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels below.
| Level | | 1 – unadjusted quoted prices in active markets for identical securities. |
| Level | | 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). See Notes to Financial Statements — Note 1A. |
| Level | | 3 – significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments). See Notes to Financial Statements — Note 1A. |
The following is a summary of the inputs used as of May 31, 2022, in valuing the Fund’s investments:
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| Senior Secured Floating Rate | | | | | | | | |
| Loan Interests | $ | — | $ | 160,339,997 | $ | — | $ | 160,339,997 |
| Common Stocks | | | | | | | | |
| Specialty Retail | | — | | — | | 112,355 | | 112,355 |
| All Other Common Stocks | | 955,697 | | — | | — | | 955,697 |
| Asset Backed Securities | | — | | 4,568,912 | | — | | 4,568,912 |
| Collateralized Mortgage | | | | | | | | |
| Obligations | | — | | 2,798,204 | | — | | 2,798,204 |
| Commercial Mortgage-Backed | | | | | | | | |
| Securities | | — | | 1,738,881 | | — | | 1,738,881 |
| Corporate Bonds | | — | | 18,984,495 | | — | | 18,984,495 |
| Insurance-Linked Securities | | | | | | | | |
| Collateralized Reinsurance | | | | | | | | |
| Multiperil – Worldwide | | — | | — | | — | | — |
| Windstorm – Florida | | — | | — | | 22,377 | | 22,377 |
| Reinsurance Sidecars | | | | | | | | |
| Multiperil – U.S. | | — | | — | | 175 | | 175 |
| Multiperil – Worldwide | | — | | — | | 471,437 | | 471,437 |
| All Other Insurance-Linked | | | | | | | | |
| Securities | | — | | 1,487,725 | | — | | 1,487,725 |
| Open-End Fund | | 2,157,782 | | — | | — | | 2,157,782 |
| Total Investments in Securities | $ | 3,113,479 | $ | 189,918,214 | $ | 606,344 | $ | 193,638,037 |
The accompanying notes are an integral part of these financial statements.
36 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
| | Level 1 | | | Level 2 | | Level 3 | | Total | |
| Other Financial Instruments | | | | | | | | | | |
| Credit Agreement(a) | $ | — | $ | (64,200,000 | ) | $ | — | $ | (64,200,000 | ) |
| Net unrealized depreciation | | | | | | | | | | |
| on forward foreign currency | | | | | | | | | | |
| exchange contracts | | — | | (17,657 | ) | | — | | (17,657 | ) |
| Total Other Financial Instruments | $ | — | $ | (64,217,657 | ) | $ | — | $ | (64,217,657 | ) |
| (a) | | The Fund may hold liabilities in which the fair value approximates the carrying amount for financial statement purposes. |
The following is a reconciliation of assets valued using significant unobservable inputs (Level 3):
| | | | | | | | | | |
| | | | | | Insurance- | | | | |
| | | Common | | | Linked | | | | |
| | | Stocks | | | Securities | | | Total | |
| Balance as of 11/30/21 | $ | 139,759 | | $ | 595,777 | | $ | 735,536 | |
| Realized gain (loss)(1) | | — | | | (116,730 | ) | | (116,730 | ) |
| Changed in unrealized appreciation (depreciation)(2) | | (27,404 | ) | | 66,550 | | | 39,146 | |
| Accrued discounts/premiums | | — | | | (50,413 | ) | | (50,413 | ) |
| Purchases | | — | | | — | | | — | |
| Sales | | — | | | (1,195 | ) | | (1,195 | ) |
| Transfers in to Level 3* | | — | | | — | | | — | |
| Transfers out of Level 3* | | — | | | — | | | — | |
| Balance as of 5/31/22 | $ | 112,355 | | $ | 493,989 | | $ | 606,344 | |
| (1) | | Realized gain (loss) on these securities is included in the realized gain (loss) from investments on the Statement of Operations. |
| (2) | | Unrealized appreciation (depreciation) on these securities is included in the change in unrealized appreciation (depreciation) from investments on the Statement of Operations. |
| * | | Transfers are calculated on the beginning of period values. During the six months ended May 31, 2022, there were no transfers in or out of level 3. |
| Net change in unrealized appreciation (depreciation) of Level 3 investments still held | | | |
| and considered Level 3 at May 31, 2022: | $ | (39,848 | ) |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 37
Statement of Assets and Liabilities | 5/31/22
(unaudited)
| ASSETS: | | |
| Investments in unaffiliated issuers, at value (cost $203,631,993) | $ | 193,638,037 |
| Cash | | 40,963 |
| Receivables — | | |
| Investment securities sold | | 1,800,319 |
| Interest | | 1,127,711 |
| Total assets | $ | 196,607,030 |
| LIABILITIES: | | |
| Payables — | | |
| Credit agreement | $ | 64,200,000 |
| Investment securities purchased | | 1,391,560 |
| Directors’ fees | | 1,520 |
| Unrealized depreciation on unfunded loan commitments | | 17,437 |
| Net unrealized depreciation on forward foreign currency exchange contracts | | 17,657 |
| Due to affiliates | | 37,679 |
| Accrued expenses | | 191,689 |
| Total liabilities | $ | 65,857,542 |
| NET ASSETS: | | |
| Paid-in capital | $ | 207,823,989 |
| Distributable earnings (loss) | | (77,074,501) |
| Net assets | $ | 130,749,488 |
| NET ASSET VALUE PER SHARE: | | |
| No par value | | |
| Based on $130,749,488/12,374,933 shares | $ | 10.57 |
The accompanying notes are an integral part of these financial statements.
38 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
Statement of Operations (unaudited)
FOR THE SIX MONTHS ENDED 5/31/22
| INVESTMENT INCOME: | | | | | | | | | |
| Interest from unaffiliated issuers | | $ | 6,118,386 | | | | | | |
| Dividends from unaffiliated issuers | | | 28,869 | | | | | | |
| Total Investment Income | | | | | | $ | | 6,147,255 | |
| EXPENSES: | | | | | | | | | |
| Management fees | | $ | 727,483 | | | | | | |
| Administrative expenses | | | 27,131 | | | | | | |
| Transfer agent fees | | | 7,511 | | | | | | |
| Shareowner communications expense | | | 20,298 | | | | | | |
| Custodian fees | | | 5,112 | | | | | | |
| Professional fees | | | 102,667 | | | | | | |
| Printing expense | | | 8,854 | | | | | | |
| Directors’ fees | | | 4,468 | | | | | | |
| Interest expense | | | 427,980 | | | | | | |
| Miscellaneous | | | 66,080 | | | | | | |
| Total expenses | | | | | | $ | | 1,397,584 | |
| Net investment income | | | | | | $ | | 4,749,671 | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | |
| Investments in unaffiliated issuers | | $ | 614,861 | | | | | | |
| Forward foreign currency exchange contracts | | | (1,245 | ) | | | | | |
| Other assets and liabilities denominated in foreign currencies | | | (4,492 | ) | | $ | | 609,124 | |
| Change in net unrealized appreciation (depreciation) on: | | | | | | | | | |
| Investments in unaffiliated issuers | $ | (13,582,900 | ) | | |
| Forward foreign currency exchange contracts | | | (17,657 | ) | | | | | |
| Unfunded loan commitments | | | (13,528 | ) | $ | (13,614,085 | ) |
| Net realized and unrealized gain (loss) on investments | | | | | $ | (13,004,961 | ) |
| Net decrease in net assets resulting from operations | | | | | $ | (8,255,290 | ) |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 39
Statement of Changes in Net Assets
| | | Six Months | | | | |
| | | Ended | | | Year | |
| | | 5/31/22 | | | Ended | |
| | | (unaudited) | | | 11/30/21 | |
| FROM OPERATIONS: | | | | | | |
| Net investment income (loss) | $ | 4,749,671 | | $ | 9,582,789 | |
| Net realized gain (loss) on investments | | 609,124 | | | (1,946,821 | ) |
| Change in net unrealized appreciation (depreciation) | | | | | | |
| on investments | | (13,614,085 | ) | | 5,966,129 | |
| Net increase (decrease) in net assets resulting | | | | | | |
| from operations | $ | (8,255,290 | ) | $ | 13,602,097 | |
| DISTRIBUTIONS TO SHAREOWNERS: | | | | | | |
| ($0.35 and $0.70 per share, respectively) | $ | (4,269,148 | ) | $ | (9,446,022 | ) |
| Tax return of capital ($— and $0.03 per share, respectively) | | — | | | (356,890 | ) |
| Total distributions to shareowners | $ | (4,269,148 | ) | $ | (9,802,912 | ) |
| FROM FUND SHARE TRANSACTIONS: | | | | | | |
| Reinvestment of distributions | $ | 41,061 | | $ | 21,722 | |
| Cost of shares repurchased through tender offer (Note 9) | | — | | | (136,821,893 | ) |
| Net increase (decrease) in net assets resulting from Fund | | | | | | |
| share transactions | $ | 41,061 | | $ | (136,800,171 | ) |
| Net decrease in net assets | $ | (12,483,377 | ) | $ | (133,000,986 | ) |
| NET ASSETS: | | | | | | |
| Beginning of period | $ | 143,232,865 | | $ | 276,233,851 | |
| End of period | $ | 130,749,488 | | $ | 143,232,865 | |
| | | | | | | | |
| | Six Months | Six Months | | | | | |
| | Ended | Ended | Year | | Year | |
| | 5/31/22 | 5/31/22 | Ended | | Ended | |
| | Shares | Amount | 11/30/21 | | 11/30/21 | |
| | (unaudited) | (unaudited) | Shares | | Amount | |
| FUND SHARE | | | | | | | |
| TRANSACTION | | | | | | | |
| Shares sold | — | $ — | — | | | $ — | |
| Reinvestment of | | | | | | | |
| distributions | 3,550 | 41,061 | 2,296 | | | 21,722 | |
| Less shares | | | | | | | |
| repurchased through | | | | | | | |
| tender offer (Note 9) | — | — | (12,369,087 | ) | $(136,821,893 | ) |
| Net increase | | | | | | | |
| (decrease) | 3,550 | $ 41,061 | (12,366,791 | ) | $(136,800,171 | ) |
The accompanying notes are an integral part of these financial statements.
40 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
Statement of Cash Flows (unaudited)
FOR THE SIX MONTHS ENDED 5/31/22
| Cash Flows From Operating Activities | | | |
| Net decrease in net assets resulting from operations | $ | (8,255,290 | ) |
| Adjustments to reconcile net decrease in net assets resulting from operations | | | |
| to net cash, restricted cash and foreign currencies from operating activities: | | | |
| Purchases of investment securities | $ | (48,555,258 | ) |
| Proceeds from disposition and maturity of investment securities | | 51,014,811 | |
| Net sales of short term investments | | 3,243,933 | |
| Net accretion and amortization of discount/premium on investment securities | | (462,655 | ) |
| Net realized gain (loss) on investment security transactions | | (614,861 | ) |
| Change in unrealized depreciation on investments in unaffiliated issuers | | 13,582,900 | |
| Change in unrealized depreciation on forward foreign currency exchange contracts | | 17,657 | |
| Increase in unrealized depreciation on unfunded loan commitments | | 13,528 | |
| Decrease in interest receivable | | 130,183 | |
| Decrease in due to affiliates | | (23,144 | ) |
| Decrease in directors’ fees payable | | (51 | ) |
| Decrease in accrued expenses payable | | (23,513 | ) |
| Net cash, restricted cash and foreign currencies from operating activities | $ | 10,068,240 | |
| Cash Flows Used in Financing Activities: | | | |
| Decrease in overdraft due to custodian | $ | (549,190 | ) |
| Borrowing repaid | | (5,250,000 | ) |
| Distributions to shareowners | | (4,269,148 | ) |
| Reinvestment of distributions | | 41,061 | |
| Net cash flows used in financing activities | $ | (10,027,277 | ) |
| NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH | $ | 40,963 | |
| Cash, Restricted Cash and Foreign Currencies: | | | |
| Beginning of period* | $ | — | |
| End of period | $ | 40,963 | |
| Cash Flow Information: | | | |
| Cash paid for interest | $ | 428,263 | |
| * | | The following table provides a reconciliation of cash, restricted cash and foreign currencies reported within Statement of Assets and Liabilities that sum to the total of the same such amounts shown in the Statement of Cash Flows: |
| | | Six Months | | |
| | | Ended | | Year Ended |
| | | 5/31/22 | | 11/30/21 |
| Cash | $ | 40,963 | $ | — |
| Foreign currencies, at value | | — | | — |
| Total cash, restricted cash and foreign currencies | | | | |
| shown in the Statement of Cash Flows | $ | 40,963 | $ | — |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 41
Financial Highlights
| | Six Months | | | | | | | | | | | | | | |
| | Ended | | Year | | | Year | | | Year | | | Year | | | Year |
| | 5/31/22 | | Ended | | Ended | | | Ended | | | Ended | | | Ended |
| | (unaudited) | | 11/30/21 | | 11/30/20 | | | 11/30/19 | | | 11/30/18 | | | 11/30/17 |
| Per Share Operating Performance | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | $ 11.58 | | $ 11.17 | | $ 11.83 | | $ | 12.04 | | $ | 12.42 | | $ | 12.50 |
| Increase (decrease) from investment operations:(a) | | | | | | | | | | | | | | | |
| Net investment income (loss) | $ 0.38 | | $ | 0.73 | | $ 0.68 | | $ | 0.73 | | $ | 0.74 | | $ | 0.71 |
| Net realized and unrealized gain (loss) on investments | (1.04 | ) | | 0.24 | | (0.60 | ) | | (0.20 | ) | | (0.40 | ) | | (0.06) |
| Net increase (decrease) from investment operations | $ (0.66 | ) | $ | 0.97 | | $ 0.08 | | $ | 0.53 | | $ | 0.34 | | $ | 0.65 |
| Accretion to net asset value due to tender offer | — | | | 0.17 | (b) | — | | | — | | | — | | | — |
| Distributions to shareowners: | | | | | | | | | | | | | | | |
| Net investment income and previously undistributed | | | | | | | | | | | | | | | |
| net investment income | $ (0.35 | ) | $ (0.70 | ) | $ (0.74 | )(c) | | $ (0.74 | )(c) | $ | (0.72 | ) | | $ (0.73)(c) |
| Tax return of capital | — | | (0.03 | ) | — | | | — | | | — | | | — |
| Total distributions | $ (0.35 | ) | $ (0.73 | ) | $ (0.74 | ) | $ | (0.74 | ) | $ | (0.72 | ) | $ | (0.73) |
| Net increase (decrease) in net asset value | $ (1.01 | ) | $ | 0.41 | | $ (0.66 | ) | $ | (0.21 | ) | $ | (0.38 | ) | $ | (0.08) |
| Net asset value, end of period | $ 10.57 | | $ 11.58 | | $ 11.17 | | $ | 11.83 | | $ | 12.04 | | $ | 12.42 |
| Market value end of period | $ 9.35 | | $ 11.90 | | $ 10.73 | | $ | 10.53 | | $ | 10.40 | | $ | 11.47 |
| Total return at net asset value(d) | (5.70 | )%(e) | 10.54 | % | 1.89 | % | | 5.38 | % | | 3.34 | % | | 5.55% |
| Total return at market value(d) | (18.83 | )%(e) | 18.25 | % | 9.96 | % | | 8.59 | % | | (3.34 | )% | | 3.43% |
| Ratios to average net assets of shareowners: | | | | | | | | | | | | | | | |
| Total expenses plus interest expense(f) | 2.00 | %(g) | | 1.97 | % | 2.58 | % | | 2.90 | % | | 2.56 | % | | 2.21% |
| Net investment income available to shareowners | 6.80 | %(g) | | 6.25 | % | 6.26 | % | | 6.08 | % | | 5.98 | % | | 5.62% |
| Portfolio turnover rate | 15 | %(e) | | 51 | % | 73 | % | | 48 | % | | 34 | % | | 75% |
| Net assets, end of period (in thousands) | $ 130,749 | | $ 143,233 | | $ 276,234 | | $ | 292,730 | | $ | 297,903 | | $ | 307,195 |
| Ratios with no waiver of fees and assumption of expenses by | | | | | | | | | | | | | | | |
| the Adviser and no reduction for fees paid indirectly: | | | | | | | | | | | | | | | |
| Total expenses to average net assets | 2.00 | %(g) | | 1.97 | % | 2.58 | % | | 2.90 | % | | 2.56 | % | | 2.21% |
| Net investment income (loss) to average net assets | 6.80 | %(g) | | 6.25 | % | 6.26 | % | | 6.08 | % | | 5.98 | % | | 5.62% |
42 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
The accompanying notes are an integral part of these financial statements.
| | | Six Months | | | | | | | | | | |
| | | Ended | | Year | | Year | | Year | | Year | | Year |
| | | 5/31/22 | | Ended | | Ended | | Ended | | Ended | | Ended |
| | | (unaudited) | | 11/30/21 | | 11/30/20 | | 11/30/19 | | 11/30/18 | | 11/30/17 |
| Total amount of debt outstanding (in thousands) | $ | 64,200 | $ | 69,450 | $ | 105,450 | $ | 139,450 | $ | 143,450 | $ | 143,450 |
| Asset coverage per $1,000 of indebtedness | $ | 3,037 | $ | 3,062 | $ | 3,620 | $ | 3,099 | $ | 3,077 | $ | 3,141 |
| (a) | | The common share data presented above is based on the average shares outstanding for the period presented. |
| (b) | | See Notes to the Financial Statements Note 9. for additional information. |
| (c) | | The amount of distributions made to shareowners during the year were in excess of the net investment income earned by the Fund during the year. The Fund has accumulated undistributed net investment income which is part of the Fund’s net asset value (“NAV”) . A portion of the accumulated net investment income was distributed to shareowners during the year. |
| (d) | | Total investment return is calculated assuming a purchase of common shares at the current net asset value or market value on the first day and a sale at the current net asset value or market value on the last day of the periods reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Past performance is not a guarantee of future results. |
| (f) | | Includes interest expense of 0.61%, 0.47%, 0.70%, 1.60%, 1.35% and 0.95%, respectively. |
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 43
Notes to Financial Statements | 5/31/22
(unaudited)
1. Organization and Significant Accounting Policies
Pioneer Floating Rate Fund, Inc. (the “Fund”) is organized as a Maryland corporation. Prior to April 21, 2021, the Fund was organized as a Delaware statutory trust. On April 21, 2021, the Fund redomiciled to a Maryland corporation through a statutory merger of the predecessor Delaware statutory trust with and into a newly-established Maryland corporation formed for the purpose of effecting the redomiciling. The Fund was originally organized on October 6, 2004. Prior to commencing operations on December 28, 2004, the Fund had no operations other than matters relating to its organization and registration as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. The investment objective of the Fund is to seek a high level of current income and the Fund may, as a secondary objective, also seek capital appreciation to the extent that it is consistent with its investment objective.
Amundi Asset Management US, Inc., an indirect, wholly owned subsidiary of Amundi and Amundi’s wholly owned subsidiary, Amundi USA, Inc., serves as the Fund’s investment adviser (the “Adviser”).
In March 2020, FASB issued an Accounting Standard Update, ASU 2020-04, Reference Rate Reform (Topic 848) — Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate (“LIBOR”) and other LIBOR-based reference rates at the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period from March 12, 2020 through December 31, 2023. Management is evaluating the impact of ASU 2020-04 on the Fund's investments, derivatives, debt and other contracts, if applicable, that will undergo reference rate-related modifications as a result of the reference rate reform.
The Fund is an investment company and follows investment company accounting and reporting guidance under U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). U.S. GAAP requires the management of the Fund to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income, expenses and gain or loss on investments during the reporting period. Actual results could differ from those estimates.
44 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements:
The net asset value of the Fund is computed once daily, on each day the New York Stock Exchange (“NYSE”) is open, as of the close of regular trading on the NYSE.
Loan interests are valued at the mean between the last available bid and asked prices from one or more brokers or dealers as obtained from Loan Pricing Corporation, an independent third party pricing service. If price information is not available from Loan Pricing Corporation, or if the price information is deemed to be unreliable, price information will be obtained from an alternative loan interest pricing service. If no reliable price quotes are available from either the primary or alternative pricing service, broker quotes will be solicited.
Fixed-income securities are valued by using prices supplied by independent pricing services, which consider such factors as market prices, market events, quotations from one or more brokers, Treasury spreads, yields, maturities and ratings, or may use a pricing matrix or other fair value methods or techniques to provide an estimated value of the security or instrument. A pricing matrix is a means of valuing a debt security on the basis of current market prices for other debt securities, historical trading patterns in the market for fixed-income securities and/or other factors. Non-U.S. debt securities that are listed on an exchange will be valued at the bid price obtained from an independent third party pricing service. When independent third party pricing services are unable to supply prices, or when prices or market quotations are considered to be unreliable, the value of that security may be determined using quotations from one or more broker-dealers.
Event-linked bonds are valued at the bid price obtained from an independent third party pricing service. Other insurance-linked securities (including reinsurance sidecars, collateralized reinsurance and industry loss warranties) may be valued at the bid price obtained from an independent pricing service, or through a third party using a pricing matrix or an insurance industry valuation model to provide an estimated value of the instrument.
Equity securities that have traded on an exchange are valued by using the last sale price on the principal exchange where they are traded. Equity securities that have not traded on the date of valuation, or securities for which sale prices are not available, generally are valued using the mean between the last bid and asked prices or, if both last bid and asked prices are not available, at the last quoted bid price. Last sale and bid and asked
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 45
prices are provided by independent third party pricing services. In the case of equity securities not traded on an exchange, prices are typically determined by independent third party pricing services using a variety of techniques and methods.
Forward foreign currency exchange contracts are valued daily using the foreign exchange rate or, for longer term forward contract positions, the spot currency rate and the forward points on a daily basis, in each case provided by a third party pricing service. Contracts whose forward settlement date falls between two quoted days are valued by interpolation.
Shares of open-end registered investment companies (including money market mutual funds) are valued at such funds’ net asset value.
Securities or loan interests for which independent pricing services or broker-dealers are unable to supply prices or for which market prices and/or quotations are not readily available or are considered to be unreliable are valued by a fair valuation team comprised of certain personnel of the Adviser. The Adviser’s fair valuation team is responsible for monitoring developments that may impact fair valued securities.
Inputs used when applying fair value methods to value a security may include credit ratings, the financial condition of the company, current market conditions and comparable securities. The Fund may use fair value methods if it is determined that a significant event has occurred after the close of the exchange or market on which the security trades and prior to the determination of the Fund's net asset value. Examples of a significant event might include political or economic news, corporate restructurings, natural disasters, terrorist activity or trading halts. Thus, the valuation of the Fund's securities may differ significantly from exchange prices, and such differences could be material.
At May 31, 2022, one security was valued using fair value methods (in addition to securities valued using prices supplied by independent pricing services, broker-dealers or using a third party insurance industry broker valuation model) representing 0.09% of net assets. The value of these fair valued securities was $112,355.
| B. | | Investment Income and Transactions |
Dividend income is recorded on the ex-dividend date, except that certain dividends from foreign securities where the ex-dividend date may have passed are recorded as soon as the Fund becomes aware of the ex-dividend data in the exercise of reasonable diligence.
46 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
Interest income, including interest on income-bearing cash accounts, is recorded on the accrual basis. Dividend and interest income are reported net of unrecoverable foreign taxes withheld at the applicable country rates and net of income accrued on defaulted securities.
Interest and dividend income payable by delivery of additional shares is reclassified as PIK (payment-in-kind) income upon receipt and is included in interest and dividend income, respectively.
Principal amounts of mortgage-backed securities are adjusted for monthly paydowns. Premiums and discounts related to certain mortgage-backed securities are amortized or accreted in proportion to the monthly paydowns. All discounts/premiums on purchase prices of debt securities are accreted/amortized for financial reporting purposes over the life of the respective securities, and such accretion/amortization is included in interest income.
Security transactions are recorded as of trade date. Gains and losses on sales of investments are calculated on the identified cost method for both financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts denominated in foreign currencies are translated into U.S. dollars using current exchange rates.
Net realized gains and losses on foreign currency transactions, if any, represent, among other things, the net realized gains and losses on foreign currency exchange contracts, disposition of foreign currencies and the difference between the amount of income accrued and the U.S. dollars actually received. Further, the effects of changes in foreign currency exchange rates on investments are not segregated on the Statement of Operations from the effects of changes in the market prices of those securities, but are included with the net realized and unrealized gain or loss on investments.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net taxable income and net realized capital gains, if any, to its shareowners. Therefore, no provision for federal income taxes is required. As of November 30, 2021, the Fund did not accrue any interest or penalties with respect to uncertain tax positions, which, if applicable, would be recorded as an income tax expense on the Statement of Operations. Tax returns filed within the prior three years remain subject to examination by federal and state tax authorities.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 47
The amount and character of income and capital gain distributions to shareowners are determined in accordance with federal income tax rules, which may differ from U.S. GAAP. Distributions in excess of net investment income or net realized gains are temporary over distributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes. Capital accounts within the financial statements are adjusted for permanent book/tax differences to reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined at the end of the current taxable year. The tax character of distributions paid during the year ended November 30, 2021 was as follows:
| | | 2021 |
| Distributions paid from: | | |
| Ordinary income | $ | 9,446,022 |
| Tax return of capital | | 356,890 |
| Total | $ | 9,802,912 |
The following shows the components of distributable earnings (losses) on a federal income tax basis at November 30, 2021:
| | | 2021 | |
| Distributable earnings/(losses): | | | |
| Capital loss carryforward | $ | (66,998,801 | ) |
| Other book/tax temporary differences | | (711,354 | ) |
| Net unrealized appreciation | | 3,160,092 | |
| Total | $ | (64,550,063 | ) |
The difference between book basis and tax basis unrealized appreciation is attributable to the tax treatment of premium and amortization, adjustments relating to insurance linked securities, the tax adjustments relating to credit default swaps and partnerships.
E. Risks
The value of securities held by the Fund may go up or down, sometimes rapidly or unpredictably, due to general market conditions, such as real or perceived adverse economic, political or regulatory conditions, recessions, the spread of infectious illness or other public health issues, inflation, changes in interest rates, armed conflict including Russia's military invasion of Ukraine, sanctions against Russia, other nations or individuals or companies and possible countermeasures, lack of liquidity in the bond markets or adverse investor sentiment. In the past several years, financial markets have experienced increased volatility, depressed valuations, decreased liquidity and heightened uncertainty. These conditions may
48 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
continue, recur, worsen or spread. Interest rates are very low, which means there is more risk that they may go up. The U.S. Federal Reserve has recently started to raise certain interest rates. A general rise in interest rates could adversely affect the price and liquidity of fixed-income securities. Rates of inflation have recently risen. The value of assets or income from an investment may be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the Fund’s assets can decline as can the value of the Fund’s distributions.
The global pandemic of the novel coronavirus respiratory disease designated COVID-19 has resulted in major disruption to economies and markets around the world, including the United States. Global financial markets have experienced extreme volatility and severe losses, and trading in many instruments has been disrupted. Liquidity for many instruments has been greatly reduced for periods of time. Some sectors of the economy and individual issuers have experienced particularly large losses. These circumstances may continue for an extended period of time, and may continue to affect adversely the value and liquidity of the Fund’s investments. Following Russia’s recent invasion of Ukraine, Russian securities have lost all, or nearly all, their market value. Other securities or markets could be similarly affected by past or future geopolitical or other events or conditions.
Governments and central banks, including the U.S. Federal Reserve, have taken extraordinary and unprecedented actions to support local and global economies and the financial markets. These actions have resulted in significant expansion of public debt, including in the U.S. The consequences of high public debt, including its future impact on the economy and securities markets, may not be known for some time.
At times, the Fund’s investments may represent industries or industry sectors that are interrelated or have common risks, making the Fund more susceptible to any economic, political, or regulatory developments or other risks affecting those industries and sectors.
The Fund’s investments in foreign markets and countries with limited developing markets may subject the Fund to a greater degree of risk than investments in a developed market. These risks include disruptive political or economic conditions, military conflicts and sanctions, terrorism, sustained economic downturns, financial instability, reduction of government or central bank support, inadequate accounting standards, tariffs, tax disputes or other tax burdens, nationalization or expropriation of assets, and the imposition of adverse governmental laws, arbitrary application of laws and regulations or lack of rule of law, or currency exchange restrictions. Lack of information and less market regulation also
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 49
may affect the value of these securities. Withholding and other non-U.S. taxes may decrease the Fund's return. Non-U.S. issuers may be located in parts of the world that have historically been prone to natural disasters. Investing in depositary receipts is subject to many of the same risks as investing directly in non-U.S. issuers. Depositary receipts may involve higher expenses and may trade at a discount (or premium) to the underlying security.
Russia launched a large-scale invasion of Ukraine on February 24, 2022. In response to the military action by Russia, various countries, including the U.S., the United Kingdom, and European Union issued broad-ranging economic sanctions against Russia and Belarus and certain companies and individuals. Since then, Russian securities have lost all, or nearly all, their market value, and many other issuers, securities and markets have been adversely affected. The United States and other countries may impose sanctions on other countries, companies and individuals in light of Russia’s military invasion. The extent and duration of the military action or future escalation of such hostilities, the extent and impact of existing and future sanctions, market disruptions and volatility, and the result of any diplomatic negotiations cannot be predicted. These and any related events could have a significant impact on the value and liquidity of certain Fund investments, on Fund performance and the value of an investment in the Fund, particularly with respect to securities and commodities, such as oil and natural gas, as well as other sectors with exposure to Russian issuers or issuers in other countries affected by the invasion, and are likely to have collateral impacts on market sectors globally.
The Fund invests primarily in floating rate loans and other floating rate investments. Floating rate loans typically are rated below investment grade. Debt securities rated below-investment-grade are commonly referred to as “junk bonds” and are considered speculative with respect to the issuer’s capacity to pay interest and repay principal. Below investment grade securities, including floating rate loans, involve greater risk of loss, are subject to greater price volatility, and may be less liquid and more difficult to value, especially during periods of economic uncertainty or change, than higher rated debt securities.
Under normal market conditions, the Fund seeks to achieve its investment objectives by investing at least 80% of its assets (net assets plus borrowings for investment purposes) in senior floating rate loans. For purposes of the Fund’s investment policies, senior floating rate loans include funds that invest primarily in senior floating rate loans. Floating rate loans and similar investments may be illiquid or less liquid than other investments and difficult to value. Market quotations for these securities may be volatile and/or subject to large spreads between bid and ask prices.
50 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
Certain securities in which the Fund invests, including floating rate loans, once sold, may not settle for an extended period (for example, several weeks or even longer). The Fund will not receive its sale proceeds until that time, which may constrain the Fund’s ability to meet its obligations. The Fund may invest in securities of issuers that are in default or that are in bankruptcy. The value of collateral, if any, securing a floating rate loan can decline or may be insufficient to meet the issuer’s obligations or may be difficult to liquidate. No active trading market may exist for many floating rate loans, and many loans are subject to restrictions on resale. Any secondary market may be subject to irregular trading activity and extended settlement periods. There is less readily available, reliable information about most floating rate loans than is the case for many other types of securities. Normally, the Adviser will seek to avoid receiving material, nonpublic information about the issuer of a loan either held by, or considered for investment by, the Fund, and this decision could adversely affect the Fund’s investment performance. Loans may not be considered “securities,” and purchasers, such as the Fund, therefore may not be entitled to rely on the anti-fraud protections afforded by federal securities laws.
The Fund's investments, payment obligations and financing terms may be based on floating rates, such as LIBOR (London Interbank Offered Rate) or SOFR (Secured Overnight Financing Rate). ICE Benchmark Administration, the administrator of LIBOR, ceased publication of most LIBOR settings on a representative basis at the end of 2021 and is expected to cease publication of a majority of U.S. dollar LIBOR settings on a representative basis after June 30, 2023. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into after 2021. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies. Markets are developing in response to these new rates, but questions around liquidity in these rates and how to appropriately adjust these rates to eliminate any economic value transfer at the time of transition remain a significant concern. The effect of any changes to - or discontinuation of - LIBOR on the Fund will vary depending on, among other things, existing fallback provisions in individual contracts and whether, how, and when industry participants develop and widely adopt new reference rates and fallbacks for both legacy and new products and instruments. In March 2022, the U.S. federal government enacted legislation to establish a process for replacing LIBOR in existing contracts that do not already provide for the use of a clearly defined or practicable replacement benchmark rate as described in the legislation. Generally speaking, for contracts that do not contain a fallback provision as described in the legislation, a benchmark replacement recommended by
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 51
the Federal Reserve Board will effectively automatically replace the USD LIBOR benchmark in the contract after June 30, 2023. The recommended benchmark replacement will be based on the SOFR published by the Federal Reserve Bank of New York, including any recommended spread adjustment and benchmark replacement conforming changes. The process of transitioning from LIBOR may involve, among other things, increased volatility or illiquidity in markets for instruments that rely on LIBOR. The transition may also result in a reduction in the value of certain LIBOR-based investments held by the Fund or reduce the effectiveness of related transactions such as hedges. Any such effects of the transition away from LIBOR, as well as other unforeseen effects, could result in losses for the Fund. Because the usefulness of LIBOR as a benchmark may deteriorate during the transition period, these effects could occur at any time.
The Fund is not limited in the percentage of its assets that may be invested in illiquid securities. Illiquid securities are securities that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the securities.
With the increased use of technologies such as the Internet to conduct business, the Fund is susceptible to operational, information security and related risks. While the Fund’s Adviser has established business continuity plans in the event of, and risk management systems to prevent, limit or mitigate, such cyber-attacks, there are inherent limitations in such plans and systems, including the possibility that certain risks have not been identified. Furthermore, the Fund cannot control the cybersecurity plans and systems put in place by service providers to the Fund such as the Fund’s custodian and accounting agent, and the Fund’s transfer agent. In addition, many beneficial owners of Fund shares hold them through accounts at broker-dealers, retirement platforms and other financial market participants over which neither the Fund nor the Adviser exercises control. Each of these may in turn rely on service providers to them, which are also subject to the risk of cyberattacks. Cybersecurity failures or breaches at the Adviser or the Fund’s service providers or intermediaries have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, interference with the Fund’s ability to calculate its net asset value, impediments to trading, the inability of Fund shareowners to effect share purchases or sales or receive distributions, loss of or unauthorized access to private shareowner information and violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, or additional compliance costs. Such costs and losses may not be covered under any insurance. In addition, maintaining vigilance against cyber-attacks may involve substantial costs over time, and system enhancements may themselves be subject to cyber-attacks.
52 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
F. Restricted Securities
Restricted Securities are subject to legal or contractual restrictions on resale. Restricted securities generally are resold in transactions exempt from registration under the Securities Act of 1933. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933.
Disposal of restricted investments may involve negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted investments held by the Fund at May 31, 2022 are listed in the Schedule of Investments.
G. Insurance-Linked Securities (“ILS”)
The Fund invests in ILS. The Fund could lose a portion or all of the principal it has invested in an ILS, and the right to additional interest or dividend payments with respect to the security, upon the occurrence of one or more trigger events, as defined within the terms of an insurance-linked security. Trigger events, generally, are hurricanes, earthquakes, or other natural events of a specific size or magnitude that occur in a designated geographic region during a specified time period, and/or that involve losses or other metrics that exceed a specific amount. There is no way to accurately predict whether a trigger event will occur, and accordingly, ILS carry significant risk. The Fund is entitled to receive principal, and interest and/or dividend payments so long as no trigger event occurs of the description and magnitude specified by the instrument. In addition to the specified trigger events, ILS may expose the Fund to other risks, including but not limited to issuer (credit) default, adverse regulatory or jurisdictional interpretations and adverse tax consequences.
The Fund’s investments in ILS may include event-linked bonds. ILS also may include special purpose vehicles (“SPVs”) or similar instruments structured to comprise a portion of a reinsurer’s catastrophe-oriented business, known as quota share instruments (sometimes referred to as reinsurance sidecars), or to provide reinsurance relating to specific risks to insurance or reinsurance companies through a collateralized instrument, known as collateralized reinsurance. Structured reinsurance investments also may include industry loss warranties (“ILWs”). A traditional ILW takes the form of a bilateral reinsurance contract, but there are also products that take the form of derivatives, collateralized structures, or exchange-traded instruments.
Where the ILS are based on the performance of underlying reinsurance contracts, the Fund has limited transparency into the individual underlying contracts, and therefore must rely upon the risk assessment and sound
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 53
underwriting practices of the issuer. Accordingly, it may be more difficult for the Adviser to fully evaluate the underlying risk profile of the Fund's structured reinsurance investments, and therefore the Fund's assets are placed at greater risk of loss than if the Adviser had more complete information. Structured reinsurance instruments generally will be considered illiquid securities by the Fund. These securities may be difficult to purchase, sell or unwind. Illiquid securities also may be difficult to value. If the Fund is forced to sell an illiquid asset, the Fund may be forced to sell at a loss.
H. Automatic Dividend Reinvestment Plan
All shareowners whose shares are registered in their own names automatically participate in the Automatic Dividend Reinvestment Plan (the "Plan"), under which participants receive all dividends and capital gain distributions (collectively, dividends) in full and fractional shares of the Fund in lieu of cash. Shareowners may elect not to participate in the Plan. Shareowners not participating in the Plan receive all dividends and capital gain distributions in cash. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notifying American Stock Transfer & Trust Company, the agent for shareowners in administering the Plan (the "Plan Agent"), in writing prior to any dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or other nominee, the shareowner can ask the firm or nominee to participate in the Plan on the shareowner's behalf. If the firm or nominee does not offer the Plan, dividends will be paid in cash to the shareowner of record. A firm or nominee may reinvest a shareowner's cash dividends in shares of the Fund on terms that differ from the terms of the Plan.
Whenever the Fund declares a dividend on shares payable in cash, participants in the Plan will receive the equivalent in shares acquired by the Plan Agent either (i) through receipt of additional unissued but authorized shares from the Fund or (ii) by purchase of outstanding shares on the NYSE or elsewhere. If, on the payment date for any dividend, the net asset value per share is equal to or less than the market price per share plus estimated brokerage trading fees (market premium), the Plan Agent will invest the dividend amount in newly issued shares. The number of newly issued shares to be credited to each account will be determined by dividing the dollar amount of the dividend by the net asset value per share on the date the shares are issued, provided that the maximum discount from the then current market price per share on the date of issuance does not exceed 5%. If, on the payment date for any dividend, the net asset value per share is
54 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
greater than the market value (market discount), the Plan Agent will invest the dividend amount in shares acquired in open-market purchases. There are no brokerage charges with respect to newly issued shares. However, each participant will pay a pro rata share of brokerage trading fees incurred with respect to the Plan Agent's open-market purchases. Participating in the Plan does not relieve shareowners from any federal, state or local taxes which may be due on dividends paid in any taxable year. Shareowners holding Plan shares in a brokerage account may be able to transfer the shares to another broker and continue to participate in the Plan.
I. Statement of Cash Flows
Information on financial transactions which have been settled through the receipt or disbursement of cash or restricted cash is presented in the Statement of Cash Flows. Cash as presented in the Fund's Statement of Assets and Liabilities includes cash on hand at the Fund's custodian bank and does not include any short-term investments. As of and for the six months ended May 31, 2022, the Fund had no restricted cash presented on the Statement of Assets and Liabilities.
J. Forward Foreign Currency Exchange Contracts
The Fund may enter into forward foreign currency exchange contracts ("contracts") for the purchase or sale of a specific foreign currency at a fixed price on a future date. All contracts are marked-to-market daily at the applicable exchange rates, and any resulting unrealized appreciation or depreciation is recorded in the Fund's financial statements. The Fund records realized gains and losses at the time a contract is offset by entry into a closing transaction or extinguished by delivery of the currency. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of the contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar (see Note 6).
During the six months ended May 31, 2022, the Fund had entered into various forward foreign currency exchange contracts that obligated the Fund to deliver or take delivery of currencies at specified future maturity dates. Alternatively, prior to the settlement date of a forward foreign currency exchange contract, the Fund may close out such contract by entering into an offsetting contract.
The average market value of forward foreign currency exchange contracts open during the six months ended May 31, 2022, was $0 and $234,188 for buys and sells, respectively. Open forward foreign currency exchange contracts outstanding at May 31, 2022, are listed in the Schedule of Investments.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 55
2. Management Agreement
The Adviser manages the Fund’s portfolio. Management fees payable under the Fund’s Investment Management Agreement with the Adviser are calculated daily and paid monthly at the annual rate of 0.70% of the Fund’s average daily managed assets. “Managed assets” means (a) the total assets of the Fund, including any form of investment leverage, minus (b) all accrued liabilities incurred in the normal course of operations, which shall not include any liabilities or obligations attributable to investment leverage obtained through (i) indebtedness of any type (including, without limitation, borrowing through a credit facility or the issuance of debt securities), (ii) the issuance of preferred stock or other similar preference securities, and/or (iii) any other means. For the six months ended May 31, 2022, the net management fee was 0.70% (annualized) of the Fund’s average daily managed assets, which was equivalent to 1.04% (annualized) of the Fund’s average daily net assets.
The Adviser has contractually agreed to limit ordinary operating expenses (ordinary operating expenses means all fund expenses other than taxes, brokerage commissions, interest expense, acquired fund fees and expenses, and extraordinary expenses, such as litigation costs or extraordinary proxy costs) to the extent required to reduce fund expenses to 1.94% of the average daily net assets of the Fund’s common shares. This expense limitation is in effect through September 15, 2022. There can be no assurance that the Adviser will extend the expense limitation agreement beyond the date referred to above.
In addition, under the management and administration agreements, certain other services and costs, including accounting, regulatory reporting and insurance premiums, are paid by the Fund as administrative reimbursements. Included in “Due to affiliates” reflected on the Statement of Assets and Liabilities is $37,679 in management fees, administrative costs and certain other reimbursements payable to the Adviser at May 31, 2022.
3. Compensation of Directors and Officers
The Fund pays an annual fee to its Directors. The Adviser reimburses the Fund for fees paid to the Interested Directors. The Fund does not pay any salary or other compensation to its officers. For the six months ended May 31, 2022, the Fund paid $4,468 in Directors’ compensation, which is reflected on the Statement of Operations as Directors’ fees. At May 31, 2022, the Fund had a payable for Directors’ fees on its Statement of Assets and Liabilities of $1,520.
56 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
4. Transfer Agent
American Stock Transfer & Trust Company (“AST”) serves as the transfer agent with respect to the Fund’s common shares. The Fund pays AST an annual fee as is agreed to from time to time by the Fund and AST for providing such services.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses incurred by the transfer agent related to shareowner communications activities such as proxy and statement mailings and outgoing phone calls.
5. Master Netting Agreements
The Fund has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with substantially all of its derivative counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs the trading of certain Over the Counter (“OTC”) derivatives and typically contains, among other things, close-out and set-off provisions which apply upon the occurrence of an event of default and/or a termination event as defined under the relevant ISDA Master Agreement. The ISDA Master Agreement may also give a party the right to terminate all transactions traded under such agreement if, among other things, there is deterioration in the credit quality of the other party.
Upon an event of default or a termination of the ISDA Master Agreement, the non-defaulting party has the right to close-out all transactions under such agreement and to net amounts owed under each transaction to determine one net amount payable by one party to the other. The right to close out and net payments across all transactions under the ISDA Master Agreement could result in a reduction of the Fund’s credit risk to its counterparty equal to any amounts payable by the Fund under the applicable transactions, if any. However, the Fund’s right to set-off may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which each specific ISDA Master Agreement of each counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master Agreement are governed by a credit support annex to the ISDA Master Agreement. Collateral requirements are generally determined at the close of business each day and are typically based on changes in market values for each transaction under an ISDA Master Agreement and netted into one amount for such agreement. Generally, the amount of collateral due from or to a counterparty is subject to threshold (a “minimum transfer amount”) before a transfer is required, which may vary by counterparty.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 57
Collateral pledged for the benefit of the Fund and/or counterparty is held in segregated accounts by the Fund’s custodian and cannot be sold, re-pledged, assigned or otherwise used while pledged. Cash that has been segregated to cover the Fund’s collateral obligations, if any, will be reported separately on the Statement of Assets and Liabilities as “Swaps collateral”. Securities pledged by the Fund as collateral, if any, are identified as such in the Schedule of Investments.
Financial instruments subject to an enforceable master netting agreement, such as an ISDA Master Agreement, have been offset on the Statement of Assets and Liabilities. The following charts show gross assets and liabilities of the Fund as of May 31, 2022.
| | | Derivative | | | | | | | |
| | | Assets | | | | | | | |
| | | Subject to | | Derivatives | Non-Cash | Cash | | Net Amount | |
| | | Master Netting | | Available | Collateral | Collateral | | of Derivative | |
| Counterparty | | Agreement | | for Offset | Pledged (a) | Pledged (a) | | Assets (b) | |
| State Street | | | | | | | | | |
| Bank & Trust Co. | $ | — | | $ — | $ — | $ — | $ | — | |
| Total | $ | — | | $— | $— | $— | $ | — | |
| |
| | | Derivative | | | | | | | |
| | | Liabilities | | | | | | | |
| | | Subject to | | Derivatives | Non-Cash | Cash | | Net Amount | |
| | | Master Netting | | Available | Collateral | Collateral | | of Derivative | |
| Counterparty | | Agreement | | for Offset | Pledged (a) | Pledged (a) | | Liabilities (b) | |
| State Street | | | | | | | | | |
| Bank & Trust Co. | $ | (17,657 | ) | $ — | $ — | $ — | $ | (17,657 | ) |
| Total | $ | (17,657 | ) | $— | $— | $— | $ | (17,657 | ) |
| (a) | | The amount presented here may be less than the total amount of collateral received/pledged as the net amount of derivative assets and liabilities cannot be less than $0. |
| (b) | | Represents the net amount payable to the counterparty in the event of default. |
6. Additional Disclosures about Derivative Instruments and Hedging Activities
The Fund’s use of derivatives may enhance or mitigate the Fund’s exposure to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to make further principal or interest payments on an obligation or commitment that it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or liability due to changes in currency exchange rates.
58 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange rate risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity index will fluctuate based on increases or decreases in the commodities market and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) by risk exposure at May 31, 2022, was as follows:
| Statement of Assets and Liabilities | | | | |
| | | | Foreign | | |
| | Interest | Credit | Exchange | Equity | Commodity |
| | Rate Risk | Risk | Rate Risk | Risk | Risk |
| Liabilities | | | | | |
| Net unrealized | | | | | |
| depreciation on | | | | | |
| forward foreign | | | | | |
| currency exchange | | | | | |
| contracts | $ — | $ — | $ 17,657 | $ — | $ — |
| Total Value | $ — | $ — | $ 17,657 | $ — | $ — |
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations by risk exposure at May 31, 2022 was as follows:
| | | | | | | | |
| Statement of Operations | | | | | | | |
| | | | | Foreign | | | |
| | Interest | Credit | | Exchange | | Equity | Commodity |
| | Rate Risk | Risk | | Rate Risk | | Risk | Risk |
| Net Realized | | | | | | | |
| Gain (Loss) on | | | | | | | |
| Forward foreign | | | | | | | |
| currency exchange | | | | | | | |
| contracts | $ — | $ — | $ | (1,245 | ) | $ — | $ — |
| Total Value | $ — | $ — | $ | (1,245 | ) | $ — | $ — |
| |
| Change in Net | | | | | | | |
| Unrealized Appreciation | | | | | | |
| (Depreciation) on | | | | | | | |
| Forward foreign | | | | | | | |
| currency exchange | | | | | | | |
| contracts | $ — | $ — | $ | (17,657 | ) | $ — | $ — |
| Total Value | $ — | $ — | $ | (17,657 | ) | $ — | $ — |
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 59
7. Unfunded Loan Commitments
The Fund may enter into unfunded loan commitments. Unfunded loan commitments may be partially or wholly unfunded. During the contractual period, the Fund is obliged to provide funding to the borrower upon demand. A fee is earned by the Fund on the unfunded loan commitment and is recorded as interest income on the Statement of Operations. Unfunded loan commitments are fair valued in accordance with the valuation policy described in Footnote 1A and unrealized appreciation or depreciation, if any, is recorded on the Statement of Assets and Liabilities.
As of May 31, 2022, the Fund had the following unfunded loan commitments outstanding:
| | | | | | | | | Unrealized | |
| Loan | | Principal | | Cost | | Value | | (Depreciation) | |
| athenahealth, Inc. | $ | 130,435 | $ | 130,435 | $ | 124,851 | $ | (5,584 | ) |
| East West | | | | | | | | | |
| Manufacturing LLC | | 114,285 | | 113,179 | | 108,571 | | (4,608 | ) |
| Medical Solutions | | | | | | | | | |
| Holdings, Inc. | | 80,000 | | 79,627 | | 76,600 | | (3,027 | ) |
| Project Watson | | | | | | | | | |
| Bridge Loan | | 1,003,200 | | 1,003,200 | | 1,003,200 | | — | |
| Service Logic | | | | | | | | | |
| Acquisition, Inc. | | 61,194 | | 61,653 | | 58,746 | | (2,907 | ) |
| Trident TPI Holdings, Inc. | | 32,348 | | 32,348 | | 31,037 | | (1,311 | ) |
| Total Value | $ | 1,421,462 | $ | 1,420,442 | $ | 1,403,005 | $ | (17,437 | ) |
8. Fund Shares
There are 1,000,000,000 shares of common stock of the Fund (“common shares”), $0.001 par value per share authorized.
Transactions in common shares for the six months ended May 31, 2022 and the year ended November 30, 2021, were as follows:
| | | |
| | 5/31/22 | 11/30/21 |
| Shares outstanding at beginning of period | 12,371,383 | 24,738,174 |
| Shares outstanding at end of period | 12,374,933 | 12,371,383 |
9. Tender Offer
The Fund announced a tender offer on August 31, 2020, and commenced the tender offer on November 23, 2020, pursuant to which the Fund offered to purchase up to 50% of the Fund’s outstanding common shares (the “Shares”) at a price per Share equal to 98.5% of the net asset value per Share as of the close of regular trading on the New York Stock Exchange (“NYSE”) on the business day immediately following the expiration date of
60 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
the tender offer. The tender offer expired on December 22, 2020. The tender offer was commenced pursuant to a settlement agreement made by the Board with Saba Capital Management, L.P. and certain associated parties.
The Fund accepted 12,369,087 duly tendered and not withdrawn Shares, representing approximately 50% of the Fund’s outstanding Shares. The Shares accepted for tender were repurchased at a price of $11.0616, equal to 98.5% of the net asset value per Share of $11.23 as of the close of regular trading on the New York Stock Exchange on December 23, 2020, the pricing date stated in the Offer to Purchase. Because the total number of Shares tendered exceeded the number of Shares offered to purchase, all tendered Shares were subject to pro-ration in accordance with the terms of the Offer to Purchase. Under final pro-ration, 86.4% of the Shares tendered were accepted for payment, subject to adjustment for fractional shares. Payment for the accepted Shares was made on December 28, 2020. Following the purchase of the tendered Shares, the Fund had approximately 12,369,087 Shares outstanding.
At December 29, 2020, following the completion of the Fund’s tender offer, Saba Capital Management, L.P. and certain associated parties beneficially owned approximately 6.3% of the Fund’s outstanding Common Shares (based on a Form 13G filed by Saba Capital Management, L.P., Saba Capital Management GP, LLC and Mr. Boaz R. Weinstein on December 29, 2020). As of December 31, 2021, Saba Capital Management, L.P. and associated parties did not own Shares of the Fund (based on a Form 13G filed by Saba Capital Management, L.P., Saba Capital Management GP, LLC and Mr. Boaz R. Weinstein on December 29, 2020).
10. Credit Agreement
The Fund has entered into a Revolving Credit Facility (the “Credit Agreement”) with the Bank of Nova Scotia in the amount of $150,000,000. The credit agreement is an “evergreen” facility that renews on a daily basis in perpetuity. Either party may elect to terminate its commitment under the credit agreement upon 179-days written notice.
Interest on borrowings is payable at the London Interbank Offered Rate (LIBOR) plus 0.95% on an annualized basis, or the Alternate Base Rate, which is the greater of (a) the facility's administrative agent's daily announced prime rate on the borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing date or (c) 2% plus the overnight Eurodollar rate on the borrowing date.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 61
At May 31, 2022, the Fund had a borrowing outstanding under the credit agreement totaling $64,200,000. The interest rate charged at May 31, 2022 was 1.82%. During the six months ended May 31, 2022, the average daily balance was $68,532,418 at an average interest rate of 1.24%. Interest expense of $427,980 in connection with the credit agreement is included on the Statement of Operations.
The Fund is required to maintain 300% asset coverage with respect to amounts outstanding under the Credit Agreement. Asset coverage is calculated by subtracting the Fund’s total liabilities not including any bank loans and senior securities, from the Fund’s total assets and dividing such amount by the principal amount of the borrowing outstanding.
11. Subsequent Events
A monthly distribution was declared on June 3, 2022 of $0.0600 per share payable June 30, 2022 to share owners of record on June 16, 2022.
62 Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22
Additional Information
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Fund may purchase, from time to time, its shares in the open market.
Pioneer Floating Rate Fund, Inc. | Semiannual Report | 5/31/22 63
Directors, Officers and Service Providers
| Directors | Officers |
| Thomas J. Perna, Chairman | Lisa M. Jones, President and |
| John E. Baumgardner, Jr. | Chief Executive Officer |
| Diane Durnin | Anthony J. Koenig, Jr., Treasurer |
| Benjamin M. Friedman | and Chief Financial and |
| Lisa M. Jones | Accounting Officer |
| Craig C. MacKay | Christopher J. Kelley, Secretary and |
| Lorraine H. Monchak | Chief Legal Officer |
| Marguerite A. Piret | |
| Fred J. Ricciardi | |
| Kenneth J. Taubes | |
Investment Adviser and Administrator
Amundi Asset Management US, Inc.
Custodian and Sub-Administrator
The Bank of New York Mellon Corporation
Legal Counsel
Morgan, Lewis & Bockius LLP
Transfer Agent
American Stock Transfer & Trust Company
Proxy Voting Policies and Procedures of the Fund are available without charge, upon request, by calling our toll free number (1-800-225-6292). Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is publicly available to shareowners at www.amundi.com/us. This information is also available on the Securities and Exchange Commission’s web site at www.sec.gov.
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How to Contact Amundi
We are pleased to offer a variety of convenient ways for you to contact us for assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
| Account Information | 1-800-710-0935 |
| |
| Or write to AST: | |
| For | Write to |
| |
| General inquiries, lost dividend checks, | American Stock |
| change of address, lost stock certificates, | Transfer & Trust |
| stock transfer | Operations Center |
| | 6201 15th Ave. |
| | Brooklyn, NY 11219 |
| |
| Dividend reinvestment plan (DRIP) | American Stock |
| | Transfer & Trust |
| | Wall Street Station |
| | P.O. Box 922 |
| | New York, NY 10269-0560 |
| |
| Website | www.amstock.com |
For additional information, please contact your investment advisor or visit our web site www.amundi.com/us.
The Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareowners may view the filed Form N-PORT by visiting the Commission’s web site at https://www.sec.gov.
Amundi Asset Management US, Inc.
60 State Street
Boston, MA 02109
www.amundi.com/us
© 2022 Amundi Asset Management US, Inc. 19389-16-0722
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, explain why it has not done so.
The registrant has adopted, as of the end of the period covered by this report, a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term “code of ethics” means written standards that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and regulations;
(4) The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the period covered by the report, to a provision of its code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item. The registrant must file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless the registrant has elected to satisfy paragraph (f) of this Item by posting its code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by undertaking to provide its code of ethics to any person without charge, upon request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period covered by this report.
(d) If the registrant has, during the period covered by the report, granted a waiver, including an implicit waiver, from a provision of the code of ethics to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this Item, the registrant must briefly describe the nature of the waiver, the name of the person to whom the waiver was granted, and the date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from, a provision of its code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions and that relates to any element of the code of ethics definition
enumerated in paragraph (b) of this Item by posting such information on its Internet website, disclose the registrant’s Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of its code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, as an exhibit to its annual report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and disclose, in its most recent report on this Form N-CSR, its Internet address and the fact that it has posted such code of ethics on its Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to any person without charge, upon request, a copy of such code of ethics and explain the manner in which such request may be made. See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant’s Board of Directors has determined that the registrant either:
(i) Has at least one audit committee financial expert serving on its audit committee; or
(ii) Does not have an audit committee financial expert serving on its audit committee.
The registrant’s Board of Directors has determined that the registrant has at least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is “independent.” In order to be considered “independent” for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the Board of Directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or
(ii) Be an “interested person” of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Mr. Fred J. Ricciardi, an independent Director, is such an audit committee financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1) (ii) of this Item, it must explain why it does not have an audit committee financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of their outside auditors. Maintaining independence is a shared responsibility involving Amundi Asset Management US, Inc., the audit committee and the independent auditors.
The Funds recognize that a Fund’s independent auditors: 1) possess knowledge of the Funds, 2) are able to incorporate certain services into the scope of the audit, thereby avoiding redundant work, cost and disruption of Fund personnel and processes, and 3) have expertise that has value to the Funds. As a result, there are situations where it is desirable to use the Fund’s independent auditors for services in addition to the annual audit and where the potential for conflicts of interests are minimal. Consequently, this policy, which is intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and procedures to be followed by the Funds when retaining the independent audit firm to perform audit, audit-related tax and other services under those circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also constitute approval for any other Fund whose pre-approval is required pursuant to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services that may be provided consistently with Rule 210.2-01 may be approved by the Audit Committee itself and any pre-approval that may be waived in accordance with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund’s independent auditors and their compensation shall be determined by the Audit Committee and shall not be subject to this policy.
| | | |
| SECTION II - POLICY |
| |
| SERVICE CATEGORY | SERVICE CATEGORY DESCRIPTION | SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES |
| | | |
| I. AUDIT SERVICES | Services that are directly | o Accounting research assistance |
| | related to performing the | o SEC consultation, registration |
| | independent audit of the Funds | statements, and reporting |
| | | o Tax accrual related matters |
| | | o Implementation of new accounting standards |
| | | o Compliance letters (e.g. rating agency letters) |
| | | o Regulatory reviews and assistance |
| | | regarding financial matters |
| | | o Semi-annual reviews (if requested) |
| | | o Comfort letters for closed end offerings |
| II. AUDIT-RELATED | Services which are not | o AICPA attest and agreed-upon procedures |
| SERVICES | prohibited under Rule | o Technology control assessments |
| | 210.2-01(C)(4) (the “Rule”) | o Financial reporting control assessments |
| | and are related extensions of | o Enterprise security architecture |
| | the audit services support the | assessment |
| | audit, or use the knowledge/expertise | |
| | gained from the audit procedures as a | |
| | foundation to complete the project. | |
| | In most cases, if the Audit-Related | |
| | Services are not performed by the | |
| | Audit firm, the scope of the Audit | |
| | Services would likely increase. | |
| | The Services are typically well-defined | |
| | and governed by accounting | |
| | professional standards (AICPA, | |
| | SEC, etc.) | |
| | |
| AUDIT COMMITTEE APPROVAL POLICY | AUDIT COMMITTEE REPORTING POLICY |
| o “One-time” pre-approval | o A summary of all such |
| for the audit period for all | services and related fees |
| pre-approved specific service | reported at each regularly |
| subcategories. Approval of the | scheduled Audit Committee |
| independent auditors as | meeting. |
| auditors for a Fund shall | |
| constitute pre approval for | |
| these services. | |
| |
| o “One-time” pre-approval | o A summary of all such |
| for the fund fiscal year within | services and related fees |
| a specified dollar limit | (including comparison to |
| for all pre-approved | specified dollar limits) |
| specific service subcategories | reported quarterly. |
| |
| o Specific approval is | |
| needed to exceed the | |
| pre-approved dollar limit for | |
| these services (see general | |
| Audit Committee approval policy | |
| below for details on obtaining | |
| specific approvals) | |
| |
| o Specific approval is | |
| needed to use the Fund’s | |
| auditors for Audit-Related | |
| Services not denoted as | |
| “pre-approved”, or | |
| to add a specific service | |
| subcategory as “pre-approved” | |
| | | | |
SECTION III - POLICY DETAIL, CONTINUED
| | |
| SERVICE CATEGORY | SERVICE CATEGORY DESCRIPTION | SPECIFIC PRE-APPROVED SERVICE |
| | | SUBCATEGORIES |
| III. TAX SERVICES | Services which are not | o Tax planning and support |
| | prohibited by the Rule, | o Tax controversy assistance |
| | if an officer of the Fund | o Tax compliance, tax returns, excise |
| | determines that using the | tax returns and support |
| | Fund’s auditor to provide | o Tax opinions |
| | these services creates | |
| | significant synergy in | |
| | the form of efficiency, | |
| | minimized disruption, or | |
| | the ability to maintain a | |
| | desired level of | |
| | confidentiality. | |
| | |
| AUDIT COMMITTEE APPROVAL POLICY | AUDIT COMMITTEE REPORTING POLICY |
| o “One-time” pre-approval | o A summary of |
| for the fund fiscal year | all such services and |
| within a specified dollar limit | related fees |
| | (including comparison |
| | to specified dollar |
| | limits) reported |
| | quarterly. |
| |
| o Specific approval is | |
| needed to exceed the | |
| pre-approved dollar limits for | |
| these services (see general | |
| Audit Committee approval policy | |
| below for details on obtaining | |
| specific approvals) | |
| |
| o Specific approval is | |
| needed to use the Fund’s | |
| auditors for tax services not | |
| denoted as pre-approved, or to | |
| add a specific service subcategory as | |
| “pre-approved” | |
SECTION III - POLICY DETAIL, CONTINUED
| |
| SERVICE CATEGORY | SERVICE CATEGORY DESCRIPTION | SPECIFIC PRE-APPROVED SERVICE |
| | | SUBCATEGORIES |
| IV. OTHER SERVICES | Services which are not | o Business Risk Management support |
| | prohibited by the Rule, | o Other control and regulatory |
| A. SYNERGISTIC, | if an officer of the Fund | compliance projects |
| UNIQUE QUALIFICATIONS | determines that using the | |
| | Fund’s auditor to provide | |
| | these services creates | |
| | significant synergy in | |
| | the form of efficiency, | |
| | minimized disruption, | |
| | the ability to maintain a | |
| | desired level of | |
| | confidentiality, or where | |
| | the Fund’s auditors | |
| | posses unique or superior | |
| | qualifications to provide | |
| | these services, resulting | |
| | in superior value and | |
| | results for the Fund. | |
| | |
| AUDIT COMMITTEE APPROVAL POLICY | AUDIT COMMITTEE REPORTING POLICY |
| o “One-time” pre-approval | o A summary of |
| for the fund fiscal year within | all such services and |
| a specified dollar limit | related fees |
| | (including comparison |
| | to specified dollar |
| | limits) reported |
| | quarterly. |
| o Specific approval is | |
| needed to exceed the | |
| pre-approved dollar limits for | |
| these services (see general | |
| Audit Committee approval policy | |
| below for details on obtaining | |
| specific approvals) | |
| |
| o Specific approval is | |
| needed to use the Fund’s | |
| auditors for “Synergistic” or | |
| “Unique Qualifications” Other | |
| Services not denoted as | |
| pre-approved to the left, or to | |
| add a specific service | |
| subcategory as “pre-approved” | |
SECTION III - POLICY DETAIL, CONTINUED
| |
| SERVICE CATEGORY | SERVICE CATEGORY DESCRIPTION | SPECIFIC PROHIBITED SERVICE |
| | | SUBCATEGORIES |
| PROHIBITED SERVICES | Services which result | 1. Bookkeeping or other services |
| | in the auditors losing | related to the accounting records or |
| | independence status | financial statements of the audit |
| | under the Rule. | client* |
| | | 2. Financial information systems design |
| | | and implementation* |
| | | 3. Appraisal or valuation services, |
| | | fairness* opinions, or |
| | | contribution-in-kind reports |
| | | 4. Actuarial services (i.e., setting |
| | | actuarial reserves versus actuarial |
| | | audit work)* |
| | | 5. Internal audit outsourcing services* |
| | | 6. Management functions or human |
| | | resources |
| | | 7. Broker or dealer, investment |
| | | advisor, or investment banking services |
| | | 8. Legal services and expert services |
| | | unrelated to the audit |
| | | 9. Any other service that the Public |
| | | Company Accounting Oversight Board |
| | | determines, by regulation, is |
| | | impermissible |
| | |
| AUDIT COMMITTEE APPROVAL POLICY | AUDIT COMMITTEE REPORTING POLICY |
| o These services are not to be | o A summary of all |
| performed with the exception of the(*) | services and related |
| services that may be permitted | fees reported at each |
| if they would not be subject to audit | regularly scheduled |
| procedures at the audit client (as | Audit Committee meeting |
| defined in rule 2-01(f)(4)) level | will serve as continual |
| the firm providing the service. | confirmation that has |
| | not provided any |
| | restricted services. |
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund’s auditors will each make an assessment to determine that any proposed projects will not impair independence.
o Potential services will be classified into the four non-restricted service categories and the “Approval of Audit, Audit-Related, Tax and Other Services” Policy above will be applied. Any services outside the specific pre-approved service subcategories set forth above must be specifically approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the services by service category, including fees, provided by the Audit firm as set forth in the above policy.
(2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the principal accountants engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant for services rendered to the registrant, and rendered to the registrants investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrants audit committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrants investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
The Fund’s audit committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the Affiliates (as defined) that were not pre- approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17 CFR 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has such a committee, however designated, identify each committee member. If the entire Board of Directors is acting as the registrant’s audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in 210.1212 of Regulation S-X [17 CFR 210.12-12], unless the schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its shareholders, on the one hand, and those of the company’s investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the company’s investment adviser, or any other third party, that the company uses, or that are used on the company’s behalf, to determine how to vote proxies relating to portfolio securities.
N/A
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that is filing an annual report on this Form N-CSR, provide the following information:
(1) State the name, title, and length of service of the person or persons employed by or associated with the registrant or an investment adviser of the registrant who are primarily responsible for the day-to-day management of the registrant’s portfolio (“Portfolio Manager”). Also state each Portfolio Manager’s business experience during the past 5 years.
N/A
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company, in the following tabular format, provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any affiliated purchaser, as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the registrant’s equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. 781).
N/A
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15)) of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s Board of Directors since the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A) in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant’s principal executive and principal financials officers, or persons performing similar functions, regarding the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are effective based on the evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(b) Disclose any change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that occured during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
(a) If the registrant is a closed-end management investment company, provide the following dollar amounts of income and compensation related to the securities lending activities of the registrant during its most recent fiscal year:
N/A
(1) Gross income from securities lending activities;
N/A
(2) All fees and/or compensation for each of the following securities lending activities and related services: any share of revenue generated by the securities lending program paid to the securities lending agent(s) (revenue split); fees paid for cash collateral management services (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split; administrative fees that are not included in the revenue split; fees for indemnification that are not included in the revenue split; rebates paid to borrowers; and any other fees relating to the securities lending program that are not included in the revenue split, including a description of those other fees;
N/A
(3) The aggregate fees/compensation disclosed pursuant to paragraph (2); and
N/A
(4) Net income from securities lending activities (i.e., the dollar amount in paragraph (1) minus the dollar amount in paragraph (3)).
If a fee for a service is included in the revenue split, state that the fee is included in the revenue split.
N/A
(b) If the registrant is a closed-end management investment company, describe the services provided to the registrant by the securities lending agent in the registrants most recent fiscal year.
N/A
ITEM 13. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
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.
(Registrant) Pioneer Floating Rate Fund, Inc.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President and Chief Executive Officer
Date August 2, 2022
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 (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President and Chief Executive Officer
Date August 2, 2022
By (Signature and Title)* /s/ Anthony J. Koenig, Jr.
Anthony J. Koenig, Jr., Managing Director, Chief Operations Officer & Treasurer of the Funds
Date August 2, 2022
* Print the name and title of each signing officer under his or her signature.
