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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 811-10395
Pioneer Series Trust VII
(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.
[IMAGE]
Pioneer Global Aggregate
Bond Fund
- --------------------------------------------------------------------------------
Annual Report | October 31, 2008
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PGABX
Class C PGCBX
Class Y PGYBX
[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 26
Notes to Financial Statements 33
Report of Independent Registered Public Accounting Firm 41
Approval of Investment Advisory Agreement 43
Trustees, Officers and Service Providers 47
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 1
President's Letter
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 Global Aggregate Bond 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 Global Aggregate Bond Fund | Annual Report | 10/31/08 3
Portfolio Management Discussion | 10/31/08
A credit crisis that originally surfaced in the U.S. subprime mortgage market
affected fixed-income markets throughout the world during the first ten months
of 2008. As problems in the financial sector grew worse, the markets anxiously
watched for evidence of a deceleration in global economic growth. As a
consequence, investors became increasingly risk averse. U.S. Treasuries and the
sovereign debt of industrialized nations tended to hold up well, but corporate
bonds and other securities with credit risk generally lost value in a global
flight to quality. The following is an interview with Portfolio Manager Charles
Melchreit, who discusses the performance of Pioneer Global Aggregate Bond Fund
from its inception on December 28, 2007, through the end of the Fund's fiscal
year on October 31, 2008. Mr. Melchreit, a member of Pioneer's Fixed Income
Department, is responsible for the daily management of the Fund.
Q How did the Fund perform from its inception through October 31, 2008?
A Pioneer Global Aggregate Bond Fund Class A shares returned -5.18% at net
asset value from inception on December 28, 2007, through the end of its
fiscal year on October 31, 2008. From January 1, 2008, through October 31,
2008, the Fund's Class A shares returned -4.70%. During the same 10-month
period (January 1, 2008-October 31, 2008), the Barclays Capital (formerly
Lehman Brothers) Global Aggregate Bond Index returned -4.11%, while the
average return of the 121 funds in Lipper's Global Income Funds category
was -9.92%. On October 31, 2008, the Fund's 30-day SEC yield for Class A
shares was 3.88%.
Q What were the principal factors affecting the Fund's performance from its
inception through October 31, 2008?
A The first ten months of 2008 provided an extraordinarily tumultuous
backdrop for investing in fixed-income securities, as credit markets froze
up and global economic growth trends weakened. In this volatile
environment, we positioned the Fund relatively conservatively and focused
on higher-quality investments, especially sovereign government debt of
industrialized nations. We consistently overweighted the Fund in the United
States, while underweighting the British pound sterling, given the United
Kingdom's exposure to deteriorating conditions both at home and in the
United States, and our belief that the Bank of England eventually would be
forced to cut interest rates. In particular, we avoided British securitized
assets, such as mortgages, and we underweighted corporate debt in the U.K.
We also modestly de-emphasized Japan, where we saw little opportunity for
income for the Fund due to persistently low interest rates.
4 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
We took a somewhat more active stance in investing in Europe. Early in
2008, we saw attractive yields and increased the Fund's allocation to
Europe, in light of its relatively stable economy. However, as growth in
the United States began to slow, we became concerned about the potential
impact on Europe. We believed that the European Central Bank (ECB), much
like the Bank of England, eventually would cut interest rates to inject
more liquidity into the financial system and encourage growth. Accordingly,
we reduced the Fund's investments in Europe from an overweight to a neutral
weight, relative to the Barclays Capital Global Aggregate Bond Index.
Throughout the period, the Fund maintained a relatively low exposure to
credit risk, as we emphasized investments in sovereign debt and U.S.
government-backed mortgage securities. The Fund had no exposure to European
mortgage- or asset-backed securities. We also kept the Fund's sensitivity
to changes in interest rates relatively high, in order to benefit from the
effects of falling interest rates, which tend to push up bond prices.
Toward the end of the period, after interest rates had fallen
substantially, we subsequently shortened the Fund's duration -- or its
measure of price sensitivity to changes in interest rates -- to a stance
less than that of the Barclays Capital Global Aggregate Bond Index.
At the end of the fiscal year on October 31, 2008, the Fund's average
credit quality was AA and the effective duration of its portfolio was 4.46
years; the average maturity of Fund holdings was 7.2 years; about 48% of
Fund assets were invested in foreign investment-grade securities (almost
all foreign sovereign debt); and about 31.4% of assets were invested in
mortgage-backed securities, mainly U.S. government agency bonds.
Q How did the Fund's positioning affect performance from its inception on
December 28, 2007 through October 31, 2008?
A The Fund's substantial overweight position in the United States provided
significant support to performance. Early in the period, we had a larger
weighting in U.S. Treasuries, but took profits and reduced the Fund's
positions as interest rates declined and Treasury prices rallied. By the
end of the fiscal year, the Fund's U.S. investments were primarily in
high-quality, government-backed mortgage securities. We focused on
mortgage-backed securities issued by Freddie Mac and Fannie Mae, which
tended to gain in value as the federal government announced it was taking
the agencies into conservatorship and effectively guaranteeing the
securities. The higher-quality orientation of the Fund and its exposure to
non-U.S. sovereign debt also added to results relative to Barclays Capital
indices. The Fund's exposure to short-term European debt also provided
support to results.
Individual detractors from the Fund's performance results included
investments in the corporate bonds of U.S. insurance company Liberty
Mutual, and bonds related to one of the many business concerns of insurance
giant
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 5
American International Group (AIG). AIG's share price plunged because of
its exposure to complicated credit derivatives. The problems eventually
resulted in a huge U.S. government-assisted rescue plan. The Liberty Mutual
bonds declined amid general worries about risks in the investment
portfolios of insurance companies. The debt of Kronos, a global human
resources consulting company, also hurt the Fund's performance.
Q What is your investment outlook?
A While the global economy appears to have entered a recessionary period, we
believe the recessionary conditions already are reflected in prices in the
world's fixed-income markets. In some cases, we believe the markets may
even have overreacted, thus creating interesting opportunities because of
depressed values among corporate bonds and mortgage-backed securities in
the United States. However, we see fewer potential opportunities in the
United Kingdom and in Europe, where cyclical trends have been running
behind the United States and additional credit-related problems may still
surface. Meanwhile, we think the central banks in the U.K. and Europe are
likely to continue to decrease interest rates, which would create less
opportunity to capture attractive yields.
Going forward, we hope to take advantage of attractive opportunities in the
United States, including in corporate debt. Given the extraordinary
interventions of the federal government and the U.S. Federal Reserve Board
to stimulate the economy, we believe current prices may understate the
underlying fundamental values of many securities.
Please refer to the Schedule of Investments on pages 15-25 for a full listing
of Fund securities.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. 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.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
Investments in the Fund are subject to possible loss due to the financial
failure 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
Fund can invest in a limited number of securities and, as a result, the Fund's
performance may be more volatile than the performance of other funds holding
more securities. 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
6 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
or other risks affecting those industries and sectors. These risks may increase
share price volatility.
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 Global Aggregate Bond Fund | Annual Report | 10/31/08 7
Portfolio Summary | 10/31/08
Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERAIL]
Foreign Government Bonds 31.9%
U.S. Corporate Bonds 30.0%
U.S. Government Securities 29.6%
Collateralized Mortgage Obligations 4.9%
Asset Backed Securities 1.4%
Municipal Bonds 0.9%
Temporary Cash Investment 0.8%
Preferred Stock 0.3%
Convertible Corporate Bonds 0.2%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of total debt holdings)*
1. Federal National Mortgage Association, 5.5%, 12/1/37 6.74%
2. Federal National Mortgage Association, 6.5%, 4/1/38 6.21
3. Japan Government, 5-Yr, 1.2%, 3/20/12 5.35
4. Federal Home Loan Mortgage Corp., 6.5%, 8/1/37 4.47
5. Federal National Mortgage Association, 6.5%, 1/1/38 4.33
6. Government National Mortgage Association, 5.5%, 1/15/38 3.47
7. Deutchsland Rep Bundes, 5.25%, 1/4/11 3.07
8. Japan Govt, 10-Yr, 1.7%, 9/20/16 2.96
9. Government National Mortgage Association, 5.5%, 1/15/38 2.65
10. Canada Housing Trust, 3.55%, 9/15/13 2.63
* 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 Global Aggregate Bond Fund | Annual Report | 10/31/08
Prices and Distributions | 10/31/08
Net Asset Value per Share
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Class 10/31/08 12/28/07
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A $ 9.25 $ 10.00
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C $ 9.23 $ 10.00
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Y $ 9.25 $ 10.00
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Distributions per Share: 12/28/07-10/31/08
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Net Investment Short-Term Long-Term Non-Taxable
Class Income Capital Gains Capital Gains Distributions
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A $0.1800 $0.0179 $ -- $0.0501
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C $0.1198 $0.0179 $ -- $0.0501
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Y $0.1866 $0.0179 $ -- $0.0501
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Index Definitions
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The Barclays Capital (formerly Lehman Brothers) Global Aggregate Bond Index
provides a broad-based measure of the global investment-grade fixed-income
markets. 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.
The index defined here pertains to the "Value of $10,000 Investment" charts
appearing on pages 10-12.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 9
Performance Update | 10/31/08 Class A Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Aggregate Bond Fund at public offering price,
compared to that of the Barclays Capital (formerly Lehman Brothers) Global
Aggregate Bond Index.
Average Annual Total Returns
(As of October 31, 2008)
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Net Asset Public Offering
Period Value (NAV) Price (POP)
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Life-of-Class
(12/28/07) -5.18% -9.44%
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Expense Ratio
(Per prospectus dated December 28, 2007)
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Gross Net
- ------------------------------------------------------------------------
1.55% 1.00%
- ------------------------------------------------------------------------
Value of $10,000 Investment
Pioneer Global Barclays Capital
Aggregate Bond (formerly Lehman Brothers)
Fund Global Aggregate Bond Index
12/07 $9,550 $10,000
10/08 9,100 9,589
Call 1-800-225-6292 or visit 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.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had charges been reflected. POP returns reflect deduction
of maximum 4.5% sales charge. 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 3/1/11 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 fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
Performance Update | 10/31/08 Class C Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Aggregate Bond Fund, compared to that of the
Barclays Capital (formerly Lehman Brothers) Global Aggregate Bond Index.
Average Annual Total Returns
(As of October 31, 2008)
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If If
Period Held Redeemed
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Life-of-Class
(12/28/07) -5.95% -6.87%
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Expense Ratio
(Per prospectus dated December 28, 2007)
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Gross Net
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2.30% 1.90%
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Value of $10,000 Investment
Pioneer Global Barclays Capital
Aggregate Bond (formerly Lehman Brothers)
Fund Global Aggregate Bond Index
12/07 $10,000 $10,000
10/08 9,360 9,589
Call 1-800-225-6292 or visit 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). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
"If Held" 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 3/1/09 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 fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 11
Performance Update| 10/31/08 Class Y Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Aggregate Bond Fund, compared to that of the
Barclays Capital (formerly Lehman Brothers) Global Aggregate Bond Index.
Average Annual Total Returns
(As of October 31, 2008)
- -----------------------------------------------------------------
If If
Period Held Redeemed
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Life-of-Class
(12/28/07) -5.12% -5.12%
- -----------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 28, 2007)
- -----------------------------------------------------------------
Gross Net
- -----------------------------------------------------------------
0.65% 0.65%
- -----------------------------------------------------------------
Value of $10,000 Investment
Pioneer Global Barclays Capital
Aggregate Bond (formerly Lehman Brothers)
Fund Global Aggregate Bond Index
12/07 $10,000 $10,000
10/08 9,536 9,589
Call 1-800-225-6292 or visit 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 fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Global Aggregate Bond 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 Global Aggregate Bond Fund
Based on actual returns from May 1, 2007 through October 31, 2008.
- -------------------------------------------------------------------------------
Share Class A C Y
- -------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 5/1/08
- -------------------------------------------------------------------------------
Ending Account Value $ 911.56 $ 906.33 $ 912.04
(after expenses) on 10/31/08
- -------------------------------------------------------------------------------
Expenses Paid $ 4.81 $ 9.10 $ 4.28
During Period*
- -------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.90%,
and 0.89% for Class A, Class C, and Class Y respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect
the one half year period)
Pioneer Global Aggregate Bond 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 Global Aggregate Bond Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from May 1, 2007 through October 31, 2008.
- --------------------------------------------------------------------------------
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 05/01/2008
- --------------------------------------------------------------------------------
Ending Account Value $1,020.11 $1,015.58 $1,020.66
(after expenses) on 10/31/2008
- --------------------------------------------------------------------------------
Expenses Paid $ 5.08 $ 9.63 $ 4.52
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.90%,
and 0.89% for Class A, Class C, and Class Y respectively, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one half year period)
14 Pioneer Global Aggregate Bond 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
- --------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 0.2%
BANKS -- 0.2%
Regional Banks -- 0.2%
$ 20,000 A-/A3 National City Corp., 4.0%, 2/1/11 $ 16,675
- --------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $16,563) $ 16,675
- --------------------------------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 0.2%
DIVERSIFIED FINANCIALS -- 0.2%
Diversified Financial Services -- 0.2%
25 Bank of America Corp., 7.25%, 12/31/49 $ 17,500
- --------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $20,367) $ 17,500
- --------------------------------------------------------------------------------------------------
Principal
Amount
- --------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 1.3%
BANKS -- 0.3%
Thrifts & Mortgage Finance -- 0.3%
$ 4,145 2.62 AAA/Aaa Countrywide Asset Backed Certificates,
Floating Rate Note, 2/25/36 $ 4,133
10,918 AAA/Aaa Countrywide Asset-Backed Certificates,
5.069%, 2/25/36 10,270
8,871 5.15 AAA/Aaa Credit-Based Asset Servicing & Securities,
Floating Rate Note, 11/25/35 8,805
----------
$ 23,208
----------
Total Banks $ 23,208
- --------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.0%
Consumer Finance -- 0.2%
20,000 2.90 AA+/Aa1 RASC 2005-KS7 M1, Floating Rate Note,
8/25/35 $ 15,349
- --------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.6%
10,493 2.73 AAA/Aaa GSAMP Trust, Floating Rate Note,
11/25/35 $ 9,991
18,232 2.90 A/Aa2 GSAMP Trust, Floating Rate Note,
3/25/35 16,899
20,000 2.62 AAA/B2 MLMI 2006-AR1 A2C, Floating Rate Note,
3/25/37 13,922
----------
$ 40,812
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond 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 Financial Services -- 0.2%
$ 20,798 2.66 AAA/Aaa FFML 2006-FF4 A2, Floating Rate Note,
3/25/36 $ 18,337
----------
Total Diversified Financials $ 74,498
- ---------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $101,856) $ 97,706
- ---------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 4.5%
MATERIALS -- 0.2%
Steel -- 0.2%
1,365,600 AAA/Aaa MSDWC 2000-1345 X, 0.7259%, 9/3/15 $ 14,715
----------
Total Materials $ 14,715
- ---------------------------------------------------------------------------------------------------
BANKS -- 2.7%
Diversified Banks -- 0.3%
33,274 AAA/Aa2 RALI 2005-QA10 A41, 5.7412%,
9/25/35 $ 22,141
- ---------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 2.4%
25,000 AAA/Aaa GS Mortgage Securities Corp. II, 7.12%,
11/18/29 $ 23,861
34,660 AAA/Aaa JP Morgan Mortgage Trust, 6.0%,
8/25/34 29,439
15,000 AAA/Aaa JPMCC 2002-C3 B, 5.146%, 7/12/35 13,227
47,736 AAA/Aaa JPMCC 2004-CB8 A1A, 4.158%, 1/12/39 40,706
25,000 NR/Ba1 SBA CMBS Trust, 6.709%, 11/15/36 (f) 19,816
24,050 2.70 AAA/Aaa WAMU Mortgage Pass-Through
Certificates, Floating Rate Note, 4/25/45 14,390
28,432 AAA/NR Wells Fargo Mortgage Backed Securities,
5.0%, 11/25/20 25,518
24,675 NR/Aaa Wells Fargo Mortgage Backed Securities,
5.0%, 3/25/21 20,419
----------
$ 187,376
----------
Total Banks $ 209,517
- ---------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.2%
Diversified Financial Services -- 1.2%
10,000 AAA/A2 CCI 2005 1A C, 5.074%, 6/15/35 $ 9,155
16,661 NR/Aaa CMSI 2006-1 3A1, 5.0%, 2/25/36 13,942
44,478 AAA/AAA Master Alternative Loans Trust, 6.0%,
7/25/34 33,331
50,000 AAA/Aaa TSTAR 2006-1A A, 5.668%, 10/15/36 35,562
----------
$ 91,990
----------
Total Diversified Financials $ 91,990
- ---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
- ---------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- ---------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.4%
Mortgage Real Estate Investment Trust -- 0.4%
$ 33,222 AAA/Aaa CS First Boston Mortgage Security, 3.5%,
7/25/18 $ 30,208
----------
Total Real Estate $ 30,208
- ---------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $396,486) $ 346,430
- ---------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 28.2%
ENERGY -- 2.4%
Integrated Oil & Gas -- 0.2%
25,000 BBB+/Baa1 Marathon Oil Corp., 5.9%, 3/15/18 $ 19,393
- ---------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.3%
15,000 BBB+/Baa2 Transocean Sedco, 1.5%, 12/15/37 $ 12,000
10,000 BBB+/Baa2 Transocean Sedco, 1.625%, 12/15/37 8,800
----------
$ 20,800
- ---------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.1%
10,000 BBB/Baa2 Canadian National Resources, Ltd.,
5.9%, 2/1/18 $ 8,350
- ---------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.3%
25,000 BBB/Baa1 Spectra Energy Capital, 6.2%, 4/15/18 $ 20,106
- ---------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.5%
25,000 BBB/Baa2 Buckeye Partners LP, 6.05%, 1/15/18 $ 21,529
10,000 BBB/Baa2 Kinder Morgan Energy Partners LP, 5.95%,
2/15/18 7,825
30,000 BBB-/Baa3 NGPL Pipeco LLC, 6.514%, 12/15/12
(144A) 27,899
25,000 BBB-/Baa3 Plains All America Pipeline LP, 6.125%,
1/15/17 18,600
10,000 A-/A3 Questar Pipeline Co., 5.83%, 2/1/18 8,408
40,000 7.00 BB/Ba1 Teppco Partners LP, Floating Rate Note,
6/1/67 27,538
----------
$ 111,799
----------
Total Energy $ 180,448
- ---------------------------------------------------------------------------------------------------
MATERIALS -- 1.4%
Diversified Metals & Mining -- 0.2%
25,000 5.88 BBB-/Ba2 Freeport-McMoran Copper & Gold, Inc.,
Floating Rate Note, 4/1/15 $ 19,492
- ---------------------------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.5%
40,000 BBB/Baa2 Agrium, Inc., 6.75%, 1/15/19 $ 36,081
- ---------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.3%
50,000 B/B2 Kronos International, Inc., 6.5%, 4/15/13 $ 22,331
- ---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond 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
- --------------------------------------------------------------------------------------------------
Steel -- 0.4%
$ 30,000 BBB+/Baa2 ArcelorMittal, 6.125%, 6/1/18 (144A) $ 20,672
10,000 BBB/Baa2 Commercial Metals Co., 7.35%, 8/15/18 8,379
----------
$ 29,051
----------
Total Materials $ 106,955
- --------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.7%
Electrical Component & Equipment -- 0.2%
25,000 BB-/Ba1 Belden CDT, Inc., 7.0%, 3/15/17 $ 19,125
- --------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.5%
40,000 BBB+/Baa1 GATX Financial Corp., 6.0%, 2/15/18 $ 34,696
----------
Total Capital Goods $ 53,821
- --------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.3%
Office Services & Supplies -- 0.3%
25,000 A/A1 Pitney Bowes, Inc., 5.6%, 3/15/18 $ 23,979
----------
Total Commercial Services & Supplies $ 23,979
- --------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.8%
Railroads -- 0.8%
25,000 BBB/Baa1 Burlington Sante Fe Corp., 5.75%,
3/15/08 $ 21,893
50,000 BBB/Baa2 Union Pacific Corp., 5.7%, 8/15/18 42,054
----------
$ 63,947
----------
Total Transportation $ 63,947
- --------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.3%
Household Appliances -- 0.3%
25,000 BBB/Baa2 Whirlpool Corp., 5.5%, 3/1/13 $ 23,163
----------
Total Consumer Durables & Apparel $ 23,163
- --------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.5%
Education Services -- 0.5%
40,000 AAA/Aaa President & Fellows of Harvard, 3.7%,
4/1/13 $ 38,331
----------
Total Consumer Services $ 38,331
- --------------------------------------------------------------------------------------------------
MEDIA -- 0.3%
Broadcasting -- 0.0%
25,000 CCC/Caa1 Univision Communications, Inc., 9.75%,
3/15/15, PIK (144A) $ 5,125
- --------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.3%
25,000 BBB/Baa2 British Sky Broadcasting Group Plc, 6.1%,
2/15/18 (144A) $ 21,080
----------
Total Media $ 26,205
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
- ------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- ------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.3%
Tobacco -- 0.3%
$ 25,000 A/A3 UST, Inc., 5.75%, 3/1/18 $ 22,916
----------
Total Food, Beverage & Tobacco $ 22,916
- ------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.5%
Health Care Facilities -- 0.0%
5,000 BB-/B2 HCA Inc., 9.125%, 11/15/14 $ 4,300
- ------------------------------------------------------------------------------------------------
Managed Health Care -- 0.5%
40,000 A-/Baa1 United Health Group, Inc., 4.875%,
2/15/13 $ 37,319
----------
Total Health Care Equipment & Services $ 41,619
- ------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 0.3%
Biotechnology -- 0.3%
25,000 BBB/Baa3 Biogen Idec, Inc., 6.0%, 3/1/13 $ 24,885
----------
Total Pharmaceuticals & Biotechnology $ 24,885
- ------------------------------------------------------------------------------------------------
BANKS -- 8.5%
Diversified Banks -- 7.4%
80,000 5.18 AA/Aa2 BNP Paribas SA, Floating Rate Note,
10/17/16 $ 96,149
80,000 5.16 A+/Aa2 DNB Norse Bank ASA, Floating Rate Note,
9/28/15 99,054
100,000 5.22 A+/Aa3 Intesa Sanpaolo S.p.A., Floating Rate
Note, 2/8/16 117,660
80,000 5.75 A+/Aa2 Nordea Bank Finland Plc, Floating Rate
Note, 3/26/14 102,069
80,000 3.63 A/A3 Standard Chartered, Floating Rate Note,
2/3/17 88,954
20,000 A+/A1 Wachovia Corp., 5.75%, 6/15/17 17,225
50,000 AA+/Aa1 Wells Fargo Co., 4.375%, 1/31/13 46,163
----------
$ 567,274
- ------------------------------------------------------------------------------------------------
Regional Banks -- 1.1%
10,000 A-/A2 Keycorp, 6.5%, 5/14/13 $ 8,804
25,000 A+/Aa3 Mellon Funding Corp., 5.5%, 11/15/18 19,134
15,000 8.25 A-/A3 PNC Funding Corp., Floating Rate Note,
5/29/49 12,369
20,000 A+/Aa3 Wachovia Bank NA, 6.0%, 11/15/17 16,110
25,000 AA-/Aa2 Wells Fargo Capital, 9.75%, 12/29/49 24,250
----------
$ 80,667
----------
Total Banks $ 647,941
- ------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.8%
Asset Management & Custody Banks -- 0.3%
25,000 A-/A3 Eaton Vance Corp., 6.5%, 10/2/17 $ 24,270
- ------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond 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
- --------------------------------------------------------------------------------------------------
Consumer Finance -- 0.9%
$ 30,000 BBB/Baa1 American General Finance Corp., 6.9%,
12/15/17 $ 10,857
35,000 A+/Aa3 American Honda Finance Corp., 6.7%,
10/1/13 (144A) 34,328
25,000 A/A2 Caterpillar Financial, 7.05%, 10/1/18 23,595
----------
$ 68,780
- --------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 1.7%
95,000 5.79 A/A2 Goldman Sachs Capital, Floating Rate
Note, 12/29/49 $ 43,626
50,000 A/A2 Merrill Lynch & Co., 5.45%, 2/5/13 45,068
45,000 A+/A1 Morgan Stanley Dean Witter, Floating Rate
Note, 4/1/18 37,439
----------
$ 126,133
- --------------------------------------------------------------------------------------------------
Diversified Financial Services -- 1.4%
15,000 A/A2 C VAR, 8.4%, 4/29/49 $ 10,427
15,000 AAA/Aaa General Electric Cap Corp., 4.0%,
2/15/12 13,410
50,000 AA-/Aa2 JP Morgan Chase & Co., 6.0%, 1/15/18 44,854
50,000 A/A1 JP Morgan Chase & Co. 7.9%, 4/29/49 40,522
----------
$ 109,213
- --------------------------------------------------------------------------------------------------
Specialized Finance -- 1.5%
25,000 A-/Baa1 CIT Group, Inc., 7.625%, 11/30/12 $ 14,619
49,580 NR/Baa3 Coso Geothermal Power Holdings LLC,
7.0%, 7/15/26 (144A) 42,515
35,000 A-/Baa1 International Lease Finance Corp.,
6.375%, 3/25/13 22,888
10,000 A+/A1 National Rural Utilities Corp., 5.45%,
2/1/18 7,681
25,000 A+/A1 National Rural Utilities Corp., 10.375%,
11/1/18 26,502
----------
$ 114,205
----------
Total Diversified Financials $ 442,601
- --------------------------------------------------------------------------------------------------
INSURANCE -- 2.8%
Life & Health Insurance -- 0.3%
25,000 A+/A3 Prudential Financial, Inc., 5.15%,
1/15/13 $ 21,454
- --------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 1.8%
25,000 BB-/Ba1 AFC Capital Trust I, 8.207%, 2/3/27 $ 16,500
80,000 6.75 A-/A3 AXA SA, Floating Rate Note, 12/15/20 100,338
45,000 BB/Baa3 Liberty Mutual Group, Inc., 7.0%,
3/15/37 (144A) 24,252
----------
$ 141,090
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
- -------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- -------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.3%
$ 20,000 AAA/Aaa Berkshire Hathway, Inc., 5.0%, 8/15/13
(144A) $ 19,566
- -------------------------------------------------------------------------------------------------
Reinsurance -- 0.4%
30,000 BBB+/NA Platinum Underwriters Holdings, Ltd.,
7.5%, 6/1/17 $ 28,231
----------
Total Insurance $ 210,341
- -------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.4%
Diversified Real Estate Activities -- 0.4%
35,000 A-/A2 WEA Finance LLC, 7.125%, 4/15/18 $ 27,475
----------
Total Real Estate $ 27,475
- -------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.5%
Data Processing & Outsourced Services -- 0.5%
55,000 B/B3 First Data Corp., 9.875%, 9/24/15 $ 35,200
----------
Total Software & Services $ 35,200
- -------------------------------------------------------------------------------------------------
SEMICONDUCTORS -- 0.3%
Semiconductor Equipment -- 0.3%
25,000 BBB/Baa1 Klac Instruments Corp., 6.9%, 5/1/18 $ 20,149
----------
Total Semiconductors $ 20,149
- -------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.8%
Integrated Telecommunication Services -- 0.8%
20,000 BBB-/Baa3 Embarq Corp., 7.082%, 6/1/16 $ 15,400
10,000 CCC+/Caa1 Paetec Holdings Corp., 9.5%, 7/15/15 5,675
20,000 A/A3 Verizon Communications, Inc., 8.75%,
11/1/18 20,422
25,000 BB/Ba3 Windstream Corp., 8.125%, 8/1/13 20,563
----------
$ 62,060
----------
Total Telecommunication Services $ 62,060
- -------------------------------------------------------------------------------------------------
UTILITIES -- 1.3%
Electric Utilities -- 0.9%
10,000 BBB+/Baa2 Commonwealth Edison Co., 6.15%,
9/15/17 $ 8,510
20,000 A/A2 Northern States Power - Minnesota,
5.25%, 3/1/18 17,778
35,000 BB+/Baa3 Public Service of New Mexico, 7.95%,
5/15/18 28,556
5,000 A/A2 Southern California Edison Co., 5.75%,
3/15/14 4,939
5,000 CCC/B3 TXU Energy Co., 10.25%, 11/1/15 3,812
10,000 BBB+/Baa2 West Penn Power Co., 5.95%, 12/15/17 8,083
----------
$ 71,678
- -------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond 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
- ---------------------------------------------------------------------------------------------------
Independent Power Producer & Energy Traders -- 0.4%
$ 40,000 BBB-/Baa3 Panoche Energy Center LLC, 6.885%,
7/31/29 (144A) $ 31,418
----------
Total Utilities $ 103,096
- ---------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $2,574,415) $2,155,132
- ---------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS -- 27.8%
Government -- 27.8%
318,900 AAA/Aaa Federal Home Loan Mortgage Corp., 6.5%
8/1/37 $ 318,521
491,239 AAA/Aaa Federal National Mortgage Association,
5.5%, 12/1/37 480,209
304,104 AAA/Aaa Federal National Mortgage Association,
6.5%, 1/1/38 308,400
435,774 AAA/Aaa Federal National Mortgage Association,
6.5%, 4/1/38 441,929
251,310 AAA/Aaa Government National Mortgage
Association, 5.5%, 1/15/38 246,775
197,767 AAA/Aaa Government National Mortgage
Association, 5.5%, 1/15/38 188,982
50,000 AAA/Aaa U.S. Treasury Bonds, 6.25%, 8/15/23 (c) 57,242
95,753 AAA/Aaa U.S. Treasury Inflation Notes, 1.875%,
7/15/15 84,561
----------
$2,126,619
- ---------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $2,027,472) $2,126,619
- ---------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 30.0%
Government -- 30.0%
EURO 129,000 AAA/Aaa Bonos Y Oblig Del ES, 4.4%, 1/31/15 $ 167,592
EURO 110,000 A+/Aa2 Buoni Poliennali DE, 4.75%, 2/1/13 143,452
CAD 225,000 AAA/Aaa Canada Housing Trust, 3.55%, 9/15/13 187,555
EURO 163,000 AAA/Aaa Deutchsland Rep Bundes, 5.25%, 1/4/11 218,914
EURO 67,000 AAA/Aaa Government of France, 3.75%, 4/25/21 79,310
JPY 20,000,000 AA/Aa3 Japan Government 10-Yr, 1.7%, 9/20/16 210,431
JPY 18,000,000 AA/Aa3 Japan Government 10-Yr, 1.8%, 6/21/10 186,075
JPY 17,000,000 AA/Aa3 Japan Government 20-Yr, 1.5%, 3/20/19 171,655
JPY 2,500,000 AA/Aa3 Japan Government 30-Yr, 2.3%,
12/20/36 25,550
JPY 37,000,000 AA/Aa3 Japan Government 5-Yr, 1.2%, 3/20/12 380,864
10,000 A/Aa3 Korea Development Bank, 5.3%, 1/17/13 8,980
EURO 91,000 NR/Aaa Netherlands Government, 5.5%, 1/15/28 126,084
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
- -------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
- -------------------------------------------------------------------------------------------------------
Government -- (continued)
EURO 110,000 AAA/Aaa Republic of Austria, 7.0%, 7/15/14 $ 141,929
GBP 46,000 AAA/Aaa United Kingdom Treasury, 4.25%,
12/7/27 68,488
GBP 29,000 AAA/Aaa United Kingdom Treasury, 4.75%, 3/7/20 46,851
GBP 22,000 AAA/Aaa United Kingdom Treasury, 4.75%, 6/7/10 36,517
GBP 25,000 AAA/Aaa United Kingdom Treasury, 4.75%, 9/7/15 41,475
GBP 30,000 AAA/Aaa United Kingdom Treasury, 5.0%, 9/7/14 50,750
----------
$2,292,472
- -------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $2,409,366) $2,292,472
- -------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 0.9%
GOVERNMENT -- 0.9%
Municipal Higher Education -- 0.9%
$ 50,000 AAA/Aaa California State University Revenue, 5.0%,
11/1/39 $ 44,113
25,000 AAA/Aaa Connecticut State Health & Educational,
5.0%, 7/1/42 23,491
----------
$ 67,604
- -------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $73,795) $ 67,604
- -------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENT -- 0.8%
Security Lending Collateral -- 0.8% (d)
Certificates of Deposit:
1,287 Abbey National Plc, 3.15%, 8/13/09 $ 1,287
1,287 Banco Santander NY, 3.09%, 12/22/08 1,287
466 Bank of Scotland NY, 2.89%, 11/4/08 466
775 Bank of Scotland NY, 2.96%, 11/3/08 775
2,062 Bank of Scotland NY, 3.01%, 6/5/09 2,062
1,287 Bank of Scotland NY, 3.06%, 3/5/09 1,287
2,324 Barclays Bank, 2.85%, 5/27/09 2,324
256 Calyon NY, 4.62%, 1/16/09 256
151 Calyon NY, 4.62%, 1/16/09 151
2,580 CBA, 4.87%, 7/16/09 2,580
2,324 DNB NOR Bank ASA NY, 3.04%, 6/5/09 2,324
2,365 Intesa SanPaolo S.p.A., 2.88%, 5/22/09 2,365
2,324 New York Life Global, 2.99%, 9/4/09 2,324
122 NORDEA NY, 3.68%, 12/1/08 122
151 NORDEA NY, 4.13%, 4/9/09 151
1,934 Royal Bank of Canada NY, 3.0%, 8/7/09 1,934
256 Skandinavian Enskilda Bank NY, 2.79%,
2/13/09 257
2,580 Societe Generale, 3.29%, 9/4/09 2,581
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond 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
- -------------------------------------------------------------------------------------------------
Security Lending Collateral -- (continued)
$ 2,324 Svenska Bank NY, 4.61%, 7/8/09 $ 2,325
2,580 U.S. Bank NA, 2.91%, 8/24/09 2,581
----------
$ 29,439
- -------------------------------------------------------------------------------------------------
Commercial Paper:
2,534 American Honda Finance Corp., 4.95%,
7/14/09 $ 2,534
1,287 Bank of Nova Scotia, 3.14%, 5/5/09 1,287
245 BBVA U.S., 2.83%, 3/12/09 245
256 Met Life, Inc., 2.7%, 11/3/08 256
775 John Deere Capital Corp., 2.82%,
12/12/08 775
2,580 Monumental Global Funding, Ltd., 3.2%,
8/17/09 2,580
2,575 HSBC Bank, Inc., 3.2%, 8/14/09 2,575
1,159 General Electric Capital Corp., 4.25%,
1/5/09 1,159
1,287 General Electric Capital Corp., 2.86%,
3/16/09 1,287
1,287 CME Group, Inc., 3.0%, 8/6/09 1,287
478 IBM, 2.85%, 2/13/09 478
1,287 IBM, 3.03%, 9/25/09 1,287
2,324 Met Life Global Funding, 3.19%, 6/12/09 2,324
2,190 Westpac Banking Corp., 2.34%, 6/1/09 2,191
----------
$ 20,265
- -------------------------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
5,161 ABN Amro, 0.2%, 11/3/08 $ 5,161
629 Barclays Capital Markets, 0.2%, 11/3/08 629
----------
$ 5,790
- -------------------------------------------------------------------------------------------------
Money Market Mutual Fund:
2,580 JP Morgan, U.S. Government Money
Market Fund $ 2,580
- -------------------------------------------------------------------------------------------------
Other:
175 ABS CFAT 2008-A A1, 3.005%, 4/27/09 $ 175
- -------------------------------------------------------------------------------------------------
Total Securities Lending Collateral $ 58,249
- -------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $58,249) $ 58,249
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 93.9%
(Cost $7,835,031) (a)(e) $7,178,387
- -------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 6.1% $ 462,970
- -------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $7,641,357
=================================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
(PIK) Represents a pay in kind security.
(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 $226,855 or
3.0% of total net assets.
(a) At October 31, 2008, the net unrealized loss on investments based on cost
for federal income tax purposes of $7,835,172 was as follows:
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $ 105,732
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (762,517)
----------
Net unrealized loss $ (656,785)
==========
(b) Debt obligation with a variable interest rate. Rate shown is rate at
period end.
(c) At October 31, 2008, the following security was out on loan:
- --------------------------------------------------------------------------------
Principal Amount Security Value
- --------------------------------------------------------------------------------
$49,000 U.S. Treasury Bonds, 6.25%, 8/15/23 $56,097
- --------------------------------------------------------------------------------
Total $56,097
================================================================================
(d) Securities lending collateral is managed by Credit Suisse
(e) Distributions of investments by country of issue (excluding temporary
cash investments) as a percentage of total investment in securities, is
as follows:
United States 59.0%
Japan 13.7
United Kingdom 5.0
France 3.9
Italy 3.7
Canada 3.3
Germany 3.1
Spain 2.4
Austria 2.0
Netherlands 1.8
Norway 1.4
Other (individually less than 1%) 0.7
-----
100.0%
=====
(f) Security is fair valued (See note A).
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
denoted:
CAD Canadian Dollar
GBP British Pound Sterling
EURO Euro
JPY Japanese Yen
Purchases and sales of securities (excluding temporary cash investments) for
the period ended October 31, 2008 aggregated $10,865,004 and $3,108,992,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 25
Statement of Assets and Liabilities | 10/31/08
ASSETS:
Investment in securities, at value
(including securities loaned of $56,097) (cost $7,835,031) $7,178,387
Futures Collateral (cost $17,046) 15,108
Foreign currencies, at value (cost $665,749) 594,189
Receivables --
Fund shares sold 42
Interest 92,482
Forward foreign currency portfolio hedge contracts, open net 10,561
Due from Pioneer Investment Management, Inc. 14,179
Other 30,046
- ------------------------------------------------------------------------------------
Total assets $7,934,994
- ------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 76,560
Fund shares repurchased 9,250
Dividends 15,649
Upon return of securities loaned 58,249
Forward foreign currency settlement contracts, open net 1,578
Variation margin 5,757
Due to bank 66,402
Due to affiliates 1,295
Accrued expenses 58,897
- ------------------------------------------------------------------------------------
Total liabilities $ 293,637
- ------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $8,371,963
Accumulated net investment loss (24,633)
Accumulated net realized loss on investments, foreign currency
transactions and futures contracts (141)
Net unrealized loss on investments (656,644)
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (71,601)
Net unrealized gain on futures contracts 22,413
- ------------------------------------------------------------------------------------
Total net assets $7,641,357
====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $3,628,115/392,225 shares) $ 9.25
Class C (based on $2,471,414/267,662 shares) $ 9.23
Class Y (based on $1,541,828/166,666 shares) $ 9.25
MAXIMUM OFFERING PRICE:
Class A ($9.25 [divided by] 95.5%) $ 9.69
====================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
Statement of Operations
For the period from 12/28/07 (Commencement of Operations) to 10/31/08
INVESTMENT INCOME:
Dividends $ 453
Interest 284,169
Income from securities loaned, net 609
- ----------------------------------------------------------------------------------------------------
Total investment income $ 285,231
- ----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 33,915
Transfer agent fees and expenses
Class A 4,009
Class C 1,056
Class Y 43
Distribution fees
Class A 7,505
Class C 22,195
Administrative fees 1,526
Custodian fees 17,648
Registration fees 51,685
Professional fees 58,792
Printing expense 19,021
Fees and expenses of nonaffiliated trustees 4,578
Miscellaneous 3,433
- ----------------------------------------------------------------------------------------------------
Total expenses $ 225,406
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (139,055)
- ----------------------------------------------------------------------------------------------------
Net expenses $ 86,351
- ----------------------------------------------------------------------------------------------------
Net investment income $ 198,880
- ----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 18,187
Futures contracts (31,500)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (64,589) $ (77,902)
- ----------------------------------------------------------------------------------------------------
Net unrealized gain (loss) on:
Investments $(656,644)
Futures contracts 22,413
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (71,601) $(705,832)
- ----------------------------------------------------------------------------------------------------
Net loss on investments, futures contracts, and foreign
currency transactions $(783,734)
- ----------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(584,854)
====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 27
Statements of Changes in Net Assets
For the period from 12/28/07 (Commencement of Operations) to 10/31/08
- --------------------------------------------------------------------------------------------------------------
12/28/07
(Commencement
of Operations) to
10/31/08
- --------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 198,880
Net realized loss on investments, futures contracts, and foreign currency transactions (77,902)
Net unrealized loss on investments, futures contracts, and foreign
currency transactions (705,832)
- --------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (584,854)
- --------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.18 per share) $ (73,064)
Class C ($0.12 per share) (33,384)
Class Y ($0.18 per share) (31,099)
Net realized gain
Class A ($0.02 per share) (7,405)
Class C ($0.02 per share) (4,910)
Class Y ($0.02 per share) (2,984)
Tax return of capital
Class A ($0.05 per share) (20,377)
Class C ($0.05 per share) (13,931)
Class Y ($0.05 per share) (8,350)
- --------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (195,504)
- --------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 7,401,879
Reinvestment of distributions 73,332
Cost of shares repurchased (2,386,831)
- --------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund share transactions $ 5,088,380
- --------------------------------------------------------------------------------------------------------------
Net increase in net assets $ 4,308,022
NET ASSETS:
Beginning period (initial capitalization -- 300,000 shares) $ 3,333,335
- --------------------------------------------------------------------------------------------------------------
End of period $ 7,641,357
- --------------------------------------------------------------------------------------------------------------
Accumulated net investment loss $ (24,633)
- --------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
- ----------------------------------------------------------------------------
'08 Shares '08 Amount
- ----------------------------------------------------------------------------
Class A*
Shares sold 570,340 $5,815,358
Reinvestment of distributions 5,600 56,004
Less shares repurchased (183,715) (1,835,801)
- ----------------------------------------------------------------------------
Net increase 392,225 $4,035,561
============================================================================
Class C*
Shares sold 321,052 $3,253,191
Reinvestment of distributions 1,725 17,328
Less shares repurchased (55,115) (551,030)
- ----------------------------------------------------------------------------
Net increase 267,662 $2,719,489
============================================================================
Class Y*
Shares sold 166,666 $1,666,665
- ----------------------------------------------------------------------------
Net increase 166,666 $1,666,665
============================================================================
* Class A, C and Y shares were first publicly offered on December 28, 2007.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 29
Financial Highlights
- ----------------------------------------------------------------------------------
12/28/07 (a)
(Commencement
of Operations)
to 10/31/08
- ----------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $10.00
- ----------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.25
Net realized and unrealized loss on investments (0.75)
- ----------------------------------------------------------------------------------
Net decrease in net assets from investment operations $(0.50)
Distributions to shareowners:
Net investment income (0.18)
Net realized gain (0.02)
Tax return of capital (0.05)
- ----------------------------------------------------------------------------------
Net decrease in net asset value $(0.75)
- ----------------------------------------------------------------------------------
Net asset value, end of period $ 9.25
==================================================================================
Total return* (5.18)%***
Ratio of net expenses to average net assets 1.00%* *
Ratio of net investment income to average net assets 3.23%* *
Portfolio turnover rate 46%***
Net assets, end of period (in thousands) $3,628
Ratios with no waiver of fees and assumption of expenses by PIM
Net expenses 3.16%* *
Net investment loss 1.07%* *
- ----------------------------------------------------------------------------------
(a) Class A shares were first publicly offered on December 28, 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.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
- ----------------------------------------------------------------------------------
12/28/07 (a)
(Commencement
of Operations)
to 10/31/08
- ----------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $10.00
- ----------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.18
Net realized and unrealized loss on investments (0.76)
- ----------------------------------------------------------------------------------
Net decrease in net assets from investment operations $(0.58)
Distributions to shareowners:
Net investment income (0.12)
Net realized gain (0.02)
Tax return of capital (0.05)
- ----------------------------------------------------------------------------------
Net decrease in net asset value $(0.77)
- ----------------------------------------------------------------------------------
Net asset value, end of period $ 9.23
==================================================================================
Total return* (5.95)%***
Ratio of net expenses to average net assets 1.90%* *
Ratio of net investment income to average net assets 2.29%* *
Portfolio turnover rate 46%***
Net assets, end of period (in thousands) $2,471
Ratios with no waiver of fees and assumption of expenses by PIM
Net expenses 3.84%* *
Net investment income 0.35%* *
- ----------------------------------------------------------------------------------
(a) Class C shares were first publicly offered on December 28, 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.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 31
Financial Highlights (continued)
- ----------------------------------------------------------------------------------
12/28/07 (a)
(Commencement
of Operations)
to 10/31/08
- ----------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $10.00
- ----------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.27
Net realized and unrealized loss on investments (0.77)
- ----------------------------------------------------------------------------------
Net decrease in net assets from investment operations $(0.50)
Distributions to shareowners:
Net investment income (0.18)
Net realized gain (0.02)
Tax return of capital (0.05)
- ----------------------------------------------------------------------------------
Net decrease in net asset value $(0.75)
- ----------------------------------------------------------------------------------
Net asset value, end of period $ 9.25
==================================================================================
Total return* (5.12)%***
Ratio of net expenses to average net assets 0.89%* *
Ratio of net investment income to average net assets 3.22%* *
Portfolio turnover rate 46%***
Net assets, end of period (in thousands) $1,542
Ratios with no waiver of fees and assumption of expenses by PIM
Net expenses 2.82%* *
Net investment income 1.29%* *
- ----------------------------------------------------------------------------------
(a) Class Y shares were first publicly offered on December 28, 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.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
Notes to Financial Statements | 10/31/08
1. Organization and Significant Accounting Policies
Pioneer Global Aggregate Bond Fund (the Fund) is a series of Pioneer Series
Trust VII, a Delaware statutory trust registered under the Investment Company
Act of 1940 as a non-diversified, open-end management investment company. The
investment objective of the Fund is to maximize total return through a
combination of income and capital appreciation.
The Fund offers three classes of shares - Class A, Class C, and Class Y shares.
Class A, Class C, and Class Y shares were first publicly offered on December
28, 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 have 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 gain or loss on investments during the
reporting year. 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's investments in foreign markets and countries
with limited developing markets may subject the Fund to a greater degree of
risk than in a developed market. These risks include disruptive political or
economic conditions and the 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 principal 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:
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 33
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, securities are valued at the last sale price
on the principal exchange where they are traded. Fixed income securities
with remaining maturity of more than 60 days 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
dealers and other sources, as required. Securities for which there are no
other readily available valuation methods are valued using fair value
methods pursuant to procedures adopted by the Board of Trustees. At October
31, 2008, one security has been fair valued, which represents 0.3% of net
assets. Temporary cash investments are valued at cost which approximates
market value.
All discounts and premiums on debt securities are accreted or amortized
daily, respectively, on a yield-to-maturity basis into interest income with
a corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis, net of unrecoverable
foreign taxes withheld at the applicable country rates.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis.
Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
The Fund invests in below investment grade (high yield) debt securities and
preferred stocks. Some of these high yield securities may be convertible
into equity securities of the issuer. 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.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
34 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the statement of operations from
the effects of changes in market price of those securities but are included
with the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a
future date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Fund's
financial statements. The Fund records realized gains and losses at the
time a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar. (See Note 6)
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
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 has reclassified $28,009 to decrease
undistributed net investment income, $77,761 to decrease accumulated net
realized loss in on investments, foreign currency transactions and futures
contracts and $49,752 to decrease paid-in capital 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 period ended October 31,
2008 was as follows:
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 35
--------------------------------------------------------------------------
2008
--------------------------------------------------------------------------
Distributions paid from:
Ordinary income $152,846
Return of capital 42,658
--------------------------------------------------------------------------
Total $195,504
==========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2008:
--------------------------------------------------------------------------
2008
--------------------------------------------------------------------------
Distributable earnings:
Current Year Dividend payable $ (15,649)
Unrealized depreciation (714,957)
--------------------------------------------------------------------------
Total $(730,606)
==========================================================================
The difference between book-basis and tax-basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales, the tax treatment
on open future contracts, the mark to market of forward currency contracts
and options.
E. 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 $552 in underwriting commissions on the sale of Class A
shares during the period ended October 31, 2008.
F. 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 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
36 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
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.
G. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors. When entering into a loan, the Fund receives
collateral and earns income in the form of negotiated lenders' fees. The
Fund also continues to receive interest or payments in lieu of dividends on
the securities loaned. Gain or loss on the fair value of the loaned
securities that may occur during the term of the loan will be for the
account of the Fund. The loans are secured by collateral which is required
to be at least 102%, at all times, of the fair value of the securities
loaned. The amount of collateral is required to be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. The
Fund has the right under the lending agreement to recover the securities
from the borrower on demand. The Fund invests cash collateral in cash
equivalent investments. Securities lending collateral is managed by Credit
Suisse.
H. Futures Contracts
The Fund may enter into futures transactions to hedge against changes in
interest rates, securities prices and currency rates or to seek to increase
total return. Upon entering into a futures contract, the Fund is required
to deposit with a broker an amount of cash or securities equal to the
minimum "initial margin" requirements of the associated futures exchange.
Subsequent payments for futures contracts ("variation margin") are paid or
received by the Fund, depending on the daily fluctuation in the value of
the contracts, and are recorded by the Fund as unrealized gains or losses.
When the contract is closed, the Fund realizes a gain or loss equal to the
difference between the opening and closing value of the contract as well as
any fluctuation in foreign currency exchange rates where applicable. The
use of futures contracts involves, to varying degrees, elements of market
and counterparty risks, which may exceed the amounts recognized by the
Fund. Changes in value of the contracts may not directly correlate to the
changes in value of the underlying securities. These risks may decrease the
effectiveness of the Fund's hedging strategies and potentially result in a
loss.
At October 31, 2008 open futures contracts were as follows:
---------------------------------------------------------------------------
Number of
Contracts Settlement Market Unrealized
Type Long/(Short) Month Value Gain
---------------------------------------------------------------------------
Euro-BOBL Future 4 12/08 $572,794 $17,732
Euro-BUND Future 2 12/08 $295,865 $ 4,681
-------
$22,413
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 37
I. 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 subcustodians. 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, the Fund's investment
adviser, manages the Fund's portfolio. Management fees are calculated daily at
the annual rate of 0.50% of the Fund's average daily net assets.
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses of the Fund to the extent necessary to limit
the Fund expenses to 1.00% and 1.90% of the average daily net assets
attributable to Class A and Class C shares, respectively. These expense
limitations are in effect through March 1, 2011 for Class A shares and through
March 1, 2009 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 $5 in 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 $1,195 in transfer agent fees payable from PIMSS at October 31,
2008.
4. Distribution Plan
The Fund adopted Plans of Distribution with respect to each class of shares
(Class A Plan, Class B Plan, and Class C Plan) in accordance with Rule 12b-1 of
the Investment Company Act of 1940. Currently under the Class A Plan, PFD is
reimbursed for distribution expenses in an amount of up to 0.25% of the average
daily net assets attributable 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.
38 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $95 in distribution fees payable to PFD at October 31, 2008.
In addition, redemptions of each class of shares (except Class Y) 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 period ended October 31, 2008, no CDSCs were paid to PFD.
5. Expense Offset Arrangements
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 period ended October 31, 2008, the Fund's expenses
were not reduced under such arrangements.
6. Forward Foreign Currency Contracts
At October 31, 2008, the Fund had entered into various contracts that obligate
the Fund to deliver currencies at specified future dates. At the maturity of a
contract, the Fund must make delivery of the foreign currency. Alternatively,
prior to the settlement date of a portfolio hedge, the Fund may close out such
contracts by entering into an offsetting hedge contract. Open Portfolio hedges
at October 31, 2008 were as follows:
- -----------------------------------------------------------------------------------------------
Net Net
Contracts to In Exchange Settlement Unrealized
Currency (deliver)/receive For Date Value Gain (loss)
- -----------------------------------------------------------------------------------------------
GBP
(British
Pound Sterling) (50,000) $ (89,120) 11/3/08 $ (80,725) $ 8,395
GBP
(British
Pound Sterling) (70,000) (114,963) 12/3/08 (112,797) 2,166
- -----------------------------------------------------------------------------------------------
$10,561
===============================================================================================
At October 31, 2008, the Fund had entered into various contracts that obligate
the Fund to deliver currencies at specified future dates. At the maturity of a
contract, the Fund must make delivery of the foreign currency. Fund's gross
forward currency settlement contracts receivable and payable were $80,717 and
$82,295, respectively, resulting in a payable of $1,578.
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
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 39
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.
40 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII and the Shareowners of
Pioneer Global Aggregate Bond Fund
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Global Aggregate Bond Fund (the "Fund") (one of the portfolios constituting the
Pioneer Series Trust VII), including the schedule of investments, as of October
31, 2008, and the related statements of operations, changes in net assets and
the financial highlights for the period from December 28, 2007 (Commencement of
Operations) to October 31, 2008. 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 audit.
We conducted our audit 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 audit 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 and brokers or by other appropriate auditing procedures where
replies from brokers were not received. We believe that our audit 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 Global Aggregate Bond Fund at October 31, 2008, the results of its
operations, the changes in its net assets and the financial highlights for the
period from December 28, 2007 (Commencement of Operations) to October 31, 2008,
in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 19, 2008
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 41
ADDITIONAL INFORMATION (unaudited)
The qualifying percentage of the Fund's ordinary distributions that are exempt
from nonresident alien (NRA) tax withholding resulting from qualified interest
income and qualified short term gains were 97.34% and 11.15%, respectively.
Results of Shareholder Meeting (unaudited)
At a special meeting held on May 13, 2008, shareholders of the Fund were asked
to consider the proposal described below. The Fund is one of the funds in
Pioneer Series Trust VII. A report of the total votes cast by all shareholders
of all series of Pioneer Series Trust VII follows:
- -----------------------------------------------------------------------------------------------------
Broker
For Withhold Abstain Non-Votes
- -----------------------------------------------------------------------------------------------------
Proposal 1 -- To elect Trustees
John F. Cogan, Jr. 97,117,735.206 2,711,619.196 84,784.503 0.000
Daniel K. Kingsbury 97,138,271.027 2,691,083.375 84,784.503 0.000
David R. Bock 97,133,385.774 2,695,968.628 84,784.503 0.000
Mary K. Bush 97,116,587.467 2,712,766.935 84,784.503 0.000
Benjamin M. Friedman 97,127,767.422 2,701,586.980 84,784.503 0.000
Margaret B.W. Graham 97,140,476.435 2,688,877.967 84,784.503 0.000
Thomas J. Perna 97,132,102.410 2,697,251.992 84,784.503 0.000
Marguerite A. Piret 97,134,391.182 2,694,983.220 84,784.503 0.000
Stephen K. West 97,129,009.235 2,700,345.167 84,784.503 0.000
John Winthrop 97,126,660.693 2,702,693.709 84,784.503 0.000
42 Pioneer Global Aggregate Bond 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, determined 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 July 10, 2007, based on their
evaluation of the information provided by PIM, the Trustees, including the
independent Trustees voting separately, unanimously approved an 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.
The initial shareholder of the Fund approved the previous investment advisory
agreement and the amended and restated investment advisory agreement
(hereinafter, each of the previous investment advisory agreement and the
amended and restated investment advisory agreement are referred to collectively
as the "investment advisory agreement").
In considering the 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 investment advisory agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that
would be provided by PIM to the Fund under the investment advisory agreement,
taking into account the investment objective and strategy of the Fund. The
Trustees reviewed the terms of the investment advisory agreement. The Trustees
also reviewed PIM's investment approach for the Fund and its
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 43
research process. The Trustees considered the resources of PIM and the
personnel of PIM who would 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 would provide
to the Fund under the investment advisory agreement and that, as administrator,
PIM would be responsible for the administration of the Fund's business and
other affairs. It was noted that PIM would supervise and monitor the
performance of the Fund's service providers and provide the Fund with personnel
(including officers) as are necessary for the Fund's operations. The Trustees
considered the quality of such services provided by PIM to the other Pioneer
Funds. The Trustees considered the fees to be 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 provide to the Fund under the investment
advisory agreement, were satisfactory and consistent with the terms of the
investment advisory agreement.
Performance of the Fund
In considering the investment advisory agreement, the Trustees noted that Fund
was newly-offered and did not have a performance history. The Trustees
considered the performance results provided at regular Board meetings for other
Pioneer Funds with similar investment objectives and strategies to the Fund,
and concluded that the investment performance of such other Pioneer Funds was
satisfactory.
Management Fee and Expenses
The Trustees considered the management fee to be paid by the Fund under the
investment advisory agreement. The Trustees considered information compiled by
Strategic Insight Simfund (Strategic Insight). an independent third party, to
compare the Fund's proposed management fee with the other funds in the
Morningstar World Bond category, and total expense data for all funds within
the Morningstar World Bond category.
The Trustees considered that the Fund's proposed management fee would rank
below the median management fees paid by other funds within the Morningstar
World Bond category, and, at a $1 billion hypothetical asset level, in the
second quintile relative to the management fees paid by other funds within the
Morningstar World Bond category. The Trustees also considered the Fund's
anticipated expense ratio, and considered the contractual expense limitation
agreed to by PIM with respect to the Fund.
The Trustees concluded that the proposed management fee payable by the Fund to
PIM was reasonable in relation to the nature and quality of services to
44 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
be provided, taking into account the fees charged by other advisers for
managing comparable mutual funds with similar strategies. The Trustees also
concluded that the Fund's anticipated expense ratio was reasonable, taking into
account the quality of services to be provided by PIM (based on the Trustees'
familiarity with PIM's management of the other Pioneer Funds and with PIM's and
its affiliates' personnel) 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 was newly-offered and profitability information was not available.
Economies of Scale
The Trustees considered the economies of scale with respect to the management
of the Fund, whether the Fund would appropriately benefit from any economies of
scale.
The Trustees considered that, although the Fund would pay a management fee at a
fixed rate as a percentage of the Fund's net assets, without any breakpoints,
the management fee rate to be paid by the Fund would rank below the median
management fees paid by other funds in its peer group Morningstar category,
and, at a $1 billion hypothetical asset level, in the second quintile relative
to the management fees paid by other funds in its peer group Morningstar
category. The Trustees also considered that PIM would be subsidizing the Fund
because until it reaches adequate scale, and that, on a hypothetical basis,
such fee would remain in the second quintile relative to the peer group at
higher asset levels. The Trustees concluded that, at current and reasonably
foreseeable asset levels, breakpoints in the management fee were not currently
necessary.
Other Benefits
The Trustees considered the other potential benefits to PIM from its
relationship with the Fund. The Trustees considered that affiliates of PIM
would serve as the Fund's transfer agent and distributor. The Trustees
considered that PIM and its affiliates would receive 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.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 45
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 investment advisory agreement between PIM and the Fund, including
the fees payable thereunder, were fair and reasonable and voted to approve the
investment advisory agreement for the Fund.
46 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
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.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 47
Interested Trustees
- ------------------------------------------------------------------------------------------------------------------------------------
Other
Directorships
Position Held Length of Service Principal Occupation During Held by this
Name and Age with the Fund and Term of Office Past Five Years Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (82)* Chairman of the Board, Trustee since 2001. Deputy Chairman and a None
Trustee and President Serves until a successor Director of Pioneer Global
trustee is elected or Asset Management S.p.A.
earlier retirement or ("PGAM"); Non-Executive
removal. Chairman and a Director 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 Distributor, 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)* Trustee and Executive Trustee since March Director, CEO and President None
Vice President 2007. Serves until a of Pioneer Investment
successor trustee is Management USA Inc. (since
elected or earlier retire- February 2007); Director and
ment or removal. 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); Director
of Pioneer Global Asset
Management S.p.A. (since
April 2007); Head of New
Markets Division, Pioneer
Global Asset Management
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.
48 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
Independent Trustees
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Other Directorships
Name and Age with the Fund and Term of Office Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (64) Trustee Trustee since 2005. Executive Vice President and Director of Enterprise
Serves until a successor Chief Financial Officer, Community Investment, Inc.
trustee is elected or I-trax, Inc. (publicly (privately-held affordable
earlier retirement or traded health care services housing finance company);
removal. company) (2004 - 2007); and Director of New York
Partner, Federal City Mortgage Trust (publicly
Capital Advisors (boutique traded mortgage REIT)
merchant bank) (1997 to 2004
and 2008 - present); and
Executive Vice President and
Chief Financial Officer,
Pedestal Inc.
(internet-based mortgage
trading company) (2000 -
2002)
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (60) Trustee Trustee since 2001. President, Bush Director of Marriott
Serves until a successor International, LLC International, Inc.;
trustee is elected or (international financial Director of Discover
earlier retirement or advisory firm) Financial Services (credit
removal. card issuer and electronic
payment services); Director
of Briggs & Stratton Co.
(engine manufacturer);
Director of UAL Corporation
(airline holding company);
Director of Mantech
International Corporation
(national security, defense,
and intelligence technology
firm); and Member, Board of
Governors, Investment
Company Institute
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 49
Independent Trustees (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Other Directorships
Name and Age with the Fund and Term of Office Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman Trustee Trustee since May, Professor, Harvard University Trustee, Mellon Institutional
(64) 2008. Serves until a Funds Investment Trust and
successor trustee is Mellon Institutional Funds
elected or earlier Master Portfolio (oversees
retirement or removal. 17 portfolios in fund
complex)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham Trustee Trustee since 2001. Founding Director, Vice None
(61) Serves until a successor President and Corporate
trustee is elected or Secretary, The Winthrop
earlier retirement or Group, Inc. (consulting
removal. firm); and Desautels Faculty
of Management, McGill
University
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (58) Trustee Trustee since 2006. Chief Executive Officer, None
Serves until a successor Quadriserv, Inc. (2008 -
trustee is elected or present) (technology
earlier retirement or products for securities
removal. 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 Trustee Trustee since 2001. President and Chief Director of New America High
(60) Serves until a successor Executive Officer, Newbury, Income Fund, Inc. (closed-end
trustee is elected or Piret & Company, Inc. investment company)
earlier retirement or (investment banking firm)
removal.
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (80) Trustee Trustee since 2001. Senior Counsel, Sullivan & Director, The Swiss Helvetia
Serves until a successor Cromwell LLP (law firm) Fund, Inc. (closed-end
trustee is elected or investment company)
earlier retirement or
removal.
- ------------------------------------------------------------------------------------------------------------------------------------
50 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08
Fund Officers
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Other Directorships
Name and Age with the Fund and Term of Office Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (60) Secretary Since 2003. Serves at Secretary of PIM-USA; Senior None
the discretion of the Vice President - Legal of
Board Pioneer; 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) Assistant Secretary Since 2003. Serves at Associate General Counsel of None
the discretion of the Pioneer since January 2008
Board and 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) Treasurer Since March 2008. Vice President - Fund None
Serves at the discretion Accounting, Administration
of the Board and Controllership 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 Treasurer Since 2001. Serves at Assistant Vice President - None
the discretion of the Fund Accounting,
Board Administration and
Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (50) Assistant Treasurer Since 2002. Serves at Fund Accounting Manager - None
the discretion of the Fund Accounting,
Board Administration and None
Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/08 51
Fund Officers (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Other Directorships
Name and Age with the Fund and Term of Office Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (34) Assistant Treasurer Since 2003. Serves at Fund Administration Manager None
the discretion of the - Fund Accounting,
Board Administration and
Controllership Services
since June 2003 and
Assistant Treasurer of all
of the Pioneer Funds since
September 2003; Assistant
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 Since January 2007. Chief Compliance Officer of None
Officer Serves at the discretion Pioneer since December 2006
of the Board and of 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)
- ------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer Global Aggregate Bond 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 accompanied by a prospectus.
The Fund files a complete schedule 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.
Pioneer Global Diversified Equity Fund
Annual Report | October 31, 2008
Ticker Symbols:
Class A PGDBX
[LOGO]PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 10
Schedule of Investments 12
Financial Statements 22
Notes to Financial Statements 26
Report of Independent Registered Public Accounting Firm 33
Approval of Investment Advisory Agreement 35
Trustees, Officers and Service Providers 38
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 1
President's Letter
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 see potential chances for making money in many corners of the market,
it takes
2 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
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 Global Diversified Equity Fund | Annual Report | 10/31/08 3
Portfolio Management Discussion | 10/31/08
In the following interview, portfolio managers Harald Staudinger and Michael
Rachor discuss the factors that influenced performance for the abbreviated
annual period between the Fund's inception on June 3, 2008, and October 31,
2008.
Q How did the Fund perform over the abbreviated annual period?
A The Fund's Class A shares had a total return of -38.50% at net asset value
from June 3, 2008 through October 31, 2008. From May 31, 2008 through
October 31, 2008, the Fund's benchmark, the Morgan Stanley Capital
International (MSCI) World Index, returned -36.68%. The global environment
for equities was extraordinarily challenging, and an extreme flight to
safety on the part of market participants provided a headwind for the
Fund's approach.
Q Can you review the market environment for stocks globally since the Fund
began operations?
A The period saw continued faltering in global economies and a heightening of
financial market distress related to the credit market crisis. Developments
reached a crescendo in September, as the month opened with the U.S.
government takeover of Fannie Mae and Freddie Mac, who together own or
guarantee roughly half of the U.S. mortgage market. This was followed by
the failure of leading investment bank Lehman Brothers and the bailout by
the U.S. Treasury of global insurance conglomerate AIG. As September drew
to a close, Morgan Stanley and Goldman Sachs converted from investment
banks to bank holding companies in order to qualify for government support,
and the FDIC seized giant thrift Washington Mutual in order to facilitate
its sale to JP Morgan Chase. As these events unfolded, the Bush
administration won approval of a rescue package designed to shore up the
balance sheets of major financial institutions, but the ultimate execution
and impact of this initiative remained unclear. In Europe, conditions were
little better as governments struggled to develop a coordinated response to
stabilizing their own endangered banks.
The net result was a severe loss of liquidity as the credit markets seized.
Global stock markets fell sharply during the period, with any positive
relative performance driven by an investor focus on companies and sectors
with strong defensive characteristics that overrode any other investment
thesis. U.S. equities have held up slightly better than their European and
Japanese counterparts during the period, although all three major developed
markets saw double digit percentage declines.
4 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
Q Can you review how you manage the Fund is managed?
A Our process of selecting securities to hold in the Fund is based primarily on
a quantitative evaluation of individual stocks, with an additional level of
analysis based on a review of company fundamentals.
We start by applying a quantitative screen to approximately 2,400 stocks
globally in both developed and emerging markets. Our model incorporates
factors related to both a company's valuation and stock price momentum. It
is designed to identify those companies that are both low-priced and carry
the potential to benefit investors with improved performance. In broad
terms, we are seeking to benefit from the tendency of certain investors to
rely on a company's recent business performance in looking ahead to its
prospects.
Once we have used our model to gather initial investment ideas, these
companies are subjected to fundamental analysis by our research team.
Fundamental factors we look at include the strength of the company's
business model and balance sheet composition, as well as the outlook for
its industry sector. In doing this analysis, the goal is to avoid holding
companies that are inexpensive for a good reason.
Ultimately, we seek to build a portfolio of solid stocks for which we feel
investors have unreasonably low expectations, and sell them once
expectations become inflated.
Q How have you invested assets during the period since the Fund's inception?
A At the end of October 2008, the Fund was invested approximately 46% in the
U.S., 32% in Europe, 15% in the Pacific region (including Japan) and 7% in
emerging markets. In terms of sectors, the emphasis our stock selection
model places on valuation has resulted in the Fund being somewhat
overweight in financial stocks, which has not helped relative performance.
Among financials, our fundamental analysis has led us to favor institutions
with strong balance sheets and diverse sources of revenue not related to
investment banking. These include Bank of New York as well as European
banks Banco Santander and HSBC.
Given that the global economy appears headed into recession, the
fundamental analysis we perform has led us in the direction of the more
defensive stocks among those identified by our quantitative process.
Examples among the Fund's larger holdings include Walmart, the leader in
the low cost consumer space, and consumer staples giant Johnson & Johnson.
The healthcare sector also contains many companies with strong defensive
characteristics, and the Fund has significant positions in Baxter
International and Genzyme among pharmaceuticals.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 5
The market environment since the Fund began operations has not been
favorable for our stock selection process, as investors appear to have
ignored valuation factors in favor of a tight focus on companies that they
believe are defensively positioned with respect to the prevailing liquidity
crisis. We believe that over time our disciplined approach to stock
selection should be rewarded, as market conditions ultimately stabilize and
investors broaden their focus.
Please refer to the Schedule of Investments on pages 12-21 for a full listing
of Fund securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
Investing in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies.
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 sector.
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 opinions should not be relied upon for any other purposes.
6 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
Portfolio Summary | 10/31/08
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
International Common Stocks 51.4%
U.S. Common Stocks 46.9%
Depositary Receipts for International Stock 1.4%
International Preferred Stocks 0.3%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA IS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 45.6%
Japan 14.7%
Germany 5.5%
France 5.2%
United Kingdom 4.4%
Spain 3.2%
Netherlands 3.1%
Switzerland 2.8%
Austria 1.9%
Hong Kong 1.8%
Bermuda 1.6%
Italy 1.3%
Taiwan 1.2%
Singapore 1.2%
Other (individually less than 1%) 6.5%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. The Bank of New York Mellon Corp. 2.20%
- --------------------------------------------------------------------------------
2. Wal-Mart Stores, Inc. 2.10
- --------------------------------------------------------------------------------
3. HSBC Holding Plc 2.04
- --------------------------------------------------------------------------------
4. Genzyme Corp. 1.98
- --------------------------------------------------------------------------------
5. The Travelers Companies, Inc. 1.89
- --------------------------------------------------------------------------------
6. Baxter International, Inc. 1.68
- --------------------------------------------------------------------------------
7. Banco Santander Central Hispano SA 1.57
- --------------------------------------------------------------------------------
8. Johnson & Johnson Co. 1.49
- --------------------------------------------------------------------------------
9. Duke Energy Corp. 1.42
- --------------------------------------------------------------------------------
10. Medco Health Solutions, Inc. 1.37
- --------------------------------------------------------------------------------
* 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.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 7
Prices and Distributions | 10/31/08
Net Asset Value per Share
- --------------------------------------------------------------------------------
Class 10/31/08 6/3/08
A $ 6.15 $ 10.00
- --------------------------------------------------------------------------------
Distributions per Share: 6/3/08-10/31/08
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
A $ -- $ -- $ --
- --------------------------------------------------------------------------------
8 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
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 Global Diversified Equity Fund at public offering
price, compared to that of the MSCI World Index.
Average Annual Total Returns
(As of October 31, 2008)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
Life-of-Class
(6/3/08) -38.50% -38.50%
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated June 3, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
4.32% 1.30%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer
Global
Diversified MSCI
Equity World
Fund Index
6/08 9,425 10,000
10/08 6,360 6,878
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 5.75% 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 3/1/11 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 Morgan Stanley Capital International World (MSCI) Index is a free
float-adjusted market capitalization index designed to measure developed-market
equity performance throughout the world. Index returns 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 Global Diversified Equity Fund | Annual Report | 10/31/08 9
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of expenses:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses
(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 by the number in (1) above the first 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 Global Diversified Equity Fund
Based on actual returns from June 3, 2008 through October 31, 2008.
Share Class A
Beginning Account Value On 6/3/08 $ 1,000.00
- --------------------------------------------------------------------------------
Ending Account Value On 10/31/08 $ 615.00
- --------------------------------------------------------------------------------
Expenses Paid During Period* $ 4.33
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.30% for Class
A shares, multiplied by the average account value over the period,
multiplied by 151/366 (to reflect the actual days in the period).
10 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
Hypothetical Example for Comparison Purposes
The second 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 Global Diversified Equity Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from June 3, 2008 through October 31, 2008.
Share Class A
Beginning Account Value On 6/3/08 $ 1,000.00
- --------------------------------------------------------------------------------
Ending Account Value On 10/31/08 $ 1,015.27
- --------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.40
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.30% for Class
A shares, multiplied by the average account value over the period,
multiplied by 151/366 (to reflect the actual days in the period).
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 11
Schedule of Investments | 10/31/08
Shares Value
PREFERRED STOCK -- 0.3%
AUTOMOBILES & COMPONENTS -- 0.3%
Automobile Manufacturers -- 0.3%
88 Volkswagen AG $ 5,439
- -------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $12,849) $ 5,439
- -------------------------------------------------------------------------
COMMON STOCKS -- 90.3%
ENERGY -- 8.4%
Integrated Oil & Gas -- 7.1%
1,732 BP Amoco Plc $ 14,259
305 Chevron Corp. 22,753
620 Eni S.p.A. 14,791
451 Gazprom (A.D.R.) 9,101
60 Lukoil Holding (A.D.R.)* 2,326
599 Repsol SA 11,436
506 Royal Dutch Shell Plc 13,877
654 Statoil ASA* 13,065
305 Total SA 16,772
480 USX-Marathon Group, Inc. 13,968
----------
$ 132,348
- -------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 1.3%
1,000 Nippon Mitsubishi Oil Corp. $ 4,132
908 Polski Koncern Naftowy Orlen SA 9,252
511 Valero Energy Corp. 10,516
----------
$ 23,900
----------
Total Energy $ 156,248
- -------------------------------------------------------------------------
MATERIALS -- 6.2%
Diversified Chemical -- 1.4%
181 Akzo Nobel $ 7,540
212 BASF AG 7,132
1,000 Mitsubishi Gas Chemical Co. 3,748
164 PPG Industries, Inc. 8,131
----------
$ 26,551
- -------------------------------------------------------------------------
Diversified Metals & Mining -- 0.8%
308 First Quantum Minerals, Ltd. $ 6,507
287 Freeport-McMoRan Copper & Gold, Inc. (Class B) 8,352
----------
$ 14,859
- -------------------------------------------------------------------------
Paper Packaging -- 0.8%
250 Mayr-Melnhof Karton AG* $ 15,574
- -------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
12 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
Shares Value
Paper Products -- 0.9%
408 International Paper Co. $ 7,026
3 Nippon Paper Group, Inc. Holding 8,002
1,188 Paperlinx, Ltd. 1,119
----------
$ 16,147
- -------------------------------------------------------------
Specialty Chemicals -- 0.9%
498 DSM NV $ 13,874
300 Hitachi Chemical Co., Ltd. 3,054
----------
$ 16,928
- -------------------------------------------------------------
Steel -- 1.4%
427 Nucor Corp. $ 17,298
308 Voestalpine AG 7,543
----------
$ 24,841
----------
Total Materials $ 114,900
- -------------------------------------------------------------
CAPITAL GOODS -- 10.9%
Aerospace & Defense -- 1.7%
399 Finmeccanica S.p.A. $ 4,887
216 General Dynamics Corp. 13,029
2,695 Meggitt Plc 5,936
148 United Technologies Corp. 8,134
----------
$ 31,986
- -------------------------------------------------------------
Building Products -- 0.4%
2,000 Nippon Sheet Glass Co., Ltd. $ 6,488
- -------------------------------------------------------------
Construction & Engineering -- 0.2%
514 Yit Oyj $ 3,212
- -------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.5%
1,000 Hino Motors, Ltd. $ 2,298
100 Man AG* 4,928
380 Volvo Ab (Class B)* 2,004
----------
$ 9,230
- -------------------------------------------------------------
Electrical Component & Equipment -- 1.2%
1,000 Panasonic Electric Works Co., Ltd. $ 8,604
97 Schneider Electric SA* 5,842
400 Sumitomo Electric, Inc. 3,207
19,000 Walsin Lihwa Corp.* 4,393
----------
$ 22,046
- -------------------------------------------------------------
Industrial Conglomerates -- 1.1%
135 3M Co. $ 8,681
312 Philips Electronics NV* 5,767
197 Rheinmetall AG* 6,083
----------
$ 20,531
- -------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 13
Schedule of Investments | 10/31/08 (continued)
Shares Value
Industrial Machinery -- 4.3%
1,000 Amada Co., Ltd. $ 4,658
285 Andritz AG* 8,221
308 Danaher Corp. 18,246
420 Dover Corp. 13,343
575 Heidelberger Druckmaschinen AG 5,516
483 Ingersoll-Rand Co. 8,911
332 Parker Hannifin Corp. 12,872
4,000 Takuma Co., Ltd. 7,860
----------
$ 79,627
- ---------------------------------------------------------------
Trading Companies & Distributors -- 1.5%
1,000 Itochu Corp. $ 5,389
1,000 Marubeni Corp. 3,956
1,000 Mitsui & Co., Ltd. 9,593
400 Sumitomo Corp. 3,580
993 Wolseley Plc 5,468
----------
$ 27,986
----------
Total Capital Goods $ 201,106
- ---------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.2%
Human Resource & Employment Services -- 0.2%
178 Randstad Holdings NV $ 3,464
----------
Total Commercial Services & Supplies $ 3,464
- ---------------------------------------------------------------
TRANSPORTATION -- 2.0%
Air Freight & Couriers -- 0.3%
439 Deutsche Post AG $ 4,890
- ---------------------------------------------------------------
Airlines -- 0.8%
572 Deutsche Lufthansa AG* $ 8,082
1,000 Singapore Airlines, Ltd. 7,543
----------
$ 15,625
- ---------------------------------------------------------------
Marine -- 0.9%
8,000 Neptune Orient Lines, Ltd. $ 6,711
1,000 Nippon Yusen Kabushiki Kaisha 4,784
3,000 Orient Overseas International, Ltd. 5,308
----------
$ 16,803
----------
Total Transportation $ 37,318
- ---------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 4.1%
Auto Parts & Equipment -- 2.0%
400 Aisin Seiki Co., Ltd. $ 6,938
200 Denso Corp. 3,942
796 Johnson Controls, Inc. 14,113
500 Toyoda Gosei Co., Ltd. 7,023
The accompanying notes are an integral part of these financial statements.
14 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
Shares Value
Auto Parts & Equipment -- (continued)
200 Toyota Industries Corp. $ 4,565
----------
$ 36,581
- -------------------------------------------------------------
Automobile Manufacturers -- 1.5%
3,000 Fuji Heavy Industries, Ltd. $ 10,431
500 Honda Motor Co., Ltd. 12,393
197 PSA Peugeot* 5,273
----------
$ 28,097
- -------------------------------------------------------------
Motorcycle Manufacturers -- 0.2%
300 Yamaha Motor Co., Ltd.* $ 3,288
- -------------------------------------------------------------
Tires & Rubber -- 0.4%
500 Bridgestone Corp.* $ 8,648
----------
Total Automobiles & Components $ 76,614
- -------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.4%
Consumer Electronics -- 0.2%
200 Sony Corp.* $ 4,566
- -------------------------------------------------------------
Footwear -- 1.1%
9,000 Pou Chen Corp.* $ 4,109
8,500 Yue Yuen Industrial Holdings, Ltd. 16,832
----------
$ 20,941
- -------------------------------------------------------------
Textiles -- 0.1%
4,000 Nien Hsing Textile Co., Ltd.* $ 1,056
----------
Total Consumer Durables & Apparel $ 26,563
- -------------------------------------------------------------
MEDIA -- 1.6%
Broadcasting -- 0.3%
50 Nippon Television Network Corp. $ 4,784
- -------------------------------------------------------------
Movies & Entertainment -- 1.3%
1,453 Time Warner, Inc. $ 14,661
363 Vivendi SA* 9,506
----------
$ 24,167
----------
Total Media $ 28,951
- -------------------------------------------------------------
RETAILING -- 1.5%
Computer & Electronics Retail -- 0.8%
505 Best Buy Co., Inc. $ 13,539
- -------------------------------------------------------------
Department Stores -- 0.7%
1,089 Macys, Inc. $ 13,384
----------
Total Retailing $ 26,923
- -------------------------------------------------------------
FOOD & DRUG RETAILING -- 4.2%
Drug Retail -- 0.4%
241 CVS Caremark Corp. $ 7,387
- -------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 15
Schedule of Investments | 10/31/08 (continued)
Shares Value
Food Distributors -- 0.9%
600 Sysco Corp. $ 15,720
- -----------------------------------------------------------------
Food Retail -- 1.0%
200 FamilyMart* $ 7,972
743 SUPERVALU, Inc. 10,580
----------
$ 18,552
- -----------------------------------------------------------------
Hypermarkets & Supercenters -- 1.9%
630 Wal-Mart Stores, Inc. $ 35,160
----------
Total Food & Drug Retailing $ 76,819
- -----------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 3.7%
Agricultural Products -- 2.0%
491 Archer Daniels Midland Co. $ 10,178
276 Bunge, Ltd. 10,601
22,000 Chaoda Modern Agriculture, Ltd.* 15,038
----------
$ 35,817
- -----------------------------------------------------------------
Brewers -- 0.3%
151 Inbev NV* $ 6,095
- -----------------------------------------------------------------
Packaged Foods & Meats -- 0.9%
526 Koninklijke Wessanen NV $ 3,246
1,000 Nippon Meat Packers, Inc. 13,843
----------
$ 17,089
- -----------------------------------------------------------------
Soft Drinks -- 0.5%
153 PepsiCo, Inc. $ 8,723
----------
Total Food, Beverage & Tobacco $ 67,724
- -----------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.6%
Health Care Distributors -- 0.9%
438 McKesson Corp. $ 16,114
- -----------------------------------------------------------------
Health Care Equipment -- 1.5%
465 Baxter International, Inc. $ 28,128
- -----------------------------------------------------------------
Health Care Services -- 2.0%
287 Fresenius Medical Care AG $ 13,019
603 Medco Health Solutions, Inc.* 22,884
----------
$ 35,903
- -----------------------------------------------------------------
Managed Health Care -- 0.2%
252 CIGNA Corp.* $ 4,108
----------
Total Health Care Equipment & Services $ 84,253
- -----------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 8.9%
Biotechnology -- 2.8%
446 Biogen Idec, Inc.* $ 18,977
455 Genzyme Corp.* 33,160
----------
$ 52,137
- -----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
Shares Value
Life Sciences Tools & Services -- 0.9%
308 Applera Corp., Applied Biosystems Group $ 9,496
171 Thermo Fisher Scientific, Inc.* 6,943
----------
$ 16,439
- ------------------------------------------------------------------
Pharmaceuticals -- 5.2%
188 Abbott Laboratories $ 10,368
211 Eli Lilly & Co. 7,136
200 Hisamitsu Pharmaceutical Co.* 8,344
407 Johnson & Johnson Co. 24,965
290 Novartis* 14,725
76 Roche Holdings AG 11,676
281 Sanofi-Aventis SA* 17,708
----------
$ 94,922
----------
Total Pharmaceuticals & Biotechnology $ 163,498
- ------------------------------------------------------------------
BANKS -- 6.2%
Diversified Banks -- 5.2%
2,419 Banco Santander Central Hispano SA $ 26,196
69 Barclays Plc 185
299 BNP Paribas SA* 21,730
13,000 Boc Hong Kong Holdings, Ltd. 14,562
2,818 HSBC Holding Plc 34,120
----------
$ 96,793
- ------------------------------------------------------------------
Regional Banks -- 1.0%
487 Zions BanCorp. $ 18,560
----------
Total Banks $ 115,353
- ------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.5%
Asset Management & Custody Banks -- 2.4%
1,298 Man Group Plc $ 7,471
1,130 The Bank of New York Mellon Corp. 36,838
----------
$ 44,309
- ------------------------------------------------------------------
Consumer Finance -- 0.1%
270 Takefuji Corp. $ 2,197
----------
Total Diversified Financials $ 46,506
- ------------------------------------------------------------------
INSURANCE -- 5.7%
Life & Health Insurance -- 2.1%
1,067 Aegon NV $ 4,377
448 MetLife, Inc. 14,883
1,207 UNUM Group 19,010
----------
$ 38,270
- ------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 17
Schedule of Investments | 10/31/08 (continued)
Shares Value
Multi-Line Insurance -- 0.8%
102 Allianz AG $ 7,841
1,216 Aviva Plc 7,314
----------
$ 15,155
- ---------------------------------------------------------------
Property & Casualty Insurance -- 1.7%
743 The Travelers Companies, Inc. $ 31,615
- ---------------------------------------------------------------
Reinsurance -- 1.1%
501 Swiss Reinsurance, Ltd. $ 20,950
----------
Total Insurance $ 105,990
- ---------------------------------------------------------------
REAL ESTATE -- 0.9%
Diversified Real Estate Activities -- 0.6%
3,000 Henderson Land Development Co., Ltd. $ 10,674
- ---------------------------------------------------------------
Real Estate Development -- 0.3%
22,000 Allgreen Properties, Ltd.* $ 6,039
----------
Total Real Estate $ 16,713
- ---------------------------------------------------------------
SOFTWARE & SERVICES -- 0.7%
IT Consulting & Other Services -- 0.7%
800 Satyam Computer Services, Ltd.* $ 12,584
----------
Total Software & Services $ 12,584
- ---------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 4.5%
Communications Equipment -- 1.3%
1,453 Ericsson LM* $ 10,269
2,730 Motorola, Inc. 14,660
----------
$ 24,929
- ---------------------------------------------------------------
Computer Hardware -- 0.9%
1,000 Fujitsu, Ltd. $ 3,971
2,000 NEC Corp. 5,998
1,608 Sun Microsystems, Inc.* 7,397
----------
$ 17,366
- ---------------------------------------------------------------
Computer Storage & Peripherals -- 0.7%
1,222 Seagate Technology LLC $ 8,273
300 Seiko Epson Corp. 4,546
----------
$ 12,819
- ---------------------------------------------------------------
Electronic Components -- 0.5%
300 OMRON Corp. $ 4,247
1,000 Taiyo Yuden Co., Ltd. 4,729
----------
$ 8,976
- ---------------------------------------------------------------
Electronic Equipment & Instruments -- 0.3%
1,000 Hitachi, Ltd. $ 4,634
- ---------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
Shares Value
Office Electronics -- 0.8%
100 Canon, Inc.* $ 3,434
1,000 RICOH Co. 10,615
----------
$ 14,049
----------
Total Technology Hardware & Equipment $ 82,773
- ----------------------------------------------------------------
SEMICONDUCTORS -- 1.5%
1,006 Broadcom Corp.* $ 17,182
1,356 ST Microelectronics NV 11,149
----------
$ 28,331
----------
Total Semiconductors $ 28,331
- ----------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.5%
Integrated Telecommunication Services -- 3.2%
672 Deutsche Telekom AG* $ 10,014
2 Nippon Telegraph & Telephone Corp. 8,192
3,279 Telecom Italia S.p.A.* 2,766
818 Telefonica SA 15,149
754 Verizon Communications, Inc. 22,371
----------
$ 58,492
- ----------------------------------------------------------------
Wireless Telecommunication Services -- 1.3%
1 KDDI Corp.* $ 5,962
46 SK Telecom Co., Ltd.* 7,262
8,000 Taiwan Mobile Co., Ltd.* 11,132
----------
$ 24,356
----------
Total Telecommunication Services $ 82,848
- ----------------------------------------------------------------
UTILITIES -- 6.1%
Electric Utilities -- 3.3%
1,448 Duke Energy Corp. $ 23,718
483 E.On AG* 18,848
516 Southern Co. 17,719
----------
$ 60,285
- ----------------------------------------------------------------
Gas Utilities -- 0.4%
2,000 Osaka Gas Co., Ltd. $ 7,161
- ----------------------------------------------------------------
Multi-Utilities -- 2.4%
1,876 Centerpoint Energy, Inc. $ 21,613
1,306 Excel Realty Trust, Inc. 22,752
----------
$ 44,365
----------
Total Utilities $ 111,811
- ----------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $2,653,293) $1,667,290
- ----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 19
Schedule of Investments | 10/31/08 (continued)
Shares Value
PURCHASED OPTIONS -- 1.1%
Put Option -- 1.1%
5 DJ Euro Stoxx, expiring December 2008 at $2,300 $ 6,655
2 NKY8000, Expiring December 2008 at $8,000 14,545
----------
$ 21,200
- ---------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS
(Cost $29,461) $ 21,200
- ---------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 91.7%
(Cost $2,695,603) (a)(b) $1,693,929
- ---------------------------------------------------------------------------
WRITTEN OPTIONS -- (0.7)%
Put Option -- (0.7)%
(5) DJ Euro Stoxx, expiring December 2008 at $2,100 $ (4,071)
(2) NKY7250, Expiring December 2008 at $7,250 (9,465)
----------
$ (13,536)
- ---------------------------------------------------------------------------
TOTAL OPTIONS WRITTEN
(Cost $(18,514)) $ (13,536)
- ---------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 9.0% $ 166,107
- ---------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $1,846,500
===========================================================================
* Non-income producing security.
(A.D.R.) American Depositary Receipt.
(a) At October 31, 2008, the net unrealized loss on investments based on cost
for federal income tax purposes of $2,697,245 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 1,723
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (1,005,039)
-----------
Net unrealized loss $(1,003,316)
===========
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
(b) Distributions of investments by country of issue (excluding temporary
cash investments) as a percentage of total investment in securities, is
as follows:
United States 45.6%
Japan 14.7
Germany 5.5
France 5.2
United Kingdom 4.4
Spain 3.2
Netherlands 3.1
Switzerland 2.8
Austria 1.9
Hong Kong 1.8
Bermuda 1.6
Italy 1.3
Taiwan 1.2
Singapore 1.2
Other (individually less than 1%) 6.5
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for
the period ended October 31, 2008 aggregated $3,598,586, and $855,858,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 21
Statement of Assets and Liabilities | 10/31/08
ASSETS:
Investment in securities, at value (cost $2,695,603) $1,693,929
Cash 180,131
Futures Collateral 12,375
Foreign currencies, at value (cost $6,871) 6,332
Receivables --
Investment securities sold 730
Variation margin 580
Dividends and foreign taxes withheld 5,148
Due from Pioneer Investment Management, Inc. 13,477
Other 1,368
- ----------------------------------------------------------------------------------
Total assets $1,914,070
- ----------------------------------------------------------------------------------
LIABILITIES:
Payables --
Forward foreign currency portfolio hedge contracts, open -- net $ 10,223
Open option contracts written (premiums received $18,514) 13,536
Due to affiliates 14
Accrued expenses 43,797
- ----------------------------------------------------------------------------------
Total liabilities $ 67,570
- ----------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $2,998,777
Undistributed net investment income 17,112
Accumulated net realized loss on investments, foreign currency
transactions, futures and options contracts (142,465)
Net unrealized loss on investments and purchased options (1,001,674)
Net unrealized loss on forward foreign currency contracts, written
options and other assets and liabilities denominated in foreign
currencies (5,660)
Net unrealized loss on futures contracts (19,590)
- ----------------------------------------------------------------------------------
Total net assets $1,846,500
==================================================================================
NET ASSET VALUE PER SHARE:
(No par value, Unlimited number of shares authorized)
Class A ($1,846,500/300,000) $ 6.15
----------
MAXIMUM OFFERING PRICE:
Class A ($6.15 [divided by] 94.25%) $ 6.53
==================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
Statement of Operations
For the period from 6/3/08 (Commencement of Operations) to 10/31/08
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $1,439) $ 21,579
Interest 1,548
- ----------------------------------------------------------------------------------------------------
Total investment income $ 23,127
- ----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 7,713
Distribution fees 2,571
Administrative fees 231
Custodian fees 15,540
Professional fees 36,605
Printing expense 11,530
Fees and expenses of nonaffiliated trustees 4,520
Pricing expense 12,360
Miscellaneous 1,400
- ----------------------------------------------------------------------------------------------------
Total expenses $ 92,470
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (78,983)
- ----------------------------------------------------------------------------------------------------
Net expenses $ 13,487
- ----------------------------------------------------------------------------------------------------
Net investment income $ 9,640
- ----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES AND OPTIONS CONTRACTS, AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (133,614)
Futures contracts (23,256)
Forward foreign currency contracts and other assets, written
options and liabilities denominated in foreign currencies 20,764 $ (136,106)
- ----------------------------------------------------------------------------------------------------
Change in net unrealized loss on:
Investments and purchased options $ (1,001,674)
Futures contracts (19,590)
Forward foreign currency contracts and other assets, written
options and liabilities denominated in foreign currencies (5,660) $ (1,026,924)
- ----------------------------------------------------------------------------------------------------
Net loss on investments, futures and options contracts, and
foreign currency transactions $ (1,163,030)
- ----------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (1,153,390)
====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 23
Statement of Changes in Net Assets
For the period from 6/3/08 (Commencement of Operations) to 10/31/08
6/3/08
(Commencement
of Operations)
to 10/31/08
FROM OPERATIONS:
Net investment income $ 9,640
Net realized loss on investments, futures and options contracts
and foreign currency transactions (136,106)
Change in net unrealized loss on investments, futures and
options contracts, and foreign currency transactions (1,026,924)
- -------------------------------------------------------------------------------
Net increase decrease in net assets resulting from
operations $(1,153,390)
- -------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 2,999,890
- -------------------------------------------------------------------------------
Net increase in net assets resulting from Fund share
transactions $ 2,999,890
- -------------------------------------------------------------------------------
Net increase in net assets $ 1,846,500
NET ASSETS:
Beginning of period --
- -------------------------------------------------------------------------------
End of period $ 1,846,500
- -------------------------------------------------------------------------------
Undistributed net investment income $ 17,112
- -------------------------------------------------------------------------------
'08 Shares '08 Amount
Class A*
Shares sold 300,000 $2,999,890
- --------------------------------------------------------------------------------
Net increase 300,000 $2,999,890
- --------------------------------------------------------------------------------
* Class A shares were first publicly offered on June 3, 2008.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
Financial Highlights
6/3/08 (a)
(Commencement
of Operations)
to 10/31/08
Class A
Net asset value, beginning of period $ 10.00
- ----------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.03
Net realized and unrealized loss on investments, written
options, futures contracts and foreign currency transactions (3.88)
- ----------------------------------------------------------------------------------
Net decrease in net assets from investment operations $ (3.85)
- ----------------------------------------------------------------------------------
Net decrease in net asset value $ (3.85)
- ----------------------------------------------------------------------------------
Net asset value, end of period $ 6.15
- ----------------------------------------------------------------------------------
Total return* (38.50)%***
Ratio of net expenses to average net assets 1.30%**
Ratio of net investment income to average net assets 0.93%**
Portfolio turnover rate 38%***
Net assets, end of period (in thousands) $ 1,847
Ratios with no waiver of fees and assumption of expenses by PIM
Net expenses 8.95%**
Net investment loss (6.71)%**
- ----------------------------------------------------------------------------------
(a) Class A shares were first publicly offered on June 3, 2008.
* 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.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 25
Notes to Financial Statements | 10/31/08
1. Organization and Significant Accounting Policies
Pioneer Global Diversified Equity Fund (the Fund) is a Delaware statutory trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is to seek
long-term capital growth. The Fund was organized on June 3, 2008. Prior to June
3, 2008, the Fund had no operations other than those relating to organizational
matters and the initial capitalization of the Fund by Pioneer Funds
Distributor, Inc. (PFD). To date, no shares have been offered to the public.
The Fund shares outstanding at October 31, 2008, are owned by PFD. The Fund's
investment objective is to seek long-term capital growth.
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 year. Actual results could differ from those estimates.
The Fund's investments in emerging markets or countries with limited or
developing markets may subject the Fund to a greater degree of risk than
investments in a developed market. Risks associated with these developing
markets include political, social or economic factors and may affect the price
of the Fund's investments and income generated by these investments, as well as
the Fund's ability to repatriate such amounts.
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'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:
26 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, securities are valued at the last sale price
on the principal exchange where they are traded. Securities that have not
traded on the date of valuation, or securities for which sale prices are
not generally reported, are valued at the mean between the last bid and
asked prices. Securities for which market quotations are not readily
available are valued at their fair values as determined by, or under the
direction of, the Board of Trustees. The Fund invests primarily in
securities of non-U.S. issuers. The principal exchanges and markets for
such securities have closing times prior to the close of the NYSE. However,
the value of these securities may be influenced by changes in global
markets occurring after the closing times of the local exchanges and
markets up to the time the Fund determines its net asset value.
Consequently, the Board of Trustees of the Fund has determined that the use
of daily fair valuations as provided by a pricing service is appropriate
for the Fund. The Fund may also take into consideration other significant
events in determining the fair value of these securities. Thus, the Fund's
securities valuations may differ from prices reported by the various local
exchanges and markets. At October 31, 2008, there were no securities fair
valued. Temporary cash investments are valued at cost which approximates
market value.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis.
Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 27
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in market price of those securities but are included
with the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a
future date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Fund's
financial statements. The Fund records realized gains and losses at the
time a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 6).
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its 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.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the repatriation of certain foreign
currencies and/or net realized capital gains in certain countries. During
the year ended October 31, 2008, the Fund paid no such taxes.
In determining daily net asset value, the Fund estimates the reserve for
such taxes, if any, associated with investments in certain countries. The
estimated reserve for capital gains taxes, if any, is based on the net
unrealized appreciation of certain portfolio securities, the holding
periods of such securities and the related tax rates, tax loss carryforward
(if applicable) and other such factors. As of October 31, 2008, the Fund
did not have a reserve related to capital gains.
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,
28 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
or as from paid-in capital, depending on the type of book/tax differences
that may exist.
As of October 31, 2008, the Fund has a net capital loss carryforward of
$160,413, which will expire in 2016 if not utilized.
At October 31, 2008, the Fund has reclassified $6,359 to decrease
accumulated net realized loss on investments, foreign currency
transactions, futures and options contracts, $1,113 to decrease paid-in
capital and $7,472 to increase undistributed net investment income, 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.
There were no distributions paid during the period ended October 31, 2008.
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2008:
2008
Distributable earnings:
Undistributed ordinary income $ 6,889
Capital loss carryforward (160,413)
Unrealized depreciation (998,753)
- --------------------------------------------------------------------------------
Total $ (1,152,277)
================================================================================
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales and the tax
treatment on open future contracts, the mark to market on forward foreign
currency contracts and options.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. PFD,
the principal underwriter for the Fund and a wholly owned indirect
subsidiary of UniCredit S.p.A (UniCredit), earned no underwriting
commissions on the sale of Class A shares during the period ended October
31, 2008.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the 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 shares of the Fund (see Note 4).
Distributions to shareowners are recorded as of the ex-dividend date.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 29
G. Futures Contracts
The Fund may enter into futures transactions to hedge against changes in
interest rates, securities prices and currency rates or to seek to increase
total return. Upon entering into a futures contract, the Fund is required
to deposit with a broker an amount of cash or securities equal to the
minimum "initial margin" requirements of the associated futures exchange.
Subsequent payments for futures contracts ("variation margin") are paid or
received by the Fund, depending on the daily fluctuation in the value of
the contracts, and are recorded by the Fund as unrealized gains or losses.
When the contract is closed, the Fund realizes a gain or loss equal to the
difference between the opening and closing value of the contract. The use
of futures contracts involves, to varying degrees, elements of market and
counterparty risks, which may exceed the amounts recognized by the Fund.
Changes in value of the contracts may not directly correlate to the changes
in value of the underlying securities. These risks may decrease the
effectiveness of the Fund's hedging strategies and potentially result in a
loss.
At October 31, 2008 open futures contracts were as follows.
Number of
Contracts Settlement Market Unrealized
Type Long/(Short) Month Value Loss
S&P 500 2 12/08 $96,730 $(19,590)
H. Option Writing
When the Fund writes an option, an amount equal to the premium received by
the Fund is recorded as a liability and is subsequently adjusted to the
current fair value of the option written. Premiums received from writing
options that expire unexercised are treated by the Fund on the expiration
date as realized gains from investments. The difference between the premium
and the amount paid on effecting a closing purchase transaction, including
brokerage commissions, is also treated as a realized gain, or, if the
premium is less than the amount paid for the closing purchase transaction,
as a realized loss. If a call option is exercised, the premium is added to
the proceeds from the sale of the underlying security in determining
whether the Fund has realized a gain or loss. The Fund as writer of an
option bears the market risk of an unfavorable change in the price of the
security underlying the written option.
30 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
Transactions in written options for the year ended October 31, 2008 are
summarized as follows:
Number of Premiums
Contracts Received
Options outstanding at beginning of period -- $--
Options opened 30 65,774
Options exercised -- --
Options closed 23 47,260
Options expired -- --
---------------------------------------------------------------------------
Options outstanding at end of period 7 $18,514
===========================================================================
2. Management Agreement
Pioneer Investment Management, Inc., (PIM) a wholly owned indirect subsidiary
of UniCredit, manages the Fund's portfolio. Management fees are calculated
daily at the annual rate of 0.75% of the Fund's average daily net assets up to
$500 million, 0.70% of the excess over $500 million and 0.65% over $1 billion.
For the year ended October 31, 2008, the net management fee was equivalent to
0.85% of the Fund's average net assets.
Through March 1, 2011, PIM has agreed not to impose all or a portion of its
management fee and to assume other operating expenses of the Fund to the extent
necessary to limit Class A expenses to 1.30% of the average daily net assets
attributable to Class A 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 $1 in management fees,
administrative costs and certain other services payable to PIM at October 31,
2008.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc., (PIMSS) a wholly
owned indirect subsidiary of UniCredit, provides substantially all transfer
agent and shareowner services to the Fund at negotiated rates.
4. Distribution Plan
The Fund adopted a Plan of Distribution with respect to Class A shares in
accordance with Rule 12b-1 of the Investment Company Act of 1940. Currently
under the Class A Plan, PFD is reimbursed for distribution expenses in an
amount of 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 $13 in distribution fees payable to PFD at October 31, 2008.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 31
In addition, redemptions of 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.
Proceeds from the CDSCs are paid to PFD. For the period ended October 31, 2008,
no CDSCs were paid to PFD.
5. Forward Foreign Currency Contracts
At October 31, 2008, the Fund had entered into various contracts that obligate
the Fund to deliver currencies at specified future dates. At the maturity of a
contract, the Fund must make delivery of the foreign currency. Alternatively,
prior to the settlement date of a portfolio hedge, the Fund may close out such
contracts by entering into an offsetting hedge contract. Open Portfolio hedges
at October 31, 2008 were as follows:
Net
Contracts to Net
(deliver)/ In Exchange Settlement Unrealized
Currency receive For Date Value Gain (loss)
EUR
(Euro) 70,460 $ 100,167 1/21/09 $ 89,699 $ (10,468)
EUR
(Euro) (131,563) $ (186,597) 1/21/09 $ (167,618) $ 18,978
GBP
(British Pound Sterling) 65,000 $ 116,597 1/21/09 $ 104,431 $ (12,167)
JPY
(Japanese Yen) (10,500,000) $ (100,167) 1/21/09 $ (106,733) $ (6,566)
- -------------------------------------------------------------------------------------------------------------------
$ (10,223)
===================================================================================================================
At October 31, 2008, the Fund had no outstanding settlement hedges.
6. 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.
32 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII and Shareowners of
Pioneer Global Diversified Equity Fund:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Global Diversified Equity Fund (the "Fund") (one of the portfolios constituting
the Pioneer Series Trust VII), including the schedule of investments, as of
October 31, 2008, and the related statements of operations, changes in net
assets, and the financial highlights for the period from June 3, 2008
(commencement of operations) to October 31, 2008. 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 audit.
We conducted our audit 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 audit 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 and brokers. We believe that our audit 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 Global Diversified Equity Fund at October 31, 2008, the results of its
operations, the changes in its net assets and the financial highlights for the
period from June 3, 2008 (commencement of operations) to October 31, 2008, in
conformity with U.S. generally accepted accounting principles.
/s/Ernst & Young LLP
Boston, Massachusetts
December 19, 2008
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 33
Results of Shareholder Meeting (unaudited)
At a special meeting held on May 13, 2008, shareholders of the Fund were asked
to consider the proposal described below. The Fund is one of the funds in
Pioneer Series Trust VII. A report of the total votes cast by all shareholders
of all series of Pioneer Series Trust VII follows:
Broker
For Withhold Abstain Non-Votes
Proposal 1 -- To elect Trustees
John F. Cogan, Jr. 97,117,735.206 2,711,619.196 84,784.503 0.000
Daniel K. Kingsbury 97,138,271.027 2,691,083.375 84,784.503 0.000
David R. Bock 97,133,385.774 2,695,968.628 84,784.503 0.000
Mary K. Bush 97,116,587.467 2,712,766.935 84,784.503 0.000
Benjamin M. Friedman 97,127,767.422 2,701,586.980 84,784.503 0.000
Margaret B.W. Graham 97,140,476.435 2,688,877.967 84,784.503 0.000
Thomas J. Perna 97,132,102.410 2,697,251.992 84,784.503 0.000
Marguerite A. Piret 97,134,391.182 2,694,983.220 84,784.503 0.000
Stephen K. West 97,129,009.235 2,700,345.167 84,784.503 0.000
John Winthrop 97,126,660.693 2,702,693.709 84,784.503 0.000
34 Pioneer Global Diversified Equity 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, determined 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 July 10, 2007, based on their
evaluation of the information provided by PIM, the Trustees, including the
independent Trustees voting separately, unanimously approved an 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
(hereinafter, each of the previous investment advisory agreement and the
amended and restated investment advisory agreement are referred to collectively
as the "investment advisory agreement"). The initial shareholder of the Fund
also approved the investment advisory agreement.
In considering the 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 investment advisory agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that
would be provided by PIM to the Fund under the investment advisory agreement,
taking into account the investment objective and strategy of the Fund. The
Trustees reviewed the terms of the investment advisory agreement. The Trustees
also reviewed PIM's investment approach for the Fund and its
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 35
research process. The Trustees considered the resources of PIM and the
personnel of PIM who would 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 would provide
to the Fund under the investment advisory agreement and that, as administrator,
PIM would be responsible for the administration of the Fund's business and
other affairs. It was noted that PIM would supervise and monitor 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 quality of such services provided by PIM to the other
Pioneer Funds. The Trustees considered the fees to be 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 provide to the Fund under the investment
advisory agreement, were satisfactory and consistent with the terms of the
investment advisory agreement.
Performance of the Fund
In considering the investment advisory agreement, the Trustees noted that Fund
was newly-offered and did not have a performance history. The Trustees
considered the performance results provided at regular Board meetings for other
Pioneer Funds with similar investment objectives and strategies to the Fund,
and concluded that the investment performance of such other Pioneer Funds was
satisfactory.
Management Fee and Expenses
The Trustees considered the management fee to be paid by the Fund under the
investment advisory agreement. The Trustees considered information compiled by
Strategic Insight Simfund (Strategic Insight), an independent third party, to
compare the Fund's proposed management fee with the other funds in the
Morningstar World Stock Open-End Mutual Fund category, and total expense data
for all funds within the Morningstar World Stock Open-End Mutual Fund category.
The Trustees considered that the Fund's proposed management fee would rank
below the median management fees paid by other funds within the Morningstar
World Stock Open-End Mutual Fund category. The Trustees also considered the
Fund's anticipated expense ratio, and considered the contractual expense
limitation agreed to by PIM with respect to the Fund.
The Trustees concluded that the proposed management fee payable by the Fund to
PIM was reasonable in relation to the nature and quality of services to be
provided, taking into account the fees charged by other advisers for managing
comparable mutual funds with similar strategies. The Trustees also concluded
that the Fund's anticipated expense ratio was reasonable, taking into
36 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08
account the quality of services to be provided by PIM (based on the Trustees'
familiarity with PIM's management of the other Pioneer Funds and with PIM's and
its affiliates' personnel) 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 was newly-offered and profitability information was not available.
Economies of Scale
The Trustees considered the economies of scale with respect to the management
of the Fund, whether the Fund would appropriately benefit from any economies of
scale.
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 potential benefits to PIM from its
relationship with the Fund. The Trustees considered that affiliates of PIM
would serve as the Fund's transfer agent and distributor. The Trustees
considered that PIM and its affiliates would receive sales loads and payments
under Rule 12b-1 plans in respect of the Fund and the other Pioneer funds and
the benefits to PIM and its affiliates from the use of "soft" commission
dollars generated by the Fund to pay for research and brokerage services. 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 investment advisory agreement between PIM and the Fund, including
the fees payable thereunder, were fair and reasonable and voted to approve the
investment advisory agreement for the Fund.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/08 37
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.
38 Pioneer Global Diversified Equity 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 2001.
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.
- --------------------------------------------------------------------------------
Interested Trustees
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 Global Diversified Equity Fund | Annual Report | 10/31/08
39
Independent Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
David R. Bock (64) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------
Mary K. Bush (60) Trustee Trustee since 2001.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------
Independent Trustees
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
- -------------------------------------------------------------------------------------------------------------------------
40 Pioneer Global Diversified Equity 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 2001.
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 2001.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Stephen K. West (80) Trustee Trustee since 2001.
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 Global Diversified Equity Fund | Annual Report | 10/31/08 41
Fund Officers
Position Held Length of Service
Name and Age with the Fund and Term of Office
Dorothy E. Bourassa (60) Secretary Since 2003. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------------
Christopher J. Kelley (43) Assistant Secretary Since 2003. 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 2001. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------------
Gary Sullivan (50) Assistant Treasurer Since 2002. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------------
Fund Officers
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
- ----------------------------------------------------------------------------------------------------------------------
42 Pioneer Global Diversified Equity 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 2003. 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 Global Diversified Equity Fund | Annual Report | 10/31/08 43
This page for your notes.
44 Pioneer Global Diversified Equity 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 accompanied by a prospectus.
The Fund files a complete schedule 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.
Pioneer Global High
Yield Fund
- --------------------------------------------------------------------------------
Annual Report | October 31, 2008
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PGHYX
Class B PGHBX
Class C PGYCX
Class Y GHYYX
Class Z PGHZX
[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 15
Schedule of Investments 17
Financial Statements 42
Notes to Financial Statements 51
Report of Independent Registered Public Accounting Firm 60
Approval of Investment Advisory Agreement 63
Trustees, Officers and Service Providers 67
Pioneer Global High Yield Fund | Annual Report | 10/31/08 1
President's Letter
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 Global High Yield 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 Global High Yield Fund | Annual Report | 10/31/08 3
Portfolio Management Discussion | 10/31/08
A credit crisis that originally surfaced in the U.S. subprime mortgage market
spread to financial markets throughout the globe during the 12 months ended
October 31, 2008. Growing fears about credit risk prompted fixed-income
investors to seek out higher- quality bonds and avoid lower-rated debt
securities. The trend only intensified in September and October of 2008, the
period's final two months. As the flight to quality continued, high-yield
corporate bonds and emerging market debt suffered steep declines in their
prices. The following is an interview with Portfolio Manager Andrew Feltus, CFA,
who discusses the performance of Pioneer Global High Yield Fund during the
12-month period ended October 31, 2008. Mr. Feltus, a member of Pioneer's Fixed
Income Department, 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 Global High Yield Fund Class A shares returned -31.54%, at net
asset value over the 12 months. During the same period, the Merrill Lynch
High Yield Master II Index returned -26.52%, while the Merrill Lynch Global
High Yield and Emerging Markets Plus Index returned -26.49%. Over the same
12-month period, the average total return of the 462 funds in Lipper's High
Current Yield category was -25.13%. On October 31, 2008, the Fund's 30-day
SEC yield for Class A shares was 15.92%.
Q What was the investment environment like during the 12-month period ended
October 31, 2008?
A The market for high-yield bonds, both foreign and domestic, deteriorated
over the period, as fears grew that the global economy was heading into
recession. The volatility in the high-yield market only intensified as the
period progressed. October -- the final month of the period -- was the
worst month on record in the high-yield market. The Merrill Lynch High
Yield Master II Index returned -16.30% and the Merrill Lynch Global High
Yield and Emerging Markets Plus Index returned -17.62% during that one
month alone. The problem began with the deterioration in housing prices,
which eventually resulted in the failure or near-collapse of several major
financial institutions. As the financial markets became more volatile,
money available for traditional lending grew scarce, Congress passed a $700
billion financial rescue plan, and the Federal Reserve Board (the Fed)
continued to find ways to inject more money into the financial system. The
Fed, for example, cut the key fed funds rate to just 1.00% in October 2008.
Meanwhile, evidence increased of deteriorating economic conditions both in
the
4 Pioneer Global High Yield Fund | Annual Report | 10/31/08
United States and abroad, with fears growing that the global economy might
already have entered a recession.
In an environment in which investors tried to avoid risk, U.S. Treasuries
and the sovereign debt of foreign industrialized nations tended to hold up
better than other parts of the fixed-income market. Mortgages backed by
U.S. federal agencies trailed Treasuries, but they outperformed corporate
bonds, both investment-grade and high-yield. High-yield corporates in
Europe also struggled. In the emerging markets, higher-quality sovereign
debt performed relatively well, outperforming U.S. investment-grade
corporate bonds. Other emerging market securities, including corporates,
did well until late summer 2008, when they started to perform very poorly
as the aversion to credit risk spread to markets throughout the world.
Q How did you position the Fund in this difficult environment?
A We maintained a focus on U.S. high-yield corporate bonds, where most of the
Fund's assets were invested. Early in the Fund's fiscal year, we emphasized
more defensive sectors, such as bonds of energy, health care and utilities
companies. During the summer, when oil prices spiked up, we took gains and
reduced the Fund's energy positions in anticipation of a possible
correction in energy prices. When that correction occurred, we moved the
Fund to an overweight in energy industry bonds. As other opportunities
developed in the volatile market, we scaled back the Fund's exposure to
utilities and health care in order to take advantage of attractive prices
in other parts of the corporate bond market.
The Fund remained underweighted both in European high-yield corporates and
in the euro currency, as we believed that the market offered less yield
than in the United States, while many European corporations had greater
debt loads, or leverage, than American companies. We generally kept the
Fund underweighted in emerging market bonds but did emphasize emerging
market corporates. The emerging market corporates tended to hold back Fund
results, however, as they trailed sovereign debt during the period,
particularly during the violent sell-off in September and October.
At the end of the Fund's fiscal year, approximately 68% of Fund assets were
invested in higher-yielding domestic corporate bonds, with 23% invested in
emerging markets and the remaining assets spread out among European
high-yield corporates, cash and cash equivalents. During the period, we
added investments in senior tranches of private label, lower-quality U.S.
mortgage-backed securities. The investments did not help the Fund's
performance immediately, but we found their valuations to be particularly
attractive, as they were priced for extremely severe scenarios that we
thought unlikely to occur. At October 31, 2008, the average quality of all
Fund holdings was B-.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 5
Q What types of investments most influenced the Fund\'s performance during
the 12-month period?
A In a very challenging period for high-yield investing, the Fund did have
some holdings that nevertheless did relatively well. The Fund's position in
bank loans to Talecris helped when the value of the investment rose.
Talecris, a health care-related company involved in processing blood
supplies, successfully entered into an agreement with another corporation
that improved its growth prospects. Bonds of P&A Group, a metals processing
company, appreciated when the company was purchased by Reliance Steel &
Aluminum. In addition, two companies bought back some of their outstanding
bonds at a profit for the Fund: Corporacion Interamericana de
Entretenimiento, a Mexico-based company that produces live entertainment
shows throughout Latin America, tendered for some of its bonds; as did
Cervecia Dominica, a beer brewer in the Dominican Republic. The Fund had a
small position, about 1.5% of assets, in event-linked bonds, which are tied
to liabilities in the event of a catastrophic event, such as a hurricane.
Those bonds, which pay high dividend yields, performed well during the
period. While the U.S. did see several significant hurricanes during the
period, the storms did not cause enough damage to adversely affect
bondholders.
Like the overall high-yield market, most holdings performed poorly in the
downdraft affecting high-yield bonds generally. In fact, two companies
defaulted on their bonds, notably affecting performance. One was Belvedere,
a European liquor company that made a surprise bankruptcy filing in July
2008. The second was Bulgaria Steel, which had been acquired by a group of
Indian investors who subsequently found that the company had some
unanticipated problems. We have retained the Fund's position in Belvedere,
but we sold most of the Bulgaria Steel holding. Also hurting the Fund's
performance were investments in bonds of Kazak and Russian banks, which
underperformed other emerging market corporate bonds when they came under
pressure in the global credit crisis. Our emphasis on corporate bonds,
rather than sovereign debt, in emerging markets proved to be a detractor
from the Fund's results. In addition, the Fund's positions in
non-government, U.S. mortgage-backed securities did not help during the
period.
Q What is your investment outlook?
A As we enter a new fiscal year for the Fund, virtually everything in the
high-yield bond universe looks inexpensive. We believe prices -- as
reflected by the yield spreads between high-yield bonds and less risky
investments -- are trading at levels that reflect Depression-era default
rates. We think that type of economic scenario is highly unlikely, and
while we cannot forecast when the economy will begin to improve, we have
been seeing great value in the
6 Pioneer Global High Yield Fund | Annual Report | 10/31/08
high-yield market. We intend to rely on intensive credit analysis and
remain focused on finding the best opportunities among the highest-quality
companies in the high-yield market.
Please refer to the Schedule of Investments on pages 17-41 for a full listing of
Fund securities.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. 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.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
Investments in the Fund are subject to possible loss due to the financial
failure 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
Fund can invest in a limited number of securities and, as a result, the Fund's
performance may be more volatile than the performance of other funds holding
more securities. 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. These risks may increase share
price volatility.
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 Global High Yield Fund | Annual Report | 10/31/08 7
Portfolio Summary | 10/31/08
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[The following data was represented as a pie chart in the printed material]
Corporate Bonds 76.9%
Temporary Cash Investment 6.7%
Senior Secured Loans 6.1%
Asset Backed Securities 4.0%
Collateralized Mortgage Obligations 2.0%
Convertible Corporate Bonds 1.8%
Foreign Government Bonds 1.1%
Municipal Bonds 0.7%
Preferred Stock 0.5%
Rights/Warrants 0.2%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of total debt holdings)*
1. GC Impsat Holdings I Plc, 9.872%, 2/15/17 (144A) 1.48%
2. Altra Industrial Motion, Inc., 9.0%, 12/1/11 1.43
3. Exopack Holding Corp., 11.25%, 2/1/14 1.18
4. NCO Group, Inc., 11.875%, 11/15/14 1.12
5. CII Carbon LLC, 11.125%, 11/15/15 1.08
6. Broadview Networks Holdings, Inc., 11.375%, 9/1/12 (144A) 1.04
7. Pegasus Solutions, Inc., 10.5%, 4/15/15 (144A) 1.00
8. First Data Corp., 9.875%, 9/24/15 (144A) 0.97
9. Intergen NV, 9.0%, 6/30/17 0.93
10. AGY Holding Corp., 11.0%, 11/15/14 0.92
* The 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 Global High Yield 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 $ 7.56 $ 12.30
- --------------------------------------------------------------------------------
B $ 7.54 $ 12.27
- --------------------------------------------------------------------------------
C $ 7.51 $ 12.24
- --------------------------------------------------------------------------------
Y $ 7.46 $ 12.10
- --------------------------------------------------------------------------------
Z $ 7.79 $ 12.31
- --------------------------------------------------------------------------------
Distributions per Share: 10/31/07-10/31/08
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- --------------------------------------------------------------------------------
A $ 1.0708 $ 0.0226 $ 0.0864
- --------------------------------------------------------------------------------
B $ 0.9805 $ 0.0226 $ 0.0864
- --------------------------------------------------------------------------------
C $ 0.9845 $ 0.0226 $ 0.0864
- --------------------------------------------------------------------------------
Y $ 1.0969 $ 0.0226 $ 0.0864
- --------------------------------------------------------------------------------
Z $ 1.1140 $ 0.0226 $ 0.0864
- --------------------------------------------------------------------------------
Index Definition
- --------------------------------------------------------------------------------
The Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index tracks
the performance of the below and border-line investment-grade global debt
markets denominated in the major developed market currencies. The index includes
sovereign issuers rated BBB1 and lower along with corporate issuers rated BB1
and lower. There are no restrictions on issuer country of domicile. However, the
bonds must be publicly issued in a developed market (i.e., investment-grade
country). 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.
The index defined here pertains to the "Value of $10,000 Investment" charts
appearing on pages 10-14.
Pioneer Global High Yield 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 Global High Yield Fund at public offering price,
compared to that of the Merrill Lynch (ML) Global High Yield and Emerging
Markets Plus Index.
Average Annual Total Returns
(As of October 31, 2008)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
Life-of-Class
(8/27/01) 5.39% 4.72%
5 Years 0.70 -0.22
1 Year -31.54 -34.62
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.06% 1.06%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
ML Global
Pioneer High Yield
Global and Emerging
High Yield Markets Plus
Fund Index
8/01 9,550 10,000
10/02 9,273 9,429
10/04 15,502 14,456
10/06 18,860 17,095
10/08 13,982 13,632
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.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had charges been reflected. POP returns reflect deduction
of maximum 4.5% sales charge. 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 3/1/11 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 fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer Global High Yield Fund | Annual Report | 10/31/08
Performance Update | 10/31/08 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund, compared to that of the
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index.
Average Annual Total Returns
(As of October 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(11/21/03) -0.43% -0.57%
1 Year -32.11 -34.57
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.86% 1.86%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
ML Global
Pioneer High Yield
Global and Emerging
High Yield Markets Plus
Fund Index
11/03 10,000 10,000
10/04 11,146 11,192
10/05 11,995 11,858
10/06 13,344 13,234
10/07 14,332 14,355
10/08 9,663 10,553
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.
"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 applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com.
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 3/1/09 for Class B 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 fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 11
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 Global High Yield Fund, compared to that of the
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index.
Average Annual Total Returns
(As of October 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(11/21/03) -0.53% -0.53%
1 Year -32.08 -32.08
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.82% 1.82%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
ML Global
Pioneer High Yield
Global and Emerging
High Yield Markets Plus
Fund Index
11/03 10,000 10,000
10/04 11,079 11,192
10/05 11,921 11,858
10/06 13,267 13,234
10/07 14,260 14,355
10/08 9,685 10,553
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). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. "If Redeemed"
results reflect the deduction of 1% CDSC. 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 3/1/09 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 fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Global High Yield Fund | Annual Report | 10/31/08
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 Global High Yield Fund, compared to that of the
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index.
Average Annual Total Returns
(As of October 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(8/27/01) 5.31% 5.31%
5 Years 0.60 0.60
1 Year -31.05 -31.05
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
0.70% 0.70%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
ML Global
Pioneer High Yield
Global and Emerging
High Yield Markets Plus
Fund Index
8/01 10,000 10,000
10/02 9,711 9,429
10/04 16,234 14,456
10/06 19,542 17,095
10/08 14,568 13,632
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.
Performance for periods prior to the inception of the Fund's Class Y shares on
December 28, 2005 reflects the NAV performance of the Fund's Class A shares. The
performance does not reflect differences in expenses, including the Rule 12b-1
fees applicable to Class A shares. Since fees for Class A shares are generally
higher than those of Class Y shares, the performance shown for Class Y shares
prior to their inception on December 28, 2005 would have been higher. 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 fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 13
Performance Update | 10/31/08 Class Z Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund, compared to that of the
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index.
Average Annual Total Returns
(As of October 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(8/27/01) 5.90% 5.90%
5 Years 1.41 1.41
1 Year -29.21 -29.21
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
0.81% 0.81%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
ML Global
Pioneer High Yield
Global and Emerging
High Yield Markets Plus
Fund Index
8/01 10,000 10,000
10/02 9,711 9,429
10/04 16,234 14,456
10/06 19,751 17,095
10/08 15,161 13,632
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.
Performance for periods prior to the inception of Class Z shares on July 6, 2007
reflects the NAV performance of the Fund's Class A shares. The performance does
not reflect differences in expenses, including the Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares are generally higher than those of
Class Z shares, the performance shown for Class Z shares prior to their
inception July 6, 2007 would have been higher. Class Z 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 fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14 Pioneer Global High Yield 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 Global High Yield Fund
Based on actual returns from May 1, 2008 through October 31, 2008.
- ----------------------------------------------------------------------------------------------------------
Share Class A B C Y Z
- ----------------------------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 5/1/08
- ----------------------------------------------------------------------------------------------------------
Ending Account Value $ 704.10 $ 701.13 $ 701.36 $ 706.24 $ 720.95
(after expenses)
on 10/31/08
- ----------------------------------------------------------------------------------------------------------
Expenses Paid $ 4.71 $ 8.21 $ 7.91 $ 3.17 $ 3.89
During Period*
- ----------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.10%, 1.92%,
1.85%, 0.74%, and 0.90% for Class A, Class B, Class C, Class Y and Class Z
shares, respectively, multiplied by the average account value over the
period, multiplied by 184/366 (to reflect the one half year period).
Pioneer Global High Yield Fund | Annual Report | 10/31/08 15
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 Global High Yield Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from May 1, 2008 through October 31, 2008.
- ----------------------------------------------------------------------------------------------------------
Share Class A B C Y Z
- ----------------------------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 5/1/08
- ----------------------------------------------------------------------------------------------------------
Ending Account Value $ 1,019.61 $ 1,015.48 $ 1,015.84 $ 1,021.42 $ 1,020.61
(after expenses)
on 10/31/08
- ----------------------------------------------------------------------------------------------------------
Expenses Paid $ 5.58 $ 9.73 $ 9.37 $ 3.76 $ 4.57
During Period*
- ----------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.10%, 1.92%,
1.85%, 0.74%, and 0.90% for Class A, Class B, Class C, Class Y and Class Z
shares, respectively, multiplied by the average account value over the
period, multiplied by 184/366 (to reflect the one half year period).
16 Pioneer Global High Yield Fund | Annual Report | 10/31/08
Schedule of Investments | 10/31/08
- ---------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- ---------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 1.9%
MATERIALS -- 0.2%
Forest Products -- 0.2%
$ 3,550,000 Sino Forest Corp., 5.0%, 8/1/13 (144A) $ 2,689,125
--------------
Total Materials $ 2,689,125
- ---------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.5%
Trading Companies & Distributors -- 0.5%
9,710,000 Wesco Distribution, Inc., 1.75%, 11/15/26 $ 5,765,313
--------------
Total Capital Goods $ 5,765,313
- ---------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.5%
Marine -- 0.5%
11,305,000 Horizon Lines, Inc., 4.25%, 8/15/12 $ 6,019,913
--------------
Total Transportation $ 6,019,913
- ---------------------------------------------------------------------------------------------
MEDIA -- 0.2%
Movies & Entertainment -- 0.2%
3,270,000 Macrovision Corp., 2.625%, 8/15/11 (144A) $ 2,190,900
--------------
Total Media $ 2,190,900
- ---------------------------------------------------------------------------------------------
REAL ESTATE -- 0.2%
Retail Real Estate Investment Trust -- 0.2%
9,350,000 General Growth Properties, Inc., 3.98%,
4/15/27 (144A) $ 2,092,062
--------------
Total Real Estate $ 2,092,062
- ---------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.3%
Wireless Telecommunication Services -- 0.3%
7,850,000 NII Holdings, Inc., 3.125%, 6/15/12 $ 4,317,500
--------------
Total Telecommunication Services $ 4,317,500
- ---------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $39,657,921) $ 23,074,813
- ---------------------------------------------------------------------------------------------
Shares
- ---------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 0.5%
DIVERSIFIED FINANCIALS -- 0.5%
Multi-Sector Holding -- 0.1%
60,000 Vale Capital, Ltd., 5.5%, 6/15/10 $ 1,665,900
- ---------------------------------------------------------------------------------------------
Diversified Financial Services -- 0.4%
6,440 Bank of America Corp., 7.25%, 12/31/49 $ 4,508,000
--------------
Total Diversified Financials $ 6,173,900
- ---------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $8,246,539) $ 6,173,900
- ---------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 17
Schedule of Investments | 10/31/08 (continued)
- ---------------------------------------------------------------------------------------------------------
Floating
Rate (b)
Shares (unaudited) Value
- ---------------------------------------------------------------------------------------------------------
COMMON STOCK -- 0.0%
MATERIALS -- 0.0%
Forest Products -- 0.0%
244,090 Ainsworth Lumber Co., Ltd.*(c) $ 365,450
--------------
Total Materials $ 365,450
- ---------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost $2,320,511) $ 365,450
- ---------------------------------------------------------------------------------------------------------
Principal
Amount
- ---------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 4.1%
MATERIALS -- 0.4%
Steel -- 0.4%
$ 2,837,523 3.07 ACE 2004-HE4 M1, Floating Rate Note, 12/25/34 $ 1,972,501
2,934,234 3.36 Option One Mortgage Loan Trust, Floating Rate
Note, 7/25/36 2,738,875
--------------
$ 4,711,376
--------------
Total Materials $ 4,711,376
- ---------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.4%
Restaurants -- 0.4%
6,240,000 Dunkin Brands Master Finance LLC, 8.28%,
6/20/31 (144A) $ 4,522,440
--------------
Total Consumer Services $ 4,522,440
- ---------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 0.4%
Food Retail -- 0.4%
8,785,000 Dominos Pizza Master Issuer LLC, 7.629%, 4/25/37 $ 5,419,933
--------------
Total Food & Drug Retailing $ 5,419,933
- ---------------------------------------------------------------------------------------------------------
BANKS -- 2.4%
Thrifts & Mortgage Finance -- 2.4%
1,547,374 2.86 Bayview Financial Acquisition, Floating Rate
Note, 8/28/44 $ 1,377,907
8,090,000 2.67 Carrington Mortgage Loan Trust, Floating Rate
Note, 12/25/36 6,916,097
3,800,000 2.57 Carrington Mortgage Services LLC, Floating Rate Note,
10/25/36 3,541,879
3,151,051 3.44 Countrywide Asset-Backed, Floating Rate Note,
7/25/36 2,803,562
1,290,000 2.82 FBR Securitization Trust, Floating Rate Note,
10/25/35 964,956
3,987,348 2.59 Lehman XS Trust, Floating Rate Note, 8/25/36 2,541,580
9,647,389 2.82 Lehman XS Trust, Floating Rate Note, 12/25/35 4,474,919
2,332,683 2.67 Residential Asset Mortgage, Products, Inc., Floating
Rate Note, 3/25/36 2,093,922
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- --------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- --------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
$ 5,985,000 5.76 Taganka Car Loan Finance Plc, Floating Rate Note,
11/14/13 (144A) $ 5,566,050
--------------
$ 30,280,872
--------------
Total Banks $ 30,280,872
- --------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.5%
Investment Banking & Brokerage -- 0.1%
1,800,000 2.60 Gsamp Trust, Floating Rate Note, 1/25/37 $ 1,516,485
- --------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 0.4%
1,480,000 2.92 Bear Stearns Asset Backed Securities, Inc., Floating
Rate Note, 1/25/47 $ 605,266
4,720,000 3.15 Bear Stearns Asset Backed Securities, Inc., Floating
Rate Note, 3/25/35 3,528,069
790,318 2.66 FFML 2006-FF4 A2, Floating Rate Note, 3/25/36 696,804
--------------
$ 4,830,139
--------------
Total Diversified Financials $ 6,346,624
- --------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $59,290,646) $ 51,281,245
- --------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.2%
MATERIALS -- 0.2%
Forest Products -- 0.2%
4,315,000 T SRA R 2006-1 F, 7.5296%, 10/15/36 (144A) $ 2,157,500
--------------
Total Materials $ 2,157,500
- --------------------------------------------------------------------------------------------------------
BANKS -- 1.1%
Thrifts & Mortgage Finance -- 1.1%
3,440,294 2.83 Countrywide Alternative Loan Trust, Floating Rate
Note, 1/25/36 $ 1,702,744
2,717,602 2.82 Countrywide Alternative Loan Trust, Floating Rate
Note, 9/25/35 1,537,506
1,447,179 2.83 Countrywide Home Loans, Floating Rate Note,
3/25/35 765,251
2,978,214 2.82 Countrywide Home Loans, Floating Rate Note,
3/25/35 1,581,418
1,151,065 3.66 Impac Cmb Trust, Floating Rate Note, 4/25/35 923,287
9,540,571 2.73 Luminent Mortgage Trust, Floating Rate Note, 7/25/36 2,707,681
2,334,702 2.78 Structured Asset Mortgage Investments, Inc., Floating
Rate Note, 9/25/45 1,260,225
5,339,142 2.70 WAMU Mortgage Pass-Through Certificates, Floating
Rate Note, 4/25/45 3,194,630
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 19
Schedule of Investments | 10/31/08 (continued)
- -------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- -------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
$ 1,365,434 2.95 WAMU Mortgage Pass-Through Certificates, Floating
Rate Note, 7/25/45 $ 511,461
--------------
$ 14,184,203
--------------
Total Banks $ 14,184,203
- -------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.2%
Diversified Financial Services -- 0.2%
5,542,712 2.89 DSLA 2005-AR6 2A1C, Floating Rate Note, 10/19/45 $ 2,495,212
--------------
Total Diversified Financials $ 2,495,212
- -------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.7%
Integrated Telecommunication Services -- 0.7%
9,670,000 Global Tower Partners Acquisition, 7.87%, 5/15/37 $ 4,871,261
4,890,000 SBA CMBS Trust, 7.825%, 11/15/36 (g) 3,763,051
--------------
$ 8,634,312
--------------
Total Telecommunication Services $ 8,634,312
- -------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $39,920,587) $ 27,471,227
- -------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 79.3%
ENERGY -- 9.1%
Coal & Consumable Fuels -- 0.3%
3,650,000 Empire Capital Resources Pte, 9.375%, 12/15/11 $ 2,190,000
750,000 Indo Intergrate Energy B, 8.5%, 6/1/12 445,316
1,715,000 Massey Energy Co., 6.875%, 12/15/13 1,389,150
--------------
$ 4,024,466
- -------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.2%
5,965,000 Tristan Oil, Ltd., 10.5%, 1/1/12 (144A) (c) $ 2,386,000
- -------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 1.3%
10,705,049 DDI Holding AS, 9.3%, 1/19/12 (144A) $ 5,887,777
1,294,587 DDI Holdings AS, 9.3%, 4/23/12 (144A) 712,023
13,500,000 Petrolia Drilling ASA, 12.0%, 6/20/12 602,450
NOK 87,000,000 Petromena AS, 9.75%, 5/24/12 (144A) 7,117,835
NOK 16,500,000 11.65 Sevan Drilling, Floating Rate Note, 12/7/12 1,718,098
--------------
$ 16,038,183
- -------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 2.0%
6,910,000 Complete Production Service, 8.0%, 12/15/16 $ 4,698,800
4,200,000 10.5 Nexus, Floating Rate Note, 3/7/12 2,730,000
NOK 32,500,000 PetroJack AS, 11.0%, 4/12/10 3,384,133
1,900,000 Petroprod, Ltd., 10.85%, 5/24/13 1,045,000
1,500,000 8.79 Petroprod, Ltd., Floating Rate Note, 1/12/12 825,000
1,400,000 5.78 Sevan Marine ASA, Floating Rate Note, 5/14/13
(144A) 1,078,000
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- ---------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- ---------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- (continued)
$ 6,500,000 Sevan Marine ASA, 9.25%, 12/20/11 (144A) $ 4,875,000
NOK 20,000,000 11.99 Sevan Marine ASA, Floating Rate Note,
10/24/12 (144A) 1,874,289
8,200,000 Skeie Drilling And Production, 11.25%, 3/8/13 4,510,000
--------------
$ 25,020,222
- ---------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 3.9%
EURO 2,550,000 Chesapeake Energy, 6.25%, 1/15/17 $ 1,952,357
4,270,000 Harvest Operations Corp., 7.875%, 10/15/11 3,063,725
7,075,000 Hilcorp Energy Co., 9.0%, 6/1/16 (144A) 5,164,750
6,500,000 Norse Energy ASA, 10.0%, 7/13/10 870,206
11,203,000 Norse Energy ASA, 6.5%, 7/14/11 (144A) 7,281,950
55,500,000 Norwegian Energy Co., 11.0%, 7/13/10 6,191,847
NOK 48,000,000 PA Resources AB, 8.75%, 3/10/10 5,712,118
6,345,000 Parallel Petroleum Corp., 10.25%, 8/1/14 4,203,563
2,150,000 Petroquest Energy, Inc., 10.375%, 5/15/12 1,623,250
4,770,000 Quicksilver Resources, Inc., 7.125%, 4/1/16 (c) 3,052,800
585,000 Range Resources Corp., 7.5%, 5/15/16 476,775
6,105,000 Sandridge Energy, Inc., 8.0%, 6/1/18 4,059,825
5,330,000 Sandridge Energy, Inc., 8.625, 4/1/15 3,517,800
1,680,000 7.51 Sandridge Energy, Inc., Floating Rate Note, 4/1/14 1,342,218
--------------
$ 48,513,184
- ---------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.6%
11,865,000 Aventine Renewable Energy, Inc., 10.0%, 4/1/17 (c) $ 2,966,250
10,000,000 Verasun Energy Corp., 9.375%, 6/1/17 (c) 850,000
7,695,000 Verasun Energy Corp., 9.875%, 12/15/12 (c) 3,154,950
--------------
$ 6,971,200
- ---------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.8%
5,540,000 8.38 Enterprise Products, Floating Rate Note, 8/1/66 $ 4,113,450
2,165,000 7.20 Southern Union Co., 7.2%, 11/1/66 1,342,991
6,030,000 7.00 Teppco Partners LP, Floating Rate Note, 6/1/67 4,151,329
--------------
$ 9,607,770
--------------
Total Energy $ 112,561,025
- ---------------------------------------------------------------------------------------------------------
MATERIALS -- 10.3%
Aluminum -- 1.5%
14,095,000 CII Carbon LLC, 11.125%, 11/15/15 $ 12,967,400
8,750,000 6.83 Noranda Aluminum Acquisition Corp., Floating Rate
Note, 5/15/15 3,937,500
3,530,000 8.58 Noranda Aluminum Holding Corp., Floating Rate
Note, 11/15/14 1,059,000
--------------
$ 17,963,900
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 21
Schedule of Investments | 10/31/08 (continued)
- ---------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- ---------------------------------------------------------------------------------------------------------
Commodity Chemicals -- 1.3%
$ 13,825,000 Basell Finance Co., 8.1%, 3/15/27 (144A) $ 3,940,125
10,395,000 Georgia Gulf Corp, 10.75%, 10/15/16 (c) 2,702,700
5,861,000 Georgia Gulf Corp., 9.5%, 10/15/14 2,461,620
4,100,000 Hexion US Fin/Nova Scotia, 9.75%, 11/15/14 2,603,500
2,800,000 LPG International, Inc., 7.25%, 12/20/15 2,296,000
3,320,000 Nell AF Sarl, 8.375%, 8/15/15 (144A) 1,398,041
500,000 Nell AF Sarl, 8.375%, 8/15/15 (144A) 175,000
--------------
$ 15,576,986
- ---------------------------------------------------------------------------------------------------------
Construction Materials -- 1.2%
15,675,000 AGY Holding Corp., 11.0%, 11/15/14 $ 11,050,875
6,800,000 U.S. Concrete, Inc., 8.375%, 4/1/14 4,250,000
--------------
$ 15,300,875
- ---------------------------------------------------------------------------------------------------------
Diversified Chemical -- 0.5%
EURO 14,775,000 Ineos Group Holdings Plc, 7.875%, 2/15/16 (144A) $ 6,504,508
- ---------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.7%
14,760,000 Algoma Acquisition Corp., 9.875%, 6/15/15 (144A) $ 9,741,600
7,910,000 FMG Finance Pty, Ltd., 10.625%, 9/1/16 (144A) 5,418,350
2,000,000 Glencore Finance Europe SA, 8.0%, 2/28/49 700,000
6,330,000 New World Resources BV, 7.375%, 5/15/15 (144A) 4,668,737
--------------
$ 20,528,687
- ---------------------------------------------------------------------------------------------------------
Forest Products -- 0.1%
795,953 Ainsworth Lumber Co., Ltd., 11.0%,
7/29/15 (144A) (c) $ 557,167
1,250,000 Sino Forest Corp., 9.125%, 8/17/11 812,500
--------------
$ 1,369,667
- ---------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 1.2%
3,758,000 AEP Industries, Inc., 7.875%, 3/15/13 (c) $ 2,254,800
EURO 4,995,000 Consol Glass, Ltd., 7.625%, 4/15/14 (144A) 3,123,198
EURO 10,100,000 Impress Metal Packaging Holding BV, 9.25%,
9/15/14 (144A) 7,281,783
6,520,000 Vitro Sab De Cv, 9.125%, 2/1/17 2,037,500
--------------
$ 14,697,281
- ---------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.8%
7,530,000 Graphic Packaging Co., 9.5%, 8/15/13 (c) $ 5,158,050
10,400,000 Pioneer Natural Resources Co., 10.0%, 6/1/13 5,200,000
--------------
$ 10,358,050
- ---------------------------------------------------------------------------------------------------------
Paper Products -- 1.1%
18,420,000 Exopack Holding Corp., 11.25%, 2/1/14 $ 14,183,400
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- ---------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- ---------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.4%
$ 3,005,000 Chemtura Corp., 6.875%, 6/1/16 $ 1,878,125
EURO 6,175,000 Kronos International, Inc., 6.5%, 4/15/13 2,757,864
--------------
$ 4,635,989
- ---------------------------------------------------------------------------------------------------------
Steel -- 0.5%
EURO 11,800,000 Bulgaria Steel Finance, 12.0%, 5/4/13 (f) $ 2,258,610
3,500,000 Evraz Group SA., 8.875%, 4/24/13 (144A) 1,505,000
2,670,000 Evraz Group SA, 9.5%, 4/24/18 (144A) (c) 1,121,400
3,035,000 Ryerson, Inc., 12.0%, 11/1/15 (144A) $ 2,063,800
--------------
$ 6,948,810
--------------
Total Materials $ 128,068,153
- ---------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 9.1%
Aerospace & Defense -- 0.5%
8,540,000 Aeroflex, Inc., 11.75%, 2/15/15 (144A) $ 5,978,000
- ---------------------------------------------------------------------------------------------------------
Building Products -- 0.4%
11,515,000 Asia Aluminum Holdings, Ltd., 8.0%,
12/23/11 (144A) $ 3,454,500
1,047,000 6.722 C10 Capital SPV, Ltd., Floating Rate Note,
12/31/49 (c) 491,357
3,440,000 Industrias Unidas SA, 11.5%, 11/15/16 (144A) 791,200
1,500,000 Panolam Industries International Inc., 10.75%,
10/1/13 (c) 900,000
--------------
$ 5,637,057
- ---------------------------------------------------------------------------------------------------------
Construction & Engineering -- 1.3%
9,370,000 Desarrollos Metropolitan LLC, 10.875%, 5/9/17
(144A) $ 1,686,600
2,625,000 Dycom Industries, Inc., 8.125%, 10/15/15 1,771,875
9,125,000 Esco Corp., 8.625%, 12/15/13 (144A) 7,300,000
6,460,000 Mastec, Inc., 7.625%, 2/1/17 5,168,000
--------------
$ 15,926,475
- ---------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 1.9%
5,545,000 Accuride Corp., 8.5%, 2/1/15*(c) $ 2,218,000
3,840,000 American Railcar Industries, Inc., 7.5%, 3/1/14 3,033,600
12,820,000 Commercial Vehicle Group, 8.0%, 7/1/13 8,204,800
3,830,000 Greenbrier Co., Inc., 8.375%, 5/15/15 2,920,375
7,830,000 Titan Wheel International, Inc., 8.0%, 1/15/12 6,968,700
--------------
$ 23,345,475
- ---------------------------------------------------------------------------------------------------------
Electrical Component & Equipment -- 0.5%
8,021,284 Ormat Funding Corp., 8.25%, 12/30/20 $ 6,417,027
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 23
Schedule of Investments | 10/31/08 (continued)
- ---------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Heavy Electrical Equipment -- 1.5%
GBP 1,068,594 Altra Industrial Motion Inc., 11.25%, 2/15/13 $ 1,880,343
$ 19,000,000 Altra Industrial Motion Inc., 9.0%, 12/1/11 17,100,000
--------------
$ 18,980,343
- ---------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 1.0%
9,631,847 AAC Group Holding Corp., 14.75%, 10/1/12 (PIK) $ 9,150,255
5,322,000 Indalex Holding Corp., 11.5%, 2/1/14 1,703,040
2,445,000 Park-Ohio Industries, Inc., 8.375%, 11/15/14 1,430,325
--------------
$ 12,283,620
- ---------------------------------------------------------------------------------------------------------
Industrial Machinery -- 1.1%
12,015,000 Industrias Metalurgicas Pescar, 11.25%, 10/22/14 $ 5,887,350
11,965,000 Mueller Water Products Inc., 7.375%, 6/1/17 7,837,075
--------------
$ 13,724,425
- ---------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.9%
3,730,000 Blaze Recycling & Metals LLC, 10.875%,
7/15/12 (144A) $ 3,170,500
9,100,000 Intcomex, Inc., 11.75%, 1/15/11 8,030,750
--------------
$ 11,201,250
--------------
Total Capital Goods $ 113,493,672
- ---------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 1.7%
Commercial Printing -- 0.3%
4,910,000 Sheridan Acquisition Corp., 10.25%, 8/15/11 $ 4,075,300
- ---------------------------------------------------------------------------------------------------------
Diversified Commercial Services -- 0.5%
12,930 Msx International Inc., 12.5%, 4/1/12 (144A) $ 5,818,500
- ---------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.9%
8,690,000 Aleris International, Inc., 10.0%, 12/15/16 (c) $ 2,824,250
2,110,000 Aleris International, Inc., 9.0%, 12/15/14 727,950
1,619,000 Clean Harbors, Inc., 11.25%, 7/15/12 (144A) 1,665,546
EURO 3,022,531 New Reclamation Group, 8.125%, 2/1/13 (144A) 1,774,175
4,750,000 Waste Services, Inc., 9.5%, 4/15/14 3,800,000
--------------
$ 10,791,921
--------------
Total Commercial Services & Supplies $ 20,685,721
- ---------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.8%
Air Freight & Couriers -- 0.5%
6,220,000 Ceva Group Plc, 10.0%, 12/1/16 (144A) $ 2,341,425
4,700,000 Ceva Group Plc, 10.0%, 9/1/14 (144A) 3,384,000
--------------
$ 5,725,425
- ---------------------------------------------------------------------------------------------------------
Airlines -- 0.0%
1,306,888 Continental Airline, Inc., 8.499%, 5/1/11 $ 1,228,474
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- -----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- -----------------------------------------------------------------------------------------------------------
Marine -- 0.2%
$ 4,390,000 Blt Finance Bv, 7.5%, 5/15/14 (144A) $ 1,097,500
1,600,000 8.67 DP Producer AS, Floating Rate Note, 12/5/11 (144A) 800,000
--------------
$ 1,897,500
- -----------------------------------------------------------------------------------------------------------
Railroads -- 0.1%
1,905,000 TFM SA De CV, 9.375%, 5/1/12 $ 1,609,725
--------------
Total Transportation $ 10,461,124
- -----------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 2.5%
Auto Parts & Equipment -- 2.2%
9,335,000 Allison Transmission, 11.25%, 11/1/15 (144A)*(c) $ 4,947,550
4,500,000 Hawk Corp., 8.75%, 11/1/14 4,528,125
13,040,000 Lear Corp., 8.75%, 12/1/16 4,824,800
16,550,000 0.00 Stanadyne Corp., Floating Rate Note, 2/15/15 9,268,000
4,265,000 Stanadyne Corp., 10.0%, 8/15/14 3,284,050
2,090,000 Tenneco Automotive, Inc., 8.625%, 11/15/14 (c) 987,525
--------------
$ 27,840,050
- -----------------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.3%
8,600,000 Cooper Standard Automotive, Inc., 8.375%,
12/15/14 $ 3,612,000
--------------
Total Automobiles & Components $ 31,452,050
- -----------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.8%
Homebuilding -- 0.2%
1,600,000 Meritage Homes Corp., 6.25%, 3/15/15 $ 820,000
2,620,000 Urbi Desarrollos Urbanos, 8.5%, 4/19/16 (144A) 1,834,000
--------------
$ 2,654,000
- -----------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 0.5%
1,730,000 Visant Holding Corp., Step Coupon, 12/1/13 $ 1,193,700
11,165,000 Yankee Acquisition Corp., 9.75%, 2/15/17 (c) 5,540,631
--------------
$ 6,734,331
- -----------------------------------------------------------------------------------------------------------
Textiles -- 0.1%
1,410,000 Invista, 9.25%, 5/1/12 (144A) $ 1,170,300
--------------
Total Consumer Durables & Apparel $ 10,558,631
- -----------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 3.5%
Casinos & Gaming -- 2.3%
9,750,000 Buffalo Thunder Revenue Authority, 9.375%,
12/15/14 $ 3,412,500
EURO 8,365,000 Codere Finance SA, 8.25%, 6/15/15 (144A) 4,910,115
7,610,000 Fontainebleau Las Vegas, 10.25%, 6/15/15 (144A) 1,027,350
1,535,000 Galaxy Entertainment Finance Co., Ltd., 9.875%,
12/15/12 (144A) 583,300
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 25
Schedule of Investments | 10/31/08 (continued)
- ------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- ------------------------------------------------------------------------------------------------------------
Casinos & Gaming -- (continued)
$ 6,260,000 Little Traverse Bay Odawa Inn, 10.25%,
2/15/14 (144A) $ 4,084,650
EURO 6,925,000 8.25 Lottomatica S.p.A., Floating Rate Note, 3/31/66
(144A) 5,317,012
4,210,000 Manshantucket Pequot Tribe, 8.5%, 11/15/15 (144A) 2,315,500
EURO 3,265,000 Peermont Global, Ltd., 7.75%, 4/30/14 (144A) 1,916,500
5,990,000 Shingle Springs Tribal, 9.375%, 6/15/15 (144A) 2,935,100
6,505,000 Station Casinos, Inc., 6.625%, 3/15/18 (c) 585,450
1,995,000 Trump Entertainment Resorts Inc., 8.5%, 6/1/15 (c) 513,713
--------------
$ 27,601,190
- ------------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.9%
17,350,000 Pegasus Solutions, Inc., 10.5%, 4/15/15 (144A) $ 11,971,500
- ------------------------------------------------------------------------------------------------------------
Leisure Facilities -- 0.3%
4,805,000 Firekeepers Development Authority, 13.875%,
5/1/15 (144A) $ 3,411,550
1,000,000 0.00 HRP Myrtle Beach, Floating Rate Note, 4/1/12 (144A) 447,500
--------------
$ 3,859,050
--------------
Total Consumer Services $ 43,431,740
- ------------------------------------------------------------------------------------------------------------
MEDIA -- 1.2%
Broadcasting -- 1.2%
4,508,000 CCH I LLC, 11.0%, 10/1/15 (c) $ 2,028,600
6,620,000 10.38 Inmarsat Finance Plc, Floating Rate Note, 11/15/12 5,262,900
500,000 Intel, 11.5%, 6/15/16 (144A) 420,000
2,345,000 Kabel Deutschland GMBH, 10.625%, 7/1/14 1,969,800
2,785,000 Telesat Canada, 11.0%, 11/1/15 1,671,000
4,260,000 Telesat Canada, 12.5%, 11/1/17 2,641,200
6,075,000 Univision Communications Inc., 9.75%,
3/15/15 (PIK) (144A) (c) 1,245,375
--------------
$ 15,238,875
--------------
Total Media $ 15,238,875
- ------------------------------------------------------------------------------------------------------------
RETAILING -- 2.1%
Apparel Retail -- 0.0%
EURO 560,000 10.46 EDCON Holdings Property, Ltd., Floating Rate Note,
6/15/15 (144A) $ 207,231
- ------------------------------------------------------------------------------------------------------------
Distributors -- 0.7%
8,000,000 Marfrig Overseas, Ltd., 9.625%, 11/16/16 (144A) $ 3,840,000
10,100,000 Minerva Overseas, Ltd., 9.5%, 2/1/17 (144A) (c) 4,545,000
--------------
$ 8,385,000
- ------------------------------------------------------------------------------------------------------------
Home Improvement Retail -- 0.1%
3,240,000 Kar Holdings, Inc., 10.0%, 5/1/15 (144A) (c) $ 1,830,600
- ------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- -----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- -----------------------------------------------------------------------------------------------------------
Internet Retail -- 0.7%
$ 10,020,000 Ticketmaster, 10.75%, 8/1/16 (144A) $ 8,416,800
- -----------------------------------------------------------------------------------------------------------
Specialty Stores -- 0.6%
9,555,000 Sally Holdings LLC, 10.5%, 11/15/16 (c) $ 6,975,150
--------------
Total Retailing $ 25,814,781
- -----------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 0.7%
Drug Retail -- 0.2%
4,410,000 Duane Reade, Inc., 9.75%, 8/1/11 (c) $ 2,646,000
- -----------------------------------------------------------------------------------------------------------
Food Distributors -- 0.5%
5,050,000 Arantes International, Ltd., 10.25%, 6/19/13 $ 3,030,000
5,300,000 Independencia International, Ltd., 9.875%,
5/15/15 (144A) 2,438,000
--------------
$ 5,468,000
--------------
Total Food & Drug Retailing $ 8,114,000
- -----------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.5%
Agricultural Products -- 0.2%
7,260,000 Cosan SA Industria, 8.25%, 2/15/49 (144A) (c) $ 3,121,800
- -----------------------------------------------------------------------------------------------------------
Brewers -- 0.0%
120,000 Cia Brasileira de Bebida, 8.75%, 9/15/13 $ 112,800
- -----------------------------------------------------------------------------------------------------------
Distillers & Vintners -- 0.4%
EURO 505,649 Belvedere, 0.0%, 4/11/14 (f) $ 373,655
EURO 3,286,800 Belvedere, 7.692%, 4/11/14 (f) 2,538,703
EURO 3,810,000 0.00 Belvedere, Floating Rate Note, 5/15/13 (144A) (f) 1,458,526
--------------
$ 4,370,884
- -----------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 0.4%
6,360,000 Bertin, Ltd., 10.25%, 10/5/16 (144A) (c) $ 2,862,000
7,158,000 Fabrica de Productos, 9.25%, 2/23/17 (144A) 1,789,500
--------------
$ 4,651,500
- -----------------------------------------------------------------------------------------------------------
Tobacco -- 0.5%
1,125,000 Alliance One, 11.0%, 5/15/12 $ 950,625
6,415,000 Alliance One International, Inc., 8.5%, 5/15/12 4,939,550
--------------
$ 5,890,175
--------------
Total Food, Beverage & Tobacco $ 18,147,159
- -----------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.2%
Household Products -- 0.2%
3,980,000 Central Garden, 9.125%, 2/1/13 (c) $ 2,427,800
--------------
Total Household & Personal Products $ 2,427,800
- -----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 27
Schedule of Investments | 10/31/08 (continued)
- --------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- --------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.6%
Health Care Equipment -- 0.9%
$ 7,435,000 Accellent, Inc., 10.5%, 12/1/13 $ 5,501,900
EURO 3,615,000 Pts Acquisition, 9.75%, 4/15/17 1,153,231
3,460,000 Universal Hospital Services Inc., 8.5%, 6/1/15 2,768,000
1,630,000 6.30 Universal Hospital Services Inc., Floating Rate Note,
6/1/15 1,108,400
--------------
$ 10,531,531
- --------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.2%
2,200,000 Community Health Systems Inc., 8.875%, 7/15/15 $ 1,842,500
1,485,000 Hanger Orthopedic Group., 10.25%, 6/1/14 1,351,350
--------------
$ 3,193,850
- --------------------------------------------------------------------------------------------------------------
Health Care Services -- 1.7%
9,095,000 Dasa Finance Corp., 8.75%, 5/29/18 (144A) $ 5,024,988
3,665,000 Rural/Metro Corp., 9.875%, 3/15/15 2,986,975
7,125,000 Surgical Care Affiliates Inc., 10.0%, 7/15/17 (144A) 4,488,750
9,510,000 Surgical Care Affiliates Inc., 8.875%, 7/15/15 (144A)
(PIK) 7,132,500
--------------
$ 19,633,213
- --------------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.3%
5,050,000 Biomet, Inc., 10.375%, 10/15/17 $ 4,204,125
- --------------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.5%
7,350,000 Multiplan, Inc., 10.375%, 4/15/16 (144A) $ 6,762,000
--------------
Total Health Care Equipment & Services $ 44,324,719
- --------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 1.4%
Biotechnology -- 0.1%
1,336,000 Warner Chilcott Corp., 8.75%, 2/1/15 $ 1,175,680
- --------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 1.3%
1,100,000 AMR Holdco/Emcar Holdco, 10.0%, 2/15/15 $ 1,056,000
13,225,000 Angiotech Pharmaceutical Inc., 7.75%, 4/1/14 (c) 5,554,500
7,875,000 Phibro Animal Health Corp., 10.09%, 8/1/13 (144A) 6,693,750
3,530,000 Phibro Animal Health Corp., 13.09%, 8/1/14 (144A) 3,000,500
--------------
$ 16,304,750
--------------
Total Pharmaceuticals & Biotechnology $ 17,480,430
- --------------------------------------------------------------------------------------------------------------
BANKS -- 3.8%
Diversified Banks -- 3.3%
4,380,000 ALB Finance BV, 9.25%, 9/25/13 (144A) (c) $ 1,533,000
5,045,000 ALB Finance BV, 9.25%, 9/25/13 (c) 1,765,750
9,200,000 ALB Finance BV, 9.375%, 4/19/28 1,380,000
5,200,000 4.68 Alfa Div Payment Rights Finance, Floating Rate Note,
12/15/11 (144A) 3,261,440
6,675,000 ATF Bank JSC, 9.25%, 4/12/12 (144A)+ 3,858,818
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- -------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- -------------------------------------------------------------------------------------------------------
Diversified Banks -- (continued)
$ 3,360,000 ATF Bank, 9.0%, 5/11/16 (144A) $ 1,440,970
1,500,000 ATF Capital BV, 10.0%, 12/31/49 600,600
4,530,000 ATF Capital BV, 9.25%, 2/21/14 (144A) 2,400,900
2,755,000 Banco Macro SA, 8.5%, 2/1/17 1,239,750
2,870,000 Banco Macro SA, 9.75%, 12/18/36 717,500
6,230,000 10.19 Banco Macro SA, Floating Rate Note, 6/7/12 2,492,000
5,000,000 8.25 BTA Finance Luxembourg, 8.25%, 12/31/49 697,250
5,380,000 Centercredit International, 8.625%, 1/30/14 (144A) 1,990,600
3,750,000 9.20 Kazkommerts Finance 2 BV, Floating Rate
Note, 11/29/49 862,500
1,400,000 Kazkommerts International BV, 8.0%, 11/3/15 602,000
6,880,000 PetroCommerce Finance, 8.75%, 12/17/09 5,515,469
2,465,000 Russian Stand Bank, 7.5%, 10/7/10 (144A) 862,750
2,960,000 Sibacademfinance, 7.0%, 5/21/10 1,699,699
4,300,000 Sibacademfinance Plc, 9.0%, 5/12/09 (144A) (c) 4,323,693
3,410,000 Temir Capital, 9.5%, 5/21/14 716,100
7,070,000 Turanalem Finance BV, 8.5%, 2/10/15 (144A) (c) 2,615,900
--------------
$ 40,576,689
- -------------------------------------------------------------------------------------------------------
Regional Banks -- 0.2%
2,650,000 Wells Fargo Capital, 9.75%, 12/29/49 (c) $ 2,570,500
- -------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.3%
5,850,000 Hipotecaria Su Casita SA, 8.5%, 10//4/16 (144A) (c) $ 4,095,000
--------------
Total Banks $ 47,242,189
- -------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.7%
Consumer Finance -- 0.5%
4,955,000 Ford Motor Credit Co., 5.7%, 1/15/10*(c) $ 3,678,087
3,295,000 Ford Motor Credit Co., 8.0%, 12/15/16 (c) 1,804,579
500,000 General Motors Acceptance Corp., 6.75%, 12/1/14 252,498
--------------
$ 5,735,164
- -------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 1.1%
5,480,000 Egidaco Investments Ltd., 18.0%, 6/24/11 $ 6,293,481
16,165,000 5.79 Goldman Sachs Capital, Floating Rate Note,
12/29/49 7,423,388
--------------
$ 13,716,869
- -------------------------------------------------------------------------------------------------------
Multi-Sector Holding -- 0.1%
2,505,000 Zlomrex International SA, 8.5%, 2/1/14 (144A) $ 767,162
- -------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 1.6%
5,000,000 8.4 C VAR, Floating Rate Note, Perpetual $ 3,475,500
1,000,000 8.56 Green Valley, Ltd., Floating Rate Note, 1/10/11
(144A) 1,232,154
3,675,000 Mandra Forestry, 12.0%, 5/15/13 (144A) 2,572,500
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 29
Schedule of Investments | 10/31/08 (continued)
- ------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- ------------------------------------------------------------------------------------------------------
Diversified Financial Services -- (continued)
$ 5,940,000 Mirant JPSCO Finance, Ltd., 11.0%, 7/6/16 (144A) $ 5,108,400
975,000 TNK-BP Finance SA, 6.625%, 3/20/17 (144A) 409,500
15,400,000 TNK-BP Finance SA, 7.875%, 3/13/18 (144A) 6,776,000
--------------
$ 19,574,054
- ------------------------------------------------------------------------------------------------------
Specialized Finance -- 2.4%
11,305,000 Ace Cash Express, Inc., 10.25%, 10/1/14 (144A) $ 5,313,350
550,000 12.61 Foundation RE II, Ltd., Floating Rate Note, 1/8/09 535,700
860,000 Ipayment, Inc., 9.75%, 5/15/14 645,000
19,800,000 NCO Group, Inc., 11.875%, 11/15/14 13,464,000
11,870,000 7.68 NCO Group, Inc., Floating Rate Note, 11/15/13 8,071,600
1,010,000 19.42 Successor II, Ltd., Cat Bond, Floating Rate Note,
4/6/10 987,477
1,925,000 27.67 Successor II, Ltd., Cat Bond, Floating Rate Note,
4/6/10 1,856,663
--------------
$ 30,873,790
--------------
Total Diversified Financials $ 70,667,039
- ------------------------------------------------------------------------------------------------------
INSURANCE -- 4.5%
Insurance Brokers -- 1.5%
11,140,000 Alliant Holdings, Inc., 11.0%, 5/1/15 (144A) $ 9,023,400
13,710,000 Hub International Holdings, 10.25%, 6/15/15 (144A) 8,637,300
2,270,000 Usi Holdings Corp., 9.75%, 5/15/15 (144A) 1,430,100
--------------
$ 19,090,800
- ------------------------------------------------------------------------------------------------------
Life & Health Insurance -- 0.3%
3,466,000 Presidential Life Corp., 7.875%, 2/15/09 $ 3,292,700
- ------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.8%
3,320,000 7.00 Liberty Mutual Group, 7.0%, 3/15/37 (144A) $ 1,789,281
10,000,000 10.75 Liberty Mutual Group, Floating Rate Note,
6/15/58 (144A) 5,250,000
2,975,100 Sul America Partecipacoe, 8.625%, 2/15/12 (144A) 2,528,835
--------------
$ 9,568,116
- ------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.3%
1,875,000 7.19 Blue Fin, Ltd., Floating Rate Note, 4/10/12 $ 1,674,000
2,000,000 Kingsway America, Inc., 7.5%, 2/1/14 1,544,880
985,000 14.00 MBIA, Inc., Floating Rate Note, 1/15/33 (144A) (c) 531,900
--------------
$ 3,750,780
- ------------------------------------------------------------------------------------------------------
Reinsurance -- 1.6%
1,375,000 15.20 Atlas Reinsurance Plc, Floating Rate Note, 1/10/11,
Cat Bond (144A) $ 1,714,741
750,000 8.92 Caelus Re, Ltd., Floating Rate Note, 6/7/11 717,525
1,750,000 18.03 Carillon, Ltd., Floating Rate Note, 1/10/11 1,681,400
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- -----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- -----------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
$ 2,750,000 6.91 Foundation RE, Ltd., Floating Rate Note,
11/24/08 (144A) $ 2,729,650
2,600,000 12.03 Globecat, Ltd., Cat Bond, Floating Rate Note,
1/2/13 (144A) 2,562,560
375,000 8.78 Globecat, Ltd., Cat Bond, Floating Rate Note,
1/2/13 (144A) 369,525
2,570,000 7.20 Muteki, Ltd., Cat Bond, Floating Rate Note, 5/24/11 2,455,635
900,000 9.81 Mystic Re, Floating Rate Note, 5/31/09 895,050
500,000 7.07 Nelson Re, Ltd., Floating Rate Note, 6/6/11 490,150
435,000 7.45 Newton Re, Ltd., Cat Bond, Floating Rate Note,
12/24/10 (144A) 431,520
745,000 9.75 Newton Re, Ltd., Cat Bond, Floating Rate Note,
12/24/10 (144A) 718,255
3,665,000 Platinum Underwriters HD, 7.5%, 6/1/17 3,448,930
1,900,000 14.15 Residential Re, Floating Rate Note, 6/6/11 1,854,210
500,000 12.68 Residential Reinsurance Cat Bond, Floating Rate
Note, 6/5/09 495,500
--------------
$ 20,564,651
--------------
Total Insurance $ 56,267,047
- -----------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.4%
Diversified Real Estate Activities -- 0.3%
9,090,000 BR Malls International Finance, 9.75%, 12/31/49,
Perpetual (144A) $ 4,181,400
- -----------------------------------------------------------------------------------------------------
Real Estate Development -- 0.3%
895,000 China Properties Group, 9.125%, 5/4/14 (144A) $ 313,250
7,285,000 Greentown China Holdings, 9.0%, 11/8/13 (144A) 2,258,350
10,345,000 Neo-China Group Holdings, 9.75%, 7/23/14 1,448,300
--------------
$ 4,019,900
- -----------------------------------------------------------------------------------------------------
Real Estate Operating Companies -- 0.7%
6,750,000 Alto Palermo SA, 7.875%, 5/11/17 (144A) $ 2,025,000
6,840,000 10.42 Alto Palermo SA, Floating Rate Note, 6/11/12 (144A) 3,603,312
8,405,000 Inversiones Y Rep, 8.5%, 2/2/17 (144A) (c) 3,277,950
--------------
$ 8,906,262
--------------
Total Real Estate $ 17,107,562
- -----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.8%
Application Software -- 0.5%
2,195,000 Open Solutions, Inc., 9.75%, 2/15/15 (144A) $ 932,875
9,590,000 Vangent, Inc., 9.625%, 2/15/15 5,658,100
--------------
$ 6,590,975
- -----------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.9%
18,075,000 First Data Corp., 9.875%, 9/24/15 (144A) $ 11,568,000
- -----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 31
Schedule of Investments | 10/31/08 (continued)
- -----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- -----------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.4%
$ 7,760,000 Activant Solutions, Inc., 9.5%, 5/1/16 $ 4,733,600
--------------
Total Software & Services $ 22,892,575
- -----------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.8%
Electronic Equipment & Instruments -- 0.1%
EURO 1,975,000 Vac Finanzierung BMGH, 9.25%, 4/15/16 (144A) $ 1,461,716
- -----------------------------------------------------------------------------------------------------------
Technology Distributors -- 0.7%
8,975,000 Da-Lite Screen Co., Inc., 9.5%, 5/15/11 $ 7,987,750
--------------
Total Technology Hardware & Equipment $ 9,449,466
- -----------------------------------------------------------------------------------------------------------
SEMICONDUCTORS -- 0.2%
Semiconductor Equipment -- 0.2%
2,735,000 Freescale Semiconductor, 9.125%, 12/15/14 (PIK) $ 998,275
4,750,000 6.65 Freescale Semiconductor, Floating Rate Note,
12/15/14 1,805,000
--------------
$ 2,803,275
--------------
Total Semiconductors $ 2,803,275
- -----------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 7.0%
Integrated Telecommunication Services -- 3.4%
17,340,000 Broadview Networks Holdings Inc., 11.375%,
9/1/12 (144A) $ 12,484,800
7,600,000 Digicel, Ltd., 9.25%, 9/1/12 (144A) 5,928,000
23,686,000 GC Impsat Holdings I Plc, 9.872%, 2/15/17
(144A) (c) 17,764,500
2,390,000 GCI, Inc., 7.25%, 2/15/14 1,912,000
5,050,000 Paetec Holdings, 9.5%, 7/15/15 (c) 2,865,875
980,000 Tele Norte Leste Participacoes, 8.0%, 12/18/13 784,000
--------------
$ 41,739,175
- -----------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 3.6%
EURO 10,380,000 Cell C Pty Ltd., 11.0%, 7/1/15 (144A) $ 9,030,600
10,285,000 Cricket Communications I, 9.375%, 11/01/14 (c) 8,356,563
EURO 2,900,000 10.96 Hellas Tel Finance, Floating Rate Note, 1/15/15
(144A) 1,073,159
11,215,000 Hughes Network System LLC, 9.5%, 4/15/14 9,532,750
1,950,000 Mobile Telesystems Finance SA, 8.0%, 1/28/12 (c) 1,248,000
2,350,000 Stratos Global Corp., 9.875%, 2/15/13 1,985,750
3,025,000 True Move Co., Ltd., 10.375%, 8/1/14 (144A) 1,058,750
18,455,000 True Move Co., Ltd., 10.75%, 12/16/13 (144A) 6,459,250
2,000,000 UBS (Vimpelcom), 8.375%, 10/22/11 (144A) 1,300,000
4,750,000 UBS (Vimpelcom), 8.25%, 5/23/16 (144A) 2,422,500
5,475,000 Vip Fin, 9.125%, 4/30/18 (144A) 2,829,069
--------------
$ 45,296,391
--------------
Total Telecommunication Services $ 87,035,566
- -----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- --------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- --------------------------------------------------------------------------------------------------------
UTILITIES -- 5.6%
Electric Utilities -- 2.4%
$ 16,885,000 Caiua Serv Electricidad, 11.125%, 4/2/49 (144A) $ 6,585,150
10,835,000 CIA Transporte Energia, 8.875%, 12/15/16 (144A) 3,467,200
1,409,492 FPL Energy National Wind, 6.125%, 3/25/19 (144A) 1,224,454
1,520,905 FPL Energy Wind Funding, 6.876%, 6/27/17 (144A) 1,418,244
12,000,000 1.33 Power Contract Financing LLC, Floating Rate Note,
2/5/10 (144A) 10,800,000
9,570,000 TXU Energy Co., 10.25%, 11/1/15 7,297,125
--------------
$ 30,792,173
- --------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.6%
18,547,000 Transport De Gas Del Sur, 7.875%, 5/14/17 (144A) $ 7,604,270
- --------------------------------------------------------------------------------------------------------
Independent Power Producer & Energy Traders -- 2.2%
6,507,000 AES Chivor, 9.75%, 12/30/14 (144A) (c) $ 5,404,064
10,600,000 Biofuel Energy, 19.0%, 6/7/12 8,480,000
13,990,000 Intergen NV, 9.0%, 6/30/17 11,192,000
1,590,536 Juniper Generation, 6.79%, 12/31/14 (144A) 1,695,283
--------------
$ 26,771,347
- --------------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.4%
5,860,000 NSG Holdings LLC, 7.75%, 12/15/25 (144A) $ 4,922,400
--------------
Total Utilities $ 70,090,190
- --------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $1,657,350,473) $ 985,814,789
- --------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 1.1%
CAPITAL GOODS -- 0.2%
Industrial Conglomerates -- 0.1%
3,590,000 CIA Latino Americano, 9.75%, 5/10/12 $ 2,154,000
--------------
Total Capital Goods $ 2,154,000
- --------------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.9%
ITL 1,450,000,000 Banco Nac De Desen Econo, 8.0%, 4/28/10 $ 878,967
BRL 10,350,000 Federal Republic of Brazil, 12.5%, 1/5/16 4,121,681
BRL 2,480,000 Republic of Brazil, 12.5%, 1/5/22 935,631
COP 2,510,000,000 Republic of Columbia, 11.75%, 3/1/10 1,064,514
COP 10,258,000,000 Republic of Columbia, 12.0%, 10/22/15 4,548,359
--------------
$ 11,549,152
--------------
Total Government $ 11,549,152
- --------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $15,986,514) $ 13,703,152
- --------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 33
Schedule of Investments | 10/31/08 (continued)
- --------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- --------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 0.8%
COMMERCIAL SERVICES & SUPPLIES -- 0.1%
Environmental & Facilities Services -- 0.1%
$ 4,400,000 10.76 Ohio Air Quality Development, Floating Rate
Note, 6/8/22 $ 880,000
--------------
Total Commercial Services & Supplies $ 880,000
- --------------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.7%
Municipal Airport -- 0.0%
15,000 New Jersey Economic Development Authority Special
Facility Revenue, 7.0%, 11/15/30 $ 9,670
- --------------------------------------------------------------------------------------------------------
Municipal School District -- 0.7%
8,875,000 12.00 Non-Profit PFD FDG TR I, Floating Rate Note, 9/15/37 $ 8,121,069
--------------
Total Government $ 8,130,739
- --------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $13,271,047) $ 9,010,739
- --------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN INTERESTS -- 6.3%**
ENERGY -- 0.2%
Integrated Oil & Gas -- 0.2%
3,720,000 8.00 Hudson Products Holdings, Inc., Term Loan,
8/24/15 $ 3,217,800
- --------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.0%
800,000 6.81 Venoco, Inc., Second Lien, 5/7/14 $ 608,000
--------------
Total Energy $ 3,825,800
- --------------------------------------------------------------------------------------------------------
MATERIALS -- 0.6%
Steel -- 0.6%
11,037,135 8.78 Niagara Corp., Term Loan, 6/29/14 $ 7,615,623
--------------
Total Materials $ 7,615,623
- --------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.3%
Construction & Engineering -- 0.2%
1,034,081 5.25 Custom Building Products, Term Loan, First Lien,
10/20/11 $ 806,583
3,150,000 8.0 Custom Building Products, Loan (Second Lien),
4/29/12 2,205,000
--------------
$ 3,011,583
- --------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.1%
1,193,761 7.70 Rental Service Corp., Second Lien, 11/21/13 $ 737,147
--------------
Total Capital Goods $ 3,748,730
- --------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.2%
Diversified Commercial Services -- 0.2%
4,100,000 6.01 J.G.Wentworth, First Lien, 3/1/14 $ 1,947,500
--------------
Total Commercial Services & Supplies $ 1,947,500
- --------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- --------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- --------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.2%
Air Freight & Couriers -- 0.2%
EURO 6,081,044 12.71 Louis Topco, Ltd., Term Loan, 6/1/17 $ 1,551,944
$ 295,802 6.76 TNT Logistics Plc, Additional Pre Funded Loan,
11/4/13 190,792
890,872 6.17 TNT Logistics Plc, U.S. Term Loan, 11/4/13 574,612
--------------
$ 2,317,348
--------------
Total Transportation $ 2,317,348
- --------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.0%
Homebuilding -- 0.0%
680,043 8.50 LandSource Communities Development, Roll Up
Facility, 2/13/13 $ 234,615
8,650,000 0.00 LandSource Communities Development, Facility Loan,
2/22/14 259,500
--------------
$ 494,115
--------------
Total Consumer Durables & Apparel $ 494,115
- --------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.5%
Casinos & Gaming -- 0.5%
4,938,412 6.55 Gateway Casinos & Entertainment, Term Advance,
7/16/14 $ 2,469,206
995,146 6.55 Gateway Casinos & Entertainment, Delayed Draw,
7/16/14 497,573
6,250,000 9.55 Gateway Casinos & Entertainment, Advance (Second
Lien) 7/16/14 3,083,334
--------------
$ 6,050,113
--------------
Total Consumer Services $ 6,050,113
- --------------------------------------------------------------------------------------------------------
MEDIA -- 0.2%
Cable & Satellite -- 0.2%
1,000,000 6.26 Charter Communications, Third Lien, 3/5/14 $ 653,334
1,409,350 5.47 Charter Communications, Term Loan B, 3/6/14 1,061,197
1,125,750 6.40 Knology, Inc., Term Loan, 4/30/12 816,169
--------------
$ 2,530,700
--------------
Total Media $ 2,530,700
- --------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.0%
Personal Products -- 0.0%
246,250 5.12 Brickman Holdings, Tranche B Term, 1/23/14 $ 193,306
--------------
Total Household & Personal Products $ 193,306
- --------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 35
Schedule of Investments | 10/31/08 (continued)
- ------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- ------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.6%
Health Care Equipment -- 0.2%
$ 2,933,438 6.31 Talecris Biotherapeutics Holdings, First Lien Term,
12/6/13 $ 2,618,094
- ------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.4%
7,510,000 7.75 Inverness Medical Innovations, Term Loan, 6/26/15 $ 5,257,000
--------------
Total Health Care Equipment & Services $ 7,875,094
- ------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.3%
Specialized Finance -- 0.3%
3,452,021 6.77 Ace Cash Express, Term Loan, 10/5/13 $ 2,450,935
1,123,774 7.41 NCO Financial System, Term B Advance, 5/15/13 969,255
--------------
$ 3,420,190
--------------
Total Diversified Financials $ 3,420,190
- ------------------------------------------------------------------------------------------------------
INSURANCE -- 1.0%
Insurance Brokers -- 0.5%
2,920,500 6.76 Alliant Holdings I, Inc., Term Loan, 8/21/14 $ 2,015,145
825,290 6.26 HUB International Holdings, Delaed Draw, 6/13/14 569,450
3,671,783 6.26 HUB International Holdings, Initial Term Loan,
6/13/14 2,533,530
--------------
$ 5,118,125
- ------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.5%
4,176,902 5.62 AmWins Group, Inc., Initial Term Loan, 6/11/13 $ 3,049,138
6,750,000 9.00 AmWins Group, Inc., Initial Term Loan, 6/11/13 4,252,500
--------------
$ 7,301,638
--------------
Total Insurance $ 12,419,763
- ------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.2%
Electronic Equipment & Instruments -- 1.2%
11,449,659 6.7 Huawei-3Com Co., Ltd., Tranche B Term, 9/28/12 $ 9,846,707
5,445,000 7.37 Scitor Corp., Term Loan, 9/28/14 4,818,825
--------------
$ 14,665,532
--------------
Total Technology Hardware & Equipment $ 14,665,532
- ------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.6%
Integrated Telecommunication Services -- 0.6%
716,921 6.77 Telesat Canda, U.S. Term II Loan, 10/24/14 $ 549,042
8,347,631 6.42 Telesat Canda, U.S. Term I Loan, 10/24/14 6,392,895
--------------
$ 6,941,937
--------------
Total Telecommunication Services $ 6,941,937
- ------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- -----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- -----------------------------------------------------------------------------------------------------
UTILITIES -- 0.4%
Independent Power Producer & Energy Traders -- 0.4%
$ 1,776,554 5.26 NRG Energy, Inc., Credit Linked, 2/1/13 $ 1,547,085
3,609,488 5.26 NRG Energy, Inc., Term Loan, 2/1/13 3,143,261
--------------
$ 4,690,346
--------------
Total Utilities $ 4,690,346
- -----------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $121,368,888) $ 78,736,097
- -----------------------------------------------------------------------------------------------------
Shares
- -----------------------------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.2%
ENERGY -- 0.2%
Oil & Gas Exploration & Production -- 0.2%
NOK 11,203,000 Norse Energy Corp ASA* $ 2,333,073
--------------
Total Energy $ 2,333,073
- -----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.0%
Diversified Financial Services -- 0.0%
3,250 Mandra Forestry-CW13, Warrants Expire, 5/15/13* $ 341,250
--------------
Total Diversified Financials $ 341,250
- -----------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.0%
Real Estate Development -- 0.0%
8,190,000 Neo-China Group Holdings Ltd Warrant -CW-12* $ 264,191
--------------
Total Real Estate $ 264,191
- -----------------------------------------------------------------------------------------------------
UTILITIES -- 0.0%
Independent Power Producer & Energy Traders -- 0.0%
498,836 Biofuel Energy ASA* $ --
--------------
Total Utilities $ --
- -----------------------------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $1,646,063) $ 2,938,514
- -----------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 6.8%
Security Lending Collateral -- 6.8% (d)
Certificates of Deposit:
1,871,028 Abbey National Plc, 3.15%, 8/13/09 $ 1,871,028
1,871,028 Banco Santander NY, 3.09%, 12/22/08 1,871,028
677,295 Bank of Scotland NY, 2.89%, 11/4/08 677,295
1,126,003 Bank of Scotland NY, 2.96%, 11/3/08 1,126,003
2,997,031 Bank of Scotland NY, 3.01%, 6/5/09 2,997,031
1,871,028 Bank of Scotland NY, 3.06%, 3/5/09 1,871,028
3,378,009 Barclays Bank, 2.85%, 5/27/09 3,378,009
372,512 Calyon NY, 4.62%, 1/16/09 372,512
220,121 Calyon NY, 4.62%, 1/16/09 220,121
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 37
Schedule of Investments | 10/31/08 (continued)
- --------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
- --------------------------------------------------------------------------------------------------
Security Lending Collateral -- (continued)
$ 3,750,522 CBA, 4.87%, 7/16/09 $ 3,750,522
3,378,009 DNB NOR Bank ASA NY, 3.04%, 6/5/09 3,378,009
3,437,273 Intesa SanPaolo S.p.A., 2.88%, 5/22/09 3,437,273
3,378,009 New York Life Global, 2.99%, 9/4/09 3,378,009
177,790 NORDEA NY, 3.68%, 12/1/08 177,790
220,121 NORDEA NY, 4.13%, 4/9/09 220,121
2,810,775 Royal Bank of Canada NY, 3.0%, 8/7/09 2,810,775
372,512 Skandinavian Enskilda Bank NY, 2.79%, 2/13/09 372,512
3,750,522 Societe Generale, 3.29%, 9/4/09 3,750,522
3,378,009 Svenska Bank NY, 4.61%, 7/8/09 3,378,009
3,750,522 U.S. Bank NA, 2.91%, 8/24/09 3,750,522
--------------
$ 42,788,119
- --------------------------------------------------------------------------------------------------
Commercial Paper:
3,682,792 American Honda Finance Corp., 4.95%, 7/14/09 $ 3,682,792
1,871,028 Bank of Nova Scotia, 3.14%, 5/5/09 1,871,028
355,580 BBVA U.S., 2.83%, 3/12/09 355,580
372,512 Met Life, Inc., 2.7%, 11/3/08 372,512
1,126,003 John Deere Capital Corp., 2.82%, 12/12/08 1,126,003
3,750,522 Monumental Global Funding, Ltd., 3.2%, 8/17/09 3,750,522
3,742,056 HSBC Bank, Inc., 3.2%, 8/14/09 3,742,056
1,684,772 General Electric Capital Corp., 4.25%, 1/5/09 1,684,772
1,871,028 General Electric Capital Corp., 2.86%, 3/16/09 1,871,028
1,871,028 CME Group, Inc., 3.0%, 8/6/09 1,871,028
694,227 IBM, 2.85%, 2/13/09 694,227
1,871,028 IBM, 3.03%, 9/25/09 1,871,028
3,378,009 Met Life Global Funding, 3.19%, 6/12/09 3,378,009
3,183,287 Westpac Banking Corp., 2.34%, 6/1/09 3,183,285
--------------
$ 29,453,870
- --------------------------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
7,501,043 ABN Amro, 0.2%, 11/3/08 $ 7,501,043
914,348 Barclays Capital Markets, 0.2%, 11/3/08 914,349
--------------
$ 8,415,392
- --------------------------------------------------------------------------------------------------
Money Market Mutual Fund:
3,750,522 JP Morgan, U.S. Government Money Market Fund $ 3,750,522
- --------------------------------------------------------------------------------------------------
Other:
253,986 ABS CFAT 2008-A A1, 3.005%, 4/27/09 $ 253,986
--------------
Total Securities Lending Collateral $ 84,661,889
- --------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENT
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
(Cost $84,661,889) $ 84,661,889
- --------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 103.2%
(Cost $2,043,721,078) (a) (e) $1,283,231,815
- --------------------------------------------------------------------------------
OTHER ASSETS AND
LIABILITIES -- (3.2)% $ (39,591,684)
- --------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $1,243,640,131
================================================================================
* Non-income producing security.
+ Investment deemed to be an affiliate of the Fund.
(PIK) Represents a pay in kind security.
(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 $465,461,553
or 37.4% of total net assets.
** Senior floating rate loan interests in which the Portfolio 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.
(a) At October 31, 2008, the net unrealized loss on investments based on cost
for federal income tax purposes of $2,047,011,366 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 2,898,707
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (766,678,258)
-------------
Net unrealized loss $(763,779,551)
=============
(b) Debt obligation with a variable interest rate. Rate shown is rate at
period end.
(c) At October 31, 2008, the following securities were out on loan:
- ----------------------------------------------------------------------------------
Principal
Amount Security Value
- ----------------------------------------------------------------------------------
$5,489,000 Accuride Corp., 8.5%, 2/1/15* $2,195,600
2,500,000 AEP Industries, Inc., 7.875%, 3/15/13 1,500,000
787,000 Ainsworth Lumber, 11.0%, 7/29/15 (144A) 550,900
4,336,000 ALB Finance BV, 9.25%, 9/25/13 (144A) 1,517,600
4,500,000 ALB Finance BV, 9.25%, 9/25/13 1,575,000
7,364,000 Aleris International, Inc., 10.0%, 12/15/16 2,393,300
1,030,000 Allison Transmission, 11.25%, 11/1/15 (144A)* 545,900
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 39
Schedule of Investments | 10/31/08 (continued)
- ----------------------------------------------------------------------------------------------
Principal
Amount Security Value
- ----------------------------------------------------------------------------------------------
$ 13,090,000 Angiotech Pharmaceutical, 7.75%, 4/1/14 $ 5,497,800
11,745,000 Aventine Renewable Energy, 10.0%, 4/1/17 2,936,250
1,500,000 Bertin, Ltd., 10.25%, 10/5/16 (144A) 675,000
250,000 C10 Capital SPV, Ltd., Floating Rate Note, 12/31/49 117,325
3,525,000 Central Garden, 9.125%, 2/1/13 2,150,250
4,457,000 CCH I LLC, 11.0%, 10/1/15 2,005,650
2,000,000 AES Chivor, 9.75%, 12/30/14 (144A) 1,661,000
1,000,000 Cosan SA Industria, 8.25%, 2/15/49 (144A) 430,000
7,971,000 Cricket Communications I, 9.375%, 11/01/14 6,476,438
4,302,000 Duane Reade, Inc., 9.75%, 8/1/11 2,581,200
2,600,000 Evraz Group SA, 9.5%, 4/24/18 (144A) 1,092,000
2,281,300 Ford Motor Credit Co., 5.7%, 1/15/10* 1,693,409
3,260,000 Ford Motor Credit Co., 8.0%, 12/15/16 1,785,404
10,283,000 Georgia Gulf Corp, 10.75%, 10/15/16 2,673,580
900,000 Graphic Packaging Co., 9.5%, 8/15/13 616,500
11,950,000 GS Impsat Hldgs I Plc, 9.872%, 2/15/17 (144A) 8,962,500
1,924,000 Hipotecaria Su Casita SA, 8.5%, 10//4/16 (144A) 1,346,800
2,000,000 Inversiones Y Rep, 8.5%, 2/2/17 (144A) 780,000
2,250,000 Kar Holdings, Inc., 10.0%, 5/1/15 (144A) 1,271,250
967,000 MBIA, Inc, Floating Rate Note, 1/15/33 (144A) 522,180
100,000 Minerva Overseas, Ltd., 9.5%, 2/1/17 (144A) 45,000
700,000 Mobile Telesystems Finance, 8.0%, 1/28/12 448,000
2,722,000 Paetec Holdings, 9.5%, 7/15/15 1,544,735
1,485,000 Panolam Industries International, 10.75%, 10/1/13 891,000
465,000 Quicksilver Resources, Inc., 7.125%, 4/1/16 297,600
3,051,000 Sally Holdings LLC, 10.5%, 11/15/16 2,227,230
4,257,000 Sibacademfinance Plc, 9.0%, 5/12/09 (144A) 4,280,414
6,000,000 Station Casinos, Inc., 6.625%, 3/15/18 540,000
1,613,000 Tenneco Automotive, Inc., 8.625%, 11/15/14 762,143
2,000,000 Tristan Oil, Ltd., 10.5%, 1/1/12 (144A) 800,000
432,000 Tronox Worldwide LLC, 9.5%, 1/12/12*** 112,026
1,970,000 Trump Entertainment Resorts, 8.5%, 6/1/15 507,275
6,999,000 Turanalem Finance BV, 8.5%, 2/10/15 (144A) 2,589,630
266,000 Univision Communications, 9.75%, 3/15/15 (PIK) (144A) 54,530
6,433,000 Verasun Energy Corp., 9.375%, 6/1/17 578,970
7,613,000 Verasun Energy Corp., 9.875%, 12/15/12 3,121,330
2,467,000 Wells Fargo Capital, 9.75%, 12/29/49 2,392,990
10,909,000 Yankee Acquisition Corp., 9.75%, 2/15/17 5,414,137
- ----------------------------------------------------------------------------------------------
Shares
- ----------------------------------------------------------------------------------------------
241,600 Ainsworth Lumber Co., Ltd.* 362,400
- ----------------------------------------------------------------------------------------------
Total $82,522,246
==============================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global High Yield Fund | Annual Report | 10/31/08
*** Indicates pending sale at October 31, 2008.
(d) Securities lending collateral is managed by Credit Suisse.
(e) Distributions of investments by country of issue (excluding temporary
cash investments) as a percentage of total investment in securities, is
as follows:
United States 63.4%
Norway 5.0
Netherlands 3.8
United Kingdom 2.9
Brazil 2.9
Luxembourg 2.8
Caymay Islands 2.7
Canada 2.6
Argentina 2.4
South Africa 1.3
Mexico 1.0
Other (individually less than 1%) 9.2
-----
100.0%
=====
(f) Security is in default and is non-income producing.
(g) Security is fair valued (see note A).
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
denoted:
NOK Norwegian Krone
GBP British Pound Sterling
EURO Euro
ITL Italian Lira
BRL Brazilian Real
COP Columbian Peso
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2008 aggregated $458,673,358 and $542,949,817,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 41
Statement of Assets and Liabilities | 10/31/08
ASSETS
Investment in securities of unaffiliated issuers, at value (including
securities loaned of $82,522,246) (cost $2,037,084,449) $1,279,372,997
Investment in securities of affiliated issuers, at value
(cost $6,636,629) 3,858,818
- ------------------------------------------------------------------------------------------
Total Investments in securities, at value
(cost $2,043,721,078) $1,283,231,815
- ------------------------------------------------------------------------------------------
Foreign currencies, at value (cost $2,843,234) 2,801,725
Receivables --
Investment securities sold 7,317,409
Fund shares sold 4,302,467
Interest 44,680,097
Due from Pioneer Investment Management, Inc. 304,259
Other 93,019
- ------------------------------------------------------------------------------------------
Total assets $1,342,730,791
- ------------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 5,510,272
Dividends 5,171,586
Forward foreign currency portfolio hedge contracts, open-net 1,144,745
Upon return of securities loaned 84,661,889
Due to bank 2,159,249
Due to affiliates 311,387
Accrued expenses 131,532
- ------------------------------------------------------------------------------------------
Total liabilities $ 99,090,660
- ------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $2,045,441,240
Undistributed net investment income 19,630,042
Accumulated net realized loss on investments, credit default swaps,
and foreign currency transactions (58,534,392)
Net unrealized loss on investments (760,489,263)
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (2,407,496)
- ------------------------------------------------------------------------------------------
Total net assets $1,243,640,131
- ------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $759,925,454/100,561,235 shares) $ 7.56
Class B (based on $83,411,925/11,069,431 shares) $ 7.54
Class C (based on $347,459,462/46,242,740 shares) $ 7.51
Class Y (based on $50,477,295/6,769,455 shares) $ 7.46
Class Z (based on $2,365,995/303,775 shares) $ 7.79
MAXIMUM OFFERING PRICE:
Class A ($7.56 [divided by] 95.5%) $ 7.92
==========================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global High Yield Fund | Annual Report | 10/31/08
Statement of Operations
For the Year Ended 10/31/08
INVESTMENT INCOME:
Dividends $ 343,024
Interest (net of foreign taxes withheld of $66,900) 196,375,452
Income from securities loaned, net 1,431,155
- ---------------------------------------------------------------------------------------------------------
Total investment income $ 198,149,631
- ---------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 12,001,390
Transfer agent fees and expenses
Class A 2,645,565
Class B 271,571
Class C 713,433
Class Y 9,177
Class Z 3,775
Distribution fees
Class A 3,012,066
Class B 1,315,253
Class C 5,247,411
Administrative fees 430,110
Custodian fees 158,231
Registration fees 243,057
Professional fees 134,653
Printing expense 160,633
Fees and expenses of nonaffiliated trustees 62,728
Miscellaneous 382,762
- ---------------------------------------------------------------------------------------------------------
Total expenses $ 26,791,815
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (904,021)
Less fees paid indirectly (59,328)
- ---------------------------------------------------------------------------------------------------------
Net expenses $ 25,828,466
- ---------------------------------------------------------------------------------------------------------
Net investment income $ 172,321,165
- ---------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
CREDIT DEFAULT SWAPS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (56,614,793)
Credit default swaps 76,478
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies 19,521,186 $ (37,017,129)
- ---------------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $ (741,492,499)
Credit default swaps 656
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (3,317,878) $ (744,809,721)
- ---------------------------------------------------------------------------------------------------------
Net loss on investments, credit default swaps and foreign currency
transactions $ (781,826,850)
- ---------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (609,505,685)
=========================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 43
Statements of Changes in Net Assets
For the Years Ended 10/31/08 and 10/31/07, respectively
- -------------------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/08 10/31/07
- -------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 172,321,165 $ 129,651,733
Net realized gain (loss) on investments, credit default swaps,
and foreign currency transactions (37,017,129) 22,932,866
Change in net unrealized loss on investments, credit default
swaps and foreign currency transactions (744,809,721) (40,344,737)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (609,505,685) $ 112,239,862
- -------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($1.07 and $0.98 per share, respectively) $ (117,007,302) $ (81,601,384)
Class B ($0.98 and $0.87 per share, respectively) (11,706,103) (10,457,546)
Class C ($0.98 and $0.88 per share, respectively) (47,074,030) (37,407,197)
Class Y ($1.10 and $0.99 per share, respectively) (4,599,648) (918,427)
Class Z ($1.11 and $0.32 per share, respectively) (93,462) (2,550)
Net realized gain:
Class A ($0.11 and $0.06 per share, respectively) (11,626,930) (3,435,262)
Class B ($0.11 and $0.06 per share, respectively) (1,378,099) (651,210)
Class C ($0.11 and $0.06 per share, respectively) (5,275,114) (2,128,471)
Class Y ($0.11 and $0.06 per share, respectively) (216,293) (428)
Class Z ($0.11 and $0.00 per share, respectively) (862) --
- -------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (198,977,843) $ (136,602,475)
- -------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 934,606,415 $1,371,832,796
Reinvestment of distributions 130,817,482 85,601,709
Cost of shares repurchased (1,159,572,916) (490,456,742)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ (94,149,019) $ 966,977,763
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (902,632,547) $ 942,615,150
NET ASSETS:
Beginning of year 2,146,272,678 1,203,657,528
- -------------------------------------------------------------------------------------------------------
End of year $1,243,640,131 $2,146,272,678
- -------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 19,630,042 $ 6,423,730
- -------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
44 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- -------------------------------------------------------------------------------------------------------
'08 Shares '08 Amount '07 Shares '07 Amount
- -------------------------------------------------------------------------------------------------------
Class A
Shares sold 64,231,474 $ 706,399,059 80,734,234 $1,009,927,996
Reinvestment of distributions 8,783,363 95,007,758 4,901,901 61,064,428
Less shares repurchased (83,768,449) (910,222,109) (27,783,637) (345,623,177)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) (10,753,612) $(108,815,292) 57,852,498 $ 725,369,247
=======================================================================================================
Class B
Shares sold 1,872,999 $ 20,776,025 4,803,916 $ 60,425,568
Reinvestment of distributions 543,181 5,872,664 381,063 4,737,169
Less shares repurchased (4,020,218) (43,426,405) (3,118,576) (38,698,904)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) (1,604,038) $ (16,777,716) 2,066,403 $ 26,463,833
=======================================================================================================
Class C
Shares sold 12,453,883 $ 137,480,872 22,244,101 $ 277,806,461
Reinvestment of distributions 2,358,488 25,370,625 1,526,245 18,919,034
Less shares repurchased (17,457,701) (187,400,662) (8,534,278) (105,507,730)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) (2,645,330) $ (24,549,165) 15,236,068 $ 191,217,765
=======================================================================================================
Class Y
Shares sold 5,986,739 $ 64,817,327 1,912,122 $ 23,572,759
Reinvestment of distributions 441,547 4,501,261 72,046 881,078
Less shares repurchased (1,593,514) (16,344,391) (52,409) (626,919)
- -------------------------------------------------------------------------------------------------------
Net increase 4,834,772 $ 52,974,197 1,931,759 $ 23,826,918
=======================================================================================================
Class Z*
Shares sold 483,865 $ 5,133,132 7,906 $ 100,012
Reinvestment of distributions 6,611 65,174 -- --
Less shares repurchased (194,606) (2,179,349) (1) (12)
- -------------------------------------------------------------------------------------------------------
Net increase 295,870 $ 3,018,957 7,905 $ 100,000
=======================================================================================================
* Class Z shares were first publicly offered on July 6, 2007.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 45
Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/08 10/31/07 10/31/06 10/31/05 10/31/04 (a)
- ------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 12.30 $ 12.34 $ 11.88 $ 11.79 $ 11.31
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 1.03 $ 0.96 $ 0.90 $ 0.90 $ 0.69
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (4.59) 0.04 0.49 0.09 0.89
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (3.56) $ 1.00 $ 1.39 $ 0.99 $ 1.58
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (1.07) $ (0.98) $ (0.90) $ (0.90) (0.89)
Net realized gain (0.11) (0.06) (0.03) -- (0.21)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.18) $ (1.04) $ (0.93) $ (0.90) (1.10)
- ------------------------------------------------------------------------------------------------------------------------------------
Redemption Fee $ -- $ -- $ 0.00(b) $ 0.00(b) $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (4.74) $ (0.04) $ 0.46 $ 0.09 $ 0.48
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.56 $ 12.30 $ 12.34 $ 11.88 $ 11.79
====================================================================================================================================
Total return* (31.45)% 8.30% 12.12% 8.52% 14.82%
Ratio of net expenses to average net assets+ 1.10% 1.06% 1.10% 1.04% 0.75%
Ratio of net investment income to average net assets+ 9.25% 7.73% 7.44% 7.40% 8.02%
Portfolio turnover rate 25% 31% 41% 36% 50%
Net assets, end of period (in thousands) $759,925 $1,369,044 $ 659,845 $343,886 $ 70,063
Ratios with no waiver of fees and assumption of expenses
by PIM and no reduction for fees paid indirectly:
Net expenses 1.18% 1.06% 1.18% 1.18% 1.41%
Net investment income 9.17% 7.73% 7.37% 7.26% 7.36%
Ratios with waiver of fees by PIM and reduction for fees
paid indirectly:
Net expenses 1.10% 1.06% 1.10% 1.04% 0.75%
Net investment income 9.25% 7.73% 7.44% 7.40% 8.02%
- ------------------------------------------------------------------------------------------------------------------------------------
(a) The Fund Commenced operations on August 27, 2001 and was first publicly
offered on December 1, 2003.
(b) Amount rounds to less than once cent per share.
* 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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
46 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended 12/1/03 (a)
10/31/08 10/31/07 10/31/06 10/31/05 to 10/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 12.27 $ 12.31 $ 11.85 $ 11.76 $ 11.47
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.93 $ 0.86 $ 0.80 $ 0.80 $ 0.82
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (4.57) 0.03 0.49 0.09 0.49
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (3.64) $ 0.89 $ 1.29 $ 0.89 $ 1.31
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.98) $ (0.87) $ (0.80) $ (0.80) $ (0.81)
Net realized gain (0.11) ( 0.06) (0.03) -- (0.21)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.09) $ (0.93) $ (0.83) $ (0.80) $ (1.02)
- ------------------------------------------------------------------------------------------------------------------------------------
Redemption Fee $ -- $ -- $ 0.00(b) $ 0.00(b) $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (4.73) $ (0.04) $ 0.46 $ 0.09 $ 0.29
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.54 $ 12.27 $ 12.31 $ 11.85 $ 11.76
====================================================================================================================================
Total return* 32.02)% 7.41% 11.25% 7.62% 12.12%(c)
Ratio of net expenses to average net assets+ 1.92% 1.86% 1.96% 1.91% 1.58%**
Ratio of net investment income to average net assets+ 8.47% 6.93% 6.63% 6.57% 7.26%**
Portfolio turnover rate 25% 31% 41% 36% 50%(c)
Net assets, end of period (in thousands) $ 83,412 $ 155,523 $ 130,563 $ 98,462 $ 20,408
Ratios with no waiver of fees and assumption of expenses
by PIM and no reduction for fees paid indirectly:
Net expenses 1.92% 1.86% 1.96% 1.97% 2.20%**
Net investment income 8.47% 6.93% 6.60% 6.51% 6.64%**
Ratios with waiver of fees paid by PIM and reduction for fees
paid indirectly:
Net expenses 1.92% 1.85% 1.96% 1.91% 1.58%**
Net investment income 8.47% 6.94% 6.60% 6.57% 7.26%**
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Class B shares were first publicly offered on December 1, 2003.
(b) Amount rounds to less than one cent per share.
* 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.
(c) Not annualized.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 47
Financial Highlights (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended 12/1/03 (a)
10/31/08 10/31/07 10/31/06 10/31/05 to 10/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 12.24 $ 12.28 $ 11.82 $ 11.74 $ 11.47
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.93 $ 0.86 $ 0.80 $ 0.80 $ 0.77
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (4.57) 0.04 0.49 0.08 0.47
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (3.64) $ 0.90 $ 1.29 $ 0.88 $ 1.24
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.98) $ (0.88) $ (0.80) $ (0.80) $ (0.76)
Net realized gain ( 0.11) (0.06) (0.03) -- (0.21)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.09) $ (0.94) $ (0.83) $ (0.80) $ (0.97)
- ------------------------------------------------------------------------------------------------------------------------------------
Redemption Fee $ -- $ -- $ 0.00(b) $ 0.00(b) $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (4.73) $ (0.04) $ 0.46 $ 0.08 $ 0.27
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.51 $ 12.24 $ 12.28 $ 11.82 $ 11.74
====================================================================================================================================
Total return* (32.08)% 7.48% 11.30% 7.60% 11.45%(c)
Ratio of net expenses to average net assets+ 1.85% 1.82% 1.89% 1.84% 1.51%**
Ratio of net investment income to average net assets+ 8.55% 6.96% 6.66% 6.63% 7.30%**
Portfolio turnover rate 25% 31% 41% 36% 50%(c)
Net assets, end of period (in thousands) $347,459 $598,195 $413,213 $ 288,314 $92,501
Ratios with no waiver of fees and assumption of expenses
by PIM and no reduction for fees paid indirectly:
Net expenses 1.85% 1.82% 1.89% 1.91% 2.11%**
Net investment income 8.55% 6.96% 6.66% 6.56% 6.70%**
Ratios with waiver of fees by PIM and reduction for fees
paid indirectly:
Net expenses 1.85% 1.82% 1.89% 1.84% 1.51%**
Net investment income 8.55% 6.96% 6.66% 6.63% 7.30%**
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Class C shares were first publicly offered on December 1, 2003.
(b) Amount rounds to less than one cent per share.
* 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.
(c) Not annualized.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
48 Pioneer Global High Yield Fund | Annual Report | 10/31/08
- --------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended 12/28/05 (a)
10/31/08 10/31/07 to 10/31/06
- --------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 12.10 $ 12.19 $ 11.95
- --------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 1.05 $ 0.97 $ 0.77
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (4.48) (0.01) 0.23
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (3.43) $ 0.96 $ 1.00
- --------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (1.10) (0.99) (0.76)
Net realized gain (0.11) (0.06) --
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (4.64) $ (0.09) $ 0.24
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.46 $ 12.10 $ 12.19
==========================================================================================================================
Total return* (30.96)% 8.12% 8.63%(b)
Ratio of net expenses to average net assets+ 0.74% 0.70% 0.73%**
Ratio of net investment income to average net assets+ 9.82% 8.05% 7.66%**
Portfolio turnover rate 25% 31% 41%(b)
Net assets, end of period (in thousands) $ 50,477 $ 23,414 $ 36
Ratios with no waiver of fees and assumption of expenses by
PIM and no reduction for fees paid indirectly:
Net expenses 0.74% 0.70% 0.73%**
Net investment income 9.82% 8.05% 7.66%**
Ratios with waiver of fees by PIM and reduction for fees
paid indirectly:
Net expenses 0.74% 0.70% 0.73%**
Net investment income 9.82% 8.05% 7.66%**
- --------------------------------------------------------------------------------------------------------------------------
(a) Class Y shares were first publicly offered on December 28, 2005.
(b) Not annualized.
* 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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 49
Financial Highlights (continued)
- ---------------------------------------------------------------------------------------------------
Year Ended 7/6/07 (a)
10/31/08 to 10/31/07
- ---------------------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $ 12.31 $ 12.65
- ---------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 1.07 $ 0.33
Net realized and unrealized loss on investments and foreign
currency transactions (4.37) (0.35)
- ---------------------------------------------------------------------------------------------------
Net decrease from investment operations $ (3.30) $ (0.02)
- ---------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (1.11) (0.32)
Net realized gain (0.11) --
- ---------------------------------------------------------------------------------------------------
Net decrease in net asset value $ (4.52) $ (0.34)
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.79 $ 12.31
===================================================================================================
Total return* (29.21)% (0.09)%(b)
Ratio of net expenses to average net assets+ 0.90% 0.69%**
Ratio of net investment income to average net assets+ 9.85% 8.30%**
Portfolio turnover rate 25% 31%(b)
Net assets, end of period (in thousands) $ 2,366 $ 97
Ratios with no waiver of fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 1.11% 0.69%**
Net investment income 9.64% 8.30%**
Ratios with waiver of fees by PIM and reduction for fees paid
indirectly:
Net expenses 0.90% 0.69%**
Net investment income 9.85% 8.30%**
- ---------------------------------------------------------------------------------------------------
(a) Class Z shares were first publicly offered on July 6, 2007.
(b) Not annualized.
* 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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
50 Pioneer Global High Yield Fund | Annual Report | 10/31/08
Notes to Financial Statements | 10/31/08
1. Organization and Significant Accounting Policies
Pioneer Global High Yield Fund (the Fund) is a series of Pioneer Series Trust
VII, a Delaware statutory trust registered under the Investment Company Act of
1940 as a non-diversified, open-end management investment company. The
investment objective of the Fund is to maximize total return through a
combination of income and capital appreciation.
The Fund offers five classes of shares -- Class A, Class B, Class C, Class Y and
Class Z shares. Class Y shares were first publicly offered on December 28, 2005.
Class Z shares were first publicly offered on July 6, 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 have
exclusive voting rights with respect to the distribution plans that have been
adopted by Class A, Class B and Class C shareowners, respectively. There is no
distribution plan for Class Y and Class Z shares. Class B shares convert to
Class A shares eight years after the date of purchase.
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 gain or loss on investments during the reporting year.
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's investments in foreign markets and countries
with limited developing markets may subject the Fund to a greater degree of risk
than in a developed market. These risks include disruptive political or economic
conditions and the 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 principal 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:
Pioneer Global High Yield Fund | Annual Report | 10/31/08 51
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, securities are valued at the last sale price
on the principal exchange where they are traded. Fixed income securities
with remaining maturity of more than 60 days 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
dealers and other sources, as required. Securities for which there are no
other readily available valuation methods are valued using fair value
methods pursuant to procedures adopted by the Board of Trustees. At October
31, 2008 one security has been fair valued, which represents 0.39% of net
assets. Temporary cash investments are valued at cost which approximates
market value.
Credit default swaps are valued by an independent pricing service based
upon valuation models incorporating default probabilities, estimated
recovery rates, actual reported transactions, and other available market
data.
All discounts and premiums on debt securities are accreted or amortized
daily, respectively, on a yield-to-maturity basis into interest income with
a corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis, net of unrecoverable
foreign taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
The Fund invests in below investment grade (high yield) debt securities and
preferred stocks. Some of these high yield securities may be convertible
into equity securities of the issuer. 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 is not diversified, which means that it can invest a
higher percentage of its assets in any one issuer than a diversified fund.
Being non-diversified may magnify the Fund's losses from adverse events
affecting a particular issuer.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
52 Pioneer Global High Yield Fund | Annual Report | 10/31/08
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the statement of operations from
the effects of changes in market price of those securities but are included
with the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a
future date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Fund's
financial statements. The Fund records realized gains and losses at the
time a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar. (See Note 8)
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its 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 statute of limitations; all other tax years remain
open.
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.
As of October 31, 2008, the Fund has a net capital loss carryforward of
$58,199,667, which will expire in 2016 if not utilized.
At October 31, 2008, the Fund has reclassified $21,365,692 to increase
undistributed net investment income and $21,365,692 to decrease accumulated
net realized loss on investments, credit default swaps and foreign
Pioneer Global High Yield Fund | Annual Report | 10/31/08 53
currency transactions, 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 years ended October 31,
2008 and October 31, 2007 was as follows:
- -------------------------------------------------------------
2008 2007
- -------------------------------------------------------------
Distributions paid from:
Ordinary income $184,322,998 $133,484,600
Long-term capital gain 14,654,845 3,117,875
- -------------------------------------------------------------
Total $198,977,843 $136,602,475
=============================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2008:
- -------------------------------------------------------
2008
- -------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 26,612,445
Capital loss carryforward (58,199,667)
Current year dividend payable (5,171,586)
Unrealized depreciation (765,042,301)
- -------------------------------------------------------
Total $ (801,801,109)
=======================================================
The difference between book-basis and tax-basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales, adjustments
relating to catastrophe bonds, the mark to market of forward currency
contracts and the tax basis adjustment on partnerships and interest on
defaulted bonds.
E. 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 $319,940 in underwriting commissions on the sale of
Class A shares during the year ended October 31, 2008.
F. 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, Class B and Class C of the Fund, respectively (see
Note 5). Class Y and Class Z shares are not subject to a distribution plan.
Shareowners of each class participate in all expenses and fees paid to the
54 Pioneer Global High Yield Fund | Annual Report | 10/31/08
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 5).
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 B, Class C, Class Y and Class Z shares
can bear different transfer agent and distribution expense rates.
G. 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.
H. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by and earns income in the form of negotiated lenders'
fees. The Fund also continues to receive interest or payments in lieu of
dividends on the securities loaned. Gain or loss on the fair value of the
loaned securities that may occur during the term of the loan will be for
the account of the Fund. The loans are secured by collateral which is
required to be at least 102%, at all times, of the fair value of the
securities loaned. The amount of collateral is required to be adjusted
daily to reflect any price fluctuation in the value of the loaned
securities. The Fund has the right under the lending agreement to recover
the securities from the borrower on demand. The Fund invests cash
collateral in cash equivalent investments. Securities lending collateral is
managed by Credit Suisse.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 55
I. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may buy
or sell credit default swap contracts to increase the Fund's income, to add
leverage to the Fund or to hedge the risk of default on portfolio
securities. As a seller of protection, the Fund would be required to pay
the notional (or other agreed-upon) value of the referenced debt obligation
to the counterparty in the event of a default by a U.S. or foreign
corporate issuer of a debt obligation, which would likely result in a loss
to the Fund. In return, the Fund would receive from the counterparty a
periodic stream of payments during the term of the contract provided that
no event of default occurred. The maximum exposure of loss to the seller
would be the notional value of the credit default swaps outstanding. If no
default occurs, the Fund would keep the stream of payments and would have
no payment obligation. The Fund may also buy credit default swap contracts
in order to hedge against the risk of default of debt securities, in which
case the Fund would function as the counterparty referenced above.
When the Fund enters into a credit default swap contract, one party, the
protection buyer, makes an upfront or periodic payment to the protection
seller in exchange for the right to receive a contingent payment. An
upfront payment received by the Fund, as the protection seller, is recorded
as a liability in the Fund's records. An upfront payment made by the Fund,
as the protection buyer, is recorded as an asset in the Fund's records.
Periodic payments received or paid by the Fund are recorded as realized
gains or losses.
The credit default swap contracts are marked-to-market daily using
valuations supplied by independent sources and the change in value, if any,
is recorded as unrealized gain or loss. Payments received or made as a
result of a credit event or upon termination of the contract are
recognized, net of the appropriate amount of the upfront payment, as
realized gains or losses.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
There were no credit default swap contracts outstanding at October 31,
2008.
56 Pioneer Global High Yield Fund | Annual Report | 10/31/08
2. Unfunded Loan Commitments
As of October 31, 2008, the Fund had no unfunded loan commitments which could be
extended at the option of the borrower.
3. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary of
UniCredit, the Fund's investment adviser, manages the Fund's portfolio.
Management fees are calculated daily at the annual rate of 0.70% of the Fund's
average daily net assets up to $500 million; 0.65% of the next $500 million
0.60% of the next $500 million, 0.55% or the next $500 million and 0.45% of the
excess over $2 billion. Effective January 1, 2007, Pioneer's fee is subject to
an additional breakpoint. The Fund pays Pioneer a fee at the annual rate of
0.55% of the Fund's average daily net assets greater than $1.5 billion. For the
year ended October 31, 2008, the net management fee was equivalent to 0.63% of
the average daily net assets.
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses of the Fund to the extent necessary to limit the
Fund expenses to 1.10%, 2.00% and 2.00% of the average daily net assets
attributable to Class A, Class B and Class C shares, respectively. These expense
limitations are in effect through March 1, 2011 for Class A shares and through
March 1, 2009 for Class B and Class C shares. Pioneer has contractually agreed
to limit ordinary operating expenses to the extent required to reduce Fund
expenses to 0.90% of the average daily net assets attributable to Class Z
shares. This expense limitation is in effect through March 1, 2011 for Class Z
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 $23,385 in management fees,
administrative costs and certain other services payable to PIM at October 31,
2008.
4. 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 $271,043 in transfer agent fees receivable from PIMSS at October
31, 2008.
5. Distribution Plan
The Fund adopted Plans of Distribution with respect to each class of shares
(Class A Plan, Class B Plan, and Class C Plan) in accordance with Rule 12b-1 of
the Investment Company Act of 1940. Pursuant to the Plan, the Fund pays PFD
Pioneer Global High Yield Fund | Annual Report | 10/31/08 57
0.25% of the 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 B and
Class C shares. The fee for Class B and 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 B and 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 of 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 $16,959 in distribution fees
payable to PFD at October 31, 2008.
In addition, redemptions of each class of shares (except Class Y and Class Z
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. Class B shares that are redeemed
within five years of purchase are subject to a CDSC at declining rates beginning
at 4.00%, based on the lower of cost or market value of shares being redeemed.
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,
CDSCs in the amount of $602,940 were paid to PFD.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $200 million committed, unsecured
revolving line of credit facility. Borrowings are used solely for temporary or
emergency purposes. The Fund may borrow up to the lesser of $200 million or the
limits set by its prospectus for borrowings. Interest on borrowings is payable
at the Federal Funds Rate plus 1/2% on an annualized basis. The Funds pay an
annual commitment fee for this facility. The commitment fee is allocated among
such Funds based on their respective borrowing limits. For the year ended
October 31, 2008, the Fund had no borrowings under this agreement.
7. Expense Offset Arrangements
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 $59,328 under such arrangements.
58 Pioneer Global High Yield Fund | Annual Report | 10/31/08
8. Forward Foreign Currency Contracts
At October 31, 2008, the Fund had entered into various contracts that obligate
the Fund to deliver currencies at specified future dates. At the maturity of a
contract, the Fund must make delivery of the foreign currency. Alternatively,
prior to the settlement date of a portfolio hedge, the Fund may close out such
contracts by entering into an offsetting hedge contract. Open Portfolio hedges
at October 31, 2008 were as follows:
- -------------------------------------------------------------------------------------------------------------
Net Net
Contracts to In Exchange Settlement Unrealized
Currency (deliver)/receive For Date Value Gain (Loss)
- -------------------------------------------------------------------------------------------------------------
EUR
(Euro) 3,600,000 $ 4,571,798 11/28/08 $ 4,590,522 $ 18,725
EUR
(Euro) (45,280,000) $ (56,575,096) 11/28/08 $ (57,738,565) $ (1,163,470)
- -------------------------------------------------------------------------------------------------------------
$ (1,144,745)
=============================================================================================================
At October 31, 2008, the Fund had no outstanding settlement hedges.
9. Affiliated Company
The Fund's investments in securities managed by PIM are deemed affiliates of the
Fund for financial reporting purposes. The following summarizes transactions
with affiliates of the Fund for the year ended October 31, 2008:
- -------------------------------------------------------------------------------------------------------------
Net
Principal Purchases Sales Principal Realized
Amount (principal (principal Amount Interest (Loss)
Affiliates 10/31/07 amount) amount) 10/31/08 Income Gain Value
- -------------------------------------------------------------------------------------------------------------
ATF Bank JSC, 9.25%,
4/12/12 (144A) $6,675,000 -- -- $6,675,000 $617,438 $-- $3,858,818
10. 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 Global High Yield Fund | Annual Report | 10/31/08 59
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of
Pioneer Global High Yield Fund:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Global High Yield Fund (the "Fund") (one of the portfolios constituting the
Pioneer Series Trust VII), including the schedule of investments, as of October
31, 2008, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, 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 provide 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 Global High Yield Fund at October 31, 2008, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, 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
60 Pioneer Global High Yield Fund | Annual Report | 10/31/08
ADDITIONAL INFORMATION (unaudited)
The qualifying percentage of the Fund's ordinary distributions that are exempt
from nonresident alien (NRA) tax withholding resulting from qualified interest
income and qualified short term gains were 51.37% and 1.93%, respectively.
Results of Shareholder Meeting (unaudited)
At a special meeting held on May 13, 2008, and adjourned to June 19, 2008 with
respect to certain proposals and to July 17, 2008 with respect to certain other
proposals, shareholders of the Fund were asked to consider the proposals
described below. A report of the total votes cast by the Fund's shareholders
(or, with respect to certain proposals, by shareholders of Pioneer Series Trust
VII (the "Trust"), as noted below) follows:
- ----------------------------------------------------------------------------------------------
Broker
For Withhold Abstain Non-Votes
- ----------------------------------------------------------------------------------------------
Proposal 1 -- To elect Trustees*
John F. Cogan, Jr. 97,117,735.206 2,711,619.196 84,784.503 0.000
Daniel K. Kingsbury 97,138,271.027 2,691,083.375 84,784.503 0.000
David R. Bock 97,133,385.774 2,695,968.628 84,784.503 0.000
Mary K. Bush 97,116,587.467 2,712,766.935 84,784.503 0.000
Benjamin M. Friedman 97,127,767.422 2,701,586.980 84,784.503 0.000
Margaret B.W. Graham 97,140,476.435 2,688,877.967 84,784.503 0.000
Thomas J. Perna 97,132,102.410 2,697,251.992 84,784.503 0.000
Marguerite A. Piret 97,134,391.182 2,694,983.220 84,784.503 0.000
Stephen K. West 97,129,009.235 2,700,345.167 84,784.503 0.000
John Winthrop 97,126,660.693 2,702,693.709 84,784.503 0.000
- ---------------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ---------------------------------------------------------------------------------------------------
Proposal 2 -- To approve an
amendment to the
Declaration of Trust* 73,647,254.549 8,528,766.384 4,803,535.763 22,493,206.000
- ---------------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ---------------------------------------------------------------------------------------------------
Proposal 3A -- To approve
changes to the Fund's
fundamental investment
policy relating to borrowing
money 76,117,581.905 3,505,211.503 4,792,725.638 23,270,703.000
Proposal 3B -- To approve
changes to the Fund's
fundamental investment
policy relating to
underwriting 76,295,584.970 3,223,241.772 4,896,692.304 23,270,703.000
Proposal 3C -- To approve
changes to the Fund's
fundamental investment
policy relating to lending 76,055,282.728 3,516,473.289 4,843,763.029 23,270,703.000
Pioneer Global High Yield Fund | Annual Report | 10/31/08
61
- ----------------------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ----------------------------------------------------------------------------------------------------------
Proposal 3D -- To approve
changes to the Fund's
fundamental investment
policy relating to issuing
senior securities 76,553,718.271 3,051,770.112 4,810,030.663 23,270,703.000
Proposal 3E -- To approve
changes to the Fund's
fundamental investment
policy relating to real estate 76,248,577.320 3,347,629.394 4,819,312.332 23,270,703.000
Proposal 3F -- To approve
changes to the Fund's
fundamental investment
policy relating to
commodities 76,305,027.693 3,250,268.946 4,860,222.407 23,270,703.000
Proposal 3G -- To approve
changes to the Fund's
fundamental investment
policy relating to
concentration 76,240,141.396 3,144,439.416 5,030,938.234 23,270,703.000
Proposal 3I -- To approve
the conversion of the Fund's
investment objective from
fundamental to non-
fundamental 72,541,561.742 8,938,380.793 5,499,614.160 22,493,206.000
- ----------------------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ----------------------------------------------------------------------------------------------------------
Proposal 4 -- To approve an
Amended and Restated
Management Agreement
with PIM 77,345,872.041 2,467,500.500 4,602,146.505 23,270,703.000
* Proposals 1 and 2 were voted on and approved by all series of the Trust.
Results reported above reflect the combined vote of all series of the Trust.
62 Pioneer Global High Yield 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 annually whether to
continue the investment advisory agreement for the Fund. In connection with
their most recent consideration 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 13, 2007, based on their evaluation of the information provided by PIM,
the Trustees, including the independent Trustees voting separately, unanimously
approved the continuation of the investment advisory agreement for another year.
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 continuation 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 June 19, 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
Pioneer Global High Yield Fund | Annual Report | 10/31/08 63
the Fund provided to the Trustees at each quarterly meeting. The Trustees
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
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
average performance of its peer group of funds as classified by Morningstar,
Inc. (Morningstar), an independent provider of investment company data, and with
the performance of the Fund's benchmark index. The Trustees considered that the
Fund's annualized total return was in the first quintile of its Morningstar
category for the one, three and five year periods ended June 30, 2007. (In all
quintile rankings referred to throughout this disclosure, first quintile is most
favorable to the Fund's shareowners. Thus, highest relative performance would be
first quintile and lowest relative expenses would also be first quintile.) 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
64 Pioneer Global High Yield Fund | Annual Report | 10/31/08
Insight Mutual Fund Research and Consulting, LLC (Strategic Insight), an
independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2007 was in the fourth quintile relative to the management fees
paid by other funds in its peer group Morningstar category for the comparable
period. The Trustees also considered that the Fund's expense ratio for the
twelve months ended June 30, 2007 was in the fourth quintile relative to its
Strategic Insight peer group. The Trustee noted that the Fund's management fee
recently was lowered and that the impact of the lower management fee was not
fully reflected in the data. They also considered PIM's agreement to add a
breakpoint to the management fee schedule as described below.
The Trustees also reviewed management fees charged by PIM to its separate
account clients with a similar investment strategy as the Fund. The Trustees
noted that in some instances the fee rates for those separate accounts were
lower than the management fees for the Fund and considered that, under the
investment advisory agreement with the Fund, PIM performs additional services
for the Fund that it does not provide to those other clients, including
oversight of the Fund's other service providers, regulatory compliance and other
services.
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 mutual
funds with similar strategies. The Trustees also concluded that the Fund's
expense ratio was reasonable, taking into account the size of the Fund, the
quality of services provided by PIM, the investment performance of the Fund and
the contractual expense limitation agreed to by PIM with respect to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
recognized that PIM should be entitled to earn a reasonable level of profit for
the services provided to the Fund. The Trustees concluded that PIM's
profitability with respect to the management of the Fund was not unreasonable.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 65
Economies of Scale
The Trustees considered the economies of scale with respect to the management of
the Fund, whether the Fund had appropriately benefited from any economies of
scale, and whether there was potential for realization of any further economies
of scale. The Trustees considered PIM's agreement to add a breakpoint to the
management fee schedule so that the management fee would be reduced for Fund
assets in excess of $2 billion. The Trustees reviewed the impact that the
breakpoint would have on the Fund's management fee versus its Morningstar
category peer group. The Trustees concluded that, because of the addition of the
breakpoint in the management fee schedule and the reduced fee rate 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.
66 Pioneer Global High Yield Fund | Annual Report | 10/31/08
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.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 67
Interested Trustees
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (82)* Chairman of the Board, Trustee since 2001. Deputy Chairman and a
Trustee and President Serves until a successor Director of Pioneer Global None
trustee is elected or Asset Management S.p.A.
earlier retirement or ("PGAM"); Non-Executive
removal. Chairman and a Director
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
Investment 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
Distributor, 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)* Trustee and Executive Trustee since March Director, CEO and None
Vice President 2007. Serves until a President of Pioneer
successor trustee is Investment Management USA
elected or earlier Inc. (since February
retirement or removal. 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); Director of
Pioneer Global Asset
Management S.p.A. (since
April 2007); Head of New
Markets Division, Pioneer
Global Asset Management
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.
68 Pioneer Global High Yield Fund | Annual Report | 10/31/08
Independent Trustees
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (64) Trustee Trustee since 2005. Executive Vice President Director of Enterprise
Serves until a successor and Chief Financial Community
trustee is elected or Officer, I-trax, Inc. Investment, Inc.
earlier retirement or (publicly traded health (privately-held
removal. care services company) affordable housing
(2004 - 2007); Partner, finance company); and
Federal City Capital Director of New York
Advisors (boutique Mortgage Trust
merchant bank) (1997 to (publicly traded
2004 and 2008 - present); mortgage REIT)
and Executive Vice
President and Chief
Financial Officer,
Pedestal Inc.
(internet-based mortgage
trading company) (2000 -
2002)
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (60) Trustee Trustee since 2001. President, Bush Director of Marriott
Serves until a successor International, LLC International, Inc.;
trustee is elected or (international financial Director of Discover
earlier retirement or advisory firm) Financial Services
removal. (credit card issuer
and electronic
payment services);
Director of Briggs &
Stratton Co. (engine
manufacturer);
Director of UAL
Corporation (airline
holding company);
Director of Mantech
International
Corporation (national
security, defense, and
intelligence
technology firm); and
Member, Board of
Governors, Investment
Company Institute
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/08 69
Independent Trustees (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (64) Trustee Trustee since May, Professor, Harvard Trustee, Mellon
2008. Serves until a University Institutional Funds
successor trustee is Investment Trust and
elected or earlier Mellon Institutional
retirement or removal. Funds Master Portfolio
(oversees 17
portfolios in fund
complex)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (61) Trustee Trustee since 2001. Founding Director, Vice None
Serves until a successor President and Corporate
trustee is elected or Secretary, The Winthrop
earlier retirement or Group, Inc. (consulting
removal. firm); and Desautels
Faculty of Management,
McGill University
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (58) Trustee Trustee since 2006. Chief Executive Officer, None
Serves until a successor Quadriserv, Inc. (2008 -
trustee is elected or present) (technology
earlier retirement or products for securities
removal. 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) Trustee Trustee since 2001. President and Chief Director of New
Serves until a successor Executive Officer, America High Income
trustee is elected or Newbury, Piret & Company, Fund, Inc. (closed-end
earlier retirement or Inc. (investment banking investment company)
removal. firm)
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (80) Trustee Trustee since 2001. Senior Counsel, Sullivan & Director, The Swiss
Serves until a successor Cromwell LLP (law firm) Helvetia Fund, Inc.
trustee is elected or (closed-end investment
earlier retirement or company)
removal.
- ------------------------------------------------------------------------------------------------------------------------------------
70 Pioneer Global High Yield Fund | Annual Report | 10/31/08
Fund Officers
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (60) Secretary Since 2003. Serves at Secretary of PIM-USA; None
the discretion of the Senior Vice President
Board - Legal of Pioneer;
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) Assistant Secretary Since 2003. Serves at Associate General None
the discretion of the Counsel of Pioneer
Board since January 2008 and
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) Treasurer Since March 2008. Vice President - Fund None
Serves at the discretion Accounting,
of the Board Administration and
Controllership
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 Treasurer Since 2001. Serves at Assistant Vice None
the discretion of the President - Fund
Board Accounting,
Administration and
Controllership
Services of Pioneer;
and Assistant
Treasurer of all of
the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (50) Assistant Treasurer Since 2002. Serves at Fund Accounting None
the discretion of the Manager - Fund
Board Accounting,
Administration and
Controllership
Services of Pioneer;
and Assistant
Treasurer of all of
the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/08 71
Fund Officers (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (34) Assistant Treasurer Since 2003. Serves at Fund Administration None
the discretion of the Manager - Fund
Board Accounting,
Administration and
Controllership
Services since June
2003 and Assistant
Treasurer of all of
the Pioneer Funds
since September 2003;
Assistant 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 Since January 2007. Chief Compliance None
Officer Serves at the discretion Officer of Pioneer
of the Board since December 2006
and of 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)
- ------------------------------------------------------------------------------------------------------------------------------------
72 Pioneer Global High Yield Fund | Annual Report | 10/31/08
This page for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 73
This page for your notes.
74 Pioneer Global High Yield Fund | Annual Report | 10/31/08
This page for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/08 75
This page for your notes.
76 Pioneer Global High Yield 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.
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 Trust,
including fees associated with the annual filing of its
Form N-1A, totaled approximately $107,000 in 2008
and $37,450 in 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 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 $24,870 and $7,820 in
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 fees for 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
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SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
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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
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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.)
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AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
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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.
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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"
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SECTION III - POLICY DETAIL, CONTINUED
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SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
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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.
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AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
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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"
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SECTION III - POLICY DETAIL, CONTINUED
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SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
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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.
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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"
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SECTION III - POLICY DETAIL, CONTINUED
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SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
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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
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AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
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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.
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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.
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(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 $24,870 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 VII
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.