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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, 2008 through October 31, 2009
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Global Aggregate
Bond Fund
- --------------------------------------------------------------------------------
Annual Report | October 31, 2009
- --------------------------------------------------------------------------------
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 31
Notes to Financial Statements 38
Report of Independent Registered Public Accounting Firm 47
Trustees, Officers and Service Providers 49
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have begun to recover this year from
one of their most tumultuous periods in history. This is a welcome relief, and
we are generally optimistic about the prospects for the economy going forward.
Still, challenges remain. Unemployment is high. Consumer demand and loan growth
are weak. And housing has not yet returned to normal.
At Pioneer, we have long advocated the benefits of investing for the long term.
This strategy has generally performed well for many investors. Those who
remained invested in the market during the downturn have most likely seen their
portfolios start to recover this year as the Dow Jones Industrial Average
climbed back towards the 10,000 level. Many bond investors have similarly seen
a strong rebound, with a broad-based recovery across many different fixed-income
asset classes. The riskiest asset classes, such as high-yield bonds, have
outperformed other fixed-income asset classes for most of 2009.
At Pioneer, we are not changing the approach to investing that we have used for
more than 80 years. We remain focused on company fundamentals and risk
management. Our investment process is based on careful research into individual
companies, 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 opportunities for making money in many corners
of the markets around the globe, it takes research and experience to separate
solid investment opportunities from speculation.
Following this difficult period, many investors are rethinking their approach
to investing and risk management. Some are questioning whether the basic
investment principles they were taught in the past are still useful in today's
markets. Complicating matters is that financial markets remain unpredictable.
Our advice, as always, is to work closely with a trusted financial advisor to
discuss your goals and work together to develop an investment strategy that
meets your individual needs. There is no single best strategy that works for
every investor.
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
2 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
www.pioneerinvestments.com. We greatly appreciate you putting your trust in us
and we thank you for investing with Pioneer.
Sincerely,
/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 | 10/31/09 3
Portfolio Management Discussion | 10/31/09
A meltdown in credit conditions disrupted fixed-income markets throughout the
world in the final months of 2008 and the first two months of 2009. As this
occurred, risk-averse investors moved toward the highest-quality securities and
currencies. The difficult market began to recover in early March 2009, however,
and prices of credit-exposed securities appreciated over most of the subsequent
eight months, as investors began to believe that credit problems could be
resolved and the global economy was not heading into another Great
Depression-type scenario. In the following discussion, Charles Melchreit
discusses the performance of Pioneer Global Aggregate Bond Fund during the 12
months ended October 31, 2009. 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 during the 12 months ended October 31, 2009?
A Pioneer Global Aggregate Bond Fund Class A shares generated a total return
of 21.58% at net asset value over the 12 months ended October 31, 2009,
while the Fund's benchmark, the Barclays Capital (formerly Lehman Brothers)
Global Aggregate Bond Index (the Barclays Index), returned 18.41%. During
the same period, the average return of the 131 mutual funds in Lipper's
Global Income Funds category was 21.19%. On October 31, 2009, the 30-day
SEC yield on the Fund's Class A shares was 2.73%.
Q How did you position the Fund at the height of market's turmoil back in
late 2008 and early 2009?
A While the world's credit markets went through a period of severe stress in
the final two months of 2008 and the first two months of 2009, we did not
believe the global economy was heading toward a global depression, despite
the failure or near-collapse of highly-leveraged but weak financial
institutions, most notably Lehman Brothers. We thought the markets were
populated by distressed investors, but not distressed securities. As a
consequence, as value-conscious investors, we saw some buying opportunities
and we increased the Fund's allocations to the credit sectors, including
both corporate bonds and mortgage-backed securities. We also thought the
credit markets in the United States appeared more attractive than in
Europe, where we believed several major financial institutions still faced
major asset write-downs. Early in the period, we also favored some of the
higher-quality currencies, including the Swiss franc, the Japanese yen and
the U.S. dollar. We believe this positioned the Fund well when credit
spreads -- or the yield differences between lower-quality and
higher-quality securities -- reached their peaks by early March 2009. As
major monetary authorities throughout
4 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
the world, including the U.S. Federal Reserve Board (the Fed), moved to
restore liquidity and ease trading in the global financial markets, credit-
related securities started recovering in price in March 2009 as credit
spreads started to narrow.
Q How did you manage the Fund as the credit markets started to recover?
A Throughout the remainder of the 12-month period, which ended on October 31,
2009, we continued to add to the Fund's positions in credit-related
securities. Early in the process, we focused on corporate bonds from the
industrials and utilities sectors. However, as the financial system began
to heal, we added to the Fund's exposure to the financial sector,
predominately in U.S. investment-grade corporate debt. To pay for these
increases, we cut the Fund's exposure to U.S. government agency mortgages,
beginning in early 2009. We thought those securities were richly priced and
offered poorer relative value after the Fed started to buy them. We also
added to the Fund's investments in foreign government bonds, most notably
in Europe and the United Kingdom.
Although the Fund had benefited from its heavy exposure to the U.S. dollar
early in the period, when the dollar strengthened in value compared to most
other major currencies, we began to increase the Fund's positions in the
euro and the British pound sterling. We also increased investments in
commodity-based currencies, such as those of Canada, Norway and Australia,
as we saw them as offering the greatest potential value against the U.S.
dollar.
At the end of the Fund's fiscal year (October 31, 2009), international
investment-grade securities -- primarily foreign government bonds --
accounted for 53.5% of the Fund's net assets, while U.S. investment-grade
corporate bonds and U.S. mortgage-backed securities accounted for 20.8% and
14.8% of assets, respectively. The Fund had 5.8% of assets invested in U.S.
Treasury and agency debt and 4.3% in U.S. high-yield corporate securities.
The average credit quality of the Fund's portfolio at the end of the period
was AA-.
Q What types of investments most influenced the Fund's results during the 12
months ended October 31, 2009?
A The Fund's positions in corporate debt had the greatest positive impact on
performance during the period, led by investments in the industrials,
financials and utilities sectors. The Fund's investments in longer-maturity
government debt of the United Kingdom also helped support performance. The
Fund also had positive returns from investments in U.S. commercial
mortgages, which began to recover as the period progressed.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 5
The top-performing individual investments for the Fund during the 12-month
period tended to be dominated by bonds from the financials sector, led by
securities of Goldman Sachs and Liberty Mutual in the United States and
Norway's Nordea Bank in Europe.
Holding back the Fund's results was an underweight position in the Japanese
yen, which outperformed the U.S. dollar, and a de-emphasis on European
corporate bonds, which performed relatively well. Individual investments
that detracted from the Fund's results included a high-yield bond issued by
PAETEC Holding, a telecommunication service provider to the corporate
market; a bond issued by PNC, a bank; and a Merrill Lynch mortgage
security.
Q What is your investment outlook?
A We think the U.S. dollar may continue to weaken against foreign currencies,
as it did late in the Fund's fiscal year ended October 31, 2009. As a
consequence, we have been placing emphasis on commodity-related currencies,
including Norway, Canada and Australia, where their economies should
benefit from rising global growth trends, especially in Asia. As investors
increase their appetites for risk, we also may see opportunities in
emerging market and European currencies.
We continue to see greater value in corporate bonds, than in government
bonds, and we expect longer-maturity corporates to perform well, despite
the potential for some market corrections. Looking at longer-term
historical trends, we think the yield spreads of corporate bonds make them
preferable to Treasuries, which have become relatively unattractive because
of current low yields resulting from the loosening of monetary policy by
the Fed.
Please refer to the Schedule of Investments on pages 15-30 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 and 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
6 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
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 Aggregate Bond Fund | Annual Report | 10/31/09 7
Portfolio Summary | 10/31/09
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[The following data is represented by a pie chart in the printed material.]
Foreign Government Bonds 40.0%
U.S. Corporate Bonds 35.4%
U.S. Government Securities 16.3%
Collateralized Mortgage Obligations 5.6%
Asset Backed Securities 1.0%
Municipal Bonds 0.9%
Convertible Corporate Bonds 0.5%
Preferred Stock 0.2%
Temporary Cash Investments 0.1%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of total debt holdings)*
1. Japan Government 5-Year, 1.2%, 3/20/12 4.37%
2. Federal Home Loan Mortgage Corp., 6.5%, 4/1/38 4.27
3. Federal Home Loan Mortgage Corp., 6.5%, 1/1/38 2.70
4. Deutschland Rep Bundes, 5.25%, 1/4/11 2.62
5. Federal Home Loan Mortgage Corp., 6.5%, 8/1/37 2.51
6. Japan Government 10-Year, 1.7%, 9/20/16 2.42
7. Canada Housing Trust, 3.55%, 9/15/13 2.25
8. Bonos Y Oblig Del Es, 4.4%, 1/31/15 2.13
9. U.S. Treasury Notes, 3.0%, 9/30/16 2.09
10. Bundesrepublik Deutschland, 6.5%, 7/4/27 2.01
* 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 | 10/31/09
Prices and Distributions | 10/31/09
Net Asset Value per Share
- --------------------------------------------------------------------------------
Class 10/31/09 10/31/08
A $ 10.84 $ 9.25
- --------------------------------------------
C $ 10.82 $ 9.23
- --------------------------------------------
Y $ 10.85 $ 9.25
- --------------------------------------------
Distributions per Share: 11/1/08-10/31/09
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
A $ 0.3677 $ -- $ --
- -------------------------------------------------------------------
C $ 0.2786 $ -- $ --
- -------------------------------------------------------------------
Y $ 0.3672 $ -- $ --
- -------------------------------------------------------------------
Index Definitions
- --------------------------------------------------------------------------------
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 | 10/31/09 9
Performance Update | 10/31/09 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 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, 2009)
- --------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------
Life-of-Class
(12/28/07) 8.01% 5.35%
1 Year 21.58 16.06
- --------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- --------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------
3.16% 1.00%
- --------------------------------------------------------------------
[The following data is represented by a mountain chart in the printed material.]
Value of $10,000 Investments
Barclays
Capital (formerly
Pioneer Global Lehman Brothers)
Aggregation Global Aggregate
Bond Fund Bond Index
12/07 9,550 10,000
10/08 9,100 9,589
10/09 11,064 11,354
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 sales charges been reflected. POP returns reflect
deduction of maximum 4.50% 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 3/1/12 for Class A shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of 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 | 10/31/09
Performance Update | 10/31/09 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 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, 2009)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
Life-of-Class
(12/28/07) 7.04% 7.04%
1 Year 20.55 20.55
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
3.84% 1.90%
- -------------------------------------------------------------------
[The following data is represented by a mountain chart in the printed material.]
Value of $10,000 Investments
Barclays
Capital (formerly
Pioneer Global Lehman Brothers)
Aggregation Global Aggregate
Bond Fund Bond Index
12/07 10,000 10,000
10/08 9,452 9,589
10/09 11,395 11,354
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 3/1/11 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 | 10/31/09 11
Performance Update| 10/31/09 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 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, 2009)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
Life-of-Class
(12/28/07) 8.10% 8.10%
1 Year 21.69 21.69
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
2.82% 2.82%
- -------------------------------------------------------------------
[The following data is represented by a mountain chart in the printed material.]
Value of $10,000 Investments
Barclays
Capital (formerly
Pioneer Global Lehman Brothers)
Aggregation Global Aggregate
Bond Fund Bond Index
12/07 10,000 10,000
10/08 9,536 9,589
10/09 11,604 11,354
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 | 10/31/09
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, 2009 through October 31, 2009.
Share Class A C Y
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 5/1/09
- --------------------------------------------------------------------------------
Ending Account Value $ 1,146.98 $ 1,142.22 $ 1,148.02
(after expenses) on 10/31/09
- --------------------------------------------------------------------------------
Expenses Paid $ 5.41 $ 10.21 $ 5.41
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.89%,
and 1.00% for Class A, Class C, and Class Y Shares respectively, multiplied
by the average account value over the period, multiplied by 184/365 (to
reflect the one-half year period)
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 13
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, 2009 through October 31, 2009.
Share Class A C Y
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 5/1/09
- --------------------------------------------------------------------------------
Ending Account Value $ 1,020.16 $ 1,015.68 $ 1,020.16
(after expenses) on 10/31/09
- --------------------------------------------------------------------------------
Expenses Paid $ 5.09 $ 9.60 $ 5.09
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.89%,
and 1.00% for Class A, Class C, and Class Y Shares respectively, multiplied
by the average account value over the period, multiplied by 184/365 (to
reflect the one-half year period)
14 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
Schedule of Investments | 10/31/09
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
CONVERTIBLE CORPORATE BONDS -- 0.4%
ENERGY -- 0.2%
Coal & Consumable Fuels -- 0.1%
20,000 BB-/NR Massey Energy Co., 3.25%, 8/1/15 $ 16,050
- ---------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.1%
10,000 BBB+/Baa2 Transocean Sedco, 1.625%, 12/15/37 $ 9,788
-----------
Total Energy $ 25,838
- ---------------------------------------------------------------------------------------------------
BANKS -- 0.2%
Regional Banks -- 0.2%
20,000 A/A3 National City Corp., 4.0%, 2/1/11 $ 20,250
-----------
Total Banks $ 20,250
- ---------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $39,090) $ 46,088
- ---------------------------------------------------------------------------------------------------
Shares
PREFERRED STOCK -- 0.2%
DIVERSIFIED FINANCIALS -- 0.2%
Diversified Financial Services -- 0.2%
25 Bank of America Corp., 7.25%, 12/31/49 $ 21,033
-----------
Total Diversified Financials $ 21,033
- ---------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $20,367) $ 21,033
- ---------------------------------------------------------------------------------------------------
Principal
Amount ($)
ASSET BACKED SECURITIES -- 1.0%
BANKS -- 0.8%
Thrifts & Mortgage Finance -- 0.8%
25,000 0.76 AA+/Aa1 Countrywide Asset Backed Certificates,
Floating Rate Note, 11/25/35 $ 20,473
6,902 5.07 AAA/Aaa Countrywide Asset-Backed Certificates,
Floating Rate Note, 12/25/35 6,583
14,841 0.43 A/B1 FFML 2006-FF4 A2, Floating Rate Note,
3/25/36 9,731
4,116 0.51 AAA/Aa2 GSAMP Trust, Floating Rate Note,
11/25/35 4,022
12,169 0.68 A/A2 GSAMP Trust, Floating Rate Note,
3/25/35 11,660
9,067 0.31 B/A2 Morgan Stanley ABS Capital I, Floating
Rate Note, 12/25/36 8,305
1,512 0.65 AA+/Aa2 Morgan Stanley Capital, Inc., Floating Rate
Note, 3/25/35 1,495
4,413 0.30 AAA/Aa2 Morgan Stanley Ixis Real Estate, Floating
Rate Note, 11/25/36 4,286
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 15
Schedule of Investments | 10/31/09 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Thrifts & Mortgage Finance -- (continued)
15,478 0.00 AAA/Aa2 SASC 2007-BC4 A3, Floating Rate Note,
11/25/37 $ 13,978
-----------
$ 80,533
-----------
Total Banks $ 80,533
- --------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.2%
Consumer Finance -- 0.1%
20,000 0.69 AA+/Aa1 RASC 2005-KS7 M1, Floating Rate Note,
8/25/35 $ 15,361
- --------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.1%
20,000 0.40 CCC/Caa3 MLMI 2006-AR1 A2C, Floating Rate Note,
3/25/37 $ 6,850
-----------
Total Diversified Financials $ 22,211
- --------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $113,836) $ 102,744
- --------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 5.1%
MATERIALS -- 0.6%
Forest Products -- 0.4%
50,000 AAA/Aaa TSTAR 2006-1A A, 5.668%, 10/15/36 $ 46,000
- --------------------------------------------------------------------------------------------------
Steel -- 0.2%
21,516 AAA/Aaa GMAC Mortgage Corp. Loan Trust, 5.5%,
11/25/33 $ 22,000
-----------
Total Materials $ 68,000
- --------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.2%
Diversified Support Services -- 0.2%
24,961 AAA/NR CW Capital Cobalt, Ltd., 5.174%,
8/15/48 $ 25,188
-----------
Total Commercial Services & Supplies $ 25,188
- --------------------------------------------------------------------------------------------------
BANKS -- 2.6%
Thrifts & Mortgage Finance -- 2.6%
21,364 NR/Aaa Banc of America Alternative Loan Trust,
5.5%, 9/25/33 $ 21,417
12,179 AAA/AAA Countrywide Alternative Loans Trust, 5.0%,
7/25/18 12,099
25,000 AAA/Aaa GS Mortgage Securities Corp. II, 7.12%,
11/18/29 26,849
30,243 AAA/Aa3 JPMorgan Mortgage Trust, 6.0%, 8/25/34 27,587
15,000 AAA/Aaa JPMCC 2002-C3 B, 5.146%, 7/12/35 14,852
41,270 AAA/Aaa JPMCC 2004-CB8 A1A, 4.158%, 1/12/39 39,828
25,000 NR/Ba1 SBA CMBS Trust, 6.709%, 11/15/36 24,813
The accompanying notes are an integral part of these financial statements.
16 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Thrifts & Mortgage Finance -- (continued)
7,722,908 0.15 AAA/Aaa Wachovia Bank Commercial Mortgage
Trust, Floating Rate Note, 6/15/45 $ 12,890
21,927 0.47 AAA/Aa1 WAMU Mortgage Pass-Through Certificate,
Floating Rate Note, 4/25/45 15,946
21,679 AAA/NR Wells Fargo Mortgage Backed Securities,
5.0%, 11/25/20 21,537
18,248 NR/Baa3 Wells Fargo Mortgage Backed Securities,
5.0%, 3/25/21 16,851
23,270 0.00 AAA/Aaa Wells Fargo Mortgage Backed Securities,
Floating Rate Note, 9/25/34 22,471
20,237 4.58 AAA/Aaa WFMBS 2003-N-1A1, Floating Rate Trust,
12/25/33 19,414
-----------
$ 276,554
-----------
Total Banks $ 276,554
- -------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.9%
Diversified Financial Services -- 0.8%
10,000 AAA/A2 CCI 2005 1A C, 5.074%, 6/15/35 $ 10,050
14,537 NR/A2 CMSI 2006-1 3A1, 5.0%, 2/25/36 12,906
40,280 AAA/AAA Master Alternative Loans Trust, 6.0%,
7/25/34 34,729
31,393 B/Ba2 RALI 2005-QA10 A41, 5.7412%, 9/25/35 21,787
-----------
$ 79,472
- -------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.1%
1,343,801 AAA/Aaa MSDWC 2000-1345 X, 0.7259%, 9/3/15 $ 6,802
-----------
Total Diversified Financials $ 86,274
- -------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.3%
Mortgage Real Estate Investment Trusts -- 0.3%
28,378 AAA/Aaa CS First Boston Mortgage Security, 3.5%,
7/25/18 $ 27,218
-----------
Total Real Estate $ 27,218
- -------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.5%
Government -- 0.5%
50,000 AAA/Aaa FHR 3211 PB, 5.5%, 2/15/33 $ 52,844
-----------
Total Government $ 52,844
- -------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $547,198) $ 536,078
- -------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 32.4%
ENERGY -- 3.9%
Integrated Oil & Gas -- 0.3%
25,000 BBB+/Baa1 Marathon Oil Corp., 5.9%, 3/15/18 $ 26,881
- -------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 17
Schedule of Investments | 10/31/09 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Oil & Gas Drilling -- 0.5%
50,000 BBB+/Baa2 Transocean Sedco, 1.5%, 12/15/37 $ 48,938
- --------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.3%
25,000 BBB+/Baa1 Weatherford International, Ltd., 9.625%,
3/1/19 $ 30,951
- --------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.6%
10,000 BBB/Baa2 Canadian Natural Resource, Ltd., 5.9%,
2/1/18 $ 10,767
50,000 BB/Ba3 Chesapeake Energy Corp., 9.5%, 2/15/15 54,125
-----------
$ 64,892
- --------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.5%
25,000 BBB/Baa2 Spectra Energy Capital LLC, 6.2%,
4/15/18 $ 26,951
20,000 BBB/Baa2 Valero Energy Corp., 9.375%, 3/15/19 23,671
-----------
$ 50,622
- --------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.7%
25,000 BBB/Baa2 Buckeye Partners LP, 6.05%, 1/15/18 $ 26,418
25,000 BBB/Baa2 DCP Midstream, 9.75%, 3/15/19 29,866
40,000 BB/Ba1 Enterprise Products Operating LP, 7.0%,
6/1/67 36,000
10,000 BBB/Baa2 Kinder Morgan Energy, 5.95%, 2/15/18 10,505
30,000 BBB-/Baa3 NGPL Pipeco LLC, 6.514%, 12/15/12
(144A) 32,774
25,000 BBB-/Baa3 Plains All America Pipeline LP, 6.125%,
1/15/17 26,310
10,000 BBB+/A3 Questar Pipeline Co., 5.83%, 2/1/18 10,523
10,000 A-/A3 Trans-Canada Pipelines, 7.125%,
1/15/09 11,890
-----------
$ 184,286
-----------
Total Energy $ 406,570
- --------------------------------------------------------------------------------------------------
MATERIALS -- 1.8%
Commodity Chemicals -- 0.2%
20,000 B-/B1 Nova Chemicals Corp., 8.375%, 11/1/16
(144A) $ 20,100
- --------------------------------------------------------------------------------------------------
Construction Materials -- 0.0%
5,000 BBB/Baa2 Holcim, Ltd., 6.0%, 12/30/19 (144A) $ 5,156
- --------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.5%
25,000 5.88 BBB-/Ba2 Freeport-McMoran Copper & Gold, Inc.,
Floating Rate Note, 4/1/15 $ 25,276
25,000 BBB+/Baa1 Rio Tinto Finance Plc, 8.95%, 5/1/14 29,547
-----------
$ 54,823
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Fertilizers & Agricultural Chemicals -- 0.4%
40,000 BBB/Baa2 Agrium, Inc., 6.75%, 1/15/19 $ 43,864
- --------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.3%
25,000 BBB-/Baa3 Cytec Industries, Inc., 8.95%, 7/1/17 $ 29,264
- --------------------------------------------------------------------------------------------------
Steel -- 0.4%
30,000 BBB/Baa3 ArcelorMittal, 6.125%, 6/1/18 $ 29,631
10,000 BBB/Baa2 Commercial Metals Co., 7.35%, 8/15/18 10,636
-----------
$ 40,267
-----------
Total Materials $ 193,474
- --------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 1.5%
Aerospace & Defense -- 0.4%
10,000 BB/Ba3 DigitalGlobeM, Inc., 10.5%, 5/1/14 $ 10,800
30,000 BB/Ba2 Esterline Tech, 6.625%, 3/1/17 28,725
-----------
$ 39,525
- --------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.1%
10,000 BBB/Baa3 Cummins, Inc., 6.75%, 2/15/27 $ 8,318
- --------------------------------------------------------------------------------------------------
Electrical Component & Equipment -- 0.2%
25,000 B+/Ba2 Belden CDT, Inc., 7.0%, 3/15/17 $ 24,125
- --------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.2%
15,000 AA+/Aa2 GE Electric Co., 5.0%, 2/1/13 $ 15,973
10,000 BBB+/Baa1 Tyco International Finance SA, 8.5%,
1/15/19 12,197
-----------
$ 28,170
- --------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.2%
15,000 BBB+/Baa1 Ingersoll-Rand Global Holding, Ltd., 9.5%,
4/15/14 $ 17,999
- --------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.4%
40,000 BBB+/Baa1 GATX Financial Corp., 6.0%, 2/15/18 $ 38,745
-----------
Total Capital Goods $ 156,882
- --------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.3%
Office Services & Supplies -- 0.3%
25,000 A/A1 Pitney Bowes, Inc., 5.6%, 3/15/18 $ 26,647
-----------
Total Commercial Services & Supplies $ 26,647
- --------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.8%
Railroads -- 0.8%
25,000 BBB/Baa1 Burlington Northern Santa Fe Corp.,
5.75%, 3/15/18 $ 27,048
50,000 BBB/Baa2 Union Pacific Corp., 5.7%, 8/15/18 53,748
-----------
$ 80,796
-----------
Total Transportation $ 80,796
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 19
Schedule of Investments | 10/31/09 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
CONSUMER DURABLES & APPAREL -- 0.2%
Household Appliances -- 0.2%
25,000 BBB-/Baa3 Whirlpool Corp., 5.5%, 3/1/13 $ 25,736
-----------
Total Consumer Durables & Apparel $ 25,736
- ---------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.0%
Casinos & Gaming -- 0.3%
25,000 BBB/Baa2 International Game Technology, 7.5%,
6/15/19 $ 27,630
- ---------------------------------------------------------------------------------------------------
Education Services -- 0.7%
30,000 AAA/Aaa Leland Stanford Junior University, 4.75%,
5/1/19 $ 31,304
40,000 AAA/Aaa President & Fellows of Harvard, 3.7%,
4/1/13 41,532
-----------
$ 72,836
-----------
Total Consumer Services $ 100,466
- ---------------------------------------------------------------------------------------------------
MEDIA -- 0.7%
Broadcasting -- 0.3%
5,000 BBB+/Baa1 News America, Inc., 5.65%, 8/15/20
(144A) $ 5,179
26,312 CCC/Caa2 Univision Communications, 9.75%,
3/15/15 (144A) PIK 20,392
-----------
$ 25,571
- ---------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.4%
25,000 BBB/Baa1 British Sky Broadcasting Group Plc, 6.1%,
2/15/18 (144A) $ 26,718
10,000 BBB/Baa2 Time Warner Cable, Inc., 8.25%, 4/1/19 12,029
5,000 BBB/Baa2 Time Warner Cable, Inc., 8.75%, 2/14/19 6,167
-----------
$ 44,914
-----------
Total Media $ 70,485
- ---------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.4%
Brewers -- 0.2%
20,000 BBB+/Baa2 Anheuser-Busch InBev Worldwide, Inc.,
7.75% 1/15/19 (144A) $ 23,306
- ---------------------------------------------------------------------------------------------------
Tobacco -- 0.2%
25,000 BBB/Baa1 UST, Inc., 5.75%, 3/1/18 $ 23,977
-----------
Total Food, Beverage & Tobacco $ 47,283
- ---------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.5%
Health Care Facilities -- 0.1%
10,000 BB/Ba3 HCA, Inc., 8.5%, 4/15/19 $ 10,600
5,000 BB-/B2 HCA, Inc., 9.125%, 11/15/14 5,175
-----------
$ 15,775
- ---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Managed Health Care -- 0.4%
40,000 A-/Baa1 United Health Group, Inc., 4.875%,
2/15/13 $ 41,754
-----------
Total Health Care Equipment & Services $ 57,529
- -----------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 0.3%
Biotechnology -- 0.3%
25,000 BBB+/Baa3 Biogen Idec, Inc., 6.0%, 3/1/13 $ 26,562
-----------
Total Pharmaceuticals & Biotechnology $ 26,562
- -----------------------------------------------------------------------------------------------
BANKS -- 7.1%
Diversified Banks -- 5.2%
80,000 5.18 AA-/Aa2 BNP Paribas SA, Floating Rate Note,
10/17/16 $ 112,266
80,000 5.16 A+/A1 DnB NOR Bank ASA, Floating Rate Note,
9/28/15 112,057
100,000 5.22 A+/Aa3 Intesa Sanpaolo S.p.A., Floating Rate
Note, 2/8/16 139,339
85,000 AAA/Aaa International Bank Recon & Development,
5.75%, 10/21/19 72,740
80,000 3.63 A-/A3 Standard Chartered Plc, Floating Rate
Note, 2/3/17 115,291
-----------
$ 551,693
- -----------------------------------------------------------------------------------------------
Regional Banks -- 1.9%
25,000 BBB+/A3 KeyBank NA, 5.8%, 7/1/14 $ 24,605
15,000 BBB+/Baa1 Keycorp, 6.5%, 5/14/13 15,609
25,000 A+/Aa3 Mellon Funding Corp., 5.5%, 11/15/18 26,210
65,000 8.25 BBB/Baa2 PNC Funding Corp., Floating Rate Note,
5/29/49 65,174
20,000 AA-/Aa3 Wachovia Bank NA, 6.0%, 11/15/17 21,144
50,000 A-/Ba3 Wells Fargo & Co., Floating Rate Note,
12/29/49 46,500
-----------
$ 199,242
-----------
Total Banks $ 750,935
- -----------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.0%
Asset Management & Custody Banks -- 0.3%
25,000 A-/A3 Eaton Vance Corp., 6.5%, 10/2/17 $ 26,534
- -----------------------------------------------------------------------------------------------
Consumer Finance -- 1.0%
30,000 BB+/Baa3 American General Finance, Inc., 6.9%,
12/15/17 $ 20,878
35,000 A+/A1 American Honda Finance Corp., 6.7%,
10/1/13 (144A) 38,257
10,000 BBB/Baa1 Capital One Financial Corp., 7.375%,
5/23/14 11,350
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 21
Schedule of Investments | 10/31/09 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Consumer Finance -- (continued)
25,000 A/A2 Caterpillar Financial, Inc., 7.05%,
10/1/18 $ 28,954
-----------
$ 99,439
- ---------------------------------------------------------------------------------------------------
Diversified Financial Services -- 0.9%
15,000 AA+/Aa2 General Electric Capital Corp., 4.0%,
2/15/12 $ 15,254
25,000 A+/Aa3 JPMorgan Chase & Co., 6.0%, 1/15/18 26,766
50,000 BBB+/A2 JPMorgan Chase & Co., 7.9%, 4/29/49 50,277
-----------
$ 92,297
- ---------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 1.7%
110,000 5.79 BBB/A3 Goldman Sachs Capital, Floating Rate
Note, 12/29/49 $ 81,813
50,000 A/A2 Merrill Lynch & Co., 5.45%, 2/5/13 52,286
45,000 A/A2 Morgan Stanley Dean Witter, Floating Rate
Note, 4/1/18 48,233
-----------
$ 182,332
- ---------------------------------------------------------------------------------------------------
Specialized Finance -- 1.1%
41,000 BBB/Baa3 Cantor Fitzgerald LP, 7.875%, 10/15/19 $ 41,285
48,497 NR/Ba1 Coso Geothermal Power Holdings LLC,
7.0%, 7/15/26 (144A) 40,738
35,000 BBB+/Baa3 International Lease Finance Corp.,
6.375%, 3/25/13 (b) 27,683
10,000 A+/A1 National Rural Utilities Corp., 5.45%,
2/1/18 10,582
-----------
$ 120,288
-----------
Total Diversified Financials $ 520,890
- ---------------------------------------------------------------------------------------------------
INSURANCE -- 3.7%
Insurance Brokers -- 0.2%
25,000 BB+/B1 Leucadia National Corp., 7.125%,
3/15/17 (144A) $ 23,625
- ---------------------------------------------------------------------------------------------------
Life & Health Insurance -- 1.2%
15,000 A-/Baa2 Lincoln National Corp., 8.75%, 7/1/19 $ 17,465
35,000 BBB/Baa1 MetLife, Inc., 10.75%, 8/1/39 42,417
45,000 A-/Baa2 Protective Life Corp., 7.375%, 10/15/19 45,086
25,000 A/Baa2 Prudential Financial, Inc., 5.15%, 1/15/13 26,238
-----------
$ 131,206
- ---------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 1.5%
80,000 6.75 A-/A3 AXA SA, Floating Rate Trust, 12/15/20 $ 120,168
45,000 7.00 BB/Baa3 Liberty Mutual Group, Inc., 7.0%,
3/15/37 (144A) 35,676
-----------
$ 155,844
- ---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Property & Casualty Insurance -- 0.2%
25,000 BB-/Ba1 The Hanover Insurance Group, Inc.,
8.207%, 2/3/27 $ 20,750
- ----------------------------------------------------------------------------------------------------
Reinsurance -- 0.6%
20,000 AAA/Aa2 Berkshire Hathaway, Inc., 5.0%, 8/15/13 $ 21,714
40,000 BBB+/BBB+ Platinum Underwriters Holdings, Ltd.,
7.5%, 6/1/17 38,387
-----------
$ 60,101
-----------
Total Insurance $ 391,526
- ----------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.3%
Diversified Real Estate Activities -- 0.4%
35,000 A-/A2 WEA Finance LLC, 7.125%, 4/15/18 $ 36,146
- ----------------------------------------------------------------------------------------------------
Diversified Real Estate Investment Trusts -- 0.4%
40,000 BBB+/Baa1 Dexus Finance Pty, Ltd., 7.125%,
10/15/14 $ 40,388
- ----------------------------------------------------------------------------------------------------
Office Real Estate Investment Trusts -- 0.2%
25,000 BBB/Baa2 Mack-Cali Realty LP, 5.125%, 2/15/14 $ 24,056
- ----------------------------------------------------------------------------------------------------
Specialized Real Estate Investment Trusts -- 0.3%
10,000 BBB-/Baa2 Health Care REIT, Inc., 6.2%, 6/1/16 $ 9,997
25,000 BBB/Baa2 Hospitality Properties Trust, 7.875%,
8/15/14 25,711
-----------
$ 35,708
-----------
Total Real Estate $ 136,298
- ----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.7%
Data Processing & Outsourced Services -- 0.4%
40,000 B-/Caa1 First Data Corp., 9.875%, 9/24/15
(144A) $ 36,900
- ----------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.3%
25,000 B-/B2 Terremark Worldwide, Inc., 12.0%,
6/15/17 $ 27,625
-----------
Total Software & Services $ 64,525
- ----------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.1%
Computer Storage & Peripherals -- 0.1%
10,000 BB+/Ba1 Seagate Technology International Co., Ltd.,
10.0%, 5/1/14 $ 11,100
-----------
Total Technology Hardware & Equipment $ 11,100
- ----------------------------------------------------------------------------------------------------
SEMICONDUCTORS -- 0.2%
Semiconductor Equipment -- 0.2%
25,000 BBB/Baa1 Klac Instruments Corp., 6.9%, 5/1/18 $ 26,209
-----------
Total Semiconductors $ 26,209
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 23
Schedule of Investments | 10/31/09 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
TELECOMMUNICATION SERVICES -- 1.7%
Alternative Carriers -- 0.1%
10,000 CCC+/Caa1 Paetec Holdings, 9.5%, 7/15/15 $ 9,150
- ------------------------------------------------------------------------------------------------
Integrated Telecommunication Services -- 1.3%
20,000 BBB-/Baa3 Embarq Corp., 7.082%, 6/1/16 $ 21,849
15,000 BB/Ba2 Frontier Communications Corp.. 8.25%,
5/1/14 15,450
20,000 A-/A1 Qtel International FIN, Ltd., 6.5%,
6/10/14 22,242
50,000 A-/Baa1 Telefonica Emisiones SAU, 5.496%,
4/1/16 79,984
-----------
$ 139,525
- ------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.3%
35,000 B+/Ba2 Cricket Communications, Inc., 7.75%,
5/15/16 (144A) $ 34,913
-----------
Total Telecommunication Services $ 183,588
- ------------------------------------------------------------------------------------------------
UTILITIES -- 1.2%
Electric Utilities -- 0.9%
10,000 BBB+/Baa1 CenterPoint Energy Houston Electric LLC,
7.0%, 3/1/14 $ 11,280
10,000 A-/Baa1 Commonwealth Edison, 6.15%, 9/15/17 11,053
25,000 BBB+/Baa2 New York State Gas and Electric Corp.,
6.15%, 12/15/17 (144A) 25,409
35,000 BB+/Baa3 Public Service of New Mexico, 7.95%,
5/15/18 35,775
10,000 BBB+/Baa1 West Penn Power Co., 5.95%, 12/15/17 10,530
-----------
$ 94,047
- ------------------------------------------------------------------------------------------------
Independent Power Producer & Energy Traders -- 0.3%
40,000 BBB-/Baa3 Panoche Energy Center LLC, 6.885%,
7/31/29 (144A) $ 36,974
-----------
Total Utilities $ 131,021
- ------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $3,204,837) $ 3,408,522
- ------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 14.9%
241,478 AAA/Aaa Federal Home Loan Mortgage Corp., 6.5%,
1/1/38 $ 259,277
382,379 AAA/Aaa Federal Home Loan Mortgage Corp., 6.5%,
4/1/38 410,564
226,439 AAA/Aaa Federal Home Loan Mortgage Corp., 6.5%,
8/1/37 241,169
25,000 AAA/Aaa U.S. Treasury Bonds, 6.25%, 8/15/23 31,004
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
U.S. Government Agency Obligations -- (continued)
55,478 AAA/Aaa U.S. Treasury Inflation Notes, 1.875%,
7/15/15 $ 58,160
200,000 AAA/Aaa U.S. Treasury Notes, 3.0%, 9/30/16 200,531
100,000 AAA/Aaa U.S. Treasury Notes, 3.125%, 5/15/19 97,859
165,000 AAA/Aaa U.S. Treasury Notes, 3.25%, 6/30/16 168,764
30,000 AAA/Aaa U.S. Treasury Notes, 4.25%, 5/15/39 30,070
10,000 AAA/Aaa U.S. Treasury Notes, 4.5%, 5/15/38 10,445
25,000 AAA/Aaa U.S. Treasury Notes, 8.75%, 8/25/17 56,620
-----------
$ 1,564,463
- --------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $1,519,382) $ 1,564,463
- --------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 36.5%
EURO 25,000 AAA/Aaa Austria Government Bonds, 4.15%,
3/15/37 $ 35,555
EURO 50,000 AA+/Aa1 Belgium Government Bonds, 4.0%,
3/28/14 78,132
EURO 25,000 AA+/Aa1 Belgium Government Bonds, 5.5%,
3/28/28 42,342
EURO 50,000 AA+/Aa1 Belgium Government Bonds, 5.75%,
9/28/10 76,856
EURO 129,000 AA+/Aaa Bonos Y Oblig Del Es, 4.4%, 1/31/15 204,704
EURO 100,000 AAA/Aaa Bundesrepublik Deutschland, 6.5%,
7/4/27 192,835
EURO 110,000 A+/Aa2 Buoni Poliennali DE, 4.75%, 2/1/13 174,651
CAD 225,000 AAA/Aaa Canada Housing Trust, 3.55%, 9/15/13 216,223
DKK 170,000 AAA/Aaa Denmark Government Bonds, 4.0%,
11/15/15 35,138
DKK 75,000 AAA/Aaa Denmark Government Bonds, 6.0%,
11/15/11 16,082
EURO 163,000 AAA/Aaa Deutschland Rep Bundes, 5.25%, 1/4/11 252,224
EURO 100,000 AAA/Aaa France Government Bonds, 3.0%,
10/25/15 148,853
EURO 25,000 AAA/Aaa France Government Bonds, 4.0%,
10/25/38 35,752
EURO 67,000 AAA/Aaa Government of France, 3.75%, 4/25/21 99,090
EURO 25,000 A-/A1 Hellenic Republic Government, 3.6%,
7/20/16 36,275
EURO 50,000 A+/Aa2 Italy Buoni Polienna, 3.75%, 8/1/16 76,089
EURO 25,000 A+/Aa2 Italy Buoni Polienna, 6.5%, 11/1/27 44,762
JPY 20,000,000 AA/Aa2 Japan Government 10-Year, 1.7%,
9/20/16 232,930
JPY 17,000,000 AA/Aa3 Japan Government 20-Year, 1.5%,
3/20/19 191,575
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 25
Schedule of Investments | 10/31/09 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Foreign Government Bonds -- (continued)
JPY 2,500,000 AA/Aa2 Japan Government 30-Year, 2.3%,
12/20/36 $ 28,021
JPY 37,000,000 AA/Aa2 Japan Government 5-Year, 1.2%,
3/20/12 419,687
10,000 A/A2 Korea Development Bank, 5.3%, 1/17/13 10,359
EURO 100,000 NR/Aaa Netherlands Government, 4.25%,
7/15/13 157,930
EURO 91,000 NR/Aaa Netherlands Government, 5.5%, 1/15/28 156,967
NOK 150,000 AAA/Aaa Norway Government Bonds, 4.25%,
5/19/17 26,750
NOK 275,000 AAA/Aaa Norway Government Bonds, 5.0%,
5/15/15 51,005
EURO 50,000 AAA/Aaa Republic of Austria, 4.35%, 3/15/19 78,034
EURO 110,000 AAA/Aaa Republic of Austria, 4.3%, 7/15/14 174,021
EURO 100,000 AA+/Aaa Spain Government Bonds, 4.1%, 7/30/18 153,076
SEK 200,000 AAA/Aaa Sweden Government Bonds, 3.75%,
8/12/17 29,462
SEK 150,000 AAA/Aaa Sweden Government Bonds, 4.5%,
8/12/15 23,043
GBP 50,000 AAA/NR United Kingdom Gilt, 2.25%, 3/7/14 80,869
GBP 46,000 AAA/Aaa United Kingdom Treasury, 4.25%,
12/7/27 77,238
GBP 29,000 AAA/Aaa United Kingdom Treasury, 4.75%, 3/7/20 51,812
GBP 22,000 AAA/Aaa United Kingdom Treasury, 4.75%, 6/7/10 37,093
GBP 25,000 AAA/Aaa United Kingdom Treasury, 4.75%, 9/7/15 45,162
GBP 30,000 AAA/Aaa United Kingdom Treasury, 5.0%, 9/7/14 54,363
-----------
$ 3,844,960
- ------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $3,580,289) $ 3,844,960
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 0.8%
Municipal Higher Education -- 0.8%
50,000 AAA/Aa3 California State University Revenue, 5.0%,
11/1/39 $ 49,524
25,000 AAA/Aaa Connecticut State Health & Education,
5.0%, 7/1/42 26,041
10,000 AAA/Aaa Massachusetts Health & Educational
Facilities, 5.5%, 7/1/36 11,105
-----------
$ 86,670
- ------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $83,521) $ 86,670
- ------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
TEMPORARY CASH INVESTMENTS -- 0.1%
SECURITIES LENDING COLLATERAL -- 0.1% (c)
Certificates of Deposit:
397 Bank of Nova Scotia, 0.25%, 11/17/09 $ 397
419 BNP Paribas NY, 0.3%, 11/17/09 419
264 Rabobank Nederland NY, 0.24%,
12/11/09 264
264 Societe Generale, 0.27%, 12/4/09 264
194 Nordea NY, 0.21%, 12/22/09 194
264 Toronto Dominion, 0.23%, 12/16/09 264
-----------
$ 1,802
- ---------------------------------------------------------------------------------------------
Commercial Paper:
444 BBVA London, 0.29%, 11/6/09 $ 444
264 CBA Financial, 0.27%, 12/29/09 264
264 HND AF, 0.3%, 12/15/09 264
220 HSBC, 0.24%, 12/2/09 220
44 HSBC, 0.24%, 12/3/09 44
396 NABPP, 0.29%, 12/7/09 396
264 Cafco, 0.4%, 12/9/09 264
154 Char FD, 0.3%, 11/2/09 154
132 Ciesco, 0.33%, 11/23/09 132
132 Ciesco, 0.25%, 12/7/09 132
220 ABB LLC, 0.59%, 12/28/09 220
220 BCS FUN, 0.60%, 12/29/09 220
220 Kithaw, 0.23%, 11/3/09 220
220 Ranger, 0.24%, 12/11/09 220
129 TB LLC, 0.20%, 12/10/09 129
220 GE, 0.23%, 12/28/09 220
154 Santander U.S. Debt, 0.37%, 11/20/09 154
-----------
$ 3,697
- ---------------------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
1,278 Deutsche Bank, 0.06%, 11/2/09 $ 1,278
977 Barclays Capital Markets, 0.05%,
11/2/09 977
-----------
$ 2,255
- ---------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 27
Schedule of Investments | 10/31/09 (continued)
Floating S&P/Moody's
Rate (d) Ratings
Shares (unaudited) (unaudited) Value
Money Market Mutual Funds:
176 Dreyfus Preferred Money Market Fund $ 176
220 Fidelity Prime Money Market Fund 220
-----------
$ 396
-----------
Total Securities Lending Collateral $ 8,150
- -----------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $8,150) $ 8,150
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 91.4%
(Cost $9,116,670)(a)(e) $ 9,618,708
- -----------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 8.6% $ 912,218
- -----------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $10,522,778
- -----------------------------------------------------------------------------------------
NR Security not rated by S&P or Moody's.
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, 2009, the value of these securities amounted to $406,117 or
3.9% of total net assets.
(a) At October 31, 2009, the net unrealized gain on investments based on cost
for federal income tax purposes of $9,116,670 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 642,852
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (140,814)
----------
Net unrealized gain $ 502,038
----------
(b) At October 31, 2009, the following security was out on loan:
Shares Security Value
10,000 International Lease Finance Corp., 6.375%, 3/25/13 $7,900
- ------------------------------------------------------------------------------
(c) Securities lending collateral is managed by Credit Suisse AG, New York
Branch.
(d) Debt obligation with a variable interest rate. Rate shown is rate at end
of period.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
(e) Distributions of investment by country of issue, as a percentage of total
investment in securities (excluding temporary cash investments), is as
follows:
United States 48.3%
Japan 9.1
United Kingdom 5.7
France 5.4
Germany 4.6
Spain 4.6
Italy 4.5
Netherlands 3.3
Canada 3.2
Austria 3.0
Norway 2.0
Belgium 2.0
Other (individually less than 1%) 4.3
- ---------------------------------------------------
100.0%
- ---------------------------------------------------
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
denoted:
CAD Canadian Dollar
DKK Danish Kroner
EURO Euro
GBP British Pound Sterling
JPY Japanese Yen
NOK Norwegian Krone
SEK Swedish Krone
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 2009 aggregated $3,451,653 and $2,117,533,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 29
Schedule of Investments | 10/31/09 (continued)
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of October 31, 2009, in
valuing the Fund's assets:
Level 1 Level 2 Level 3 Total
Convertible Corporate Bonds $ -- $ 46,088 $-- $ 46,088
Preferred Stock 21,033 -- -- 21,033
Asset Backed Securities -- 102,744 -- 102,744
Collateralized Mortgage Obligations -- 536,078 -- 536,078
Corporate Bonds -- 3,408,522 -- 3,408,522
U.S. Government Agency Obligations -- 1,564,463 -- 1,564,463
Foreign Government Bonds -- 3,844,960 -- 3,844,960
Municipal Bonds -- 86,670 -- 86,670
Temporary Cash Investments -- 7,754 -- 7,754
Money Market Mutual Funds 396 -- -- 396
- --------------------------------------------------------------------------------------------
Total $21,429 $9,597,279 $-- $9,618,708
- --------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
Statement of Assets and Liabilities | 10/31/09
ASSETS:
Investment in securities, at fair value
(including securities loaned of $7,900) (cost $9,116,670) $ 9,618,708
Cash 7,481
Foreign currencies, at value (cost $771,544) 800,376
Receivables --
Fund shares sold 21,778
Interest 128,740
Due from Pioneer Investment Management, Inc. 10,580
Other 26,955
- -------------------------------------------------------------------------------------
Total assets $10,614,618
- -------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 1,415
Dividends 15,748
Upon return of securities loaned 8,150
Variation margin 40
Due to affiliates 1,557
Accrued expenses 64,930
- -------------------------------------------------------------------------------------
Total liabilities $ 91,840
- -------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 9,956,658
Undistributed net investment income 45,306
Accumulated net realized loss on investments, foreign currency
transactions and futures contracts (12,735)
Net unrealized gain on investments 502,038
Net unrealized gain on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies 31,511
- -------------------------------------------------------------------------------------
Total net assets $10,522,778
- -------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $5,433,650/501,239 shares) $ 10.84
Class C (based on $3,280,540/303,069 shares) $ 10.82
Class Y (based on $1,808,588/166,666 shares) $ 10.85
MAXIMUM OFFERING PRICE:
Class A ($10.84 [divided by] 95.5%) $ 11.35
- -------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 31
Statement of Operations
For the Year Ended 10/31/09
INVESTMENT INCOME:
Dividends $ 1,813
Interest (net of foreign taxes withheld of $1,706) 391,020
Income from securities loaned, net 520
- -----------------------------------------------------------------------------------------------------
Total investment income $ 393,353
- -----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 40,732
Transfer agent fees and expenses
Class A 5,840
Class C 1,965
Class Y 31
Distribution fees
Class A 9,870
Class C 25,433
Shareholder communication expense 1,935
Administrative reimbursements 3,408
Custodian fees 4,149
Registration fees 42,687
Professional fees 62,398
Printing expense 39,100
Fees and expenses of nonaffiliated trustees 6,913
Miscellaneous 1,715
- -----------------------------------------------------------------------------------------------------
Total expenses $ 246,176
Less fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (142,095)
- -----------------------------------------------------------------------------------------------------
Net expenses $ 104,081
- -----------------------------------------------------------------------------------------------------
Net investment income $ 289,272
- -----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (10,104)
Futures contracts 62,449
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (6,549) $ 45,796
- -----------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $1,158,682
Futures contracts (22,413)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies 103,112 $1,239,381
- -----------------------------------------------------------------------------------------------------
Net gain on investments, futures contracts, and foreign currency
transactions $1,285,177
- -----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $1,574,449
- -----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
Statements of Changes in Net Assets
For the Year Ended 10/31/09 and the period ended 10/31/08, respectively
12/28/07
(Commencement
Year Ended of Operations) to
10/31/09 10/31/08
FROM OPERATIONS:
Net investment income $ 289,272 $ 198,880
Net realized gain (loss) on investments, futures contracts, and
foreign currency transactions 45,796 (77,902)
Change in net unrealized gain (loss) on investments, futures
contracts, and foreign currency transactions 1,239,381 (705,832)
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ 1,574,449 $ (584,854)
- -----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.37 and $0.18 per share, respectively) $ (145,178) $ (73,064)
Class C ($0.28 and $0.12 per share, respectively) (71,344) (33,384)
Class Y ($0.37 and $0.18 per share, respectively) (61,201) (31,099)
Net realized gain:
Class A ($0.00 and $0.02 per share, respectively) -- (7,405)
Class C ($0.00 and $0.02 per share, respectively) -- (4,910)
Class Y ($0.00 and $0.02 per share, respectively) -- (2,984)
Tax return of capital
Class A ($0.00 and $0.05 per share, respectively) -- (20,377)
Class C ($0.00 and $0.05 per share, respectively) -- (13,931)
Class Y ($0.00 and $0.05 per share, respectively) -- (8,350)
- -----------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (277,723) $ (195,504)
- -----------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 3,432,436 $ 7,401,879
Reinvestment of distributions 94,404 73,332
Cost of shares repurchased (1,942,145) (2,386,831)
- -----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 1,584,695 $ 5,088,380
- -----------------------------------------------------------------------------------------------------
Net increase in net assets $ 2,881,421 $ 4,308,022
NET ASSETS:
Beginning of year 7,641,357 3,333,335
- -----------------------------------------------------------------------------------------------------
End of year $10,522,778 $ 7,641,357
- -----------------------------------------------------------------------------------------------------
Undistributed (accumulated) net investment income (loss) $ 45,306 $ (24,633)
- -----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 33
Statements of Changes in Net Assets (continued)
'09 Shares '09 Amount '08 Shares '08 Amount
Class A
Shares sold 230,227 $2,345,229 570,340 $5,815,358
Reinvestment of distributions 7,467 75,053 5,600 56,004
Less shares repurchased (128,680) (1,244,381) (183,715) (1,835,801)
- -----------------------------------------------------------------------------------------------
Net increase 109,014 $1,175,901 392,225 $4,035,561
- -----------------------------------------------------------------------------------------------
Class C
Shares sold 106,781 $1,087,207 321,052 $3,253,191
Reinvestment of distributions 1,935 19,351 1,725 17,328
Less shares repurchased (73,309) (697,764) (55,115) (551,030)
- -----------------------------------------------------------------------------------------------
Net increase 35,407 $ 408,794 267,662 $2,719,489
- -----------------------------------------------------------------------------------------------
Class Y
Shares sold -- $ -- 166,666 $1,666,665
- -----------------------------------------------------------------------------------------------
Net increase -- $ -- 166,666 $1,666,665
- -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
Financial Highlights
12/28/07 (a)
(Commencement
Year Ended of Operations)
10/31/09 to 10/31/08
Class A
Net asset value, beginning of period $ 9.25 $ 10.00
- ------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.39 $ 0.25
Net realized and unrealized gain (loss) on investments 1.57 (0.75)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ 1.96 $ (0.50)
Distributions to shareowners:
Net investment income (0.37) (0.18)
Net realized gain -- (0.02)
Tax return of capital -- (0.05)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.59 $ (0.75)
- ------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.84 $ 9.25
- ------------------------------------------------------------------------------------------------
Total return* 21.58% (5.18)%***
Ratio of net expenses to average net assets 1.00% 1.00%**
Ratio of net investment income to average net assets 3.83% 3.23%**
Portfolio turnover rate 28% 46%***
Net assets, end of period (in thousands) $ 5,434 $ 3,628
Ratios with no waiver of fees and assumption of expenses by the
Adviser:
Net expenses 2.90% 3.16%**
Net investment income 1.93% 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, 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 | 10/31/09 35
Financial Highlights (continued)
12/28/07 (a)
(Commencement
Year Ended of Operations)
10/31/09 to 10/31/08
Class C
Net asset value, beginning of period $ 9.23 $ 10.00
- ------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.29 $ 0.18
Net realized and unrealized gain (loss) on investments 1.58 (0.76)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ 1.87 $ (0.58)
Distributions to shareowners:
Net investment income (0.28) (0.12)
Net realized gain -- (0.02)
Tax return of capital -- (0.05)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.59 $ (0.77)
- ------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.82 $ 9.23
- ------------------------------------------------------------------------------------------------
Total return* 20.55% (5.95)%***
Ratio of net expenses to average net assets 1.89% 1.90%**
Ratio of net investment income to average net assets 2.94% 2.29%**
Portfolio turnover rate 28% 46%***
Net assets, end of period (in thousands) $ 3,281 $ 2,471
Ratios with no waiver of fees and assumption of expenses by the
Adviser:
Net expenses 3.57% 3.84%**
Net investment income 1.26% 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, 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.
36 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
12/28/07 (a)
(Commencement
Year Ended of Operations)
10/31/09 to 10/31/08
Class Y
Net asset value, beginning of period $ 9.25 $ 10.00
- ------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.38 $ 0.27
Net realized and unrealized gain (loss) on investments 1.59 (0.77)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ 1.97 $ (0.50)
Distributions to shareowners:
Net investment income (0.37) (0.18)
Net realized gain -- (0.02)
Tax return of capital -- (0.05)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.60 $ (0.75)
- ------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.85 $ 9.25
- ------------------------------------------------------------------------------------------------
Total return* 21.69% (5.12)%***
Ratio of net expenses to average net assets 1.00% 0.89%**
Ratio of net investment income to average net assets 3.83% 3.22%**
Portfolio turnover rate 28% 46%***
Net assets, end of period (in thousands) $ 1,809 $ 1,542
Ratios with no waiver of fees and assumption of expenses by the
Adviser:
Net expenses 2.48% 2.82%**
Net investment income 2.35% 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.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 37
Notes to Financial Statements | 10/31/09
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. The Fund is 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 designated as 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 identical rights (based
on relative net asset values) to assets and liquidation proceeds. Share classes
can bear different rates of class-specific fees and expenses such as transfer
agent and distribution fees. Differences in class-specific fees and expenses
will result in differences in net investment income and, therefore, the payment
of different dividends from net investment income earned by each class. The
Amended and Restated Declaration of Trust of the Fund gives the Board the
flexibility to specify either per-share voting or dollar-weighted voting when
submitting matters for shareholder approval. Under per-share voting, each share
of a class of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
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 contain unaudited information
regarding the Fund's principal risks. Please refer to those documents when
considering the Fund's principal risks.
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
38 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
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
non-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.
The Fund's prospectuses contain unaudited information regarding the Fund's
principal risks. Please refer to those documents when considering the Fund's
principal risks.
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 period. Actual results could differ from those estimates.
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:
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. Fixed
income securities with remaining maturity of more than sixty days are
valued at prices supplied by independent pricing services, which consider
such factors as market prices, market events, quotations from one or more
brokers, Treasury spreads, yields, maturities and ratings. Valuations may
be supplemented by dealers and other sources, as required. Securities for
which independent pricing services are unable to supply prices or for which
market prices and/or quotations are not readily available or are considered
to be unreliable are valued using fair value methods pursuant to procedures
adopted by the Board of Trustees.
The Fund may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset
value. Thus, the valuation of the Fund's securities may differ from
exchange prices. At October 31, 2009, there were no securities that were
valued using fair value methods (other than securities valued using prices
supplied by independent pricing services). Short-term fixed income
securities with remaining maturities of sixty days or less generally are
valued at amortized cost.
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 39
securities are amortized or accreted in proportion to the monthly paydowns.
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.
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. 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 may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized 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).
40 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
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 for the prior three fiscal years are subject to examination by tax
authorities.
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, 2009, the Fund has reclassified $58,390 to increase
undistributed net investment income and $58,390 to increase accumulated net
realized loss on investments to reflect permanent book/tax differences. The
reclassification has no impact on the net asset value of the Fund and is
designed to present the Fund's capital accounts on a tax basis.
At October 31, 2009, the Fund had a net capital loss carryforward of
$12,735 which will expire in 2017 if not utilized.
The tax character of distributions paid during the years ended October 31,
2009 and October 31, 2008 was as follows:
2009 2008
Distributions paid from:
Ordinary income $277,723 $152,846
Return of capital -- 42,658
- -----------------------------------------------------------
Total $277,723 $195,504
- -----------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2009:
2009
Distributable earnings:
Undistributed ordinary income $ 61,054
Capital loss carryforward (12,735)
Dividend payable (15,748)
Unrealized appreciation 533,549
- ----------------------------------------------------
Total $ 566,120
- ----------------------------------------------------
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
41
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 approximately $882 in underwriting commissions on the
sale of Class A shares during the year ended October 31, 2009.
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 its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services, are allocated among the classes
of shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, and Class Y shares can
reflect 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 securities loan
transaction, the Fund typically receives cash collateral from the borrower
equal to at least the value of the securities loaned, which is invested in
temporary investments. Credit Suisse AG, New York Branch, as the Fund's
securities lending agent, manages the Fund's securities lending collateral.
The income earned on the investment of collateral is shared with the
borrower and the lending agent in payment of any rebate due to the borrower
with respect to the securities loan, and in compensation for the lending
agent's services to the Fund. The Fund also continues to receive payments
in lieu of dividends or interest on the securities loaned. Gain or loss on
the value of the loaned securities that may occur during the term of the
loan will be for the account of the Fund. The amount of the collateral is
required to be adjusted daily to reflect any price fluctuation in the value
of the loaned securities. The Fund has the
42 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
right, under the lending agreement, to terminate the loan and recover the
securities from the borrower with prior notice. The Fund is required to
return the cash collateral to the borrower and could suffer a loss if the
value of the collateral, as invested, has declined.
H. Futures Contracts
The Fund may enter into futures transactions to hedge against changes in
interest rates, securities prices and currency exchange rates or to seek to
increase total return. Futures contracts are types of derivatives and are
traded on a futures exchange. 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. Futures contracts are subject to market
risk, interest rate risk and currency exchange rate risk. 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. With futures,
there is minimal counterparty credit risk to the Fund since futures are
exchange-traded and the exchange's clearinghouse, as counterparty to all
exchange-traded futures, guarantees the futures against default. At October
31, 2009 there were no open futures contracts. The average number of
contracts open during the year ended October 31, 2009 was 4.
I. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian or a subcustodian of the
Fund. The Fund's investment adviser, Pioneer Investment Management, Inc.
(PIM), is responsible for determining that the value of the collateral
remains at least equal to the repurchase price.
2. Management Agreement
PIM, a wholly-owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.50% of
the Fund's average daily net assets.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 43
PIM has contractually agreed to limit ordinary operating expenses of the Fund
to the extent required to reduce 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, 2012 for
Class A shares and through March 1, 2011 for Class C shares. There can be no
assurance that PIM will extend the expense limitation agreement for any class
of shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$161 in management fees, administrative costs and certain other reimbursements
payable to PIM at October 31, 2009.
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.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the year ended October 31, 2009, such out-of-pocket expenses by class of
shares were as follows:
Shareholder Communications:
Class A $1,252
Class C 562
Class Y 121
- ---------------------------------------------
Total $1,935
- ---------------------------------------------
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $1,143 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 2009.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A and Class C shares.
Pursuant to the Plan, the Fund pays PFD 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 also 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
44 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
services with regard to Class C shares. Included in "Due to affiliates"
reflected on the Statement of Assets and Liabilities is $253 in distribution
fees payable to PFD at October 31, 2009.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase (within 12 months for purchases made on or after
April 1, 2009). 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. Shares purchases as part of an exchange remain subject
to any CDSC that applied to the original purchase of those shares. There is no
CDSC for Class Y shares. Proceeds from the CDSCs are paid to PFD. For the year
ended October 31, 2009, 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 year ended October 31, 2009, the Fund's expenses
were not reduced under such arrangements.
6. Forward Foreign Currency Contracts
During the year ended October 31, 2009, the Fund had entered into various
forward foreign currency contracts that obligate the Fund to deliver or take
delivery of currencies at specified future maturity dates. Alternatively, prior
to the settlement date of a forward foreign currency contract, the Fund may
close out such contract by entering into an offsetting contract. At October 31,
2009, the Fund had no outstanding forward foreign currency contracts. The
average number of contracts open during the year ended October 31, 2009 was
160,869.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 45
7. Additional Disclosures about Derivative Instruments and Hedging Activities
The effect of derivative instruments on the Statement of Operations for the
year ended October 31, 2009 was as follows:
Derivatives Not Accounted Change in
for as Hedging Unrealized
Instruments Under Realized Gain Gain or
Accounting Standards or (Loss) (Loss) on
Codification (ASC) 815 on Derivatives Derivatives
(formerly FASB Statement Location of Gain or (Loss) On Recognized Recognized
133) Derivatives Recognized in Income in Income in Income
Foreign Exchange Contracts Net realized gain (loss) on forward $ (8,252)
foreign currency contracts and other
assets and liabilities denominated in
foreign currencies
Foreign Exchange Contracts Change in unrealized gain (loss) on $ (8,983)
forward foreign currency contracts and
other assets and liabilities denominated
in foreign currencies
Interest Rate Futures Net realized gain (loss) on futures $ 62,449
contracts
Interest Rate Futures Change in unrealized gain (loss) on $ (22,413)
futures contracts
8. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure through
December 21, 2009 and has determined that there were no subsequent events
requiring recognition or disclosure in the financial statements.
46 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
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, 2009, and the related statements of operations for the year then ended, and
the statements of changes in net assets and the financial highlights for each
of the periods indicated within. 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, 2009, by correspondence with
the custodian and brokers. 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 Aggregate Bond Fund at October 31, 2009, the results of its
operations for the year then ended, and the changes in its net assets and the
financial highlights for each of the periods indicated therein, in conformity
with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 21, 2009
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 47
ADDITIONAL INFORMATION (unaudited)
The percentages of the Fund's ordinary income distributions that are exempt
from nonresident alien (NRA) tax withholding resulting from qualified interest
income and qualified short term gains were 62.13% and 0%, respectively.
48 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
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 62
U.S. registered investment portfolios for which Pioneer serves as investment
adviser (the "Pioneer Funds"). Mr. West serves as a Trustee of 47 U.S.
registered investment portfolios for which Pioneer serves as investment
adviser. 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 | 10/31/09 49
Interested Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
John F. Cogan, Jr. (83)* Chairman of the Board, Trustee since 2007.
Trustee and President Serves until a successor
trustee is elected or
earlier retirement or
removal.
- --------------------------------------------------------------------------------
Daniel K. Kingsbury (51)* Trustee and Executive Trustee since 2007.
Vice President 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
John F. Cogan, Jr. (83)* 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 (51)* 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);
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.
50 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
Independent Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
David R. Bock (65) Trustee Trustee since 2007.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------
Mary K. Bush (61) Trustee Trustee since 2007.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
David R. Bock (65) Managing Partner, Federal City Capital Advisors (boutique mer- Director of Enterprise Com-
chant bank) (1997 to 2004 and 2008 - present); and Executive munity Investment, Inc.
Vice President and Chief Financial Officer, I-trax, Inc. (publicly (privately-held affordable
traded health care services company) (2004 - 2007) housing finance company);
Director of New York Mort-
gage Trust (publicly traded
mortgage REIT); and Direc-
tor of Oxford Analytica, Inc.
(privately-held research and
consulting company)
- -------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (61) President, Bush International, LLC (international financial Director of Marriott Interna-
advisory 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 Company
Institute
- -------------------------------------------------------------------------------------------------------------------------
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 51
Independent Trustees (continued)
Position Held Length of Service
Name and Age with the Fund and Term of Office
Benjamin M. Friedman (65) Trustee Trustee since 2008.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -----------------------------------------------------------------------
Margaret B.W. Graham (62) Trustee Trustee since 2007.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -----------------------------------------------------------------------
Thomas J. Perna (59) Trustee Trustee since 2007.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -----------------------------------------------------------------------
Marguerite A. Piret (61) Trustee Trustee since 2007.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -----------------------------------------------------------------------
Stephen K. West (81) Trustee Trustee since 2007.
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 (65) 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 (62) Founding Director, Vice-President and Corporate Secretary, The None
Winthrop Group, Inc. (consulting firm); and Desautels Faculty of
Management, McGill University
- ----------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (59) Chief Executive Officer, Quadriserv, Inc. (technology products for None
securities lending industry) (2008 - present); Private investor
(2004 - 2008); and Senior Executive Vice President, The Bank of
New York (financial and securities services) (1986 - 2004)
- ----------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (61) 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 (81) Senior Counsel, Sullivan & Cromwell LLP (law firm) Director, The Swiss Helvetia
Fund, Inc. (closed-end
investment company)
- ----------------------------------------------------------------------------------------------------------------------------------
52 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
Fund Officers
Position Held Length of Service
Name and Age with the Fund and Term of Office
Dorothy E. Bourassa (61) Secretary Since 2007. Serves at
the discretion of the
Board
- -------------------------------------------------------------------------------
Christopher J. Kelley (44) Assistant Secretary Since 2007. Serves at
the discretion of the
Board
- -------------------------------------------------------------------------------
Mark E. Bradley (49) Treasurer Since 2008. Serves at
the discretion of the
Board
- -------------------------------------------------------------------------------
Luis I. Presutti (44) Assistant Treasurer Since 2007. Serves at
the discretion of the
Board
- -------------------------------------------------------------------------------
Gary Sullivan (51) Assistant Treasurer Since 2007. Serves at
the discretion of the
Board
- -------------------------------------------------------------------------------
David F. Johnson (29) Assistant Treasurer Since 2009. Serves at
the discretion of the
Board
- -------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (61) 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 (44) Associate General Counsel of Pioneer since January 2008 None
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 (49) 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 (44) Assistant Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (51) Fund Accounting Manager - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------
David F. Johnson (29) Fund Administration Manager - Fund Accounting, Administration None
and Controllership Services since November 2008 and Assistant
Treasurer of all of the Pioneer Funds since January 2009; Client
Service Manager - Institutional Investor Services at State Street
Bank from March 2003 to March 2007
- ------------------------------------------------------------------------------------------------------------------------
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 53
Fund Officers (continued)
Position Held
Name and Age with the Fund
Teri W. Anderholm (50) Chief Compliance
Officer
- -----------------------------------------------------------------------------------------------------------
Length of Service
Name and Age and Term of Office
Teri W. Anderholm (50) Since 2007. Serves at
the discretion of the
Board
- ------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
Teri W. Anderholm (50) 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)
- ----------------------------------------------------------------------------------------------------------------------------------
The outstanding capital stock of PFD, Pioneer and Pioneer Investment Management Shareholder Services, Inc.
("PIMSS") is indirectly wholly owned by UniCredit S.p.A. ("UniCredit"), one of the largest banking groups in Italy.
Pioneer, the Fund's investment adviser, provides investment management and financial services to mutual funds,
institutional and other clients.
54 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
This page for your notes.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 55
This page for your notes.
56 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
This page for your notes.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 57
This page for your notes.
58 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
This page for your notes.
Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09 59
This page for your notes.
60 Pioneer Global Aggregate Bond Fund | Annual Report | 10/31/09
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
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, 2009
- --------------------------------------------------------------------------------
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 23
Notes to Financial Statements 27
Report of Independent Registered Public Accounting Firm 36
Trustees, Officers and Service Providers 38
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have begun to recover this year from
one of their most tumultuous periods in history. This is a welcome relief, and
we are generally optimistic about the prospects for the economy going forward.
Still, challenges remain. Unemployment is high. Consumer demand and loan growth
are weak. And housing has not yet returned to normal.
At Pioneer, we have long advocated the benefits of investing for the long term.
This strategy has generally performed well for many investors. Those who
remained invested in the market during the downturn have most likely seen their
portfolios start to recover this year as the Dow Jones Industrial Average
climbed back towards the 10,000 level. Many bond investors have similarly seen
a strong rebound, with a broad-based recovery across many different fixed-income
asset classes. The riskiest asset classes, such as high-yield bonds, have
outperformed other fixed-income asset classes for most of 2009.
At Pioneer, we are not changing the approach to investing that we have used for
more than 80 years. We remain focused on company fundamentals and risk
management. Our investment process is based on careful research into individual
companies, 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 opportunities for making money in many corners
of the markets around the globe, it takes research and experience to separate
solid investment opportunities from speculation.
Following this difficult period, many investors are rethinking their approach
to investing and risk management. Some are questioning whether the basic
investment principles they were taught in the past are still useful in today's
markets. Complicating matters is that financial markets remain unpredictable.
Our advice, as always, is to work closely with a trusted financial advisor to
discuss your goals and work together to develop an investment strategy that
meets your individual needs. There is no single best strategy that works for
every investor.
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
2 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
www.pioneerinvestments.com. We greatly appreciate you putting your trust in us
and we thank you for investing with Pioneer.
Sincerely,
/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 | 10/31/09 3
Portfolio Management Discussion | 10/31/09
In the following interview, portfolio managers Harald Staudinger and Michael
Rachor discuss the factors in the performance of Pioneer Global Diversified
Equity Fund during the 12 months ended October 31, 2009.
Q What factors influenced the market's overall performance during the 12
months ended October 31, 2009?
A The global equity markets closed the Fund's fiscal year, as of October 31,
2009, with strong gains, masking the high level of volatility and the
dramatically shifting investment environment that characterized the first
half of the period, from the fall of 2008 through the late winter of 2009.
In particular, the first four months of the period (November 1, 2008,
through March 1, 2009) were notable for exceptionally poor market
performance, as deteriorating economic conditions prompted investors to
flee equities in favor of safer alternatives. However, the investment
environment improved dramatically in mid-March 2009, as aggressive stimulus
programs by governments and central banks worldwide spurred a dramatic and
broad-based rally in the global equity markets. The rebound for the
markets, which continued through most of the remainder of the Fund's fiscal
year through October 31, 2009, helped to erase a significant portion of the
losses incurred during the late 2008/early 2009 period of market
turbulence.
Q How did the Fund perform during the 12 months ended October 31, 2009?
A Pioneer Global Diversified Equity Fund Class A shares returned 21.89% at
net asset value over the 12 months ended October 31, 2009, while the Fund's
benchmark, the Morgan Stanley Capital International (MSCI) World Index,
returned 19.21%.
Q Can you review your management style for the Fund?
A Our process of selecting securities for the Fund's portfolio 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 companies that are low priced and that carry the
potential to surprise investors with improved performance. In broad terms,
we are seeking to benefit from the tendency of most 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, the
companies are subjected to fundamental analysis by our research team.
4 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
Fundamental factors that we examine include the strength of the company's
business model and balance-sheet composition, as well as the outlook for
its industry sector. In performing our analysis, the goal is to avoid
holding companies in the Fund's portfolio that are justifiably inexpensive.
Ultimately, we seek to build a portfolio of solid stocks for which
investors have unreasonably low expectations, and then to exit the
positions once investor expectations become inflated.
Q What elements of the Fund's positioning helped and hurt performance during
the 12 months ended October 31, 2009?
A Of the contributing factors to the Fund's performance over the 12-month
period, stock selection was by far the greatest contributor, followed by
our "put" option overlay. ("Put" options are contracts that give the
purchaser the "option" to sell a stock at a pre-determined, set price. If
the stock's actual price declines to below the pre-determined price during
the contract period, the investor can exercise the option and sell the
stock at the higher, pre-determined price, or simply sell the now
more-valuable options contract to another options investor at a premium,
and thus make a profit; if the stock's price increases to above the
pre-determined price during the contract period, the investor either
exercises the option and sells the stock at the lower price spelled out in
the contract or lets the options contract expire, thus suffering a loss.)
Sector and industry allocation and the Fund's currency plays detracted
slightly from performance.
In terms of individual industries, one of the largest contributions to
performance during the 12-month period came from the Fund's overweight to
and stock selection within capital goods. Top performers for the Fund's
holdings in capital goods during the period included Andritz and Metso.
Stock selection within technology hardware & equipment also added to the
Fund's returns over the 12-month period. Weakness stemming from positions
in Oracle and NEC was offset by favorable performance from Motorola, which
outperformed its larger mobile phone competitor, Nokia. In the banking
sector, despite a negative contribution from the Fund's position in Mellon
Bank, Societe Generale and Santander both added to relative performance
during the 12 months ended October 31, 2009. In the third quarter (July 1,
2009, through September 30, 2009), we increased the Fund's diversification
within the banking sector, seeing opportunity in financial issues such as
Deutsche Bank, Citi and Axa.
The largest detractor from the Fund's returns during the 12 months ended
October 31, 2009, came from a relatively large cash position held during
the overall period; the cash position stemmed from our cautious approach
coming out of the global financial crisis. In addition, portfolio
underweights to retailing and stock selection in pharmaceuticals,
biotechnology and life
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 5
sciences -- including the Fund's position in Genzyme -- detracted from
returns.
There have been no major changes to our portfolio strategy since the early
part of 2009, when valuations looked so attractive that we believed we
could best capture return through individual stock picking rather than by
making significant sector bets. The strategy has proved successful for the
Fund.
In terms of the Fund's regional positioning, the portfolio remains
underweight to the U.S. (where we feel valuations are too high), relatively
neutral to Europe, and overweight to Asia, Japan and the emerging markets,
compared with the MSCI World benchmark. In terms of sector allocations, we
have been emphasizing areas that are economically sensitive in order to
benefit from any further stabilization in the global economic environment.
Q Do you have any closing thoughts?
A We feel that in the coming months global economic conditions will continue
to improve, despite continued market volatility. Over the longer term, our
research has shown that low valuation stocks have outperformed supposedly
"higher-quality" stocks over time, which should benefit our investment
approach for the Fund. We believe that the markets are still in the early
stages of a normalization process. The relative performance of the value
factors that we look for (such as low price-to-book and low price-to-sales
ratios) bottomed out in March 2009, but has since bounced back. We believe
the trend will continue, and it should benefit our investment approach over
the next three to five years.
Please refer to the Schedule of Investments on pages 12-22 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.
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 sectors.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes.
6 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
Portfolio Summary | 10/31/09
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[The following data is represented by a pie chart in the printed material.]
International Common Stocks 59.2%
U.S. Common Stocks 39.5%
Depositary Receipts for International Stocks 0.9%
International Preferred Stocks 0.4%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[The following data is represented by a line chart in the printed material.]
United States 38.4%
Japan 13.7%
Germany 5.9%
France 5.8%
United Kingdom 4.4%
Netherlands 4.2%
Spain 3.3%
Switzerland 3.2%
Austria 2.9%
People's Republic of China 2.1%
Hong Kong 2.0%
Austrialia 2.0%
Italy 1.8%
Norway 1.7%
Bermuda 1.6%
Finland 1.5%
Singapore 1.5%
Taiwan 1.3%
Russia 1.0%
Other (individually less than 1%) 1.7%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Motorola, Inc. 1.53%
2. El Paso Corp. 1.41
3. Marathon Oil Corp. 1.28
4. Computer Sciences Corp. * 1.28
5. International Paper Co. 1.23
6. McKesson Corp. 1.21
7. China Petroleum & Chemical Corp. 1.15
8. Yue Yuen Industrial Holdings, Ltd. 1.13
9. Oracle Corp. 1.13
10. DSM NV 1.08
* 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 | 10/31/09 7
Prices and Distributions | 10/31/09
Net Asset Value per Share
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class 10/31/09 10/31/08
- --------------------------------------------------------------------------------
A $7.45 $6.15
- --------------------------------------------------------------------------------
Distributions per Share: 11/1/08-10/31/09
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- --------------------------------------------------------------------------------
A $0.0368 $ -- $ --
- --------------------------------------------------------------------------------
8 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
Performance Update | 10/31/09 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, 2009)
- --------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------
Life-of-Class
(6/3/08) -18.44% -18.44%
- --------------------------------------------------------------------
1 Year 21.89 14.80
- --------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- ---------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------
8.95% 1.30%
- --------------------------------------------------------------------
[The following data is represented by a mountain chart in the printed material.]
Value of $10,000 Investment
Pioneer Global
Diversified MSCI
Equity Fund World Index
6/08 9,425 10,000
10/08 6,360 6,878
10/09 7,752 8,199
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 3/1/12 for Class A shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
The Morgan Stanley Capital International (MSCI) World 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 | 10/31/09 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 in (1) above by the 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 Diversified Equity Fund
Based on actual returns from May 1, 2009 through October 31, 2009.
Share Class A
Beginning Account Value on 5/01/09 $ 1,000.00
- --------------------------------------------------------------------
Ending Account Value (after expenses) on 10/31/09 $ 1,189.29
- --------------------------------------------------------------------
Expenses Paid During Period* $ 7.17
- --------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.30%,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the partial year period).
10 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
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 May 1, 2009 through October 31, 2009.
Share Class A
Beginning Account Value on 5/01/09 $ 1,000.00
- -------------------------------------------------------------------
Ending Account Value (after expenses) on 10/31/09 $ 1,018.65
- -------------------------------------------------------------------
Expenses Paid During Period* $ 6.61
- -------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.30%,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the partial year period).
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 11
Schedule of Investments | 10/31/09
Shares Value
PREFERRED STOCK -- 0.4%
AUTOMOBILES & COMPONENTS -- 0.4%
Automobile Manufacturers -- 0.4%
88 Volkswagen AG* $ 8,770
- -----------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $12,849) $ 8,770
- -----------------------------------------------------------
COMMON STOCKS -- 93.4%
ENERGY -- 12.4%
Integrated Oil & Gas -- 7.8%
1,211 BP Amoco Plc $ 11,410
28,000 China Petroleum & Chemical Corp. 24,291
693 Eni S.p.A. 17,246
347 Gazprom (A.D.R.)* 8,364
201 Lukoil Holding OAO (A.D.R.) 11,716
851 Marathon Oil Corp. 27,206
208 OMV AG* 8,468
479 Origin Energy, Ltd. 6,926
771 Repsol SA 20,516
656 Royal Dutch Shell SA 19,503
315 Total SA 18,837
----------
$ 174,483
- -----------------------------------------------------------
Oil & Gas Drilling -- 0.9%
88 Diamond Offshore Drilling, Inc. $ 8,382
276 Fred Olsen Energy Asa* 10,985
----------
$ 19,367
- -----------------------------------------------------------
Oil & Gas Equipment & Services -- 0.9%
440 Aker Asa* $ 11,794
142 Fugro NV-CVA* 7,942
----------
$ 19,736
- -----------------------------------------------------------
Oil & Gas Refining & Marketing -- 1.5%
414 Neste Oil Oyj* $ 7,355
2,000 Nippon Mitsubishi Oil Corp.* 10,059
947 Valero Energy Corp. 17,141
----------
$ 34,555
- -----------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.3%
3,052 El Paso Corp. $ 29,940
----------
Total Energy $ 278,081
- -----------------------------------------------------------
MATERIALS -- 8.3%
Construction Materials -- 0.3%
92 Holcim, Ltd.* $ 5,878
- -----------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
12 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
Shares Value
Diversified Chemical -- 3.3%
181 Akzo Nobel $ 10,731
325 BASF AG 17,459
960 Orica, Ltd. 20,704
332 PPG Industries, Inc. 18,735
56 Solvay SA 5,514
----------
$ 73,143
- --------------------------------------------------------
Industrial Gases -- 0.3%
51 L'Air Liquide SA $ 5,509
- --------------------------------------------------------
Paper Packaging -- 0.5%
128 Mayr-Melnhof Karton AG $ 12,083
- --------------------------------------------------------
Paper Products -- 1.5%
1,172 International Paper Co. $ 26,147
300 Nippon Unipac Holding* 8,035
----------
$ 34,182
- --------------------------------------------------------
Specialty Chemicals -- 1.0%
519 DSM NV $ 22,790
- --------------------------------------------------------
Steel -- 1.4%
2,409 BHP Steel, Ltd.* $ 6,565
56 Salzgitter AG 5,050
571 Voestalpine AG 19,610
----------
$ 31,225
----------
Total Materials $ 184,810
- --------------------------------------------------------
CAPITAL GOODS -- 9.6%
Aerospace & Defense -- 1.3%
399 Finmeccanica S.p.A. $ 6,727
216 General Dynamics Corp. 13,543
148 United Technologies Corp. 9,095
----------
$ 29,365
- --------------------------------------------------------
Building Products -- 0.5%
2,000 Nippon Sheet Glass Co., Ltd.* $ 6,069
258 Wienerberger AG* 4,683
----------
$ 10,752
- --------------------------------------------------------
Construction & Engineering -- 0.7%
801 KBR, Inc. $ 16,396
- --------------------------------------------------------
Construction & Farm Machinery & Heavy
Trucks -- 0.5%
1,000 Hino Motors, Ltd. $ 3,785
100 Man AG 8,242
----------
$ 12,027
- --------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 13
Schedule of Investments | 10/31/09 (continued)
Shares Value
Electrical Component & Equipment -- 1.1%
1,000 Panasonic Electric Works Co., Ltd.* $ 12,913
102 Schneider Electric SA 10,656
----------
$ 23,569
- ---------------------------------------------------------------
Industrial Conglomerates -- 1.1%
312 Philips Electronics NV $ 7,875
197 Rheinmetall AG 10,719
2,396 Tomkins Plc 6,613
----------
$ 25,207
- ---------------------------------------------------------------
Industrial Machinery -- 3.1%
1,000 Amada Co., Ltd.* $ 6,284
285 Andritz AG 15,778
308 Danaher Corp. 21,015
1,047 IMI Plc 7,426
417 Metso Oyj* 11,655
91 Schindler Holding AG 6,238
----------
$ 68,396
- ---------------------------------------------------------------
Trading Companies & Distributors -- 1.3%
1,000 Itochu Corp* $ 6,526
1,000 Marubeni Corp. 5,108
1,000 Mitsui & Co., Ltd.* 13,533
400 Sumitomo Corp.* 3,996
----------
$ 29,163
----------
Total Capital Goods $ 214,875
- ---------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.8%
Human Resource & Employment Services -- 0.8%
178 Randstad Holding NV* $ 6,783
238 Watson Wyatt Worldwide, Inc. 10,372
----------
$ 17,155
----------
Total Commercial Services & Supplies $ 17,155
- ---------------------------------------------------------------
TRANSPORTATION -- 2.1%
Air Freight & Couriers -- 0.3%
439 Deutsche Post AG $ 7,436
- ---------------------------------------------------------------
Airlines -- 1.3%
572 Deutsche Lufthansa AG $ 8,813
2,000 Singapore Airlines, Ltd. 19,423
----------
$ 28,236
- ---------------------------------------------------------------
Marine -- 0.2%
1,000 Nippon Yusen Kabushiki Kaisha* $ 3,780
- ---------------------------------------------------------------
Railroads -- 0.3%
2 West Japan Railway Co* $ 7,130
----------
Total Transportation $ 46,582
- ---------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
Shares Value
AUTOMOBILES & COMPONENTS -- 4.1%
Auto Parts & Equipment -- 1.9%
400 Aisin Seiki Co., Ltd.* $ 10,545
300 Denso Corp.* 8,455
500 Toyoda Gosei Co., Ltd. 14,486
300 Toyota Industries Corp. 8,360
----------
$ 41,846
- -------------------------------------------------------------
Automobile Manufacturers -- 1.7%
4,000 Fuji Heavy Industries, Ltd. $ 16,161
500 Honda Motor Co., Ltd.* 16,004
197 PSA Peugeot* 6,450
----------
$ 38,615
- -------------------------------------------------------------
Motorcycle Manufacturers -- 0.1%
300 Yamaha Motor Co., Ltd.* $ 3,677
- -------------------------------------------------------------
Tires & Rubber -- 0.4%
500 Bridgestone Corp. $ 8,465
----------
Total Automobiles & Components $ 92,603
- -------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 2.4%
Consumer Electronics -- 0.7%
1,000 Sharp Corp. $ 11,002
200 Sony Corp. 6,175
----------
$ 17,177
- -------------------------------------------------------------
Footwear -- 1.1%
8,500 Yue Yuen Industrial Holdings, Ltd. $ 23,886
- -------------------------------------------------------------
Leisure Products -- 0.6%
472 Hasbro, Inc. $ 12,871
----------
Total Consumer Durables & Apparel $ 53,934
- -------------------------------------------------------------
MEDIA -- 1.4%
Movies & Entertainment -- 1.4%
660 Time Warner, Inc. $ 19,879
385 Vivendi SA 10,727
----------
$ 30,606
----------
Total Media $ 30,606
- -------------------------------------------------------------
RETAILING -- 0.5%
General Merchandise Stores -- 0.5%
226 Target Corp. $ 10,945
----------
Total Retailing $ 10,945
- -------------------------------------------------------------
FOOD & DRUG RETAILING -- 3.3%
Drug Retail -- 1.0%
645 CVS/Caremark Corp. $ 22,769
- -------------------------------------------------------------
Food Distributors -- 0.9%
764 Sysco Corp. $ 20,208
- -------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 15
Schedule of Investments | 10/31/09 (continued)
Shares Value
Food Retail -- 1.4%
200 FamilyMart Co., Ltd.* $ 5,998
200 Seven & I Holdings Co., Ltd.* 4,443
862 Supervalu, Inc. 13,680
917 Tesco Plc 6,143
----------
$ 30,264
----------
Total Food & Drug Retailing $ 73,241
- -----------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.6%
Agricultural Products -- 1.8%
645 Archer Daniels Midland Co. $ 19,427
26,880 Chaoda Modern Agriculture, Ltd. 20,996
----------
$ 40,423
- -----------------------------------------------------------------
Packaged Foods & Meats -- 1.2%
370 The J.M. Smucker Co. $ 19,510
223 Unilever NV-CVA 6,897
----------
$ 26,407
- -----------------------------------------------------------------
Soft Drinks -- 0.9%
344 PepsiCo, Inc. $ 20,829
- -----------------------------------------------------------------
Tobacco -- 0.7%
549 Altria Group, Inc. $ 9,942
194 British American Tobacco Plc* 6,300
----------
$ 16,242
----------
Total Food, Beverage & Tobacco $ 103,901
- -----------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.3%
Household Products -- 0.3%
119 Reckitt Benckiser Plc* $ 5,939
----------
Total Household & Personal Products $ 5,939
- -----------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.0%
Health Care Distributors -- 1.1%
438 McKesson Corp. $ 25,724
- -----------------------------------------------------------------
Health Care Equipment -- 1.3%
273 Baxter International, Inc. $ 14,758
382 Medtronic, Inc.* 13,637
----------
$ 28,395
- -----------------------------------------------------------------
Health Care Services -- 0.6%
287 Fresenius Medical Care AG $ 13,929
----------
Total Health Care Equipment & Services $ 68,048
- -----------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 6.1%
Biotechnology -- 0.4%
171 Amgen, Inc.* $ 9,188
- -----------------------------------------------------------------
Life Sciences Tools & Services -- 0.7%
334 Thermo Fisher Scientific, Inc.* $ 15,030
- -----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
Shares Value
Pharmaceuticals -- 5.0%
300 Abbott Laboratories, Ltd. $ 15,171
200 Astellas Pharma, Inc.* 7,490
295 Eli Lilly & Co. 10,033
280 Johnson & Johnson Co. 16,534
290 Novartis AG 15,196
815 Pfizer, Inc. 13,879
76 Roche Holdings AG 12,216
281 Sanofi-Aventis SA 20,587
----------
$ 111,106
----------
Total Pharmaceuticals & Biotechnology $ 135,324
- ----------------------------------------------------------------------
BANKS -- 6.6%
Diversified Banks -- 5.7%
1,127 Banco Popular Espana SA $ 10,044
1,186 Banco Santander Central Hispano SA 19,203
69 Barclays Plc* 363
217 BNP Paribas SA 16,407
4,500 Boc Hong Kong Holdings, Ltd. 10,604
1,098 Dnb Nor Asa* 12,556
1,818 HSBC Holding Plc 20,129
4,000 Industrial & Commercial Bank of China, Ltd. 9,427
248 National Bank of Canada 12,949
245 Societe Generale SA 16,334
----------
$ 128,016
- ----------------------------------------------------------------------
Regional Banks -- 0.9%
3,856 Regions Financial Corp. $ 18,663
----------
Total Banks $ 146,679
- ----------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.2%
Asset Management & Custody Banks -- 0.9%
745 The Bank of New York Mellon Corp. $ 19,862
- ----------------------------------------------------------------------
Diversified Capital Markets -- 1.4%
306 CS Group $ 16,487
195 Deutsche Bank AG* 14,221
----------
$ 30,708
- ----------------------------------------------------------------------
Diversified Finance Services -- 1.5%
4,980 Citigroup, Inc. $ 20,368
305 J.P. Morgan Chase & Co. 12,740
----------
$ 33,108
- ----------------------------------------------------------------------
Investment Banking & Brokerage -- 1.4%
133 Goldman Sachs Group, Inc. $ 22,633
1,476 ICAP Plc* 9,791
----------
$ 32,424
----------
Total Diversified Financials $ 116,102
- ----------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 17
Schedule of Investments | 10/31/09 (continued)
Shares Value
INSURANCE -- 4.6%
Life & Health Insurance -- 1.8%
870 Aegon NV* $ 6,243
214 Aflac, Inc. 8,879
362 Lincoln National Corp. 8,626
180 Prudential Financial, Inc.* 8,141
400 Unum Group 7,980
----------
$ 39,869
- ------------------------------------------------------------------------
Multi-Line Insurance -- 0.9%
57 Allianz AG $ 6,552
293 AXA SA* 7,331
31 Zurich Financial Services AG* 7,130
----------
$ 21,013
- ------------------------------------------------------------------------
Property & Casualty Insurance -- 1.3%
360 QBE Insurance Group, Ltd.* $ 7,365
181 The Traveler Companies, Inc. 9,012
2,000 Yasuda Fire & Marine Insurance Co., Ltd.* 12,122
----------
$ 28,499
- ------------------------------------------------------------------------
Reinsurance -- 0.6%
46 Muenchener Rueckversicherungs Gesellschaft AG $ 7,292
149 Swiss Reinsurance, Ltd. 6,095
----------
$ 13,387
----------
Total Insurance $ 102,768
- ------------------------------------------------------------------------
REAL ESTATE -- 1.5%
Diversified Real Estate Activities -- 1.0%
3,000 Henderson Land Development Co., Ltd. $ 21,540
- ------------------------------------------------------------------------
Real Estate Development -- 0.5%
14,000 Allgreen Properties, Ltd. $ 11,477
----------
Total Real Estate $ 33,017
- ------------------------------------------------------------------------
SOFTWARE & SERVICES -- 3.6%
Application Software -- 0.3%
572 Nuance Communications, Inc.* $ 7,499
- ------------------------------------------------------------------------
Data Processing & Outsourced Services -- 1.2%
533 Computer Sciences Corp.* $ 27,028
- ------------------------------------------------------------------------
Internet Software & Services -- 0.5%
20 Google, Inc.* $ 10,722
- ------------------------------------------------------------------------
IT Consulting & Other Services -- 0.5%
293 Accenture, Ltd. $ 10,864
- ------------------------------------------------------------------------
Systems Software -- 1.1%
1,131 Oracle Corp. $ 23,864
----------
Total Software & Services $ 79,977
- ------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
Shares Value
TECHNOLOGY HARDWARE & EQUIPMENT -- 5.1%
Communications Equipment -- 2.0%
3,788 Motorola, Inc. $ 32,463
1,028 Nokia Oyj 13,062
----------
$ 45,525
- -------------------------------------------------------------------
Computer Hardware -- 1.0%
1,000 Fujitsu, Ltd.* $ 6,083
222 Hewlett-Packard Co. 10,536
2,000 NEC Corp. 5,861
----------
$ 22,480
- -------------------------------------------------------------------
Computer Storage & Peripherals -- 0.2%
300 Seiko Epson Corp.* $ 4,755
- -------------------------------------------------------------------
Electronic Components -- 0.8%
300 Omron Corp. $ 5,167
1,000 Taiyo Yuden Co., Ltd.* 11,589
----------
$ 16,756
- -------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.1%
1,000 Hitachi, Ltd. $ 3,305
- -------------------------------------------------------------------
Office Electronics -- 1.0%
200 Canon, Inc. $ 7,780
1,000 Ricoh Co. 14,010
----------
$ 21,790
----------
Total Technology Hardware & Equipment $ 114,611
- -------------------------------------------------------------------
SEMICONDUCTORS -- 0.5%
1,356 ST Microelectronics NV $ 10,951
----------
Total Semiconductors $ 10,951
- -------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.0%
Integrated Telecommunication Services -- 2.8%
672 Deutsche Telekom AG $ 9,190
200 Nippon Telegraph & Telephone Corp.* 8,304
2,206 Qwest Communications International, Inc. 7,920
3,279 Telecom Italia S.p.A. 3,622
422 Telefonica SA* 11,848
754 Verizon Communications, Inc. 22,311
----------
$ 63,195
- -------------------------------------------------------------------
Wireless Telecommunication Services -- 1.2%
1 KDDI Corp.* $ 5,372
46 SK Telecom Co., Ltd.* 7,059
6,185 Vodafone Group Plc 13,685
----------
$ 26,116
----------
Total Telecommunication Services $ 89,311
- -------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 19
Schedule of Investments | 10/31/09 (continued)
Shares Value
UTILITIES -- 3.5%
Electric Utilities -- 1.7%
209 E.On AG $ 8,003
1,863 Enel S.p.A.* 11,145
1,000 Iberdrola SA* 9,095
524 Public Power Corp.* 10,755
----------
$ 38,998
- -----------------------------------------------------------------------------
Gas Utilities -- 0.3%
223 Atmos Energy Corp. $ 6,211
- -----------------------------------------------------------------------------
Independent Power Producer & Energy Traders -- 0.8%
1,508 International Power Plc $ 6,298
502 NRG Energy, Inc.* 11,541
----------
$ 17,839
- -----------------------------------------------------------------------------
Multi-Utilities -- 0.7%
849 Xcel Energy, Inc. $ 16,012
----------
Total Utilities $ 79,060
- -----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $2,211,697) $2,088,520
- -----------------------------------------------------------------------------
PURCHASED OPTIONS -- 1.0%
Put Option -- 1.0%
2 Nikkei Index, expiring December 2009 at $10,500 $ 13,233
5 DJ Euro Stoxx, expiring December 2009 at $2,750 9,182
----------
$ 22,415
- -----------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS
(Cost $23,692) $ 22,415
- -----------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 94.8%
(Cost $2,248,238)(a)(b) $2,119,705
- -----------------------------------------------------------------------------
WRITTEN OPTIONS -- (0.3)%
Put Option -- (0.3)%
(5) DJ Euro Stoxx, expiring December 2009 at $2,450 $ (2,585)
(2) Nikkei 9500, Expiring December 2009 at $9,500 (3,208)
----------
$ (5,793)
- -----------------------------------------------------------------------------
TOTAL WRITTEN OPTIONS
(Cost $((9,687)) $ (5,793)
- -----------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 5.5% $ 122,116
- -----------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $2,236,028
- -----------------------------------------------------------------------------
* Non-income producing security.
(A.D.R.) American Depositary Receipt.
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
(a) At October 31, 2009, the net unrealized loss on investments based on cost
for federal income tax purposes of $2,248,285 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 172,710
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (301,290)
----------
Net unrealized loss $ (128,580)
==========
(b) Distributions of investments by country of issue, as a percentage of
total investment in securities (excluding temporary cash investments), is
as follows:
United States 38.4%
Japan 13.7
Germany 5.9
France 5.8
United Kingdom 4.4
Netherlands 4.2
Spain 3.3
Switzerland 3.2
Austria 2.9
Peoples Republic of China 2.1
Hong Kong 2.0
Australia 2.0
Italy 1.8
Norway 1.7
Bermuda 1.6
Finland 1.5
Singapore 1.5
Taiwan 1.3
Russia 1.0
Other (individually less than 1%) 1.7
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 2009 aggregated $1,177,925 and $1,100,862,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (Including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
Level 3 -- significant unobservable inputs (Including the Portfolio's own
assumptions in determining fair value of investments)
The accompanying notes are an integral part of these financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 21
Schedule of Investments | 10/31/09 (continued)
The following is a summary of the inputs used as of October 31, 2009, in
valuing the Fund's assets:
Level 1 Level 2 Level 3 Total
Common stocks (U.S.) $825,861 $ -- $ -- $ 838,810
Common stocks (foreign) -- 1,262,659 -- 1,249,710
Preferred stock -- 8,770 -- 8,770
Purchased options 22,415 -- -- 22,415
Written options (5,793) -- -- (5,793)
- ------------------------------------------------------------------------------------------
Total $842,483 $1,271,429 $ -- $2,113,912
==========================================================================================
Other Financial Instruments* $ (1,050) $ 2,518 $ -- $ 1,468
======================================================
* Other financial instruments Include foreign exchange contracts and futures
contracts.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
Statement of Assets and Liabilities | 10/31/09
ASSETS:
Investment in securities, at value (cost $2,248,238) $2,119,705
Cash 137,622
Futures Collateral 11,250
Foreign currencies, at value (cost $22,721) 22,973
Receivables --
Dividends and foreign taxes withheld 5,583
Forward foreign currency portfolio hedge contracts, open-net 2,518
Due from Pioneer Investment Management, Inc. 3,174
Other 1,187
- -----------------------------------------------------------------------------------
Total assets $2,304,012
- -----------------------------------------------------------------------------------
LIABILITIES:
Payables --
Variation margin $ 2,860
Open option contracts written (premiums received $9,687) 5,793
Due to affiliates 142
Accrued expenses 59,189
- -----------------------------------------------------------------------------------
Total liabilities $ 67,984
- -----------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $2,996,734
Distributions in excess of net investment income (2,518)
Accumulated net realized loss on investments, foreign currency
transactions, futures and options contracts (635,393)
Net unrealized loss on investments and purchased options (128,533)
Net unrealized gain on forward foreign currency contracts, written
options and other assets and liabilities denominated in foreign
currencies 6,788
Net unrealized loss on futures contracts (1,050)
- -----------------------------------------------------------------------------------
Total net assets $2,236,028
===================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $2,236,028/300,000 shares) $ 7.45
MAXIMUM OFFERING PRICE:
Class A ($7.45 [divided by] 94.25%) $ 7.90
===================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 23
Statement of Operations
For the Year Ended 10/31/09
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $4,716) $ 52,269
- -----------------------------------------------------------------------------------------------
Total investment income $ 52,269
- -----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 14,134
Transfer agent fees and expenses 42
Distribution fees 4,711
Shareholder communication expense 159
Administrative reimbursements 814
Custodian fees 33,847
Registration fees 1,685
Professional fees 44,141
Printing expense 25,577
Fees and expenses of nonaffiliated trustees 6,826
Miscellaneous 11,884
- -----------------------------------------------------------------------------------------------
Total expenses $ 143,820
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (119,345)
- -----------------------------------------------------------------------------------------------
Net expenses $ 24,475
- -----------------------------------------------------------------------------------------------
Net investment income $ 27,794
- -----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES AND OPTIONS CONTRACTS, AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (524,428)
Futures contracts (15,210)
Written options 46,710
Forward foreign currency contracts and other assets, written
options and liabilities denominated in foreign currencies (38,537) $ (531,465)
- -----------------------------------------------------------------------------------------------
Change in net unrealized gain on:
Investments $ 873,141
Futures contracts 18,540
Forward foreign currency contracts and other assets, written
options and liabilities denominated in foreign currencies 12,448 $ 904,129
- -----------------------------------------------------------------------------------------------
Net gain on investments, futures and options contracts, and
foreign currency transactions $ 372,664
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 400,458
===============================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
Statement of Changes in Net Assets
For the Year Ended 10/31/09 and period ended 10/31/08, respectively
6/3/08
(Commencement
Year Ended of Operations)
10/31/09 to 10/31/08
FROM OPERATIONS:
Net investment income $ 27,794 $ 9,640
Net realized loss on investments, futures and options contracts
and foreign currency transactions (531,465) (136,106)
Change in net unrealized gain (loss) on investments, futures and
options contracts, and foreign currency transactions 904,129 (1,026,924)
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ 400,458 $(1,153,390)
- --------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.04 and $0.00 per share, respectively) $ (11,040) $ --
- --------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (11,040) $ --
- --------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 110 $ 2,999,890
- --------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 110 $ 2,999,890
- --------------------------------------------------------------------------------------------------
Net increase in net assets $ 389,528 $ 1,846,500
NET ASSETS:
Beginning of year 1,846,500 --
- --------------------------------------------------------------------------------------------------
End of year $2,236,028 $ 1,846,500
- --------------------------------------------------------------------------------------------------
Undistributed (Distributions in excess of) net investment income $ (2,518) $ 17,112
- --------------------------------------------------------------------------------------------------
'09 Shares '09 Amount '08 Shares '08 Amount
Class A*
Shares sold -- $110 300,000 $2,999,890
- ------------------------------------------------------------------------------------
Net increase -- $110 300,000 $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.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 25
Financial Highlights
6/3/08 (a)
(Commencement
11/01/08 to of Operations)
10/31/09 to 10/31/08
Class A
Net asset value, beginning of period $ 6.15 $ 10.00
- --------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.09 $ 0.03
Net realized and unrealized gain (loss) on
investments, written options and futures contracts
and foreign currency transactions 1.25 (3.88)
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
investment operations $ 1.34 $ (3.85)
Distributions to shareowners:
Net investment income (0.04) --
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.30 $ (3.85)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.45 $ 6.15
============================================================================================
Total return* 21.89% (38.50)%***
Ratio of net expenses to average net assets 1.30% 1.30%**
Ratio of net investment income to average net assets 1.47% 0.93%**
Portfolio turnover rate 62% 38%***
Net assets, end of period (in thousands) $ 2,236 $ 1,847
Ratios with no waiver of fees and assumption of
expenses by PIM
Net expenses 7.63% 8.95%**
Net investment loss (4.86)% (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.
26 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
Notes to Financial Statements | 10/31/09
1. Organization and Significant Accounting Policies
Pioneer Global Diversified Equity Fund (the Fund) is a series of Pioneer Series
Trust VII, a Delaware statutory trust. The Fund is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. 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, 2009, are owned by PFD. The Fund's investment
objective is to seek long-term capital growth.
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 prospectus contains unaudited information
regarding the Fund's principal risks. Please refer to the document when
considering the Fund's principal risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
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 Diversified Equity Fund | Annual Report | 10/31/09 27
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 that have traded on an exchange
are valued using 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 available, generally are valued
using the mean between the last bid and asked prices. Securities for which
market prices and/or quotations are not readily available or are considered
to be unreliable are valued using fair value methods pursuant to procedures
adopted by 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
daily adjustments to the valuation of securities of non-U.S. issuers by an
independent service using fair value methods is appropriate for the Fund.
The Fund may also use fair value methods if it is determined that a
significant event has occurred after the close of the exchange or market on
which the security trades and prior to the determination of the Fund's net
asset value. Thus, the valuation of the Fund's securities may differ from
exchange prices. At October 31, 2009, there were no securities that were
valued using fair value methods (other than securities that were valued
using prices supplied by independent pricing services). Short-term fixed
income securities with remaining maturities of sixty days or less generally
are valued at amortized cost.
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 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.
28 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
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 prices of those securities but are
included with the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized 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 5).
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 for the prior three fiscal years are subject to examination by tax
authorities.
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, 2009, 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, 2009, 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,
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 29
or as from paid-in capital, depending on the type of book/tax differences
that may exist.
As of October 31, 2009, the Fund has a net capital loss carryforward of
$636,397, of which the following amounts will expire between 2016 and 2017
if not utilized: $160,413 in 2016 and $475,984 in 2017.
At October 31, 2009, the Fund has reclassified $36,384 to decrease
undistributed net investment income, $38,537 to decrease accumulated net
realized loss on investments, foreign currency transactions, futures and
options contracts and $2,153 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.
There were no distributions paid during the period ended October 31, 2008.
The tax character of distributions paid during the year ended October 31,
2009 was as follows:
2009
Distributions paid from:
Ordinary income $11,040
Long-term capital gain --
- ---------------------------------------------
Total $11,040
=============================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2009:
2009
Distributable earnings:
Capital loss carryforward $(636,397)
Unrealized depreciation (124,309)
- ---------------------------------------------
Total $(760,706)
=============================================
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 year ended October 31,
2009.
30 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
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 its 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.
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. The average number of contracts open during the year ended October
31, 2009 was 1.67.
At October 31, 2009, open futures contracts were as follows.
Number of
Contracts Settlement Fair Unrealized
Type Long/(Short) Month Value Loss
S&P 500 2 12/09 $103,300 $ (1,050)
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
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 31
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.
Transactions in written options for the year ended October 31, 2009, are
summarized as follows:
Number of Premiums
Contracts Received
Options outstanding at beginning of period 7 $18,514
Options opened 36 67,542
Options exercised -- --
Options closed 36 76,369
Options expired -- --
- ---------------------------------------------------------------------------
Options outstanding at end of period 7 $ 9,687
===========================================================================
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 next $500 million and 0.65% on assets over $1
billion. For the year ended October 31, 2009, the net management fee was
equivalent to 0.75% of the Fund's average net assets.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.30% of the average daily net assets
attributable to Class A shares This expense limitation is in effect through
March 1, 2012 for Class A shares. There can be no assurance that PIM will
extend the expense limitation agreement for a class of shares beyond the date
referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is $4
in management fees, administrative costs and certain other reimbursements
payable to PIM at October 31, 2009.
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.
In addition, the Fund reimbursed PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
32 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
For the year ended October 31, 2009, such out of pocket expenses by class of
shares were as follows:
Shareholder Communications:
Class A $159
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $107 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 2009.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A shares. Pursuant to
the Plan, the Fund pays PFD 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.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $31 in distribution fees payable to PFD at October 31, 2009.
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
(within 12 months for purchases made on or after April 1, 2009). Shares
purchased as part of an exchange remain subject to any CDSC that applied to the
original purchase of those shares. Proceeds from the CDSCs are paid to PFD. For
the year ended October 31, 2009, no CDSCs were paid to PFD.
5. Forward Foreign Currency Contracts
At October 31, 2009, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting hedge contract. At October 31, 2009, the Fund had
no outstanding settlement hedges. The average number of contracts open during
the year ended October 31, 2009 was 8,473,879. Open portfolio hedges at October
31, 2009, were as follows:
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 33
Net Unrealized
Settlement Appreciation/
Contracts to Deliver In Exchange For Date (Depreciation)
JPY 8,000,000 EUR 61,142 12/4/2009 $1,095
EUR 37,537 USD 55,000 12/4/2009 $ (269)
EUR 37,918 GBP 35,000 12/4/2009 $1,692
- -------------------------------------------------------------------------
Total $2,518
- -------------------------------------------------------------------------
6. Additional Disclosures about Derivative Instruments and Hedging Activities:
Fair values of derivative instruments as of October 31, 2009:
Derivatives Not Accounted
for as Hedging Instruments
under Accounting Standards Asset Derivatives 2009 Liabilities Derivatives 2009
Codification (ASC) 815 ------------------------------ ----------------------------
(formerly FASB Balance Sheet Balance Sheet
Statement 133) Location Fair Value Location Fair Value
- ---------------------------------------------------------------------------------------------
Foreign Exchange Contracts Receivables* $2,518 Payables $--
- ---------------------------------------------------------------------------------------------
Index futures contracts Receivable $-- Payable** $(1,050)
- ---------------------------------------------------------------------------------------------
Total $2,518 $(1,050)
- ---------------------------------------------------------------------------------------------
* Foreign exchange contracts are shown as a net receivable on the Statement of
Assets and Liabilities
** Represents the net unrealized depreciation on futures. Payable for variation
margin on open future contracts reflects unsettled variation margin.
The effect of derivative instruments on the Statement of Operations for the
year ended October 31, 2009 was as follows:
Derivatives Not Accounted Change in
for as Hedging Instruments Realized Gain Unrealized Gain
under Accounting Standards or (Loss) on or (Loss) on
Codification (ASC) 815 Derivatives Derivatives
(formerly FASB Location of Gain or (Loss) On Recognized Recognized
Statement 133) Derivatives Recognized in Income in Income in Income
- ---------------------------------------------------------------------------------------------------------
Foreign Exchange Contracts Net realized loss on forward foreign $(38,537)
currency contracts and other assets
and liabilities denominated in foreign
currencies
Index futures contracts Net realized loss on futures contracts $(15,210)
Foreign Exchange Contracts Change in unrealized gain (loss) on $12,448
forward foreign currency contracts
and other assets and liabilities
denominated in foreign currencies
Index futures contracts Change in net unrealized gain on futures $18,540
contracts
34 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure through
December 21, 2009, and has determined that there were no subsequent events
requiring recognition or disclosure in the financial statements.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 35
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, 2009, and the related statements of operations for the year then
ended, and the statements of changes in net assets and the financial highlights
for each of the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Fund's internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of October 31, 2009, by correspondence with
the custodian and brokers. 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 Diversified Equity Fund at October 31, 2009, the results of its
operations for the year then ended and the changes in its net assets and the
financial highlights for each of the periods indicated therein, in conformity
with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 21, 2009
36 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
ADDITIONAL INFORMATION (unaudited)
For the year ended October 31, 2009, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth
Tax Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate
up to the maximum amount of such dividends allowable under the Act, as taxed at
a maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2009 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 100.00%.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 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 62
U.S. registered investment portfolios for which Pioneer serves as investment
adviser (the "Pioneer Funds"). Mr. West serves as a Trustee of 47 U.S.
registered investment portfolios for which Pioneer serves as investment
adviser. 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 | 10/31/09
Interested Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
John F. Cogan, Jr. (83)* Chairman of the Board, Trustee since 2008.
Trustee and President Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ---------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (51)* Trustee and Executive Trustee since 2008.
Vice President 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
John F. Cogan, Jr. (83)* Deputy Chairman and a Director of Pioneer Global Asset Management S.p.A. None
("PGAM"); Non-Executive 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 (51)* Director, CEO and President of Pioneer Investment Management USA Inc. (since None
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);
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.
The outstanding capital stock of PFD, Pioneer and Pioneer Investment Management
Shareholder Services, Inc. ("PIMSS") is indirectly wholly owned by UniCredit
S.p.A. ("UniCredit"), one of the largest banking groups in Italy. Pioneer, the
Fund's investment adviser, provides investment management and financial services
to mutual funds, institutional and other clients.
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 39
Independent Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
David R. Bock (65) Trustee Trustee since 2008.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------
Mary K. Bush (61) Trustee Trustee since 2008.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
David R. Bock (65) Managing Partner, Federal City Capital Advisors (boutique mer- Director of Enterprise Com-
chant bank) (1997 to 2004 and 2008 - present); and Executive munity Investment, Inc.
Vice President and Chief Financial Officer, I-trax, Inc. (publicly (privately-held affordable
traded health care services company) (2004 - 2007) housing finance company);
Director of New York Mort-
gage Trust (publicly traded
mortgage REIT); and Direc-
tor of Oxford Analytica, Inc.
(privately-held research and
consulting company)
- -------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (61) 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 | 10/31/09
Position Held Length of Service
Name and Age with the Fund and Term of Office
Benjamin M. Friedman (65) Trustee Trustee since 2008.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------------
Margaret B.W. Graham (62) Trustee Trustee since 2008.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------------
Thomas J. Perna (59) Trustee Trustee since 2008.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------------
Marguerite A. Piret (61) Trustee Trustee since 2008.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------------
Stephen K. West (81) Trustee Trustee since 2008.
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 (65) 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 (62) Founding Director, Vice-President and Corporate Secretary, The None
Winthrop Group, Inc. (consulting firm); and Desautels Faculty of
Management, McGill University
- -------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (59) Chief Executive Officer, Quadriserv, Inc. (technology products for None
securities lending industry) (2008 - present); Private investor
(2004 - 2008); and Senior Executive Vice President, The Bank of
New York (financial and securities services) (1986 - 2004)
- -------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (61) 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 (81) Senior Counsel, Sullivan & Cromwell LLP (law firm) Director, The Swiss Helvetia
Fund, Inc. (closed-end
investment company)
- -------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
41
Fund Officers
Position Held Length of Service
Name and Age with the Fund and Term of Office
Dorothy E. Bourassa (61) Secretary Since 2008. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------
Christopher J. Kelley (44) Assistant Secretary Since 2008. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------
Mark E. Bradley (49) Treasurer Since 2008. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------
Luis I. Presutti (44) Assistant Treasurer Since 2008. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------
Gary Sullivan (51) Assistant Treasurer Since 2008. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Dorothy E. Bourassa (61) 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 (44) 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 (49) 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 (44) Assistant Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- ---------------------------------------------------------------------------------------------------------------------
Gary Sullivan (51) 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 | 10/31/09
Position Held Length of Service
Name and Age with the Fund and Term of Office
David F. Johnson (29) Assistant Treasurer Since 2009. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------
Teri W. Anderholm (50) Chief Compliance Since 2008. Serves at
Officer the discretion of the
Board
- -----------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
David F. Johnson (29) Fund Administration Manager - Fund Accounting, Administration None
and Controllership Services since November 2008 and Assistant
Treasurer of all of the Pioneer Funds since January 2009; Client
Service Manager - Institutional Investor Services at State Street
Bank from March 2003 to March 2007
- ------------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (50) 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 Feb-
ruary 2005)
- ------------------------------------------------------------------------------------------------------------------
Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09 43
This page for your notes.
44 Pioneer Global Diversified Equity Fund | Annual Report | 10/31/09
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
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, 2009
- --------------------------------------------------------------------------------
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 44
Notes to Financial Statements 53
Report of Independent Registered Public Accounting Firm 64
Trustees, Officers and Service Providers 66
Pioneer Global High Yield Fund | Annual Report | 10/31/09 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have begun to recover this year from one
of their most tumultuous periods in history. This is a welcome relief, and we
are generally optimistic about the prospects for the economy going forward.
Still, challenges remain. Unemployment is high. Consumer demand and loan growth
are weak. And housing has not yet returned to normal.
At Pioneer, we have long advocated the benefits of investing for the long term.
This strategy has generally performed well for many investors. Those who
remained invested in the market during the downturn have most likely seen their
portfolios start to recover this year as the Dow Jones Industrial Average
climbed back towards the 10,000 level. Many bond investors have similarly seen a
strong rebound, with a broad-based recovery across many different fixed-income
asset classes. The riskiest asset classes, such as high-yield bonds, have
outperformed other fixed-income asset classes for most of 2009.
At Pioneer, we are not changing the approach to investing that we have used for
more than 80 years. We remain focused on company fundamentals and risk
management. Our investment process is based on careful research into individual
companies, 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 opportunities for making money in many corners of
the markets around the globe, it takes research and experience to separate solid
investment opportunities from speculation.
Following this difficult period, many investors are rethinking their approach to
investing and risk management. Some are questioning whether the basic investment
principles they were taught in the past are still useful in today's markets.
Complicating matters is that financial markets remain unpredictable. Our advice,
as always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs. There is no single best strategy that works for every
investor.
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
2 Pioneer Global High Yield Fund | Annual Report | 10/31/09
www.pioneerinvestments.com. We greatly appreciate you putting your trust in us
and we thank you for investing with Pioneer.
Sincerely,
/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 | 10/31/09 3
Portfolio Management Discussion | 10/31/09
Investors in higher-yielding securities witnessed dramatic changes in world
market conditions during the 12 months ended October 31, 2009. Concerns about a
credit meltdown and the potential for a major global recession prompted a flight
away from high-yield credit early in the period. However, beginning in March
2009, demand increased for bonds with higher yields and greater credit risk amid
increasing evidence that financial liquidity was returning to the capital
markets and that the global economy was stabilizing. In the following interview,
Andrew Feltus, CFA, and Tracy Wright discusses the factors that influenced the
performance of Pioneer Global High Yield Fund during the 12 months ended October
31, 2009. Mr. Feltus and Ms. Wright, members of Pioneer's Fixed Income
Department, are responsible for the daily management of the Fund.
Q How did the Fund perform during the 12 months ended October 31, 2009?
A Pioneer Global High Yield Fund Class A shares returned 43.56% at net asset
value for the 12 months ended October 31, 2009, while the Fund's benchmark,
the Merrill Lynch Global High Yield and Emerging Markets Plus Index (the
Merrill Lynch Index), returned 51.36%. Over the same period, the average
return of the 460 mutual funds in Lipper's High Current Yield category was
35.59%. On October 31, 2009, the 30-day SEC yield on Class A shares was
10.04%.
Q What were the principal factors affecting the Fund's performance over the
12 months ended October 31, 2009?
A The Fund rebounded strongly this year after higher-yielding investments
struggled in 2008, when a crisis in global credit markets led to plunging
prices for high-yielding corporate bonds and other credit-sensitive
securities. Early in the 12-month period, as market fears intensified, the
Fund's performance was held back because of an underweighting in
investment-grade bonds, positions in investments denominated in the euro,
and our focus on B-rated corporates. In addition, the Fund's low exposure
to automobile industry bonds, which rallied through March 2009, did not
help, even though two major auto companies -- General Motors and Chrysler
-- subsequently filed for bankruptcy protection. The markets changed
dramatically in March 2009, however, as investors gained new confidence in
the face of aggressive fiscal and monetary easing by central banks and
governments in the United States and in other major economic centers. These
actions stabilized the economy and the markets. As new liquidity poured
into financial markets, corporations gained the ability to issue new equity
and debt securities and to refinance existing debt. Credit-sensitive bonds
4 Pioneer Global High Yield Fund | Annual Report | 10/31/09
became more rationally priced, and lower-rated, high-yield bonds staged a
robust recovery that benefited the Fund.
We focused the Fund's investments primarily on high-yield corporate bonds,
especially domestic securities. We underweighted the Fund to emerging
market debt because we did not think we were being adequately compensated
for the risk. While we expect emerging markets to lead global growth, it is
still a risky area for investors and we need to be compensated for that
risk.
At the end of the Fund's fiscal year (October 31, 2009), 61.1% of Fund
assets were invested in high-yield corporate bonds denominated in the U.S.
dollar, while 24.7% of assets were invested in emerging market debt.
Foreign high-yield corporates accounted for 8.0% of Fund assets, while
convertible bonds and bank loans represented 5.87% and 5.73% of assets,
respectively. The average credit quality of the Fund's portfolio on October
31, 2009, was B-.
Q What types of investments had the greatest influence on the Fund's
performance results during the 12 months ended October 31, 2009?
A As markets improved, companies were able to take action to improve balance
sheets and many found that they were able to issue new shares of equity to
pay down their high-yield debts. For example, the Fund's position in loans
to Talecris Biotherapeutics Holdings, a biotechnology corporation, proved a
big winner when the company issued new stock to retire loans. Similarly,
the convertible bonds of WESCO International, a distributor of electronic
components, rose in value, allowing us to sell them out of the Fund and
refinance into a new convertible with higher yields. Another solid
performer came from the bonds of GC Impsat Holdings, a London-based
corporation that provides fiber-optic telecommunication services in Latin
America. Heightened merger-and-acquisition activity also worked to the
Fund's advantage. For example, JBS, which is Brazil's largest beef company,
acquired two smaller beef companies whose bonds were held by the Fund:
Bertin, a beef company, and Vigor, a dairy firm. Generally supporting the
Fund's results were investments in bonds denominated in the Colombian,
Brazilian and Argentinean currencies, all of which gained in value against
the U.S. dollar during the rally.
Some of the Fund's investments struggled early in the period, but then
added to overall Fund performance later on. For example, Mandra Forestry, a
Chinese corporation, defaulted on its debt in May 2009. But the securities
held by the Fund regained value when the corporation was purchased in
October 2009 by Sino Forest, a Canadian company operating in China.
Similarly, bonds issued by auto components manufacturer Lear plunged in
value early in the period when it filed for bankruptcy protection, but
later
Pioneer Global High Yield Fund | Annual Report | 10/31/09 5
appreciated sharply, to the benefit of the Fund, when investors reacted
positively to the firm's reorganization plans. Both bonds' prices were
higher than the Fund's cost.
Holding back the Fund's results, however, was our investment in bonds of
another Brazilian beef company, Indepencia, which suffered as exports to
the United States slowed. The Fund's exposure to the chemical industry did
not help, especially when Lyondell defaulted on some of its debt in January
2009. The Fund owned some Lyondell bonds which declined in value, even
though they were not part of the default. Asia Aluminum, a Chinese company,
also defaulted on its debt, negatively affecting Fund performance.
Q What is your investment outlook?
A We think we should see a favorable environment for high-yield investing in
the near term, as the effects of fiscal stimulus programs of the major
economic powers begin to take hold. High-yielding corporate bonds still are
trading at reasonable prices, as the global economy appears headed toward a
period of renewed expansion. This is an environment that should support
high-yield prices, although performance is not likely to match the results
of the past six months (May 1, 2009 through October 31, 2009).
One question that will hang over the markets, however, will be whether
monetary authorities may tighten their policies and limit liquidity if they
see the potential for the emergence of inflationary pressures as growth
trends strengthen. Market uncertainty over the direction of monetary policy
could add volatility to the fixed-income markets.
In the weeks and months ahead, we intend to continue to focus on
fundamental research and may consider adding to the Fund's investments in
floating-rate bank loans, which offer additional protection against the
risk of rising interest rates.
Please refer to the Schedule of Investments on pages 17-43 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
6 Pioneer Global High Yield Fund | Annual Report | 10/31/09
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 | 10/31/09 7
Portfolio Summary | 10/31/09
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
U.S. Corporate Bonds 77.8%
Convertible Corporate Bonds 5.7%
Senior Secured Loans 5.4%
Temporary Cash Investments 3.8%
Asset Backed Securities 2.8%
Collateralized Mortgage Obligations 1.8%
Preferred Stocks 0.9%
Foreign Government Bonds 0.8%
Common Stocks 0.5%
Municipal Bonds 0.4%
Warrants 0.1%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of total debt holdings)*
1. Altra Industrial Motion, Inc., 9.0%, 12/1/11 1.10%
2. True Move Co., Ltd., 10.75%, 12/16/13 (144A) 1.00
3. Exopack Holding Corp., 11.25%, 2/1/14 0.98
4. CII Carbon LLC 11.125%, 11/15/15 0.92
5. Broadview Networks Holdings, Inc., 11.375%, 9/1/12 0.92
6. Alliance One International, Inc., 10.0%, 7/15/16 0.91
7. NII Holdings, Inc., 3.125%, 6/15/12 0.90
8. TNK-BP Finance SA, 7.875%, 3/13/18 144A 0.89
9. Impress Metal Pack Holding NA, 9.25%, 9/15/14 (144A) 0.84
10. Goldman Sachs Capital Corp., Floating Rate Note, 12/29/49 0.84
* 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 | 10/31/09
Prices and Distributions | 10/31/09
Net Asset Value per Share
- --------------------------------------------------------------------------------
Class 10/31/09 10/31/08
A $ 9.39 $ 7.56
- -------------------------------------
B $ 9.37 $ 7.54
- -------------------------------------
C $ 9.34 $ 7.51
- -------------------------------------
Y $ 9.25 $ 7.46
- -------------------------------------
Z $ 9.67 $ 7.79
- -------------------------------------
Distributions per Share: 10/31/08-10/31/09
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
A $ 1.0540 $ -- $ --
- ---------------------------------------------------------
B $ 0.9858 $ -- $ --
- ---------------------------------------------------------
C $ 0.9841 $ -- $ --
- ---------------------------------------------------------
Y $ 1.0640 $ -- $ --
- ---------------------------------------------------------
Z $ 1.0991 $ -- $ --
- ---------------------------------------------------------
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 | 10/31/09 9
Performance Update | 10/31/09 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, 2009)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
Life-of-Class
(8/27/01) 9.47% 8.85%
5 Years 5.33 4.36
1 Year 43.56 37.04
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.18% 1.10%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Global ML Global High Yield and
High Yield Fund Emerging Markets Plus Index
8/01 $ 9,550 $10,000
10/01 $ 9,245 $ 9,591
10/02 $ 9,273 $ 9,429
10/03 $13,501 $12,700
10/04 $15,502 $14,456
10/05 $16,822 $15,317
10/06 $18,860 $17,095
10/07 $20,425 $18,543
10/08 $14,001 $13,632
10/09 $20,100 $20,633
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 4.50% 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 3/1/12 for Class A shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of 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 | 10/31/09
Performance Update | 10/31/09 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, 2009)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(11/21/03) 5.77% 5.77%
5 Years 4.48 4.48
1 Year 42.42 38.42
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.92% 1.92%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Global ML Global High Yield and
High Yield Fund Emerging Markets Plus Index
11/03 $10,000 $10,000
$11,146 $11,192
10/05 $11,995 $11,858
$13,344 $13,234
10/07 $14,332 $14,355
$ 9,743 $10,553
10/09 $13,875 $15,974
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.
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 3/1/11 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 | 10/31/09 11
Performance Update | 10/31/09 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, 2009)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(11/21/03) 5.68% 5.68%
5 Years 4.50 4.50
1 Year 42.56 42.56
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.85% 1.85%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Global ML Global High Yield and
High Yield Fund Emerging Markets Plus Index
11/03 $10,000 $10,000
$11,079 $11,192
10/05 $11,921 $11,858
$13,267 $13,234
10/07 $14,260 $14,355
$9,685 $10,553
10/09 $13,807 $15,974
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 3/1/11 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 | 10/31/09
Performance Update | 10/31/09 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, 2009)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(8/27/01) 9.42% 9.42%
5 Years 5.25 5.25
1 Year 43.78 43.78
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
0.74% 0.74%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Global ML Global High Yield and
High Yield Fund Emerging Markets Plus Index
8/01 $10,000 $10,000
10/01 $ 9,682 $ 9,591
$ 9,711 $ 9,429
10/03 $14,138 $12,700
$16,234 $14,456
10/05 $17,616 $15,317
$19,542 $17,095
10/07 $21,130 $18,543
$14,587 $13,632
10/09 $20,973 $20,633
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 for Class Y shares prior to
their inception on December 28, 2005 would have been higher than the performance
shown. 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 | 10/31/09 13
Performance Update | 10/31/09 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, 2009)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(8/27/01) 9.93% 9.93%
5 Years 6.06 6.06
1 Year 43.69 43.69
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.11% 0.90%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Global ML Global High Yield and
High Yield Fund Emerging Markets Plus Index
8/01 $10,000 $10,000
10/01 $ 9,682 $ 9,591
$ 9,711 $ 9,429
10/03 $14,138 $12,700
$16,234 $14,456
10/05 $17,616 $15,317
$19,751 $17,095
10/07 $21,418 $18,543
$15,161 $13,632
10/09 $21,785 $20,633
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 for Class Z shares prior to their inception on
July 6, 2007 would have been higher than the performance shown. 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 net expense ratio reflects contractual expense limitations currently in
effect through 3/1/11 for Class Z 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.
14 Pioneer Global High Yield Fund | Annual Report | 10/31/09
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, 2009 through October 31, 2009.
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 5/01/2009
- ------------------------------------------------------------------------------------------
Ending Account Value $ 1,428.60 $ 1,423.92 $ 1,423.46 $ 1,428.09 $ 1,427.20
(after expenses)
on 10/31/2009
- ------------------------------------------------------------------------------------------
Expenses Paid $ 6.73 $ 12.22 $ 12.09 $ 4.77 $ 5.51
During Period*
- ------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.10%, 2.00%,
1.98%, 0.78%, and 0.90% multiplied by the average account value over the
period, multiplied by 184/365 (to reflect the partial year period).
Pioneer Global High Yield Fund | Annual Report | 10/31/09 15
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, 2009 through October 31, 2009.
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 5/01/2009
- ------------------------------------------------------------------------------------------
Ending Account Value $ 1,019.66 $ 1,015.12 $ 1,015.22 $ 1,021.27 $ 1,020.67
(after expenses)
on 10/31/2009
- ------------------------------------------------------------------------------------------
Expenses Paid $ 5.60 $ 10.16 $ 10.06 $ 3.97 $ 4.58
During Period*
- ------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.10%, 2.00%,
1.98%, 0.78%, and 0.90% multiplied by the average account value over the
period, multiplied by 184/365 (to reflect the partial year period).
16 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Schedule of Investments | 10/31/09
Floating
Principal Rate (b)
Amount (unaudited) Value
CONVERTIBLE CORPORATE BONDS -- 5.9%
ENERGY -- 0.3%
Coal & Consumable Fuels -- 0.2%
$3,300,000 Massey Energy Co., 3.25%, 8/1/15 $ 2,648,250
- ------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.1%
1,160,000 Carrizo Oil & Gas, Inc., 4.875%, 6/1/28 $ 961,350
1,885,000 Chesapeake Energy, Inc., 2.5%, 5/15/37 1,661,156
--------------
$ 2,622,506
--------------
Total Energy $ 5,270,756
- ------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.7%
Forest Products -- 0.7%
12,150,000 Sino Forest Corp., 5.0%, 8/1/13 (144A) $ 12,499,920
--------------
Total Materials $ 12,499,920
- ------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 1.1%
Construction & Farm Machinery & Heavy Trucks -- 0.3%
5,150,000 Navistar International Corp., 3.0%, 10/15/14 $ 4,847,438
- ------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.8%
11,923,000 WESCO International, Inc., 6.0%, 9/15/29 $ 14,277,793
--------------
Total Capital Goods $ 19,125,231
- ------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.5%
Marine -- 0.5%
11,655,000 Horizon Lines, Inc., 4.25%, 8/15/12 $ 9,192,881
--------------
Total Transportation $ 9,192,881
- ------------------------------------------------------------------------------------------------------------
MEDIA -- 0.6%
Advertising -- 0.4%
8,010,000 Interpublic Group of Companies, Inc., 4.25%,
3/15/23 $ 7,719,638
- ------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.2%
4,673,000 Live Nation, Inc., 2.875%, 7/15/27 $ 3,358,719
--------------
Total Media $ 11,078,357
- ------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.3%
Tobacco -- 0.3%
5,135,000 Alliance One International, Inc., 5.5%, 7/15/14
(144A) $ 5,744,781
--------------
Total Food, Beverage & Tobacco $ 5,744,781
- ------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.3%
Health Care Equipment -- 0.7%
16,143,000 Hologic, Inc., 2.0% 12/15/37 $ 13,096,009
- ------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 17
Schedule of Investments | 10/31/09 (continued)
Floating
Principal Rate (b)
Amount (unaudited) Value
Health Care Services -- 0.6%
$12,605,000 Omnicare, Inc., 3.25%, 12/15/35 $ 10,036,731
--------------
Total Health Care Equipment & Services $ 23,132,740
- -----------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.1%
Real Estate Operating Companies -- 0.1%
1,900,000 Forest City Enterprises, Inc., 5.0%, 10/15/16 $ 1,736,125
--------------
Total Real Estate $ 1,736,125
- -----------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.1%
Electronic Equipment & Instruments -- 0.1%
1,665,000 L-1 Identity Solutions, Inc., 3.75%, 5/15/27 $ 1,494,337
--------------
Total Technology Hardware & Equipment $ 1,494,337
- -----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.9%
Wireless Telecommunication Services -- 0.9%
17,800,000 NII Holdings, Inc., 3.125%, 6/15/12 $ 15,775,250
--------------
Total Telecommunication Services $ 15,775,250
- -----------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $94,288,527) $ 105,050,378
- -----------------------------------------------------------------------------------------------------
Shares
PREFERRED STOCKS -- 0.9%
MATERIALS -- 0.4%
Diversified Metals & Mining -- 0.4%
70,700 Freeport-McMoran Copper & Gold, Inc., 6.75%,
5/1/10 $ 7,564,900
--------------
Total Materials $ 7,564,900
- -----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.5%
Diversified Financial Services -- 0.3%
6,440 Bank of America Corp., 7.25%, 12/31/49 $ 5,418,165
- -----------------------------------------------------------------------------------------------------
Multi-Sector Holding -- 0.2%
60,000 Vale Capital, Ltd., 5.5%, 6/15/10 $ 3,151,200
--------------
Total Diversified Financials $ 8,569,365
- -----------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $12,062,501) $ 16,134,265
- -----------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.5%
ENERGY -- 0.1%
Oil & Gas Equipment & Services -- 0.1%
10,477,315 Skeie Drilling & Production ASA* $ 1,043,493
--------------
Total Energy $ 1,043,493
- -----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Floating
Rate (b)
Shares (unaudited) Value
MATERIALS -- 0.4%
Commodity Chemicals -- 0.4%
459,468 Georgia Gulf Corp.* $ 6,602,555
- ------------------------------------------------------------------------------------------------------------
Forest Products -- 0.0%
244,090 Ainsworth Lumber Co., Ltd.* $ 409,096
-- ------------
Total Materials $ 7,011,651
- ------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.0%
Diversified Financial Services -- 0.0%
159,647 Hold Co.* $ 295,347
-- ------------
Total Diversified Financials $ 295,347
- ------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $9,103,470) $ 8,350,491
- ------------------------------------------------------------------------------------------------------------
Principal
Amount
ASSET BACKED SECURITIES -- 2.8%
CONSUMER SERVICES -- 0.3%
Restaurants -- 0.3%
$ 6,240,000 Dunkin Brands Master Finance LLC, 8.28%, 6/20/31
(144A) $ 5,075,304
--------------
Total Consumer Services $ 5,075,304
- ------------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 0.3%
Food Retail -- 0.3%
8,785,000 Dominos Pizza Master Issuer LLC, 7.629%, 4/25/37 $ 6,522,863
--------------
Total Food & Drug Retailing $ 6,522,863
- ------------------------------------------------------------------------------------------------------------
BANKS -- 1.9%
Thrifts & Mortgage Finance -- 1.9%
2,837,523 0.84 ACE 2004-HE4 M1, Floating Rate Note, 12/25/34 $ 1,947,629
988,025 0.33 ACE Securities Corp., Floating Rate Note, 7/25/36 400,298
2,073,839 Amortizing Residential, 1.51875%, 1/25/32 772,298
1,215,923 0.83 Bayview Financial Acquisition LP, Floating Rate Note,
8/28/44 1,051,878
1,868,728 0.35 Bear Stearns Asset Backed Securities, Inc., 3656%,
1/25/37 1,525,685
1,480,000 0.70 Bear Stearns Asset Backed Securities, Inc., Floating
Rate Note, 1/25/47 221,635
4,720,000 0.92 Bear Stearns Asset Backed Securities, Inc., Floating
Rate Note 3/25/35 3,045,496
8,090,000 0.45 Carrington Mortgage Loan Trust LLC, Floating Rate
Note, 12/25/36 3,315,104
1,017,156 0.35 Carrington Mortgage Loan Trust LLC, Floating Rate
Note, 2/25/32 884,331
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 19
Schedule of Investments | 10/31/09 (continued)
Floating
Principal Rate (b)
Amount (unaudited) Value
Thrifts & Mortgage Finance -- (continued)
$ 3,684,805 0.36 Carrington Mortgage Loan Trust LLC, Floating Rate
Note, 2/25/35 $ 3,224,579
3,800,000 0.34 Carrington Mortgage Loan Trust LLC, Floating Rate
Note, 10/25/36 2,889,792
1,700,000 0.89 Countrywide Asset-Backed Certificates, Inc., Floating
Rate Note, 11/25/34 649,681
2,470,886 0.43 Countrywide Asset-Backed Certificates, Inc., Floating
Rate Note, 7/25/36 1,735,604
1,228,804 0.60 FBR Securitization Trust, Floating Rate Note,
10/25/35 694,351
551,974 0.43 FFML 2006-FF4 A2, Floating Rate Note, 3/25/36 361,913
1,800,000 0.37 Gsamp Trust, Floating Rate Note, 1/25/37 1,391,812
3,576,927 0.36 Lehman XS Trust., Floating Rate Note, 8/25/36 1,320,633
8,075,134 0.59 Lehman XS Trust., Floating Rate Note, 12/25/35 2,210,905
2,244,383 0.35 Morgan Stanley ABS Capital, Inc., Floating Rate Note,
2/25/37 1,899,430
792,763 0.36 Morgan Stanley ABS Capital, Inc., Floating Rate Note,
2/25/37 685,943
2,086,495 0.35 Option One Mortgage Loan Trust, Floating Rate Note,
7/25/36 1,558,914
2,107,793 0.41 Residential Asset Mortgage, Products, Inc., Floating
Rate Note, 10/25/35 1,666,562
1,685,389 0.45 Residential Asset Mortgage, Products, Inc., Floating
Rate Note, 3/25/36 1,162,292
--------------
$ 34,616,765
--------------
Total Banks $ 34,616,765
- ----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.3%
Consumer Finance -- 0.0%
507,855 0.47 Residential Asset Securities Corp., Floating Rate Note,
1/25/35 $ 410,126
--------------
- ----------------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 0.3%
1,601,133 Aircraft Finance Trust, 0.84%, 5/15/24 $ 1,040,737
7,021,883 0.72 Aircraft Finance Trust, Floating Rate Note, 5/15/24 2,808,753
--------------
$ 3,849,490
- ----------------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.0%
920,000 0.40 MLMI 2006-AR1 A2C, Floating Rate Note, 3/25/37 $ 315,091
--------------
Total Diversified Financials $ 4,574,707
- ----------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $64,954,007) $ 50,789,639
- ----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Floating
Principal Rate (b)
Amount (unaudited) Value
- ---------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.8%
MATERIALS -- 0.2%
Forest Products -- 0.2%
$ 4,315,000 T SRA R 2006-1 F, 7.5296%, 10/15/36 (144A) $ 3,754,050
--------------
Total Materials $ 3,754,050
- ---------------------------------------------------------------------------------------------------------------
BANKS -- 1.1%
Thrifts & Mortgage Finance -- 1.1%
2,984,448 0.61 Countrywide Alternative Loan Trust, Inc., Floating Rate
Note, 1/25/36 $ 866,826
2,510,295 0.59 Countrywide Alternative Loan Trust, Inc., Floating Rate
Note, 9/25/35 1,359,705
3,215,298 Countrywide Home Loan Trust, Inc., 4.5%, 9/25/35 2,631,343
1,311,080 0.61 Countrywide Home Loans, Inc., Floating Rate Note,
3/25/35 443,764
2,767,587 0.59 Countrywide Home Loans, Inc., Floating Rate Note,
3/25/35 695,786
4,219,682 0.71 DSLA 2005-AR6 2A1C, Floating Rate Note, 10/19/45 700,690
349,714 1.00 Impac CMB Trust, Floating Rate Note, 4/25/35 239,599
1,048,269 0.65 Impac CMB Trust, Floating Rate Note, 4/25/35 760,351
1,438,947 0.33 Impac Securities Assets Corp., Floating Rate Note,
11/25/36 622,384
8,594,455 0.51 Luminent Mortgage Trust, Floating Rate Note, 7/25/36 1,042,587
4,890,000 SBA CMBS Trust, 7.825%, 11/15/36 4,841,100
2,122,281 0.55 Structured Asset Mortgage Investments, Inc., Floating
Rate Note, 9/25/45 1,252,430
4,867,773 0.47 WAMU Mortgage Pass-Through Certificates, Floating
Rate Note, 4/25/45 3,540,124
1,235,266 0.73 WAMU Mortgage Pass-Through Certificates, Floating
Rate Note, 7/25/45 604,741
--------------
$ 19,601,430
--------------
Total Banks $ 19,601,430
- ---------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.5%
Integrated Telecommunication Services -- 0.5%
9,670,000 Global Tower Partners Acquisition LLC, 7.87%,
5/15/37 $ 9,186,500
-----------------
Total Telecommunication Services $ 9,186,500
- ---------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $41,478,867) $ 32,541,980
- ---------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 21
Schedule of Investments | 10/31/09 (continued)
Floating
Principal Rate (b)
Amount (unaudited) Value
CORPORATE BONDS -- 79.0%
ENERGY -- 13.4%
Coal & Consumable Fuels -- 1.8%
$ 4,750,000 Adaro Indonesia PT, 7.625%,
10/22/19 (c) $ 4,690,625
2,105,000 Arch Coal, Inc., 8.75%, 8/1/16 2,157,625
8,512,000 Drummond Co., Inc., 9.0%, 10/15/14 (144A) 8,597,120
3,650,000 Empire Cap Resources Pte, Ltd., 9.375%, 12/15/11 3,786,875
3,060,000 Indo Integrated Energy II BV, 9.75%, 11/5/16 3,048,525
750,000 Indo Intergrate Energy BV, 8.5%, 6/1/12 747,319
6,395,000 New World Resources BV, 7.375%, 5/15/15 (144A) 8,805,466
--------------
$ 31,833,555
- ------------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.2%
2,950,000 Petroleum Co. of Trinidad & Tobago, Ltd., 9.75%,
8/14/19 $ 3,348,250
- ------------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.8%
9,498,421 DDI Holding AS, 9.3%, 1/19/12 (144A) $ 8,643,563
1,139,175 DDI Holdings AS, 9.3%, 4/23/12 (144A) 1,053,737
1,250,000 Hercules Offshore, Inc., 10.5%, 10/15/17 1,246,875
13,500,000 Petrolia Drilling ASA, 12.0%, 6/20/12 1,214,803
NOK 17,000,000 11.65 Sevan Drilling ASA, Floating Rate Note, 12/7/12 2,524,833
--------------
$ 14,683,811
- ------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 1.2%
6,910,000 Complete Production Service, Inc., 8.0%, 12/15/16 $ 6,547,225
1,600,000 0.00 DP Producer AS, Floating Rate Note, 12/5/11
(144A) (f) 16,000
4,200,000 Nexus ASA, Floating Rate Note, 3/7/12 1,890,000
NOK 13,000,000 PetroJack AS, 11.0%, 4/12/10 681,443
1,900,000 Petroprod, Ltd., 10.85%, 5/24/13 (f) 133,000
1,200,000 0.00 Petroprod, Ltd., Floating Rate Note, 1/12/12 (f) 144,000
1,400,000 0.00 Sevan Marine ASA, Floating Rate Note, 5/14/13
(144A) 1,092,000
6,300,000 Sevan Marine ASA, 9.25%, 12/20/11 (144A) 5,733,000
NOK 20,500,000 11.99 Sevan Marine ASA, Floating Rate Note, 10/24/12
(144A) 3,152,110
4,231,200 Skeie Drilling And Production ASA, 11.25%, 3/8/13 2,750,280
--------------
$ 22,139,058
- ------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 7.0%
8,305,000 Berry Petroleum Co., 10.25%, 6/1/14 $ 8,886,350
1,225,000 Bill Barrett Corp., 9.875%, 7/15/16 1,298,500
EURO 2,550,000 Chesapeake Energy Corp., 6.25%, 1/15/17 3,454,842
4,750,000 Comstock Resources, Inc., 8.375%, 10/15/17 4,702,500
1,115,000 Concho Resources, Inc., 8.625%, 10/1/17 1,148,450
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Floating
Principal Rate (b)
Amount (unaudited) Value
Oil & Gas Exploration & Production -- (continued)
$ 4,100,000 Continental Resources, 8.25%, 10/1/19 $ 4,212,750
1,130,000 Denbury Resources, Inc., 9.75%, 3/1/16 1,211,925
3,505,000 Harvest Operations Corp., 7.875%, 10/15/11 3,531,288
6,025,000 Hilcorp Energy, 9.0%, 6/1/16 (144A) 6,025,000
4,995,000 Linn Energy LLC, 11.75%, 5/15/17 (144A) 5,550,694
6,500,000 Norse Energy ASA, 10.0%, 7/13/10 988,092
11,303,000 Norse Energy ASA, 6.5%, 7/14/11 (144A) 8,816,340
42,500,000 Norwegian Energy Co., 11.0%, 7/13/10 7,630,195
43,000,000 Norwegian Energy Co., AS, 12.9%, 11/20/14 7,550,912
NOK 48,000,000 PA Resources AB, 8.75%, 3/10/10 8,303,120
2,345,000 Petrohawk Energy Corp., 10.5%, 8/1/14 (c) 2,556,050
2,150,000 Petroquest Energy, Inc., 10.375%, 5/15/12 2,117,750
3,040,000 Plains Exploration & Production Co., 8.625%,
10/15/19 3,047,600
2,535,000 Plains Exploration & Production Co., 10.0%,
3/1/16 (c) 2,712,450
5,635,000 Quicksilver Resources Inc., 7.125%, 4/1/16 5,057,413
6,870,000 Quicksilver Resources, Inc., 9.125%, 8/15/19 6,955,875
7,260,000 Sandridge Energy, Inc., 8.0%, 6/1/18 7,187,400
6,260,000 Sandridge Energy, Inc., 8.625, 4/1/15 6,353,900
1,590,000 Sandridge Energy, Inc., Floating Rate Note, 4/1/14 1,407,500
15,400,000 TNK-BP Finance SA, 7.875%, 3/13/18 (144A) 15,592,500
--------------
$ 126,299,396
- ------------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 1.2%
10,700,000 Petroplus Finance, Ltd., 9.37%, 9/15/19 (144A) $ 10,726,750
8,240,000 Tesoro Corp., 9.75%, 6/1/19 8,466,600
2,000,000 Tesoro Corp., 6.5%, 6/1/17 (144A) 1,790,000
--------------
$ 20,983,350
- ------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.2%
5,540,000 8.38 Enterprise Products LP, Floating Rate Note, 8/1/66 $ 5,429,200
5,030,000 Enterprise Products Operating LP, 7.0%, 6/1/67 4,527,000
1,635,000 Regency Energy Partners LP, 9.375%, 6/1/16 1,724,925
11,725,000 7.20 Southern Union Co., 7.2%, 11/1/66 9,614,500
--------------
$ 21,295,625
--------------
Total Energy $ 240,583,045
- ------------------------------------------------------------------------------------------------------------
MATERIALS -- 10.5%
Aluminum -- 1.3%
11,515,000 Asia Aluminum Holdings, Ltd., 8.0%, 12/23/11
(144A) (f) $ 1,813,613
16,460,000 CII Carbon LLC, 11.125%, 11/15/15 16,213,100
6,866,256 6.83 Noranda Aluminum Acquisition Corp., Floating Rate
Note, 5/15/15 4,823,545
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 23
Schedule of Investments | 10/31/09 (continued)
Floating
Principal Rate (b)
Amount (unaudited) Value
Aluminum -- (continued)
$ 1,250,000 Novelis, Inc., 7.25%, 2/15/15 $ 1,121,875
--------------
$ 23,972,133
- ------------------------------------------------------------------------------------------------------------
Commodity Chemicals -- 1.4%
12,343,000 Basell Finance Co., 8.1%, 3/15/27 (144A) (f) $ 9,504,110
4,100,000 Hexion U.S. Finance/Nova Scotia, Inc., 9.75%,
11/15/14 (c) 3,485,000
3,320,000 Nell AF Sarl, 8.375%, 8/15/15 (144A) (f) 1,026,733
500,000 Nell AF Sarl, 8.375%, 8/15/15 (144A) (f) 107,500
4,835,000 Nova Chemicals Corp., 8.375%, 11/1/16 (144A) 4,859,175
5,755,000 Nova Chemicals Corp., 8.625%, 11/1/19 (144A) (c) 5,826,938
--------------
$ 24,809,456
- ------------------------------------------------------------------------------------------------------------
Construction Materials -- 0.7%
15,675,000 AGY Holding Corp., 11.0%, 11/15/14 $ 12,853,500
540,000 U.S. Concrete, Inc., 8.375%, 4/1/14 379,350
--------------
$ 13,232,850
- ------------------------------------------------------------------------------------------------------------
Diversified Chemical -- 0.6%
EURO 12,065,000 Ineos Group Holdings Plc, 7.875%, 2/15/16 (144A) $ 9,727,732
- ------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.3%
5,705,000 Blaze Recycling & Metals, 13.0%, 7/16/12 $ 3,964,975
6,000,000 FMG Finance Pty, Ltd., 10.625%, 9/1/16 (144A) (c) 6,585,000
11,575,000 Prime Dig Pte, Ltd., 11.75%, 11/3/14 11,561,110
1,000,000 Teck Resources, Ltd., 10.25%, 5/15/16 (c) 1,152,500
--------------
$ 23,263,585
- ------------------------------------------------------------------------------------------------------------
Forest Products -- 0.3%
832,961 Ainsworth Lumber Co., Ltd., 11.0%, 7/29/15 (144A) $ 516,436
3,675,000 Mandra Forestry, Ltd., 12.0%, 5/15/13 (144A) (f) 2,940,000
2,150,000 Sino-Forest Corp., 10.25%, 7/28/14 (144A) 2,289,750
--------------
$ 5,746,186
- ------------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 1.5%
3,758,000 AEP Industries, Inc., 7.875%, 3/15/13 $ 3,626,470
1,380,000 Ardagh Glass Finance Plc, 9.25%, 7/1/16 (144A) 2,174,518
EURO 4,295,000 Consol Glass, Ltd., 7.625%, 4/15/14 (144A) 5,819,038
EURO 9,850,000 Impress Metal Pack Holding NA, 9.25%, 9/15/14
(144A) 14,868,264
--------------
$ 26,488,290
- ------------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.8%
4,655,000 Graphic Packaging Co., 9.5%, 8/15/13 (c) $ 4,777,194
10,400,000 US Corrugated, Inc., 10.0%, 6/1/13 8,736,000
--------------
$ 13,513,194
- ------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Floating
Principal Rate (b)
Amount (unaudited) Value
Paper Products -- 1.2%
$ 2,415,000 Cellu Tissue Holdings, Inc., 11.5%, 6/1/14 $ 2,644,425
1,195,000 Clearwater Paper Corp., 10.625%, 6/15/16 1,302,550
17,020,000 Exopack Holding Corp., 11.25%, 2/1/14 17,275,300
--------------
$ 21,222,275
- ------------------------------------------------------------------------------------------------------------
Precious Metals & Minerals -- 0.1%
2,500,000 Alrosa Finance SA, 8.875%, 11/17/14 (144A) $ 2,509,375
- ------------------------------------------------------------------------------------------------------------
Steel -- 1.3%
12,810,000 Algoma Acquisition Corp., 9.875%, 6/15/15 (144A) $ 10,952,550
EURO 10,800,000 Bulgaria Steel Finance, 12.0%, 5/4/13 (f) 636,186
5,350,000 Evraz Group SA, 8.875%, 4/24/13 (144A) 5,236,313
2,670,000 Evraz Group SA, 9.5%, 4/24/18 (144A) 2,629,950
3,060,000 Ryerson, Inc., 12.0%, 11/1/15 2,998,800
2,505,000 Zlomrex International SA, 8.5%, 2/1/14 (144A) 1,217,368
--------------
$ 23,671,167
--------------
Total Materials $ 188,156,243
- ------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 7.0%
Aerospace & Defense -- 1.1%
8,540,000 Aeroflex, Inc., 11.75%, 2/15/15 $ 8,027,600
881,000 Bombardier, Inc., 7.25%, 11/15/16 1,310,381
2,160,000 DigitalGlobe, Inc. 10.5%, 5/1/14 2,332,800
7,730,000 GeoEye, Inc., 9.625%, 10/1/15 7,981,225
--------------
$ 19,652,006
- ------------------------------------------------------------------------------------------------------------
Building Products -- 0.4%
2,080,000 C10 Capital SPV, Ltd., 6.277%, 5/29/49 $ 2,174,813
1,047,000 6.72 C10 Capital SPV, Ltd., Floating Rate Note, 12/31/49 743,370
3,271,000 Industrias Unidas SA de CV, 11.5%, 11/15/16
(144A) 1,471,950
1,500,000 Panolam Industries International, Inc., 10.75%,
10/1/13 (f) 480,000
2,815,000 USG Corp., 9.75%, 8/1/14 (144A) 2,955,750
--------------
$ 7,825,883
- ------------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.5%
2,625,000 Dycom Industries, Inc., 8.125%, 10/15/15 $ 2,415,000
6,575,000 Esco Corp., 8.625%, 12/15/13 (144A) 6,492,813
270,000 6.65 Esco Corp., Floating Rate Note, 12/15/13 (144A) 246,375
--------------
$ 9,154,188
- ------------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 1.4%
3,840,000 American Railcar Industries, Inc., 7.5%, 3/1/14 $ 3,494,400
4,000,000 Case New Holland, Inc., 7.75%, 9/1/13 (144A) 3,970,000
12,820,000 Commercial Vehicle Group, Inc., 8.0%, 7/1/13 7,307,400
3,480,000 Greenbrier Co., Inc., 8.375%, 5/15/15 2,683,950
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 25
Schedule of Investments | 10/31/09 (continued)
Floating
Principal Rate (b)
Amount (unaudited) Value
Construction & Farm Machinery & Heavy Trucks -- (continued)
$ 7,830,000 Titan Wheel International, Inc., 8.0%, 1/15/12 $ 7,438,500
--------------
$ 24,894,250
- ------------------------------------------------------------------------------------------------------------------
Heavy Electrical Equipment -- 1.1%
19,000,000 Altra Industrial Motion, Inc., 9.0%, 12/1/11 $ 19,403,750
- ------------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.3%
3,590,000 CIA Latino Americano, 9.75%, 5/10/12 $ 2,872,000
5,322,000 Indalex Holding, Inc., 11.5%, 2/1/14 (f) 59,873
4,768,000 Park-Ohio Industries, Inc., 8.375%, 11/15/14 3,742,880
--------------
$ 6,674,753
- ------------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 1.0%
12,135,000 Industrias Metalurgicas Pescar SA, 11.25%,
10/22/14 $ 9,222,600
9,685,000 Mueller Water Products, Inc., 7.375%, 6/1/17 8,377,525
--------------
$ 17,600,125
- ------------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 1.2%
2,000,000 Glencore Finance Europe SA, 8.0%, 2/28/49 $ 1,880,000
9,835,000 Glencore Funding LLC, 6.0%, 4/15/14 (144A) 9,646,817
9,600,000 Intcomex, Inc., 11.75%, 1/15/11 7,656,000
1,500,000 Wesco Distribution, Inc., 7.5%, 10/15/17 1,475,625
--------------
$ 20,658,442
--------------
Total Capital Goods $ 125,863,397
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 1.9%
Commercial Printing -- 0.3%
4,910,000 Sheridan Acquisition Corp., 10.25%, 8/15/11 $ 4,320,800
- ------------------------------------------------------------------------------------------------------------------
Diversified Support Services -- 0.6%
4,000,000 Iron Mountain, Inc., 8.375%, 8/15/21 (c) $ 4,140,000
13,050 MSX International, Inc., 12.5%, 4/1/12 (144A) 7,503,750
--------------
$ 11,643,750
- ------------------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.9%
6,510,000 Aleris International, Inc., 10.0%, 12/15/16 (f) (c) $ 56,963
2,110,000 Aleris International, Inc., 9.0%, 12/15/14 (f) 7,385
1,530,000 Casella Waste Systems, Inc., 11.0%, 7/15/14 1,633,275
EURO 3,022,531 New Reclamation Group, Ltd., 8.125%, 2/1/13
(144A) 3,872,488
4,750,000 Waste Services, Inc., 9.5%, 4/15/14 (c) 4,773,750
4,500,000 Waste Services, Inc., 9.5%, 4/15/14 4,522,500
--------------
$ 14,866,361
- ------------------------------------------------------------------------------------------------------------------
Office Services & Supplies -- 0.1%
2,825,000 Fibria Overseas Finance, Ltd., 9.25%, 10/30/19 $ 2,960,600
--------------
Total Commercial Services & Supplies $ 33,791,511
- ------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Floating
Principal Rate (b)
Amount (unaudited) Value
TRANSPORTATION -- 1.5%
Air Freight & Couriers -- 0.6%
$ 1,095,000 Ceva Group Plc, 10.0%, 12/1/16 (144A) $ 1,032,035
4,700,000 Ceva Group Plc, 10.0%, 9/1/14 (144A) 4,394,500
2,445,000 Ceva Group Plc, 11.625%, 10/1/16 2,481,675
2,562,000 Ceva Group Plc, 12.0%, 9/1/14 3,697,476
--------------
$ 11,605,686
- ------------------------------------------------------------------------------------------------------------
Airlines -- 0.9%
485,097 Continental Airlines, Inc., 8.499%, 5/1/11 $ 450,898
10,940,000 Delta Air Lines, Inc., 12.25%, 3/15/15 10,338,300
5,065,000 Delta Air Lines, Inc., 9.5%, 9/15/14 5,166,300
--------------
$ 15,955,498
--------------
Total Transportation $ 27,561,184
- ------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 2.0%
Auto Parts & Equipment -- 1.9%
7,000,000 Allison Transmission Inc., 11.25%, 11/1/15
(144A) (c) $ 6,930,000
4,500,000 Hawk Corp., 8.75%, 11/1/14 4,522,500
13,040,000 Lear Corp., 8.75%, 12/1/16 (f) 8,867,200
16,550,000 12.00 Stanadyne Corp., Floating Rate Note, 2/15/15 9,102,500
4,265,000 Stanadyne Corp., 10.0%, 8/15/14 3,667,900
1,090,000 Tenneco Automotive, Inc., 8.625%, 11/15/14 (c) 1,027,325
--------------
$ 34,117,425
- ------------------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.1%
1,815,000 Goodyear Tire & Rubber Co., 10.5%, 5/15/16 $ 1,964,738
--------------
Total Automobiles & Components $ 36,082,163
- ------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.4%
Homebuilding -- 0.6%
5,500,000 Corporacion GEO SA de CV, 8.875%, 9/25/14 $ 5,678,750
1,490,000 KB Home Inc., 9.1%, 9/15/17 1,549,600
1,600,000 Meritage Homes Corp., 6.25%, 3/15/15 1,476,000
2,620,000 Urbi Desarrollos Urbanos SA de CV, 8.5%, 4/19/16
(144A) 2,606,900
--------------
$ 11,311,250
- ------------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 0.6%
11,165,000 Yankee Acquisition Corp., 9.75%, 2/15/17 (c) $ 10,523,013
- ------------------------------------------------------------------------------------------------------------
Leisure Products -- 0.1%
1,495,000 Freedom Group, Inc., 10.25%, 8/1/15 $ 1,577,225
- ------------------------------------------------------------------------------------------------------------
Textiles -- 0.1%
1,410,000 Invista Inc., 9.25%, 5/1/12 (144A) $ 1,424,100
--------------
Total Consumer Durables & Apparel $ 24,835,588
- ------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 27
Schedule of Investments | 10/31/09 (continued)
Floating
Principal Rate (b)
Amount (unaudited) Value
CONSUMER SERVICES -- 3.4%
Casinos & Gaming -- 2.9%
$ 9,750,000 Buffalo Thunder Revenue Authority, 9.375%,
12/15/14 (f) $ 1,803,750
EURO 8,515,000 Codere Finance SA, 8.25%, 6/15/15 (144A) 11,285,669
4,805,000 Firekeepers Development Authority, 13.875%, 5/1/15
(144A) 5,189,400
1,535,000 Galaxy Entertainment Financial, Ltd., 9.875%,
12/15/12 (144A) 1,504,300
6,260,000 Little Traverse Bay Odawa Inn, 10.25%, 2/15/14
(144A) 1,971,900
EURO 9,425,000 8.25 Lottomatica S.p.A., Floating Rate Note, 3/31/66
(144A) 13,185,759
5,965,000 Mashantucket Pequot Tribe, 8.5%, 11/15/15 (144A) 1,908,800
EURO 6,165,000 Peermont Global, Ltd., 7.75%, 4/30/14 (144A) 7,717,065
4,971,000 Scientific Games International, Inc., 9.25%, 6/15/19
(144A) 5,070,420
3,065,000 Shingle Springs Tribal, 9.375%, 6/15/15 (144A) 2,176,150
5,095,000 Station Casinos, Inc., 6.625%, 3/15/18 (f) 203,800
--------------
$ 52,017,013
- ------------------------------------------------------------------------------------------------------------
Restaurants -- 0.3%
5,750,000 Arcos Dorados SA, 7.5%, 10/1/19 (c) $ 5,548,750
- ------------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.2%
3,240,000 Kar Holdings, Inc., 10.0%, 5/1/15 (144A) $ 3,321,000
--------------
Total Consumer Services $ 60,886,763
- ------------------------------------------------------------------------------------------------------------
MEDIA -- 2.4%
Broadcasting -- 2.4%
4,508,000 CCH I LLC, 11.0%, 10/1/15 (f) $ 901,600
9,840,000 Hughes Network Systems LLC, 9.5%, 4/15/14 10,012,200
840,000 Hughes Network Systems LLC, 9.5%, 4/15/14 846,300
2,170,000 10.38 Inmarsat Finance Plc, Floating Rate Note, 11/15/12 2,240,525
10,801,687 Intelsat Bermuda, Ltd., 11.5%, 2/4/17 (144A) 10,423,628
2,285,000 Telesat Canada/Telesat LLC, 11.0%, 11/1/15 2,479,225
6,950,000 Telesat Canada/Telesat LLC, 12.5%, 11/1/17 7,618,938
7,709,562 Univision Communications, Inc., 9.75%, 3/15/15
(PIK) (144A) (c) 5,974,911
3,010,000 Univision Communications, Inc., 12.0%, 7/1/14 3,254,563
--------------
$ 43,751,890
--------------
Total Media $ 43,751,890
- ------------------------------------------------------------------------------------------------------------
RETAILING -- 1.1%
Apparel Retail -- 0.0%
EURO 610,000 10.46 EDCON Holdings Proprietary, Ltd., Floating Rate Note,
6/15/15 (144A) $ 547,974
- ------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Floating
Principal Rate (b)
Amount (unaudited) Value
Internet Retail -- 0.7%
$11,020,000 Ticketmaster, Inc., 10.75%, 8/1/16 $ 11,350,600
- ------------------------------------------------------------------------------------------------------------
Specialty Stores -- 0.4%
7,055,000 Sally Holdings LLC, 10.5%, 11/15/16 (c) $ 7,478,300
--------------
Total Retailing $ 19,376,874
- ------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 3.4%
Agricultural Products -- 0.4%
7,260,000 Cosan SA Industrial, 8.25%, 2/15/49 (144A) $ 6,316,200
- ------------------------------------------------------------------------------------------------------------
Brewers -- 0.0%
120,000 Cia Brasileira de Bebida, 8.75%, 9/15/13 $ 139,800
- ------------------------------------------------------------------------------------------------------------
Distillers & Vintners -- 0.1%
EURO 505,649 Belvedere SA, 0.0%, 4/11/14 (f) $ 222,649
EURO 3,286,800 Belvedere SA, 7.692%, 4/11/14 1,306,400
EURO 3,810,000 0.00 Belvedere SA, Floating Rate Note, 5/15/13 (144A) (f) 561,080
--------------
$ 2,090,129
- ------------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 1.8%
2,470,000 Arantes International, Inc., 10.25%, 6/19/13 (f) $ 221,065
7,540,000 Bertin, Ltd., 10.25%, 10/5/16 (144A) (c) 7,492,875
7,158,000 Fabrica de Productos SA de CV, 9.25%, 2/23/17
(144A) 6,728,520
5,300,000 Independencia International, Ltd., 9.875%, 5/15/15
(144A) (f) 1,060,000
8,075,000 Marfrig Overseas, Ltd., 9.625%, 11/16/16 (144A) 8,075,000
9,800,000 Minerva Overseas, Ltd., 9.5%, 2/1/17 (144A) (c) 8,660,750
--------------
$ 32,238,210
- ------------------------------------------------------------------------------------------------------------
Tobacco -- 1.1%
15,355,000 Alliance One International, Inc., 10.0%, 7/15/16 $ 15,969,200
3,500,000 Alliance One International, Inc., 10.0%, 7/15/16
(144A) 3,640,000
--------------
$ 19,609,200
--------------
Total Food, Beverage & Tobacco $ 60,393,539
- ------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.2%
Household Products -- 0.2%
3,090,000 Central Garden & Pet Co., 9.125%, 2/1/13 $ 3,128,625
--------------
Total Household & Personal Products $ 3,128,625
- ------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.7%
Health Care Equipment -- 0.4%
7,435,000 Accellent, Inc., 10.5%, 12/1/13 $ 7,286,300
- ------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.4%
3,202,960 HCA, Inc., 9.625%, 11/15/16 $ 3,399,141
2,285,000 HCA, Inc., 8.5%, 4/15/19 2,422,100
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 29
Schedule of Investments | 10/31/09 (continued)
Floating
Principal Rate (b)
Amount (unaudited) Value
Health Care Facilities -- (continued)
$ 845,000 HCA, Inc., 9.875%, 2/15/17 $ 908,375
--------------
$ 6,729,616
- -------------------------------------------------------------------------------------------------------------
Health Care Services -- 1.6%
565,000 AMR Holdco/Emcar Holdco, 10.0%, 2/15/15 $ 593,250
7,845,000 Dasa Finance Corp., 8.75%, 5/29/18 (144A) 8,256,863
3,665,000 Rural/Metro Corp., 9.875%, 3/15/15 3,674,163
7,125,000 Surgical Care Affiliates, Inc., 10.0%, 7/15/17 (144A) 5,985,000
9,967,668 Surgical Care Affiliates, Inc., 8.875%, 7/15/15
(144A) (PIK) 8,273,164
2,500,000 US Oncology, Inc., 9.125%, 8/15/17 2,637,500
--------------
$ 29,419,940
- -------------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.9%
7,570,000 Biomet, Inc., 10.375%, 10/15/17 $ 8,147,213
2,470,000 Inverness Medical Innovation, Inc., 9.0%, 5/15/16 2,507,050
5,550,000 Inverness Medical Innovation, Inc., 7.875%, 2/1/16 5,466,750
--------------
$ 16,121,013
- -------------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.4%
7,350,000 Multiplan, Inc., 10.375%, 4/15/16 (144A) $ 7,056,000
--------------
Total Health Care Equipment & Services $ 66,612,869
- -------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 0.7%
Biotechnology -- 0.1%
1,890,000 Warner Chilcott Corp., 8.75%, 2/1/15 $ 1,956,150
- -------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.6%
7,875,000 Phibro Animal Health Corp., 10.0, 8/1/13 (144A) $ 7,875,000
3,530,000 Phibro Animal Health Corp., 13.0, 8/1/14 (144A) 3,459,400
--------------
$ 11,334,400
--------------
Total Pharmaceuticals & Biotechnology $ 13,290,550
- -------------------------------------------------------------------------------------------------------------
BANKS -- 3.2%
Diversified Banks -- 2.9%
3,600,000 Alfa Div Pymt Rights Finance, 7.24%, 12/15/11
(144A) $ 3,060,000
6,675,000 ATF Bank JSC, 9.25%, 4/12/12 (144A) 6,641,625
3,360,000 ATF Bank, 9.0%, 5/11/16 (144A) 3,271,800
1,500,000 10.00 ATF Capital BV, 10.0%, 12/31/49 1,200,000
4,530,000 ATF Capital BV, 9.25%, 2/21/14 (144A) 4,416,750
5,425,000 Banco de Credito del Sur, 9.75%, 11/6/69 5,425,000
2,790,000 Banco Macro SA, 8.5%, 2/1/17 2,287,800
2,870,000 Banco Macro SA, 9.75%, 12/18/36 2,296,000
6,230,000 8.66 Banco Macro SA, Floating Rate Note, 6/7/12 4,174,100
2,500,000 8.25 BTA Finance Luxembourg SA, 8.25%, 12/31/49 150,000
5,380,000 Centercredit International BV, 8.625%, 1/30/14
(144A) 4,895,800
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Floating
Principal Rate (b)
Amount (unaudited) Value
Diversified Banks -- (continued)
$10,450,000 International Finance Corp., 9.25%, 3/15/13 $ 5,799,393
3,750,000 9.20 Kazkommerts Finance 2 BV, Floating Rate Note,
11/29/49 2,479,875
1,400,000 Kazkommerts International BV, 8.0%, 11/3/15 1,120,000
2,465,000 Russian Standard Bank ZAO, 7.5%, 10/7/10 (144A) 2,360,238
3,410,000 Temir Capital BV, 9.5%, 5/21/14 784,300
7,070,000 Turanalem Finance BV, 8.5%, 2/10/15 (144A) 1,696,800
--------------
$ 52,059,481
- ------------------------------------------------------------------------------------------------------------
Regional Banks -- 0.2%
3,425,000 Wells Fargo & Co., Floating Rate Note, 12/29/49 $ 3,185,250
- ------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.1%
3,190,000 Hipotecaria Su Casita SA, 8.5%, 10//4/16 (144A) $ 2,635,738
--------------
Total Banks $ 57,880,469
- ------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.3%
Asset Management & Custody Banks -- 0.4%
2,800,000 Janus Capital Group, Inc., 6.5%, 6/15/12 $ 2,785,994
4,820,000 Janus Capital Group, Inc., 6.95%, 6/15/17 4,581,897
--------------
$ 7,367,891
- ------------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.6%
5,370,400 Egidaco Investments Plc, 18.0%, 6/24/11 $ 6,010,635
4,955,000 Ford Motor Credit Co., 5.7%, 1/15/10 (c) 4,957,324
1,295,000 Ford Motor Credit Co. 8.0%, 12/15/16 1,250,983
--------------
$ 12,218,942
- ------------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 0.1%
1,135,000 Ibis Re, Ltd., 11.2775%, 5/10/12 $ 1,224,438
- ------------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.8%
19,915,000 5.79 Goldman Sachs Capital Corp., Floating Rate Note,
12/29/49 $ 14,811,781
- ------------------------------------------------------------------------------------------------------------
Specialized Finance -- 2.4%
11,305,000 Ace Cash Express, Inc., 10.25%, 10/1/14 (144A) $ 8,817,900
7,360,000 Cantor Fitzgerald LP, 7.875%, 10/15/19 7,411,152
2,700,000 Capital One Capital, 10.25%, 8/15/39 3,081,321
19,800,000 NCO Group, Inc., 11.875%, 11/15/14 13,662,000
12,325,000 7.68 NCO Group, Inc., Floating Rate Note, 11/15/13 9,521,063
--------------
$ 42,493,436
--------------
Total Diversified Financials $ 78,116,488
- ------------------------------------------------------------------------------------------------------------
INSURANCE -- 4.2%
Insurance Brokers -- 1.7%
11,140,000 Alliant Holdings, Inc., 11.0%, 5/1/15 (144A) $ 10,861,500
14,710,000 Hub International Holdings, Ltd., 10.25%,
6/15/15 (144A) 13,569,975
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 31
Schedule of Investments | 10/31/09 (continued)
Floating
Principal Rate (b)
Amount (unaudited) Value
Insurance Brokers -- (continued)
$ 400,000 Hub International Holdings Ltd., 9.0%, 12/15/14
(144A) $ 382,000
4,841,000 Usi Holdings Corp., 9.75%, 5/15/15 (144A) 4,308,490
2,634,000 6.68 Usi Holdings Corp., Floating Rate Note, 11/15/14 2,173,050
--------------
$ 31,295,015
- ------------------------------------------------------------------------------------------------------------
Life & Health Insurance -- 0.3%
5,230,000 Prudential Financial, Inc., 8.875%, 6/15/38 $ 5,556,875
- ------------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.9%
3,320,000 7.00 Liberty Mutual Group Co., 7.0%, 3/15/37 (144A) $ 2,632,123
10,500,000 10.75 Liberty Mutual Group Co., Floating Rate Note,
6/15/58 (144A) 11,025,000
3,037,081 Sul America Partecipacoe SA, 8.625%,
2/15/12 (144A) 3,192,731
--------------
$ 16,849,854
- ------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.1%
2,000,000 Kingsway America, Inc., 7.5%, 2/1/14 $ 1,600,000
- ------------------------------------------------------------------------------------------------------------
Reinsurance -- 1.2%
1,375,000 15.20 Atlas Reinsurance Plc, Floating Rate Note, 1/10/11
Cat Bond (144A) $ 1,968,200
1,875,000 7.19 Blue Fin, Ltd., Floating Rate Note, 4/10/12 1,667,813
1,000,000 8.92 Caelus Re, Ltd., Floating Rate Note, 6/7/11 951,200
1,750,000 18.03 Carillon, Ltd., Floating Rate Note, 1/10/11 1,765,925
2,600,000 12.03 Globecat, Ltd., Cat Bond, Floating Rate Note, 1/2/13
(144A) 2,247,440
375,000 8.78 Globecat, Ltd., Cat Bond, Floating Rate Note, 1/2/13
(144A) 350,025
1,000,000 8.56 Green Valley, Ltd., Floating Rate Note, 1/10/11
(144A) 1,416,839
985,000 14.00 MBIA Insurance Corp., Floating Rate Note, 1/15/33
(144A) 423,550
250,000 MultiCat Mexico 2009, Ltd., 0.0%, 10/19/12 252,675
750,000 MultiCat Mexico 2009, Ltd., 0.0%, 10/19/12 751,650
250,000 MultiCat Mexico 2009, Ltd., 0.0%, 10/19/12 252,675
250,000 MultiCat Mexico 2009, Ltd., 0.0%, 10/19/12 250,725
325,000 7.20 Muteki, Ltd., Cat Bond, Floating Rate Note, 5/24/11 314,373
500,000 7.07 Nelson Re, Ltd., Floating Rate Note, 6/6/11 482,400
435,000 7.45 Newton Re, Ltd., Cat Bond, Floating Rate Note,
12/24/10 (144A) 429,954
745,000 9.75 Newton Re, Ltd., Cat Bond, Floating Rate Note,
12/24/10 (144A) 725,258
4,165,000 Platinum Underwriters Holdings, Ltd., 7.5%, 6/1/17 3,997,067
1,900,000 14.15 Residential Re, Floating Rate Note, 6/6/11 1,877,390
1,010,000 19.42 Successor II, Ltd., Cat Bond, Floating Rate Note,
4/6/10 1,008,788
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Floating
Principal Rate (b)
Amount (unaudited) Value
Reinsurance -- (continued)
$ 1,925,000 27.67 Successor II, Ltd., Cat Bond, Floating Rate Note,
4/6/10 $ 1,924,038
--------------
$ 23,057,985
--------------
Total Insurance $ 78,359,729
- ------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.3%
Diversified Real Estate Activities -- 0.4%
8,190,000 BR Malls International Finance, Ltd., 9.75%,
12/31/49, Perpetual (144A) $ 8,149,050
- ------------------------------------------------------------------------------------------------------------
Real Estate Operating Companies -- 0.9%
6,750,000 Alto Palermo SA, 7.875%, 5/11/17 (144A) $ 5,130,000
6,037,065 8.86 Alto Palermo SA, Floating Rate Note, 6/11/12 (144A) 3,863,721
8,405,000 Inversiones Y Rep SA, 8.5%, 2/2/17 (144A) (c) 6,797,544
--------------
$ 15,791,265
--------------
Total Real Estate $ 23,940,315
- ------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.3%
Application Software -- 0.5%
9,840,000 Vangent, Inc., 9.625%, 2/15/15 $ 9,372,600
- ------------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.4%
7,025,000 First Data Corp., 9.875%, 9/24/15 (144A) (c) $ 6,480,563
- ------------------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.7%
10,983,000 Terremark Worldwide, Inc., 12.0%, 6/15/17 $ 12,136,215
- ------------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.4%
7,920,000 Activant Solutions, Inc., 9.5%, 5/1/16 $ 7,207,200
- ------------------------------------------------------------------------------------------------------------
Systems Software -- 0.3%
17,350,000 Pegasus Solutions, Inc., 10.5%, 4/15/15 $ 5,725,500
--------------
Total Software & Services $ 40,922,078
- ------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.6%
Computer Storage & Peripherals -- 0.1%
1,815,000 Seagate Technology International LLC, 10.0%, 5/1/14 $ 2,014,650
- ------------------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.5%
8,975,000 Da-Lite Screen Co., Inc., 9.5%, 5/15/11 $ 8,582,344
--------------
Total Technology Hardware & Equipment $ 10,596,994
- ------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 7.5%
Alternative Carriers -- 1.7%
12,430,000 Global Crossing, Ltd., 12.0%, 9/15/15 (144A) $ 13,331,175
12,765,000 Paetec Holdings Corp., 8.875%, 6/30/17 12,637,350
4,500,000 Paetec Holdings Corp., 9.5%, 7/15/15 (c) 4,117,500
--------------
$ 30,086,025
- ------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 33
Schedule of Investments | 10/31/09 (continued)
Floating
Principal Rate (b)
Amount (unaudited) Value
Integrated Telecommunication Services -- 2.4%
$17,340,000 Broadview Networks Holdings, Inc., 11.375%, 9/1/12 $ 16,126,200
7,690,000 Cincinatti Bell, Inc., 8.25%, 10/15/17 7,593,875
5,315,000 Frontier Communications Corp., 8.125%, 10/1/18 5,334,931
2,390,000 GCI, Inc., 7.25%, 2/15/14 2,312,325
3,345,000 GCI, Inc., 8.625%, 11/15/19 3,345,000
6,460,000 Mastec, Inc., 7.625%, 2/1/17 6,072,400
2,450,000 Qwest Corp., 8.375%, 5/1/16 2,529,625
--------------
$ 43,314,356
- ------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 3.4%
EURO 1,185,000 Cell C Pty, Ltd., 11.0%, 7/1/15 (144A) $ 1,179,075
6,835,000 Cricket Communications, Inc., 9.375%, 11/1/14 (c) 6,629,950
7,600,000 Digicel, Ltd., 9.25%, 9/1/12 (144A) 7,714,000
5,000,000 Intelsat Jackson Holdings, Ltd., 8.5%, 11/1/19
(144A) 5,018,750
8,180,000 NII Capital Corp., 10.0%, 8/15/16 (144A) 8,629,900
3,315,000 True Move Co., Ltd., 10.375%, 8/1/14 (144A) 3,099,525
18,455,000 True Move Co., Ltd., 10.75%, 12/16/13 (144A) 17,624,525
4,750,000 UBS (Vimpelcom), 8.25%, 5/23/16 (144A) 4,815,313
6,475,000 Vip Fin, 9.125%, 4/30/18 (144A) 6,750,188
--------------
$ 61,461,226
--------------
Total Telecommunication Services $ 134,861,607
- ------------------------------------------------------------------------------------------------------------
UTILITIES -- 3.0%
Electric Utilities -- 0.7%
10,585,000 CIA Transporte Energia, 8.875%, 12/15/16 (144A) $ 8,997,250
1,254,119 FPL Energy National Wind Co., 6.125%, 3/25/19
(144A) 1,147,155
1,303,985 FPL Energy Wind Funding Co., 6.876%, 6/27/17
(144A) 1,212,706
2,085,000 TXU Energy Co., 10.25%, 11/1/15 (c) 1,480,350
--------------
$ 12,837,461
- ------------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.8%
16,917,000 Transport De Gas Del Sur SA, 7.875%, 5/14/17
(144A) $ 14,781,229
- ------------------------------------------------------------------------------------------------------------
Independent Power Producer & Energy Traders -- 0.8%
1,007,000 AES Chivor Corp., 9.75%, 12/30/14 (144A) $ 1,147,980
10,600,000 Biofuel Energy Corp., 10.0%, 6/7/12 5,300,000
6,245,000 Intergen NV, 9.0%, 6/30/17 6,494,800
1,152,349 Juniper Generation LLC, 6.79%, 12/31/14 (144A) 1,079,947
--------------
$ 14,022,727
- ------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Floating
Principal Rate (b)
Amount (unaudited) Value
Multi-Utilities -- 0.7%
$ 5,860,000 NSG Holdings LLC, 7.75%, 12/15/25 (144A) $ 5,230,036
7,599,104 Ormat Funding Corp., 8.25%, 12/30/20 6,383,248
--------------
$ 11,613,284
--------------
Total Utilities $ 53,254,701
- ------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $1,593,537,791) $1,422,246,622
- ------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 0.8%
Government -- 0.8%
ITL 1,450,000,000 Banco Nac De Desen Econo, 8.0%, 4/28/10 $ 1,122,261
BRL 2,560,000 Federal Republic of Brazil, 5.875%, 1/15/19 2,713,600
BRL 2,480,000 Republic of Brazil, 12.5%, 1/5/22 1,575,005
COP 2,510,000,000 Republic of Colombia, 11.75%, 3/1/10 1,286,242
COP 10,258,000,000 Republic of Colombia, 12.0%, 10/22/15 6,191,771
1,250,000 Republic of Peru, 7.125%, 3/30/19 1,418,750
--------------
$ 14,307,629
- ------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $11,766,773) $ 14,307,629
- ------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 0.4%
COMMERCIAL SERVICES & SUPPLIES -- 0.0%
Environmental & Facilities Services -- 0.0%
4,400,000 7.28 Ohio Air Quality Development, Floating Rate Note,
6/8/22 $ 440,000
--------------
Total Commercial Services & Supplies $ 440,000
- ------------------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.4%
Municipal Airport -- 0.0%
15,000 New Jersey Economic Development Authority Special
Facility Revenue, 7.0%, 11/15/30 $ 13,928
- ------------------------------------------------------------------------------------------------------------
Municipal General -- 0.4%
8,875,000 12.00 Non-Profit PFD FDG TR 1, Floating Rate Note, 9/15/37 $ 6,570,429
--------------
Total Government $ 6,584,357
- ------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $13,271,675) $ 7,024,357
- ------------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN INTERESTS -- 5.6%**
ENERGY -- 0.0%
Oil & Gas Exploration & Production -- 0.0%
646,177 4.25 Venoco, Inc., Second Lien, 5/7/14 $ 582,367
--------------
Total Energy $ 582,367
- ------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 35
Schedule of Investments | 10/31/09 (continued)
Floating
Principal Rate (b)
Amount (unaudited) Value
MATERIALS -- 0.3%
Diversified Metals & Mining -- 0.0%
$ 550,000 0.00 Blaze Recycling & Metals LLC, Term Loan,
5/14/12 (g) $ 561,000
- ------------------------------------------------------------------------------------------------------------
Steel -- 0.3%
10,925,367 9.25 Niagara Corp., Term Loan, 6/30/14 $ 5,080,296
--------------
Total Materials $ 5,641,296
- ------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.3%
Construction & Engineering -- 0.2%
672,525 8.00 Custom Building Products, Inc., Term Loan, First Lien,
10/20/11 $ 657,393
3,150,000 10.75 Custom Building Products, Inc., Loan (Second Lien),
4/20/12 3,004,313
--------------
$ 3,661,706
- ------------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.1%
2,230,000 6.32 Oshkosh Corp., Term B Loan, 12/6/13 $ 2,231,542
--------------
Total Capital Goods $ 5,893,248
- ------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.1%
Diversified Support Services -- 0.0%
501,673 3.82 Rental Service Corp., Initial Term Loan, Second Lien,
11/30/13 $ 455,268
- ------------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.0%
646,993 2.28 Brickman Holdings, Inc., Tranche B Term, 1/23/14 $ 610,869
--------------
Total Commercial Services & Supplies $ 1,066,137
- ------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.2%
Air Freight & Couriers -- 0.2%
298,331 3.25 Ceva Group Plc, EGL Term Loan, 11/4/13 $ 257,311
EURO 6,767,576 8.56 Louis Topco, Ltd., Term Loan, 6/1/17 2,890,222
331,707 3.28 TNT Logistics Plc, Additional Pre Funded Loan,
11/4/13 275,870
881,330 3.24 TNT Logistics Plc, U.S. Term Loan, 11/4/13 743,989
--------------
$ 4,167,392
--------------
Total Transportation $ 4,167,392
- ------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.0%
Auto Parts & Equipment -- 0.0%
997,384 3.01 Allison Transmission, Inc., Term Loan, 8/7/14 $ 897,468
--------------
Total Automobiles & Components $ 897,468
- ------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.4%
Casinos & Gaming -- 0.3%
990,170 2.79 Gateway Casinos & Entertainment, Inc., Delayed Draw,
9/30/14 $ 820,604
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Floating
Principal Rate (b)
Amount (unaudited) Value
Casinos & Gaming -- (continued)
$ 4,888,655 2.79 Gateway Casinos & Entertainment, Inc., Term Advance,
9/30/14 $ 4,051,473
6,250,000 5.79 Gateway Casinos & Entertainment, Inc., Advance
(Second Lien), 3/31/15 1,847,656
--------------
$ 6,719,733
--------------
Total Consumer Services $ 6,719,733
- ------------------------------------------------------------------------------------------------------------
MEDIA -- 0.2%
Cable & Satellite -- 0.2%
1,000,000 6.75 CCO Holdings LLC, Incremental Loan, 10/28/14 $ 865,500
1,395,150 6.25 Charter Communications, Inc., New Term Loan,
3/6/14 1,272,078
1,098,031 2.49 Knology, Inc., Term Loan, 6/30/12 1,069,207
--------------
$ 3,206,785
--------------
Total Media $ 3,206,785
- ------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.1%
Household Products -- 0.1%
656,330 8.00 Spectrum Brands, Inc., Dollar B Term Loan, 6/30/12 $ 643,531
33,670 5.65 Spectrum Brands, Inc., Letter of Credit, 6/30/12 33,014
400,000 2.25 Yankee Candle Co., Inc., Term Loan, 2/6/14 374,500
--------------
$ 1,051,045
--------------
Total Household & Personal Products $ 1,051,045
- ------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Supplies -- 0.3%
4,710,000 4.49 Inverness Medical Innovations, Inc., Term Loan,
6/26/15 $ 4,521,600
--------------
Total Health Care Equipment & Services $ 4,521,600
- ------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 0.6%
Biotechnology -- 0.5%
3,406,780 0.00 Warner Chilcott Corp., Term A Loan, 10/30/14 $ 3,417,693
1,703,390 0.00 Warner Chilcott Corp., Term B-1 Loan, 4/30/15 1,708,847
3,747,458 0.00 Warner Chilcott Corp., Term B-2 Loan, 4/30/15 3,765,146
--------------
$ 8,891,686
--------------
Total Pharmaceuticals & Biotechnology $ 8,891,686
- ------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.3%
Consumer Finance -- 0.0%
518,644 3.04 Dollar Financial Corp., Canadian Borrower Term Loan,
10/30/12 $ 493,360
--------------
$ 493,360
- ------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 37
Schedule of Investments | 10/31/09 (continued)
Floating
Principal Rate (b)
Amount (unaudited) Value
Specialized Finance -- 0.2%
$ 3,416,814 3.28 Ace Cash Express, Inc., Term Loan, 10/5/13 $ 2,887,208
1,048,848 7.50 NCO Financial System, Inc., Term B Advance, 5/15/13 1,016,727
--------------
$ 3,903,935
--------------
Total Diversified Financials $ 4,397,295
- ------------------------------------------------------------------------------------------------------------
INSURANCE -- 1.1%
Insurance Brokers -- 0.7%
2,891,000 3.28 Alliant Holdings I, Inc., Term Loan, 8/21/14 $ 2,695,858
3,225,000 0.00 HUB International Holdings, Ltd., Incremental Term
Loan, 6/13/14 3,196,781
941,358 2.74 HUB International Holdings, Ltd., Delaed Draw,
6/13/14 830,348
4,188,030 2.74 HUB International Holdings, Ltd., Initial Term Loan,
6/13/14 3,694,156
598,469 3.04 Usi Holdings Corp., Tranche B Term Loan, 5/5/14 521,167
890,000 Usi Holdings Corp., Series C New Term Loan, 5/5/14 866,638
--------------
$ 11,804,948
- ------------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.4%
4,134,604 2.84 AmWins Group, Inc., Initial Term Loan, 6/8/13 $ 3,380,039
6,750,000 5.79 AmWins Group, Inc., Initial Term Loan (Second Lien),
6/9/14 4,725,000
--------------
$ 8,105,039
--------------
Total Insurance $ 19,909,987
- ------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.2%
Systems Software -- 0.1%
3,050,000 8.50 Allen Systems Group, Inc., Term Loan (First Lien),
10/18/13 $ 3,048,730
--------------
Total Software & Services $ 3,048,730
- ------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.6%
Electronic Equipment & Instruments -- 0.6%
6,575,269 3.64 Huawei-3Com Co., Ltd., Tranche B Term, 9/28/12 $ 6,279,382
5,219,910 4.49 Scitor Corp., Term Loan, 9/26/14 4,619,621
--------------
$ 10,899,003
--------------
Total Technology Hardware & Equipment $ 10,899,003
- ------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS -- 0.1%
Semiconductor Equipment -- 0.1%
2,349,442 12.50 Freescale Semiconductor, Inc., New Term Loan
(Incremental), 12/15/14 $ 2,417,968
--------------
Total Semiconductors $ 2,417,968
- ------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Floating
Principal Rate (b)
Amount (unaudited) Value
TELECOMMUNICATION SERVICES -- 0.5%
Integrated Telecommunication Services -- 0.5%
$ 737,417 3.25 Telesat Canda, U.S. Term II Loan, 10/31/14 $ 709,418
8,585,840 3.25 Telesat Canda, U.S. Term I Loan, 10/31/14 8,259,849
--------------
$ 8,969,267
--------------
Total Telecommunication Services $ 8,969,267
- ---------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.5%
Electric Utilities -- 0.4%
1,495,000 3.74 Texas Competitive Electric Holdings, Inc., Delayed Draw
Term Loan, 10/10/14 $ 640,515
7,035,242 3.74 Texas Competitive Electric Holdings, Inc., Initial
Tranche B-2, 10/10/14 5,468,803
--------------
$ 6,109,318
- ---------------------------------------------------------------------------------------------------------------
Independent Power Producer & Energy Traders -- 0.0%
1,021,910 2.02 NRG Energy, Inc., Term Loan, 2/1/13 $ 964,001
554,370 2.03 NRG Energy, Inc., Credit Linked, 2/1/13 522,952
--------------
$ 1,486,953
--------------
Total Utilities $ 7,596,271
- ---------------------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTERESTS
(Cost $125,736,638) $ 99,877,278
- ---------------------------------------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.1%
ENERGY -- 0.1%
Oil & Gas Exploration & Production -- 0.1%
NOK 11,303,000 Norse Energy Corp. ASA* $ 1,678,717
--------------
Total Energy $ 1,678,717
- ---------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.0%
Forest Products -- 0.0%
3,250 Mandra Forestry Finance, Ltd., Expires 5/15/13* $ 32,500
--------------
Total Materials $ 32,500
- ---------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.0%
Independent Power Producer & Energy Traders -- 0.0%
498,836 Biofuel Energy ASA* $ --
--------------
Total Utilities $ --
- ---------------------------------------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $1,460,198) $ 1,711,217
- ---------------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 3.9%
Securities Lending Collateral -- 3.9% (d)
Certificates of Deposit:
3,368,113 Bank of Nova Scotia 0.25%, 11/17/09 $ 3,368,113
3,555,230 BNP Paribas NY, 0.3%, 11/17/09 3,555,230
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 39
Schedule of Investments | 10/31/09 (continued)
Floating
Principal Rate (b)
Amount (unaudited) Value
Securities Lending Collateral -- (continued)
$ 2,245,409 Rabobank Nederland NY, 0.24%, 12/11/09 $ 2,245,409
2,245,409 Societe Generale, 0.27%, 12/4/09 2,245,409
1,646,657 Nordea NY, 0.21%, 12/22/09 1,646,657
2,245,409 Toronto Dominion, 0.23%, 12/16/09 2,245,409
--------------
$ 15,306,227
- -------------------------------------------------------------------------------------------------------------
Commercial Paper:
3,741,865 BBVA London, 0.29%, 11/6/09 $ 3,741,865
2,244,415 CBA Financial, 0.27%, 12/29/09 2,244,415
2,244,567 HND AF, 0.30%, 12/15/09 2,244,567
1,870,775 HSBC, 0.24%, 12/2/09 1,870,775
374,152 HSBC, 0.24%, 12/3/09 374,152
3,367,109 NABPP, 0.29%, 12/7/09 3,367,109
2,244,922 Cafco, 0.40%, 12/9/09 2,244,922
1,309,809 Char FD, 0.30%, 11/2/09 1,309,809
1,122,468 Ciesco, 0.33%, 11/23/09 1,122,468
1,122,416 Ciesco, 0.25%, 12/7/09 1,122,416
1,870,676 ABB LLC, 0.59%, 12/28/09 1,870,676
1,870,561 BCS FUN, 0.60%, 12/29/09 1,870,561
1,871,138 Kithaw, 0.23%, 11/3/09 1,871,138
1,870,662 Ranger, 0.24%, 12/11/09 1,870,662
1,099,557 TB LLC, 0.20%, 12/10/09 1,099,557
1,870,661 GE, 0.23%, 12/28/09 1,870,661
1,306,118 Santander U.S. Debt, 0.37%, 11/20/09 1,306,118
--------------
$ 31,401,871
- -------------------------------------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
10,852,809 Deutsche Bank, 0.06%, 11/2/09 $ 10,852,809
8,294,614 Barclays Capital Markets, 0.05%, 11/2/09 8,294,614
--------------
$ 19,147,423
- -------------------------------------------------------------------------------------------------------------
Shares
Money Market Mutual Funds:
1,496,939 Dreyfus Preferred Money Market Fund $ 1,496,938
1,871,174 Fidelity Prime Money Market Fund 1,871,174
--------------
$ 3,368,112
- -------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $69,223,633) $ 69,223,633
- -------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 101.7%
(Cost $2,036,884,078) (a)(e) $1,827,257,489
- -------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND
- -------------------------------------------------------------------------------------------------------------
LIABILITIES -- (1.7)% $ (31,345,905)
- -------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $1,795,991,584
============================================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global High Yield Fund | Annual Report | 10/31/09
* Non-income producing security.
(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, 2009, the value of these securities amounted to $611,289,310
or 34.0% of total net assets.
** Senior Floating Rate Note loan interests in which the Fund invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending rate plus a premium. These base lending rates
are generally (i) the lending rate offered by one or more major European
banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime rate
offered by one or more major United States banks, (iii) the certificate
of deposit or (iv) other base lending rates used by commercial lenders.
The rate shown is the coupon rate at period end.
(a) At October 31, 2009, the net unrealized loss on investments based on cost
for federal income tax purposes of $2,045,408,503 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 60,034,945
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (278,185,959)
-------------
Net unrealized loss $(218,151,014)
=============
(b) Debt obligation with a variable interest rate. Rate shown is rate at
period end.
(c) At October 31, 2009, the following securities were out on loan:
Principal
Amount Security Value
$4,700,000 Adaro Indonesia Pts, 7.625%, 10/22/19 $4,641,250
3,004,000 Aleris International, Inc., 10.0%, 12/15/16 26,285
7,002,000 Allison Transmission, Inc., 11.25%, 11/1/15 (144A) 6,931,980
768,000 Arcos Dorados SA, 7.5%, 10/1/19 741,120
200,000 Bertin, Ltd., 10.25%, 10/5/16 (144A) 198,750
4,975,000 Cricket Communications, Inc., 9.375%, 11/1/14 4,825,750
1,043,000 First Data Corp., 9.875%, 9/24/15 (144A) 962,168
5,000,000 FMG Finance Pty, Ltd., 10.625%, 9/1/16 (144A) 5,487,500
3,000,000 Ford Motor Credit Co., 5.7%, 1/15/10 3,001,407
700,000 Graphic Packaging Co., 9.5%, 8/15/13 718,375
3,965,000 Hexion U.S. Finance/Nova Scotia, Inc., 9.75%, 11/15/14 3,370,250
760,000 Inversiones Y Rep SA, 8.5%, 2/2/17 (144A) 614,650
1,045,000 Iron Mountain, Inc., 8.375%, 8/15/21 1,081,575
5,000,000 Minerva Overseas, Ltd., 9.5%, 2/1/17 (144A) 4,418,750
3,000,000 Nova Chemicals Corp., 8.625%, 11/1/19 (144A) 3,037,500
2,252,000 Paetec Holdings Corp., 9.5%, 7/15/15 2,060,580
235,000 Petrohawk Energy Corp., 10.5%, 8/1/14 256,150
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 41
Schedule of Investments | 10/31/09 (continued)
Principal
Amount Security Value
$ 2,500,000 Plains Exploration & Production Co., 10.0%, 3/1/16 $ 2,675,000
6,209,400 Sally Holdings LLC, 10.5%, 11/15/16 6,581,964
1,149,000 Teck Resources, Ltd., 10.25%, 5/15/16 1,324,223
1,079,000 Tenneco Automotive, Inc., 8.625%, 11/15/14 1,016,958
2,044,000 TXU Energy Co., 10.25%, 11/1/15 1,451,240
7,000,000 Univision Communications, Inc., 9.75%, 3/15/15 (PIK) (144A) 5,425,000
100,000 Waste Services, Inc., 9.5%, 4/15/14 100,500
4,899,000 Yankee Acquisition Corp., 9.75%, 2/15/17 4,617,308
-----------
Total $65,566,232
===========
(d) Securities lending collateral is managed by Credit Suisse AG, New York
Branch.
(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 65.8%
Netherlands 3.6
Norway 3.4
Argentina 3.4
Canada 3.3
Luxembourg 2.9
Bermuda 2.8
Brazil 2.4
Cayman Islands 1.9
United Kingdom 1.3
Thailand 1.2
South Africa 1.1
Indonesia 1.0
Other (individually less than 1%) 5.9
-----
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, 2009 aggregated $612,080,431 and $404,433,049,
respectively.
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (Including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.)
Level 3 -- significant unobservable inputs (Including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of October 31, 2009, in valuing
the Fund's assets:
Level 1 Level 2 Level 3 Total
Asset backed securities $ -- $ 50,789,639 $ -- $ 50,789,639
Collateralized mortgage obligations -- 32,541,980 -- 32,541,980
Corporate bonds -- 1,422,246,622 -- 1,422,246,622
Convertible corporate bonds -- 105,050,378 -- 105,050,378
Municipal bonds -- 7,024,357 -- 7,024,357
Foreign government bonds -- 14,307,629 -- 14,307,629
Senior Floating rate loan interests -- 99,316,278 -- 99,316,278
Senior Floating rate loan interests
(Diversified metals & mining) -- -- 561,000 561,000
Common stocks 8,055,144 -- -- 8,055,144
Common Stock (Diversified
financial services) -- 295,347 -- 295,347
Preferred stock 16,134,265 -- -- 16,134,265
Warrants 1,678,717 -- -- 1,678,717
Warrants (forest products) -- 32,500 -- 32,500
Temporary cash investments -- 65,855,521 -- 65,855,521
Money market mutual funds 3,368,112 -- -- 3,368,112
- -------------------------------------------------------------------------------------------------------------------
Total $ 29,236,238 $ 1,797,460,251 $ 561,000 $ 1,827,257,489
- -------------------------------------------------------------------------------------------------------------------
Other Financial Instruments* $ -- $ 1,251,204 $ -- $ 1,251,204
===================================================================================================================
* Other financial instruments Include foreign exchange contracts
The following is a reconciliation of assets valued using significant observable
inputs (Level 3):
Senior floating
rate loan
interests
Balance as of 10/31/08 $ --
Realized gain (loss) --
Change in unrealized appreciation (depreciation) --
Net purchases (sales) --
Transfers in and out of Level 3* 561,000
- -------------------------------------------------------------------------------------------------------------------
Balance as of 10/31/09 $561,000
===================================================================================================================
* Transfers are calculated on the date of transfer.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 43
Statement of Assets and Liabilities | 10/31/09
ASSETS
Investment in securities, at fair value (including securities loaned of
$65,566,232) (cost $2,036,884,078) $1,827,257,489
Cash 11,353,096
Foreign currencies, at value (cost $19,222,167) 19,604,235
Receivables --
Investment securities sold 19,897,606
Fund shares sold 13,304,835
Dividends and interest 41,707,612
Forward foreign currency portfolio hedge contracts, open-net 1,251,204
Due from Pioneer Investment Management, Inc. 129,469
Other 113,317
- --------------------------------------------------------------------------------------------
Total assets $1,934,618,863
- --------------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 58,589,274
Fund shares repurchased 6,096,322
Dividends 3,948,741
Upon return of securities loaned 69,223,633
Due to affiliates 386,001
Unrealized depreciation on unfunded corporate loans 168,497
Accrued expenses 214,811
- --------------------------------------------------------------------------------------------
Total liabilities $ 138,627,279
- --------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $2,279,010,342
Distributions in excess of net investment income (11,841,737)
Accumulated net realized loss on investments and foreign currency
transactions (263,504,994)
Net unrealized loss on investments (209,795,086)
Net unrealized gain on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies 2,123,059
- --------------------------------------------------------------------------------------------
Total net assets $1,795,991,584
- --------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $1,018,039,551/108,402,656 shares) $ 9.39
Class B (based on $96,411,052/10,289,400 shares) $ 9.37
Class C (based on $461,644,370/49,424,588 shares) $ 9.34
Class Y (based on $215,614,068/23,315,419 shares) $ 9.25
Class Z (based on $4,282,543/442,872 shares) $ 9.67
MAXIMUM OFFERING PRICE:
Class A ($9.39 [divided by] 95.5%) $ 9.83
============================================================================================
The accompanying notes are an integral part of these financial statements.
44 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Statement of Operations
For the Year Ended 10/31/09
INVESTMENT INCOME:
Dividends $ 1,258,477
Interest 159,159,573
Income from securities loaned, net 621,424
- --------------------------------------------------------------------------------------------------
Total investment income $ 161,039,474
- --------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 8,318,905
Transfer agent fees
Class A 1,708,231
Class B 195,720
Class C 474,487
Class Y 17,641
Class Z 11,753
Distribution fees
Class A 1,837,993
Class B 787,314
Class C 3,518,933
Shareholder communications expense 914,393
Administrative fees 554,950
Custodian fees 75,124
Registration fees 139,619
Professional fees 124,743
Printing expense 178,219
Fees and expenses of nonaffiliated trustees 47,471
Interest expense 557
Miscellaneous 179,309
- --------------------------------------------------------------------------------------------------
Total expenses $ 19,085,362
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (1,695,074)
Less fees paid indirectly (3,227)
- --------------------------------------------------------------------------------------------------
Net expenses $ 17,387,061
- --------------------------------------------------------------------------------------------------
Net investment income $ 143,652,413
- --------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on:
Investments $(207,623,461)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (3,061,224)
Payments made by affiliates (see Note 10) 90,225 $(210,594,460)
- --------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $ 550,862,674
Unfunded corporate loans (168,497)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 4,530,555 $ 555,224,732
- --------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $ 344,630,272
- --------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 488,282,685
==================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 45
Statements of Changes in Net Assets
For the Years Ended 10/31/09 and 10/31/08, respectively
Year Ended Year Ended
10/31/09 10/31/08
FROM OPERATIONS:
Net investment income $ 143,652,413 $ 172,321,165
Net realized loss on investments and foreign
currency transactions (210,594,460) (37,017,129)
Change in net unrealized gain (loss) on investments and
foreign currency transactions 555,224,732 (744,809,721)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 488,282,685 $ (609,505,685)
- --------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($1.05 and $1.07 per share, respectively) $ (101,244,569) $ (117,007,302)
Class B ($0.99 and $0.98 per share, respectively) (10,415,385) (11,706,103)
Class C ($0.98 and $0.98 per share, respectively) (45,563,837) (47,074,030)
Class Y ($1.06 and $1.10 per share, respectively) (11,938,602) (4,599,648)
Class Z ($1.10 and $1.11 per share, respectively) (337,941) (93,462)
Net realized gain:
Class A ($0.00 and $0.11 per share, respectively) -- (11,626,930)
Class B ($0.00 and $0.11 per share, respectively) -- (1,378,099)
Class C ($0.00 and $0.11 per share, respectively) -- (5,275,114)
Class Y ($0.00 and $0.11 per share, respectively) -- (216,293)
Class Z ($0.00 and $0.11 per share, respectively) -- (862)
- --------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (169,500,334) $ (198,977,843)
- --------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 851,625,371 $ 934,606,415
Reinvestment of distributions 104,565,568 130,817,482
Cost of shares repurchased (722,621,837) (1,159,572,916)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ 233,569,102 $ (94,149,019)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 552,351.453 $ (902,632,547)
NET ASSETS:
Beginning of year 1,243,640,131 2,146,272,678
- --------------------------------------------------------------------------------------------------------
End of year $1,795,991,584 $1,243,640,131
- --------------------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net investment income $ (11,841,737) $ 19,630,042
- --------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
46 Pioneer Global High Yield Fund | Annual Report | 10/31/09
'09 Shares '09 Amount '08 Shares '08 Amount
Class A
Shares sold 71,305,346 $552,164,765 64,231,474 $ 706,399,059
Reinvestment of distributions 9,804,275 70,947,511 8,783,363 95,007,758
Less shares repurchased (73,268,200) (544,674,791) (83,768,449) (910,222,109)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) 7,841,421 $ 78,437,485 (10,753,612) $(108,815,292)
===================================================================================================
Class B
Shares sold 2,055,778 $ 15,719,320 1,872,999 $ 20,776,025
Reinvestment of distributions 642,242 4,609,625 543,181 5,872,664
Less shares repurchased (3,478,051) (25,951,101) (4,020,218) (43,426,405)
- ---------------------------------------------------------------------------------------------------
Net decrease (780,031) $ (5,622,156) (1,604,038) $ (16,777,716)
===================================================================================================
Class C
Shares sold 15,362,901 $115,048,918 12,453,883 $ 137,480,872
Reinvestment of distributions 2,979,837 21,429,790 2,358,488 25,370,625
Less shares repurchased (15,160,890) (111,625,672) (17,457,701) (187,400,662)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) 3,181,848 $ 24,853,036 (2,645,330) $ (24,549,165)
===================================================================================================
Class Y
Shares sold 20,695,368 $165,647,763 5,986,739 $ 64,817,327
Reinvestment of distributions 1,014,867 7,421,633 441,547 4,501,261
Less shares repurchased (5,164,271) (38,226,131) (1,593,514) (16,344,391)
- ---------------------------------------------------------------------------------------------------
Net increase 16,545,964 $134,843,265 4,834,772 $ 52,974,197
===================================================================================================
Class Z
Shares sold 405,717 $ 3,044,605 483,865 $ 5,133,132
Reinvestment of distributions 20,137 157,009 6,611 65,174
Less shares repurchased (286,757) (2,144,142) (194,606) (2,179,349)
- ---------------------------------------------------------------------------------------------------
Net increase 139,097 $ 1,057,472 295,870 $ 3,018,957
===================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 47
Financial Highlights
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/09 10/31/08 10/31/07 10/31/06 10/31/05
Class A
Net asset value, beginning of period $ 7.56 $ 12.30 $ 12.34 $ 11.88 $ 11.79
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.90 $ 1.03 $ 0.96 $ 0.90 $ 0.90
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 1.98 (4.59) 0.04 0.49 0.09
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.88 $ (3.56) $ 1.00 $ 1.39 $ 0.99
Distributions to shareowners:
Net investment income $ (1.05) $ (1.07) $ (0.98) $ (0.90) $ (0.90)
Net realized gain -- (0.11) (0.06) (0.03) --
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.05) $ (1.18) $ (1.04) $ (0.93) $ (0.90)
- --------------------------------------------------------------------------------------------------------------------------------
Redemption Fee $ -- $ -- $ -- $ 0.00(a) $ 0.00(a)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.83 $ (4.74) $ (0.04) $ 0.46 $ 0.09
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.39 $ 7.56 $ 12.30 $ 12.34 $ 11.88
=================================================================================================================================
Total return* 43.56% (31.45)% 8.30% 12.12% 8.52%
Ratio of net expenses to average net assets+ 1.10% 1.10% 1.06% 1.10% 1.04%
Ratio of net investment income to average net assets+ 11.68% 9.25% 7.73% 7.44% 7.40%
Portfolio turnover rate 33% 25% 31% 41% 36%
Net assets, end of period (in thousands) $1,018,040 $759,925 $1,369,044 $ 659,845 $ 343,886
Ratios with no waiver of fees and assumption of
expenses by PIM and no reduction for fees paid
indirectly:
Net expenses 1.32% 1.18% 1.06% 1.18% 1.18%
Net investment income 11.46% 9.17% 7.73% 7.37% 7.26%
Ratios with waiver of fees by PIM and reduction for
fees paid indirectly:
Net expenses 1.10% 1.10% 1.06% 1.10% 1.04%
Net investment income 11.68% 9.25% 7.73% 7.44% 7.40%
- ---------------------------------------------------------------------------------------------------------------------------------
(a) 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.
48 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/09 10/31/08 10/31/07 10/31/06 10/31/05
Class B
Net asset value, beginning of period $ 7.54 $ 12.27 $ 12.31 $ 11.85 $ 11.76
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.81 $ 0.93 $ 0.86 $ 0.80 $ 0.80
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.01 (4.57) 0.03 0.49 0.09
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.82 $ (3.64) $ 0.89 $ 1.29 $ 0.89
- ---------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.99) $ (0.98) $ (0.87) $ (0.80) $ (0.80)
Net realized gain -- (0.11) (0.06) (0.03) --
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.99) $ (1.09) $ (0.93) $ (0.83) $ (0.80)
- ---------------------------------------------------------------------------------------------------------------------------------
Redemption Fee $ -- $ -- $ -- $ 0.00(a) $ 0.00(a)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.83 $ (4.73) $ (0.04) $ 0.46 $ 0.09
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.37 $ 7.54 $ 12.27 $ 12.31 $ 11.85
================================================================================================================================
Total return* 42.42% (32.02)% 7.41% 11.25% 7.62%
Ratio of net expenses to average net assets+ 2.00% 1.92% 1.86% 1.96% 1.91%
Ratio of net investment income to average net assets+ 10.88% 8.47% 6.93% 6.63% 6.57%
Portfolio turnover rate 33% 25% 31% 41% 36%
Net assets, end of period (in thousands) $96,411 $ 83,412 $155,523 $ 130,563 $ 98,462
Ratios with no waiver of fees and assumption of
expenses by PIM and no reduction for fees paid
indirectly:
Net expenses 2.08% 1.92% 1.86% 1.96% 1.97%
Net investment income 10.80% 8.47% 6.93% 6.60% 6.51%
Ratios with waiver of fees paid by PIM and reduction
for fees paid indirectly:
Net expenses 2.00% 1.92% 1.85% 1.96% 1.91%
Net investment income 10.88% 8.47% 6.94% 6.60% 6.57%
- ---------------------------------------------------------------------------------------------------------------------------------
(a) 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.
+ 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 | 10/31/09 49
Financial Highlights (continued)
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/09 10/31/08 10/31/07 10/31/06 10/31/05
Class C
Net asset value, beginning of period $ 7.51 $ 12.24 $ 12.28 $ 11.82 $ 11.74
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.82 $ 0.93 $ 0.86 $ 0.80 $ 0.80
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 1.99 (4.57) 0.04 0.49 0.08
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.81 $ (3.64) $ 0.90 $ 1.29 $ 0.88
- ---------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.98) $ (0.98) $ (0.88) $ (0.80) $ (0.80)
Net realized gain -- (0.11) (0.06) (0.03) --
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.98) $ (1.09) $ (0.94) $ (0.83) $ (0.80)
- ---------------------------------------------------------------------------------------------------------------------------------
Redemption Fee $ -- $ -- $ -- $ 0.00(a) $ 0.00(a)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.83 $ (4.73) $ (0.04) $ 0.46 $ 0.08
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.34 $ 7.51 $ 12.24 $ 12.28 $ 11.82
================================================================================================================================
Total return* 42.56% (32.08)% 7.48% 11.30% 7.60%
Ratio of net expenses to average net assets+ 1.98% 1.85% 1.82% 1.89% 1.84%
Ratio of net investment income to average net assets+ 10.78% 8.55% 6.96% 6.66% 6.63%
Portfolio turnover rate 33% 25% 31% 41% 36%
Net assets, end of period (in thousands) $ 461,644 $ 347,459 $ 598,195 $ 413,213 $ 288,314
Ratios with no waiver of fees and assumption of
expenses by PIM and no reduction for fees paid
indirectly:
Net expenses 1.98% 1.85% 1.82% 1.89% 1.91%
Net investment income 10.78% 8.55% 6.96% 6.66% 6.56%
Ratios with waiver of fees by PIM and reduction for
fees paid indirectly:
Net expenses 1.98% 1.85% 1.82% 1.89% 1.84%
Net investment income 10.78% 8.55% 6.96% 6.66% 6.63%
- ---------------------------------------------------------------------------------------------------------------------------------
(a) 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.
+ 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 | 10/31/09
Year Ended Year Ended Year Ended 12/28/05 (a)
10/31/09 10/31/08 10/31/07 to 10/31/06
Class Y
Net asset value, beginning of period $ 7.46 $ 12.10 $ 12.19 $ 11.95
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.94 $ 1.05 $ 0.97 $ 0.77
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 1.91 (4.48) (0.01) 0.23
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.85 $ (3.43) $ 0.96 $ 1.00
Distributions to shareowners:
Net investment income (1.06) (1.10) (0.99) (0.76)
Net realized gain -- (0.11) (0.06) --
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.79 $ (4.64) $ (0.09) $ 0.24
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.25 $ 7.46 $ 12.10 $ 12.19
=======================================================================================================================
Total return* 43.78% (30.96)% 8.12% 8.63%(b)
Ratio of net expenses to average net assets+ 0.78% 0.74% 0.70% 0.73%**
Ratio of net investment income to average net assets+ 11.43% 9.82% 8.05% 7.66%**
Portfolio turnover rate 33% 25% 31% 41%(b)
Net assets, end of period (in thousands) $215,614 $ 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 0.78% 0.74% 0.70% 0.73%**
Net investment income 11.43% 9.82% 8.05% 7.66%**
Ratios with waiver of fees by PIM and reduction for
fees paid indirectly:
Net expenses 0.78% 0.74% 0.70% 0.73%**
Net investment income 11.43% 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 | 10/31/09 51
Financial Highlights (continued)
Year Ended Year Ended 7/6/07 (a)
10/31/09 10/31/08 to 10/31/07
Class Z
Net asset value, beginning of period $ 7.79 $ 12.31 $ 12.65
- -----------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 1.00 $ 1.07 $ 0.33
Net realized and unrealized gain (loss) on investments (4.37) (0.35)
and foreign currency transactions 1.98 -------- ---------
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.98 $ (3.30) $ (0.02)
Distributions to shareowners:
Net investment income (1.10) (1.11) (0.32)
Net realized gain -- (0.11) --
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.88 $ (4.52) $ (0.34)
- -----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.67 $ 7.79 $ 12.31
=====================================================================================================
Total return* 43.69% (29.21)% (0.09)%(b)
Ratio of net expenses to average net assets+ 0.90% 0.90% 0.69%**
Ratio of net investment income to average net assets+ 11.46% 9.85% 8.30%**
Portfolio turnover rate 33% 25% 31%(b)
Net assets, end of period (in thousands) $ 4,283 $ 2,366 $ 97
Ratios with no waiver of fees and assumption of
expenses by PIM and no reduction for fees paid
indirectly:
Net expenses 1.23% 1.11% 0.69%**
Net investment income 11.13% 9.64% 8.30%**
Ratios with waiver of fees by PIM and reduction for
fees paid indirectly:
Net expenses 0.90% 0.90% 0.69%**
Net investment income 11.46% 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.
52 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Notes to Financial Statements | 10/31/09
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. The Fund is 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 designated as 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 identical rights (based on relative net asset values) to
assets and liquidation proceeds. Share classes can bear different rates of
class-specific fees and expenses such as transfer agent and distribution fees.
Differences in class-specific fees and expenses will result in differences in
net investment income and, therefore, the payment of different dividends from
net investment income earned by each class. The Amended and Restated Declaration
of Trust of the Fund gives the Board the flexibility to specify either per share
voting or dollar-weighted voting when submitting matters for shareholder
approval. Under per share voting, each share of a class of the Fund is entitled
to one vote. Under dollar-weighted voting, a shareholder's voting power is
determined not by the number of shares owned, but by the dollar value of the
shares on the record date. Each share class has exclusive voting rights with
respect to matters affecting only that class, including with respect to the
distribution plan for that class. There is no distribution plan for Class Y
shares or Class Z shares. Class B shares convert to Class A shares approximately
eight years after the date of purchase.
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 contain unaudited information regarding
the Fund's principal risks. Please refer to those documents when considering the
Fund's principal risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Pioneer Global High Yield Fund | Annual Report | 10/31/09 53
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.
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.
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:
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. Senior
floating rate loan interests (senior loans) are valued in accordance with
guidelines established by the Board of Trustees at the mean between the
last available bid and asked prices from one or more brokers or dealers as
obtained from Loan Pricing Corporation. For the limited number of senior
loans for which no reliable price quotes are available, such senior loans
will be valued by Loan Pricing Corporation through the use of pricing
matrices to determine valuations. Fixed income securities with remaining
maturity of more than sixty days are valued at prices supplied by
independent pricing services, which consider such factors as market prices,
market events, quotations from one or more brokers, Treasury spreads,
yields, maturities and ratings. Valuations may be supplemented by dealers
and other sources, as required. 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. Equity securities that have
traded on an exchange are valued at the last sale price on the principal
exchange where they are traded. Equity securities that have not traded on
the date of valuation, or securities for which sale prices are not
available, generally are valued using the mean between the last bid and
asked prices. Securities or loans for which market prices and/or quotations
are not readily available or are considered to be unreliable are valued
54 Pioneer Global High Yield Fund | Annual Report | 10/31/09
using fair value methods pursuant to procedures adopted by the Board of
Trustees and may include yield equivalents or a pricing matrix.
The Fund may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset
value. Thus, the valuation of the Fund's securities may differ from
exchange prices. At October 31, 2009 one security was valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services) representing 0.03% of net assets. Inputs used
in the valuation of a security using fair value methods include credit
ratings, the financial condition of the company, current market conditions
and comparable securities. Short-term fixed income securities with
remaining maturities of sixty days or less generally are valued at
amortized cost. Money market mutual funds are valued at net asset value.
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on debt securities are accreted/amortized for
financial reporting purposes over the life of the respective securities,
and such accretion/amortization is included in interest income. 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,
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. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the statement of operations from
the effects of
Pioneer Global High Yield Fund | Annual Report | 10/31/09 55
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 may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized 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 for the prior three fiscal years remain subject to examination by tax
authorities.
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, 2009, The fund had a net capital loss carryforward of
$263,058,652, of which, the following amounts will expire between 2016 and
2017 if not utilized: $58,199,667 in 2016 and $204,858,985 in 2017.
At October 31, 2009, the Fund has reclassified $5,623,858 to decrease
distributions in excess of net investment income and $5,623,858 to decrease
accumulated net realized loss on investments and foreign 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.
56 Pioneer Global High Yield Fund | Annual Report | 10/31/09
The tax character of distributions paid during the years ended October 31,
2009 and October 31, 2008 were as follows:
2009 2008
Distributions paid from:
Ordinary income $169,500,334 $184,322,998
Long-term capital gain -- 14,654,845
-----------------------------------------------------------------------------
Total $169,500,334 $198,977,843
=============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2009:
2009
Distributable earnings:
Undistributed ordinary income $ 1,436,291
Capital loss carryforward (263,058,652)
Current year dividend payable (3,948,741)
Unrealized depreciation (217,447,656)
-----------------------------------------------------------------------------
Total $ (483,018,758)
=============================================================================
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 $276,900 in underwriting commissions on the sale of
Class A shares during the year ended October 31, 2009.
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 its 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 do not pay distribution fees.
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, are allocated among the classes of shares based
on the number of accounts in each class and the ratable allocation of
related out-of-pocket expenses (see Note 4).
Pioneer Global High Yield Fund | Annual Report | 10/31/09 57
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 and at the same time, except that net
investment income dividends to Class A, Class B, Class C, Class Y and Class
Z shares can reflect 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, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian or a subcustodian of the
Fund. 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. When entering into a securities loan
transaction, the Fund typically receives cash collateral from the borrower
equal to at least the value of the securities loaned, which is invested in
temporary investments. Credit Suisse, New York Branch, as the Fund's
securities lending agent, manages the Fund's securities lending collateral.
The income earned on the investment of collateral is shared with the
borrower and the lending agent in payment of any rebate due to the borrower
with respect to the securities loan, and in compensation for the lending
agent's services to the Fund. The Fund also continues to receive interest
or payments in lieu of dividends or interest on the securities loaned. Gain
or loss on the value of the loaned securities that may occur during the
term of the loan will be for the account of the Fund. The amount of the
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 terminate the loan and recover the
securities from the borrower with prior notice. The Fund is required to
return the cash collateral to the borrower and could suffer a loss if the
value of the collateral, as invested, has declined.
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. When the
58 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Fund is 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 Fund as seller of
protection 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
described 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.
The Fund had no credit default swap contracts in the portfolio at October
31, 2009.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 59
2. Unfunded Loan Commitments
As of October 31, 2009, the Fund had unfunded loan commitments of approximately
$2,233,729 (excluding unrealized depreciation on those commitments of $168,497
as of October 31, 2009), which could be extended at the option of the borrower
pursuant to the following loan agreements:
Unfunded
Borrower: Commitment
Dollar Financial Corp., Delayed Draw Term Loan $ 381,356
Texas Competitive, Delayed Draw Term Loan $ 660,000
Warner Chilcott Corp, Delayed Draw Term Loan $1,192,373
3. 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 0.70% 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. For the year
ended October 31, 2009, the effective management fee (excluding waivers and/or
assumption of expenses) was equivalent to 0.66% of the average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce 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, 2012 for Class A shares
and through March 1, 2011 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, 2012 for
Class Z shares. There can be no assurance that PIM will extend the expense
limitation agreement for any class of shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$65,167 in management fees, administrative costs and certain other
reimbursements payable to PIM at October 31, 2009.
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.
60 Pioneer Global High Yield Fund | Annual Report | 10/31/09
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder activities such as proxy and statement mailings,
outgoing phone calls and omnibus relation contracts. For the year ended October
31, 2009, such out-of-pocket expenses by class of shares were as follows
Shareholder Communications:
Class A $555,655
Class B 51,453
Class C 292,377
Class Y 13,821
Class Z 1,087
- --------------------------------------------------------------------------------
Total $914,393
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $276,455 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 2009.
5. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B and Class C.
Pursuant to the Plan, the Fund pays PFD 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 also 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. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$44,379 in distribution fees payable to PFD at October 31, 2009.
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 (within 12 months for purchases made
on or after April 1, 2009). 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. Shares purchased
as part of an exchange remain subject to any CDSC that applied to the original
purchase of those shares. There is no CDSC for Class Y or Class Z shares.
Proceeds from the CDSCs are paid to PFD. For the six months ended October 31,
2009, CDSCs in the amount of $285,966 were paid to PFD.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 61
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a $165 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 the amount available under the facility
or the limits set for borrowing by the Fund's prospectus and the 1940 Act.
Interest on borrowings is payable at the higher of the London Interbank Offered
Rate (LIBOR) on the borrowing date plus 1.25% on an annualized basis or the
Federal Funds Rate on the borrowing date plus 1.25% on an annualized basis. The
Funds pay an annual commitment fee for this facility. The commitment fee is
allocated among participating Funds based on an allocation schedule set forth in
the credit agreement. For the six months ended October 31, 2009, 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, 2009, the Fund's expenses
were reduced by $3,227 under such arrangements.
8. Forward Foreign Currency Contracts
At October 31, 2009, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average number of contracts open
during the year ended October 31, 2009 was 52,662,500. Open portfolio hedges at
October 31, 2009 were as follows:
Net Net
Contracts to In Exchange Settlement Fair Unrealized
Currency receive For USD Date Value Gain
NOK
(Norwegian
Krone) 65,000,000 $10,075,176 2/05/10 $11,326,380 $1,251,204
At October 31, 2009, there were no outstanding forward currency settlement
contracts.
62 Pioneer Global High Yield Fund | Annual Report | 10/31/09
9. Additional Disclosures about Derivative Instruments and Hedging Activities:
Fair values of derivative instruments as of October 31, 2009:
Derivatives Not
Accounted for as Hedging
Instruments under
Accounting Standards
Codification (ASC) 815
(formerly FASB
Statement 133) Asset Derivatives 2009 Liabilities Derivatives 2009
Balance Sheet Balance Sheet
Location Fair Value Location Fair Value
Foreign Exchange Contracts Receivables* $1,251,204 Payables $ --
Total $1,251,204 $ --
* Foreign exchange contracts are shown as a net receivable on the Statement
of Assets and Liabilities
The effect of derivative instruments on the Statement of Operations for the year
ended October 31, 2009 was as follows:
Derivatives Not
Accounted for as
Hedging Instruments Change in
under Accounting Realized Gain Unrealized Gain
Standards or (Loss) on or (Loss) on
Codification (ASC) Derivatives Derivatives
815 (formerly FASB Location of Gain or (Loss) On Recognized Recognized
Statement 133) Derivatives Recognized in Income in Income in Income
Foreign Exchange Net realized loss on forward foreign
Contracts currency contracts and other assets and
liabilities denominated in foreign
currencies $(3,061,224)
Foreign Exchange Change in unrealized gain (loss) on
Contracts forward foreign currency contracts and
other assets and liabilities denominated
in foreign currencies $4,530,555
10. Payments Made by Affiliates
During the year ended October 31, 2009, Pioneer Investment Management, Inc.,
fully reimbursed the Fund $90,225 for a loss incurred on a trade executed
incorrectly. The amount of the loss was less than 0.01% of the Fund's average
net assets, thus having no impact on the Fund's total return.
11. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure through December
21, 2009, and has determined that there were no subsequent events requiring
recognition or disclosure in the financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 63
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII 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, 2009, 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, 2009, by correspondence with the custodian,
brokers and agent banks or by other appropriate auditing procedures where
replies from brokers and agent banks 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, 2009, 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 21, 2009
64 Pioneer Global High Yield Fund | Annual Report | 10/31/09
ADDITIONAL INFORMATION (unaudited)
The percentages of the Fund's ordinary income distributions that are exempt from
nonresident alien (NRA) tax withholding resulting from qualified interest income
and qualified short term gains were 59.95% and 0.0%, respectively.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 65
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 62 U.S.
registered investment portfolios for which Pioneer serves as investment adviser
(the "Pioneer Funds"). Mr. West serves as a Trustee of 47 U.S. registered
investment portfolios for which Pioneer serves as investment adviser. The
address for all Trustees and all officers of the Fund is 60 State Street,
Boston, Massachusetts 02109.
66 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Interested Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
John F. Cogan, Jr. (83)* 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 (51)* Trustee and Executive Trustee since 2007.
Vice President Serves until a successor
trustee is elected or
earlier retirement or
removal.
- --------------------------------------------------------------------------------
Interested Trustees
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
- --------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (83)* Deputy Chairman and a Director of Pioneer None
Global Asset Management S.p.A. ("PGAM");
Non-Executive 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 (51)* Director, CEO and President of Pioneer None
Investment Management 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); 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.
The outstanding capital stock of PFD, Pioneer and Pioneer Investment Management
Shareholder Services, Inc. ("PIMSS") is indirectly wholly owned by UniCredit
S.p.A. ("UniCredit"), one of the largest banking groups in Italy. Pioneer, the
fund's investment adviser, provides investment management and financial services
to mutual funds, institutional and other clients.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 67
Independent Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
David R. Bock (65) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------
Mary K. Bush (61) 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 (65) Managing Partner, Federal City Capital Advisors (boutique mer- Director of Enterprise Com-
chant bank) (1997 to 2004 and 2008-present); and Executive munity Investment, Inc.
Vice President and Chief Financial Officer, I-trax, Inc. (publicly (privately-held affordable
traded health care services company) (2004 - 2007) housing finance company);
Director of New York Mort-
gage Trust (publicly traded
mortgage REIT); and Direc-
tor of Oxford Analytica, Inc.
(privately-held research and
consulting company)
- ---------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (61) President, Bush International, LLC (international financial Director of Marriott Interna-
advisory 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 Company
Institute
- ---------------------------------------------------------------------------------------------------------------------------
68 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Position Held Length of Service
Name and Age with the Fund and Term of Office
Benjamin M. Friedman (65) Trustee Trustee since 2008.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ---------------------------------------------------------------------
Margaret B.W. Graham (62) Trustee Trustee since 2001.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ---------------------------------------------------------------------
Thomas J. Perna (59) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ---------------------------------------------------------------------
Marguerite A. Piret (61) Trustee Trustee since 2001.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ---------------------------------------------------------------------
Stephen K. West (81) 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 (65) 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 (62) Founding Director, Vice-President and Corporate Secretary, The None
Winthrop Group, Inc. (consulting firm); and Desautels Faculty of
Management, McGill University
- -------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (59) Chief Executive Officer, Quadriserv, Inc. (technology products for None
securities lending industry) (2008 - present); Private investor
(2004 - 2008); and Senior Executive Vice President, The Bank of
New York (financial and securities services) (1986 - 2004)
- -------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (61) 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 (81) Senior Counsel, Sullivan & Cromwell LLP (law firm) Director, The Swiss Helvetia
Fund, Inc. (closed-end
investment company)
- -------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/09 69
Fund Officers
Position Held Length of Service
Name and Age with the Fund and Term of Office
Dorothy E. Bourassa (61) Secretary Since 2003. Serves at
the discretion of the
Board
- ------------------------------------------------------------------------
Christopher J. Kelley (44) Assistant Secretary Since 2003. Serves at
the discretion of the
Board
- ------------------------------------------------------------------------
Mark E. Bradley (49) Treasurer Since 2008. Serves at
the discretion of the
Board
- ------------------------------------------------------------------------
Luis I. Presutti (44) Assistant Treasurer Since 2001. Serves at
the discretion of the
Board
- ------------------------------------------------------------------------
Gary Sullivan (51) Assistant Treasurer Since 2002. Serves at
the discretion of the
Board
- ------------------------------------------------------------------------
David F. Johnson (29) Assistant Treasurer Since 2009. 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 (61) 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 (44) Associate General Counsel of Pioneer since January 2008 None
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 (49) 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 (44) Assistant Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- ---------------------------------------------------------------------------------------------------------------------
Gary Sullivan (51) Fund Accounting Manager - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- ---------------------------------------------------------------------------------------------------------------------
David F. Johnson (29) Fund Administration Manager - Fund Accounting, Administration None
and Controllership Services since November 2008 and Assistant
Treasurer of all of the Pioneer Funds since January 2009; Client
Service Manager - Institutional Investor Services at State Street
Bank from March 2003 to March 2007
- ---------------------------------------------------------------------------------------------------------------------
70 Pioneer Global High Yield Fund | Annual Report | 10/31/09
Position Held Length of Service
Name and Age with the Fund and Term of Office
Teri W. Anderholm (50) Chief Compliance Since 2007. Serves at
Officer the discretion of the
Board
- -----------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Teri W. Anderholm (50) 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 (Febru-
ary 2005 to July 2005); Independent Consultant (July 1997 to
February 2005)
- --------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/09 71
This page for your notes.
72 Pioneer Global High Yield Fund | Annual Report | 10/31/09
This page for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 73
This page for your notes.
74 Pioneer Global High Yield Fund | Annual Report | 10/31/09
This page for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/09 75
This page for your notes.
76 Pioneer Global High Yield Fund | Annual Report | 10/31/09
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
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 $107,900 in 2009 and $107,000 in
2008.
(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, 2009 and 2008.
(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 $24,870 in 2009 and
2008, 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, 2009 and 2008.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Beginning with non-audit service contracts entered into on
or after May 6, 2003, the effective date of the new SEC
pre-approval rules, the Fund's audit committee is required
to pre-approve services to affiliates defined by SEC rules
to the extent that the services are determined to have a
direct impact on the operations or financial reporting of the
Fund. For the years ended October 31, 2009 and 2008,
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 $24,690 in 2009
and $24,870 in 2008.
(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, 2009
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, 2009
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date December 29, 2009
* Print the name and title of each signing officer under his or her signature.