OMB APPROVAL
OMB Number: 3235-0570
Expires: August 31, 2010
Estimated average burden
hours per response.....18.9
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 811-21978
Pioneer Series Trust VI
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment 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: October 31
Date of reporting period: November 1, 2007 through October 31, 2008
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.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Floating
Rate Fund
Annual Report | October 31, 2008
Ticker Symbols:
Class A FLARX
Class C FLCRX
Class Y FLYRX
[LOGO]PIONEER
INVESTMENTS(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 27
Notes to Financial Statements 34
Report of Independent Registered Public Accounting Firm 40
Approval of Investment Advisory Agreement 43
Trustees, Officers and Service Providers 46
Pioneer Floating Rate Fund | Annual Report | 10/31/08 1
Letter to Shareowners
Dear Shareowner,
Stock and bond markets around the globe this year have experienced one of their
most tumultuous periods in history. Investors have witnessed volatility of a
magnitude that many have never before seen. Distance often provides the best
vantage point for perspective. Still, we believe that the benefits of basic
investment principles that have stood the test of time -- even in the midst of
market turmoil -- cannot be underestimated.
First, invest for the long term. The founder of Pioneer Investments, Philip L.
Carret, began his investment career during the 1920s. One lesson he learned is
that while great prosperity affords an advantageous time for selling stocks,
extreme economic slumps can create opportunities for purchase. Indeed, many of
our portfolio managers, who follow the value-conscious investing approach of
our founder, are looking at recent market conditions as an opportunity to buy
companies whose shares we believe have been unjustifiably beaten down by
indiscriminate selling, but that we have identified as having strong prospects
over time. While investors may be facing a sustained market downturn, we
continue to believe that patience, along with staying invested in the market,
are important considerations for long-term investors.
A second principle is to stay diversified across different types of
investments. The global scope of the current market weakness poses challenges
for this basic investment axiom. But the turbulence makes now a good time to
reassess your portfolio and make sure that your investments continue to meet
your needs. We believe you should work closely with your financial advisor to
find the mix of stocks, bonds and money market assets that is best aligned to
your particular risk tolerance and investment objective.
As the investment markets sort through the continuing crisis in the financial
industry, we are staying focused on the fundamentals and risk management. With
more than 80 years of experience behind us, we have learned how to navigate
turbulent markets. At Pioneer Investments, risk management has always been a
critical part of our culture -- not just during periods of extraordinary
volatility. Our investment process is based on fundamental research,
quantitative analysis and active portfolio management. This three-pillared
process, which we apply to each of our portfolios, is supported by an
integrated team approach and is designed to carefully balance risk and reward.
While we
2 Pioneer Floating Rate Fund | Annual Report | 10/31/08
see potential chances for making money in many corners of the market, it takes
research and experience to separate solid investment opportunities from
speculation.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. Thank you for investing with Pioneer.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 3
Portfolio Management Discussion | 10/31/08
Bank loan investments struggled under the impacts of the spreading credit
crisis during the 12 months ended October 31, 2008. As investor demand for bank
loans to corporations contracted, the prices for bank loans fell, especially in
the final two months of the period. In the following interview, Portfolio
Manager Jonathan Sharkey discusses the factors that affected the performance of
Pioneer Floating Rate Fund during the 12 months ended October 31, 2008. Mr.
Sharkey, a member of Pioneer's Fixed Income team, is responsible for the daily
management of the Fund.
Q How did the Fund perform during the 12 months ended October 31, 2008?
A Pioneer Floating Rate Fund Class A shares returned -17.57% at net asset value
during the 12 months ended October 31, 2008. By comparison, the Fund's older
benchmark, the CSFB Leveraged Loan Index, returned -20.33%, while the Barclays
Capital (formerly Lehman Brothers) High Yield Performing Index, which will be
the Fund's new benchmark, returned -21.59% over the same period. During the
same 12 months, the average return of the 75 mutual funds in Lipper's Loan
Participation Category was -20.79%. On October 31, 2008, the 30-day SEC yield
on the Fund's Class A shares was 5.87%.
Q What were the principal factors affecting the Fund's performance during the
12-month period?
A The 12 months were the worst period for bank loans since indices began
tracking their performance. Loans were affected, as were other credit-
sensitive investments, by the continuing fallout from the credit crisis that
began in the subprime mortgage market back in the summer of 2007. Problems in
the market only became more extreme in the final two months of the annual
reporting period. In October 2008 alone, the Barclays Capital (formerly Lehman
Brothers) High Yield Loans Performing Index returned -14.45%, as investors
avoided any securities that entailed credit risk. The catalyst for the
dramatic downturn in October was the bankruptcy filing by investment bank
Lehman Brothers. The bankruptcy filing created ripple effects affecting many
financial institutions, particularly hedge funds, which began selling their
bank loans for liquidity purposes. Then, structured investment vehicles
started to hit their minimum price targets, triggering additional selling by
hedge funds and other investors. As a result of the dramatic price losses
during the month of October, bank loans ended the fiscal year at their lowest
prices in the recorded history of the market. Despite this, bank loans on a
year-to-date basis through October 31 still had outperformed many other asset
classes, such as high-yield bonds and stocks,
4 Pioneer Floating Rate Fund | Annual Report | 10/31/08
although they did trail U.S. Treasuries, which outperformed virtually all
other asset classes in a global flight-to-quality.
While the Fund's performance was clearly very disappointing, the Fund did
outperform its benchmarks and competitive peer group, primarily because of the
higher-quality orientation of its portfolio. The average credit quality of the
portfolio at October 31 was BB-.
Among the Fund's BB investments was a larger concentration of BB+ securities,
while loans rated B+ dominated the Fund's B holdings. The Fund owned no
securities rated CCC and had fewer non-rated investments than the index
weightings. In particular, the Fund had fewer covenant-light loans, which are
bank loans that put relatively few restrictions on borrowers and offer
relatively thin protection for investors. Our investments tended to be in
loans that offered greater covenant protection during a 12-month period when
covenant-light loans underperformed.
During the fiscal year ended October 31, 2008, when opportunities presented
themselves, we sought to add greater diversity of holdings to the Fund,
increasing the number of different holdings from 65 at the beginning of the
fiscal year on November 1, 2007, to 116 at October 31, 2008. This greater
diversity of holdings gave the Fund additional protection in the event of poor
performance by any single bank loan.
Q What types of investments had the greatest influence on Fund performance
during the 12-month period?
A In a disappointing period for bank loans, the Fund's investments in loans to
companies in the health care and utilities sectors tended to hold up well, as
these traditionally defensive areas outperformed in a weakening economy.
Our emphasis on quality also helped to protect the Fund in the face of rising
default rates in the industry. During the 12 months ended October 31, the
market default rate for bank loan investments rose from 0.25% to 3.5%. The
Fund had two defaults during the period, including a loan to Land Source,
which was a land development joint venture between homebuilder Lennar and the
California Public Employees' Retirement System (CALPERS). The joint venture
was hit hard by the real estate slump in California and filed for bankruptcy
protection. We have retained the position in the Fund because we think there
is an opportunity to recover some of the value of the investment. The other
default was on loans to Washington Mutual, the giant thrift institution that
ran into major difficulties in the mortgage crisis and eventually was taken
over by JP Morgan Chase.
Among other investments that detracted from results was a loan to American
Airlines, which was backed by leases of older aircraft that were particularly
affected by the rise in fuel prices. We sold that holding from the portfolio.
Also detracting from the Fund's results were investments in loans to
Pioneer Floating Rate Fund | Annual Report | 10/31/08 5
gambling-related institutions that performed poorly when gambling revenues
declined due to the slowing economy.
Q What is your investment outlook?
A Our overall view as we look ahead is one of caution, because of the many
uncertainties in the market.
On a fundamental basis, we believe bank loans are trading at extraordinarily
cheap levels and offer the opportunity for some price appreciation when the
market begins to stabilize and eventually recover. We believe that even if
market default rates were to increase from their present levels, bank loans at
present prices offer considerable potential value. The market still may face
some short-term volatility. With loan prices at unprecedented lows, the
overall loan market is trading at intrinsic value (this means that the entire
loan market is being priced by investors at levels that reflect historical
recovery rates in bankruptcy). With loan prices at historically deep
discounts, any payments by borrowers should allow investors to reap capital
appreciation, and the payment proceeds would then need to be reinvested by
fund managers. We believe that should boost both demand and prices, given the
limited supply of new loan issues in today's market.
Please refer to the Schedule of Investments on pages 15-26 for a full listing
of Fund securities.
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. When interest rates rise, the prices
of fixed-income securities in the Fund will generally fall. Conversely, when
interest rates fall, the prices of fixed-income securities in the Fund will
generally rise. The floating rate feature of the Fund's Senior Floating Rate
Loans means that these investments will not experience capital appreciation in
a declining interest rate environment. Investments in the Fund are subject to
possible loss due to the financial failure of issuers of underlying securities
and their inability to meet their debt obligations. Prepayment risk is the
chance that mortgage-backed bonds will be paid off early if falling interest
rates prompt homeowners to refinance their mortgages. Forced to reinvest the
unanticipated proceeds at lower interest rates, the Fund would experience a
decline in income and lose the opportunity for additional price appreciation
associated with falling interest rates. The value of collateral, if any,
securing a floating rate loan can decline, and may be insufficient to meet the
issuer's obligations or may be difficult to liquidate. In addition, the Fund's
access to collateral may be limited by bankruptcy or other insolvency laws.
Although Pioneer normally will seek to avoid receiving non-publicly available
information about the issuer of a loan, this decision not to receive the
information may place it at a disadvantage, relative to other loan investors,
in assessing the loan. The Fund is not diversified, which means that it can
invest a higher percentage of its assets in the securities of any one issuer
than a diversified fund. Being
6 Pioneer Floating Rate Fund | Annual Report | 10/31/08
non-diversified may magnify the Fund's losses from adverse events affecting a
particular issuer. Some of the floating rate loans and other investments in
which the Fund may invest will be considered to be illiquid. Illiquid
securities may be difficult to dispose of at a fair price at the times when the
Fund believes it is desirable to do so, and their market price is generally
more volatile than that of more liquid securities. Illiquid securities are also
more 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. Investing in foreign and/or emerging securities involves risks
relating to interest rates, currency exchange rates, economic and political
conditions. At times, the Fund's investments may represent industries or
industry sectors that are interrelated or have common risks, making it more
susceptible to any economic, political or regulatory developments or other
risks affecting those industries or sectors.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 7
Portfolio Summary | 10/31/08
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Senior Floating Rate Loan Interests 92.9%
U.S. Corporate Bonds 6.1%
Collateralized Mortgage Obligation 0.7%
U.S. Preferred Stock 0.3%
Portfolio Quality
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on S&P ratings)
[THE FOLLOWING IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Commercial Paper 1.8%
A 1.1%
BBB 4.4%
BB 67.9%
B & Lower 24.8%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. Mach Gen LLC, Term B Loan, 4.81%, 2/22/14 2.98%
2. Georgia-Pacific LLC, Add-on Term Loan B, 5.365%, 12/20/12 2.84
3. Custom Building Products, Inc., Second Lien Term Loan, 8.0%, 4/20/12 2.52
4. Hanesbrands, Inc., Term B Loan, 5.173%, 9/5/13 2.32
5. Sally Holdings LLC, Term B Loan, 5.196%, 11/16/13 2.22
6. BE Aerospace, Inc., Tranche B Term Loan, 6.071%, 7/28/14 1.74
7. Baldor Electric Co., Term Loan, 5.059%, 1/31/14 1.62
8. Collect Acquisition Corp., Term B Advance Loan, 7.415%, 5/15/13 1.52
9. Psychiatric Solutions, Inc., Term Loan, 4.796%, 7/2/12 1.46
10. Mastec, Inc., 7.625%, 2/1/17 1.44
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
8 Pioneer Floating Rate Fund | Annual Report | 10/31/08
Prices and Distributions | 10/31/08
Net Asset Value per Share
- --------------------------------------------------------------------------------
Class 10/31/08 10/31/07
- ---------------------------------------------
A $5.64 $7.29
- ---------------------------------------------
C $5.63 $7.29
- ---------------------------------------------
Y $5.64 $7.29
- ---------------------------------------------
Distributions per Share: 11/1/07-10/31/08
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- -----------------------------------------------------------------------
A $ 0.4293 $ -- $ --
- -----------------------------------------------------------------------
C $ 0.3670 $ -- $ --
- -----------------------------------------------------------------------
Y $ 0.4319 $ -- $ --
- -----------------------------------------------------------------------
Pioneer Floating Rate Fund | Annual Report | 10/31/08 9
Performance Update | 10/31/08 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Floating Rate Fund at public offering price,
compared to that of the Barclays Capital High Yield Bank Loan Performing Index.
Cumulative Total Returns
(As of October 31, 2008)
- ------------------------------------------------------------------
Net Asset Public Offering
Period Value Price (POP)
- ------------------------------------------------------------------
Life-of-Class
(2/14/07) -10.05% -12.42%
1 Year -17.57 -21.24
- ------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
- ------------------------------------------------------------------
Gross Net
- ------------------------------------------------------------------
1.58% 1.10%
- ------------------------------------------------------------------
[THE FOLLOWING IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
- ------------------------------------------------------------
Pioneer Floating Barclays Capital High Yield
Date Rate Fund Bank Loan Performing Index
- ------------------------------------------------------------
2/28/2007 $9,550 $10,000
- ------------------------------------------------------------
10/31/2007 $9,670 $10,100
- -----------------------------------------------------------
10/31/2008 $7,972 $8,555
- ------------------------------------------------------------
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
POP returns reflect deduction of maximum 4.5% sales charge. NAV results
represent the percent change in net asset value per share. Returns would have
been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 3/1/12 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
The Barclays Capital High Yield Bank Loan Performing Index provides broad and
comprehensive total return metrics of the universe of syndicated term loans. To
be included in the index, a bank loan must be dollar denominated, have at least
$150 million funded loan, a minimum term of one year, and a minimum initial
spread of LIBOR+125. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in an index.
10 Pioneer Floating Rate Fund | Annual Report | 10/31/08
Performance Update | 10/31/08 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Floating Rate Fund, compared to that of the Barclays
Capital High Yield Bank Loan Performing Index.
Cumulative Total Returns
(As of October 31, 2008)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
Life-of-Class
(2/14/07) -10.89% -10.89%
1 Year -18.46 -18.46
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
Gross Net
- -------------------------------------------------------------------
2.32% 2.00%
- -------------------------------------------------------------------
[THE FOLLOWING IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
- ------------------------------------------------------------
Pioneer Floating Barclays Capital High Yield
Date Rate Fund Bank Loan Performing Index
- ------------------------------------------------------------
2/28/2007 $10,000 $10,000
- ------------------------------------------------------------
10/31/2007 $10,070 $10,100
- ------------------------------------------------------------
10/31/2008 $8,211 $8,555
- ------------------------------------------------------------
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. "If redeemed" returns reflect the deduction of the 1% CDSC. All
results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 3/01/10 for Class C Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
The Barclays Capital High Yield Bank Loan Performing Index provides broad and
comprehensive total return metrics of the universe of syndicated term loans. To
be included in the index, a bank loan must be dollar denominated, have at least
$150 million funded loan, a minimum term of one year, and a minimum initial
spread of LIBOR+125. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in an index.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 11
Performance Update | 10/31/08 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Floating Rate Fund, compared to that of the Barclays
Capital High Yield Bank Loan Performing Index.
Cumulative Total Returns
(As of October 31, 2008)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
Life-of-Class
(2/14/07) -10.02% -10.02%
1 Year -17.53 -17.53
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
1.32% 1.32%
- -------------------------------------------------------------------
[THE FOLLOWING IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
- ------------------------------------------------------------
Pioneer Floating Barclays Capital High Yield
Date Rate Fund Bank Loan Performing Index
- ------------------------------------------------------------
- ------------------------------------------------------------
2/28/2007 $10,000 $10,000
- ------------------------------------------------------------
10/31/2007 $10,124 $10,100
- ------------------------------------------------------------
10/31/2008 $8,349 $8,555
- ------------------------------------------------------------
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results
are historical and assume the reinvestment of dividends and capital gains.
Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
The Barclays Capital High Yield Bank Loan Performing Index provides broad and
comprehensive total return metrics of the universe of syndicated term loans. To
be included in the index, a bank loan must be dollar denominated, have at least
$150 million funded loan, a minimum term of one year, and a minimum initial
spread of LIBOR+125. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in an Index.
12 Pioneer Floating Rate Fund | Annual Report | 10/31/08
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Floating Rate Fund
Based on actual returns from May 1, 2008 through October 31, 2008.
- --------------------------------------------------------------------------------
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
on 5/1/08
- --------------------------------------------------------------------------------
Ending Account Value $ 864.04 $ 841.92 $ 846.19
on 10/31/08
- --------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.10 $ 9.26 $ 5.01
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.10%, 2.00% and
1.08%, for Class A, Class C and Class Y shares, respectively, multiplied by
the average account value over the period, multiplied by 184/366 (to reflect
the one-half year period).
Pioneer Floating Rate Fund | Annual Report | 10/31/08 13
Comparing Ongoing Fund Expenses (continued)
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Floating Rate Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2008 through October 31, 2008.
- --------------------------------------------------------------------------------
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
on 5/1/08
- -----------------------------------------------------------------------------
Ending Account Value $1,019.61 $1,015.08 $1,019.71
on 10/31/08
- -----------------------------------------------------------------------------
Expenses Paid During Period* $ 5.58 $ 10.13 $ 5.48
- -----------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.10%, 2.00% and
1.08%, for Class A, Class C and Class Y shares, respectively, multiplied by
the average account value over the period, multiplied by 184/366 (to reflect
the one-half year period).
14 Pioneer Floating Rate Fund | Annual Report | 10/31/08
Schedule of Investments | 10/31/08
- -----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- -----------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 0.7%
BANKS -- 0.7%
Thrifts & Mortgage Finance -- 0.7%
$ 250,000 NR/Ba1 SBA CMBS Trust, 6.709%, 11/15/36 (c) $ 198,160
-----------
Total Banks $ 198,160
- -----------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $225,131) $ 198,160
- -----------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 6.0%
ENERGY -- 2.7%
Oil & Gas Equipment & Services -- 1.3%
500,000 5.780 NR/NR Sevan Marine ASA, Floating Rate Note,
5/14/13 (144A) $ 385,000
- -----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.4%
500,000 7.5075 B/B3 Sandridge Energy, Inc.,
Floating Rate Note, 4/1/14 $ 399,470
-----------
Total Energy $ 784,470
- -----------------------------------------------------------------------------------------------------
MATERIALS -- 0.3%
Diversified Metals & Mining -- 0.3%
100,000 5.880 BBB-/Ba2 Freeport-McMoran Copper & Gold, Inc.,
Floating Rate Note, 4/1/15 $ 77,967
-----------
Total Materials $ 77,967
- -----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 1.7%
Aerospace & Defense -- 0.3%
100,000 B-/B3 Aeroflex, Inc., 11.75%, 2/15/15 (144A) $ 70,000
- -----------------------------------------------------------------------------------------------------
Construction & Engineering -- 1.4%
500,000 B+/B1 Mastec, Inc., 7.625%, 2/1/17 $ 400,000
-----------
Total Capital Goods $ 470,000
- -----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
Airlines -- 0.1%
22,680 B-/Ba3 Continental Airlines, Inc., 7.461%,
4/1/13 $ 18,130
-----------
Total Transportation $ 18,130
- -----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.1%
Health Care Equipment -- 0.1%
50,000 6.300 B+/B3 Universal Hospital Services, Inc., Floating
Rate Note, 6/1/15 $ 34,000
-----------
Total Health Care Equipment & Services $ 34,000
- -----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 15
Schedule of Investments | 10/31/08 (continued)
- -------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- -------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.3%
Specialized Finance -- 0.3%
$ 150,000 A-/Baa1 International Lease, 6.625%, 11/15/13 $ 97,397
-----------
Total Diversified Financials $ 97,397
- -------------------------------------------------------------------------------------------------------
INSURANCE -- 0.8%
Property & Casualty Insurance -- 0.8%
250,000 7.190 BB+/NR Blue Finance, Ltd., Floating Rate Note,
4/10/12 $ 223,200
-----------
Total Insurance $ 223,200
- -------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $2,147,952) $ 1,705,164
- -------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 89.9%**
ENERGY -- 3.3%
Integrated Oil & Gas -- 0.7%
240,000 8.000 B+/Ba2 Hudson Products Holdings, Inc.,
Term Loan, 8/24/15 $ 207,600
- -------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.7%
222,188 9.012 B/B2 Express Energy Services, Term Loan B,
7/2/13 $ 185,526
- -------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.9%
490,053 6.645 B+/B2 Calpine Corp., First Priority Term Loan,
3/29/09 $ 394,318
200,000 6.813 B/Caa1 Venoco, Inc., Second Lien Term Loan,
5/8/14 152,000
-----------
$ 546,318
-----------
Total Energy $ 939,444
- -------------------------------------------------------------------------------------------------------
MATERIALS -- 8.0%
Aluminum -- 0.6%
170,579 5.770 BB/Ba2 Novelis Corp., U.S. Term Loan, 7/7/14 $ 121,794
77,536 5.770 BB/Ba2 Novelis, Inc., Canadian Term Loan,
7/7/14 55,361
-----------
$ 177,155
- -------------------------------------------------------------------------------------------------------
Diversified Chemical -- 1.0%
250,000 4.969 BB-/Ba1 Huntsman International LLC, New Term B
Loan, 4/19/14 $ 217,411
71,331 6.450 B+/Ba3 Ineos U.S. Finance LLC, Term C2 Facility
Loan, 12/15/14 39,054
71,339 5.950 B+/Ba3 Ineos U.S. Finance LLC, Term B2 Facility
Loan, 12/16/13 39,712
-----------
$ 296,177
- -------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Floating Rate Fund | Annual Report | 10/31/08
- ----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- ----------------------------------------------------------------------------------------------------
Paper Packaging -- 1.4%
$ 198,489 5.744 B+/B2 Graham Packaging Co., New Term Loan,
10/7/11 $ 162,562
295,636 6.856 BB/Ba2 Graphic Packaging International, Inc.,
Incremental Term Loan, 5/16/14 251,844
-----------
$ 414,406
- ----------------------------------------------------------------------------------------------------
Paper Products -- 2.8%
944,759 5.365 BB+/Ba2 Georgia-Pacific LLC, Add-on Term Loan B,
12/20/12 $ 787,037
- ----------------------------------------------------------------------------------------------------
Steel -- 2.2%
353,411 6.000 BB-/B3 Algoma Steel, Inc., Term Loan, 6/20/14 $ 286,263
493,750 8.776 B/B3 Niagara Corp., Term Loan, 6/29/14 340,688
-----------
$ 626,951
-----------
Total Materials $ 2,301,726
- ----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 10.3%
Aerospace & Defense -- 3.5%
222,410 6.063 B+/Ba3 Aeroflex, Inc., Tranche B-1 Term Loan,
8/15/14 $ 177,928
523,688 6.071 BBB-/Ba1 BE Aerospace, Inc., Tranche B Term Loan,
7/28/14 481,793
108,177 7.366 BB-/NR DAE Aviation Holdings, Inc., Tranche B-1
Term Loan, 7/31/14 80,592
198,985 6.500 BB-/Ba3 Spirit Aerosystems, Inc., Term B Loan,
9/30/13 169,635
106,910 7.170 BB-/NR Standard Aero, Ltd., Tranche B-2 Loan,
7/31/14 79,648
-----------
$ 989,596
- ----------------------------------------------------------------------------------------------------
Construction & Engineering -- 3.0%
1,000,000 8.000 BB-/B1 Custom Building Products, Inc., Second
Lien Term Loan, 4/20/12 $ 700,000
198,887 5.726 BB+/Ba1 URS Corp., Tranche B Term Loan, 5/1/13 171,043
-----------
$ 871,043
- ----------------------------------------------------------------------------------------------------
Construction, Farm Machinery &
Heavy Trucks -- 2.1%
250,000 7.313 BB-/Ba3 Accuride Corp., Term Advance Loan,
1/31/12 $ 189,375
350,000 0.000 BBB-/Ba2 Manitowoc Co., Inc., Term B Loan,
8/21/14 276,674
224,821 7.699 BB/NR Rental Service Corp., Second Lien Initial
Loan, 11/21/13 138,827
-----------
$ 604,876
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 17
Schedule of Investments | 10/31/08 (continued)
- -----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- -----------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.7%
$ 250,000 0.000 BB-/Ba2 Kansas City Southern Railway Co., Term B
Advance, 4/28/13 $ 216,250
- -----------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.7%
248,741 5.223 BB+/Ba3 Mueller Water Products, Inc., Term Loan B,
5/24/14 $ 191,530
- -----------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.3%
100,000 0.000 BB+/Ba2 Interline Brands, Inc., Initial Term Loan,
6/23/13 $ 77,000
-----------
Total Capital Goods $ 2,950,295
- -----------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 3.1%
Commercial Printing -- 1.1%
13,587 4.954 BB-/BA3 Cenveo Corp., Delayed Draw Loan,
6/21/13 $ 10,258
407,736 4.954 BB-/BA3 Cenveo Corp., Term C Facility Loan,
6/21/13 307,840
-----------
$ 318,098
- -----------------------------------------------------------------------------------------------------
Diversified Commercial Services -- 1.3%
200,000 7.750 BB-/Ba3 Allied Security Holdings LLC, Term Loan,
2/27/15 $ 178,500
246,875 5.750 BB+/B1 Asset Acceptance Capital, Tranche B Term
Loan, 6/5/13 188,859
-----------
$ 367,359
- -----------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.7%
246,875 4.812 BB-/B2 Synagro Technologies, Inc., Term Loan,
4/2/14 $ 191,328
-----------
Total Commercial Services & Supplies $ 876,785
- -----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.1%
Air Freight & Couriers -- 1.1%
123,148 6.762 B/Ba2 Ceva Group Plc, Additional Pre-Term Loan,
11/4/13 $ 79,431
370,887 6.171 NR/Ba2 Ceva Group Plc, U.S. Term Loan, 11/4/13 239,222
-----------
$ 318,653
-----------
Total Transportation $ 318,653
- -----------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 1.7%
Auto Parts & Equipment -- 1.3%
293,629 5.945 BB-/B1 Allison Transmission, Inc., Term Loan,
8/7/14 $ 201,661
249,243 5.748 BB-/B1 Lear Corp., First Lien Term Loan, 6/6/12 162,008
-----------
$ 363,669
- -----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Floating Rate Fund | Annual Report | 10/31/08
- -----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- -----------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.4%
$ 175,000 4.780 BB/Ba1 Goodyear Tire & Rubber Co., Second Term
Loan, 4/30/14 $ 124,542
-----------
Total Automobiles & Components $ 488,211
- -----------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 3.6%
Apparel, Accessories & Luxury Goods -- 2.3%
752,989 5.173 BB/B1 Hanesbrands, Inc., Term B Loan, 9/5/13 $ 643,491
- -----------------------------------------------------------------------------------------------------
Homebuilding -- 0.6%
452,604 8.500 B+/B2 LandSource Communities Development
LLC, Roll Up Facility Loan, 5/31/09 $ 156,148
500,000 0.000 B+/B2 LandSource Communities Development
LLC, Facility Loan, 2/22/14 (d) 15,000
-----------
$ 171,148
- -----------------------------------------------------------------------------------------------------
Housewares & Specialties -- 0.7%
246,875 6.262 BB-/Ba3 Jarden Corp., Term Loan B3, 1/24/12 $ 206,604
-----------
Total Consumer Durables & Apparel $ 1,021,243
- -----------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.8%
Casinos & Gaming -- 1.4%
333,333 6.065 NR/NR Fontainebleau Las Vegas, Initial Term
Loan, 5/17/14 $ 145,000
413,542 6.553 BB-/NR Gateway Casinos & Entertainment, Inc.,
Term Advance Loan, 7/16/14 206,771
83,333 6.553 BB-/Ba3 Gateway Casinos & Entertainment, Inc.,
Delayed Draw Loan, 7/16/14 41,667
-----------
$ 393,438
- -----------------------------------------------------------------------------------------------------
Education Services -- 0.4%
159,600 7.500 BB-/Ba3 Bright Horizon Family, Tranche B Term
Loan, 5/21/15 $ 127,148
-----------
Total Consumer Services $ 520,586
- -----------------------------------------------------------------------------------------------------
MEDIA -- 8.8%
Broadcasting -- 1.5%
300,000 5.930 BB-/B1 Insight Media Holdings, Inc., B Term Loan,
4/7/14 $ 237,500
325,000 5.091 B-/Baa2 Univision Communications, Inc., Initial
Term Loan, 9/29/14 176,638
-----------
$ 414,138
- -----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 19
Schedule of Investments | 10/31/08 (continued)
- -----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
Cable & Satellite -- 3.4%
$ 496,250 5.480 B+/B1 Charter Communications, Inc.,
Replacement Loan, 3/5/14 $ 373,661
493,750 6.400 B/B3 Knology, Inc., Term Loan, 4/30/12 357,969
299,250 6.500 BB-/Ba3 MCC Iowa LLC, Tranche E Term Loan,
1/3/16 247,380
-----------
$ 979,010
- -----------------------------------------------------------------------------------------------------
Movies & Entertainment -- 2.3%
298,465 5.009 BB-/Ba1 AMC Entertainment, Inc., Term Loan,
1/26/13 $ 228,886
150,000 7.750 BB-/B2 FoxCo Acquisition Sub, LLC, Term Loan,
7/14/14 118,500
485,750 5.770 B/B1 LodgeNet Entertainment Corp., Closing
Date Loan, 4/4/14 313,309
-----------
$ 660,695
- -----------------------------------------------------------------------------------------------------
Publishing -- 1.6%
300,000 8.053 BB/Ba2 Getty Images, Inc., Initial Term Loan,
7/2/14 $ 273,150
277,920 6.763 BB/Ba1 RH Donnelley, Inc., Tranche D-1 Term
Loan, 6/30/11 186,207
-----------
$ 459,357
-----------
Total Media $ 2,513,200
- -----------------------------------------------------------------------------------------------------
RETAILING -- 2.6%
Internet Retail -- 0.5%
166,000 6.640 BBB-/Ba1 Ticketmaster Corp., Term B Loan, 7/22/14 $ 137,780
- -----------------------------------------------------------------------------------------------------
Specialty Stores -- 2.1%
783,322 5.196 BB-/B2 Sally Holdings LLC, Term B Loan,
11/16/13 $ 614,628
-----------
Total Retailing $ 752,408
- -----------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 0.3%
Drug Retail -- 0.3%
100,000 6.000 BB-/Ba3 Rite Aid Corp., Tranche 3 Term Loan,
6/4/14 $ 79,000
-----------
Total Food & Drug Retailing $ 79,000
- -----------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.3%
Packaged Foods & Meats -- 1.3%
297,733 4.620 BB+/B1 Dean Foods Co., Tranche B Term Loan,
4/2/14 $ 224,323
150,000 7.750 BBB/Baa3 Wm. Wrigley Jr. Co., Tranche B Term Loan,
7/25/14 142,538
-----------
$ 366,861
-----------
Total Food, Beverage & Tobacco $ 366,861
- -----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Floating Rate Fund | Annual Report | 10/31/08
- --------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- --------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.1%
Household Products -- 1.6%
$ 249,361 4.760 BB/B1 Central Garden & Pet Co., New Tranche B
Loan, 9/30/12 $ 167,695
423,269 5.762 BB-/Ba3 Yankee Candle Co., Term Loan, 2/6/14 285,707
-----------
$ 453,402
- --------------------------------------------------------------------------------------------------------
Personal Products -- 0.5%
198,489 5.118 BB-/Baa3 Brickman Group Holdings, Inc., Tranche B
Term Loan, 1/23/14 $ 155,814
-----------
Total Household & Personal Products $ 609,216
- --------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 10.7%
Health Care Equipment -- 0.9%
35,011 6.750 NR/NR Fresenius SE, Tranche B2 Term Loan,
8/20/14 $ 32,735
246,859 6.310 BB/NR Talecris Biotherapeutics, Inc., First Lien
Term Loan, 12/6/13 220,322
-----------
$ 253,057
- --------------------------------------------------------------------------------------------------------
Health Care Facilities -- 5.5%
453,663 5.63755 BB-/Ba3 CHS/Community Health Systems, Inc.,
Funded Term Loan, 7/25/14 $ 364,689
298,481 6.012 BB+/Ba2 HCA, Inc., Tranche B Term Loan, 11/7/13 247,068
491,769 4.796 B+/Ba3 Psychiatric Solutions, Inc., Term Loan,
7/2/12 403,865
80,460 5.704 B+/Ba2 Sun Healthcare, Group, Inc., Synthetic LC
Loan, 4/12/14 58,333
354,491 5.54125 B+/Ba2 Sun Healthcare, Group, Inc., Term Loan,
4/12/14 257,006
48,708 5.402 B+/Ba2 Sun Healthcare, Group, Inc., Delayed Draw
Loan, 4/19/14 35,313
55,069 5.620 B/Ba3 United Surgical Partners International, Inc.,
Delayed Draw Loan, 4/21/14 36,897
241,706 5.888 B/Ba3 United Surgical Partners International, Inc.,
Tranche B Term Loan, 4/19/14 161,943
-----------
$ 1,565,114
- --------------------------------------------------------------------------------------------------------
Health Care Services -- 2.7%
297,865 6.012 BB-/Ba3 Catalent Pharma Solutions, Inc., Dollar
Term Loan, 4/10/14 $ 192,868
64,989 6.750 BBB-/Baa2 Fresenius SE, Tranche B1 Term Loan,
8/22/14 60,765
244,856 5.180 B+/Ba3 Hanger Orthopedic Group, Inc., Tranche B
Term Loan, 5/26/13 192,212
385,171 5.985 BB-/Ba3 Healthsouth Corp., Term Loan, 3/10/13 320,066
-----------
$ 765,911
- --------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 21
Schedule of Investments | 10/31/08 (continued)
- -----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- -----------------------------------------------------------------------------------------------------
Health Care Supplies -- 1.6%
$ 119,100 7.012 BB-/B1 Bausch & Lomb, Inc., Parent Term Loan,
4/24/15 $ 96,669
18,000 4.707 BB-/B1 Bausch & Lomb, Inc., Delayed Draw Loan,
4/24/15 14,610
493,750 5.491 BB/B1 IM US Holdings LLC, First Term Loan,
6/26/14 364,552
-----------
$ 475,831
-----------
Total Health Care Equipment & Services $ 3,059,913
- -----------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 1.2%
Life Sciences Tools & Services -- 0.5%
150,000 0.000 NR/Baa3 Invitrogen Corp., Term Loan B, 6/11/16 $ 140,063
- -----------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.7%
248,125 6.624 BBB-/B1 Mylan Laboratories, Inc., U.S. Tranche B
Loan, 10/1/14 $ 214,229
-----------
Total Pharmaceuticals & Biotechnology $ 354,292
- -----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.4%
Consumer Finance -- 0.6%
142,253 6.520 BB-/B2 Dollar Financial Corp., Canadian Loan,
10/30/12 $ 110,246
104,598 6.520 BB-/B2 Dollar Financial Corp., Delayed Draw Loan,
10/30/12 81,063
-----------
$ 191,309
- -----------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.9%
297,750 5.310 BBB-/Ba2 MSCI, Inc., Term B Loan, 11/15/12 $ 251,599
- -----------------------------------------------------------------------------------------------------
Diversified Financial Services -- 1.4%
248,750 4.551 BB/Ba2 Metavante Corp., Term Loan, 11/1/14 $ 203,975
200,000 8.576 NR/Ba3 SRAM LLC, Term Loan, 9/15/14 185,000
-----------
$ 388,975
- -----------------------------------------------------------------------------------------------------
Specialized Finance -- 1.5%
488,597 7.415 BB-/Ba3 Collect Acquisition Corp., Term B Advance
Loan, 5/15/13 $ 421,415
-----------
Total Diversified Financials $ 1,253,298
- -----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Floating Rate Fund | Annual Report | 10/31/08
- ---------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- ---------------------------------------------------------------------------------------------------
INSURANCE -- 4.2%
Insurance Brokers -- 3.0%
$ 247,500 6.762 B-/B3 Alliant Holdings I, Inc., Term Loan,
8/21/14 $ 170,775
90,668 6.262 B+/B3 HUB International Holdings Ltd., Delayed
Draw Loan, 6/13/14 62,561
403,391 6.262 B+/B3 HUB International Holdings Ltd., Initial
Term Loan, 6/13/14 278,339
493,750 6.520 B/B2 USI Holdings Corp., Tranche B Term Loan,
5/7/14 345,625
-----------
$ 857,300
- ---------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 1.2%
493,750 5.617 B-/B2 AMWINS Group, Inc., Initial Term Loan,
6/11/13 $ 360,438
-----------
Total Insurance $ 1,217,738
- ---------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 4.4%
Application Software -- 0.3%
124,046 5.370 B/Ba3 Nuance Communications, Inc., Term Loan,
3/13/31 $ 93,448
- ---------------------------------------------------------------------------------------------------
Internet Software & Services -- 1.0%
300,000 9.045 B+/B1 Web Service Co., Term Loan, 8/28/14 $ 277,500
- ---------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 1.3%
491,250 4.553 BB/Ba3 SunGard Data Systems, Inc., New U.S.
Term Loan, 2/12/14 $ 378,613
- ---------------------------------------------------------------------------------------------------
Systems Software -- 1.8%
187,031 7.480 B+/Ba2 Macrovision Solutions Corp., Term Loan,
L+3.75% 5/2/13 $ 170,198
482,341 4.820 BB/Ba3 Vangent, Inc., Term Loan, 2/14/13 352,109
-----------
$ 522,307
-----------
Total Software & Services $ 1,271,868
- ---------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 5.2%
Communications Equipment -- 0.8%
298,496 6.205 BB-/Ba3 Commscope, Inc., Term B Loan,
12/26/14 $ 229,842
- ---------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 2.9%
302,500 6.701 BB/Ba2 Huawei-3Com Co., Ltd., Tranche B Term
Loan, 9/28/12 $ 260,150
311,731 4.870 BB-/Ba3 Itron, Inc., Dollar Term Loan, 4/18/14 257,178
100,000 7.500 BB-/Ba3 L-1 Identity Solutions, Inc., Term Loan,
7/31/13 89,250
247,500 7.370 B/B3 Scitor Corp., Term Loan, 9/28/14 219,038
-----------
$ 825,616
- ---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 23
Schedule of Investments | 10/31/08 (continued)
- ------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- ------------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 1.5%
$ 552,577 5.059 BB+/Ba3 Baldor Electric Co., Term Loan, 1/31/14 $ 450,120
----------
Total Technology Hardware & Equipment $1,505,578
- ------------------------------------------------------------------------------------------------------
SEMICONDUCTORS -- 1.2%
Semiconductors -- 1.2%
485,032 5.470 BB/NR Freescale Semiconductor, Inc., Term Loan,
12/2/13 $ 331,843
----------
Total Semiconductors $ 331,843
- ------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.8%
Alternative Carriers -- 0.5%
241,943 5.618 B/Caa1 PAETEC Holding Corp., Replacement Loan,
2/28/13 $ 160,892
- ------------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- 0.7%
19,633 6.594 B+/B2 Telesat Canada, U.S. Term II Loan,
10/24/14 $ 15,035
228,588 6.344 B+/B2 Telesat Canada, U.S. Term I Loan,
10/24/14 175,060
----------
$ 190,095
- ------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 3.6%
298,492 5.316 BB-/Ba3 Alltel Communications, Inc., Initial Tranche
B-2 Term Loan, 5/15/15 $ 284,911
150,000 0.000 BB-/Ba2 Centennial Cellular Corp., New Term Loan,
2/9/11 129,000
246,843 7.262 B-/Ba2 Cricket Communications, Inc., Term B
Loan, 6/16/13 210,346
246,851 5.375 B+/NR MetroPCS Wireless, Inc., New Tranche B
Loan, 11/4/13 204,948
237,374 6.26188 BB-/Ba2 Stratos Global Corp., Term B Facility,
2/13/12 195,833
----------
$1,025,038
----------
Total Telecommunication Services $1,376,025
- ------------------------------------------------------------------------------------------------------
UTILITIES -- 5.8%
Electric Utilities -- 0.7%
247,500 6.659 BBB-/Ba1 Texas Competitive Electric Holdings Co.,
LLC, Initial Tranche B-2 Term Loan,
10/10/14 $ 194,150
- ------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Floating Rate Fund | Annual Report | 10/31/08
- ---------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- ---------------------------------------------------------------------------------------------------
Independent Power Producer &
Energy Traders -- 4.3%
$ 889,046 4.810 B+/B2 Mach Gen LLC, Term B Loan, 2/22/14 $ 826,813
93,750 5.762 B+/B2 Mach Gen LLC, Synthetic L/C Loan,
2/8/14 87,188
119,502 5.262 BB/Ba1 NRG Energy, Inc., Credit-Linked Loan,
2/1/13 104,066
243,241 5.262 BB/Ba1 NRG Energy, Inc., Term Loan, 2/1/13 211,823
-----------
$ 1,229,890
- ---------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.8%
289,500 7.708 BB/Ba2 Goodman Global, Inc., Term Loan, 2/8/14 $ 236,666
-----------
Total Utilities $ 1,660,706
- ---------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE
LOAN INTERESTS
(Cost $33,223,338) $25,768,889
- ---------------------------------------------------------------------------------------------------
Shares
- ---------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 0.2%
Diversified Financials -- 0.2%
Diversified Financial Services -- 0.2%
100 Bank of America Corp., 7.25%, 12/31/49 $ 70,000
-----------
Total Diversified Financials $ 70,000
- ---------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $81,468) $ 70,000
- ---------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 96.8%
(Cost $35,677,889)(a) $27,742,213
- ---------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 3.2% $ 918,658
- ---------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $28,660,871
===================================================================================================
(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
October 31, 2008, the value of these securities amounted to $455,000 or
1.6% of total net assets.
** Senior floating rate loan interests in which the Fund invests generally
pay interest at rates that are periodically redetermined 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 (London InterBank Offered Rate), (ii) the prime rate
offered by one or more major United States banks, (iii) the certificate
of deposit or (iv) other base lending rates used by commercial lenders.
The rate shown is the coupon rate at period end.
NR Not rated.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 25
Schedule of Investments | 10/31/08
(a) At October 31, 2008, the net unrealized loss on investments based on cost
for federal income tax purposes of $35,705,289 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 9,891
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (7,972,967)
-----------
Net unrealized loss $(7,963,076)
===========
(b) Debt obligation with a variable interest rate. Rate shown is rate at end
of period.
(c) Security is fair valued (See Note A).
(d) Security is in default and is non-income producing.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 2008 aggregated $13,505,287 and $9,299,449,
respectively.
26 Pioneer Floating Rate Fund | Annual Report | 10/31/08
Statement of Assets and Liabilities | 10/31/08
ASSETS:
Investment in securities, at value (cost $35,677,889) $27,742,213
Cash 1,791,463
Receivables --
Fund shares sold 4,000
Interest 203,704
Due from Pioneer Investment Management, Inc. 9,803
Other 16,442
- -----------------------------------------------------------------------
Total assets $29,767,625
- -----------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 922,751
Fund shares repurchased 3,236
Dividends 6,188
Due to affiliates 1,645
Unrealized depreciation on unfunded corporate loans 103,700
Accrued expenses 69,234
- -----------------------------------------------------------------------
Total liabilities $ 1,106,754
- -----------------------------------------------------------------------
NET ASSETS:
Paid-in capital $37,711,997
Undistributed net investment income 28,128
Accumulated net realized loss on investments (1,039,878)
Net unrealized loss on investments (8,039,376)
- -----------------------------------------------------------------------
Total net assets $28,660,871
- -----------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $9,129,809/1,619,644 shares) $ 5.64
Class C (based on $9,039,639/1,605,082 shares) $ 5.63
Class Y (based on $10,491,423/1,861,223 shares) $ 5.64
MAXIMUM OFFERING PRICE:
Class A ($5.64 [divided by] 95.5%) $ 5.91
- -----------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 27
Statement of Operations
For the Year Ended 10/31/08
INVESTMENT INCOME:
Dividends $ 1,813
Interest 2,258,013
- ------------------------------------------------------------------------------------------------
Total investment income $ 2,259,826
- ------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 195,675
Transfer agent fees and expenses
Class A 2,841
Class C 3,374
Class Y 314
Distribution fees
Class A 12,011
Class C 107,251
Administrative fees 7,338
Custodian fees 44,001
Registration fees 56,207
Professional fees 66,972
Printing expense 25,426
Fees and expenses of nonaffiliated trustees 7,168
Miscellaneous 8,735
- ------------------------------------------------------------------------------------------------
Total expenses $ 537,313
Less management fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (84,869)
Less fees paid indirectly (97)
- ------------------------------------------------------------------------------------------------
Net expenses $ 452,347
- ------------------------------------------------------------------------------------------------
Net investment income $ 1,807,479
- ------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments: $ (881,728)
- ------------------------------------------------------------------------------------------------
Change in net unrealized loss on:
Investments $ (7,039,774)
Unfunded corporate loans (81,178) $ (7,120,952)
- ------------------------------------------------------------------------------------------------
Net loss on investments $ (8,002,680)
- ------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (6,195,201)
- ------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Floating Rate Fund | Annual Report | 10/31/08
Statements of Changes in Net Assets
For the Year Ended 10/31/08 and the period from 2/14/07 (Commencement of
Operations) to 10/31/07
- -------------------------------------------------------------------------------------------
2/14/07
(Commencement
Year Ended of Operations)
10/31/08 to 10/31/07
- -------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 1,807,479 $ 1,327,143
Net realized loss on investments (881,728) (129,361)
Change in net unrealized loss on investments (7,120,952) (918,424)
- -------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $(6,195,201) $ 279,358
- -------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.43 and $0.30 per share, respectively) $ (665,476) $ (448,599)
Class C ($0.37 and $0.26 per share, respectively) (578,010) (370,584)
Class Y ($0.43 and $0.30 per share, respectively) (701,747) (401,916)
- -------------------------------------------------------------------------------------------
Total distributions to shareowners $(1,945,233) $(1,221,099)
- -------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 5,440,990 $ 4,772,696
Reinvestment of distributions 1,867,710 30,118
Cost of shares repurchased (2,412,177) (1,956,291)
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 4,896,523 $ 2,846,523
- -------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(3,243,911) $ 1,904,782
NET ASSETS:
Beginning of period 31,904,782 30,000,000
- -------------------------------------------------------------------------------------------
End of period $28,660,871 $31,904,782
- -------------------------------------------------------------------------------------------
Undistributed net investment income $ 28,128 $ 140,079
- -------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 29
Statements of Changes in Net Assets (continued)
- -------------------------------------------------------------------------------------------------
'08 Shares '08 Amount '07 Shares '07 Amount
- -------------------------------------------------------------------------------------------------
Class A
Shares sold 194,199 $1,355,168 400,858 $3,007,472
Reinvestment of distributions 93,806 631,994 2,601 19,094
Less shares repurchased (205,898) (1,421,412) (199,255) (1,456,433)
- -------------------------------------------------------------------------------------------------
Net increase 82,107 $ 565,750 204,204 $1,570,133
- -------------------------------------------------------------------------------------------------
Class C
Shares sold 158,311 $1,096,540 233,308 $1,733,612
Reinvestment of distributions 80,117 540,519 1,506 11,024
Less shares repurchased (136,741) (907,064) (64,752) (471,025)
- -------------------------------------------------------------------------------------------------
Net increase 101,687 $ 729,995 170,062 $1,273,611
- -------------------------------------------------------------------------------------------------
Class Y
Shares sold 437,092 $2,989,282 4,508 $ 31,612
Reinvestment of distributions 103,477 695,197 -- --
Less shares repurchased (13,249) (83,701) (3,939) (28,833)
- -------------------------------------------------------------------------------------------------
Net increase 527,320 $3,600,778 569 $ 2,779
- -------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Floating Rate Fund | Annual Report | 10/31/08
Financial Highlights
- ---------------------------------------------------------------------------------------------
Year 2/14/07 (a)
Ended to
10/31/08 10/31/07
- ---------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 7.29 $ 7.50
- ---------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.40 $ 0.32
Net realized and unrealized loss on investments ( 1.62) (0.23)
- ---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ (1.22) $ 0.09
Distributions to shareowners:
Net investment income $ (0.43) $ (0.30)
- ---------------------------------------------------------------------------------------------
Net asset value, end of period $ 5.64 $ 7.29
- ---------------------------------------------------------------------------------------------
Total return* (17.57)% 1.21 %(b)
Ratio of net expenses to average net assets+ 1.10% 1.10%**
Ratio of net investment income to average net assets+ 5.85% 6.31%**
Portfolio turnover rate 30% 49%(b)
Net assets, end of period (in thousands) $ 9,130 $ 11,216
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.40% 1.47%**
Net investment income 5.55% 5.94%**
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.10% 1.10%**
Net investment income 5.85% 6.31%**
- ---------------------------------------------------------------------------------------------
(a) Class A shares were first publicly offered on February 14, 2007. * Assumes
initial investment at net asset value at the beginning of the period,
reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(b) Not annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 31
Financial Highlights (continued)
- ----------------------------------------------------------------------------------------------
Year 2/14/07 (a)
Ended to
10/31/08 10/31/07
- ----------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 7.29 $ 7.50
- ----------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.34 $ 0.28
Net realized and unrealized loss on investments (1.63) (0.23)
- ----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ (1.29) $ 0.05
Distributions to shareowners:
Net investment income $ (0.37) $ (0.26)
- ----------------------------------------------------------------------------------------------
Net asset value, end of period $ 5.63 $ 7.29
- ----------------------------------------------------------------------------------------------
Total return* (18.46)% 0.70%(b)
Ratio of net expenses to average net assets+ 2.00% 2.00%**
Ratio of net investment income to average net assets+ 4.96% 5.38%**
Portfolio turnover rate 30% 49%(b)
Net assets, end of period (in thousands) $ 9,040 $ 10,959
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.30% 2.32%**
Net investment income 4.66% 5.06%**
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.00% 2.00%**
Net investment income 4.96% 5.38%**
- ----------------------------------------------------------------------------------------------
(a) Class C shares were first publicly offered on February 14, 2007.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(b) Not annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Floating Rate Fund | Annual Report | 10/31/08
- ----------------------------------------------------------------------------------------------
Year 2/14/07 (a)
Ended to
10/31/08 10/31/07
- ----------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 7.29 $ 7.50
- ----------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.40 $ 0.33
Net realized and unrealized loss on investments (1.62) (0.24)
- ----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ (1.22) $ 0.09
Distributions to shareowners:
Net investment income $ (0.43) $ (0.30)
- ----------------------------------------------------------------------------------------------
Net asset value, end of period $ 5.64 $ 7.29
- ----------------------------------------------------------------------------------------------
Total return* (17.53)% 1.24%(b)
Ratio of net expenses to average net assets+ 1.08% 1.11%**
Ratio of net investment income to average net assets+ 5.82% 6.27%**
Portfolio turnover rate 30% 49%(b)
Net assets, end of period (in thousands) $ 10,491 $ 9,730
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.27% 1.32%**
Net investment income 5.63% 6.06%**
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.08% 1.11%**
Net investment income 5.82% 6.27%**
- ----------------------------------------------------------------------------------------------
(a) Class Y shares were first publicly offered on February 14, 2007.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
(b) Not annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 33
Notes to Financial Statements | 10/31/08
1. Organization and Significant Accounting Policies
Pioneer Floating Rate Fund (the Fund) is a Delaware statutory trust registered
under the Investment Company Act of 1940 as a non-diversified series of Pioneer
Series Trust VI, an open-end management investment company. The investment
objective of the Fund is to produce a high level of current income.
The Trustees have authorized the issuance of three classes of shares designated
as Class A, Class C, and Class Y shares. Class A, Class C and Class Y shares
were first publicly offered on February 14, 2007. Each class of shares
represents an interest in the same portfolio of investments of the Fund and has
equal rights to voting, redemptions, dividends and liquidation, except that
each class of shares can bear different transfer agent and distribution fees
and has exclusive voting rights with respect to the distribution plans that
have been adopted by Class A and Class C shareowners, respectively. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, 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 gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. The Fund invests in below investment grade debt
securities. Debt securities rated below investment grade are commonly referred
to as "junk bonds" and are considered speculative. These securities involve
greater risk of loss, are subject to greater price volatility, and are less
liquid, especially during periods of economic uncertainty or change, than
higher rated debt securities. The Fund's investments in foreign markets or
countries with limited developing markets may also subject the Fund to a
greater degree of risk than in a developed market. These risks include
disruptive political or economic conditions and the possible imposition of
adverse governmental laws or currency exchange restrictions. The Fund's
prospectuses (unaudited) contain information regarding the Fund's principal
risks. Please refer to those documents when considering the Fund's risks.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
34 Pioneer Floating Rate Fund | Annual Report | 10/31/08
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value 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. Senior loans are valued in
accordance with guidelines established by the Board of Trustees at the mean
between the last available bid and asked prices from one or more brokers or
dealers as obtained from Loan Pricing Corporation. For the limited number of
Senior Loans for which no reliable price quotes are available, such Senior
Loans will be valued by Loan Pricing Corporation through the use of pricing
matrices to determine valuations. Fixed-income securities are valued at
prices supplied by independent pricing services, which consider such factors
as Treasury spreads, yields, maturities and ratings. Valuations may be
supplemented by values obtained from dealers and other sources, as required.
Equity securities are valued at the last sale price on the principal exchange
where they are traded. Securities or loans for which quotations are not
readily available are valued at their fair values as determined by, or under
the direction of, the Board of Trustees and may include yield equivalents or
a pricing matrix. Trading in foreign securities is substantially completed
each day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. The Fund may also use the fair value of a
security, including a non-U.S. security, when the closing market price on the
primary exchange where the security is traded no longer accurately reflects
the value of the security as of the close of the exchange. At October 31,
2008, one security has been fair valued, which represents 0.7% of net assets.
Temporary cash investments are valued at cost, which approximates market
value.
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis with a
corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. 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 taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years prior to 2004 are closed (not subject to examination by tax
authorities) due to the expiration of statute of limitations; all other tax
years are open.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 35
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
At October 31, 2008 the Fund had a net capital loss carryforward of
$1,039,878 of which the following amounts will expire between 2015 and 2016
if not utilized; $132,347 in 2015 and $907,531 in 2016.
At October 31, 2008, the Fund has reclassified $25,803 to increase
undistributed net investment income and $25,803 to increase accumulated net
realized loss on investments, to reflect permanent book/tax differences. The
reclassification has no impact on the net assets of the Fund and presents the
Fund's capital accounts on a tax basis
The tax character of distributions paid during the year ended October 31,
2008 and the period ended October 31, 2007 was as follows:
- --------------------------------------------------------
2008 2007
- --------------------------------------------------------
Distributions paid from:
Ordinary Income $1,945,233 $1,221,099
- --------------------------------------------------------
Total $1,945,233 $1,221,099
- --------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2008:
- --------------------------------------------------
2008
- --------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 61,716
Dividends payable (6,188)
Capital loss carryforward (1,039,878)
Unrealized depreciation (8,066,776)
- --------------------------------------------------
Total (9,051,126)
- --------------------------------------------------
The difference between book basis and tax basis unrealized depreciation is
attributable to the tax treatment of premium, interest on defaulted bonds,
and adjustments relating to catastrophe bonds.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A (UniCredit), earned
$168 in underwriting commissions on the sale of Class A shares during the
year ended October 31, 2008.
36 Pioneer Floating Rate Fund | Annual Report | 10/31/08
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to all classes of shares
based on their respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (See
Note 4). Class Y shares are not subject to a distribution plan. Shareowners
of each class participate in all expenses and fees paid to the transfer
agent, Pioneer Investment Management Shareholder Services, Inc. (PIMSS), for
its services, which are allocated based on the number of accounts in each
class and the ratable allocation of related out-of-pocket expenses (see Note
3).
The Fund declares as daily dividends substantially all of its net investment
income. All dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class C, and Class Y shares can bear different transfer
agent and distribution expense rates.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest received
from counterparties, is required to be at least equal to or in excess of the
value of the repurchase agreement at the time of purchase. The collateral for
all repurchase agreements is held in safekeeping in the customer-only account
of the Fund's custodian, or sub custodians. The Fund's investment adviser,
Pioneer Investment Management, Inc. (PIM), is responsible for determining
that the value of the collateral remains at least equal to the repurchase
price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.60% on
the first $500 million of the Fund's average daily net assets and 0.55% on
average daily net assets over $500 million. For the year ended October 31,
2008, the effective management fee (net of waivers and/or assumption of
expenses) was equivalent to 0.41% of the Fund's average daily net assets.
PIM has agreed not to impose all or portion of its management fee and to assume
other operating expenses of the Fund to the extent necessary to limit expenses
to 1.10% and 2.00% of the Fund's average daily net assets attributable
Pioneer Floating Rate Fund | Annual Report | 10/31/08 37
to Class A shares and Class C shares, respectively. These expense limitations
are in effect through March 1, 2012 for Class A shares and through March 1,
2010 for Class C shares.
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. Included in "Due to affiliates" reflected on
the Statement of Assets and Liabilities is $489 management fees, administrative
costs and certain other services payable to PIM at October 31, 2008.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $849 in transfer agent fees payable to PIMSS at October 31,
2008.
4. Distribution Plan
The Fund adopted a Plan of Distribution with respect to Class A and Class C
shares in accordance with Rule 12b-1 of the Investment Company Act of 1940.
Pursuant to the Plan, the Fund pays PFD 0.25% of the Fund's average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund pays PFD 1.00% of the average
daily net assets attributable to Class C shares. The fee for Class C shares
consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class C shares. For the period from
November 1, 2007 through January 31, 2008, PFD was reimbursed under the Plan of
Distribution for distribution expenses in an amount up to 0.25% of the average
daily net assets attributable to Class A shares. Included in "Due to
affiliates" reflected on the Statement of Assets and Liabilities is $307 in
distribution fees payable to PFD at October 31, 2008.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00% based on the lower of cost or market
value of shares being redeemed. Proceeds from the CDSCs are paid to PFD. For
the year ended October 31, 2008, no CDSCs were paid to PFD.
38 Pioneer Floating Rate Fund | Annual Report | 10/31/08
5. Expense Offset and Agreements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended October 31, 2008, the Fund's expenses
were reduced by $97 under such arrangements.
6. Unfunded Loan Commitments
As of October 31, 2008, the Fund had unfunded loan commitments of approximately
$321,429 (excluding unrealized depreciation on those commitments of $103,700 as
of October 31, 2008), which could be extended at the option of the borrower
pursuant to the following loan agreements:
- ---------------------------------------------------------------------------------
Unfunded
Borrower Commitment
- ---------------------------------------------------------------------------------
Bausch & Lomb, Inc., Delayed Draw Term Loan $ 12,000
CHS/Community Health Systems, Inc., Delayed Draw Term Loan $ 23,202
Fontainebleau Las Vegas, LLC, Delayed Draw Term Loan $166,667
Interline Brands, Inc. -- Delayed Draw Term Loan $117,563
United Surgical Partners International, Inc., Delayed Draw Term Loan $ 1,997
7. New Pronouncements
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of
SFAS 157 will have on the Fund's financial statement disclosures.
In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures
about Derivative Instruments and Hedging Activities (SFAS 161), was issued and
is effective for fiscal years beginning after November 15, 2008. SFAS 161
requires enhanced disclosures about an entity's derivative and hedging
activities. Management is currently evaluating the impact the adoption of SFAS
161 will have on the Fund's financial statement disclosures.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 39
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VI and the Shareowners
of Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Floating Rate Fund (the "Fund") (one of the portfolios constituting Pioneer
Series Trust VI), including the schedule of investments, as of October 31,
2008, and the related statement of operations for the year then ended and the
statements of changes in net assets and the financial highlights for each of
the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Fund's internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of October 31, 2008, by correspondence with
the custodian, brokers and agent banks or by other appropriate auditing
procedures where replies from brokers were not received. We believe that our
audits provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Floating Rate Fund at October 31, 2008, the results of its operations
for the year then ended and the changes in its net assets and the financial
highlights for each of the periods indicated therein, in conformity with U.S.
generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 19, 2008
40 Pioneer Floating Rate Fund | Annual Report | 10/31/08
ADDITIONAL INFORMATION (unaudited)
The percentages of the Fund's ordinary income distributions that are exempt
from nonresident alien (NRA) tax withholding resulting from qualified interest
income and qualified short term gains were 79.50% and 4.24%, respectively.
Results of Shareholder Meeting (unaudited)
At a special meeting held on May 13, 2008, shareholders of the Fund were asked
to consider the proposals described below. A report of the total votes cast by
the Fund's shareholders follows:
- -----------------------------------------------------------------------------------
Broker
For Withhold Abstain Non-Votes
- -----------------------------------------------------------------------------------
Proposal 1 -- To elect Trustees
John F. Cogan, Jr. 4,719,431.362 0.000 0.000 0.000
Daniel K. Kingsbury 4,719,431.362 0.000 0.000 0.000
David R. Bock 4,719,431.362 0.000 0.000 0.000
Mary K. Bush 4,719,431.362 0.000 0.000 0.000
Benjamin M. Friedman 4,719,431.362 0.000 0.000 0.000
Margaret B.W. Graham 4,719,431.362 0.000 0.000 0.000
Thomas J. Perna 4,719,431.362 0.000 0.000 0.000
Marguerite A. Piret 4,719,431.362 0.000 0.000 0.000
Stephen K. West 4,719,431.362 0.000 0.000 0.000
John Winthrop 4,719,431.362 0.000 0.000 0.000
- -----------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- -----------------------------------------------------------------------------------
Proposal 2 -- To approve an
amendment to the
Declaration of Trust 4,439,501.362 0.000 0.000 279,930.000
- -----------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- -----------------------------------------------------------------------------------
Proposal 3A -- To approve
changes to the Fund's
fundamental investment
policy relating to borrowing
money 4,439,501.362 0.000 0.000 279,930.000
Proposal 3B -- To approve
changes to the Fund's
fundamental investment
policy relating to
underwriting 4,439,501.362 0.000 0.000 279,930.000
Proposal 3C -- To approve
changes to the Fund's
fundamental investment
policy relating to lending 4,439,501.362 0.000 0.000 279,930.000
Proposal 3D -- To approve
changes to the Fund's
fundamental investment
policy relating to issuing
senior securities 4,439,501.362 0.000 0.000 279,930.000
Pioneer Floating Rate Fund | Annual Report | 10/31/08 41
- -----------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- -----------------------------------------------------------------------------------
Proposal 3E -- To approve
changes to the Fund's
fundamental investment
policy relating to real estate 4,439,501.362 0.000 0.000 279,930.000
Proposal 3F -- To approve
changes to the Fund's
fundamental investment
policy relating to
commodities 4,439,501.362 0.000 0.000 279,930.000
Proposal 3G -- To approve
changes to the Fund's
fundamental investment
policy relating to
concentration 4,439,501.362 0.000 0.000 279,930.000
Proposal 3I -- To approve
the conversion of the Fund's
investment objective from
fundamental to non-
fundamental 4,439,501.362 0.000 0.000 279,930.000
- -----------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- -----------------------------------------------------------------------------------
Proposal 4 -- To approve an
Amended and Restated
Management Agreement
with PIM 4,439,501.362 0.000 0.000 279,930.000
Proposal 5 -- To approve a
policy allowing appointment
of unaffiliated sub-advisors
and amendments to sub-
advisory agreements without
shareholder approval 4,439,501.362 0.000 0.000 279,930.000
42 Pioneer Floating Rate Fund | Annual Report | 10/31/08
Approval of Investment Advisory Agreement (unaudited)
Pioneer Investment Management, Inc. (PIM) serves as the Fund's investment
adviser pursuant to an investment advisory agreement between PIM and the Fund.
The Trustees of the Fund, as required by law, determine whether to approve the
investment advisory agreement for the Fund. In connection with their approval
of the investment advisory agreement for the Fund, the Trustees received and
reviewed a substantial amount of information provided by PIM in response to
requests of the independent Trustees and their independent legal counsel. The
independent Trustees met on a number of occasions with PIM and also separately
with their independent legal counsel to evaluate and discuss the information
provided to them by PIM. At a meeting held on November 14, 2006, based on their
evaluation of the information provided by PIM, the Trustees, including the
independent Trustees voting separately, unanimously approved the investment
advisory agreement for the Fund.
At a meeting held on January 8, 2008, the Trustees considered whether an
amended and restated investment advisory agreement for the Fund should be
approved for an initial period ending December 31, 2009. The management fee to
be paid by the Fund to PIM under the amended and restated investment advisory
agreement is the same as the management fee provided in the previously approved
investment advisory agreement. Based on their evaluation of the information
provided by PIM, including the information provided by PIM in connection with
the Trustees' most recent approval of the previous investment advisory
agreement, the Trustees, including the independent Trustees voting separately,
unanimously approved the amended and restated investment advisory agreement.
Shareholders of the Fund approved the amended and restated investment advisory
agreement at a meeting held on May 13, 2008.
In considering the amended and restated investment advisory agreement, the
Trustees considered various factors that they determined were relevant,
including the factors described below. The Trustees did not identify any single
factor as the controlling factor in determining to approve the amended and
restated investment advisory agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that
were provided by PIM to the Fund under the previous investment advisory
agreement, and that would continue to be provided by PIM to the Fund under the
amended and restated investment advisory agreement, taking into account the
investment objective and strategy of the Fund and the information related to
the Fund provided to the Trustees at each quarterly meeting. The Trustees
Pioneer Floating Rate Fund | Annual Report | 10/31/08 43
reviewed the terms of the amended and restated investment advisory agreement.
The Trustees also reviewed PIM's investment approach for the Fund and its
research process. The Trustees considered the resources of PIM and the
personnel of PIM who provide investment management services to the Fund. They
also considered PIM's compliance and legal resources and personnel.
In addition, the Trustees considered the other services that PIM provided under
the previous investment advisory agreement and that PIM would continue to
provide to the Fund under the amended and restated investment advisory
agreement and that, as administrator, PIM is responsible for the administration
of the Fund's business and other affairs. It was noted that PIM supervises and
monitors the performance of the Fund's service providers and provides the Fund
with personnel (including officers) as are necessary for the Fund's operations.
The Trustees considered the fees paid to PIM for the provision of such
services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that PIM would continue to provide to the Fund under
the amended and restated investment advisory agreement, were satisfactory and
consistent with the terms of the amended and restated investment advisory
agreement.
Performance of the Fund
In considering the amended and restated investment advisory agreement, the
Trustees noted that the Fund had only recently commenced operations. The
Trustees considered the performance results of the Fund provided at regular
Board meetings, as well as the performance results provided at regular Board
meetings for other Pioneer Funds with similar investment objectives and
strategies to the Fund. The Trustees concluded that the investment performance
of the Fund was satisfactory.
Management Fee and Expenses
The Trustees considered that the management fee to be paid by the Fund to PIM
under the amended and restated investment advisory agreement would be the same
as the management fee to be paid by the Fund under the previously approved
investment advisory agreement. The Trustees considered information on the fees
and expenses of the Fund in comparison to the management fees of its peer group
of funds as classified by Morningstar and the expense ratios of a peer group of
funds selected on the basis of criteria determined by the independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party.
The Trustees considered that the Fund's asset weighted management fee would
rank below the median management fees paid by other funds in its peer group
Morningstar category. The Trustees also considered the Fund's expense ratio,
44 Pioneer Floating Rate Fund | Annual Report | 10/31/08
and considered the contractual expense limitation agreed to by PIM with respect
to the Fund.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of services provided, taking
into account the fees charged by other advisers for managing comparable funds
with similar strategies. The Trustees also concluded that the Fund's expense
ratio was reasonable, taking into account the quality of services provided by
PIM and the contractual expense limitation agreed to by PIM with respect to the
Fund.
Profitability
The Trustees did not consider PIM's profitability with respect to the
management of the Fund in approving the investment advisory agreement because
the Fund had only recently commenced operations and profitability information
was not available.
Economies of Scale
The Trustees considered the potential economies of scale with respect to the
management of the Fund. The Trustees concluded that, because of the breakpoints
in the management fee schedule and the reduced fee rates above certain asset
levels, any perceived or potential economies of scale would be shared between
PIM and the Fund.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with
the Fund. The Trustees considered that affiliates of PIM serve as the Fund's
transfer agent and distributor. The Trustees considered the receipt by PIM and
its affiliates of sales loads and payments under Rule 12b-1 plans in respect of
the Fund and the other Pioneer funds. The Trustees further considered the
intangible benefits to PIM by virtue of its relationship with the Fund and the
other Pioneer funds. The Trustees concluded that the receipt of these benefits
was reasonable in the context of the overall relationship between PIM and the
Fund.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the independent Trustees, concluded that the
terms of the amended and restated investment advisory agreement between PIM and
the Fund, including the fees payable thereunder, were fair and reasonable and
voted to approve the amended and restated investment advisory agreement for the
Fund.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 45
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
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.pioneerinvestments.com. This information is also available
on the Securities and Exchange Commission's web site at http://www.sec.gov.
Trustees and Officers
The Board of Trustees provides broad supervision over the Fund's affairs. The
officers of the Fund are responsible for the Fund's operations. The Trustees
and officers are listed below, together with their principal occupations during
the past five years. Trustees who are interested persons of the Fund within the
meaning of the 1940 Act are referred to as Interested Trustees. Trustees who
are not interested persons of the Fund are referred to as Independent Trustees.
Each of the Trustees (except Mr. West) serves as a Trustee of each of the 76
U.S. registered investment portfolios for which Pioneer serves as investment
adviser (the "Pioneer Funds"). Mr. West serves as Trustee of 33 of the 76
Pioneer Funds. The address for all Trustees and all officers of the Fund is 60
State Street, Boston, Massachusetts 02109.
46 Pioneer Floating Rate Fund | Annual Report | 10/31/08
Interested Trustees
- --------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- --------------------------------------------------------------------------------
John F. Cogan, Jr. (82)* Chairman of the Board, Trustee since 2006.
Trustee and President Serves until a successor
trustee is elected or
earlier retirement or
removal.
Daniel K. Kingsbury (50)* Trustee and Executive Trustee since March
Vice President 2007. Serves until a
successor trustee is
elected or earlier retire-
ment or removal.
- --------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
- --------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (82)* Deputy Chairman and a Director of Pioneer Global Asset Man- None
agement S.p.A. ("PGAM"); Non-Executive Chairman and a Direc-
tor of Pioneer Investment Management USA Inc. ("PIM-USA");
Chairman and a Director of Pioneer; Chairman and Director of
Pioneer Institutional Asset Management, Inc. (since 2006);
Director of Pioneer Alternative Investment Management Limited
(Dublin); President and a Director of Pioneer Alternative Invest-
ment Management (Bermuda) Limited and affiliated funds;
Director of PIOGLOBAL Real Estate Investment Fund (Russia)
(until June 2006); Director of Nano-C, Inc. (since 2003); Director
of Cole Management Inc. (since 2004); Director of Fiduciary
Counseling, Inc.; President and Director of Pioneer Funds Dis-
tributor, Inc. ("PFD") (until May 2006); President of all of the
Pioneer Funds; and Of Counsel, Wilmer Cutler Pickering Hale and
Dorr LLP
- --------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (50)* Director, CEO and President of Pioneer Investment Management None
USA Inc. (since February 2007); Director and President of
Pioneer Investment Management, Inc. and Pioneer Institutional
Asset Management, Inc. (since February 2007); Executive Vice
President of all of the Pioneer Funds (since March 2007); Direc-
tor of Pioneer Global Asset Management S.p.A. (since April
2007); Head of New Markets Division, Pioneer Global Asset Man-
agement S.p.A. (2000 - 2007)
- --------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers
or directors of the fund's investment adviser and certain of its affiliates.
Pioneer Floating Rate Fund | Annual Report | 10/31/08 47
Independent Trustees
- -------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- -------------------------------------------------------------------
David R. Bock (64) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------
Mary K. Bush (60) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
- -----------------------------------------------------------------------------------------------------------------------
David R. Bock (64) Executive Vice President and Chief Financial Officer, I-trax, Inc. Director of Enterprise Com-
(publicly traded health care services company) (2004 - 2007); munity Investment, Inc.
Partner, Federal City Capital Advisors (boutique merchant bank) (privately-held affordable
(1997 to 2004 and 2008 - present); and Executive Vice Presi- housing finance company);
dent and Chief Financial Officer, Pedestal Inc. (internet-based and Director of New York
mortgage trading company) (2000 - 2002) Mortgage Trust (publicly
traded mortgage REIT)
- -----------------------------------------------------------------------------------------------------------------------
Mary K. Bush (60) President, Bush International, LLC (international financial advi- Director of Marriott Interna-
sory firm) tional, Inc., Director of Dis-
cover Financial Services
(credit card issuer and elec-
tronic payment services);
Director of Briggs & Stratton
Co. (engine manufacturer);
Director of UAL Corporation
(airline holding company);
Director of Mantech Interna-
tional Corporation (national
security, defense, and intel-
ligence technology firm);
and Member, Board of Gov-
ernors, Investment Com-
pany Institute
- -----------------------------------------------------------------------------------------------------------------------
48 Pioneer Floating Rate Fund | Annual Report | 10/31/08
- -------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- -------------------------------------------------------------------------
Benjamin M. Friedman (64) Trustee Trustee since May,
2008. Serves until a
successor trustee is
elected or earlier retire-
ment or removal.
- -------------------------------------------------------------------------
Margaret B.W. Graham (61) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Thomas J. Perna (58) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Marguerite A. Piret (60) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Stephen K. West (80) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
Benjamin M. Friedman (64) Professor, Harvard University Trustee, Mellon Institutional
Funds Investment Trust and
Mellon Institutional Funds
Master Portfolio (oversees
17 portfolios in fund
complex)
- ---------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (61) Founding Director, Vice President and Corporate Secretary, The None
Winthrop Group, Inc. (consulting firm); and Desautels Faculty of
Management, McGill University
- ---------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (58) Chief Executive Officer, Quadriserv, Inc. (2008 - present) (tech- None
nology products for securities lending industry); Private investor
(2004 - 2008); and Senior Executive Vice President, The Bank of
New York (financial and securities services) (1986 - 2004)
- ---------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (60) President and Chief Executive Officer, Newbury, Piret & Company, Director of New America
Inc. (investment banking firm) High Income Fund, Inc.
(closed-end investment
company)
- ---------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (80) Senior Counsel, Sullivan & Cromwell LLP (law firm) Director, The Swiss Helvetia
Fund, Inc. (closed-end
investment company)
- ---------------------------------------------------------------------------------------------------------------------------------
Pioneer Floating Rate Fund | Annual Report | 10/31/08 49
Fund Officers
- --------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- --------------------------------------------------------------------------------
Dorothy E. Bourassa (60) Secretary Since 2006. Serves at
the discretion of the
Board.
- --------------------------------------------------------------------------------
Christopher J. Kelley (43) Assistant Secretary Since 2006. Serves at
the discretion of the
Board.
- --------------------------------------------------------------------------------
Mark E. Bradley (48) Treasurer Since March 2008.
Serves at the discretion
of the Board.
- --------------------------------------------------------------------------------
Luis I. Presutti (43) Assistant Treasurer Since 2006. Serves at
the discretion of the
Board.
- --------------------------------------------------------------------------------
Gary Sullivan (50) Assistant Treasurer Since 2006. Serves at
the discretion of the
Board.
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Dorothy E. Bourassa (60) Secretary of PIM-USA; Senior Vice President - Legal of Pioneer; None
Secretary/Clerk of most of PIM-USA's subsidiaries; and Secretary
of all of the Pioneer Funds since September 2003 (Assistant
Secretary from November 2000 to September 2003)
- -------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (43) Associate General Counsel of Pioneer since January 2008 and None
Assistant Secretary of all of the Pioneer Funds since September
2003; Vice President and Senior Counsel of Pioneer from July
2002 to December 2007
- -------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (48) Vice President - Fund Accounting, Administration and Controller- None
ship Services of Pioneer; and Treasurer of all of the Pioneer
Funds since March 2008; Deputy Treasurer of Pioneer from
March 2004 to February 2008; Assistant Treasurer of all of the
Pioneer Funds from March 2004 to February 2008; and Treasurer
and Senior Vice President, CDC IXIS Asset Management Services
from 2002 to 2003
- -------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (43) Assistant Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- -------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (50) Fund Accounting Manager - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- -------------------------------------------------------------------------------------------------------------------------
50 Pioneer Floating Rate Fund | Annual Report | 10/31/08
- --------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- --------------------------------------------------------------------------------
Katherine Kim Sullivan (34) Assistant Treasurer Since 2006. Serves at
the discretion of the
Board.
- --------------------------------------------------------------------------------
Teri W. Anderholm (49) Chief Compliance Since January 2007.
Officer Serves at the discretion
of the Board.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (34) Fund Administration Manager - Fund Accounting, Administration None
and Controllership Services since June 2003 and Assistant Trea-
surer of all of the Pioneer Funds since September 2003; Assis-
tant Vice President - Mutual Fund Operations of State Street
Corporation from June 2002 to June 2003 (formerly Deutsche
Bank Asset Management)
- ------------------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (49) Chief Compliance Officer of Pioneer since December 2006 and of None
all the Pioneer Funds since January 2007; Vice President and
Compliance Officer, MFS Investment Management (August 2005
to December 2006); Consultant, Fidelity Investments (February
2005 to July 2005); Independent Consultant (July 1997 to
February 2005)
- ------------------------------------------------------------------------------------------------------------------------
Pioneer Floating Rate Fund | Annual Report | 10/31/08 51
This page for your notes.
52 Pioneer Floating Rate Fund | Annual Report | 10/31/08
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
- --------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
- --------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year, on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO]PIONEER
INVESTMENTS(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2008 Pioneer Investments 21401-01-1208
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 10(a), 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;
(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 trustees 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 Trustees 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 trustees, 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)).
Ms. Marguerite A. Piret, an independent trustee, 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.
Audit Fees
Fees for audit services provided to the Fund,
including fees associated with the filings to update
its Form N-2 and issuance of comfort letters, totaled
approximately $47,500 in 2008 and $45,735 2007.
(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.
Audit-Related Fees
There were no fees for audit-related or other services
provided to the Fund during the fiscal years ended
October 31, 2008 and 2007.
(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.
Tax Fees
Fees for tax compliance services, primarily for tax
returns, totaled approximately $8,290 and $7,820 for
2008 and 2007, respectively.
(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.
Other Fees
There were no other services provided to the Fund
during the fiscal years ended October 31, 2008 and
2007.
(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 Pioneer Investment Management, Inc ("PIM"), 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 SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES 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. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 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 SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
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 SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
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 SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
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.
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Fund's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on
the operations or financial reporting of the Fund. For
the years ended October 31, 2008 and 2007, there
were no services provided to an affiliate that
required the Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's 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 registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
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.
The aggregate non-audit fees for the Fund and
affiliates, as previously defined, totaled
approximately $8,290 in 2008 and $7,820 in 2007.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's 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 Trustees 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 registrants 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 I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 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.
Not applicable to open-end management investment companies.
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 registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
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 registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
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 registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
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 registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) 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 officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
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.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) 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.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
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 Series Trust VI
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date December 29, 2008
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/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date December 29, 2008
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date December 29, 2008
* Print the name and title of each signing officer under his or her signature.