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 811-21823
Pioneer Series Trust V
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, 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: August 31
Date of reporting period: September 1, 2015 through February 29, 2016
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 STOCKHOLDERS.
Pioneer Global
Equity Fund
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Semiannual Report | February 29, 2016
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Ticker Symbols:
Class A GLOSX
Class C GCSLX
Class K PGEKX
Class R PRGEX
Class Y PGSYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 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 24
Notes to Financial Statements 33
Approval of Investment Advisory Agreement 44
Trustees, Officers and Service Providers 49
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 1
President's Letter
Dear Shareowner,
Over the past several years, many investors experienced positive returns across
most major asset classes. However, 2015 was a tale of two markets, with
favorable market conditions in the first half of the year, followed by an abrupt
slowdown and increased volatility beginning in August. The global markets were
challenged by significant economic cross-currents in different geographic
regions and industrial sectors. While the U.S. economy gradually improved,
growth slowed in China. Emerging markets struggled following a decline in
commodity prices, especially oil. While lower energy prices are good for the
consumer, there were ripple effects throughout the global economy.
Against this backdrop, the Standard & Poor's 500 Index rose by just 1.4% in
2015, international equity markets were essentially flat, and emerging market
equities fell sharply. Across U.S. fixed-income sectors, U.S. government and
investment-grade corporate bonds were fairly flat for the year, while high-yield
bonds, as measured by the Bank of America Merrill Lynch Master II High Yield
Index, posted a -4.9% total return.
Entering 2016, we see the U.S. economy growing modestly, against an overall
global economic backdrop that remains fragile and points towards structurally
lower growth. As always in a presidential election year, political rhetoric has
the potential to impact U.S. sectors such as health care in 2016. Economies
around the world in both developed and emerging markets are experiencing deep
structural change. Geopolitical instability on many fronts, the rising risk of
policy mistakes, and market liquidity issues all increase the possibility of
sharp swings in asset values. In this environment, financial markets remain
vulnerable to unusual levels of volatility. While divergences among regions and
industries is an important theme, we are generally optimistic about the outlook
for the U.S. economy, which we expect will see continued, positive growth led
by a strengthened consumer.
Throughout Pioneer's history, we have believed in the importance of active
management. In periods of market volatility, we believe that the value of active
management is even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using proprietary research,
careful risk management, and a long-term perspective. Our ongoing goal is to
produce compelling returns consistent with the stated objectives of our
investment products, and with our shareowners' expectations. We believe our
shareowners can benefit from the experience and tenure of our investment teams
as well as the insights generated from our extensive research process.
2 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
February 29, 2016
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. 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 Equity Fund | Semiannual Report | 2/29/16 3
Portfolio Management Discussion | 2/29/16
In the following interview, portfolio managers Marco Pirondini and David Glazer
discuss the factors that influenced the performance of Pioneer Global Equity
Fund during the six-month period ended February 29, 2016. Mr. Pirondini, Head of
Equities, U.S., Executive Vice President and a portfolio manager at Pioneer, and
Mr. Glazer, Senior Vice President and a portfolio manager at Pioneer, are
responsible for the day-to-day management of the Fund.
Q How did the Fund perform over the six-month period ended February 29, 2016?
A Pioneer Global Equity Fund's Class A shares returned -5.75% at net asset
value during the six-month period ended February 29, 2016, while the Fund's
benchmarks, the Morgan Stanley Capital International (MSCI)
World ND Index and the MSCI All Country World ND Index(1), returned -5.18%
and -5.54%, respectively. During the same period, the average return of the
180 mutual funds in Lipper's Global Multi-Cap Core Funds category was
-5.71%, and the average return of the 1,270 mutual funds in Morningstar's
World Stock Funds category was -5.82%.
Q How would you characterize the investment environment in the global equity
markets during the six-month period ended February 29, 2016?
A Global equity markets struggled to maintain any positive momentum during
the past six months, ultimately posting negative returns. Whenever the
market moved in a favorable direction, it seemed that a negative
geopolitical or economic event would take place to counteract the positive
momentum. Overall, the global economy also had difficulty remaining in
growth mode. During the period, global investment markets were surprised by
and reacted negatively to the Japanese government's decision to adopt
negative short-term interest rates in an effort to boost the country's
economy, restore business confidence, and push back against deflationary
pressures. Second, the price of crude oil further collapsed, reaching
levels much lower than analysts had expected and negatively affecting
several areas of the equity market beyond the energy sector. In addition,
the
1 The MSCI information may only be used for your internal use, may not be
reproduced or redisseminated in any form and may not be used as a basis for
or a component of any financial instruments or products or indices. None of
the MSCI information is intended to constitute investment advice or a
recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future performance
analysis, forecast or prediction. The MSCI information is provided on an
"as is" basis and the user of this information assumes the entire risk of
any use made of this information. MSCI, each of its affiliates and each
other person involved in or related to compiling, computing or creating any
MSCI information (collectively, the "MSCI Parties") expressly disclaims all
warranties (including, without limitation, any warranties of originality,
accuracy, completeness, timeliness, non-infringement, merchantability and
fitness for a particular purpose) with respect to this information. Without
limiting any of the foregoing, in no event shall any MSCI Party have any
liability for any direct, indirect, special, incidental, punitive,
consequential (including, without limitation, lost profits) or any other
damages.
4 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
slowdown in China's economy represented a significant concern for
investors, though U.S. economic steadiness provided some balance. In
Europe, even though the European Central Bank continued to take a series of
actions to boost the economy on the Continent, fundamental factors remained
weak.
Q Would you review the Fund's overall investment approach?
A When picking investments for the portfolio, we examine mid- and large-
capitalization stocks worldwide, including those located in the emerging
markets. From there, we build a diversified* portfolio. We look for stocks
that we think can provide "growth at a reasonable price," and so there is a
strong value component to our analysis. We seek to invest the Fund in
companies that are not only benefiting from operating efficiencies as
reflected in factors such as increased market share and revenues, but that
are also employing their capital efficiently. In particular, we emphasize
strong free cash flow, because that provides companies with the flexibility
to make share buybacks, reinvest in their businesses, make acquisitions,
and raise dividends**. We also look for stocks with attractive dividend
yields as well as those trading at below-market valuations.
Finally, we attempt to assess not only the potential price gains for each
stock, but also the stock's potential for a decline in price if
circumstances become unfavorable. We prefer stocks with the highest
potential upside, relative to their downside.
Q Which of your investment decisions or individual portfolio holdings either
aided or detracted from the Fund's performance relative to its benchmarks
during the six-month period ended February 29, 2016?
A During the period, stock selection results in the health care and
telecommunication services sectors contributed to the Fund's relative
returns, while a significant portfolio underweight to the energy sector,
which was down substantially during the period, also contributed to
relative performance. The Fund's allocation in the financials sector
underperformed due to the damaging effects of the Japanese government's
turn to negative short-term rates on the sector, and thus detracted from
benchmark-relative results. Lastly, the portfolio's lack of exposure to
stocks in the utilities sector, a defensive sector that investors favored
during a period featuring severe short-term market volatility, detracted
from the Fund's relative performance.
With regard to individual holdings in the portfolio, the top performer for
the Fund during the six-month period was Microsoft. Investors have come to
view Microsoft as not only a successful personal computer software firm,
but also as a dynamic growth company that is benefiting from strong
* Diversification does not assure a profit nor protect against loss.
** Dividends are not guaranteed.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 5
momentum within cloud computing. In addition, the Fund's position in health
care giant Johnson & Johnson contributed positively to performance, as the
market took a favorable view of the company's ample drug pipeline. In
Japan, the Fund's shares of Sundrug contributed to returns as the company's
strategy of purchasing small local pharmacies and then increasing their
profitability has worked out well.
Conversely, the Fund's positions in two Japanese banks, Mitsubishi UFJ
Financial and Sumitomo Mitsui Financial, detracted from performance as the
unfavorable interest-rate environment in Japan had a negative impact on
both companies. We have maintained the Fund's positions in both banks,
however, as we view the problematic interest-rate environment in the
country as a short-term phenomenon. Also, the portfolio's holdings in the
Swiss pharmaceutical firm Novartis dragged down the Fund's returns.
Novartis, which has been a very successful holding for the Fund for an
extended period, posted disappointing earnings amid a high valuation. We
trimmed the Fund's position, but continue to have a favorable longer-term
outlook for Novartis.
Q Did you employ derivatives in managing the Fund during the six-month period
ended February 29, 2016, and did those investments have an effect on
performance?
A Over the six-month period, the Fund utilized derivative securities to a
limited degree, seeking to guard against negative currency effects from the
portfolio's holdings in Japan. The Fund's derivative positions had no
effect on performance.
Q What is your outlook and how is the outlook reflected in the Fund's current
positioning?
A In the coming months, we believe that global economic growth will remain
flat to slightly positive. In terms of the Fund's positioning, the
portfolio's benchmark-relative overweights and underweights remain largely
the same. Among defensive and non-cyclical sectors, we continue to
emphasize health care and telecommunication services. The Fund also remains
overweight in the information technology sector. Additionally, the Fund
retains meaningful underweights in energy, materials, and industrials.
In general, we are fine-tuning the portfolio and evaluating whether or not
the Fund should own more of a particular stock if an opportunity exists. In
the financials sector, for example, we are considering adding stocks of
companies that we believe are attractively valued -- U.S. banks in
particular. We also believe that stocks of some emerging markets companies
that struggled mightily due to recent market volatility are starting to
appear attractive.
6 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
Overall, we believe current market valuations appear favorable, and that
our focus on owning shares of companies that are in a stronger-than-average
financial position should benefit Fund performance over time.
Please refer to the Schedule of Investments on pages 17-23 for a full listing of
fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund is subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
Investments in small- and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
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.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
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 opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 7
Portfolio Summary | 2/29/16
Sector Distribution
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(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Information Technology 21.2%
Health Care 21.0%
Financials 19.3%
Consumer Discretionary 13.0%
Consumer Staples 9.4%
Industrials 7.4%
Telecommunication Services 5.7%
Energy 1.2%
Government 0.9%
Materials 0.9%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 55.5%
Japan 15.5%
United Kingdom 7.1%
Switzerland 5.0%
Germany 3.7%
Denmark 2.1%
Ireland 2.0%
France 1.9%
Indonesia 1.7%
Jersey Channel Islands 1.2%
Other (individually less than 1%) 4.3%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Microsoft Corp. 4.74%
--------------------------------------------------------------------------------
2. Apple, Inc. 4.15
--------------------------------------------------------------------------------
3. Cardinal Health, Inc. 3.40
--------------------------------------------------------------------------------
4. CVS Health Corp. 3.15
--------------------------------------------------------------------------------
5. Johnson & Johnson 2.90
--------------------------------------------------------------------------------
6. Roche Holding AG 2.71
--------------------------------------------------------------------------------
7. Mitsubishi Electric Corp. 2.70
--------------------------------------------------------------------------------
8. Allianz SE 2.57
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9. JPMorgan Chase & Co. 2.34
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10. Novartis AG 2.33
--------------------------------------------------------------------------------
* This list excludes temporary cash investments 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 Equity Fund | Semiannual Report | 2/29/16
Prices and Distributions | 2/29/16
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/29/16 8/31/15
--------------------------------------------------------------------------------
A 12.18 13.00
--------------------------------------------------------------------------------
C 11.95 12.72
--------------------------------------------------------------------------------
K 12.19 13.03
--------------------------------------------------------------------------------
R 12.13 12.99
--------------------------------------------------------------------------------
Y 12.21 13.06
--------------------------------------------------------------------------------
Distributions per Share: 9/1/15-2/29/16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.0788 $-- $--
--------------------------------------------------------------------------------
C $ -- $-- $--
--------------------------------------------------------------------------------
K $0.1450 $-- $--
--------------------------------------------------------------------------------
R $0.1293 $-- $--
--------------------------------------------------------------------------------
Y $0.1450 $-- $--
--------------------------------------------------------------------------------
The Morgan Stanley Capital International (MSCI) World ND Index is an unmanaged
measure of the performance of stock markets in the developed world. The MSCI All
Country World ND Index is an unmanaged, free-float-adjusted,
market-capitalization-weighted index that is designed to measure the equity
market performance of developed and emerging markets. The Index consists of 45
country indices comprising 24 developed and 21 emerging market country indices.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees, expenses or sales charges. It is
not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 10-14.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 9
Performance Update | 2/29/16 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Global Equity Fund at public
offering price during the periods shown, compared to that of the Morgan Stanley
Capital International (MSCI) World ND Index and the MSCI All Country World ND
Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
MSCI
Net Public MSCI All
Asset Offering World Country
Value Price ND World
Period (NAV) (POP) Index ND Index
--------------------------------------------------------------------------------
10 Years 3.67% 3.05% 3.82% 3.55%
5 Years 5.13 3.89 4.92 3.71
1 Year -12.11 -17.16 -11.00 -12.32
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.54% 1.30%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI AC World MSCI World
Equity Fund ND Index ND Index
2/06 $ 9,425 $10,000 $10,000
2/07 $11,027 $11,598 $11,586
2/08 $11,357 $11,869 $11,524
2/09 $ 6,128 $ 6,148 $ 6,094
2/10 $ 9,059 $ 9,721 $ 9,403
2/11 $10,517 $11,815 $11,441
2/12 $10,337 $11,639 $11,247
2/13 $11,366 $12,720 $12,450
2/14 $14,092 $15,030 $15,150
2/15 $15,368 $16,166 $16,341
2/16 $13,508 $14,174 $14,544
Call 1-800-225-6292 or visit us.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 5.75% 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 the contractual expense limitation currently in
effect through January 1, 2017, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Equity Fund | Semiannual Report | 2/29/16
Performance Update | 2/29/16 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Global Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index and the MSCI All Country World ND Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
MSCI
MSCI All
World Country
If If ND World
Period Held Redeemed Index ND Index
--------------------------------------------------------------------------------
10 Years 2.76% 2.76% 3.82% 3.55%
5 Years 4.22 4.22 4.92 3.71
1 Year -12.77 -12.77 -11.00 -12.32
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.25% 2.20%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI AC World MSCI World
Equity Fund ND Index ND Index
2/06 $10,000 $10,000 $10,000
2/07 $11,590 $11,598 $11,586
2/08 $11,837 $11,869 $11,524
2/09 $ 6,333 $ 6,148 $ 6,094
2/10 $ 9,277 $ 9,721 $ 9,403
2/11 $10,681 $11,815 $11,441
2/12 $10,392 $11,639 $11,247
2/13 $11,326 $12,720 $12,450
2/14 $13,917 $15,030 $15,150
2/15 $15,056 $16,166 $16,341
2/16 $13,133 $14,174 $14,544
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. 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 the contractual expense limitation currently in
effect through January 1, 2017, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Equity Fund | Semiannual Report | 2/29/16 11
Performance Update | 2/29/16 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class K shares of Pioneer Global Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index and the MSCI All Country World ND Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
MSCI
Net MSCI All
Asset World Country
Value ND World
Period (NAV) Index ND Index
--------------------------------------------------------------------------------
10 Years 3.73% 3.82% 3.55%
5 Years 5.25 4.92 3.71
1 Year -11.66 -11.00 -12.32
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.99% 0.80%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI AC World MSCI World
Equity Fund ND Index ND Index
2/06 $10,000 $10,000 $10,000
2/07 $11,704 $11,598 $11,586
2/08 $12,054 $11,869 $11,524
2/09 $ 6,504 $ 6,148 $ 6,094
2/10 $ 9,615 $ 9,721 $ 9,403
2/11 $11,162 $11,815 $11,441
2/12 $10,971 $11,639 $11,247
2/13 $12,063 $12,720 $12,450
2/14 $14,957 $15,030 $15,150
2/15 $16,323 $16,166 $16,341
2/16 $14,420 $14,174 $14,544
Call 1-800-225-6292 or visit us.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.
The performance shown for Class K shares for the period prior to the
commencement of operations of Class K shares on December 31, 2014, is the net
asset value performance of the Fund's Class A shares, which has not been
restated to reflect any differences in expenses, including Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares generally are higher
than those of Class K shares, the performance of Class K shares prior to their
inception would have been higher than the performance shown. For the period
beginning December 31, 2014, the actual performance of Class K shares is
reflected. Class K 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 the contractual expense limitation currently in
effect through January 1, 2017, for Class K shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Equity Fund | Semiannual Report | 2/29/16
Performance Update | 2/29/16 Class R Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer Global Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index and the MSCI All Country World ND Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
MSCI
Net MSCI All
Asset World Country
Value ND World
Period (NAV) Index ND Index
--------------------------------------------------------------------------------
10 Years 3.66% 3.82% 3.55%
5 Years 5.13 4.92 3.71
1 Year -12.13 -11.00 -12.32
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.59% 1.59%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI AC World MSCI World
Equity Fund ND Index ND Index
2/06 $10,000 $10,000 $10,000
2/07 $11,704 $11,598 $11,586
2/08 $12,054 $11,869 $11,524
2/09 $ 6,504 $ 6,148 $ 6,094
2/10 $ 9,615 $ 9,721 $ 9,403
2/11 $11,162 $11,815 $11,441
2/12 $10,971 $11,639 $11,247
2/13 $12,063 $12,720 $12,450
2/14 $14,957 $15,030 $15,150
2/15 $16,311 $16,166 $16,341
2/16 $14,332 $14,174 $14,544
Call 1-800-225-6292 or visit us.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.
The performance shown for Class R shares for the period prior to the
commencement of operations of Class R shares on July 1, 2015, is the net asset
value performance of the Fund's Class A shares, which has not been restated to
reflect any differences in expenses, including Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares generally are higher than those of
Class R shares, the performance of Class R shares prior to their inception would
have been higher than the performance shown. For the period beginning July 1,
2015, the actual performance of Class R shares is reflected. Class R 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 Equity Fund | Semiannual Report | 2/29/16 13
Performance Update | 2/29/16 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Global Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index and the MSCI All Country World ND Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
MSCI
Net MSCI All
Asset World Country
Value ND World
Period (NAV) Index ND Index
--------------------------------------------------------------------------------
10 Years 4.03% 3.82% 3.55%
5 Years 5.62 4.92 3.71
1 Year -11.71 -11.00 -12.32
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.00% 0.80%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global MSCI AC World MSCI World
Equity Fund ND Index ND Index
2/06 $5,000,000 $5,000,000 $5,000,000
2/07 $5,852,001 $5,799,163 $5,792,902
2/08 $6,027,189 $5,934,426 $5,762,175
2/09 $3,252,059 $3,073,931 $3,047,054
2/10 $4,838,430 $4,860,405 $4,701,618
2/11 $5,647,384 $5,907,406 $5,720,665
2/12 $5,572,108 $5,819,582 $5,623,709
2/13 $6,160,755 $6,360,058 $6,225,082
2/14 $7,674,994 $7,515,056 $7,574,791
2/15 $8,407,581 $8,082,799 $8,170,729
2/16 $7,423,219 $7,087,155 $7,271,759
Call 1-800-225-6292 or visit us.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 shown for periods prior to the inception of the Fund's Class Y
shares on December 31, 2008, is 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 would have been higher than the performance
shown. For the period beginning December 31, 2008, the actual performance of
Class Y shares is reflected.
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 net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2017, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Equity Fund | Semiannual Report | 2/29/16
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 and
redemption fees.
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 Equity Fund
Based on actual returns from September 1, 2015, through February 29, 2016.
----------------------------------------------------------------------------------------------------------
Share Class A C K R Y
----------------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 9/1/15
----------------------------------------------------------------------------------------------------------
Ending Account $ 942.50 $ 939.50 $ 945.80 $ 942.90 $ 945.10
Value on 2/29/16
----------------------------------------------------------------------------------------------------------
Expenses Paid $ 6.28 $ 9.74 $ 3.87 $ 7.49 $ 3.87
During Period*
----------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.30%,
2.02%, 0.80%, 1.55% and 0.80% for Class A, Class C, Class K, Class R, and
Class Y shares, respectively, multiplied by the average account value over
the period, multiplied by 182/366 (to reflect the one-half year period).
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 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) or redemption fees 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 Equity Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2015, through February 29, 2016.
----------------------------------------------------------------------------------------------------------
Share Class A C K R Y
----------------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 9/1/15
----------------------------------------------------------------------------------------------------------
Ending Account $1,018.40 $1,014.82 $1,020.89 $1,017.16 $1,020.89
Value on 2/29/16
----------------------------------------------------------------------------------------------------------
Expenses Paid $ 6.52 $ 10.12 $ 4.02 $ 7.77 $ 4.02
During Period*
----------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.30%,
2.02%, 0.80%, 1.55% and 0.80% for Class A, Class C, Class K, Class R, and
Class Y shares, respectively, multiplied by the average account value over
the period, multiplied by 182/366 (to reflect the one-half year period).
16 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
Schedule of Investments | 2/29/16 (unaudited)
----------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------
COMMON STOCKS -- 98.0%
ENERGY -- 1.2%
Oil & Gas Exploration & Production -- 1.2%
98,761 Cabot Oil & Gas Corp. $ 1,988,059
-------------
Total Energy $ 1,988,059
----------------------------------------------------------------------------------------------
MATERIALS -- 0.5%
Commodity Chemicals -- 0.5%
10,702 LyondellBasell Industries NV $ 858,407
-------------
Total Materials $ 858,407
----------------------------------------------------------------------------------------------
CAPITAL GOODS -- 3.9%
Aerospace & Defense -- 0.6%
8,189 Raytheon Co. $ 1,014,208
----------------------------------------------------------------------------------------------
Heavy Electrical Equipment -- 2.7%
438,000 Mitsubishi Electric Corp. $ 4,411,859
----------------------------------------------------------------------------------------------
Industrial Machinery -- 0.6%
17,486 Ingersoll-Rand Plc $ 971,522
-------------
Total Capital Goods $ 6,397,589
----------------------------------------------------------------------------------------------
TRANSPORTATION -- 3.5%
Airlines -- 2.5%
43,289 American Airlines Group, Inc. $ 1,774,849
109,377 easyJet Plc 2,287,681
-------------
$ 4,062,530
----------------------------------------------------------------------------------------------
Trucking -- 1.0%
41,313 DSV A/S $ 1,685,308
-------------
Total Transportation $ 5,747,838
----------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 2.1%
Tires & Rubber -- 1.0%
47,000 Bridgestone Corp. $ 1,639,784
----------------------------------------------------------------------------------------------
Automobile Manufacturers -- 1.1%
26,217 Daimler AG $ 1,801,157
-------------
Total Automobiles & Components $ 3,440,941
----------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 4.4%
Consumer Electronics -- 1.2%
222,400 Panasonic Corp. $ 1,870,274
----------------------------------------------------------------------------------------------
Homebuilding -- 2.3%
29,613 PulteGroup, Inc. $ 509,047
299,400 Sekisui Chemical Co., Ltd. 3,302,942
-------------
$ 3,811,989
----------------------------------------------------------------------------------------------
Apparel, Accessories & Luxury Goods -- 0.9%
81,919 Burberry Group Plc $ 1,500,831
-------------
Total Consumer Durables & Apparel $ 7,183,094
----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 17
Schedule of Investments | 2/29/16 (unaudited) (continued)
----------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 2.5%
Hotels, Resorts & Cruise Lines -- 1.4%
59,125 InterContinental Hotels Group Plc $ 2,227,087
----------------------------------------------------------------------------------------------
Restaurants -- 1.1%
126,486 Domino's Pizza Group Plc $ 1,834,752
-------------
Total Consumer Services $ 4,061,839
----------------------------------------------------------------------------------------------
MEDIA -- 1.9%
Advertising -- 0.6%
17,787 Publicis Groupe SA $ 1,098,754
----------------------------------------------------------------------------------------------
Broadcasting -- 1.3%
43,628 CBS Corp. (Class B) $ 2,110,723
-------------
Total Media $ 3,209,477
----------------------------------------------------------------------------------------------
RETAILING -- 2.1%
Internet Retail -- 0.4%
55,692 Vipshop Holdings, Ltd. (A.D.R.)* $ 618,738
----------------------------------------------------------------------------------------------
Apparel Retail -- 1.7%
37,390 The TJX Companies, Inc. $ 2,770,599
-------------
Total Retailing $ 3,389,337
----------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 6.5%
Drug Retail -- 5.3%
53,013 CVS Health Corp. $ 5,151,273
52,700 Sundrug Co., Ltd. 3,468,785
-------------
$ 8,620,058
----------------------------------------------------------------------------------------------
Food Retail -- 1.2%
25,599 Walgreens Boots Alliance, Inc. $ 2,020,785
-------------
Total Food & Staples Retailing $ 10,640,843
----------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 2.9%
Soft Drinks -- 1.7%
294,628 Britvic Plc $ 2,834,371
----------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 1.2%
5,391 Keurig Green Mountain, Inc. $ 495,649
9,572 The Hershey Co. 869,999
1,008,500 WH Group, Ltd.* 586,062
-------------
$ 1,951,710
-------------
Total Food, Beverage & Tobacco $ 4,786,081
----------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.6%
Health Care Equipment -- 0.6%
10,773 Edwards Lifesciences Corp.* $ 937,251
----------------------------------------------------------------------------------------------
Health Care Distributors -- 3.4%
67,947 Cardinal Health, Inc. $ 5,551,270
----------------------------------------------------------------------------------------------
Managed Health Care -- 0.6%
5,216 Humana, Inc. $ 923,076
----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
----------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------
Health Care Technology -- 1.0%
69,745 NNIT A/S $ 1,728,751
-------------
Total Health Care Equipment & Services $ 9,140,348
----------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 15.4%
Biotechnology -- 2.2%
52,344 Baxalta, Inc. $ 2,016,291
18,867 Gilead Sciences, Inc.* 1,646,146
-------------
$ 3,662,437
----------------------------------------------------------------------------------------------
Pharmaceuticals -- 12.3%
9,131 Jazz Pharmaceuticals Plc* $ 1,110,147
45,066 Johnson & Johnson 4,741,394
24,227 Merck & Co., Inc. 1,216,438
53,346 Novartis AG 3,808,651
95,873 Pfizer, Inc. 2,844,552
17,276 Roche Holding AG 4,426,614
38,146 Shire Plc 1,991,085
-------------
$ 20,138,881
----------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.9%
10,762 Thermo Fisher Scientific, Inc. $ 1,390,343
-------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 25,191,661
----------------------------------------------------------------------------------------------
BANKS -- 8.5%
Diversified Banks -- 6.6%
340,802 Aldermore Group Plc $ 943,004
202,494 Grupo Financiero Banorte SAB de CV 1,023,190
67,955 JPMorgan Chase & Co. 3,825,866
582,700 Mitsubishi UFJ Financial Group, Inc. 2,496,495
89,800 Sumitomo Mitsui Financial Group, Inc. 2,502,818
-------------
$ 10,791,373
----------------------------------------------------------------------------------------------
Regional Banks -- 1.9%
38,836 The PNC Financial Services Group, Inc. $ 3,157,755
-------------
Total Banks $ 13,949,128
----------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.5%
Specialized Finance -- 2.7%
9,169 Intercontinental Exchange, Inc. $ 2,186,440
35,988 Nasdaq, Inc. 2,277,681
-------------
$ 4,464,121
----------------------------------------------------------------------------------------------
Consumer Finance -- 1.2%
41,123 Discover Financial Services, Inc. $ 1,908,930
----------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 1.6%
64,006 Morgan Stanley Co. $ 1,580,948
6,976 The Goldman Sachs Group, Inc. 1,043,121
-------------
$ 2,624,069
-------------
Total Diversified Financials $ 8,997,120
----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 19
Schedule of Investments | 2/29/16 (unaudited) (continued)
----------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------
INSURANCE -- 3.3%
Insurance Brokers -- 0.7%
10,593 Willis Towers Watson Plc $ 1,200,399
----------------------------------------------------------------------------------------------
Multi-line Insurance -- 2.6%
28,084 Allianz SE* $ 4,191,588
-------------
Total Insurance $ 5,391,987
----------------------------------------------------------------------------------------------
REAL ESTATE -- 1.3%
Diversified Real Estate Activities -- 1.3%
357,300 Leopalace21 Corp. $ 2,065,303
-------------
Total Real Estate $ 2,065,303
----------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 13.6%
Internet Software & Services -- 5.6%
5,295 Alphabet, Inc. (Class A) $ 3,797,680
5,421 Alphabet, Inc. (Class C) 3,782,611
69,317 eBay, Inc.* 1,649,745
-------------
$ 9,230,036
----------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 3.3%
72,329 PayPal Holdings, Inc. $ 2,758,628
35,721 Visa, Inc. 2,585,843
-------------
$ 5,344,471
----------------------------------------------------------------------------------------------
Systems Software -- 4.7%
152,103 Microsoft Corp. $ 7,739,001
-------------
Total Software & Services $ 22,313,508
----------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 6.0%
Communications Equipment -- 0.7%
22,127 Qualcomm, Inc. $ 1,123,830
----------------------------------------------------------------------------------------------
Computer Storage & Peripherals -- 4.1%
70,190 Apple, Inc. $ 6,786,671
----------------------------------------------------------------------------------------------
Technology Hardware, Storage & Peripherals -- 1.0%
69,373 NetApp, Inc. $ 1,723,225
----------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.2%
95,000 Global Display Co., Ltd. $ 264,24
-------------
Total Technology Hardware & Equipment $ 9,897,973
----------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 1.5%
Semiconductors -- 1.5%
50,515 SK Hynix, Inc. $ 1,219,868
276,000 Taiwan Semiconductor Manufacturing Co., Ltd. 1,239,760
-------------
$ 2,459,628
-------------
Total Semiconductors & Semiconductor Equipment $ 2,459,628
----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
----------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 5.8%
Integrated Telecommunication Services -- 5.8%
102,151 Euskaltel SA $ 1,116,060
83,300 Nippon Telegraph & Telephone Corp. 3,563,583
118,925 Orange SA 2,054,695
53,562 Verizon Communications, Inc. 2,717,200
-------------
$ 9,451,538
-------------
Total Telecommunication Services $ 9,451,538
----------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $162,617,607) $ 160,561,699
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
Principal Amount ($)
----------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 1.7%
IDR 16,648,000,000 Indonesia Treasury Bond, 8.375%, 3/15/24 $ 1,242,761
IDR 20,666,000,000 Indonesia Treasury Bond, 8.75%, 5/15/31 1,562,267
----------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $2,862,704) $ 2,805,028
----------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.7%
(Cost $165,480,311) (a) (b) $ 163,366,727
----------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.3% $ 459,798
----------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 163,826,525
==============================================================================================
* Non-income producing security.
(A.D.R.) American Depositary Receipts.
(a) At February 29, 2016, the net unrealized depreciation on
investments based on cost for federal income tax purposes of
$165,627,134 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 13,312,690
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (15,573,097)
------------
Net unrealized depreciation $ (2,260,407)
============
(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 55.5%
Japan 15.5%
United Kingdom 7.1%
Switzerland 5.0%
Germany 3.7%
Denmark 2.1%
Ireland 2.0%
France 1.9%
Indonesia 1.7%
Jersey Channel Islands 1.2%
Other (individually less than 1%) 4.3%
-----
100.0%
=====
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 21
Schedule of Investments | 2/29/16 (unaudited) (continued)
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 29, 2016, aggregated $64,426,453 and $53,392,828,
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.
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.) See Notes to Financial Statements -- Note 1A.
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of February 29, 2016, in
valuing the Fund's investments:
------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------------------
Common Stocks
Capital Goods
Heavy Electrical Equipment $ -- $ 4,411,859 $-- $ 4,411,859
Transportation
Airlines 1,774,849 2,287,681 -- 4,062,530
Trucking -- 1,685,308 -- 1,685,308
Automobiles & Components
Tires & Rubber -- 1,639,784 -- 1,639,784
Automobile Manufacturers -- 1,801,157 -- 1,801,157
Consumer Durables & Apparel
Consumer Electronics -- 1,870,274 -- 1,870,274
Homebuilding 509,047 3,302,942 -- 3,811,989
Apparel, Accessories &
Luxury Goods -- 1,500,831 -- 1,500,831
Consumer Services
Hotels, Resorts & Cruise Lines -- 2,227,087 -- 2,227,087
Restaurants -- 1,834,752 -- 1,834,752
Media
Advertising -- 1,098,754 -- 1,098,754
Food & Staples Retailing
Drug Retail 5,151,273 3,468,785 -- 8,620,058
Food, Beverage & Tobacco
Soft Drinks -- 2,834,371 -- 2,834,371
Packaged Foods & Meats 1,365,648 586,062 -- 1,951,710
Health Care Equipment & Services
Health Care Technology -- 1,728,751 -- 1,728,751
Pharmaceuticals, Biotechnology &
Life Sciences
Pharmaceuticals 9,912,531 10,226,350 -- 20,138,881
Banks
Diversified Banks 3,825,866 6,965,507 -- 10,791,373
Insurance
Multi-line Insurance -- 4,191,588 -- 4,191,588
Real Estate
Diversified Real Estate Activities -- 2,065,303 -- 2,065,303
Technology Hardware & Equipment
Electronic Manufacturing Services -- 264,247 -- 264,247
Semiconductors & Semiconductor
Equipment
Semiconductors -- 2,459,628 -- 2,459,628
Telecommunication Services
Integrated Telecommunication
Services 2,717,200 6,734,338 -- 9,451,538
All Other Common Stocks 70,119,926 -- -- 70,119,926
Foreign Government Bonds -- 2,805,028 -- 2,805,028
------------------------------------------------------------------------------------------------------
Total $ 95,376,340 $67,990,387 $-- $163,366,727
======================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
Other Financial Instruments
Unrealized appreciation on
futures contracts $11,498 $ -- $-- $11,498
--------------------------------------------------------------------------------------------
Total Other Financial Instruments $11,498 $ -- $-- $11,498
============================================================================================
During the six months ended February 29, 2016, there were no transfers between
Levels 1, 2 and 3.
The following is a summary of the fair valuation of certain Fund's assets and
liabilities as of February 29, 2016.
--------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------------
Assets:
Restricted cash $ -- $220,890 $ -- $220,890
Foreign currencies, at value -- 395,813 -- 395,813
Liabilities:
Variation margin for
futures contracts (45,210) -- -- (45,210)
--------------------------------------------------------------------------------------------------
Total $ (45,210) $616,703 $ -- $571,493
==================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 23
Statement of Assets and Liabilities | 2/29/16 (unaudited)
ASSETS:
Investment in securities (cost $165,480,311) $163,366,727
Cash
Foreign currencies, at value (cost $401,279) 395,813
Restricted cash* 220,890
Receivables --
Investment securities sold 1,751,262
Fund shares sold 174,853
Dividends and foreign taxes withheld of $25,998 716,268
Due from Pioneer Investment Management, Inc. 46,404
Unrealized appreciation on futures contracts 11,498
Other assets 45,339
--------------------------------------------------------------------------------------------------
Total assets $166,729,054
==================================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 458,631
Fund shares repurchased 512,988
Trustee fees 1,179
Due to custodian 1,667,810
Variation margin for futures contracts 45,210
Due to affiliates 77,258
Accrued expenses 139,453
--------------------------------------------------------------------------------------------------
Total liabilities $ 2,902,529
==================================================================================================
NET ASSETS:
Paid-in capital $187,187,121
Undistributed net investment income 190,606
Accumulated net realized loss on investments, futures contracts,
swap contracts and foreign currency transactions (21,418,101)
Net unrealized depreciation on investments (2,113,584)
Net unrealized appreciation on futures contracts 11,498
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (31,015)
--------------------------------------------------------------------------------------------------
Total net assets $163,826,525
==================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $71,063,359/5,832,759 shares) $ 12.18
Class C (based on $12,581,957/1,052,999 shares) $ 11.95
Class K (based on $49,366,000/4,050,869 shares) $ 12.19
Class R (based on $9,995,069/824,250 shares) $ 12.13
Class Y (based on $20,820,140/1,704,801 shares) $ 12.21
MAXIMUM OFFERING PRICE:
Class A ($12.18 (divided by) 94.25%) $ 12.92
==================================================================================================
* Represents restricted cash deposited at the custodian and/or counterparty
for derivative contracts.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
Statement of Operations (unaudited)
For the Six Months Ended 2/29/16
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $57,722) $ 1,530,243
Interest 10,333
------------------------------------------------------------------------------------------------------------
Total investment income $ 1,540,576
------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 639,587
Transfer agent fees
Class A 59,790
Class C 6,902
Class K 1,199
Class R 156
Class Y 659
Distribution fees
Class A 94,348
Class C 66,083
Class R 15,727
Shareholder communications expense 77,320
Administrative expense 41,434
Custodian fees 19,388
Registration fees 33,767
Professional fees 30,406
Printing expense 9,559
Fees and expenses of nonaffiliated Trustees 3,882
Miscellaneous 6,909
------------------------------------------------------------------------------------------------------------
Total expenses $ 1,107,116
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (131,556)
------------------------------------------------------------------------------------------------------------
Net expenses $ 975,560
------------------------------------------------------------------------------------------------------------
Net investment income $ 565,016
------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS,
WRITTEN OPTIONS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments (net of foreign capital gains taxes of $2,306) $ (4,998,446)
Futures contracts (67,151)
Written options 33,025
Other assets and liabilities denominated in foreign currencies (83,625) $ (5,116,197)
------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ (5,657,018)
Futures contracts 11,498
Other assets and liabilities denominated in foreign currencies (4,389) $ (5,649,909)
------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments, futures contracts,
written options and foreign currency transactions $(10,766,106)
------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(10,201,090)
============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 25
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------------------
Six Months
Ended
2/29/16 Year Ended
(unaudited) 8/31/15
------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 565,016 $ 1,304,453
Net realized gain (loss) on investments, futures contracts,
written options, and foreign currency transactions (5,116,197) 10,505,297
Change in net unrealized appreciation (depreciation)
on investments, futures contracts
and foreign currency transactions (5,649,909) (20,554,877)
------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting
from operations $ (10,201,090) $ (8,745,127)
------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.08 and $0.38 per share, respectively) $ (471,470) $ (2,165,744)
Class C ($0.00 and $0.30 per share, respectively) -- (252,529)
Class K ($0.15 and $0.00 per share, respectively) (589,987) --
Class R ($0.13 and $0.00 per share, respectively) (76,329) --
Class Y ($0.15 and $0.45 per share, respectively) (271,227) (2,272,661)
------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (1,409,013) $ (4,690,934)
------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS: (a)
Net proceeds from sale or exchange of shares $ 22,992,159 $121,389,969
Reinvestment of distributions 658,285 2,627,476
Cost of shares repurchased (19,305,026) (97,010,855)
------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund
share transactions $ 4,345,418 $ 27,006,590
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (7,264,685) $ 13,570,529
NET ASSETS:
Beginning of period $ 171,091,210 $157,520,681
------------------------------------------------------------------------------------------------------------
End of period $ 163,826,525 $171,091,210
------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 190,606 $ 1,034,603
------------------------------------------------------------------------------------------------------------
(a) At February 29, 2016, Pioneer Asset Allocation Trust owned 30.1% of the
value of outstanding shares of Pioneer Global Equity Fund.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
----------------------------------------------------------------------------------------------------------
Six Months Six Months
Ended Ended
2/29/16 2/29/16 Year Ended Year Ended
Shares Amount 8/31/15 8/31/15
(unaudited) (unaudited) Shares Amount
----------------------------------------------------------------------------------------------------------
Class A
Shares sold 592,963 $ 7,753,566 1,540,016 $ 21,741,127
Reinvestment of distributions 33,908 449,960 152,847 2,090,959
Less shares repurchased (726,285) (9,182,294) (1,217,019) (17,064,588)
----------------------------------------------------------------------------------------------------------
Net increase (decrease) (99,414) $ (978,768) 475,844 $ 6,767,498
==========================================================================================================
Class B*
Shares sold or exchanged -- $ -- -- $ --
Reinvestment of distributions -- -- -- --
Less shares repurchased -- -- (149,799) (2,044,742)
----------------------------------------------------------------------------------------------------------
Net decrease -- $ -- (149,799) $ (2,044,742)
==========================================================================================================
Class C
Shares sold 158,863 $ 2,012,705 625,499 $ 8,578,097
Reinvestment of distributions -- -- 17,966 241,637
Less shares repurchased (170,958) (2,129,500) (189,906) (2,624,849)
----------------------------------------------------------------------------------------------------------
Net increase (decrease) (12,095) $ (116,795) 453,559 $ 6,194,885
==========================================================================================================
Class K**
Shares sold -- $ -- 4,271,583 $ 57,908,556
Reinvestment of distributions -- -- -- --
Less shares repurchased (115,193) (1,439,895) (105,521) (1,492,962)
----------------------------------------------------------------------------------------------------------
Net increase (decrease) (115,193) $ (1,439,895) 4,166,062 $ 56,415,594
==========================================================================================================
Class R***
Shares sold 694,287 $ 8,883,218 181,756 $ 2,526,092
Reinvestment of distributions -- -- -- --
Less shares repurchased (47,361) (594,628) (4,432) (62,198)
----------------------------------------------------------------------------------------------------------
Net increase 646,926 $ 8,288,590 177,324 $ 2,463,894
==========================================================================================================
Class Y
Shares sold 333,414 $ 4,342,670 2,156,949 $ 30,636,097
Reinvestment of distributions 15,675 208,325 21,508 294,880
Less shares repurchased (467,391) (5,958,709) (5,339,157) (73,721,516)
----------------------------------------------------------------------------------------------------------
Net decrease (118,302) $ (1,407,714) (3,160,700) $ (42,790,539)
==========================================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
** Class K shares commenced operations on December 31, 2014.
*** Class R shares commenced operations on July 1, 2015.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 27
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/29/16 Ended Ended Ended Ended Ended
(unaudited) 8/31/15 8/31/14 8/31/13 8/31/12 8/31/11
--------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 13.00 $ 14.05 $ 11.31 $ 9.64 $ 9.27 $ 8.44
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.03(a) $ 0.07 $ 0.27 $ 0.15 $ 0.17 $ 0.13
Net realized and unrealized gain (loss) on investments (0.77) (0.74) 2.67 1.68 0.33 0.76
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.74) $ (0.67) $ 2.94 $ 1.83 $ 0.50 $ 0.89
--------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.08) $ (0.38) $ (0.20) $ (0.16) $ (0.13) $ (0.06)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.82) $ (1.05) $ 2.74 $ 1.67 $ 0.37 $ 0.83
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.18 $ 13.00 $ 14.05 $ 11.31 $ 9.64 $ 9.27
================================================================================================================================
Total return* (5.75)% (4.88)% 26.13% 19.17% 5.50% 10.48%
Ratio of net expenses to average net assets 1.30%** 1.30% 1.30% 1.30% 1.30% 1.30%
Ratio of net investment income (loss) to average net assets 0.50%** 0.60% 2.01% 1.35% 1.71% 1.23%
Portfolio turnover rate 64%** 109% 121% 160% 152% 194%
Net assets, end of period (in thousands) $71,063 $77,115 $76,638 $62,996 $56,970 $60,701
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.45%** 1.50% 1.56% 1.67% 1.72% 1.67%
Net investment income (loss) to average net assets 0.35%** 0.40% 1.75% 0.98% 1.29% 0.86%
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/29/16 Ended Ended Ended Ended Ended
(unaudited) 8/31/15 8/31/14 8/31/13 8/31/12 8/31/11
----------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 12.72 $ 13.78 $ 11.11 $ 9.47 $ 9.09 $ 8.31
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01)(a)(b) $ (0.08)(a) $ 0.14 $ 0.05 $ 0.10 $ 0.04
Net realized and unrealized gain (loss) on investments (0.76) (0.68) 2.63 1.66 0.31 0.74
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.77) $ (0.76) $ 2.77 $ 1.71 $ 0.41 $ 0.78
----------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ -- $ (0.30) $ (0.10) $ (0.07) $ (0.03) $ --
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.77) $ (1.06) $ 2.67 $ 1.64 $ 0.38 $ 0.78
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.95 $ 12.72 $ 13.78 $ 11.11 $ 9.47 $ 9.09
==================================================================================================================================
Total return* (6.05)% (5.60)% 24.98% 18.11% 4.56% 9.39%
Ratio of net expenses to average net assets 2.02%** 2.05% 2.20% 2.20% 2.20% 2.20%
Ratio of net investment income (loss) to average net assets (0.22)%** (0.14)% 1.13% 0.45% 0.82% 0.35%
Portfolio turnover rate 64%** 109% 121% 160% 152% 194%
Net assets, end of period (in thousands) $ 12,582 $13,552 $ 8,427 $ 6,516 $ 5,682 $ 6,439
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 2.14%** 2.21% 2.35% 2.51% 2.53% 2.48%
Net investment income (loss) to average net assets (0.34)%** (0.30)% 0.98% 0.14% 0.49% 0.07%
==================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) The amount shown for a share outstanding does not correspond with net
investment income on the Statement of Operations for the period due to
timing of the sales and repurchase of shares.
(b) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 29
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------
Six Months
Ended 12/31/14
2/29/16 to
(unaudited) 8/31/15
------------------------------------------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 13.03 $ 13.51
------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.06(a) $ 0.11
Net realized and unrealized gain (loss) on investments (0.75) (0.59)
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.69) $ (0.48)
------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.15) $ --
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.84) $ (0.48)
------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.19 $ 13.03
==================================================================================================================
Total return* (5.42)% (3.55)%***
Ratio of net expenses to average net assets 0.80%** 0.79%**
Ratio of net investment income (loss) to average net assets 1.00%** 1.44%**
Portfolio turnover rate 64%** 109%
Net assets, end of period (in thousands) $49,366 $ 54,305
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 0.92%** 0.95%**
Net investment income (loss) 0.88%** 1.28%**
==================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
*** Not annualized.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
------------------------------------------------------------------------------------------------------------------
Six Months
Ended 7/1/15
2/29/16 to
(unaudited) 8/31/15
------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 12.99 $ 14.08
------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.03(a) $ 0.00(b)
Net realized and unrealized gain (loss) on investments (0.76) (1.09)
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.73) $ (1.09)
------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.13) $ --
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.86) $ (1.09)
------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.13 $ 12.99
==================================================================================================================
Total return* (5.71)% (7.74)%***
Ratio of net expenses to average net assets 1.55%** 1.38%**
Ratio of net investment income (loss) to average net assets 0.42%** 0.25%**
Portfolio turnover rate 64%** 109%
Net assets, end of period (in thousands) $ 9,995 $ 2,304
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.68%** 1.55%**
Net investment income (loss) to average net assets 0.30%** 0.08%**
==================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
*** Not annualized.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Amount rounds to less than $0.01 or ($0.01) per share.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 31
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/29/16 Ended Ended Ended Ended Ended
(unaudited) 8/31/15 8/31/14 8/31/13 8/31/12 8/31/11
----------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 13.06 $ 14.12 $ 11.37 $ 9.69 $ 9.32 $ 8.49
----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.06(a) $ 0.01 $ 0.37 $ 0.20 $ 0.21 $ 0.18
Net realized and unrealized gain (loss) on investments (0.76) (0.62) 2.63 1.69 0.34 0.76
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.70) $ (0.61) $ 3.00 $ 1.89 $ 0.55 $ 0.94
----------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.15) $ (0.45) $ (0.25) $ (0.21) $ (0.18) $ (0.11)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.85) $ (1.06) $ 2.75 $ 1.68 $ 0.37 $ 0.83
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.21 $ 13.06 $ 14.12 $ 11.37 $ 9.69 $ 9.32
============================================================================================================================
Total return* (5.49)% (4.48)% 26.66% 19.75% 6.09% 10.96%
Ratio of net expenses to average net assets 0.80%** 0.80% 0.80% 0.80% 0.80% 0.80%
Ratio of net investment income (loss) to average net assets 0.99%** 0.85% 2.58% 1.85% 2.22% 1.74%
Portfolio turnover rate 64%** 109% 121% 160% 152% 194%
Net assets, end of period (in thousands) $20,820 $23,815 $70,384 $71,726 $60,214 $59,927
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.06%** 0.96% 0.95% 1.00% 0.97% 0.95%
Net investment income (loss) to average net assets 0.73%** 0.69% 2.43% 1.65% 2.05% 1.59%
============================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
Notes to Financial Statements | 2/29/16 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Global Equity Fund (the Fund), is one of five portfolios comprising
Pioneer Series Trust V, 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 commenced operations on December 15, 2005. The
Fund's investment objective is to seek long-term capital growth.
The Fund offers five classes of shares designated as Class A, Class C, Class K,
Class R and Class Y shares. Class K shares commenced operations on December 31,
2014. Class R shares commenced operations on July 1, 2015. Class B shares were
converted to Class A shares as of the close of business on November 10, 2014.
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 of Trustees 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.
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:
A. Security Valuation
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.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 33
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
The principal exchanges and markets for non-U.S. equity 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 fund uses a fair
value model developed by an independent pricing service to value non-U.S.
equity securities. On a daily basis, the pricing service recommends
changes, based on a proprietary model, to the closing market prices of each
non-U.S. security held by the fund to reflect the security's fair value at
the time the fund determines its net asset value. The fund applies these
recommendations in accordance with procedures approved by the Board of
Trustees.
Futures contracts are generally valued at the closing settlement price
established by the exchange on which they are traded.
Options contracts are generally valued at the mean between the last bid and
ask prices on the principal exchange where they are traded.
Over-the-counter ("OTC") options and options on swaps ("swaptions") are
valued using prices supplied by independent pricing services, which
consider such factors as market prices, market events, quotations from one
or more brokers, Treasury spreads, yields, maturities and ratings, or may
use a pricing matrix or other fair value methods or techniques to provide
an estimated value of the security or instrument.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices, and
such differences could be material.
34 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
At February 29, 2016, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services, broker-dealers or using a third party insurance industry pricing
model).
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. 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.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. 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 provision for federal income taxes is required.
As of August 31, 2015, the Fund did not accrue any interest or penalties
with respect to uncertain tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years are subject to examination by
Federal and State tax authorities.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain countries.
In determining the daily net asset value, the Fund estimates the reserve
for such taxes, if any, associated with investments in certain countries.
The estimated reserve for the capital gains is based on the net unrealized
appreciation on certain portfolio securities, the holding period of such
securities and the related tax rates, tax loss carryforward (if applicable)
and other such factors.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 35
financial statement and tax purposes. Capital accounts within the financial
statements are adjusted for permanent book/tax differences to reflect tax
character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
during the years ended August 31, 2015, was as follows:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $4,690,934
---------------------------------------------------------------------------
Total $4,690,934
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,034,603
Capital loss carryforward (16,155,081)
Net unrealized appreciation 3,369,985
---------------------------------------------------------------------------
Total $(11,750,493)
===========================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales.
D. 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 $5,511 in underwriting commissions on the sale of Class
A shares during the six months ended February 29, 2016.
E. 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 the market price of those
securities, but are included with the net realized and unrealized gain or
loss on investments.
36 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
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 C and Class R shares of the Fund,
respectively (see Note 4). Class K and Class Y shares do not pay
distribution fees. All expenses and fees paid to the Fund's transfer agent
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).
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, Class K, Class R and Class
Y shares can reflect different transfer agent and distribution expense
rates.
G. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
H. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency rates or
to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund 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. The amount of cash deposited with the broker as collateral at
February 29, 2016, was $233,000 and is recorded within "Restricted cash" in
the Statement of Assets and Liabilities. 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 appreciation or depreciation. 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
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 37
as well as any fluctuation in foreign currency exchange rates where
applicable. The use of futures contracts involves, to varying degrees,
elements of market, interest rate, currency exchange rate 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
value of contracts open during the six months ended February 29, 2016, was
$536,078.
At February 29, 2016, open futures contracts were as follows:
-----------------------------------------------------------------------------------------
Number of
Contracts Settlement Unrealized
Description Counterparty Long/(Short) Month/Year Value Appreciation
-----------------------------------------------------------------------------------------
EURO STOXX 50 Citibank N.A. 21 3/16 $ 670,976 $ 10,405
Japanese Yen Citibank N.A. (45) 3/16 (4,987,687) 1,093
Currency
-----------------------------------------------------------------------------------------
$(4,316,711) $ 11,498
=========================================================================================
I. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price,
upon the exercise of the option. 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 value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the
underlying security in determining whether the Fund has realized a gain or
loss. The Fund as writer of an option bears the market risk of an
unfavorable change in the price of the security underlying the written
option.
The average value of written option contracts open during the six months
ended February 29, 2016, was $(2,058). There were no written options
outstanding at February 29, 2016.
38 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
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 equal to
0.75% of the Fund's average daily net assets up to $500 million, 0.70% of the
next $500 million of the Fund's average daily net assets and 0.65% of the Fund's
average daily net assets over $1 billion. For the six months ended February 29,
2016, the effective management fee (excluding waivers and/or assumption of
expenses) was equivalent to 0.64% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses (ordinary
operating expenses means all fund expenses other than extraordinary expenses,
such as litigation, taxes, brokerage commissions and acquired fund fees and
expenses) of the Fund to the extent required to reduce Fund expenses to 1.30%,
2.20%, 0.80%, 1.55% and 0.80% of the average daily net assets attributable to
Class A, Class C, Class K, Class R and Class Y shares, respectively. Fees waived
and expenses reimbursed during the six months ended February 29, 2016, are
reflected on the Statement of Operations. These expense limitations are in
effect through January 1, 2017. 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
$35,124 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 29, 2019.
3. Transfer Agent
Prior to November 2, 2015, Pioneer Investment Management Shareholder Services,
Inc. (PIMSS), a wholly owned indirect subsidiary of UniCredit, provided
substantially all transfer agent and shareowner services to the Fund at
negotiated rates.
Effective November 2, 2015, Boston Financial Data Services serves as the
transfer agent to the Fund at negotiated rates.
In addition, the Fund reimburses the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings, outgoing phone calls and omnibus
relationship contracts.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 39
For the six months ended February 29, 2016, such out-of-pocket expenses by class
of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $45,862
Class C 7,749
Class K 20
Class R 7,349
Class Y 16,340
--------------------------------------------------------------------------------
Total: $77,320
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $38,206 in transfer agent fees and out-of-pocket reimbursements
payable to the transfer agent at February 29, 2016.
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, Class C and Class R
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 services with regard to Class C shares. Pursuant to the Plan, the
Fund further pays PFD 0.50% of the average daily net assets attributable to
Class R shares held by such plans. Included in "Due to affiliates" reflected on
the Statement of Assets and Liabilities is $3,928 in distribution fees payable
to PFD at February 29, 2016.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Fund a
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares held by such plans.
In addition, redemptions of each class of shares (except Class R or 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 12 months of purchase. Redemptions of Class C shares
within 12 months 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
40 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
purchase of those shares. There is no CDSC for Class R or Class Y shares.
Proceeds from the CDSCs are paid to PFD. For the six months ended February 29,
2016, CDSCs in the amount of $761 were paid to PFD.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a 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. The
credit facility in effect until June 9, 2015, was in the amount of $215 million.
For the period from June 9, 2015, to February 9, 2016, the facility was in the
amount of $240 million. Effective February 10, 2016, the facility is in the
amount of $220 million. Under such facility, depending on the type of loan,
interest on borrowings is payable at the London Interbank Offered Rate (LIBOR)
plus 0.85% on an annualized basis, or the Alternate Base Rate, which is the
greater of (a) the facility's administrative agent's daily announced prime rate
on the borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing date
and (c) 2% plus the overnight Eurodollar rate on the borrowing date. The Funds
pay an annual commitment fee to participate in a credit 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 February 29, 2016, the
Fund had no borrowings under the credit facility.
6. Additional Disclosures about Derivative Instruments and Hedging Activities
The Fund's use of derivatives subjects it to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 41
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at February 29,
2016 was as follows:
-----------------------------------------------------------------------------------
Foreign
Statement of Assets Interest Credit Exchange Equity Commodity
and Liabilities Rate Risk Risk Risk Risk Risk
-----------------------------------------------------------------------------------
Assets
Unrealized
appreciation on
futures contracts $-- $-- $1,093 $10,405 $--
-----------------------------------------------------------------------------------
Total Value $-- $-- $1,093 $10,405 $--
===================================================================================
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at February 29, 2016, was as follows:
-----------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Operations Rate Risk Risk Rate Risk Risk Risk
-----------------------------------------------------------------------------------
Net realized gain
(loss) on:
Futures contracts $-- $-- $161,778 $(228,929) $--
Written options -- -- -- 33,025 --
-----------------------------------------------------------------------------------
Total Value $-- $-- $161,778 $ 195,904 $--
===================================================================================
Change in net
unrealized
appreciation
(depreciation) on:
Futures contracts $-- $-- $ 1,093 $ 10,405 $--
-----------------------------------------------------------------------------------
Total Value $-- $-- $ 1,093 $ 10,405 $--
===================================================================================
42 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
Additional Information (unaudited)
PIM, the Fund's investment adviser, is currently an indirect, wholly owned
subsidiary of UniCredit. On November 11, 2015, UniCredit announced that it
signed a binding master agreement with Banco Santander and affiliates of Warburg
Pincus and General Atlantic (the "Private Equity Firms") with respect to Pioneer
Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as previously announced by UniCredit, will establish a holding
company, with the name Pioneer Investments, to be owned by UniCredit (50%) and
the Private Equity Firms (50% between them). The holding company will control
Pioneer's U.S. operations, including the Adviser. The holding company also will
own 66.7% of Pioneer's and SAM's combined operations outside the U.S., while
Banco Santander will own directly the remaining 33.3% stake. The closing of the
Transaction is expected to happen in 2016, subject to certain regulatory and
other approvals.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's current investment advisory agreement with PIM to terminate.
Accordingly, the Fund's Board of Trustees will be asked to approve a new
investment advisory agreement. If approved by the Board, the Fund's new
investment advisory agreement will be submitted to the shareholders of the Fund
for their approval.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 43
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Global Equity Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in January 2015 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2015 and July
2015. Supplemental contract review materials were provided to the Trustees in
September 2015. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year, and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings, in connection with the review of the Fund's
investment advisory agreement.
In March 2015, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In July 2015,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2015.
At a meeting held on September 15, 2015, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees considered various
factors that they determined were relevant, including the factors described
below. The Trustees did not identify any single factor as the controlling factor
in determining to approve the renewal of the agreement.
44 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed PIM's investment approach
for the Fund and its research process. The Trustees considered the resources of
PIM and the personnel of PIM who provide investment management services to the
Fund. They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. The Trustees considered the non-investment resources and
personnel of PIM involved in PIM's services to the Fund, including PIM's
compliance and legal resources and personnel. The Trustees noted the substantial
attention and high priority given by PIM's senior management to the Pioneer fund
complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the advisory
agreement.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 45
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the second quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoints in the management fee schedule and the
reduced fee rates above certain asset levels. The Trustees considered that the
expense ratio of the Fund's Class A shares for the most recent fiscal year was
in the third quintile relative to its Morningstar peer group and in the first
quintile relative to its Strategic Insight peer group, in each case for the
comparable period. The Trustees noted that PIM was waiving fees and/or
reimbursing expenses in order to limit the ordinary operating expenses of the
Fund. The Trustees considered the impact of transfer agency, sub-transfer
agency, and other non-management fee expenses on the expense ratios of the Fund.
The Trustees noted that they separately review the Fund's transfer agency,
sub-transfer agency and intermediary arrangements.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Fund's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Fund is subject. The Trustees
also considered the different entrepreneurial risks associated with PIM's
management of the Fund and Pioneer's management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
46 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoints in the management fee schedule. The Trustees recognize
that economies of scale are difficult to identify and quantify, and that, among
other factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Fund. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons including reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 47
relationship with the Funds were reasonable and their consideration of the
advisory agreement between the Fund and PIM and the fees thereunder were
unaffected by Pioneer's possible receipt of any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
48 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data 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 us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Ms. Monchak is a non-voting Advisory Trustee.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 49
This page for your notes.
50 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
This page for your notes.
Pioneer Global Equity Fund | Semiannual Report | 2/29/16 51
This page for your notes.
52 Pioneer Global Equity Fund | Semiannual Report | 2/29/16
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:
--------------------------------------------------------------------------------
Pioneer Funds
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: us.pioneerinvestments.com
This report must be preceded or 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.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2016 Pioneer Investments 19129-10-0416
Pioneer High Income
Municipal Fund
--------------------------------------------------------------------------------
Semiannual Report | February 29, 2016
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PIMAX
Class C HICMX
Class Y HIMYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 26
Notes to Financial Statements 33
Approval of Investment Advisory Agreement 41
Trustees, Officers and Service Providers 46
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 1
President's Letter
Dear Shareowner,
Over the past several years, many investors experienced positive returns across
most major asset classes. However, 2015 was a tale of two markets, with
favorable market conditions in the first half of the year, followed by an abrupt
slowdown and increased volatility beginning in August. The global markets were
challenged by significant economic cross-currents in different geographic
regions and industrial sectors. While the U.S. economy gradually improved,
growth slowed in China. Emerging markets struggled following a decline in
commodity prices, especially oil. While lower energy prices are good for the
consumer, there were ripple effects throughout the global economy.
Against this backdrop, the Standard & Poor's 500 Index rose by just 1.4% in
2015, international equity markets were essentially flat, and emerging market
equities fell sharply. Across U.S. fixed-income sectors, U.S. government and
investment-grade corporate bonds were fairly flat for the year, while high-yield
bonds, as measured by the Bank of America Merrill Lynch Master II High Yield
Index, posted a -4.9% total return.
Entering 2016, we see the U.S. economy growing modestly, against an overall
global economic backdrop that remains fragile and points towards structurally
lower growth. As always in a presidential election year, political rhetoric has
the potential to impact U.S. sectors such as health care in 2016. Economies
around the world in both developed and emerging markets are experiencing deep
structural change. Geopolitical instability on many fronts, the rising risk of
policy mistakes, and market liquidity issues all increase the possibility of
sharp swings in asset values. In this environment, financial markets remain
vulnerable to unusual levels of volatility. While divergences among regions and
industries is an important theme, we are generally optimistic about the outlook
for the U.S. economy, which we expect will see continued, positive growth led by
a strengthened consumer.
Throughout Pioneer's history, we have believed in the importance of active
management. In periods of market volatility, we believe that the value of active
management is even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using proprietary research,
careful risk management, and a long-term perspective. Our ongoing goal is to
produce compelling returns consistent with the stated objectives of our
investment products, and with our shareowners' expectations. We believe our
shareowners can benefit from the experience and tenure of our investment teams
as well as the insights generated from our extensive research process.
2 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
February 29, 2016
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. 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 High Income Municipal Fund | Semiannual Report | 2/29/16 3
Portfolio Management Discussion | 2/29/16
High-yield municipal bond prices appreciated in value over the six-month period
ended February 29, 2016, as investor demand remained strong while supply was
limited. In the following interview, Jonathan Chirunga and David Eurkus discuss
the factors that influenced the performance of Pioneer High Income Municipal
Fund during the six-month period. Mr. Chirunga, a vice president and a portfolio
manager at Pioneer, manages the Fund along with Mr. Eurkus, Director of
Municipals, a senior vice president and a portfolio manager at Pioneer.
Q How did the Fund perform during the six-month period ended February 29,
2016?
A Pioneer High Income Municipal Fund's Class A shares returned 4.90% during
the six-month period ended February 29, 2016, while the Fund's benchmark,
the Barclays High Yield Municipal Bond Index (the Barclays Index), returned
5.68%. During the same period, the average return of the 155 mutual funds
in Lipper's High-Yield Municipal Debt Funds category was 4.25%, and the
average return of the 205 mutual funds in Morningstar's High-Yield
Municipal Funds category was 4.24%.
Q How would you describe the investment environment for high-yield municipal
bonds during the six-month period ended February 29, 2016?
A Demand for high-yield municipal bonds remained vigorous throughout the
six-month period, and the asset class delivered a positive total return,
even as most other high-yield segments of the fixed-income market posted
negative results. In an environment where yields available on fixed-income
investments remained low, the attractive current income and tax advantages
of the high-yield municipal bond group proved compelling for many
investors. Moreover, new issuance of high-yield municipals continued to be
weak during a period when domestic economic growth remained modest (the
annualized growth rate of U.S. gross domestic product, or GDP, in the final
quarter of 2015 came in at less than 2%). In addition, new projects funded
by municipal bond issuances were limited, as many state and local
governments pursued policies of fiscal austerity and spending restraint.
That was especially the case in states highly dependent on revenues from
oil production such as Texas, Louisiana, Oklahoma, and Alaska, as oil
prices continued their downward spiral during the six-month period.
In that environment, high-yield municipal bond prices generally rose
(leading to reductions in their effective yields) and the asset class
outperformed the broader fixed-income market during the period. For
example, despite headline news chronicling the fiscal problems of issuers
such as the Commonwealth of Puerto Rico and the City of Chicago, even their
new bonds generated strong demand from yield-seeking investors.
4 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
Q What were the main reasons for the Fund's underperformance of the benchmark
Barclays Index during the six-month period ended February 29, 2016?
A While the Fund performed well in an absolute sense over the six-month
period, its performance trailed that of the benchmark because we generally
avoided owning bonds with weaker fundamentals that were of lower quality
than the securities held in the portfolio. The Fund had very small
exposures, for example, to the aforementioned debt of Puerto Rico and the
City of Chicago. While Commonwealth of Puerto Rico issues represented 23%
of the Barclays Index as of the end of the six-month period, the
portfolio's exposure was merely slightly above 2% of invested assets. The
Fund also had no exposure to securities issued by the City of Chicago, the
Chicago Board of Education, or the State of Illinois, each of which had 2%
weightings in the Barclays Index. However, as we noted earlier, even Puerto
Rican and Chicago-related bonds performed well during the period, as
technical supply/demand influences on the high-yield municipal market
overcame investment fundamentals, even on troubled credits, and the Fund's
underweights to those securities detracted from relative returns.
Although the Fund underperformed the Barclays Index over the six-month
period, we intend to maintain our commitment to invest the portfolio in
fundamentally sound high-yield municipal debt securities that we believe
should have solid long-term value.
As for positioning during the six-month period, we stayed true to our
traditional emphasis on holding project revenue bonds in the portfolio. We
continued to favor revenue bonds over general obligation (G.O.) bonds
because of their more predictable revenue sources and the cash flows that
support payments by the bonds' issuers. As of February 29, 2016, the Fund's
largest exposures by sector were to special revenue bonds, including
tobacco bonds (29%), health/health care bonds (26%), and education bonds
(19%). The Fund had just a small position in G.O. bonds, at roughly 4% of
assets, as we generally avoid G.O. bonds due to their less predictable
revenue sources.
Q Which portfolio allocations or individual investments had the biggest
effects on the Fund's performance, either positively or negatively, during
the six-month period ended February 29, 2016?
A The portfolio's relatively large position in special revenue bonds backed
by proceeds from tobacco liability settlements (tobacco bonds) had a
positive effect on the Fund's performance during the six-month period.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 5
Among individual credits in the portfolio, holdings that supported the
Fund's relative performance included the debt backed by the Esperanza
Academy, a charter school in Philadelphia; a correctional facility in Otero
County, New Mexico; continuing care retirement communities in the states of
Washington and Illinois; and tobacco bonds issued by the states of Virginia
and Michigan.
Individual investments that underperformed and held back the Fund's
relative results included securities backed by a wood pellet factory in
Sanger, Texas, and a State of Michigan Strategic Lease revenue bond.
Q Did the Fund invest in any derivative securities during the six-month
period ended February 29, 2016?
A No, the Fund did not have any exposure to derivatives during the period.
Q What factors affected the Fund's yield during the six-month period ended
February 29, 2016?
A In an environment of rising prices and declining yields in the high-yield
municipal market, the Fund's yield to shareholders did decline slightly
during the period, as we did not "stretch" for the higher yields available
on lower-quality bonds with weaker fundamentals.
Q What is your investment outlook?
A We think the overall environment for investing in high-yield municipal
bonds is unlikely to change very much in the immediate future, as
consistent demand and shrinking supply continue to support bond prices,
even as yields available shrink to some degree. We believe the domestic
economy should continue to expand at a steady, but modest pace in 2016,
with GDP growing perhaps falling within a range of 2.0% to 2.5%. With only
moderate overall growth, and pockets of weakness in energy-producing
states, we think state and local governments will continue to try to limit
any spending increases and restrict new municipal bond issuance. However,
improving employment figures and decent activity in the housing sector
should help sustain the overall growth in the domestic economy, despite
evidence of weakness in foreign markets.
In this environment, we expect to continue to keep the Fund's portfolio
well diversified*, remaining focused on owning project revenue bonds and
emphasizing what we believe are fundamentally sound investments with solid
longer-term prospects.
* Diversification does not assure a profit nor protect against loss.
6 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
Please refer to the Schedule of Investments on pages 15-25 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Investments in high-yield or lower-rated securities are subject to
greater-than-average price volatility, illiquidity and possibility of default.
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.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. 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.
The value of municipal securities can be adversely affected by changes in
financial condition of municipal issuers, lower revenues, and regulatory and
political developments.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
A portion of income may be subject to local, state, federal, and/or alternative
minimum tax. Capital gains, if any, are subject to a capital gains tax.
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.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
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 opinion as of the date of this report. Past performance is not a
guarantee of future results.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 7
Portfolio Summary | 2/29/16
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Special Revenues 29.2%
Health 26.4%
Education 19.0%
Various Revenues 8.1%
Pollution Control Revenue 6.8%
General Obligation 4.3%
Reserves 2.6%
Transportation 2.2%
Housing 0.6%
Escrowed 0.5%
Insured 0.3%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)*
1. Sanger Industrial Development Corp., Texas Pellets Project Series B, 8.0%, 7/1/38 3.04%
----------------------------------------------------------------------------------------------
2. City of Philippi West Virginia, 7.75%, 10/1/44 2.73
----------------------------------------------------------------------------------------------
3. Commonwealth of Puerto Rico, 8.0%, 7/1/35 2.37
----------------------------------------------------------------------------------------------
4. Washington State Housing Finance Commission, Skyline at First Hill Project
Series A, 5.625%, 1/1/38 2.18
----------------------------------------------------------------------------------------------
5. Golden State Tobacco Securitization Corp., 5.75%, 6/1/47 1.93
----------------------------------------------------------------------------------------------
6. Michigan Tobacco Settlement Finance Authority, 6.0%, 6/1/48 1.87
----------------------------------------------------------------------------------------------
7. Tobacco Settlement Financing Corp. Virginia, 5.0%, 6/1/47 1.86
----------------------------------------------------------------------------------------------
8. U.S. Treasury Bills, 3/17/16 1.82
----------------------------------------------------------------------------------------------
9. Pennsylvania Economic Development Financing Authority, US Airways Group
Series B, 8.0%, 5/1/29 1.81
----------------------------------------------------------------------------------------------
10. Buckeye Tobacco Settlement Financing Authority, 5.875%, 6/1/47 1.53
----------------------------------------------------------------------------------------------
* This list excludes temporary cash investments 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 High Income Municipal Fund | Semiannual Report | 2/29/16
Prices and Distributions | 2/29/16
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/29/16 8/31/15
--------------------------------------------------------------------------------
A $7.37 $7.22
--------------------------------------------------------------------------------
C $7.38 $7.22
--------------------------------------------------------------------------------
Y $7.28 $7.12
--------------------------------------------------------------------------------
Distributions per Share: 9/1/15-2/29/16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2000 $ -- $ --
--------------------------------------------------------------------------------
C $0.1721 $ -- $ --
--------------------------------------------------------------------------------
Y $0.2040 $ -- $ --
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Barclays High Yield Municipal Bond Index is an unmanaged measure of the
performance of the high-yield municipal bond market. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. It is not possible to invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts shown on pages 10-12.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 9
Performance Update | 2/29/16 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer High Income Municipal Fund at
public offering price during the periods shown, compared to that of the Barclays
High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
Barclays
Net Public High Yield
Asset Offering Municipal
Value Price Bond
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life of Class
(10/17/06) 3.05% 2.55% 4.33%
5 Years 6.07 5.09 7.51
1 Year 4.79 0.08 2.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.89%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays High Yield
Municipal Fund Municipal Bond Index
10/06 $ 9,550 $10,000
2/07 $ 9,909 $10,270
2/08 $ 8,948 $ 9,569
2/09 $ 6,836 $ 7,805
2/10 $ 9,095 $ 9,878
2/11 $ 9,397 $10,337
2/12 $ 9,947 $11,800
2/13 $11,716 $13,498
2/14 $10,896 $13,282
2/15 $12,043 $14,541
2/16 $12,620 $14,847
Call 1-800-225-6292 or visit us.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 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 High Income Municipal Fund | Semiannual Report | 2/29/16
Performance Update | 2/29/16 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer High Income Municipal Fund during
the periods shown, compared to that of the Barclays High Yield Municipal Bond
Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
Barclays
High Yield
Municipal
If If Bond
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life of Class
(10/17/06) 2.22% 2.22% 4.33%
5 Years 5.28 5.28 7.51
1 Year 4.00 4.00 2.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.65%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays High Yield
Municipal Fund Municipal Bond Index
10/06 $10,000 $10,000
2/07 $10,329 $10,270
2/08 $ 9,219 $ 9,569
2/09 $ 6,990 $ 7,805
2/10 $ 9,217 $ 9,878
2/11 $ 9,471 $10,337
2/12 $ 9,951 $11,800
2/13 $11,635 $13,498
2/14 $10,725 $13,282
2/15 $11,780 $14,541
2/16 $12,252 $14,847
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. 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 High Income Municipal Fund | Semiannual Report | 2/29/16 11
Performance Update | 2/29/16 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer High Income Municipal Fund during
the periods shown, compared to that of the Barclays High Yield Municipal Bond
Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
Barclays
Net High Yield
Asset Municipal
Value Bond
Period (NAV) Index
--------------------------------------------------------------------------------
Life of Class
(10/17/06) 3.04% 4.33%
5 Years 6.23 7.51
1 Year 4.97 2.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.71%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer High Income Barclays High Yield
Municipal Fund Municipal Bond Index
10/06 $5,000,000 $5,000,000
2/07 $5,187,054 $5,135,163
2/08 $4,644,235 $4,784,639
2/09 $3,552,200 $3,902,577
2/10 $4,701,409 $4,939,057
2/11 $4,880,716 $5,168,354
2/12 $5,170,926 $5,900,058
2/13 $6,097,347 $6,748,911
2/14 $5,677,689 $6,641,049
2/15 $6,289,167 $7,270,605
2/16 $6,601,824 $7,423,707
Call 1-800-225-6292 or visit us.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 High Income Municipal Fund | Semiannual Report | 2/29/16
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 High Income Municipal Fund
Based on actual returns from September 1, 2015, through February 29, 2016.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 9/1/15
--------------------------------------------------------------------------------
Ending Account Value $1,049.00 $1,046.40 $1,051.70
(after expenses) on 2/29/16
--------------------------------------------------------------------------------
Expenses Paid $ 4.43 $ 8.29 $ 3.57
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.87%,
1.63% and 0.70% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
182/366 (to reflect the one-half year period).
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 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 High Income Municipal Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2015, through February 29, 2016.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 9/1/15
--------------------------------------------------------------------------------
Ending Account Value $1,020.54 $1,016.76 $1,021.38
(after expenses) on 2/29/16
--------------------------------------------------------------------------------
Expenses Paid $ 4.37 $ 8.17 $ 3.52
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.87%,
1.63% and 0.70% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
182/366 (to reflect the one-half year period).
14 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
Schedule of Investments | 2/29/16 (unaudited)
-----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 96.2% (e)
Alaska -- 0.6%
3,700,000 Northern Tobacco Securitization Corp., 5.0%, 6/1/46 $ 3,144,815
-----------------------------------------------------------------------------------------------------------
Arizona -- 1.0%
1,000,000 The Industrial Development Authority of the County
of Pima, Desert hights Charter, 7.0%, 5/1/34 $ 1,076,440
3,000,000 The Industrial Development Authority of the County
of Pima, Desert hights Charter, 7.25%, 5/1/44 3,251,190
725,000 The Industrial Development Authority of the County
of Pima, Legacy Traditional School Project, 8.5%,
7/1/39 (Pre-Refunded) 883,688
490,000 The Industrial Development Authority of the County
of Pima, Paradise Education Center, 6.0%, 6/1/40 509,428
---------------
$ 5,720,746
-----------------------------------------------------------------------------------------------------------
California -- 12.5%
1,215,000 California County Tobacco Securitization
Agency, 6/1/36 $ 1,217,029
30,000 California County Tobacco Securitization Agency,
Merced County, 5.125%, 6/1/38 28,563
5,770,000 California County Tobacco Securitization Agency,
Merced County, 5.25%, 6/1/45 5,440,995
5,040,000 California County Tobacco Securitization Agency,
Sonoma County Corp., 5.125%, 6/1/38 4,932,194
2,270,000 California County Tobacco Securitization Agency,
Sonoma County Corp., 5.25%, 6/1/45 2,213,500
1,300,000 California Municipal Finance Authority, John Adams
Academics Project, 5.25%, 10/1/45 1,323,322
6,300,000 California Municipal Finance Authority, Santa Rosa
Academy Project Ser A, 6.0%, 7/1/42 6,747,552
500,000 California Municipal Finance Authority, Santa Rosa
Academy Project, 5.125%, 7/1/35 521,840
1,575,000 California Municipal Finance Authority, Santa Rosa
Academy Project, 5.375%, 7/1/45 1,644,221
1,000,000 California School Finance Authority, 6.0%, View Park
Elementary and Middle School, 10/1/49 1,078,720
3,000,000 California School Finance Authority, 7.375%, Classical
Academies Project, 10/1/43 3,557,370
3,230,000 California School Finance Authority, ICEF View Park
High School, 7.125%, 10/1/48 3,729,552
830,000 California School Finance Authority, View Park
Elementary and Middle School, 5.625%, 10/1/34 886,730
1,475,000 California School Finance Authority, View Park
Elementary and Middle School, 5.875%, 10/1/44 1,583,855
1,560,000 California Statewide Communities Development
Authority, California Baptist University, 6.125%, 11/1/33 1,718,574
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 15
Schedule of Investments | 2/29/16 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------------
California -- (continued)
4,030,000 California Statewide Communities Development
Authority, California Baptist University,
6.375%, 11/1/43 $ 4,464,394
2,000,000 California Statewide Communities Development
Authority, Lancer Edl Student Housing Project,
7.5%, 6/1/42 2,194,860
315,559 California Statewide Communities Development
Authority, Microgy Holdings Project, 9.0%, 12/1/38 (c) 3
2,000,000 Golden State Tobacco Securitization Corp.,
5.125%, 6/1/47 1,782,380
11,000,000 Golden State Tobacco Securitization Corp.,
5.75%, 6/1/47 10,560,330
5,310,000 Golden State Tobacco Securitization Corp., 6/1/37 4,981,364
20,000,000 Inland Empire Tobacco Securitization Authority,
6/1/47 (d) 1,641,600
2,500,000 Pittsburg Unified School District, 9/1/41 (AGM
CNTY GTD) (d) 853,700
1,925,000 Pittsburg Unified School District, 9/1/42 (AGM
CNTY GTD) (d) 630,264
2,000,000 River Islands Public Financing Authority, 5.5%, 9/1/45 2,173,480
4,275,000 Tobacco Securitization Authority of Southern
California, 5.0%, 6/1/37 4,039,362
270,000 Tobacco Securitization Authority of Southern
California, 5.125%, 6/1/46 255,817
---------------
$ 70,201,571
-----------------------------------------------------------------------------------------------------------
Colorado -- 3.7%
2,860,000 Castle Oaks Metropolitan District No 3, 6.25%,
12/1/44 (f) $ 2,891,145
1,000,000 Colorado Educational & Cultural Facilities Authority,
5.0%, 12/15/45 999,930
2,000,000 Colorado Educational & Cultural Facilities Authority,
Charter School Rocky Mountain Classical, 8.0%, 9/1/43 2,112,840
5,000,000 Colorado Educational & Cultural Facilities Authority,
Charter School Rocky Mountain Classical,
8.125%, 9/1/48 5,303,150
2,000,000 Copperleaf Metropolitan District No 2,
5.75%, 12/1/45 (f) 2,100,140
2,840,000 Crystal Crossing Metropolitan District,
5.25%, 12/1/40 (f) 2,831,963
1,700,000 Littleton Village Metropolitan District No 2,
5.375%, 12/1/45 (f) 1,716,048
1,500,000 Promenade Castle Rock Metropolitan District No 1,
5.75%, 12/1/39 (f) 1,550,910
1,000,000 Sterling Ranch Community Authority Board, 5.75%,
12/1/45 (MUN GOVT GTD) 1,004,490
---------------
$ 20,510,616
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
-----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------------
Connecticut -- 0.5%
2,640,000 Town of Hamden Connecticut, Whitney Center Project,
7.75%, 1/1/43 $ 2,755,632
-----------------------------------------------------------------------------------------------------------
District of Columbia -- 0.8%
735,000 District of Columbia Tobacco Settlement Financing
Corp., 6.75%, 5/15/40 $ 738,771
4,000,000 District of Columbia, Provident Group Howard
Properties, 5.0%, 10/1/45 3,927,080
---------------
$ 4,665,851
-----------------------------------------------------------------------------------------------------------
Florida -- 1.9%
5,000,000 Alachua County Health Facilities Authority, Terraces
Bonita Springs Project, 8.125%, 11/15/46 $ 5,909,700
1,820,000 County of Liberty Florida, 8.25%, 7/1/28 (c) 270,725
1,000,000 Florida Development Finance Corp., Tuscan Isle
Obligated Group, 7.0%, 6/1/35 1,041,280
3,000,000 Florida Development Finance Corp., Tuscan Isle
Obligated Group, 7.0%, 6/1/45 3,125,550
---------------
$ 10,347,255
-----------------------------------------------------------------------------------------------------------
Hawaii -- 0.2%
1,000,000 State of Hawaii Department of Budget & Finance,
15 Craigside Project, 9.0%, 11/15/44 $ 1,234,870
-----------------------------------------------------------------------------------------------------------
Illinois -- 3.6%
4,213,653 4.00 Illinois Finance Authority, Clare Oaks Project Series B,
Floating Rate Note, 11/15/52 $ 2,966,412
2,634,795 Illinois Finance Authority, Clare Oaks Project Series C1,
11/15/52 (d) 94,536
526,959 Illinois Finance Authority, Clare Oaks Project Series C2,
11/15/52 (d) 143,797
526,959 Illinois Finance Authority, Clare Oaks Project Series C3,
11/15/52 (d) 90,510
1,250,000 Illinois Finance Authority, Norwegian American Hospital,
7.625%, 9/15/28 1,379,875
4,845,000 Illinois Finance Authority, Norwegian American Hospital,
7.75%, 9/15/38 5,624,657
485,000 Southwestern Illinois Development Authority,
Comprehensive Mental Health Center, 6.2%, 6/1/17 492,978
7,020,000 Southwestern Illinois Development Authority,
Comprehensive Mental Health Center, 6.625%, 6/1/37 7,187,708
2,350,000 Southwestern Illinois Development Authority, Village of
Sauget Project, 5.625%, 11/1/26 2,184,889
---------------
$ 20,165,362
-----------------------------------------------------------------------------------------------------------
Indiana -- 2.7%
1,750,000 City of Carmel Indiana, Barrington Carmel Project
Series A, 7.0%, 11/15/32 $ 1,969,572
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 17
Schedule of Investments | 2/29/16 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------------
Indiana -- (continued)
2,000,000 City of Carmel Indiana, Barrington Carmel Project
Series A, 7.125%, 11/15/42 $ 2,252,920
2,000,000 City of Carmel Indiana, Barrington Carmel Project
Series A, 7.125%, 11/15/47 2,246,840
3,500,000 City of Crown Point Indiana, Wittenberg Village
Project, 8.0%, 11/15/39 3,917,830
4,000,000 Hospital Authority of Vigo County, Union Hospital,
Inc., 8.0%, 9/1/41 4,777,080
---------------
$ 15,164,242
-----------------------------------------------------------------------------------------------------------
Iowa -- 2.0%
2,285,000 Iowa Tobacco Settlement Authority, 5.5%, 6/1/42 $ 2,241,219
5,290,000 Iowa Tobacco Settlement Authority, 5.6%, 6/1/34 5,292,010
3,705,000 Iowa Tobacco Settlement Authority, 5.625%, 6/1/46 3,690,217
---------------
$ 11,223,446
-----------------------------------------------------------------------------------------------------------
Louisiana -- 0.6%
5,800,000 Tensas Parish Law Enforcement District,
10/1/26 (c) (d) $ 3,477,796
-----------------------------------------------------------------------------------------------------------
Maryland -- 0.2%
1,000,000 Maryland Health & Higher Educational Facilities
Authority, City Neighbors Series A, 6.75%, 7/1/44 $ 1,091,250
-----------------------------------------------------------------------------------------------------------
Massachusetts -- 1.9%
3,954,928 Massachusetts Development Finance Agency, 5.5%,
Linden Ponds, Inc., 11/15/46 $ 3,398,865
2,000,000 Massachusetts Development Finance Agency,
Adventcare Project Series A, 6.75%, 10/15/37 2,070,840
845,000 Massachusetts Development Finance Agency,
Adventcare Project, 7.625%, 10/15/37 942,386
1,235,770 Massachusetts Development Finance Agency,
Linden Ponds, Inc., Series A-1, 6.25%, 11/15/26 1,210,190
3,340,294 Massachusetts Development Finance Agency,
Linden Ponds, Inc., Series A-1, 6.25%, 11/15/39 3,239,985
1,116,746 Massachusetts Development Finance Agency,
Linden Ponds, Inc., Series B, 11/15/56 (d) 6,466
3,500,000 Massachusetts Health & Educational Facilities
Authority, Quincy Medical Center, 1/15/38 (c) (d) 8,540
---------------
$ 10,877,272
-----------------------------------------------------------------------------------------------------------
Michigan -- 7.0%
1,250,000 Flint Hospital Building Authority, Hurley Medical
Center Series A, 5.25%, 7/1/39 $ 1,256,712
1,250,000 Flint Hospital Building Authority, Hurley Medical
Center, 7.375%, 7/1/35 1,426,038
5,485,000 Flint International Academy, 5.75%, 10/1/37 5,535,956
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
-----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------------
Michigan -- (continued)
185,000 Michigan Public Educational Facilities Authority,
Dr. Joseph Pollack, 7.25%, 4/1/20 $ 195,660
2,020,000 Michigan Public Educational Facilities Authority,
Dr. Joseph Pollack, 8.0%, 4/1/40 2,138,938
4,410,000 Michigan Public Educational Facilities Authority, Ltd
Oblig-David Ellis-West Project, 5.875%, 6/1/37 4,425,391
7,135,000 6.75 Michigan Strategic Fund, CFP Michigan Dept Offices
Lease B, Floating Rate Note, 3/1/40 7,669,340
4,000,000 6.62 Michigan Strategic Fund, Floating Rate Note, 11/1/41 4,214,880
750,000 Michigan Tobacco Settlement Finance Authority,
6.0%, 6/1/34 706,350
11,320,000 Michigan Tobacco Settlement Finance Authority,
6.0%, 6/1/48 10,234,525
1,250,000 Michigan Tobacco Settlement Finance Authority,
6.875%, 6/1/42 1,283,988
---------------
$ 39,087,778
-----------------------------------------------------------------------------------------------------------
Minnesota -- 1.1%
2,000,000 Bloomington Port Authority, Radisson Blu MOA LLC,
9.0%, 12/1/35 $ 2,290,860
1,500,000 City of Brooklyn Park Minnesota, Prairie Seeds
Academy Project Series A, 9.25%, 3/1/39
(Pre-Refunded) 1,658,715
500,000 City of Deephaven Minnesota, Eagle Ridge Academy
Project, 5.25%, 7/1/37 518,645
1,500,000 City of Deephaven Minnesota, Eagle Ridge Academy
Project, 5.5%, 7/1/50 1,546,275
---------------
$ 6,014,495
-----------------------------------------------------------------------------------------------------------
Missouri -- 1.6%
5,645,000 Community Memorial Hospital District,
6.68%, 12/1/34 $ 5,909,073
2,500,000 Kirkwood Industrial Development Authority, Aberdeen
Hrights Series A, 8.25%, 5/15/45 2,820,575
---------------
$ 8,729,648
-----------------------------------------------------------------------------------------------------------
New Jersey -- 4.2%
5,500,000 New Jersey Economic Development Authority,
Gloucester Marine Project, 6.625%, 1/1/37 $ 5,500,000
4,500,000 New Jersey Health Care Facilities Financing
Authority, St. Peters University Hospital, 6.25%, 7/1/35 4,869,720
6,580,000 Tobacco Settlement Financing Corp. New Jersey,
4.75%, 6/1/34 5,609,384
9,000,000 Tobacco Settlement Financing Corp. New Jersey,
5.0%, 6/1/41 7,721,730
---------------
$ 23,700,834
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 19
Schedule of Investments | 2/29/16 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------------
New Mexico -- 1.3%
35,000 County of Otero New Mexico, 6.0%, 4/1/23 $ 35,813
7,075,000 County of Otero New Mexico, 6.0%, 4/1/28 7,175,040
---------------
$ 7,210,853
-----------------------------------------------------------------------------------------------------------
New York -- 5.5%
210,000 Erie Tobacco Asset Securitization Corp., 5.0%, 6/1/38 $ 207,209
25,000 New York Counties Tobacco Trust IV, 5.0%, 6/1/42 23,044
2,405,000 New York Counties Tobacco Trust IV, 5.0%, 6/1/45 2,175,972
10,000,000 New York Counties Tobacco Trust V%, 6/1/38 (d) 2,547,400
8,030,000 Suffolk Tobacco Asset Securitization Corp.,
6.0%, 6/1/48 7,848,924
8,000,000 Suffolk Tobacco Asset Securitization Corp., 6/1/44 8,086,880
10,000,000 The Erie County Industrial Development Agency,
Galvstar LLC Project Series A, 10/1/30 (c) (d) 2,524,600
8,000,000 The Erie County Industrial Development Agency,
Galvstar LLC Project Series B, 10/1/30 (c) (d) 2,037,760
1,795,000 The Erie County Industrial Development Agency,
Galvstar LLC Project Series C, 10/1/30 (c) (d) 457,222
115,000 TSASC, Inc. New York, 5.0%, 6/1/34 110,415
5,040,000 TSASC, Inc. New York, 5.125%, 6/1/42 4,605,199
---------------
$ 30,624,625
-----------------------------------------------------------------------------------------------------------
Ohio -- 6.6%
5,735,000 Buckeye Tobacco Settlement Financing Authority,
5.75%, 6/1/34 $ 5,133,112
9,350,000 Buckeye Tobacco Settlement Financing Authority,
5.875%, 6/1/47 8,368,811
8,555,000 Buckeye Tobacco Settlement Financing Authority,
6.0%, 6/1/42 7,652,533
6,335,000 Buckeye Tobacco Settlement Financing Authority,
6.5%, 6/1/47 6,097,121
1,150,000 County of Muskingum Ohio, Genesis Healthcare
System Project, 5.0%, 2/15/33 1,204,303
5,000,000 County of Muskingum Ohio, Genesis Healthcare
System Project, 5.0%, 2/15/48 5,134,250
2,900,000 Southeastern Ohio Port Authority, 6.0%, 12/1/42 3,223,872
---------------
$ 36,814,002
-----------------------------------------------------------------------------------------------------------
Pennsylvania -- 8.0%
680,000 Allegheny County Hospital Development Authority,
Ohio Valley General Hospital Project A,
5.125%, 4/1/35 $ 680,061
3,000,000 Pennsylvania Economic Development Financing
Authority, Northwestern Human Services Series A,
5.25%, 6/1/28 3,002,310
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
-----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------------
Pennsylvania -- (continued)
2,005,000 Pennsylvania Economic Development Financing
Authority, US Airways Group Series A, 7.5%, 5/1/20 $ 2,296,908
8,445,000 Pennsylvania Economic Development Financing
Authority, US Airways Group Series B, 8.0%, 5/1/29 9,914,852
2,200,000 Philadelphia Authority for Industrial Development,
6.5%, 6/1/45 2,223,320
3,145,000 Philadelphia Authority for Industrial Development,
6.625%, 6/1/50 3,180,318
2,500,000 Philadelphia Authority for Industrial Development,
Green Woods Charter School Projects A,
5.5%, 6/15/32 2,634,125
5,200,000 Philadelphia Authority for Industrial Development,
Green Woods Charter School Projects A,
5.75%, 6/15/42 5,494,112
6,000,000 Philadelphia Authority for Industrial Development,
Nueva Esperanze Inc., 8.2%, 12/1/43 6,908,640
1,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School Project, 6.5%,
6/15/33 (144A) 1,065,580
3,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School Project, 6.75%,
6/15/43 (144A) 3,206,310
4,000,000 The Hospitals & Higher Education Facilities Authority
of Philadelphia, Temple University Health System
Series A, 5.625%, 7/1/42 4,300,280
---------------
$ 44,906,816
-----------------------------------------------------------------------------------------------------------
Puerto Rico -- 2.3%
18,000,000 Commonwealth of Puerto Rico, 8.0%, 7/1/35 (f) $ 12,983,040
-----------------------------------------------------------------------------------------------------------
Rhode Island -- 0.1%
2,065,000 Central Falls Detention Facility Corp., 7.25%,
7/15/35 (c) $ 513,875
-----------------------------------------------------------------------------------------------------------
Tennessee -- 0.0%+
5,000 Johnson City Health & Educational Facilities Board,
Appalachian Christian Village, 5.0%, 2/15/43 $ 5,196
-----------------------------------------------------------------------------------------------------------
Texas -- 9.6%
5,500,000 Arlington Higher Education Finance Corp., Universal
Academy Series A, 7.125%, 3/1/44 $ 5,813,665
400,000 City of Celina Texas, 5.375%, 9/1/28 399,636
1,000,000 City of Celina Texas, 5.5%, 9/1/24 999,320
250,000 City of Celina Texas, 5.5%, 9/1/32 249,730
650,000 City of Celina Texas, 5.875%, 9/1/40 649,162
1,075,000 City of Celina Texas, 6.0%, 9/1/30 1,073,968
2,700,000 City of Celina Texas, 6.25%, 9/1/40 2,696,625
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 21
Schedule of Investments | 2/29/16 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------------
Texas -- (continued)
500,000 City of Mclendon-Chisholm Texas, Sonoma Public
Impt Dist Phase, 5.125%, 9/15/28 $ 502,470
450,000 City of Mclendon-Chisholm Texas, Sonoma Public
Impt Dist Phase, 5.375%, 9/15/35 452,200
400,000 City of Mclendon-Chisholm Texas, Sonoma Public
Impt Dist Phase, 5.5%, 9/15/40 401,948
234,442 Gulf Coast Industrial Development Authority,
Microgy Holdings Project, 12/1/36 (c) (d) 2
1,300,000 Kinney County Public Facilities Corp., 7.0%, 11/1/25 1,184,326
2,000,000 La Vernia Higher Education Finance Corp., Meridian
World School Series A, 5.5%, 8/15/45 2,031,020
17,350,000 Sanger Industrial Development Corp., Texas Pellets
Project Series B, 8.0%, 7/1/38 16,655,482
2,250,000 Tarrant County Cultural Education Facilities Finance
Corp., Mirador Project Series A, 8.0%, 11/15/29 1,926,315
5,000,000 Tarrant County Cultural Education Facilities Finance
Corp., Mirador Project Series A, 8.125%, 11/15/39 4,280,200
120,000 Tarrant County Cultural Education Facilities Finance
Corp., MRC Crestview Project, 8.0%, 11/15/34 137,914
6,350,000 Tarrant County Cultural Education Facilities Finance
Corp., MRC Crestview Project, 8.125%, 11/15/44 7,284,847
1,775,000 Tarrant County Cultural Education Facilities Finance
Corp., Stayton at Museum Way Series A, 8.0%,
11/15/28 1,787,620
5,000,000 Tarrant County Cultural Education Facilities Finance
Corp., Stayton at Museum Way Series A,
8.25%, 11/15/44 5,046,900
1,000,000 Texas Midwest Public Facility Corp., Secure Treatment
Facility Project, 10/1/30 (c) (d) 118,990
---------------
$ 53,692,340
-----------------------------------------------------------------------------------------------------------
Utah -- 1.7%
1,285,000 Utah Charter School Finance Authority, Summit
Academy High School Series A, 7.25%, 5/15/21 $ 1,421,030
1,985,000 Utah Charter School Finance Authority, Summit
Academy High School Series A, 8.125%, 5/15/31 2,251,188
5,145,000 Utah Charter School Finance Authority, Summit
Academy High School Series A, 8.5%, 5/15/41 5,895,553
---------------
$ 9,567,771
-----------------------------------------------------------------------------------------------------------
Virginia -- 3.2%
2,100,000 Cherry Hill Community Development Authority,
Potomac Shores Project, 5.4%, 3/1/45 $ 2,172,156
815,000 Embrey Mill Community Development Authority,
5.3%, 3/1/35 828,415
4,685,000 Embrey Mill Community Development Authority,
5.6%, 3/1/45 4,761,131
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
-----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------------
Virginia -- (continued)
12,870,000 Tobacco Settlement Financing Corp. Virginia,
5.0%, 6/1/47 $ 10,226,502
---------------
$ 17,988,204
-----------------------------------------------------------------------------------------------------------
Washington -- 2.8%
3,500,000 Washington State Housing Finance Commission,
Skyline at First Hill Project Series A, 5.625%, 1/1/27 $ 3,548,895
11,825,000 Washington State Housing Finance Commission,
Skyline at First Hill Project Series A, 5.625%, 1/1/38 11,956,612
---------------
$ 15,505,507
-----------------------------------------------------------------------------------------------------------
West Virginia -- 3.7%
25,000,000 City of Philippi West Virginia, 7.75%, 10/1/44 (c) $ 15,000,500
5,340,000 West Virginia Hospital Finance Authority, Highland
Hospital Oblig Group, 9.125%, 10/1/41 5,791,604
---------------
$ 20,792,104
-----------------------------------------------------------------------------------------------------------
Wisconsin -- 5.3%
8,615,000 Public Finance Authority, Cabs-Springshire Pre-Dev
Project, 12/1/20 (144A) (d) $ 4,955,090
1,590,000 Public Finance Authority, Coral Academy Science
Las Vegas, 5.625%, 7/1/44 1,699,440
5,325,000 Public Finance Authority, Glenridge Palmer Ranch
Series A, 8.25%, 6/1/46 6,654,493
5,057,500 Public Finance Authority, Las Ventanas Retirement
Community, 7.0%, 10/1/42 5,080,815
1,500,000 Public Finance Authority, Roseman University Health
Sciences, 5.75%, 4/1/35 1,547,010
4,150,000 Public Finance Authority, Roseman University Health
Sciences, 5.875%, 4/1/45 4,265,868
1,200,000 Public Finance Authority, Searstone CCRC Project
Series B, 8.375%, 6/1/20 1,200,540
1,245,000 Public Finance Authority, Voyager Foundation Inc.,
Project Series A, 5.125%, 10/1/45 1,267,920
2,815,000 Public Finance Authority, Voyager Foundation Inc.,
Project Series A, 6.2%, 10/1/42 3,045,128
---------------
$ 29,716,304
-----------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $533,142,922) $ 538,434,116
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 23
Schedule of Investments | 2/29/16 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT
OBLIGATION -- 0.0%+
1,175,000 0.00 Non-Profit Preferred Funding Trust I, Floating
Rate Note, 9/15/37 (144A) $ 63,168
-----------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED
DEBT OBLIGATION
(Cost $1,172,544) $ 63,168
-----------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 1.8%
10,000,000 U.S. Treasury Bills, 3/17/16 (d) $ 9,999,030
-----------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $9,998,811) $ 9,999,030
-----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 98.0%
(Cost $544,314,277) (a) $ 548,496,314
-----------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 2.0% $ 11,113,168
-----------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 559,609,482
===========================================================================================================
+ Amount rounds to less than 0.01%.
(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 February 29, 2016, the value of these securities
amounted to $9,290,148 or 1.7% of total net assets.
(Pre-Refunded) Pre-Refunded bonds have been collateralized by U.S. Treasury
securities which are held in escrow and used to pay principal and
interest on the tax-exempt issue and to retire the bonds in full
at the earliest refunding date.
(a) At February 29, 2016, the net unrealized appreciation on
investments based on cost for federal income tax purposes of
$544,222,793 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 43,631,765
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (39,358,244)
------------
Net unrealized appreciation $ 4,273,521
============
(b) Debt obligation with a variable interest rate. Rate shown is rate
at end of period.
(c) Security is in default.
(d) Security issued with a zero coupon. Income is earned through
accretion of discount.
(e) Consists of Revenue Bonds unless otherwise indicated.
(f) Represents a General Obligation bond.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 29, 2016, aggregated $75,777,573 and $52,718,333,
respectively.
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
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.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes to
Financial Statements -- Note 1A.
The following is a summary of the inputs used as of February 29, 2016, in
valuing the Fund's investments:
-------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------------
Municipal Bonds $ -- $ 538,434,116 $ -- $ 538,434,116
Municipal Collateralized
Debt Obligation -- 63,168 -- 63,168
U.S. Government and Agency
Obligations -- 9,999,030 -- 9,999,030
-------------------------------------------------------------------------------------------------
Total $ -- $ 548,496,314 $ -- $ 548,496,314
=================================================================================================
During the six months ended February 29, 2016, there were no transfers between
Levels 1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 25
Statement of Assets and Liabilities | 2/29/16 (unaudited)
ASSETS:
Investment in securities, at value (cost $544,314,277) $548,496,314
Cash 3,399,480
Receivables --
Investment securities sold 40,000
Fund shares sold 1,916,687
Interest 9,140,460
Other Assets 35,541
--------------------------------------------------------------------------------
Total assets $563,028,482
================================================================================
LIABILITIES:
Payables --
Fund shares repurchased $ 2,695,587
Dividends 479,203
Trustee fees 3,405
Due to affiliates 119,347
Accrued expenses 121,458
--------------------------------------------------------------------------------
Total liabilities $ 3,419,000
================================================================================
NET ASSETS:
Paid-in capital $604,130,766
Undistributed net investment income 7,909,220
Accumulated net realized loss on investments (56,612,541)
Net unrealized appreciation on investments 4,182,037
--------------------------------------------------------------------------------
Total net assets $559,609,482
================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $257,108,891/34,866,196 shares) $ 7.37
Class C (based on $153,788,626/20,852,410 shares) $ 7.38
Class Y (based on $148,711,965/20,432,656 shares) $ 7.28
MAXIMUM OFFERING PRICE:
Class A ($7.37 (divided by) 95.5%) $ 7.72
================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
Statement of Operations (unaudited)
For the Six Months Ended 2/29/16
INVESTMENT INCOME:
Interest $15,691,296
------------------------------------------------------------------------------------------------
Total investment income $15,691,296
------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,329,574
Transfer agent fees
Class A 7,659
Class C 3,491
Class Y 2,594
Distribution fees
Class A 312,074
Class C 744,242
Shareholder communications expense 163,988
Administrative expense 89,262
Custodian fees 3,630
Registration fees 25,370
Professional fees 37,501
Printing expense 5,867
Fees and expenses of nonaffiliated Trustees 9,950
Miscellaneous 32,548
------------------------------------------------------------------------------------------------
Total expenses $ 2,767,750
------------------------------------------------------------------------------------------------
Net investment income $12,923,546
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments $ 3,713,953
------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on investments $ 9,045,469
------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $12,759,422
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $25,682,968
================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 27
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------
Six Months
Ended
2/29/16 Year Ended
(unaudited) 8/31/15
------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 12,923,546 $ 27,796,505
Net realized gain (loss) on investments 3,713,953 (6,679,877)
Change in net unrealized appreciation (depreciation)
on investments 9,045,469 875,019
------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 25,682,968 $ 21,991,647
------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.20 and $0.40 per share, respectively) $ (6,869,242) $ (13,393,020)
Class C ($0.17 and $0.35 per share, respectively) (3,524,291) (7,010,653)
Class Y ($0.20 and $0.41 per share, respectively) (3,841,261) (6,591,060)
------------------------------------------------------------------------------------------
Total distributions to shareowners $ (14,234,794) $ (26,994,733)
------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 93,238,195 $ 169,528,293
Reinvestment of distributions 11,442,862 22,079,945
Cost of shares repurchased (76,627,467) (156,480,079)
------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ 28,053,590 $ 35,128,159
------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 39,501,764 $ 30,125,073
NET ASSETS:
Beginning of period $ 520,107,718 $ 489,982,645
------------------------------------------------------------------------------------------
End of period $ 559,609,482 $ 520,107,718
------------------------------------------------------------------------------------------
Undistributed net investment income $ 7,909,220 $ 9,220,468
=========================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
----------------------------------------------------------------------------------------
Six Months Six Months
Ended Ended
2/29/16 2/29/16 Year Ended Year Ended
Shares Amount 8/31/15 8/31/15
(unaudited) (unaudited) Shares Amount
----------------------------------------------------------------------------------------
Class A
Shares sold 5,111,312 $ 37,384,954 11,663,809 $ 85,671,600
Reinvestment of distributions 809,664 5,925,563 1,603,795 11,756,863
Less shares repurchased (5,122,772) (37,444,738) (12,244,062) (89,616,434)
----------------------------------------------------------------------------------------
Net increase 798,204 $ 5,865,779 1,023,542 $ 7,812,029
========================================================================================
Class C
Shares sold 2,124,495 $ 15,532,188 3,106,826 $ 22,852,098
Reinvestment of distributions 386,233 2,827,702 775,852 5,689,573
Less shares repurchased (1,890,424) (13,811,337) (4,193,913) (30,726,011)
----------------------------------------------------------------------------------------
Net increase (decrease) 620,304 $ 4,548,553 (311,235) $ (2,184,340)
========================================================================================
Class Y
Shares sold 5,579,162 $ 40,321,053 8,395,575 $ 61,004,595
Reinvestment of distributions 372,166 2,689,597 640,635 4,633,509
Less shares repurchased (3,514,050) (25,371,392) (4,995,290) (36,137,634)
----------------------------------------------------------------------------------------
Net increase 2,437,278 $ 17,639,258 4,040,920 $ 29,500,470
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 29
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/29/16 Ended Ended Ended Ended Ended
(unaudited) 8/31/15 8/31/14 8/31/13 8/31/12 8/31/11
--------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 7.22 $ 7.27 $ 7.19 $ 7.94 $ 7.58 $ 7.97
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.18(a) $ 0.41 $ 0.43 $ 0.53 $ 0.47 $ 0.53
Net realized and unrealized gain (loss) on investments 0.17 (0.06) 0.09 (0.84) 0.34 (0.40)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.35 $ 0.35 $ 0.52 $ (0.31) $ 0.81 $ 0.13
--------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.20) $ (0.40) $ (0.44) $ (0.44) $ (0.45) $ (0.52)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.15 $ (0.05) $ 0.08 $ (0.75) $ 0.36 $ (0.39)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.37 $ 7.22 $ 7.27 $ 7.19 $ 7.94 $ 7.58
================================================================================================================================
Total return* 4.90% 4.88% 7.52% (4.26)% 11.24% 1.83%
Ratio of net expenses to average net assets 0.87%** 0.89% 0.90% 0.88% 0.89% 0.88%
Ratio of net investment income (loss) to average net assets 5.01%** 5.59% 5.97% 6.26% 6.25% 6.98%
Portfolio turnover rate 20%** 29% 55% 17% 54% 65%
Net assets, end of period (in thousands) $257,109 $245,877 $240,331 $250,163 $373,039 $378,883
================================================================================================================================
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
30 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/29/16 Ended Ended Ended Ended Ended
(unaudited) 8/31/15 8/31/14 8/31/13 8/31/12 8/31/11
--------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 7.22 $ 7.28 $ 7.19 $ 7.94 $ 7.58 $ 7.96
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.15(a) $ 0.36 $ 0.41 $ 0.46 $ 0.41 $ 0.47
Net realized and unrealized gain (loss) on investments 0.18 (0.07) 0.07 (0.83) 0.35 (0.39)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.33 $ 0.29 $ 0.48 $ (0.37) $ 0.76 $ 0.08
--------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.17) $ (0.35) $ (0.39) $ (0.38) $ (0.40) $ (0.46)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.16 $ (0.06) $ 0.09 $ (0.75) $ 0.36 $ (0.38)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.38 $ 7.22 $ 7.28 $ 7.19 $ 7.94 $ 7.58
================================================================================================================================
Total return* 4.64% 3.95% 6.85% (4.98)% 10.42% 1.19%
Ratio of net expenses to average net assets 1.63%** 1.65% 1.66% 1.63% 1.63% 1.63%
Ratio of net investment income (loss) to average net assets 4.25%** 4.83% 5.23% 5.53% 5.50% 6.24%
Portfolio turnover rate 20%** 29% 55% 17% 54% 65%
Net assets, end of period (in thousands) $153,789 $146,029 $149,453 $195,290 $265,448 $244,848
================================================================================================================================
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 31
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/29/16 Ended Ended Ended Ended Ended
(unaudited) 8/31/15 8/31/14 8/31/13 8/31/12 8/31/11
--------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 7.12 $ 7.18 $ 7.10 $ 7.84 $ 7.49 $ 7.88
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.19(a) $ 0.39 $ 0.46 $ 0.53 $ 0.48 $ 0.53
Net realized and unrealized gain (loss) on investments 0.17 (0.04) 0.07 (0.82) 0.33 (0.39)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.36 $ 0.35 $ 0.53 $ (0.29) $ 0.81 $ 0.14
--------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.20) $ (0.41) $ (0.45) $ (0.45) $ (0.46) $ (0.53)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.16 $ (0.06) $ 0.08 $ (0.74) $ 0.35 $ (0.39)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.28 $ 7.12 $ 7.18 $ 7.10 $ 7.84 $ 7.49
================================================================================================================================
Total return* 5.17% 4.92% 7.69% (4.05)% 11.43% 2.02%
Ratio of net expenses to average net assets 0.70%** 0.71% 0.71% 0.72% 0.67% 0.67%
Ratio of net investment income (loss) to average net assets 5.18%** 5.77% 6.17% 6.40% 6.46% 7.21%
Portfolio turnover rate 20%** 29% 55% 17% 54% 65%
Net assets, end of period (in thousands) $148,712 $128,202 $100,199 $119,658 $176,664 $198,089
================================================================================================================================
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
32 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
Notes to Financial Statements | 2/29/16 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer High Income Municipal Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as an open-end management
investment company. The Fund is non-diversified. The investment objective of the
Fund is to maximize total return through a combination of income that is exempt
from regular federal income tax and capital appreciation.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. 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 of Trustees 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.
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:
A. Security Valuation
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.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 33
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Valuations may be supplemented by dealers and other sources, as
required. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service.
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 by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. PIM's fair
valuation team is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair values on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices, and
such differences could be material.
At February 29, 2016, there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services or broker-dealers).
B. Investment Income and Transactions
Discount and premium on purchase prices of debt securities are accreted or
amortized, respectively, daily into interest income on a yield-to-maturity
basis over the life of the respective security with a corresponding
increase or decrease in the cost basis of the security. Interest income,
including interest on income-bearing cash accounts, is recorded on the
accrual basis.
34 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. 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 provision for federal income taxes is required.
As of August 31, 2015, the Fund did not accrue any interest or penalties
with respect to uncertain tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years remain subject to examination by
Federal and State tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
during the year ended August 31, 2015, was as follows:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $26,502,250
Ordinary income 492,483
---------------------------------------------------------------------------
Total $26,994,733
===========================================================================
The following shows the components of distributable earnings on a federal
income tax-basis at August 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 9,515,422
Capital loss carryforward (60,290,758)
Current year dividend payable (422,174)
Net unrealized depreciation (4,771,948)
---------------------------------------------------------------------------
Total $(55,969,458)
===========================================================================
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 35
The difference between book-basis and tax-basis net unrealized depreciation
is attributable to adjustments related to interest on defaulted bonds, the
tax treatment of amortization and tax-basis adjustments on partnerships.
D. 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 $42,885 in underwriting commissions on the sale of
Class A shares during the six months ended February 29, 2016.
E. 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 Fund's transfer agent 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.
F. Risks
The municipal bond market can be susceptible to unusual volatility,
particularly for lower-rated and unrated securities. Liquidity can be
reduced unpredictably in response to overall economic conditions or credit
tightening. Municipal issuers may be adversely affected by rising health
care costs, increasing unfunded pension liabilities, and by the phasing out
of federal programs providing financial support. Unfavorable conditions and
developments relating to projects financed with municipal securities can
result in lower revenues to issuers of municipal securities, potentially
resulting in defaults. Issuers often depend on revenues from these projects
to make principal and interest payments. The value of municipal securities
can also be adversely affected by changes in the financial condition of one
or
36 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
more individual municipal issuers or insurers of municipal issuers,
regulatory and political developments, tax law changes or other legislative
actions, and by uncertainties and public perceptions concerning these and
other factors. Municipal securities may be more susceptible to downgrades
or defaults during recessions or similar periods of economic stress. In
recent periods, an increasing number of municipal issuers in the United
States have defaulted on obligations and commenced insolvency proceedings.
Financial difficulties of municipal issuers may continue or get worse. To
the extent the Fund invests significantly in a single state, including
California, Massachusetts and Texas, or in securities the payments on which
are dependent upon a single project or source of revenues, or that relate
to a sector or industry, including health care facilities, education,
transportation, special revenues and pollution control, the Fund will be
more susceptible to associated risks and developments.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's prospectus
contains unaudited information regarding the Fund's principal risks. Please
refer to that document when considering the Fund's principal risks.
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 equal to
0.50% of the Fund's average daily net assets up to $500 million; 0.475% of the
next $500 million of the Fund's average daily net assets and 0.45% of the Fund's
average daily net assets over $1 billion. For the six months ended February 29,
2016, the effective management fee (excluding waivers and/or assumption of
expenses) was equivalent to 0.50% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses (excluding
taxes, commissions, interest and extraordinary expenses) of the Fund to the
extent required to reduce Fund expenses to 0.90% of the average daily net assets
attributable to Class A shares. Class C and Class Y shares do not have an
expense limitation. This expense limitation is in effect through January 1,
2017, 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
$31,578 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 29, 2016.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 37
3. Transfer Agent
Prior to November 2, 2015, Pioneer Investment Management Shareholder Services,
Inc. (PIMSS), a wholly owned indirect subsidiary of UniCredit, provided
substantially all transfer agent and shareowner services to the Fund at
negotiated rates.
Effective November 2, 2015, Boston Financial Data Services serves as the
transfer agent to the Fund at negotiated rates.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings, outgoing phone calls and omnibus
relationship contracts. For the six months ended February 29, 2016, such out-
of-pocket expenses by class of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 43,550
Class C 35,521
Class Y 84,917
--------------------------------------------------------------------------------
Total $163,988
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $63,940 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 29, 2016.
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 services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $23,829 in distribution fees payable to
PFD at February 29, 2016.
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 12 months of purchase. Redemptions of Class C shares within 12 months 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
38 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
those shares. There is no CDSC for Class Y shares. Proceeds from the CDSCs are
paid to PFD. For the six months ended February 29, 2016, CDSCs in the amount of
$4,834 were paid to PFD.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a 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. The
credit facility in effect until June 9, 2015, was in the amount of $215 million.
For the period from June 9, 2015, to February 9, 2016, the facility was in the
amount of $240 million. Effective February 10, 2016, the facility is in the
amount of $220 million. Under such facility, depending on the type of loan,
interest on borrowings is payable at the London Interbank Offered Rate (LIBOR)
plus 0.85% on an annualized basis, or the Alternate Base Rate, which is the
greater of (a) the facility's administrative agent's daily announced prime rate
on the borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing date
and (c) 2% plus the overnight Eurodollar rate on the borrowing date. The Funds
pay an annual commitment fee to participate in a credit 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 February 29, 2016, the
Fund had no borrowings under the credit facility.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 39
Additional Information (unaudited)
PIM, the Fund's investment adviser, is currently an indirect, wholly owned
subsidiary of UniCredit. On November 11, 2015, UniCredit announced that it
signed a binding master agreement with Banco Santander and affiliates of Warburg
Pincus and General Atlantic (the "Private Equity Firms") with respect to Pioneer
Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as previously announced by UniCredit, will establish a holding
company, with the name Pioneer Investments, to be owned by UniCredit (50%) and
the Private Equity Firms (50% between them). The holding company will control
Pioneer's U.S. operations, including the Adviser. The holding company also will
own 66.7% of Pioneer's and SAM's combined operations outside the U.S., while
Banco Santander will own directly the remaining 33.3% stake. The closing of the
Transaction is expected to happen in 2016, subject to certain regulatory and
other approvals.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's current investment advisory agreement with PIM to terminate.
Accordingly, the Fund's Board of Trustees will be asked to approve a new
investment advisory agreement. If approved by the Board, the Fund's new
investment advisory agreement will be submitted to the shareholders of the Fund
for their approval.
40 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer High Income Municipal Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in January 2015 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2015 and July
2015. Supplemental contract review materials were provided to the Trustees in
September 2015. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year, and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings, in connection with the review of the Fund's
investment advisory agreement.
In March 2015, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In July 2015,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2015.
At a meeting held on September 15, 2015, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 41
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed PIM's investment approach
for the Fund and its research process. The Trustees considered the resources of
PIM and the personnel of PIM who provide investment management services to the
Fund. They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. The Trustees considered the non-investment resources and
personnel of PIM involved in PIM's services to the Fund, including PIM's
compliance and legal resources and personnel. The Trustees noted the substantial
attention and high priority given by PIM's senior management to the Pioneer fund
complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They discussed the Fund's performance with PIM on a
more frequent basis in light of the Fund's unfavorable performance compared to
its benchmark index and peers over certain periods. The Trustees noted PIM's
explanation for the Fund's relative performance and the steps taken by PIM to
address the Fund's performance, including further diversifying the Fund's
portfolio. It also was noted that Jonathan Chirunga was added as a portfolio
manager of the Fund in 2013. The
42 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
Trustees' reviews and discussions, including the steps taken by PIM to address
the Fund's performance, were factored into the Trustees' deliberations
concerning the renewal of the advisory agreement.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party. In all
quintile rankings referred to below, first quintile is most favorable to the
Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the third quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoints in the management fee schedule and the
reduced fee rates above certain asset levels. The Trustees considered that the
expense ratio of the Fund's Class A shares for the most recent fiscal year was
in the fourth quintile relative to its Morningstar peer group and in the third
quintile relative to its Strategic Insight peer group, in each case for the
comparable period. The Trustees considered that the expense ratio of the Fund's
Class A shares was approximately five basis points higher than the median
expense ratio of its Morningstar peer group. The Trustees considered the impact
of transfer agency, sub-transfer agency, and other non-management fee expenses
on the expense ratios of the Fund, and noted the impact of expenses relating to
small accounts and omnibus accounts on transfer and sub-transfer agency
expenses generally. The Trustees noted that they separately review the Fund's
transfer agency, sub-transfer agency and intermediary arrangements.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 43
advisory agreement with the Fund, PIM performs additional services for the Fund
that it does not provide to those other clients or services that are broader in
scope, including oversight of the Fund's other service providers and activities
related to compliance and the extensive regulatory and tax regimes to which the
Fund is subject. The Trustees also considered the different entrepreneurial
risks associated with PIM's management of the Fund and Pioneer's management of
the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoints in the management fee schedule. The Trustees recognize
that economies of scale are difficult to identify and quantify, and that, among
other factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Fund. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons including reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
44 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 45
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data 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 us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Ms. Monchak is a non-voting Advisory Trustee.
46 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
This page for your notes.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 47
This page for your notes.
48 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
This page for your notes.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 49
This page for your notes.
50 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
This page for your notes.
Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16 51
This page for your notes.
52 Pioneer High Income Municipal Fund | Semiannual Report | 2/29/16
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:
--------------------------------------------------------------------------------
Pioneer Funds
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: us.pioneerinvestments.com
This report must be preceded or 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.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2016 Pioneer Investments 20563-09-0416
Pioneer Long/Short
Bond Fund
(Formerly Pioneer Long/Short Global
Bond Fund)*
--------------------------------------------------------------------------------
Semiannual Report | February 29, 2016
--------------------------------------------------------------------------------
Ticker Symbols:
Class A LSGAX
Class C LSGCX
Class Y LSGYX
* Effective June 1, 2015, the Fund was renamed Pioneer
Long/Short Bond Fund.
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 27
Notes to Financial Statements 34
Approval of Investment Advisory Agreement 55
Trustees, Officers and Service Providers 60
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 1
President's Letter
Dear Shareowner,
Over the past several years, many investors experienced positive returns across
most major asset classes. However, 2015 was a tale of two markets, with
favorable market conditions in the first half of the year, followed by an abrupt
slowdown and increased volatility beginning in August. The global markets were
challenged by significant economic cross-currents in different geographic
regions and industrial sectors. While the U.S. economy gradually improved,
growth slowed in China. Emerging markets struggled following a decline in
commodity prices, especially oil. While lower energy prices are good for the
consumer, there were ripple effects throughout the global economy.
Against this backdrop, the Standard & Poor's 500 Index rose by just 1.4% in
2015, international equity markets were essentially flat, and emerging market
equities fell sharply. Across U.S. fixed-income sectors, U.S. government and
investment-grade corporate bonds were fairly flat for the year, while high-yield
bonds, as measured by the Bank of America Merrill Lynch Master II High Yield
Index, posted a -4.9% total return.
Entering 2016, we see the U.S. economy growing modestly, against an overall
global economic backdrop that remains fragile and points towards structurally
lower growth. As always in a presidential election year, political rhetoric has
the potential to impact U.S. sectors such as health care in 2016. Economies
around the world in both developed and emerging markets are experiencing deep
structural change. Geopolitical instability on many fronts, the rising risk of
policy mistakes, and market liquidity issues all increase the possibility of
sharp swings in asset values. In this environment, financial markets remain
vulnerable to unusual levels of volatility. While divergences among regions and
industries is an important theme, we are generally optimistic about the outlook
for the U.S. economy, which we expect will see continued, positive growth led by
a strengthened consumer.
Throughout Pioneer's history, we have believed in the importance of active
management. In periods of market volatility, we believe that the value of active
management is even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using proprietary research,
careful risk management, and a long-term perspective. Our ongoing goal is to
produce compelling returns consistent with the stated objectives of our
investment products, and with our shareowners' expectations. We believe our
shareowners can benefit from the experience and tenure of our investment teams
as well as the insights generated from our extensive research process.
2 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
February 29, 2016
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. 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 Long/Short Bond Fund | Semiannual Report | 2/29/16 3
Portfolio Management Discussion | 2/29/16
In the following interview, portfolio managers Thomas Swaney and Benjamin Gord
discuss the factors that influenced Pioneer Long/Short Bond Fund's performance
during the six-month period ended February 29, 2016, as well as their investment
approach in managing the Fund. Mr. Swaney, Head of Alternative Fixed Income,
U.S., a senior vice president, and a portfolio manager at Pioneer (lead
portfolio manager of the Fund since 2013), and Mr. Gord, a vice president and a
portfolio manager at Pioneer, are responsible for the day-to-day management of
the Fund.
Q How did the Fund perform during the six-month period ended February 29,
2016?
A Pioneer Long/Short Bond Fund's Class A shares returned -6.16% at net asset
value during the six-month period ended February 29, 2016, while the Fund's
benchmark, the Bank of America Merrill Lynch (BofA ML) 3-Month U.S.
Treasury-Bill Index, returned 0.06%. During the same period, the average
return of the 306 mutual funds in Lipper's Alternative Credit Focus Funds
category was -3.45%, and the average return of the 537 mutual funds in
Morningstar's Non-Traditional Bond Funds category was -2.94%.
Q Can you provide an overview of the Fund's approach?
A The big picture is that we seek to have the Fund produce an average annual
return that is greater than the return on three-month Treasury bills on an
annualized basis, with volatility lower than one would experience in the
broad equity market. In pursuing this goal, we seek to have the Fund
provide positive returns while trying to minimize the extent of any
negative returns, regardless of market conditions.
Obviously, if we are going to be successful in achieving our objective, the
Fund's returns cannot be overly dependent on the direction of one or more
financial asset categories. In seeking positive returns regardless of
market conditions, we utilize two distinct strategies. One strategy is
"directional," in that we need to be correct about whether a particular
asset price is poised to rise or fall. However, we seek to have the Fund's
performance benefit from both positive and negative returns. This means
that at times we invest the portfolio in some asset categories within the
broad bond market by taking long positions, while taking an unfavorable
view of other asset classes by taking short positions.
The other part of the portfolio utilizes uncorrelated, relative-value-based
trading strategies, in which we do not have to take a stance on whether an
individual market is going to rise or fall overall. Instead, we need to
identify either a segment or security within a market that we believe will
outperform
4 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
versus another market segment or security. We execute these portfolio
investment strategies across several different global financial markets and
many different asset classes. We will seek to "pair" positions, meaning
that the Fund will have a long position in one segment/security of a
particular market, and a short position in another segment/security. We
believe this strategy can allow the Fund to benefit from favorable relative
performance, regardless of the overall direction of that market.
Most importantly, we closely track the risks we have assumed in both
portions of the portfolio and operate within an overall "risk budget,"
which is based on our goal of largely avoiding negative returns over a
12-month period (full fiscal year).
Q Can you discuss the investment strategies that had the biggest effects on
the Fund's benchmark-relative performance during the six-month period ended
February 29, 2016?
A The Fund underperformed the BofA ML Index during the period, with the vast
majority of the negative returns attributable to positions within the
relative value, or market neutral, portion of the portfolio.
In that vein, the portfolio's long/short relative-value-based strategy,
under which we pair a long or short position in an individual security with
an opposing position, detracted from relative results over the entire
six-month timeframe. (Long/Short positioning involves taking long, or
bought positions in fixed-income/equity securities in anticipation that
they will increase in value, and taking short, or sold positions in fixed-
income/equities in anticipation that they will decrease in value.) An
example of a long/short trade that did not turn out well for the Fund was a
pairing of a short position in electronics retailer Best Buy with a long
position in the broader market (in five-year securities). Conversely, a
long/short trade that performed well over the six-month period was one
where we tried to take advantage of a technically driven price decline,
going long Frontier Communications, a domestic telecommunications company.
One thematic trade that detracted from the Fund's results involved taking
long portfolio exposures to energy-related issuers of higher credit
quality, while shorting non-energy names. We executed the trade because we
expected the price of oil to stabilize following the sharp declines already
experienced since roughly mid-2014. However, the price of oil continued to
slide over the six-month period, and energy credits lagged as a result,
causing the Fund's position to decline in value.
Another relative value-based strategy that detracted from the Fund's
performance during the period involved holding a long portfolio of short-
maturity corporate credits (generally one year or less) priced at levels
suggesting the market was overestimating the risk of default, while
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 5
attempting to hedge out the impact of the broader market's performance.
While most of the shorter-term securities had positive returns over the
six- month period, a handful of long positions underperformed, resulting in
losses for this particular strategy. Within this strategy, one trade that
detracted from relative performance was a long position in Abengoa, a
Spanish infrastructure company. An example of a trade that generated
positive returns within the same strategy was going long on Glencore, a
European metals company. We believed that Glencore's bond prices had
overshot to the downside in the wake of commodity-price weakness, given the
company's overall financial flexibility.
On the directional side of the portfolio, the most significant detractor
from the Fund's results was a position designed to benefit from any rebound
in the performance of European high-yield corporate bonds. We anticipated
that high-yield bond valuations would benefit from stepped-up European
Central Bank (ECB) efforts to stimulate growth, following a poor response
to the ECB's December announcement regarding planned asset purchases.
However, credit sentiment and high-yield valuations were undermined in
early 2016 by an escalation of concerns about the banking sector in Europe,
as Deutsche Bank reported losses.
Finally, the Fund's thematic long/short value currency trades contributed
to performance during the period. In particular, being short the Swedish
krona versus the U.S. dollar, long the Australian dollar versus the New
Zealand dollar, and long the Mexican peso versus the Canadian dollar.
Q Please discuss the role of derivatives in implementing the Fund's
investment approach during the six-month period ended February 29, 2016.
A We implement virtually all of the portfolio's strategies via derivatives,
and so the Fund's performance will always be affected by derivatives
trading. For instance, when we want to short U.S. Treasuries, we will do so
mainly by selling Treasury futures or sometimes by buying "put" options. (A
"put" option is a contractual agreement that gives the contract owner the
right, but not the obligation, to sell a security at a pre-determined,
fixed price for a certain period of time, regardless of the current market
price of that security.)
Similarly, in the currency sleeve of the Fund, we use forwards and options
to gain the desired exposures. With respect to credit markets, where there
are no liquid futures contracts, we may use credit default swaps to manage
the portfolio's exposures. In other situations, we utilize instruments such
as interest-rate or inflation swaps to implement our strategies.
6 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
Q What is your assessment of the current macroeconomic climate and the
investment opportunities it may present?
A At present, we are cautious about taking risks with respect to market
direction, due to a number of significant uncertainties affecting the
global economy.
A potential slowdown in China's economy, paired with the possibility of the
Chinese government's providing stimulus to rattle markets; the
effectiveness of the ECB's and Bank of Japan's stimulus policies; volatile
oil prices and their effect on the global economy; the uncertain pace of
interest-rate hikes by the U.S. Federal Reserve; and the potential impact
of a strong U.S. dollar on both domestic equity valuations and overseas
debtors are among the issues dominating current market sentiment.
Against this backdrop, we foresee only relatively slow global economic
growth, and believe the environment of heightened market volatility will
persist as investors react to the flow of news and economic data. As a
result, we expect to look principally to relative-value trades as a
potential source of return for the Fund.
We continue to see relatively few directional investment opportunities in
the fixed-income markets. Viewed in isolation, credit spreads have widened
to reasonably attractive levels. However, the elevated price volatility has
diminished the attractiveness of the spreads on a risk-adjusted basis.
(Credit spreads are commonly defined as the differences in yield between
Treasuries and other types of fixed-income securities with similar
maturities.) That said, we plan to remain active in evaluating any
directional opportunities created by market swings.
Going forward, we will continue to seek to identify investment
opportunities that emerge as market reactions overshoot developments on
various macroeconomic fronts.
Note to Shareholders: Effective June 1, 2015, Pioneer Long/Short Global Bond
Fund was renamed Pioneer Long/Short Bond Fund. In addition, the investment
policy to allocate at least 40% of the Fund's assets in non-U.S. securities was
eliminated. The Fund's investment objectives and overall strategy did not
change.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 7
Please refer to the Schedule of Investments on pages 17-26 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity, and heightened
uncertainty. These conditions may continue, recur, worsen, or spread.
The Fund may invest in derivative securities, such as options, futures, inverse
floating-rate obligations, and swaps, among others, which can be illiquid, may
disproportionately increase losses, and have a potentially large impact on the
performance of the Fund.
The Fund may take short positions, which involves leverage of its assets and
presents additional risks.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the Fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund employs leverage, which increases the volatility of investment returns
and subjects the Fund to magnified losses.
Investments in fixed-income securities involve interest rate, credit, inflation,
and reinvestment risks.
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.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investments in high-yield or lower-rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. 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.
The securities issued by U.S. Government sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
The Fund may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
8 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
The Fund may invest in event-linked bonds and other insurance-linked securities.
The return of principal and the payment of interest on insurance-linked
securities are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude.
The Fund may invest in floating-rate loans; the value of collateral, if any,
securing a floating-rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
The Fund is subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
These risks may increase share price volatility.
There is no assurance that these and other strategies used by the Fund will be
successful. Please see the prospectus for a more complete discussion of the
Fund's risks.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
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 opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 9
Portfolio Summary | 2/29/16
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)(#)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Securities 64.9%
Temporary Cash Investment 11.8%
U.S. Corporate Bonds 10.8%
International Corporate Bonds 6.0%
Asset Backed Securities 2.6%
Collateralized Mortgage Obligations 2.5%
U.S. Preferred Stocks 1.4%
(#) The chart does not include all of the Fund's derivative investments. For
information regarding the Fund's derivative investments, see the Portfolio
Management Discussion, the Schedule of Investments and the Notes to
Financial Statements.
10 Largest Holdings
(As a percentage of total long-term holdings)*
1. U.S. Treasury Bills, 3/31/16 7.57%
--------------------------------------------------------------------------------
2. U.S. Treasury Note, Floating Rate Note, 1/31/18 6.05
--------------------------------------------------------------------------------
3. U.S. Treasury Note, Floating Rate Note, 1/31/17 6.05
--------------------------------------------------------------------------------
4. U.S. Treasury Note, Floating Rate Note, 7/31/16 6.05
--------------------------------------------------------------------------------
5. U.S. Treasury Note, Floating Rate Note, 4/30/16 6.05
--------------------------------------------------------------------------------
6. U.S. Treasury Note, Floating Rate Note, 10/31/16 6.05
--------------------------------------------------------------------------------
7. U.S. Treasury Note, Floating Rate Note, 4/30/17 6.04
--------------------------------------------------------------------------------
8. U.S. Treasury Bills, 3/17/16 5.96
--------------------------------------------------------------------------------
9. U.S. Treasury Bills, 3/24/16 5.77
--------------------------------------------------------------------------------
10. U.S. Treasury Note, Floating Rate Note, 10/31/17 5.67
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
Due to the exclusion of derivatives, the list may not represent the Fund's
market exposures. See the Portfolio Management Discussion, the Schedule of
Investments and the Notes to Financial Statements. 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.
10 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
Prices and Distributions |2/29/16
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/29/16 8/31/15
--------------------------------------------------------------------------------
A $9.18 $9.95
--------------------------------------------------------------------------------
C $9.13 $9.87
--------------------------------------------------------------------------------
Y $9.21 $9.97
--------------------------------------------------------------------------------
Distributions per Share: 9/1/15-2/29/16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.1589 $ -- $ --
--------------------------------------------------------------------------------
C $0.1011 $ -- $ --
--------------------------------------------------------------------------------
Y $0.1537 $ -- $ --
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bank of America Merrill Lynch (BofA ML) 3-Month US Treasury Bill Index is an
unmanaged market index of U.S. Treasury securities maturing in 90 days, that
assumes reinvestment of all income. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 12-14.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 11
Performance Update | 2/29/16 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Long/Short Bond Fund at public
offering price during the periods shown, compared to that of the Bank of America
Merrill Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
Net Public BofA ML
Asset Offering 3-Month
Value Price U.S. Treasury
Period (NAV) (POP) Bill Index
--------------------------------------------------------------------------------
Life of Class
(12/30/13) -2.16% -4.21% 0.05%
1 Year -7.00 -11.16 0.08
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.35% 1.55%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month US
Bond Fund Treasury Bill Index
12/13 $9,550 $10,000
2/14 $9,551 $10,001
2/15 $9,797 $10,004
2/16 $9,110 $10,012
Call 1-800-225-6292 or visit us.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 the contractual expense limitation currently in
effect through January 1, 2017, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Long/Short Bond Fund | Semiannual Report | 2/29/16
Performance Update | 2/29/16 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Long/Short Bond Fund during the
periods shown, compared to that of the Bank of America Merrill Lynch (BofA ML)
3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life of Class
(12/30/13) -2.90% -2.90% 0.05%
1 Year -7.70 -7.70 0.08
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.10% 2.30%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month US
Bond Fund Treasury Bill Index
12/13 $10,000 $10,000
2/14 $ 9,990 $10,001
2/15 $10,167 $10,004
2/16 $ 9,383 $10,012
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. 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 the contractual expense limitation currently in
effect through January 1, 2017, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Long/Short Bond Fund | Semiannual Report | 2/29/16 13
Performance Update | 2/29/16 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Long/Short Bond Fund during the
periods shown, compared to that of the Bank of America Merrill Lynch (BofA ML)
3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
Net BofA ML
Asset 3-Month
Value U.S. Treasury
Period (NAV) Bill Index
--------------------------------------------------------------------------------
Life of Class
(12/30/13) -1.96% 0.05%
1 Year -6.94 0.08
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.08% 1.30%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Long/Short BofA ML 3-month US
Bond Fund Treasury Bill Index
12/13 $5,000,000 $5,000,000
2/14 $5,000,000 $5,000,363
2/15 $5,147,724 $5,001,901
2/16 $4,790,415 $5,005,768
Call 1-800-225-6292 or visit us.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 net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2017, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Long/Short Bond Fund | Semiannual Report | 2/29/16
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 Long/Short Bond Fund
Based on actual returns from September 1, 2015, through February 29, 2016.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 9/1/15 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $ 938.40 $ 935.10 $ 939.00
on 2/29/16
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 7.47 $ 11.07 $ 6.27
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.55%,
2.30%, and 1.30%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period multiplied by
182/366 (to reflect the one half year period).
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 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 Long/Short Bond Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2015, through February 29, 2016.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 9/1/15 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,017.16 $1,013.43 $1,018.40
on 2/29/16
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 7.77 $ 11.51 $ 6.52
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.55%,
2.30%, and 1.30%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period multiplied by
182/366 (to reflect the one half year period).
16 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
Schedule of Investments | 2/29/16 (unaudited)
------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 1.2%
DIVERSIFIED FINANCIALS -- 1.2%
Investment Banking & Brokerage -- 1.2%
18,500 7.12 Morgan Stanley, Floating Rate Note (Perpetual) $ 520,405
------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $519,941) $ 520,405
------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 2.8%
BANKS -- 0.1%
Thrifts & Mortgage Finance -- 0.1%
39,418 Icon Brand Holdings LLC, 4.229%, 1/26/43 (144A) $ 36,994
-----------
Total Banks $ 36,994
------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.7%
Asset Management & Custody Banks -- 2.7%
630,000 RMAT 2015-1 LLC, 5.0%, 7/27/20 (Step) (144A) $ 618,634
629,957 VOLT XXXVII LLC, 4.375%, 7/25/45 (Step) (144A) 605,209
-----------
$ 1,223,843
-----------
Total Diversified Financials $ 1,223,843
------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $1,283,494) $ 1,260,837
------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 2.7%
BANKS -- 2.7%
Thrifts & Mortgage Finance -- 2.7%
280,000 3.21 Citigroup Commercial Mortgage Trust 2014-GC23
REMICS, Floating Rate Note, 7/12/47 (144A) $ 165,117
490,000 5.81 COMM 2007-C9 Mortgage Trust, Floating Rate
Note, 12/10/49 (144A) 447,825
47,274 5.23 Credit Suisse First Boston Mortgage Securities
Corp., Floating Rate Note, 12/17/40 47,187
123,421 4.94 GS Mortgage Securities Corp II Series 2005-GG4,
Floating Rate Note, 7/10/39 114,082
200,000 JP Morgan Chase Commercial Mortgage
Securities Trust 2006-CIBC16, 5.623%, 5/12/45 192,499
55,000 5.48 ML-CFC Commercial Mortgage Trust 2006-3,
Floating Rate Note, 7/12/46 54,869
195,000 Wells Fargo Commercial Mortgage Trust
2010-C1, 4.0%, 11/18/43 (144A) 167,123
-----------
$ 1,188,702
-----------
Total Banks $ 1,188,702
------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $1,271,239) $ 1,188,702
------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 17
Schedule of Investments | 2/29/16 (unaudited) (continued)
------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 17.9%
ENERGY -- 4.5%
Oil & Gas Drilling -- 2.9%
1,280,000 Transocean, Inc., 5.55%, 12/15/16 $ 1,267,200
------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 1.6%
720,000 Petrobras Global Finance BV, 3.5%, 2/6/17 $ 706,500
-----------
Total Energy $ 1,973,700
------------------------------------------------------------------------------------------------
MATERIALS -- 4.4%
Metal & Glass Containers -- 1.4%
650,000 Beverage Packaging Holdings Luxembourg II SA,
5.625%, 12/15/16 (144A) $ 649,188
------------------------------------------------------------------------------------------------
Steel -- 3.0%
1,335,000 Glencore Funding LLC, 1.7%, 5/27/16 (144A) $ 1,321,650
-----------
Total Materials $ 1,970,838
------------------------------------------------------------------------------------------------
BANKS -- 4.4%
Diversified Banks -- 4.4%
515,000 6.50 Bank of America Corp., Floating Rate Note,
10/23/49 $ 525,300
515,000 5.90 Citigroup, Inc., Floating Rate Note (Perpetual) 489,384
515,000 6.62 Credit Agricole SA, Floating Rate Note
(Perpetual) (144A) 453,753
515,000 6.50 ING Groep NV, Floating Rate Note, 12/29/49 466,397
-----------
$ 1,934,834
-----------
Total Banks $ 1,934,834
------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Other Diversified Financial Services -- 0.1%
INR 3,700,000 European Bank for Reconstruction & Development,
6.0%, 3/3/16 $ 54,250
-----------
Total Diversified Financials $ 54,250
------------------------------------------------------------------------------------------------
INSURANCE -- 1.7%
Reinsurance -- 1.7%
250,000 7.17 Caelus Re, Ltd., Floating Rate Note,
4/7/17 (Cat Bond) (144A) $ 253,525
250,000 4.67 Kilimanjaro Re, Ltd., Floating Rate Note,
4/30/18 (Cat Bond) (144A) 246,525
250,000 4.75 Residential Reinsurance 2012, Ltd., Floating Rate
Note, 12/6/16 (Cat Bond) (144A) 249,950
-----------
$ 750,000
-----------
Total Insurance $ 750,000
------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.8%
Wireless Telecommunication Services -- 2.8%
1,265,000 Sprint Communications, Inc., 6.0%, 12/1/16 $ 1,255,512
-----------
Total Telecommunication Services $ 1,255,512
------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $8,094,474) $ 7,939,134
------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 69.1%
1,000,000 Federal Home Loan Bank Discount Notes,
3/2/16 (c) $ 999,992
150,000 Federal Home Loan Bank Discount Notes,
3/21/16 (c) 149,977
300,000 Federal Home Loan Bank Discount Notes,
3/4/16 (c) 299,993
2,500,000 U.S. Treasury Bills, 3/17/16 (c) 2,499,758
2,420,000 U.S. Treasury Bills, 3/24/16 (c) 2,419,639
3,175,000 U.S. Treasury Bills, 3/31/16 (c) 3,174,336
1,110,978 U.S. Treasury Inflation Indexed Bonds,
1.375%, 2/15/44 1,200,971
2,535,000 0.40 U.S. Treasury Note, Floating Rate Note, 1/31/17 (d) 2,535,507
2,535,000 0.37 U.S. Treasury Note, Floating Rate Note, 10/31/16 (d) 2,535,061
2,380,000 0.49 U.S. Treasury Note, Floating Rate Note, 10/31/17 (d) 2,378,824
2,535,000 0.39 U.S. Treasury Note, Floating Rate Note, 4/30/16 2,535,190
2,535,000 0.39 U.S. Treasury Note, Floating Rate Note, 4/30/17 (d) 2,534,014
2,535,000 0.39 U.S. Treasury Note, Floating Rate Note, 7/31/16 2,535,411
2,230,000 0.40 U.S. Treasury Note, Floating Rate Note, 7/31/17 2,227,632
2,535,000 0.60 U.S. Treasury Note, Floating Rate Note, 1/31/18 2,536,680
-----------
$30,562,985
------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $30,494,646) $30,562,985
------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENT -- 12.7%
REPURCHASE AGREEMENT -- 12.7%
5,600,000 $5,600,000 RBC Capital Markets LLC, 0.27%,
dated 2/29/16 plus accrued interest on 3/1/16
collateralized by the following:
$2,230,528 Freddie Mac Giant, 3.00-4.00%,
7/1/44-2/1/46
$225,173 Federal Home Loan Mortgage Corp.,
2.209-2.444%, 3/1/40-2/1/46
$200,896 Federal National Mortgage Association
(ARM), 2.011-4.865%, 9/1/33-11/1/46
$3,055,404 Federal National Mortgage Association,
3.5-4.5%, 6/1/28-2/1/46 $ 5,600,000
------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $5,600,000) $ 5,600,000
------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 19
Schedule of Investments | 2/29/16 (unaudited) (continued)
---------------------------------------------------------------------------------------------------
Number of Expiration
Contracts Description Counterparty Strike Price Date Value
---------------------------------------------------------------------------------------------------
PUT OPTIONS PURCHASED -- 1.0%
104 S&P500 EMINI Citibank NA $1,610 4/15/16 $ 21,580
110 S&P500 EMINI Citibank NA 1,410 6/17/16 34,100
110 S&P500 EMINI Citibank NA 1,710 6/17/16 159,500
104 S&P500 EMINI Citibank NA 1,910 4/15/16 245,960
-----------
$ 461,140
---------------------------------------------------------------------------------------------------
TOTAL PUT OPTIONS PURCHASED
(Premiums paid $686,998) $ 461,140
---------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 107.4%
(Cost $47,950,792) (a) $47,533,203
---------------------------------------------------------------------------------------------------
PUT OPTIONS WRITTEN -- (0.7)%
(104) S&P500 EMINI Citibank NA $1,810 4/15/16 $ (110,760)
(110) S&P500 EMINI Citibank NA 1,610 6/17/16 (95,700)
(110) S&P500 EMINI Citibank NA 1,510 6/17/16 (57,750)
(104) S&P500 EMINI Citibank NA 1,710 4/15/16 (48,360)
-----------
$ (312,570)
---------------------------------------------------------------------------------------------------
TOTAL PUT OPTIONS WRITTEN
(Premiums received $(530,421)) $ ( 312,570)
---------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- (6.7)% $(2,979,949)
---------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $44,240,684
===================================================================================================
(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 February 29, 2016, the value of these securities
amounted to $5,215,493 or 11.8% of total net assets.
(Cat Bond) Catastrophe or Event Linked Bond. At February 29, 2016, the
value of these securities amounted to $750,000, or 1.7% of total net
assets. See Notes to Financial Statements -- Note 1J.
(Perpetual) Security with no stated maturity date.
(Step) Bond issued with an initial coupon rate which converts to a higher
rate at a later date.
REMICS Real Estate Mortgage Investment Conduits.
ARM Adjustable Rate Mortgage.
(a) At February 29, 2016, the net unrealized depreciation on investments
based on cost for federal income tax purposes of $47,956,437 was as
follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost $ 111,883
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (535,117)
---------
Net unrealized depreciation $(423,234)
=========
(b) Debt obligation with a variable interest rate. Rate shown is rate at
end of period.
(c) Security issued with a zero coupon. Income is earned through
accretion of discount.
(d) All or a portion of this security has been pledged in connection with
open futures and swap contracts.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
INR Indian Rupee
The accompanying notes are an integral part of these financial statements.
20 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 29, 2016 were as follows:
--------------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------------
Long-Term U.S. Government Securities $11,256,864 $5,525,791
Other Long-Term Securities $ 8,767,660 $8,065,195
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
-----------------------------------------------------------------------------------------------------------
Notional Obligation Expiration Premiums Unrealized
Principal ($) Exchange Entity/Index Coupon Date (Received) Appreciation
-----------------------------------------------------------------------------------------------------------
(734,400) Chicago Markit CDX North 5.00% 12/20/18 $(145,411) $ 36,831
Mercentile America High
Exchange Yield Index
(1,483,500) Chicago Markit CDX North 5.00% 12/20/16 (88,417) 44,211
Mercentile America High
Exchange Yield Index
(27,410,000) Chicago Markit CDX North 5.00% 12/20/20 (312,830) 290,792
Mercentile America High
Exchange Yield Index
EUR (1,352,083) Chicago Markit iTraxx 5.00% 6/20/19 (196,916) 81,038
Mercentile Europe Crossover
Exchange Index
-----------------------------------------------------------------------------------------------------------
Total $(743,574) $ 452,872
===========================================================================================================
NOTE: Principal amounts are denominated in U.S. dollars unless
otherwise noted:
EUR Euro
CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
-------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
-------------------------------------------------------------------------------------------------------------
(187,500) Barclays Morgan Stanley 1.00% 12/20/20 $ (1,303) $ 2,096
Bank Plc
(165,000) Barclays Morgan Stanley 1.00% 12/20/20 (899) 2,015
Bank Plc
(850,000) Barclays Republic of Turkey 1.00% 12/20/20 62,906 7,147
Bank Plc
(825,000) Barclays Republic of Turkey 1.00% 12/20/20 61,462 6,531
Bank Plc
EUR (630,000) Goldman Sachs Barclays Bank Plc 1.00% 12/20/20 77,671 (29,328)
International
EUR (630,000) Goldman Sachs HSBC Holdings Plc 1.00% 12/20/20 71,217 (30,776)
International
(335,200) Goldman Sachs MBIA, Inc. 5.00% 12/20/20 97,208 40,491
International
EUR (1,450,000) Goldman Sachs Norske 5.00% 9/20/17 779,624 (150,662)
International Skogindustrier ASA
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 21
Schedule of Investments | 2/29/16 (unaudited) (continued)
CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION (continued)
-------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
-------------------------------------------------------------------------------------------------------------
(187,500) JPMorgan Bank of America 1.00% 12/20/20 $ (1,866) $ 2,215
Chase Bank NA Corp.
(202,500) JPMorgan Bank of America 1.00% 12/20/20 (1,810) 2,187
Chase Bank NA Corp.
(187,500) JPMorgan Citigroup, Inc. 1.00% 12/20/20 (1,116) 1,205
Chase Bank NA
(202,500) JPMorgan Citigroup, Inc. 1.00% 12/20/20 (901) 997
Chase Bank NA
EUR (450,000) JPMorgan Credit Agricole S.A. 1.00% 12/20/20 (5,672) 6,062
Chase Bank NA
EUR (445,000) JPMorgan ING Groep N.V. 1.00% 12/20/20 (7,934) 2,747
Chase Bank NA
-------------------------------------------------------------------------------------------------------------
Total $1,128,587 $(137,073)
=============================================================================================================
NOTE: Principal amounts are denominated in U.S. dollars unless otherwise
noted:
EUR Euro
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
-------------------------------------------------------------------------------------------------------------
Net
Unrealized
Notional Obligation Credit Expiration Premiums Appreciation
Principal ($)(1) Exchange Entity/Index Coupon Rating(2) Date (Paid) (Depreciation)
-------------------------------------------------------------------------------------------------------------
645,000 Chicago Markit CDX North 5.00% BBB+ 12/20/17 $ (31,605) $ (60,250)
Mercentile America
Exchange Investment
Grade Index
400,000 Chicago Markit CDX North 5.00% BBB+ 12/20/17 (14,500) (47,464)
Mercentile America
Exchange Investment
Grade Index
EUR 1,250,000 Chicago Markit iTraxx 1.00% BBB+ 6/20/19 $ (108,271) $ 27,962
Mercentile Europe index
Exchange
-------------------------------------------------------------------------------------------------------------
Total $ (154,376) $ (79,752)
=============================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer or weighted average of all
the underlying securities of the index.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EUR Euro
The accompanying notes are an integral part of these financial statements.
22 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
------------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Received Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Paid) (Depreciation)
------------------------------------------------------------------------------------------------------------------------
1,410,000 Barclays Frontier 5.00% BB- 12/20/20 $ (76,086) $ 49,570
Bank Plc Communications
Corp.
545,000 Barclays Hovnanian 5.00% B- 12/20/16 (27,250) 8,183
Bank Plc Enterprises, Inc.
280,000 Barclays Hovnanian 5.00% B- 12/20/16 (13,300) 7,043
Bank Plc Enterprises, Inc.
235,000 Barclays iHeartMedia, Inc. 5.00% CCC 12/20/16 (57,575) (13,189)
Bank Plc
365,000 Barclays iHeartMedia, Inc. 5.00% CCC 12/20/16 (109,500) (410)
Bank Plc
1,325,000 Barclays Teck Resources, 5.00% B+ 12/20/16 (44,719) 43,883
Bank Plc Ltd.
540,000 Barclays The McClatchy 5.00% B- 6/20/16 -- 7,838
Bank Plc Co.
485,000 Barclays Toys R Us, Inc. 5.00% B- 3/20/16 (2,425) 6,263
Bank Plc
655,000 Barclays Weatherford 1.00% BB+ 12/20/16 (26,200) (6,730)
Bank Plc International Plc
540,000 Goldman Hovnanian 5.00% B- 12/20/16 (18,900) 8
Sachs Enterprises, Inc.
International
1,080,000 Goldman AK Steel Holding 5.00% B- 12/20/16 (27,000) (13,026)
Sachs Corp.
International
310,000 Goldman AK Steel Holding 5.00% B- 12/20/16 (24,025) 12,536
Sachs Corp.
International
675,000 Goldman Ally Financial Inc. 5.00% BB+ 12/20/20 108,858 (39,887)
Sachs
International
900,000 Goldman Bombardier 5.00% BBB+ 12/20/16 (17,114) 21,644
Sachs Capital, Inc.
International
430,000 Goldman Bombardier 5.00% BBB+ 12/20/16 (1,075) 3,239
Sachs Capital, Inc.
International
825,000 Goldman iHeartMedia, Inc. 5.00% CCC 12/20/16 (45,375) (203,052)
Sachs
International
335,200 Goldman MBIA, Inc. 5.00% A- 12/20/16 (38,548) (19,373)
Sachs
International
EUR 225,000 Goldman Norske 5.00% CC 3/20/16 (4,933) (9,961)
Sachs Skogindustrier ASA
International
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 23
Schedule of Investments | 2/29/16 (unaudited) (continued)
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION (continued)
------------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Received Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Paid) (Depreciation)
------------------------------------------------------------------------------------------------------------------------
EUR 1,450,000 Goldman Norske 5.00% CC 9/20/20 $(1,153,194) $ (111,588)
Sachs Skogindustrier ASA
International
140,000 Goldman Peabody Energy 5.00% D 3/20/16 (10,500) (11,839)
Sachs Corporation
International
650,000 Goldman Petroleo 1.00% B+ 12/20/16 (24,977) 508
Sachs Brasileiro SA
International
450,000 JPMorgan Ally Financial Inc. 5.00% BB+ 12/20/20 57,693 (11,712)
Chase
Bank NA
135,000 JPMorgan Ally Financial Inc. 5.00% BB+ 12/20/20 6,129 7,666
Chase
Bank NA
525,000 Morgan J.C. Penney 5.00% CCC+ 12/20/16 (15,750) 35,145
Stanley Company, Inc.
Capital
Services LLC
820,000 Morgan Sears Holdings 5.00% CCC+ 12/20/16 (22,550) (53,408)
Stanley Corporation
Capital
Services LLC
------------------------------------------------------------------------------------------------------------------------
Total $(1,588,316) $ (290,649)
========================================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer or weighted average of all
the underlying securities of the index.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EUR Euro
INTEREST RATE SWAP AGREEMENTS
------------------------------------------------------------------------------------------------------------------------
Annual Net
Notional Pay / Floating Fixed Expiration Premiums Unrealized
Principal ($) Counterparty Receive Rate Rate Date Paid Depreciation
------------------------------------------------------------------------------------------------------------------------
(442,126) JPMorgan Receive LIBOR USD 1.819% 8/7/19 $ 2 $ (12,876)
Chase 3 Month
Bank NA
(850,473) JPMorgan Receive LIBOR USD 2.202% 5/6/25 7 (55,617)
Chase 3 Month
Bank NA
------------------------------------------------------------------------------------------------------------------------
Total $ 9 $ (68,493)
========================================================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
TOTAL RETURN SWAP AGREEMENTS
------------------------------------------------------------------------------------------------------------------------
Obligation
Notional Pay / Entity/ Expiration Unrealized
Principal ($) Counterparty Receive Index Coupon Date (Depreciation)
------------------------------------------------------------------------------------------------------------------------
8,665,000 JPMorgan Pay iBoxx USD Liquid LIBOR USD 3/20/16 $ (194,246)
Chase Bank NA High Yield Index 3 Month
8,665,000 JPMorgan Pay iBoxx USD Liquid LIBOR USD 3/20/16 (180,151)
Chase Bank NA High Yield Index 3 Month
4,335,000 JPMorgan Pay iBoxx USD Liquid LIBOR USD 3/20/16 (90,127)
Chase Bank NA High Yield Index 3 Month
4,335,000 JPMorgan Pay iBoxx USD Liquid LIBOR USD 3/20/16 (95,110)
Chase Bank NA High Yield Index 3 Month
------------------------------------------------------------------------------------------------------------------------
Total $ (559,634)
========================================================================================================================
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
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.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of February 29, 2016, in
valuing the Fund's assets:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Preferred Stock $520,405 $ -- $ -- $ 520,405
Asset Backed Securities -- 1,260,837 -- 1,260,837
Collateralized Mortgage
Obligations -- 1,188,702 -- 1,188,702
Corporate Bonds -- 7,939,134 -- 7,939,134
U.S. Government and
Agency Obligations -- 30,562,985 -- 30,562,985
Repurchase Agreement -- 5,600,000 -- 5,600,000
Put Options Purchased 461,140 -- -- 461,140
--------------------------------------------------------------------------------
Total $981,545 $ 46,551,658 $ -- $47,533,203
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 25
Schedule of Investments | 2/29/16 (unaudited) (continued)
----------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------
Other Financial Instruments
Net Unrealized Depreciation on
Credit Default Swaps $ -- $ (54,602) $ -- $ (54,602)
Unrealized Depreciation on
Interest Rate Swaps -- (68,493) -- (68,493)
Unrealized Depreciation on
Total Return Swaps -- (559,634) -- (559,634)
Put Options Written (312,570) -- -- (312,570)
Unrealized Appreciation on
Futures Contracts 5,469 -- -- 5,469
Unrealized Appreciation on Forward
Foreign Currency Contracts -- 46,609 -- 46,609
Unrealized Depreciation on Forward
Foreign Currency Contracts -- (48,168) -- (48,168)
----------------------------------------------------------------------------------
Total Other Financial Instruments $ (307,101) $ (684,288) $ -- $ (991,389)
==================================================================================
During the six months ended February 29, 2016, there were no transfers between
Levels 1, 2 and 3.
The following is a summary of the fair valuation of certain Fund's assets as of
February 29, 2016:
---------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------
Assets:
Foreign currencies, at
value (cost $6,174) $ -- $ 1,882 $ -- $ 1,882
Restricted cash -- 337,299 -- 337,299
Variation margin for centrally
cleared swap contracts -- 101,773 -- 101,773
Liabilities:
Variation margin for futures
contracts (5,469) -- -- (5,469)
---------------------------------------------------------------------------------
Total $ (5,469) $440,954 $ -- $435,485
=================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
Statement of Assets and Liabilities | 2/29/16 (unaudited)
ASSETS:
Investment in securities (cost $42,350,792) $41,933,203
Repurchase agreements (cost $5,600,000) 5,600,000
Total investment in securities (cost $47,950,792) 47,533,203
------------------------------------------------------------------------------------
Foreign currencies, at value (cost $6,174) 1,882
Restricted Cash* 337,299
Receivables --
Fund shares sold 4,704
Swap payments 178,001
Interest 110,333
Due from Pioneer Investment Management, Inc. 38,593
Variation margin for centrally cleared swap contracts 101,773
Unrealized appreciation on forward foreign currency contracts 46,609
Unrealized appreciation on futures contracts 5,469
Other assets 29,039
------------------------------------------------------------------------------------
Total assets $48,386,905
====================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 657,922
Fund shares repurchased 702,341
Trustee fees 1,239
Distributions 8
Due to custodian 263,309
Unrealized depreciation on forward foreign currency contracts 48,168
Net unrealized depreciation on swap contracts 682,729
Variation margin on futures contracts 5,469
Swap contracts, net premiums received 1,357,670
Written options (premiums received $530,421) 312,570
Due to affiliates 38,035
Accrued expenses 76,761
------------------------------------------------------------------------------------
Total liabilities $ 4,146,221
====================================================================================
NET ASSETS:
Paid-in capital $48,871,326
Undistributed net investment income 18,322
Accumulated net realized loss on investments, futures contracts,
written options, swap contracts, and foreign currency transactions (3,778,304)
Net unrealized depreciation on investments (417,589)
Unrealized appreciation on futures contracts 5,469
Net unrealized appreciation on written options 217,851
Net unrealized depreciation on swap contracts (682,729)
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 6,338
------------------------------------------------------------------------------------
Total net assets $44,240,684
====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $11,023,624/1,201,373 shares) $ 9.18
Class C (based on $9,129,100/1,000,055 shares) $ 9.13
Class Y (based on $24,087,960/2,615,231 shares) $ 9.21
MAXIMUM OFFERING PRICE:
Class A ($9.18 / 95.5%) $ 9.61
====================================================================================
The accompanying notes are an integral part of these financial statements.
* Represents restricted cash deposited at the counterparty for derivative
contracts.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 27
Statement of Operations (unaudited)
For the Six Months Ended 2/29/16
INVESTMENT INCOME:
Dividends $ 16,476
Interest 513,761
----------------------------------------------------------------------------------------------------------
Total investment income $ 530,237
----------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 265,891
Distribution fees
Class A 15,981
Class C 46,508
Transfer Agent fees
Class A 665
Class C 380
Class Y 751
Shareholder communications expense 6,258
Administrative expense 15,501
Custodian fees 27,807
Registration fees 25,802
Professional fees 61,267
Printing fees 7,846
Pricing fees 17,092
Fees and expenses of nonaffiliated Trustees 3,604
Miscellaneous 2,162
----------------------------------------------------------------------------------------------------------
Total expenses $ 497,515
----------------------------------------------------------------------------------------------------------
Less fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (105,826)
----------------------------------------------------------------------------------------------------------
Net expenses $ 391,689
----------------------------------------------------------------------------------------------------------
Net investment income $ 138,548
----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS, WRITTEN OPTIONS,
SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (997,414)
Futures contracts (347,611)
Written options 441,762
Swap contracts (1,905,228)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (62,757) $ (2,871,248)
----------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ (664,590)
Futures contracts 6,016
Written options 495,804
Swap contracts (415,416)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (5,601) $ (583,787)
----------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments, futures contracts,
written options, swap contracts, and foreign currency transactions $ (3,455,035)
----------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (3,316,487)
==========================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------
Six Months
Ended
2/29/16 Year Ended
(unaudited) 8/31/15
------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 138,548 $ (15,709)
Net realized gain (loss) on investments, futures contracts, written
options, swap contracts, and foreign currency transactions (2,871,248) 702,871
Change in net unrealized appreciation (depreciation) on
investments, futures contracts, written options, swap
contracts, and foreign currency transactions (583,787) (816,462)
------------------------------------------------------------------------------------------------
Net decrease in net assets resulting
from operations $ (3,316,487) $ (129,300)
------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.16 and $0.21 per share, respectively) $ (225,972) $ (183,685)
Class C ($0.10 and $0.16 per share, respectively) (99,820) (139,321)
Class Y ($0.15 and $0.23 per share, respectively) (471,932) (194,215)
------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (797,724) $ (517,221)
------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS: (a)(b)
Net proceeds from sale of shares $ 3,554,269 $28,019,541
Reinvestment of distributions 508,569 517,221
Cost of shares repurchased (7,589,063) (1,507,006)
------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ (3,526,225) $27,029,756
------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (7,640,436) $26,383,235
NET ASSETS:
Beginning of period $ 51,881,120 $25,497,885
------------------------------------------------------------------------------------------------
End of period $ 44,240,684 $51,881,120
------------------------------------------------------------------------------------------------
Undistributed net investment income $ 18,322 $ 677,498
================================================================================================
(a) At February 29, 2016, PIM owned 53.7% of the value of the outstanding
shares of Pioneer Long/Short Bond Fund.
(b) At February 29, 2016, Pioneer Asset Allocation Trust owned 29.5% of the
value of outstanding shares of Pioneer Long/Short Bond Fund.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 29
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------
Six Months Six Months
Ended Ended Year Year
2/29/16 2/29/16 Ended Ended
Shares Amount 8/31/15 8/31/15
(unaudited) (unaudited) Shares Amount
------------------------------------------------------------------------------------
Class A
Shares sold 144,271 $ 1,396,920 572,122 $ 5,771,154
Reinvestment of distributions 24,298 225,972 18,675 183,683
Less shares repurchased (282,005) (2,568,576) (131,947) (1,316,466)
------------------------------------------------------------------------------------
Net increase (decrease) (113,436) $ (945,684) 458,850 $ 4,638,371
====================================================================================
Class C
Shares sold 20,722 $ 195,879 131,285 $ 1,318,030
Reinvestment of distributions 10,780 99,820 14,202 139,323
Less shares repurchased (5,159) (48,039) (11,518) (113,947)
------------------------------------------------------------------------------------
Net increase 26,343 $ 247,660 133,969 $ 1,343,406
====================================================================================
Class Y
Shares sold 202,014 $ 1,961,470 2,074,561 $20,930,357
Reinvestment of distributions 19,590 182,777 19,737 194,215
Less shares repurchased (536,595) (4,972,448) (7,689) (76,593)
------------------------------------------------------------------------------------
Net increase (decrease) (314,991) $ (2,828,201) 2,086,609 $21,047,979
====================================================================================
The accompanying notes are an integral part of these financial statements.
30 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
Financial Highlights
------------------------------------------------------------------------------------------------
Six Months
Ended
2/29/16 Year Ended 12/30/13
(unaudited) 8/31/15 to 8/31/14
------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.95 $ 10.05 $ 10.00
------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.03(a) $ 0.08 $ (0.02)
Net realized and unrealized gain (loss)
on investments (0.64) 0.03 0.07
------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.61) $ 0.11 $ 0.05
------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.16) $ (0.21) $ --
------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.77) $ (0.10) $ 0.05
------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.18 $ 9.95 $ 10.05
================================================================================================
Total return* (6.16)% 1.14% 0.50%***
Ratio of net expenses to average net assets 1.55%** 1.55% 1.55%**
Ratio of net investment income (loss) to
average net assets 0.54%** 0.12% (0.27)%**
Portfolio turnover rate 75%** 176% 65%**
Net assets, end of period (in thousands) $11,024 $13,076 $ 8,604
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for fees
paid indirectly:
Total expenses to average net assets 2.00%** 2.31% 2.74%**
Net investment income (loss) to average net assets 0.09%** (0.64)% (1.46)%**
================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 31
Financial Highlights (continued)
------------------------------------------------------------------------------------------------
Six Months
Ended
2/29/16 Year Ended 12/30/13
(unaudited) 8/31/15 to 8/31/14
------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.87 $ 10.00 $ 10.00
------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01)(a)(b) $ (0.02) $ (0.07)
Net realized and unrealized gain (loss)
on investments (0.63) 0.05 0.07
------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.64) $ 0.03 $ --
------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.10) $ (0.16) $ --
------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.74) $ (0.13) $ --
------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.13 $ 9.87 $ 10.00
================================================================================================
Total return* (6.49)% 0.34% 0.00%***
Ratio of net expenses to average net assets 2.30%** 2.30% 2.30%**
Ratio of net investment income (loss) to
average net assets (0.21)%** (0.51)% (1.03)%**
Portfolio turnover rate 75%** 176% 65%**
Net assets, end of period (in thousands) $ 9,129 $ 9,606 $ 8,399
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for
fees paid indirectly:
Total expenses to average net assets 2.71%** 3.06% 3.48%**
Net investment income (loss) to average net assets (0.61)%** (1.27)% (2.21)%**
================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) The amount shown for a share outstanding does not correspond with net
investment income on the Statement of Operations for the period due to
timing of the sales and repurchase of shares.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
------------------------------------------------------------------------------------------------
Six Months
Ended
2/29/16 Year Ended 12/30/13
(unaudited) 8/31/15 to 8/31/14
------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.97 $ 10.07 $ 10.00
------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.04(b) $ 0.15 $ (0.00)(a)
Net realized and unrealized gain (loss)
on investments (0.65) (0.02) 0.07
------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.61) $ 0.13 $ 0.07
------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.15) $ (0.23) $ --
------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.76) $ (0.10) $ 0.07
------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.21 $ 9.97 $ 10.07
================================================================================================
Total return* (6.10)% 1.32% 0.70%***
Ratio of net expenses to average net assets 1.30%** 1.30% 1.30%**
Ratio of net investment income (loss) to
average net assets 0.79%** 0.14% (0.02)%**
Portfolio turnover rate 75%** 176% 65%**
Net assets, end of period (in thousands) $24,088 $29,200 $ 8,494
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for
fees paid indirectly:
Total expenses to average net assets 1.71%** 2.04% 2.48%**
Net investment income (loss) to average net assets 0.39%** (0.60)% (1.20)%**
================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges.
** Annualized.
*** Not Annualized.
(a) Amount rounds to less than $0.01 or $(0.01) per share.
(b) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 33
Notes to Financial Statements | 2/29/16 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Long/Short Bond Fund, (formerly, Pioneer Long/Short Global Bond Fund)
(the Fund), is one of five portfolios comprising Pioneer Series Trust V, 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
Fund's investment objective is to seek total return.
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 commenced operations on
December 30, 2013. 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.
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:
A. Security Valuation
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.
34 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
Fixed income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed income securities and/or other
factors. Valuations may be supplemented by dealers and other sources, as
required. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service.
Event-linked bonds or catastrophe bonds are valued at the bid price
obtained from an independent third party pricing service. Other insurance
linked securities (including sidecars, collateralized reinsurance and
industry loss warranties) may be valued at the bid price obtained from an
independent pricing service, or through a third party using a pricing
matrix, insurance industry valuation models, or other fair value methods or
techniques to provide an estimated value of the instrument.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealer association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Futures contracts are generally valued at the closing settlement price
established by the exchange on which they are traded.
Options contracts are generally valued at the mean between the last bid and
ask prices on the principal exchange where they are traded. Over-the-
counter ("OTC") options and options on swaps ("swaptions") are valued using
prices supplied by independent pricing services, which consider such
factors as market prices, market events, quotations from one or more
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 35
brokers, Treasury spreads, yields, maturities and ratings, or may use a
pricing matrix or other fair value methods or techniques to provide an
estimated value of the security or instrument.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate, in each case provided by a third party pricing service.
Contracts whose forward settlement date falls between two quoted days are
valued by interpolation.
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 by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. PIM's fair
valuation team is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair values on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
At February 29, 2016, there were no securities valued using fair value
methods (other than securities valued using prices supplied by independent
pricing services, broker-dealers or using a third party insurance industry
pricing model).
B. Investment Income and Transactions
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
36 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
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.
Transaction are recorded as of trade date. Gains and losses on sales of
investments are calculated on the identified cost method for both financial
reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency 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 the market price of those securities but are
included with the net realized and unrealized gain or loss on investments.
D. Futures Contracts
The Fund may enter into futures transactions in order to attempt 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. All futures contracts entered into by the Fund 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. The amount of cash deposited with the broker as collateral at
February 29, 2016 was $316,981 and is recorded within "Restricted Cash" on
the Statement of Assets and Liabilities. 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 appreciation or depreciation. When the contract is
closed, the Fund realizes a gain or loss equal to the difference between
the opening and closing value of the contract as well as any fluctuation in
foreign currency exchange rates where applicable. The use of futures
contracts involves, to varying degrees, elements of market, interest rate,
currency exchange rate and counterparty risks, which may exceed the amount
recognized by the Fund. Changes in
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 37
value of the contracts may not directly correlate to the changes in value
of the underlying securities. The average value of contracts open during
the six months ended February 29, 2016 was $(3,395,769).
At February 29, 2016, open futures contracts were as follows:
------------------------------------------------------------------------------------
Number of
Contracts Settlement Unrealized
Type Counterparty Long/(Short) Month/Year Value Appreciation
------------------------------------------------------------------------------------
U.S. 10
Year Note Citigroup NA (10) 6/16 $(1,305,156) $1,719
U.S. Ultra
Bond Citigroup NA (10) 6/16 $(1,731,563) $3,750
------------------------------------------------------------------------------------
Total $(3,036,719) $5,469
====================================================================================
E. 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 appreciation or depreciation
is recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
F. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no federal income tax provision is required. As
of August 31, 2015, the Fund did not accrue any interest or penalties with
respect to uncertain tax positions, which, if applicable, would be recorded
as an income tax expense in the Statement of Operations.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
38 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the fiscal year ended August 31, 2015 was as follows:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $517,221
---------------------------------------------------------------------------
Total $517,221
===========================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at August 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 797,526
Capital loss carryforward (864,948)
Unrealized depreciation (449,009)
---------------------------------------------------------------------------
Total $(516,431)
===========================================================================
The difference between book-basis and tax-basis net unrealized depreciation
is attributable to the tax deferral of losses on wash sales, adjustments
relating to catastrophe bonds, the mark to market of forwards, swaps,
options and future contracts.
G. 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 $41 in underwriting commissions on the sale of Class A
shares during the six months ended February 29, 2016.
H. 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 Fund's transfer agent, 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).
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 39
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.
I. Risks
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. Investments in the
Fund are subject to possible loss due to the financial failure of
underlying issues and their ability to meet their debt obligations. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
J. Insurance Linked Securities (ILS)
Event-linked bonds are floating rate debt obligations for which the return
of principal and the payment of interest are contingent on the
non-occurrence of a pre-defined "trigger" event, such as a hurricane or an
earthquake of a specific magnitude. The trigger event's magnitude may be
based on losses to a company or industry, industry indexes or readings of
scientific instruments, or may be based on specified actual losses. If a
trigger event, as defined within the terms of an event-linked bond occurs,
the Fund may lose a portion or all of its accrued interest and/or principal
invested in such event-linked bond. The Fund is entitled to receive
principal and interest payments so long as no trigger event occurs of the
description and magnitude specified by the instrument. In addition to the
specified trigger events, event-linked bonds may expose the Fund to other
risks, including but not limited to issuer (credit) default, adverse
regulatory or jurisdictional interpretations and adverse tax consequences.
The Fund's investments in ILS may include special purpose vehicles ("SPVs")
or similar instruments structured to comprise a portion of a reinsurer's
catastrophe-oriented business, known as quota share instruments (sometimes
referred to as reinsurance sidecars), or to provide reinsurance relating to
specific risks to insurance or reinsurance companies through a
collateralized instrument, known as collateralized reinsurance. Structured
reinsurance investments also may include industry loss warranties ("ILWs"),
are subject to the same risks as event-linked bonds. In addition, because
quota share instruments represent an interest in a basket of underlying
reinsurance contracts, the Fund has limited transparency into the
individual underlying contracts and therefore must rely upon the risk
assessment and sound underwriting practices of the issuer. Accordingly, it
may be more difficult for
40 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
PIM to fully evaluate the underlying risk profile of the Fund's investment
in quota share instruments and therefore place the Fund's assets at greater
risk of loss than if PIM had more complete information.
Quota share instruments and other structured reinsurance instruments
generally will be considered illiquid securities by the Fund. These
securities may be difficult to purchase, sell or unwind. Illiquid
securities also may be difficult to value. If the Fund is forced to sell an
illiquid asset, the Fund may be forced to sell at a loss.
K. Credit Default Swaption Writing
The Fund may write put and covered call swaptions on portfolio securities
in order to attempt to hedge against changes in the value of portfolio
securities or to seek to increase total return. When a swaption is written,
the Fund receives a premium and becomes obligated to purchase or sell the
underlying security at a fixed price upon the exercise of the swaption.
When the Fund writes a swaption, an amount equal to the premium received by
the Fund is recorded as a liability and is subsequently adjusted to the
current value of the swaption written. Premiums received from writing
swaptions 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 swaption is exercised, the premium is added
to the proceeds from the sale of the underlying security in determining
whether the Fund has realized a gain or loss. The Fund as writer of a
swaption bears the market risk of an unfavorable change in the price of the
security underlying the written swaption. The Fund had no outstanding
written credit default swaption contracts at February 29, 2016.
The average value of written swaption contracts open during the six months
ended February 29, 2016 was $(14,792).
Transactions in written swaptions for the six months ended February 29,
2016 are summarized as follows:
------------------------------------------------------------------------------
Premiums
Number of Received/
Contracts Paid
------------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options opened (9,603,000) (77,557)
Options exercised -- --
Options closed -- --
Options expired 9,603,000 77,557
------------------------------------------------------------------------------
Options outstanding at end of period -- $ --
==============================================================================
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 41
L. Credit Default Swaption Purchased
The Fund may purchase put and call swaptions in order to attempt to hedge
against changes in the value of portfolio securities or to seek to increase
total return. Purchased call and put swaptions entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time. Upon the purchase of a call or put swaption, the
premium paid by the Fund is included in the Statement of Assets and
Liabilities as an investment. All premiums are marked-to-market daily, and
any unrealized gains or losses are recorded in the Fund's financial
statements. As the purchaser of an index swaption, the Fund has the right
to receive a cash payment equal to any depreciation in the value of the
index below the strike price of the swaption (in the case of a put) or
equal to any appreciation in the value of the index over the strike price
of the swaption (in the case of a call) as of the valuation date of the
swaption. Premiums paid for purchased calls and put swaptions which have
expired are treated as realized losses on investments in the Statement of
Operations. Upon the exercise or closing of a purchased put swaption, the
premium is offset against the proceeds on the sale of the underlying
security or financial instrument in order to determine the realized gain or
loss on investments. Upon the exercise or closing of a purchased call
swaption, the premium is added to the cost of the security or financial
instrument. The risk associated with purchasing swaptions is limited to the
premium originally paid. The average value of contracts open during the six
months ended February 29, 2016 was $12,962. There were no outstanding
purchased credit default swaptions open at February 29, 2016.
M. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price,
upon the exercise of the option. 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 value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the
underlying security in determining whether the Fund has realized a gain or
loss. The Fund as writer of an option bears the market risk of an
unfavorable change in the price of the security underlying the written
option.
42 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
The average value of written options contracts open during the six months
ended February 29, 2016 was $(302,809). Written call and put option
contracts outstanding at period end are listed at the end of the Fund's
schedule of investments.
The Fund held four written put option contracts that were open at February
29, 2016. If the put options were exercised at February 29, 2016, the
maximum amount the Fund would have been required to pay was $530,421.
---------------------------------------------------------------------------
Number of Premiums
Contracts Received
---------------------------------------------------------------------------
Options outstanding at beginning of period (192) $(237,087)
Options opened (636) (772,966)
Options exercised 400 479,632
Options closed -- --
Options expired -- --
---------------------------------------------------------------------------
Options outstanding at end of period (428) $(530,421)
===========================================================================
N. Options Purchased
The Fund may purchase put and call options in order to seek to increase
total return. Purchased call and put options entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time. Upon the purchase of a call or put option, the
premium paid by the Fund is included in the Statement of Assets and
Liabilities as an investment. All premiums are marked-to-market daily, and
any unrealized appreciation or depreciation are recorded in the Fund's
financial statements. As the purchaser of an index option, the Fund has the
right to receive a cash payment equal to any depreciation in the value of
the index below the strike price of the option (in the case of a put) or
equal to any appreciation in the value of the index over the strike price
of the option (in the case of a call) as of the valuation date of the
option. Premiums paid for purchased calls and put options which have
expired are treated as realized losses on investments in the Statement of
Operations. Upon the exercise or closing of a purchased put option, the
premium is offset against the proceeds on the sale of the underlying
security or financial instrument in order to determine the realized gain or
loss on investments. Upon the exercise or closing of a purchased call
option, the premium is added to the cost of the security or financial
instrument. The risk associated with purchasing options is limited to the
premium originally paid.
The average value of purchased options contracts open during the six months
ended February 29, 2016 was $400,307. Purchased option contracts
outstanding at period end are listed within the Fund's schedule of
investments.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 43
O. Credit Default Swaps
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 sell
or buy credit default swap contracts to seek to increase the Fund's income,
or to attempt to hedge the risk of default on portfolio securities. A
credit default swap index is used to hedge risk or take a position on a
basket of credit entities or indices. As a seller of protection, the Fund
would be required to pay the notional (or other agreed-upon) value of the
referenced debt obligation to the counterparty in the event of a default by
a U.S. or foreign corporate issuer of a debt obligation, which would likely
result in a loss to the Fund. In return, the Fund would receive from the
counterparty a periodic stream of payments during the term of the contract
provided that no event of default occurred. The maximum exposure of loss to
the seller would be the notional value of the credit default swaps
outstanding. If no default occurs, the Fund would keep the stream of
payments and would have no payment obligation. The Fund may also buy credit
default swap contracts in order to hedge against the risk of default of
debt securities, in which case the Fund would function as the counterparty
referenced above.
When the Fund enters into a credit default swap contract, 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
made by the Fund, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
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 appreciation or depreciation in the Statement of
Assets and Liabilities. 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 in
the Statement of Operations.
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.
44 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as variation margin on
centrally cleared swaps on the Statement of Assets and Liabilities.
The amount of cash deposited with a broker as collateral at February 29,
2016 was $151,229 and is recorded within "Restricted Cash" on the Statement
of Assets and Liabilities.
Open credit default swap contracts at February 29, 2016 are listed in the
Schedule of Investments. The average value of credit default swap contracts
open during the six months ended February 29, 2016 was $(1,271,639).
P. Interest Rate Swap Contracts
The Fund may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance its income. Pursuant to the
interest rate swap agreement, the Fund negotiates with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly
basis.
Periodic payments received or paid by the Fund are recorded as realized
gains or losses in the Statement of Operations. Interest rate swap
contracts are marked-to-market daily using valuations supplied by
independent sources and the change in value, if any, is recorded as
unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Interest rate swap contracts are subject to counterparty risk
and movements in interest rates.
Open interest rate swap contracts at February 29, 2016 are listed in the
Schedule of Investments. The average value of interest swap contracts open
during the six months ended February 29, 2016 was $(27,260).
Q. Total Return Swap Contracts
The Fund may enter into a total return swap to attempt to manage and/or
gain exposure to a security or market. Pursuant to a total return swap
agreement, the Fund negotiates with a counterparty to exchange a periodic
stream of payments. One party makes payments based on the total return of a
reference asset (such as a security or a basket of securities or securities
index), and in return receives fixed or floating rate interest payments.
The total
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 45
return of the reference asset typically includes appreciation or
depreciation on the reference asset, plus any interest or dividend
payments. To the extent that the total return of the reference asset
exceeds or falls short of the offsetting interest rate obligation, the Fund
will receive a payment from or make a payment to the counterparty.
Total return swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made are recorded as realized
gains or losses in the Statement of Operations. Total return swap contracts
are subject to counterparty risk and unanticipated movements in value of
exchange rates, interest rates, securities or the index.
Open total return swap contracts at February 29, 2016 are listed in the
Schedule of Investments. The average value of swap contracts open during
the six months ended February 29, 2016 was $(274,402).
R. Repurchase Agreements
Repurchase agreements are arrangements under which the Fund purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Fund at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Fund. The securities purchased serve as
the Fund's collateral for the obligation of the counterparty to repurchase
the securities. The value of the 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, PIM is responsible for determining
that the value of the collateral remains at least equal to the repurchase
price. In the event of a default by the counterparty, the Fund is entitled
to sell the securities, but the Fund may not be able to sell them for the
price at which they were purchased, thus causing a loss to the Fund.
Additionally, if the counterparty becomes insolvent, there is some risk
that the Fund will not have a right to the securities, or the immediate
right to sell the securities.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at an annual rate of 1.05% of
the average daily net assets of the Fund up to $1 billion and 0.95% of the
Fund's average daily net assets over $1 billion of the Fund. For the six months
ended February 29, 2016, the effective management fee was equivalent to 1.05% of
the Fund's average daily net assets.
46 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
PIM has contractually agreed to limit ordinary operating expenses (ordinary
operating expenses means all fund expenses other than extraordinary expenses,
such as litigation, taxes, brokerage commissions and acquired fund fees and
expenses) to the extent required to reduce Fund expenses to 1.55%, 2.30% and
1.30% of the average daily net assets attributable to Class A, Class C and Class
Y shares, respectively. These expense limitations are in effect through January
1, 2017. Fees waived and expenses reimbursed during the six months ended
February 29, 2016 are reflected on the Statement of Operations. Fees and
expenses of other investment companies in which the Fund may invest are not
included in the expense limitations noted above. 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
$34,293 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 29, 2016.
3. Transfer Agent
Prior to November 2, 2015, Pioneer Investment Management Shareholder Services,
Inc. (PIMSS), a wholly owned indirect subsidiary of UniCredit, provided
substantially all transfer agent and shareowner services to the Fund at
negotiated rates.
Effective November 2, 2015, Boston Financial Data Services serves as the
transfer agent to the Fund at negotiated rates.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings, outgoing phone calls and omnibus
relationship contracts. For the six months ended February 29, 2016, such
out-of-pocket expenses by class of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 3,127
Class C 355
Class Y 2,776
--------------------------------------------------------------------------------
Total $ 6,258
================================================================================
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 47
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $2,451 in transfer agent fees and out-of-pocket reimbursements
payable to the transfer agent at February 29, 2016.
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 services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $1,291 in distribution fees payable to
PFD at February 29, 2016.
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 12 months of purchase. Redemptions of Class C shares within 12 months 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 shares. Proceeds from the CDSC are paid to PFD. For the
six months ended February 29, 2016, there were no CDSCs paid to PFD.
5. Forward Foreign Currency Contracts
During the six months ended February 29, 2016, 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
value of forward foreign currency contracts open during the six months ended
February 29, 2016 was $(3,068,486).
48 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
--------------------------------------------------------------------------------------------------
Currency Currency In Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
--------------------------------------------------------------------------------------------------
EUR (Euro) (121,877) USD 137,212 Citibank NA 3/16/16 $ 4,432
EUR (Euro) (298,853) USD 328,522 JPMorgan 3/16/16 2,935
Chase Bank NA
KRW (South (702,205,138) USD 580,527 JPMorgan 4/21/16 14,664
Korean Won) Chase Bank NA
NZD (New (296,618) AUD 275,029 JPMorgan 5/23/16 1,136
Zealand (Australian Chase Bank NA
Dollar) Dollar)
JPY (Japanese (36,079,011) USD 322,206 JPMorgan 5/25/16 1,511
Yen) Chase Bank NA
AUD (Australian (267,039) USD 192,340 JPMorgan 5/25/16 2,459
Dollar) Chase Bank NA
ZAR (South (1,828,142) USD 118,110 JPMorgan 5/25/16 4,762
African Rand) Chase Bank NA
HUF (83,389,248) USD 298,751 JPMorgan 5/25/16 5,976
(Hungarian Chase Bank NA
Forint)
NZD (New (595,018) USD 395,144 JPMorgan 5/25/16 5,130
Zealand Chase Bank NA
Dollar)
EUR (Euro) (264,485) USD 292,408 JPMorgan 5/25/16 3,604
Chase Bank NA
--------------------------------------------------------------------------------------------------
Total $ 46,609
==================================================================================================
--------------------------------------------------------------------------------------------------
Currency Currency In Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
--------------------------------------------------------------------------------------------------
USD (300,112) EUR (Euro) 265,820 Goldman Sachs 3/16/16 $(10,513)
International
USD (214,336) EUR (Euro) 195,016 Citibank NA 3/16/16 (1,875)
USD (737,112) EUR (Euro) 670,645 JPMorgan 3/16/16 (6,476)
Chase Bank NA
USD (314,333) INR (Indian 21,620,000 Goldman Sachs 4/21/16 (614)
Rupee) International
SGD (407,563) USD 282,929 JPMorgan 4/25/16 (6,470)
(Singapore Chase Bank NA
Dollar)
CAD (623,607) MXN 8,140,254 JPMorgan 4/25/16 (13,946)
(Canadian (Mexican Chase Bank NA
Dollar) Peso)
SEK (Swedish (4,134,278) USD 483,309 JPMorgan 4/25/16 (866)
Krona) Chase Bank NA
CZK (Czech (11,965,251) USD 479,065 Citibank NA 4/25/16 (2,887)
Koruna)
TWD (New (19,615,923) USD 588,978 JPMorgan 5/18/16 (494)
Taiwan Dollar) Chase Bank NA
CAD (Canadian (255,633) USD 185,110 JPMorgan 5/25/16 (4,027)
Dollar) Citibank NA
--------------------------------------------------------------------------------------------------
Total $(48,168)
==================================================================================================
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 49
6. Assets and Liabilities Offsetting
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the trading
of certain OTC derivatives and typically contains, among other things, close-out
and set-off provisions which apply upon the occurrence of event of a default
and/or termination event as defined under the relevant ISDA Master Agreement.
The ISDA Master Agreement may also give a party the right to terminate all
transactions traded under such agreement if, among other things, there is
deterioration in the credit quality of the other party. Upon an event of default
or a termination of the ISDA Master Agreement, the non-defaulting party has the
right to close out all transactions under such agreement and to net amounts owed
under each transaction to determine one net amount payable by one party to the
other. The right to close out and net payments across all transactions under the
ISDA Master Agreement could result in a reduction of the Fund's credit risk to
its counterparty equal to any amounts payable by the Fund under the applicable
transactions, if any. However, the Fund's right to setoff may be restricted or
prohibited by the bankruptcy or insolvency laws of the particular jurisdiction
to which a specific ISDA counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collateral pledged for the benefit of the Fund and/or
counterparty is held in segregated accounts by the Fund's custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Fund's collateral obligations, if any, will be
reported separately in the Statement of Assets and Liabilities as "Restricted
cash." Securities pledged by the Fund as collateral, if any, are identified as
such in the Schedule of Investments.
50 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Fund
as of February 29, 2016.
---------------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
---------------------------------------------------------------------------------------------------
Barclays Bank Plc $140,569 $ (20,329) $ -- $ -- $120,240
Citibank NA 4,432 (4,432) -- -- --
Goldman Sachs International 78,426 (78,426) -- -- --
JPMorgan Chase Bank NA 65,256 (65,256) -- -- --
Morgan Stanley Capital
Services LLC 35,145 (35,145) -- -- --
---------------------------------------------------------------------------------------------------
Total $323,828 $ (203,588) $ -- $ -- $120,240
===================================================================================================
----------------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
----------------------------------------------------------------------------------------------------
Barclays Bank Plc $ (20,329) $ 20,329 $ -- $ -- $ --
Citibank NA (8,789) 4,432 -- -- (4,357)
Goldman Sachs International (630,619) 78,426 552,193 -- --
JPMorgan Chase Bank NA (668,091) 65,256 602,835 -- --
Morgan Stanley Capital
Services LLC (53,408) 35,145 -- -- (18,263)
----------------------------------------------------------------------------------------------------
Total $ (1,381,236) $203,588 $1,155,028 $ -- $ (22,620)
====================================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
7. Additional Disclosures about Derivative Instruments and Hedging Activities:
The Fund's use of derivatives subjects it to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 51
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at February 29,
2016 was as follows:
-----------------------------------------------------------------------------------------
Statement of Foreign
Assets and Interest Credit Exchange Equity Commodity
Liabilities Rate Risk Risk Rate Risk Risk Risk
-----------------------------------------------------------------------------------------
Assets
Unrealized appreciation
of forward foreign
currency contracts $ -- $ -- $ 46,609 $ -- $ --
Unrealized appreciation
of futures contracts 5,469 -- -- 312,570 --
-----------------------------------------------------------------------------------------
Total Value $ 5,469 $ -- $ 46,609 $ 312,570 $ --
=========================================================================================
Liabilities
Unrealized depreciation
of forward foreign
currency contracts $ -- $ -- $ (48,168) $ -- $ --
Net unrealized
depreciation on
swap contracts (628,127) (54,602) -- -- --
Written options -- -- -- -- --
-----------------------------------------------------------------------------------------
Total Value $ (628,127) $ (54,602) $ (48,168) $ -- $ --
=========================================================================================
52 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at February 29, 2016 was as follows:
-----------------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Operations Rate Risk Risk Rate Risk Risk Risk
-----------------------------------------------------------------------------------------
Net realized gain
(loss) on
Futures contracts $ (347,611) $ -- $ -- $ -- $ --
Written options -- 77,557 -- 364,205 --
Swap contracts -- (1,905,228) -- -- --
Forward foreign
currency contracts* -- -- (73,593) -- --
-----------------------------------------------------------------------------------------
Total Value $ (347,611) $ (1,827,671) $ (73,593) $ 364,205 $ --
=========================================================================================
Change in net
unrealized
appreciation
(depreciation) on
Futures contracts $ 6,016 $ -- $ -- $ -- $ --
Written options -- -- -- 495,804 --
Swap contracts (617,355) 201,939 -- -- --
Forward foreign
currency contracts* -- -- (9,822) -- --
-----------------------------------------------------------------------------------------
Total Value $ (611,339) $ -- $ (9,822) $ 495,804 $ --
=========================================================================================
* Included in the amount shown on the Statement of Operations as forward
foreign currency contracts and other assets and liabilities denominated in
foreign currencies.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 53
ADDITIONAL INFORMATION (unaudited)
The Board of Trustees of the Fund has approved the elimination of the Fund's
current policy normally to invest at least 40% of the net assets in securities
of assets located outside of the United States. In connection with the
elimination of this policy, the Fund was renamed Pioneer Long/Short Bond Fund.
These changes went into effect on June 1, 2015.
Pioneer Investment Management, Inc. (the "Adviser"), each fund's investment
adviser, is currently an indirect, wholly owned subsidiary of UniCredit S.p.A.
("UniCredit"). On November 11, 2015, UniCredit announced that it signed a
binding master agreement with Banco Santander and affiliates of Warburg Pincus
and General Atlantic (the "Private Equity Firms") with respect to Pioneer
Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as previously announced by UniCredit, will establish a holding
company, with the name Pioneer Investments, to be owned by UniCredit (50%) and
the Private Equity Firms (50% between them). The holding company will control
Pioneer's U.S. operations, including PIM. The holding company also will own
66.7% of Pioneer's and SAM's combined operations outside the U.S., while Banco
Santander will own directly the remaining 33.3% stake. The closing of the
Transaction is expected to happen in 2016, subject to certain regulatory and
other approvals.
Under the Investment Company Act of 1940, completion of the Transaction will
cause each fund's current investment advisory agreement with PIM to terminate.
Accordingly, each fund's Board of Trustees will be asked to approve a new
investment advisory agreement. If approved by the Board, each fund's new
investment advisory agreement will be submitted to the shareholders of the fund
for their approval.
54 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Long/Short Bond Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in January 2015 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2015 and July
2015. Supplemental contract review materials were provided to the Trustees in
September 2015. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year, and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings, in connection with the review of the Fund's
investment advisory agreement.
In March 2015, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In July 2015,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2015.
At a meeting held on September 15, 2015, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees considered various
factors that they determined were relevant, including the factors described
below. The Trustees did not identify any single factor as the controlling factor
in determining to approve the renewal of the agreement.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 55
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed PIM's investment approach
for the Fund and its research process. The Trustees considered the resources of
PIM and the personnel of PIM who provide investment management services to the
Fund. They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. The Trustees considered the non-investment resources and
personnel of PIM involved in PIM's services to the Fund, including PIM's
compliance and legal resources and personnel. The Trustees noted the substantial
attention and high priority given by PIM's senior management to the Pioneer fund
complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the advisory
agreement.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party. In all
quintile rankings referred to below, first quintile is most favorable to the
Fund's shareowners.
56 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the fifth quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoint in the management fee schedule and the
reduced fee rate above a certain asset level. The Trustees noted the investment
management expertise and resources required to implement the Fund's complex
investment strategy. The Trustees considered that the expense ratio of the
Fund's Class A shares for the most recent fiscal year was in the fifth quintile
relative to its Morningstar peer group and in the fourth quintile relative to
its Strategic Insight peer group, in each case for the comparable period. The
Trustees noted that PIM was waiving fees and/or reimbursing expenses in order to
limit the ordinary operating expenses of the Fund. The Trustees noted the Fund's
relatively small asset size compared to most of the other funds in its peer
groups, and that the Fund has not been able to take advantage of the economies
of scale afforded by greater asset size. The Trustees considered the impact of
transfer agency, sub-transfer agency, and other non-management fee expenses on
the expense ratios of the Fund. The Trustees noted that they separately review
the Fund's transfer agency, sub-transfer agency and intermediary arrangements.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Fund's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Fund is subject. The Trustees
also considered the different entrepreneurial risks associated with PIM's
management of the Fund and Pioneer's management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 57
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoint in the management fee schedule. The Trustees recognize that
economies of scale are difficult to identify and quantify, and that, among other
factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Fund. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons including reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its
58 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
relationship with the Funds were reasonable and their consideration of the
advisory agreement between the Fund and PIM and the fees thereunder were
unaffected by Pioneer's possible receipt of any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16 59
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data 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 us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Ms. Monchak is a non-voting Advisory Trustee.
60 Pioneer Long/Short Bond Fund | Semiannual Report | 2/29/16
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:
--------------------------------------------------------------------------------
Pioneer Funds
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: us.pioneerinvestments.com
This report must be preceded or 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.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2016 Pioneer Investments 27667-02-0416
Pioneer Long/Short
Opportunistic
Credit Fund
--------------------------------------------------------------------------------
Semiannual Report | February 29, 2016
--------------------------------------------------------------------------------
Ticker Symbols:
Class A LRCAX
Class C LRCCX
Class Y LRCYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 27
Notes to Financial Statements 34
Approval of Investment Advisory Agreement 55
Trustees, Officers and Service Providers 60
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 1
President's Letter
Dear Shareowner,
Over the past several years, many investors experienced positive returns across
most major asset classes. However, 2015 was a tale of two markets, with
favorable market conditions in the first half of the year, followed by an abrupt
slowdown and increased volatility beginning in August. The global markets were
challenged by significant economic cross-currents in different geographic
regions and industrial sectors. While the U.S. economy gradually improved,
growth slowed in China. Emerging markets struggled following a decline in
commodity prices, especially oil. While lower energy prices are good for the
consumer, there were ripple effects throughout the global economy.
Against this backdrop, the Standard & Poor's 500 Index rose by just 1.4% in
2015, international equity markets were essentially flat, and emerging market
equities fell sharply. Across U.S. fixed-income sectors, U.S. government and
investment-grade corporate bonds were fairly flat for the year, while high-yield
bonds, as measured by the Bank of America Merrill Lynch Master II High Yield
Index, posted a -4.9% total return.
Entering 2016, we see the U.S. economy growing modestly, against an overall
global economic backdrop that remains fragile and points towards structurally
lower growth. As always in a presidential election year, political rhetoric has
the potential to impact U.S. sectors such as health care in 2016. Economies
around the world in both developed and emerging markets are experiencing deep
structural change. Geopolitical instability on many fronts, the rising risk of
policy mistakes, and market liquidity issues all increase the possibility of
sharp swings in asset values. In this environment, financial markets remain
vulnerable to unusual levels of volatility. While divergences among regions and
industries is an important theme, we are generally optimistic about the outlook
for the U.S. economy, which we expect will see continued, positive growth led by
a strengthened consumer.
Throughout Pioneer's history, we have believed in the importance of active
management. In periods of market volatility, we believe that the value of active
management is even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using proprietary research,
careful risk management, and a long-term perspective. Our ongoing goal is to
produce compelling returns consistent with the stated objectives of our
investment products, and with our shareowners' expectations. We believe our
shareowners can benefit from the experience and tenure of our investment teams
as well as the insights generated from our extensive research process.
2 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
February 29, 2016
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. 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 Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 3
Portfolio Management Discussion | 2/29/16
In the following interview, portfolio managers Thomas Swaney and Benjamin Gord
discuss the factors that influenced Pioneer Long/Short Opportunistic Credit
Fund's performance during the six-month period ended February 29, 2016, as well
as their investment approach in managing the Fund. Mr. Swaney, Head of
Alternative Fixed Income, U.S., a senior vice president, and a portfolio manager
at Pioneer (lead portfolio manager of the Fund since 2013), and Mr. Gord, a vice
president and a portfolio manager at Pioneer, are responsible for the day-to-day
management of the Fund.
Q How did the Fund perform during the six-month period ended February 29,
2016?
A Pioneer Long/Short Opportunistic Credit Fund's Class A shares returned
-7.37% at net asset value during the six-month period ended February 29,
2016, while the Fund's benchmark, the Bank of America Merrill Lynch (BofA
ML) 3-Month U.S. Treasury-Bill Index, returned 0.06%. During the same
period, the average return of the 306 mutual funds in Lipper's Alternative
Credit Focus Funds category was -3.45%, and the average return of the 537
mutual funds in Morningstar's Non-Traditional Bond Funds category was
-2.94%.
Q Can you provide an overview of the Fund's approach?
A The big picture is that we seek to have the Fund produce an average annual
return that is greater than the return on three-month Treasury bills on an
annualized basis, with volatility lower than one would experience in the
broad equity market. In pursuing this goal, we seek to have the Fund
provide positive returns while trying to minimize the extent of any
negative returns, regardless of market conditions.
Obviously, if we are going to be successful in achieving our objective, the
Fund's returns cannot be overly dependent on the direction of one or more
financial asset categories. In seeking positive returns regardless of
market conditions, we utilize two distinct strategies. One strategy is
"directional," in that we need to be correct about whether a particular
asset price is poised to rise or fall. However, we seek to have the Fund's
performance benefit from both positive and negative returns. This means
that at times we invest the
4 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
portfolio in some asset categories within the broad bond market by taking
long positions, while taking an unfavorable view of other asset classes by
taking short positions.
The other part of the portfolio utilizes uncorrelated, relative-value-based
trading strategies, in which we do not have to take a stance on whether an
individual market is going to rise or fall overall. Instead, we need to
identify either a segment or security within a market that we believe will
outperform versus another market segment or security. We execute these
portfolio investment strategies across several different global financial
markets and many different asset classes. We will seek to "pair" positions,
meaning that the Fund will have a long position in one segment/security of
a particular market, and a short position in another segment/security. We
believe this strategy can allow the Fund to benefit from favorable relative
performance, regardless of the overall direction of that market.
Most importantly, we closely track the risks we have assumed in both
portions of the portfolio and operate within an overall "risk budget,"
which is based on our goal of largely avoiding negative returns over a
12-month period (full fiscal year).
Q Can you discuss the investment strategies that had the biggest effects on
the Fund's benchmark-relative performance during the six-month period ended
February 29, 2016?
A The Fund underperformed the BofA ML Index during the period, with the vast
majority of the negative returns attributable to positions within the
relative value, or market neutral, portion of the portfolio.
In that vein, the portfolio's long/short relative-value-based strategy,
under which we pair a long or short position in an individual security with
an opposing position, detracted from relative results over the entire
six-month timeframe. (Long/Short positioning involves taking long, or
bought positions in fixed-income/equity securities in anticipation that
they will increase in value, and taking short, or sold positions in fixed-
income/equities in anticipation that they will decrease in value.) An
example of a long/short trade that did not turn out well for the Fund was a
pairing of a short position in electronics retailer Best Buy with a long
position in the broader market (in five-year securities). Conversely, a
long/short trade that performed well over the six-month period was one
where we tried to take advantage of a technically driven price decline,
going long Frontier Communications, a domestic telecommunications company.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 5
One thematic trade that detracted from the Fund's results involved taking
long portfolio exposures to energy-related issuers of higher credit
quality, while shorting non-energy names. We executed the trade because we
expected the price of oil to stabilize following the sharp declines already
experienced since roughly mid-2014. However, the price of oil continued to
slide over the six-month period, and energy credits lagged as a result,
causing the Fund's position to decline in value.
Another relative value-based strategy that detracted from the Fund's
performance during the period involved holding a long portfolio of short-
maturity corporate credits (generally one year or less) priced at levels
suggesting the market was overestimating the risk of default, while
attempting to hedge out the impact of the broader market's performance.
While most of the shorter-term securities had positive returns over the
six-month period, a handful of long positions underperformed, resulting in
losses for this particular strategy. Within this strategy, one trade that
detracted from relative performance was a long position in Abengoa, a
Spanish infrastructure company. An example of a trade that generated
positive returns within the same strategy was going long on Glencore, a
European metals company. We believed that Glencore's bond prices had
overshot to the downside in the wake of commodity-price weakness, given the
company's overall financial flexibility.
On the directional side of the portfolio, the most significant detractor
from the Fund's results was a position designed to benefit from any rebound
in the performance of European high-yield corporate bonds. We anticipated
that high-yield bond valuations would benefit from stepped-up European
Central Bank (ECB) efforts to stimulate growth, following a poor response
to the ECB's December announcement regarding planned asset purchases.
However, credit sentiment and high-yield valuations were undermined in
early 2016 by an escalation of concerns about the banking sector in Europe,
as Deutsche Bank reported losses.
Finally, the Fund's thematic long/short value currency trades contributed
to performance during the period. In particular, being short the Swedish
krona versus the U.S. dollar, long the Australian dollar versus the New
Zealand dollar, and long the Mexican peso versus the Canadian dollar.
6 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Q Please discuss the role of derivatives in implementing the Fund's
investment approach during the six-month period ended February 29, 2016.
A We implement virtually all of the portfolio's strategies via derivatives,
and so the Fund's performance will always be affected by derivatives
trading. For instance, when we want to short U.S. Treasuries, we will do so
mainly by selling Treasury futures or sometimes by buying "put" options. (A
"put" option is a contractual agreement that gives the contract owner the
right, but not the obligation, to sell a security at a pre-determined,
fixed price for a certain period of time, regardless of the current market
price of that security.)
Similarly, in the currency sleeve of the Fund, we use forwards and options
to gain the desired exposures. With respect to credit markets, where there
are no liquid futures contracts, we may use credit default swaps to manage
the portfolio's exposures. In other situations, we utilize instruments such
as interest-rate or inflation swaps to implement our strategies.
Q What is your assessment of the current macroeconomic climate and the
investment opportunities it may present?
A At present, we are cautious about taking risks with respect to market
direction, due to a number of significant uncertainties affecting the
global economy.
A potential slowdown in China's economy, paired with the possibility of the
Chinese government's providing stimulus to rattle markets; the
effectiveness of the ECB's and Bank of Japan's stimulus policies; volatile
oil prices and their effect on the global economy; the uncertain pace of
interest-rate hikes by the U.S. Federal Reserve; and the potential impact
of a strong U.S. dollar on both domestic equity valuations and overseas
debtors are among the issues dominating current market sentiment.
Against this backdrop, we foresee only relatively slow global economic
growth, and believe the environment of heightened market volatility will
persist as investors react to the flow of news and economic data. As a
result, we expect to look principally to relative-value trades as a
potential source of return for the Fund.
We continue to see relatively few directional investment opportunities in
the fixed-income markets. Viewed in isolation, credit spreads have widened
to reasonably attractive levels. However, the elevated price volatility has
diminished the attractiveness of the spreads on a risk-adjusted basis.
(Credit spreads are commonly defined as the differences in yield between
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 7
Treasuries and other types of fixed-income securities with similar
maturities.) That said, we plan to remain active in evaluating any
directional opportunities created by market swings.
Going forward, we will continue to seek to identify investment
opportunities that emerge as market reactions overshoot developments on
various macroeconomic fronts.
Please refer to the Schedule of Investments on pages 17-26 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity, and heightened
uncertainty. These conditions may continue, recur, worsen, or spread.
The Fund may invest in derivative securities, such as options, futures, inverse
floating-rate obligations, and swaps, among others, which can be illiquid, may
disproportionately increase losses, and have a potentially large impact on the
performance of the Fund.
The Fund may take short positions, which involves leverage of its assets and
presents additional risks.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the Fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund employs leverage, which increases the volatility of investment returns
and subjects the Fund to magnified losses.
Investments in fixed-income securities involve interest rate, credit, inflation,
and reinvestment risks.
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.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investments in high-yield or lower-rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
8 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. 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.
The securities issued by U.S. Government sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
The Fund may invest in mortgage-backed securities, which during times of fluctu-
ating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund may invest in event-linked bonds and other insurance-linked securities.
The return of principal and the payment of interest on insurance-linked
securities are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude.
The Fund may invest in floating-rate loans; the value of collateral, if any,
securing a floating-rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
The Fund is subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
These risks may increase share price volatility.
There is no assurance that these and other strategies used by the Fund will be
successful. Please see the prospectus for a more complete discussion of the
Fund's risks.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
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 opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 9
Portfolio Summary | 2/29/16
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)(#)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Securities 55.5%
Temporary Cash Investment 17.2%
U.S. Corporate Bonds 11.6%
International Corporate Bonds 6.2%
Collateralized Mortgage Obligations 5.1%
Asset Backed Securities 2.9%
U.S. Preferred Stocks 1.5%
(#) The chart does not include all of the Fund's derivative investments. For
information regarding the Fund's derivative investments, see the Portfolio
Management Discussion, the Schedule of Investments and the Notes to
Financial Statements.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)(*)
1. U.S. Treasury Note, Floating Rate Note, 4/30/17 7.04%
--------------------------------------------------------------------------------
2. U.S. Treasury Note, Floating Rate Note, 1/31/17 7.03
--------------------------------------------------------------------------------
3. U.S. Treasury Note, Floating Rate Note, 7/31/16 7.03
--------------------------------------------------------------------------------
4. U.S. Treasury Note, Floating Rate Note, 10/31/16 7.03
--------------------------------------------------------------------------------
5. U.S. Treasury Bills, 3/24/16 6.74
--------------------------------------------------------------------------------
6. U.S. Treasury Note, Floating Rate Note, 4/30/16 6.72
--------------------------------------------------------------------------------
7. U.S. Treasury Bills, 3/17/16 5.33
--------------------------------------------------------------------------------
8. U.S. Treasury Note, Floating Rate Note, 10/31/17 5.32
--------------------------------------------------------------------------------
9. U.S. Treasury Note, Floating Rate Note, 7/31/17 5.12
--------------------------------------------------------------------------------
10. Glencore Funding LLC, 1.7%, 5/27/16 (144A) 3.62
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
Due to the exclusion of derivatives, the list may not represent the Fund's
market exposures. See the Portfolio Management Discussion, the Schedule of
Investments and the Notes to Financial Statements. 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.
10 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Prices and Distributions | 2/29/16
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/29/16 8/31/15
--------------------------------------------------------------------------------
A $8.92 $9.89
--------------------------------------------------------------------------------
C $8.88 $9.82
--------------------------------------------------------------------------------
Y $8.96 $9.91
--------------------------------------------------------------------------------
Distributions per Share: 9/1/15 - 2/29/16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2460 $-- $--
--------------------------------------------------------------------------------
C $0.1781 $-- $--
--------------------------------------------------------------------------------
Y $0.2361 $-- $--
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bank of America Merrill Lynch (BofA ML) 3-month US Treasury Bill Index is an
unmanaged market index of U.S. Treasury securities maturing in 90 days, that
assumes reinvestment of all income. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 12-14.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 11
Performance Update | 2/29/16 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000 invest-
ment made in Class A shares of Pioneer Long/Short Opportunistic Credit Fund at
public offering price during the periods shown, compared to that of the Bank of
America Merrill Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
Net Public BofA ML
Asset Offering 3-Month
Value Price U.S. Treasury
Period (NAV) (POP) Bill Index
--------------------------------------------------------------------------------
Life of Class
(12/30/13) -2.49% -4.53% 0.05%
1 Year -8.02 -12.17 0.08
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.44% 1.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month
Opportunistic Credit Fund US Treasury Bill Index
12/13 $ 9,550 $ 10,000
2/14 $ 9,551 $ 10,001
2/15 $ 9,833 $ 10,004
2/16 $ 9,044 $ 10,012
Call 1-800-225-6292 or visit us.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 the contractual expense limitation currently in
effect through January 1, 2017, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Performance Update | 2/29/16 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C Shares of Pioneer Long/Short Opportunistic Credit
Fund during the periods shown, compared to that of the Bank of America Merrill
Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life of Class
(12/30/13) -3.23% -3.23% 0.05%
1 Year -8.82 -8.82 0.08
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.18% 2.50%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month
Opportunistic Credit Fund US Treasury Bill Index
12/13 $ 10,000 $ 10,000
2/14 $ 9,990 $ 10,001
2/15 $ 10,214 $ 10,004
2/16 $ 9,313 $ 10,012
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. 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 the contractual expense limitation currently in
effect through January 1, 2017, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 13
Performance Update | 2/29/16 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Long/Short Opportunistic Credit
Fund during the periods shown, compared to that of the Bank of America Merrill
Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
Net BofA ML
Asset 3-Month
Value U.S. Treasury
Period (NAV) Bill Index
--------------------------------------------------------------------------------
Life of Class
(12/30/13) -2.26% 0.05%
1 Year -7.90 0.08
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.11% 1.50%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Long/Short BofA ML 3-month
Opportunistic Credit Fund US Treasury Bill Index
12/13 $ 5,000,000 $ 5,000,000
2/14 $ 5,005,000 $ 5,000,363
2/15 $ 5,166,514 $ 5,001,901
2/16 $ 4,758,292 $ 5,005,768
Call 1-800-225-6292 or visit us.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 net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2017, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
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 Long/Short Opportunistic
Credit Fund
Based on actual returns from September 1, 2015, through February 29, 2016.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 9/1/15 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 2/29/16 $ 926.30 $ 922.00 $ 927.50
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 8.14 $ 11.71 $ 6.95
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.70%,
2.45%, and 1.45%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period multiplied by
182/366 (to reflect the one half year period).
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 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 Long/Short Opportunistic Credit
Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2015, through February 29, 2016.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 9/1/15 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 2/29/16 $1,016.41 $1,012.68 $1,017.65
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 8.52 $ 12.26 $ 7.27
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.70%,
2.45%, and 1.45%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period multiplied by
182/366 (to reflect the one half year period).
16 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Schedule of Investments | 2/29/16 (unaudited)
----------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
----------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 1.3%
DIVERSIFIED FINANCIALS -- 1.3%
Investment Banking & Brokerage -- 1.3%
19,000 7.12 Morgan Stanley, Floating Rate Note (Perpetual) $ 534,470
----------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $535,143) $ 534,470
----------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 3.1%
BANKS -- 0.1%
Thrifts & Mortgage Finance -- 0.1%
39,418 Icon Brand Holdings LLC, 4.229%, 1/26/43 (144A) $ 36,994
---------------
Total Banks $ 36,994
----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.0%
Asset Management & Custody Banks -- 3.0%
660,000 RMAT 2015-1 LLC, 5.0%, 7/27/20 (Step) (144A) $ 648,093
659,955 VOLT XXXVII LLC, 4.375%, 7/25/45 (Step) (144A) 634,028
---------------
$ 1,282,121
---------------
Total Diversified Financials $ 1,282,121
----------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $1,342,736) $ 1,319,115
----------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 5.5%
BANKS -- 5.5%
Thrifts & Mortgage Finance -- 5.5%
250,000 5.98 Banc of America Commercial Mortgage Trust 2007-5,
Floating Rate Note, 2/10/51 $ 246,655
300,000 3.21 Citigroup Commercial Mortgage Trust 2014-GC23 REMICS,
Floating Rate Note, 7/12/47 (144A) 176,911
300,000 5.96 COBALT CMBS Commercial Mortgage Trust 2007-C3,
Floating Rate Note, 5/15/46 279,759
47,000 5.96 COBALT CMBS Commercial Mortgage Trust 2007-C3,
Floating Rate Note, 5/15/46 41,459
510,000 5.81 COMM 2007-C9 Mortgage Trust, Floating Rate Note,
12/10/49 (144A) 466,104
47,274 5.23 Credit Suisse First Boston Mortgage Securities Corp.,
Floating Rate Note, 12/17/40 47,187
300,000 5.10 Credit Suisse First Boston Mortgage Securities Corp.,
Floating Rate Note, 8/15/38 282,152
92,613 5.18 EQTY 2014-MZ Mezzanine Trust, Floating Rate Note,
5/10/19 (144A) 92,293
123,421 4.94 GS Mortgage Securities Corp II Series 2005-GG4,
Floating Rate Note, 7/10/39 114,082
138,406 5.86 GS Mortgage Securities Trust 2006-GG6,
Floating Rate Note, 4/10/38 138,315
200,000 JP Morgan Chase Commercial Mortgage Securities
Trust 2006-CIBC16, 5.623%, 5/12/45 192,499
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 17
Schedule of Investments | 2/29/16 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
70,000 5.48 ML-CFC Commercial Mortgage Trust 2006-3,
Floating Rate Note, 7/12/46 $ 69,834
195,000 Wells Fargo Commercial Mortgage Trust 2010-C1,
4.0%, 11/18/43 (144A) 167,123
---------------
$ 2,314,373
---------------
Total Banks $ 2,314,373
----------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $2,400,767) $ 2,314,373
----------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 19.1%
ENERGY -- 4.7%
Oil & Gas Drilling -- 3.1%
1,305,000 Transocean, Inc., 5.55%, 12/15/16 $ 1,291,950
----------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 1.6%
680,000 Petrobras Global Finance BV, 3.5%, 2/6/17 $ 667,250
---------------
Total Energy $ 1,959,200
----------------------------------------------------------------------------------------------------
MATERIALS -- 4.7%
Metal & Glass Containers -- 1.5%
620,000 Beverage Packaging Holdings Luxembourg II SA,
5.625%, 12/15/16 (144A) $ 619,225
----------------------------------------------------------------------------------------------------
Steel -- 3.2%
1,375,000 Glencore Funding LLC, 1.7%, 5/27/16 (144A) $ 1,361,250
---------------
Total Materials $ 1,980,475
----------------------------------------------------------------------------------------------------
BANKS -- 4.7%
Diversified Banks -- 4.7%
530,000 6.50 Bank of America Corp., Floating Rate Note, 10/23/49 $ 540,600
530,000 5.90 Citigroup, Inc., Floating Rate Note (Perpetual) 503,638
530,000 6.62 Credit Agricole SA, Floating Rate Note
(Perpetual) (144A) 466,969
530,000 6.50 ING Groep NV, Floating Rate Note, 12/29/49 479,981
---------------
$ 1,991,188
---------------
Total Banks $ 1,991,188
----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Other Diversified Financial Services -- 0.1%
INR 3,700,000 European Bank for Reconstruction & Development,
6.0%, 3/3/16 $ 54,250
---------------
Total Diversified Financials $ 54,250
----------------------------------------------------------------------------------------------------
INSURANCE -- 1.8%
Reinsurance -- 1.8%
250,000 7.17 Caelus Re, Ltd., Floating Rate Note, 4/7/17 (Cat
Bond) (144A) $ 253,525
250,000 4.67 Kilimanjaro Re, Ltd., Floating Rate Note, 4/30/18
(Cat Bond) (144A) 246,525
The accompanying notes are an integral part of these financial statements.
18 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
----------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
----------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
250,000 4.75 Residential Reinsurance 2012, Ltd., Floating Rate
Note, 12/6/16 (Cat Bond) (144A) $ 249,950
---------------
$ 750,000
---------------
Total Insurance $ 750,000
----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 3.1%
Wireless Telecommunication Services -- 3.1%
1,290,000 Sprint Communications, Inc., 6.0%, 12/1/16 $ 1,280,325
---------------
Total Telecommunication Services $ 1,280,325
----------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $8,177,680) $ 8,015,438
----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 59.4%
1,350,000 Federal Home Loan Bank Discount Notes, 3/2/16 (c) $ 1,349,989
150,000 Federal Home Loan Bank Discount Notes, 3/21/16 (c) 149,977
250,000 U.S. Treasury Bills, 3/10/16 (c) 249,989
2,000,000 U.S. Treasury Bills, 3/17/16 (c) 1,999,806
2,530,000 U.S. Treasury Bills, 3/24/16 (c) 2,529,623
1,025,425 U.S. Treasury Inflation Indexed Bonds, 1.375%, 2/15/44 1,108,487
2,640,000 0.40 U.S. Treasury Note, Floating Rate Note, 1/31/17 (d) 2,640,528
2,640,000 0.37 U.S. Treasury Note, Floating Rate Note, 10/31/16 (d) 2,640,063
2,000,000 0.49 U.S. Treasury Note, Floating Rate Note, 10/31/17 (d) 1,999,012
2,525,000 0.39 U.S. Treasury Note, Floating Rate Note, 4/30/16 2,525,189
2,645,000 0.39 U.S. Treasury Note, Floating Rate Note, 4/30/17 (d) 2,643,971
2,640,000 0.39 U.S. Treasury Note, Floating Rate Note, 7/31/16 2,640,428
1,925,000 0.40 U.S. Treasury Note, Floating Rate Note, 7/31/17 1,922,956
525,000 0.60 U.S. Treasury Note, Floating Rate Note, 1/31/18 525,349
---------------
$ 24,925,367
----------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $24,861,466) $ 24,925,367
----------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENT -- 18.4%
Repurchase Agreement -- 18.4%
7,760,000 $7,760,000 RBC Capital Markets LLC, 0.27%,
dated 2/29/16 plus accrued interest on 3/1/16
collateralized by the following:
$938,066 Freddie Mac Giant, 4.00%, 11/1/43
$57,672 Federal Home Loan Mortgage Corp.,
2.209-2.444%, 3/1/40-2/1/46
$1,587,586 Federal National Mortgage Association
(ARM), 2.011-4.865%, 9/1/33-11/1/46
$5,331,876 Federal National Mortgage Association,
3.5-5.5%, 8/1/40-2/1/46 $ 7,760,000
----------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $7,760,000) $ 7,760,000
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 19
Schedule of Investments | 2/29/16 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Price Date Value
----------------------------------------------------------------------------------------------------
PUT OPTIONS PURCHASED -- 1.1%
104 S&P500 EMINI Citibank NA $1,810 4/15/16 $ 21,580
101 S&P500 EMINI Citibank NA 1,610 6/17/16 31,310
101 S&P500 EMINI Citibank NA 1,510 6/17/16 146,450
104 S&P500 EMINI Citibank NA 1,710 4/15/16 245,960
---------------
$ 445,300
----------------------------------------------------------------------------------------------------
TOTAL PUT OPTIONS PURCHASED
(Premiums paid $650,197) $ 445,300
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 107.9%
(Cost $45,727,989) (a) $ 45,314,063
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Price Date
----------------------------------------------------------------------------------------------------
PUT OPTIONS WRITTEN -- (0.7)%
(104) S&P500 EMINI Citibank NA $1,610 4/15/16 $ (110,760)
(101) S&P500 EMINI Citibank NA 1,410 6/17/16 (87,870)
(101) S&P500 EMINI Citibank NA 1,710 6/17/16 (53,025)
(104) S&P500 EMINI Citibank NA 1,910 4/15/16 (48,360)
---------------
$ (300,015)
----------------------------------------------------------------------------------------------------
TOTAL PUT OPTIONS WRITTEN
(Premiums received $498,381) $ (300,015)
----------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- (7.2)% $ (3,036,575)
----------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 41,977,473
====================================================================================================
(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 February 29, 2016, the value of these securities
amounted to $5,418,990 or 12.9% of total net assets.
(Cat Bond) Catastrophe or Event Linked Bond. At February 29, 2016, the value of
these securities amounted to $750,000, or 1.8% of total net assets.
See Notes to Financial Statements -- Note 1J.
(Perpetual) Security with no stated maturity date.
(Step) Bond issued with an initial coupon rate which converts to a higher
rate at a later date.
REMICS Real Estate Mortgage Investment Conduits.
ARM Adjustable Rate Mortgage.
(a) At February 29, 2016, the net unrealized depreciation on investments
based on cost for federal income tax purposes of $45,727,989 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 120,623
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (534,549)
---------------
Net unrealized depreciation $ (413,926)
===============
The accompanying notes are an integral part of these financial statements.
20 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
(b) Debt obligation with a variable interest rate. Rate shown is rate at
end of period.
(c) Security issued with a zero coupon. Income is earned through
accretion of discount.
(d) All or a portion of this security has been pledged in connection
with open futures and swap contracts.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
INR Indian Rupee
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 29, 2016 were as follows:
----------------------------------------------------------------------------------------
Purchases Sales
----------------------------------------------------------------------------------------
Long-Term U.S. Government Securities $8,351,935 $ 4,284,861
Other Long-Term Securities $8,580,184 $10,252,914
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
----------------------------------------------------------------------------------------------------------------------
Notional Obligation Expiration Premiums Unrealized
Principal ($) Exchange Entity/Index Coupon Date (Received) Appreciation
----------------------------------------------------------------------------------------------------------------------
(1,185,600) Chicago Markit CDX North 5.00% 12/20/18 $ (234,749) $ 59,460
Mercantile America High
Exchange Yield Index
(1,506,500) Chicago Markit CDX North 5.00% 12/20/16 (89,787) 44,896
Mercantile America High
Exchange Yield Index
(26,335,000) Chicago Markit CDX North 5.00% 12/20/20 (301,125) 279,951
Mercantile America High
Exchange Yield Index
EUR (2,704,167) Chicago Markit iTraxx Europe 5.00% 6/20/19 (395,460) 163,703
Mercantile Crossover Index
Exchange
----------------------------------------------------------------------------------------------------------------------
Total $ (1,021,121) $ 548,010
======================================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 21
Schedule of Investments | 2/29/16 (unaudited) (continued)
CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
----------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
----------------------------------------------------------------------------------------------------------------------
(225,000) Barclays Morgan Stanley Co. 1.00% 12/20/20 $ (1,563) $ 2,516
Bank Plc
(135,000) Barclays Morgan Stanley Co. 1.00% 12/20/20 (735) 1,648
Bank Plc
(805,000) Barclays Republic of Turkey 1.00% 12/20/20 59,575 6,768
Bank Plc
EUR (745,000) Barclays Republic of Turkey 1.00% 12/20/20 55,502 5,897
Bank Plc
EUR (595,000) Goldman Sachs Barclays Bank Plc 1.00% 12/20/20 73,356 (27,699)
International
EUR (595,000) Goldman Sachs HSBC Holdings Plc 1.00% 12/20/20 67,260 (29,066)
International
(364,800) Goldman Sachs MBIA Inc. 5.00% 12/20/20 105,792 46,115
International
EUR (1,500,000) Goldman Sachs Norske 5.00% 9/20/17 806,508 (155,857)
International Skogindustrier ASA
(225,000) JPMorgan Bank of 1.00% 12/20/20 (2,239) 2,659
Chase Bank NA America Corp.
(180,000) JPMorgan Bank of 1.00% 12/20/20 (1,609) 1,944
Chase Bank NA America Corp.
(225,000) JPMorgan Citigroup, Inc. 1.00% 12/20/20 (1,339) 1,446
Chase Bank NA
(180,000) JPMorgan Citigroup, Inc. 1.00% 12/20/20 (801) 887
Chase Bank NA
EUR (460,000) JPMorgan Credit Agricole SA 1.00% 12/20/20 (5,798) 6,197
Chase Bank NA
EUR (460,000) JPMorgan ING Groep N.V. 1.00% 12/20/20 (8,202) 2,839
Chase Bank NA
----------------------------------------------------------------------------------------------------------------------
Total $ 1,145,707 $ (133,706)
======================================================================================================================
NOTE: Principal Amounts are denominated in U.S. dollars unless otherwise
noted:
EUR Euro
The accompanying notes are an integral part of these financial statements.
22 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
----------------------------------------------------------------------------------------------------------------------
Net
Unrealized
Notional Obligation Credit Expiration Premiums Appreciation
Principal ($)(1) Exchange Entity/Index Coupon Rating(2) Date (Paid) (Depreciation)
----------------------------------------------------------------------------------------------------------------------
655,000 Chicago Markit CDX 5.00% BBB+ 12/20/17 $ (32,095) $ (61,184)
Mercantile North America
Exchange Investment
Grade Index
400,000 Chicago Markit CDX 5.00% BBB+ 12/20/17 (14,500) (47,520)
Mercantile North America
Exchange Investment
Grade Index
EUR 2,500,000 Chicago Markit iTraxx 1.00% BBB+ 6/20/19 (216,543) 55,924
Mercantile Europe index
Exchange
----------------------------------------------------------------------------------------------------------------------
Total $ (263,138) $ (52,780)
======================================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer or weighted average of all
the underlying securities of the index.
NOTE: Principal Amounts are denominated in U.S. dollars unless otherwise
noted:
EUR Euro
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
----------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Received Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Paid) (Depreciation)
----------------------------------------------------------------------------------------------------------------------
1,335,000 Barclays Frontier 5.00% BB- 12/20/20 $ (72,039) $ 46,933
Bank Plc Communications
Corp.
560,000 Barclays Hovnanian 5.00% B- 12/20/16 (27,922) 8,331
Bank Plc Enterprises Inc.
230,000 Barclays Hovnanian 5.00% B- 12/20/16 (10,925) 2,878
Bank Plc Enterprises Inc.
90,000 Barclays iHeartMedia, 5.00% CCC 12/20/16 (22,050) (5,051)
Bank Plc Inc.
375,000 Barclays iHeartMedia, 5.00% CCC 12/20/16 (112,500) (421)
Bank Plc Inc.
1,230,000 Barclays Teck Resources, 5.00% B+ 12/20/16 (41,512) 40,737
Bank Plc Ltd.
550,000 Barclays The McClatchy 5.00% B- 6/20/16 -- 7,983
Bank Plc Co.
520,000 Barclays Toys R Us, Inc. 5.00% B- 3/20/16 (2,600) 6,715
Bank Plc
620,000 Barclays Weatherford 1.00% BB+ 12/20/16 (24,800) (6,370)
Bank Plc International Plc
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 23
Schedule of Investments | 2/29/16 (unaudited) (continued)
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION (continued)
----------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Received Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Paid) (Depreciation)
----------------------------------------------------------------------------------------------------------------------
1,135,000 Goldman Sachs AK Steel 5.00% B- 12/20/16 $ (28,375) $ (13,689)
International Holding
Corp.
285,000 Goldman Sachs AK Steel 5.00% B- 12/20/16 (22,088) 11,525
International Holding
Corp.
705,000 Goldman Sachs Ally Financial, 5.00% BB+ 12/20/20 113,696 (41,660)
International Inc.
855,000 Goldman Sachs Bombardier 5.00% BBB+ 12/20/16 (16,258) 20,561
International Capital, Inc.
400,000 Goldman Sachs Bombardier 5.00% BBB+ 12/20/16 (1,000) 3,013
International Capital, Inc.
480,000 Goldman Sachs Hovnanian 5.00% B- 12/20/16 (16,800) 7
International Enterprises, Inc.
885,000 Goldman Sachs iHeartMedia, 5.00% CCC 12/20/16 (48,675) (217,819)
International Inc.
364,800 Goldman Sachs MBIA, Inc. 5.00% A- 12/20/16 (41,952) (21,083)
International
EUR 250,000 Goldman Sachs Norske 5.00% CC 3/20/16 (5,481) (11,067)
International Skogindustrier
ASA
EUR 1,500,000 Goldman Sachs Norske 5.00% CC 9/20/20 (1,192,960) (115,436)
International Skogindustrier
ASA
150,000 Goldman Sachs Peabody Energy 5.00% D 3/20/16 (11,250) (12,684)
International Corp.
620,000 Goldman Sachs Petroleo 1.00% B+ 12/20/16 (23,823) 485
International Brasileiro SA
355,000 JPMorgan Ally Financial, 5.00% BB+ 12/20/20 45,513 (9,240)
Chase Bank NA Inc.
135,000 JPMorgan Ally Financial, 5.00% BB+ 12/20/20 6,129 7,666
Chase Bank NA Inc.
525,000 Morgan Stanley J.C. Penney 5.00% CCC+ 12/20/16 (15,750) 35,145
Capital Company, Inc.
Services LLC
875,000 Morgan Stanley Sears Holdings 5.00% CCC+ 12/20/16 (24,061) (56,990)
Capital Corp.
Services LLC
----------------------------------------------------------------------------------------------------------------------
Total $(1,597,483) $ (319,531)
======================================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
(2) Based on Standard & Poor's rating of the issuer or weighted average of all
the underlying securities of the index.
NR Not rated by either S&P or Moody's.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EUR Euro
INTEREST RATE SWAP AGREEMENTS
---------------------------------------------------------------------------------------------------------------------
Annual
Notional Pay/ Floating Fixed Expiration Premiums Unrealized
Principal ($) Counterparty Receive Rate Rate Date Paid Depreciation
---------------------------------------------------------------------------------------------------------------------
(951,858) J.P. Morgan LIBOR USD 1.819% 8/7/19 $ 4 $ (27,721)
Securities LLC Receive 3 Month
(1,018,659) J.P. Morgan LIBOR USD 2.202% 5/6/25 8 (66,616)
Securities LLC Receive 3 Month
---------------------------------------------------------------------------------------------------------------------
Total $ 12 $ (94,337)
=====================================================================================================================
TOTAL RETURN SWAP AGREEMENTS
----------------------------------------------------------------------------------------------------------------------
Obligation
Notional Pay / Entity/ Expiration Unrealized
Principal ($) Counterparty Receive Index Coupon Date (Depreciation)
----------------------------------------------------------------------------------------------------------------------
8,335,000 JPMorgan Pay iBoxx USD 0.5695% 3/20/16 $ (186,848)
Chase Bank NA Liquid High
Yield Index
8,335,000 JPMorgan Pay iBoxx USD 0.5695% 3/20/16 (173,290)
Chase Bank NA Liquid High
Yield Index
4,165,000 JPMorgan Pay iBoxx USD 0.5695% 3/20/16 (86,593)
Chase Bank NA Liquid High
Yield Index
4,165,000 JPMorgan Pay iBoxx USD 0.5695% 3/20/16 (91,116)
Chase Bank NA Liquid High
Yield Index
----------------------------------------------------------------------------------------------------------------------
Total $ (537,847)
======================================================================================================================
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
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.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes to
Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 25
Schedule of Investments | 2/29/16 (unaudited) (continued)
---------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------
Preferred Stock $ 534,470 $ -- $ -- $ 534,470
Asset Backed Securities -- 1,319,115 -- 1,319,115
Collateralized Mortgage Obligations -- 2,314,373 -- 2,314,373
Corporate Bonds -- 8,015,438 -- 8,015,438
U.S. Government and
Agency Obligations -- 24,925,367 -- 24,925,367
Repurchase Agreement -- 7,760,000 -- 7,760,000
Put Options Purchased 445,300 -- -- 445,300
---------------------------------------------------------------------------------------
Total $ 979,770 $44,334,293 $ -- $45,314,063
---------------------------------------------------------------------------------------
Other Financial Instruments
Net unrealized Appreciation on
Default Swaps $ -- $ 41,993 $ -- $ 41,993
Unrealized Depreciation on
Interest Rate Swaps -- (94,337) -- (94,337)
Unrealized Depreciation on
Total Return Swaps -- (537,847) -- (537,847)
Put Options Written (300,015) -- -- (300,015)
Unrealized Appreciation on
Futures Contracts 4,750 -- -- 4,750
Unrealized Appreciation on
Forward Foreign
Currency Contracts -- 47,589 -- 47,589
Unrealized Depreciation on
Forward Foreign
Currency Contracts -- (57,839) -- (57,839)
---------------------------------------------------------------------------------------
Total Other Financial Instruments $ (295,265) $ (600,441) $ -- $ (895,706)
---------------------------------------------------------------------------------------
During the six months ended February 29, 2016, there were no transfers between
Levels 1, 2 and 3.
The following is a summary of the fair valuation of certain Fund's assets as of
February 29, 2016:
---------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------
Assets:
Restricted cash $ -- $ 578,298 $ -- $ 578,298
Variation margin for centrally
cleared swap contracts -- (102,902) -- (102,902)
Liabilities:
Due to custodian, at value
(cost $(587,497)) -- (534,570) -- (534,570)
Variation margin for
futures contracts (4,781) -- -- (4,781)
---------------------------------------------------------------------------------------
Total $ (4,781) $ (59,174) $ -- $ (63,955)
=======================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Statement of Assets and Liabilities | 2/29/16 (unaudited)
ASSETS:
Investment in securities (cost $37,967,989) $37,554,063
Repurchase agreement (cost $7,760,000) 7,760,000
---------------------------------------------------------------------------------------
Total investment in securities (cost $45,727,989) 45,314,063
Cash 355,561
Restricted Cash* 578,298
Receivables --
Fund shares sold 3,000
Swap payments 194,702
Interest 117,130
Due from Pioneer Investment Management, Inc. 25,735
Unrealized appreciation on futures contracts 4,750
Unrealized appreciation on forward foreign currency contracts 47,589
Other assets 26,293
---------------------------------------------------------------------------------------
Total assets $46,667,121
=======================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 627,556
Fund shares repurchased 632,790
Trustee fees 1,191
Due to custodian, at value (cost $(587,497)) 534,570
Unrealized depreciation on forward foreign currency contracts 57,839
Net unrealized depreciation on swap contracts 590,191
Swap contracts, net premiums received 1,736,023
Variation margin on futures contracts 4,781
Variation margin for centrally cleared swap contracts 102,902
Written options (premiums received $498,381) 300,015
Due to affiliates 29,108
Accrued expenses 72,682
---------------------------------------------------------------------------------------
Total liabilities $ 4,689,648
=======================================================================================
NET ASSETS:
Paid-in capital $47,584,306
Distributions in excess of net investment income (99,739)
Accumulated net realized loss on investments, futures contracts,
written options, swap contracts, and foreign currency transactions (4,707,838)
Net unrealized depreciation on investments (413,926)
Unrealized appreciation on futures contracts 4,750
Net unrealized appreciation on written options 198,366
Net unrealized depreciation on swap contracts (590,191)
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 1,745
---------------------------------------------------------------------------------------
Total net assets $41,977,473
=======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $9,830,120/1,102,649 shares) $ 8.92
Class C (based on $8,665,675/976,014 shares) $ 8.88
Class Y (based on $23,481,678/2,622,186 shares) $ 8.96
MAXIMUM OFFERING PRICE:
Class A ($8.92 / 95.5%) $ 9.34
=======================================================================================
* Represents restricted cash deposited at the counterparty for derivative
contracts.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 27
Statement of Operations (unaudited)
For the Six Months Ended 2/29/16
INVESTMENT INCOME:
Dividends $ 40,218
Interest 570,744
----------------------------------------------------------------------------------------------------------
Total investment income $ 610,962
----------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 280,708
Distribution fees
Class A 13,124
Class C 44,855
Transfer Agent fees
Class A 593
Class C 418
Class Y 226
Shareholder communications expense 5,370
Administrative expense 15,248
Custodian fees 34,961
Registration fees 21,995
Professional fees 62,096
Printing fees 8,151
Pricing fees 17,638
Fees and expenses of nonaffiliated Trustees 3,553
Miscellaneous 2,194
----------------------------------------------------------------------------------------------------------
Total expenses $ 511,130
----------------------------------------------------------------------------------------------------------
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (99,215)
----------------------------------------------------------------------------------------------------------
Net expenses $ 411,915
----------------------------------------------------------------------------------------------------------
Net investment income $ 199,047
----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS, WRITTEN OPTIONS, SWAP CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (1,305,674)
Futures contracts (324,519)
Written options 448,665
Swap contracts (2,145,893)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (56,457) $ (3,383,878)
----------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ (660,963)
Futures contracts 5,297
Written options 490,795
Swap contracts (418,412)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (23,032) $ (606,315)
----------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments, futures contracts,
written options, swap contracts, and foreign currency transactions $ (3,990,193)
----------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (3,791,146)
==========================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------------
Six Months
Ended Year
2/29/16 Ended
(unaudited) 8/31/15
-------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 199,047 $ 43,086
Net realized gain (loss) on investments, futures contracts, written
options, swap contracts, and foreign currency transactions (3,383,878) 352,928
Change in net unrealized appreciation (depreciation) on
investments, futures contracts, written options,
swap contracts, and foreign
currency transactions (606,315) (496,999)
-------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (3,791,146) $ (100,985)
-------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.25 and $0.33 per share, respectively) $ (267,690) $ (290,990)
Class C ($0.18 and $0.28 per share, respectively) (170,886) (237,127)
Class Y ($0.24 and $0.35 per share, respectively) (729,007) (292,420)
-------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (1,167,583) $ (820,537)
-------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS: (a)(b)
Net proceeds from sale of shares $ 1,157,341 $30,657,269
Reinvestment of distributions 712,918 820,545
Cost of shares repurchased (8,384,504) (3,141,008)
-------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ (6,514,245) $28,336,806
-------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (11,472,974) $27,415,284
NET ASSETS:
Beginning of period $ 53,450,447 $26,035,163
-------------------------------------------------------------------------------------------------
End of period $ 41,977,473 $53,450,447
-------------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net investment income $ (99,739) $ 868,797
=================================================================================================
(a) At February 29, 2016, PIM owned 56.2% of the value of the outstanding
shares of Pioneer Long/Short Opportunistic Credit Fund.
(b) At February 29, 2016, Pioneer Asset Allocation Trust owned 31.0% of the
value of the outstanding shares of Pioneer Long/Short Opportunistic Credit
Fund.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 29
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------
Six Months Six Months
Ended Ended Year Year
2/29/16 2/29/16 Ended Ended
Shares Amount 8/31/15 8/31/15
(unaudited) (unaudited) Shares Amount
------------------------------------------------------------------------------------
Class A
Shares sold 5,991 $ 76,520 345,034 $ 3,451,984
Reinvestment of distributions 29,417 267,690 29,815 290,998
Less shares repurchased (94,021) (897,039) (107,896) (1,072,297)
------------------------------------------------------------------------------------
Net increase (decrease) (58,613) $ (552,829) 266,953 $ 2,670,685
====================================================================================
Class C
Shares sold 14,728 $ 136,751 113,452 $ 1,133,511
Reinvestment of distributions 18,841 170,886 24,346 237,127
Less shares repurchased (11,654) (107,964) (19,101) (188,852)
------------------------------------------------------------------------------------
Net increase 21,915 $ 199,673 118,697 $ 1,181,786
====================================================================================
Class Y
Shares sold 98,956 $ 944,070 2,603,899 $26,071,774
Reinvestment of distributions 30,016 274,342 29,930 292,420
Less shares repurchased (798,318) (7,379,501) (190,908) (1,879,859)
------------------------------------------------------------------------------------
Net increase (decrease) (669,346) $ (6,161,089) 2,442,921 $24,484,335
====================================================================================
The accompanying notes are an integral part of these financial statements.
30 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Financial Highlights
-----------------------------------------------------------------------------------------------
Six Months
Ended Year
2/29/16 Ended 12/30/13
(unaudited) 8/31/15 to 8/31/14
-----------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.89 $ 10.11 $ 10.00
-----------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.04(b) $ 0.06 $ (0.01)
Net realized and unrealized
gain (loss) on investments (0.76) 0.05 0.12
-----------------------------------------------------------------------------------------------
Net increase (decrease) from
investment operations $ (0.72) $ 0.11 $ 0.11
-----------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.25) $ (0.33) $ --
-----------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.97) $ (0.22) $ 0.11
-----------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.92 $ 9.89 $ 10.11
===============================================================================================
Total return* (7.37)% 1.12% 1.10%(a)
Ratio of net expenses to average net assets 1.70%** 1.70% 1.70%**
Ratio of net investment income (loss) to
average net assets 0.80%** 0.35% (0.15)%**
Portfolio turnover rate 79%** 130% 100%**
Net assets, end of period (in thousands) $ 9,830 $11,479 $ 9,040
Ratios with no waiver of fees and assumption
of expenses by the Adviser and no reduction
for fees paid indirectly:
Total expenses to average net assets 2.12%** 2.39% 2.85%**
Net investment income (loss) to average net assets 0.38%** (0.34)% (1.30)%**
===============================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) Not annualized.
(b) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 31
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------
Six Months
Ended Year
2/29/16 Ended 12/30/13
(unaudited) 8/31/15 to 8/31/14
-----------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.82 $ 10.06 $ 10.00
-----------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.00(b)(c) $ (0.02) $ (0.06)
Net realized and unrealized
gain (loss) on investments (0.76) 0.06 0.12
-----------------------------------------------------------------------------------------------
Net increase (decrease) from
investment operations $ (0.76) $ 0.04 $ 0.06
-----------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.18) $ (0.28) $ --
-----------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.94) $ (0.24) $ 0.06
-----------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.88 $ 9.82 $ 10.06
===============================================================================================
Total return* (7.80)% 0.40% 0.60%(a)
Ratio of net expenses to average net assets 2.45%** 2.45% 2.45%**
Ratio of net investment income (loss) to
average net assets 0.06%** (0.34)% (0.91)%**
Portfolio turnover rate 79%** 130% 100%**
Net assets, end of period (in thousands) $ 8,666 $ 9,364 $ 8,403
Ratios with no waiver of fees and
assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Total expenses to average net assets 2.86%** 3.13% 3.58%**
Net investment income (loss) to average net assets (0.35)%** (1.02)% (2.04)%**
===============================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) Not annualized.
(b) The per share data presented above is based on the average shares
outstanding for the period presented.
(c) Amount rounds to less than $0.01 or $(0.01) per share.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
-----------------------------------------------------------------------------------------------
Six Months
Ended Year
2/29/16 Ended 12/30/13
(unaudited) 8/31/15 to 8/31/14
-----------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.91 $ 10.13 $ 10.00
-----------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.05(c) $ 0.09 $ 0.01(a)
Net realized and unrealized
gain (loss) on investments (0.76) 0.04 0.12
-----------------------------------------------------------------------------------------------
Net increase (decrease) from
investment operations $ (0.71) $ 0.13 $ 0.13
-----------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.24) $ (0.35) $ --
-----------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.95) $ (0.22) $ 0.13
-----------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.96 $ 9.91 $ 10.13
===============================================================================================
Total return* (7.25)% 1.29% 1.30%(b)
Ratio of net expenses to average net assets 1.45%** 1.45% 1.45%**
Ratio of net investment income (loss) to
average net assets 1.05%** 0.28% 0.10%**
Portfolio turnover rate 79%** 130% 100%**
Net assets, end of period (in thousands) $23,482 $32,607 $ 8,592
Ratios with no waiver of fees and
assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Total expenses to average net assets 1.85%** 2.06% 2.58%**
Net investment income (loss) to average net assets 0.65%** (0.33)% (1.03)%**
===============================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges.
** Annualized.
(a) The amount shown for a share outstanding does not correspond to the Net
Investment Loss on the Statement of Operations due to the timing of sales
and repurchases of shares.
(b) Not annualized.
(c) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 33
Notes to Financial Statements | 2/29/16 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Long/Short Opportunistic Credit Fund (the Fund) is one of five
portfolios comprising Pioneer Series Trust V, 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's investment objective is to
seek total return.
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 commenced operations on December
30, 2013. 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.
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:
A. Security Valuation
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.
34 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Fixed income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed income securities and/or other
factors. Valuations may be supplemented by dealers and other sources, as
required. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service.
Event-linked bonds or catastrophe bonds are valued at the bid price
obtained from an independent third party pricing service. Other insurance
linked securities (including sidecars, collateralized reinsurance and
industry loss warranties) may be valued at the bid price obtained from an
independent pricing service, or through a third party using a pricing
matrix, insurance industry valuation models, or other fair value methods or
techniques to provide an estimated value of the instrument.
Foreign securities are valued in U.S. dollars based on foreign currency
exchange rate quotations supplied by a third party pricing service. Trading
in non-U.S. equity securities is substantially completed each day at
various times prior to the close of the NYSE. The values of such securities
used in computing the net asset value of the Fund's shares are determined
as of such times. The fund may use a fair value model developed by an
independent pricing service to value non-U.S. equity securities
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealer association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Futures contracts are generally valued at the closing settlement price
established by the exchange on which they are traded.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 35
Options contracts are generally valued at the mean between the last bid and
ask prices on the principal exchange where they are traded.
Over-the-counter ("OTC") options and options on swaps ("swaptions") are
valued using prices supplied by independent pricing services, which
consider such factors as market prices, market events, quotations from one
or more brokers, Treasury spreads, yields, maturities and ratings, or may
use a pricing matrix or other fair value methods or techniques to provide
an estimated value of the security or instrument.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate, in each case provided by a third party pricing service.
Contracts whose forward settlement date falls between two quoted days are
valued by interpolation.
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 by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. PIM's fair
valuation team is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair values on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
At February 29, 2016, there were no securities valued using fair value
methods (other than securities valued using prices supplied by independent
pricing services, broker-dealers or using a third party insurance industry
pricing model).
B. Investment Income & Transactions
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
32 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
paydowns. All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
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.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency 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 the market price of those securities but are
included with the net realized and unrealized gain or loss on investments.
D. Futures Contracts
The Fund may enter into futures transactions in order to attempt 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. All futures contracts entered into by the Fund 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. The amount of cash deposited with the broker as collateral at
February 29, 2016 was $211,011 and is recorded within "Restricted Cash" on
the Statement of Assets and Liabilities. 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 appreciation or depreciation. 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
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 37
where applicable. The use of futures contracts involves, to varying
degrees, elements of market, interest rate, currency exchange rate and
counterparty risks, which may exceed the amount recognized by the Fund.
Changes in value of the contracts may not directly correlate to the changes
in value of the underlying securities. The average value of contracts open
during the six months ended February 29, 2016 was $(3,113,651).
At February 29, 2016, open futures contracts were as follows:
-------------------------------------------------------------------------------------
Number of
Contracts
Long/ Settlement Unrealized
Type Counterparty (Short) Month/Year Value Appreciation
-------------------------------------------------------------------------------------
U.S. 10 Year Note Citibank NA (8) 6/16 $(1,044,125) $1,375
U.S. Ultra Bond Citibank NA (9) 6/16 (1,558,406) 3,375
-------------------------------------------------------------------------------------
Total $(2,602,531) $4,750
=====================================================================================
E. 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 appreciation or depreciation
is recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
F. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no federal income tax provision is required. As
of August 31, 2015, the Fund did not accrue any interest or penalties with
respect to uncertain tax positions, which, if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax returns filed
within the prior three years remain subject to examination by federal and
state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for
38 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
financial statement and tax purposes. Capital accounts within the financial
statements are adjusted for permanent book/tax differences to reflect tax
character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the fiscal year ended August 31, 2015 was as follows:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $820,537
---------------------------------------------------------------------------
Total $820,537
===========================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at August 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,167,384
Capital loss carryforward (1,279,630)
Unrealized depreciation (535,858)
---------------------------------------------------------------------------
Total $ (648,104)
===========================================================================
The difference between book-basis and tax-basis net unrealized depreciation
is attributable to the tax adjustments relating to credit default swaps and
the mark to market of forwards, swaps, options and future contracts.
G. 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 $290 in underwriting commissions on the sale of Class A
shares during the six months ended February 29, 2016.
H. 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 Fund's transfer agent, 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).
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 39
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.
I. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
J. Insurance Linked Securities (ILS)
Event-linked bonds are floating rate debt obligations for which the return
of principal and the payment of interest are contingent on the
non-occurrence of a pre-defined "trigger" event, such as a hurricane or an
earthquake of a specific magnitude. The trigger event's magnitude may be
based on losses to a company or industry, industry indexes or readings of
scientific instruments, or may be based on specified actual losses. If a
trigger event, as defined within the terms of an event-linked bond occurs,
the Fund may lose a portion or all of its accrued interest and/or principal
invested in such event-linked bond. The Fund is entitled to receive
principal and interest payments so long as no trigger event occurs of the
description and magnitude specified by the instrument. In addition to the
specified trigger events, event-linked bonds may expose the Fund to other
risks, including but not limited to issuer (credit) default, adverse
regulatory or jurisdictional interpretations and adverse tax consequences.
The Fund's investments in ILS may include special purpose vehicles ("SPVs")
or similar instruments structured to comprise a portion of a reinsurer's
catastrophe-oriented business, known as quota share instruments (sometimes
referred to as reinsurance sidecars), or to provide reinsurance relating to
specific risks to insurance or reinsurance companies through a
collateralized instrument, known as collateralized reinsurance. Structured
reinsurance investments also may include industry loss warranties ("ILWs"),
are subject to the same risks as event-linked bonds. In addition, because
quota share instruments represent an interest in a basket of underlying
reinsurance contracts, the Fund has limited transparency into the
individual underlying contracts and therefore must rely upon the risk
assessment and sound underwriting practices of the issuer. Accordingly, it
may be more difficult for
40 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
PIM to fully evaluate the underlying risk profile of the Fund's investment
in quota share instruments and therefore place the Fund's assets at greater
risk of loss than if PIM had more complete information.
Quota share instruments and other structured reinsurance instruments
generally will be considered illiquid securities by the Fund. These
securities may be difficult to purchase, sell or unwind. Illiquid
securities also may be difficult to value. If the Fund is forced to sell an
illiquid asset, the Fund may be forced to sell at a loss.
K. Credit Default Swaps
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 sell
or buy credit default swap contracts to seek to increase the Fund's income,
or to attempt to hedge the risk of default on Fund securities. A credit
default swap index is used to hedge risk or take a position on a basket of
credit entities or indices. As a seller of protection, the Fund would be
required to pay the notional (or other agreed-upon) value of the referenced
debt obligation to the counterparty in the event of a default by a U.S. or
foreign corporate issuer of a debt obligation, which would likely result in
a loss to the Fund. In return, the Fund would receive from the counterparty
a periodic stream of payments during the term of the contract provided that
no event of default occurred. The maximum exposure of loss to the seller
would be the notional value of the credit default swaps outstanding. If no
default occurs, the Fund would keep the stream of payments and would have
no payment obligation. The Fund may also buy credit default swap contracts
in order to hedge against the risk of default of debt securities, in which
case the Fund would function as the counterparty referenced above.
When the Fund enters into a credit default swap contract, the protection
buyer makes an up front payment to the protection seller in exchange for
the rights to receive a contingent payment. An up front payment made by the
Fund, as the protection buyer, is recorded as an asset in the Statement of
Assets and Liabilities. Periodic payments received or paid by the Fund are
recorded as realized gains or losses in the Statement of Operations.
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 appreciation or depreciation in the Statement of
Assets and Liabilities. 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 in
the Statement of Operations.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 41
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.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as variation margin on
centrally cleared swaps on the Statement of Assets and Liabilities.
The amount of cash deposited with a broker as collateral at February 29,
2016 was $291,157 and is recorded within "Restricted Cash" on the Statement
of Assets and Liabilities.
Open credit default swap contracts at February 29, 2016 are listed in the
Schedule of Investments. The average value of credit default swap contracts
open during the six months ended February 29, 2016 was $(2,459,622).
L. Interest Rate Swap Contracts
The Fund may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance its income. Pursuant to the
interest rate swap agreement, the Fund negotiates with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly
basis.
Periodic payments received or paid by the Fund are recorded as realized
gains or losses in the Statement of Operations. Interest rate swap
contracts are marked-to-market daily using valuations supplied by
independent sources and the change in value, if any, is recorded as
unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Interest rate swap contracts are subject to counterparty risk
and movements in interest rates.
42 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Open interest rate swap contracts at February 29, 2016 are listed in the
Schedule of Investments. The average value of interest swap contracts open
during the six months ended February 29, 2016 was $(41,160).
M. Total Return Swap Contracts
The Fund may enter into a total return swap to attempt to manage and/or
gain exposure to a security or market. Pursuant to a total return swap
agreement, the Fund negotiates with a counterparty to exchange a periodic
stream of payments. One party makes payments based on the total return of a
reference asset (such as a security or a basket of securities or securities
index), and in return receives fixed or floating rate interest payments.
The total return of the reference asset typically includes appreciation or
depreciation on the reference asset, plus any interest or dividend
payments. To the extent that the total return of the reference asset
exceeds or falls short of the offsetting interest rate obligation, the Fund
will receive a payment from or make a payment to the counterparty.
Total return swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made are recorded as realized
gains or losses in the Statement of Operations. Total return swap contracts
are subject to counterparty risk and unanticipated movements in value of
exchange rates, interest rates, securities or the index.
Open interest rate swap contracts at February 29, 2016 are listed in the
Schedule of Investments. The average value of swap contracts open during
the six months ended February 29, 2016 was $(263,849).
N. Credit Default Swaption Writing
The Fund may write put and covered call swaptions on portfolio securities
in order to attempt to hedge against changes in the value of portfolio
securities or to seek to increase total return. When a swaption is written,
the Fund receives a premium and becomes obligated to purchase or sell the
underlying security at a fixed price upon the exercise of the swaption.
When the Fund writes a swaption, an amount equal to the premium received by
the Fund is recorded as a liability and is subsequently adjusted to the
current value of the swaption written. Premiums received from writing
swaptions 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 swaption is exercised, the premium is added
to the proceeds from the sale
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 43
of the underlying security in determining whether the Fund has realized a
gain or loss. The Fund as writer of a swaption bears the market risk of an
unfavorable change in the price of the security underlying the written
swaption. The Fund had no outstanding written credit default swaption
contracts at February 29, 2016.
The average value of written swaption contracts open during the six months
ended February 29, 2016 was $(14,581).
Transactions in written swaptions for the six months ended February 29,
2016 are summarized as follows:
---------------------------------------------------------------------------
Number of Premiums
Contracts Received/Paid
---------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options opened (9,466,000) (76,451)
Options exercised -- --
Options closed -- --
Options expired 9,466,000 76,451
---------------------------------------------------------------------------
Options outstanding at end of period -- $ --
===========================================================================
O. Credit Default Swaption Purchased
The Fund may purchase put and call swaptions in order to attempt to hedge
against changes in the value of portfolio securities or to seek to increase
total return. Purchased call and put swaptions entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time. Upon the purchase of a call or put swaption, the
premium paid by the Fund is included in the Statement of Assets and
Liabilities as an investment. All premiums are marked-to-market daily, and
any unrealized gains or losses are recorded in the Fund's financial
statements. As the purchaser of an index swaption, the Fund has the right
to receive a cash payment equal to any depreciation in the value of the
index below the strike price of the swaption (in the case of a put) or
equal to any appreciation in the value of the index over the strike price
of the swaption (in the case of a call) as of the valuation date of the
swaption. Premiums paid for purchased calls and put swaptions which have
expired are treated as realized losses on investments in the Statement of
Operations. Upon the exercise or closing of a purchased put swaption, the
premium is offset against the proceeds on the sale of the underlying
security or financial instrument in order to determine the realized gain or
loss on investments. Upon the exercise or closing of a purchased call
swaption, the premium is added to the cost of the security or financial
instrument. The risk associated with purchasing swaptions is limited to the
44 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
premium originally paid. The average value of contracts open during the six
months ended February 29, 2016 was $12,778. There were no outstanding
purchased credit default swaptions open at February 29, 2016.
P. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price,
upon the exercise of the option. 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 value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the
underlying security in determining whether the Fund has realized a gain or
loss. The Fund as writer of an option bears the market risk of an
unfavorable change in the price of the security underlying the written
option.
The average value of written options contracts open during the six months
ended February 29, 2016 was ($305,884). Written call and put option
contracts outstanding at period end are listed at the end of the Fund's
schedule of investments.
The Fund held four written put option contracts that were open at February
29, 2016. If the put options were exercised at February 29, 2016, the
maximum amount the Fund would have been required to pay was $498,381.
---------------------------------------------------------------------------
Number of Premiums
Contracts Received
---------------------------------------------------------------------------
Options outstanding at beginning of period (202) $(249,436)
Options opened (618) (740,925)
Options exercised 410 491,980
Options closed -- --
Options expired -- --
---------------------------------------------------------------------------
Options outstanding at end of period (410) $(498,381)
===========================================================================
Q. Options Purchased
The Fund may purchase put and call options in order to seek to increase
total return. Purchased call and put options entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time. Upon
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 45
the purchase of a call or put option, the premium paid by the Fund is
included in the Statement of Assets and Liabilities as an investment. All
premiums are marked-to-market daily, and any unrealized appreciation or
depreciation are recorded in the Fund's financial statements. As the
purchaser of an index option, the Fund has the right to receive a cash
payment equal to any depreciation in the value of the index below the
strike price of the option (in the case of a put) or equal to any
appreciation in the value of the index over the strike price of the option
(in the case of a call) as of the valuation date of the option. Premiums
paid for purchased calls and put options which have expired are treated as
realized losses on investments in the Statement of Operations. Upon the
exercise or closing of a purchased put option, the premium is offset
against the proceeds on the sale of the underlying security or financial
instrument in order to determine the realized gain or loss on investments.
Upon the exercise or closing of a purchased call option, the premium is
added to the cost of the security or financial instrument. The risk
associated with purchasing options is limited to the premium originally
paid.
The average value of purchased options contracts open during the six months
ended February 29, 2016 was $404,341. Purchased option contracts
outstanding at period end are listed within the Fund's schedule of
investments.
R. Repurchase Agreements
Repurchase agreements are arrangements under which the Fund purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Fund at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Fund. The securities purchased serve as
the Fund's collateral for the obligation of the counterparty to repurchase
the securities. The value of the 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, PIM is responsible for determining
that the value of the collateral remains at least equal to the repurchase
price. In the event of a default by the counterparty, the Fund is entitled
to sell the securities, but the Fund may not be able to sell them for the
price at which they were purchased, thus causing a loss to the Fund.
Additionally, if the counterparty becomes insolvent, there is some risk
that the Fund will not have a right to the securities, or the immediate
right to sell the securities.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at an annual rate of 1.15% of
the average daily net assets of the Fund up to $1 billion and 1.05% of the
46 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Fund's average daily net assets over $1 billion. For the six months ended
February 29, 2016, the management fee was equivalent to 1.15% of the Fund's
average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses (ordinary
operating expenses means all fund expenses other than extraordinary expenses,
such as litigation, taxes, brokerage commissions and acquired fund fees and
expenses) to the extent required to reduce Fund expenses to 1.70%, 2.45% and
1.45% of the average daily net assets attributable to Class A, Class C and Class
Y shares, respectively. These expense limitations are in effect through January
1, 2017. Fees waived and expenses reimbursed during the six months ended
February 29, 2016 are reflected on the Statement of Operations. Fees and
expenses of other investment companies in which the Fund may invest are not
included in the expense limitations noted above. 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
$26,891 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 29, 2016.
3. Transfer Agent
Prior to November 2, 2015, Pioneer Investment Management Shareholder Services,
Inc. (PIMSS), a wholly owned indirect subsidiary of UniCredit, provided
substantially all transfer agent and shareowner services to the Fund at
negotiated rates.
Effective November 2, 2015, Boston Financial Data Services serves as the
transfer agent to the Fund at negotiated rates.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings, outgoing phone calls and omnibus
relationship contracts. For the six months ended February 29, 2016, such
out-of-pocket expenses by class of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $1,527
Class C 581
Class Y 3,262
--------------------------------------------------------------------------------
Total $5,370
================================================================================
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 47
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $1,011 in transfer agent fees and out-of-pocket reimbursements
payable to the transfer agent at February 29, 2016.
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 services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $1,206 in distribution fees payable to
PFD at February 29, 2016.
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 12 months of purchase. Redemptions of Class C shares within 12 months 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. Proceeds from the CDSCs are paid to PFD. For the six
months ended February 29, 2016, CDSC's in the amount of $1,585 were paid to PFD.
5. Forward Foreign Currency Contracts
During the six months ended February 29, 2016, 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
value of forward foreign currency contracts open during the six months ended
February 29, 2016 was $(2,867,012).
48 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
------------------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
------------------------------------------------------------------------------------------------------------
EUR (Euro) (115,106) USD 129,589 Citibank NA 3/16/16 $ 4,186
EUR (Euro) (553,631) USD 608,593 JP Morgan 3/16/16 5,438
Chase Bank NA
KRW (South (672,880,611) USD 556,284 JP Morgan 4/21/16 14,051
Korean Won) Chase Bank NA
NZD (New (284,438) AUD 263,735 JPMorgan 5/23/16 1,089
Zealand Dollar) (Australian Chase Bank NA
Dollar)
JPY (Japanese (34,307,263) USD 306,384 JPMorgan 5/25/16 1,437
Yen) Chase Bank NA
AUD (Australian (258,794) USD 186,402 JPMorgan 5/25/16 2,383
Dollar) Chase Bank NA
ZAR (South (1,887,323) USD 121,934 JPMorgan 5/25/16 4,916
African Rand) Chase Bank NA
HUF (Hungarian (79,619,344) USD 285,245 JPMorgan 5/25/16 5,706
Forint) Chase Bank NA
NZD (New (568,084) USD 377,258 JPMorgan 5/25/16 4,898
Zealand Dollar) Chase Bank NA
EUR (Euro) (255,707) USD 282,703 JPMorgan 5/25/16 3,485
Chase Bank NA
------------------------------------------------------------------------------------------------------------
Total $ 47,589
============================================================================================================
------------------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
------------------------------------------------------------------------------------------------------------
USD (550,493) EUR (Euro) 487,592 Goldman Sachs 3/16/16 $ (19,285)
International
USD (428,672) EUR (Euro) 390,032 Citibank NA 3/16/16 (3,751)
USD (762,529) EUR (Euro) 693,770 JP Morgan 3/16/16 (6,699)
Chase Bank NA
USD (298,413) INR (Indian 20,525,000 Goldman Sachs 4/21/16 (583)
Rupee) International
SGD (Singapore (388,867) USD 269,950 JP Morgan 4/25/16 (6,173)
Dollar) Chase Bank NA
CAD (Canadian (600,107) MXN 7,833,497 JPMorgan 4/25/16 (13,421)
Dollar) (Mexican Peso) Chase Bank NA
SEK (Swedish (3,943,441) USD 461,000 JPMorgan 4/25/16 (826)
Krona) Chase Bank NA
CZK (Czech (11,452,630) USD 458,541 Citibank NA 4/25/16 (2,764)
Koruna)
TWD (New (18,848,762) USD 565,944 JPMorgan 5/18/16 (474)
Taiwan Dollar) Chase Bank NA
CAD (245,262) USD 177,600 Citibank NA 5/25/16 (3,863)
(Canadian Dollar)
------------------------------------------------------------------------------------------------------------
Total $ (57,839)
============================================================================================================
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 49
6. Assets and Liabilities Offsetting
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the trading
of certain OTC derivatives and typically contains, among other things, close-out
and set-off provisions which apply upon the occurrence of event of a default
and/or termination event as defined under the relevant ISDA Master Agreement.
The ISDA Master Agreement may also give a party the right to terminate all
transactions traded under such agreement if, among other things, there is
deterioration in the credit quality of the other party. Upon an event of default
or a termination of the ISDA Master Agreement, the non-defaulting party has the
right to close out all transactions under such agreement and to net amounts owed
under each transaction to determine one net amount payable by one party to the
other. The right to close out and net payments across all transactions under the
ISDA Master Agreement could result in a reduction of the Fund's credit risk to
its counterparty equal to any amounts payable by the Fund under the applicable
transactions, if any. However, the Fund's right to setoff may be restricted or
prohibited by the bankruptcy or insolvency laws of the particular jurisdiction
to which a specific ISDA counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collateral pledged for the benefit of the Fund and/or
counterparty is held in segregated accounts by the Fund's custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Fund's collateral obligations, if any, will be
reported separately in the Statement of Assets and Liabilities as "Restricted
Cash". Securities pledged by the Fund as collateral, if any, are identified as
such in the Schedule of Investments.
50 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Fund
as of February 29 2016.
---------------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
---------------------------------------------------------------------------------------------------
Barclays Bank Plc $ 130,406 $ (11,842) $ -- $ -- $ 118,564
Citibank NA 4,186 (4,186) -- -- --
Goldman Sachs
International 81,706 (81,706) -- -- --
JPMorgan Chase
& Co. 67,041 (67,041) -- -- --
Morgan Stanley
Capital
Services LLC 35,145 (35,145) -- -- --
---------------------------------------------------------------------------------------------------
Total $ 318,484 $(199,920) $ -- $ -- $ 118,564
===================================================================================================
---------------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
---------------------------------------------------------------------------------------------------
Barclays Bank Plc $ (11,842) $ 11,842 $ -- $ -- $ --
Citibank NA (10,378) 4,186 -- 6,192 --
Goldman Sachs
International (665,928) 81,706 584,222 -- --
JPMorgan Chase
& Co. (387,832) 67,041 320,791 -- --
Morgan Stanley
Capital
Services LLC (56,990) 35,145 -- -- (21,845)
---------------------------------------------------------------------------------------------------
Total $(1,132,970) $ 199,920 $ 905,013 $ 6,192 $ (21,845)
===================================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
7. Additional Disclosures about Derivative Instruments and Hedging Activities:
The Fund's use of derivatives subjects it to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 51
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at February 29,
2016 was as follows:
---------------------------------------------------------------------------------------------
Statement of Assets and Liabilities
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Rate Risk Risk Risk
---------------------------------------------------------------------------------------------
Assets
Unrealized appreciation
of forward foreign
currency contracts $ -- $ -- $ 47,589 $ -- $ --
Unrealized
appreciation of
futures contracts 4,750 -- -- -- --
---------------------------------------------------------------------------------------------
Total Value $ 4,750 $ -- $ 47,589 $ -- $ --
=============================================================================================
Liabilities
Unrealized depreciation
of forward foreign
currency contracts $ -- $ -- $ (57,839) $ -- $ --
Net unrealized
depreciation
on swap contracts (632,184) 41,993 -- -- --
Written options -- -- -- (300,015) --
---------------------------------------------------------------------------------------------
Total Value $ (632,184) $ 41,993 $ (57,839) $ (300,015) $ --
=============================================================================================
52 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at February 29, 2016 was as follows:
----------------------------------------------------------------------------------------
Statement of Operations
Foreign
Interest Credit Exchange Commodity
Rate Risk Risk Rate Risk Equity Risk Risk
----------------------------------------------------------------------------------------
Net realized gain
(loss) on
Futures contracts $ (324,519) $ -- $ -- $ -- $ --
Written options -- 76,451 -- 372,214 --
Swap contracts -- (2,145,893) -- -- --
Forward foreign
currency
contracts* -- -- (62,968) -- --
----------------------------------------------------------------------------------------
Total Value $ (324,519) $ (2,069,442) $ (62,968) $ 372,214 $ --
========================================================================================
Change in net
unrealized
appreciation
(depreciation) on
Futures contracts $ 5,297 $ -- $ -- $ -- $ --
Written options -- -- -- 490,795 --
Swap contracts (612,410) 193,998 -- -- --
Forward foreign
currency
contracts* -- -- (31,138) -- --
----------------------------------------------------------------------------------------
Total Value $ (607,113) $ 193,998 $ (31,138) $ 490,795 $ --
========================================================================================
* Included in the amount shown on the Statement of Operations as foward
foreign currency contracts and other assets and liabilities denominated in
foreign currencies.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 53
ADDITIONAL INFORMATION (unaudited)
Pioneer Investment Management, Inc. (the "Adviser"), each fund's investment
adviser, is currently an indirect, wholly owned subsidiary of UniCredit S.p.A.
("UniCredit"). On November 11, 2015, UniCredit announced that it signed a
binding master agreement with Banco Santander and affiliates of Warburg Pincus
and General Atlantic (the "Private Equity Firms") with respect to Pioneer
Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as previously announced by UniCredit, will establish a holding
company, with the name Pioneer Investments, to be owned by UniCredit (50%) and
the Private Equity Firms (50% between them). The holding company will control
Pioneer's U.S. operations, including PIM. The holding company also will own
66.7% of Pioneer's and SAM's combined operations outside the U.S., while Banco
Santander will own directly the remaining 33.3% stake. The closing of the
Transaction is expected to happen in 2016, subject to certain regulatory and
other approvals.
Under the Investment Company Act of 1940, completion of the Transaction will
cause each fund's current investment advisory agreement with PIM to terminate.
Accordingly, each fund's Board of Trustees will be asked to approve a new
investment advisory agreement. If approved by the Board, each fund's new
investment advisory agreement will be submitted to the shareholders of the fund
for their approval.
54 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Long/Short Opportunistic Credit Fund (the Fund) pursuant to an
investment advisory agreement between PIM and the Fund. In order for PIM to
remain the investment adviser of the Fund, the Trustees of the Fund must
determine annually whether to renew the investment advisory agreement for the
Fund.
The contract review process began in January 2015 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2015 and July
2015. Supplemental contract review materials were provided to the Trustees in
September 2015. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year, and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings, in connection with the review of the Fund's
investment advisory agreement.
In March 2015, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In July 2015,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2015.
At a meeting held on September 15, 2015, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 55
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed PIM's investment approach
for the Fund and its research process. The Trustees considered the resources of
PIM and the personnel of PIM who provide investment management services to the
Fund. They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. The Trustees considered the non-investment resources and
personnel of PIM involved in PIM's services to the Fund, including PIM's
compliance and legal resources and personnel. The Trustees noted the substantial
attention and high priority given by PIM's senior management to the Pioneer fund
complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the advisory
agreement.
56 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party. In all
quintile rankings referred to below, first quintile is most favorable to the
Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the fifth quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoint in the management fee schedule and the
reduced fee rate above a certain asset level. The Trustees noted the investment
management expertise and resources required to implement the Fund's complex
investment strategy. The Trustees considered that the expense ratio of the
Fund's Class A shares for the most recent fiscal year was in the fifth quintile
relative to its Morningstar peer group and in the fifth quintile relative to its
Strategic Insight peer group, in each case for the comparable period. The
Trustees noted that PIM was waiving fees and/or reimbursing expenses in order to
limit the ordinary operating expenses of the Fund. The Trustees noted the Fund's
relatively small asset size compared to most of the other funds in its peer
groups, and that the Fund has not been able to take advantage of the economies
of scale afforded by greater asset size. The Trustees considered the impact of
transfer agency, sub-transfer agency, and other non-management fee expenses on
the expense ratios of the Fund. The Trustees noted that they separately review
the Fund's transfer agency, sub-transfer agency and intermediary arrangements.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 57
performs additional services for the Fund that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Fund's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Fund is subject. The Trustees
also considered the different entrepreneurial risks associated with PIM's
management of the Fund and Pioneer's management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoint in the management fee schedule. The Trustees recognize that
economies of scale are difficult to identify and quantify, and that, among other
factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Fund. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons including reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
58 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16 59
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data 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 us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Ms. Monchak is a non-voting Advisory Trustee.
64 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/29/16
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:
--------------------------------------------------------------------------------
Pioneer Funds
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: us.pioneerinvestments.com
This report must be preceded or 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.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2016 Pioneer Investments 27687-02-0416
Pioneer Absolute Return
Bond Fund
--------------------------------------------------------------------------------
Semiannual Report | February 29, 2016
--------------------------------------------------------------------------------
Ticker Symbols:
Class A ABRDX
Class C ARCBX
Class K ARBKX
Class Y ARBYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 27
Notes to Financial Statements 35
Approval of Investment Advisory Agreement 60
Trustees, Officers and Service Providers 65
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 1
President's Letter
Dear Shareowner,
Over the past several years, many investors experienced positive returns across
most major asset classes. However, 2015 was a tale of two markets, with
favorable market conditions in the first half of the year, followed by an abrupt
slowdown and increased volatility beginning in August. The global markets were
challenged by significant economic cross-currents in different geographic
regions and industrial sectors. While the U.S. economy gradually improved,
growth slowed in China. Emerging markets struggled following a decline in
commodity prices, especially oil. While lower energy prices are good for the
consumer, there were ripple effects throughout the global economy.
Against this backdrop, the Standard & Poor's 500 Index rose by just 1.4% in
2015, international equity markets were essentially flat, and emerging market
equities fell sharply. Across U.S. fixed-income sectors, U.S. government and
investment-grade corporate bonds were fairly flat for the year, while high-yield
bonds, as measured by the Bank of America Merrill Lynch Master II High Yield
Index, posted a -4.9% total return.
Entering 2016, we see the U.S. economy growing modestly, against an overall
global economic backdrop that remains fragile and points towards structurally
lower growth. As always in a presidential election year, political rhetoric has
the potential to impact U.S. sectors such as health care in 2016. Economies
around the world in both developed and emerging markets are experiencing deep
structural change. Geopolitical instability on many fronts, the rising risk of
policy mistakes, and market liquidity issues all increase the possibility of
sharp swings in asset values. In this environment, financial markets remain
vulnerable to unusual levels of volatility. While divergences among regions and
industries is an important theme, we are generally optimistic about the outlook
for the U.S. economy, which we expect will see continued, positive growth led
by a strengthened consumer.
Throughout Pioneer's history, we have believed in the importance of active
management. In periods of market volatility, we believe that the value of active
management is even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using proprietary research,
careful risk management, and a long-term perspective. Our ongoing goal is to
produce compelling returns consistent with the stated objectives of our
investment products, and with our shareowners' expectations. We believe our
shareowners can benefit from the experience and tenure of our investment teams
as well as the insights generated from our extensive research process.
2 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
February 29, 2016
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. 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 Absolute Return Bond Fund | Semiannual Report | 2/29/16 3
Portfolio Management Discussion | 2/29/16
In the following interview, portfolio managers Tanguy Le Saout and Cosimo
Marasciulo discuss the factors that influenced Pioneer Absolute Return Bond
Fund's performance during the six-month period ended February 29, 2016, as well
as their investment approach in managing the Fund. Mr. Le Saout, Head of
European Fixed Income and a portfolio manager based in Pioneer's Dublin office,
and Mr. Marasciulo, Head of Government Bonds and a portfolio manager at Pioneer,
also based in Dublin, are responsible for the day-to-day management of the Fund.
Q How did the Fund perform during the six-month period ended
February 29, 2016?
A Pioneer Absolute Return Bond Fund's Class A shares returned -2.85% at net
asset value during the six-month period ended February 29, 2016, while the
Fund's benchmark, the Bank of America Merrill Lynch (BofA ML) 3-Month U.S.
Treasury Bill Index, returned 0.06%. During the same period, the average
return of the 306 mutual funds in Lipper's Alternative Credit Focus Funds
category was -3.45%, and the average return of the 537 mutual funds in
Morningstar's Non-Traditional Bond Funds category was -2.94%.
Q Can you provide an overview of the Fund's investment approach?
A The big picture is that we aim to have the Fund's annualized return exceed
that of three-month Treasury bills, while targeting portfolio volatility
that is similar to that of T-bills as well. To achieve this, we seek to
provide positive absolute Fund returns, regardless of market conditions.
Obviously, if we are going to be successful in achieving our goals, the
Fund's returns cannot be overly dependent on the price performance of one
or more fixed-income categories. Therefore, in seeking positive Fund
returns regardless of market conditions, we divide the portfolio into two
distinct parts.
The core of the Fund's portfolio invests in three-month Treasury bills.
This part of the portfolio effectively aims to match the return of the BofA
ML Index benchmark. For the remainder of the portfolio, we utilize an
overlay approach based on investments in a wide variety of lowly
correlated, highly diversified securities that we believe are sources of
potential return for the Fund. Each of those investments is designed to
provide the Fund with alpha, or excess return. (Alpha measures
risk-adjusted performance, representing excess return relative to the
return of the benchmark.)
4 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
We implement the overlay approach mainly via investments in derivatives;
however, in cases where derivatives cannot be used, the remainder of the
portfolio's "alpha-geared" investments can be allocated into bonds, each of
which is focused on a different segment of the fixed-income market.
Importantly, each investment in the "alpha" sleeve of the Fund's portfolio
seeks to benefit from both positive and negative market returns. This means
the Fund takes positions in some asset categories within the broad bond
market through long exposures, while also taking positions against other
asset categories via short exposures. (Long/Short positioning involves
taking long, or bought positions in fixed-income/equity securities in
anticipation that they will increase in value, and taking short, or sold
positions in fixed-income/equities in anticipation that they will decrease
in value.) This, in our view, provides the Fund with an added level of
diversification* across different asset classes when compared with
investment vehicles in which asset allocation and security selection are
more closely tied together.
Importantly, we closely track the portfolio's risks assumed across all of
the alpha-related strategies, and operate within an overall "risk budget"
based on our objective of avoiding negative Fund returns over a 12-month
period (full fiscal year).
Q Can you discuss the investment strategies that had the biggest effects on
the Fund's benchmark-relative performance during the six-month period
ended February 29, 2016?
A In addition to the core position in three-month Treasuries, the Fund had a
number of different positions across the alpha portion of the portfolio
during the period.
The Fund's relative-value positions were the leading detractors from
benchmark-relative returns over the six-month period. Notably, the Fund was
short the 10-year Italian government bond and had corresponding long
positions in 30-year Spanish and Italian bonds. We took that stance in view
of the recent underperformance of longer-term bonds in those markets, and
in anticipation that Spanish government bonds would outperform their
Italian counterparts. However, heightened political uncertainty in Spain
following December's inconclusive national election caused long Spanish
bonds to underperform.
The Fund's positioning with respect to U.S. interest rates was also a
detractor from relative returns during the period. We shorted the five-year
Treasury based on our view that the markets had become complacent about the
likely pace of short-term rate hikes by the U.S. Federal Reserve (the Fed)
* Diversification does not assure a profit nor protect against loss.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 5
and the corresponding impact on yields farther out on the yield curve. We
based the portfolio's positioning, in part, on our analysis of the Fed's
"dot chart," which displays the sentiment of individual Federal Open Market
Committee members as to the likely direction and extent of changes in the
Federal funds rate. Unfortunately, a number of factors combined to
undermine inflation expectations over the six-month period, resulting in a
decline in Treasury rates. These included signs of softening U.S. economic
growth, further weakness in oil prices, and China's currency devaluation in
August 2015, just prior to the start of the six-month period.
Positioning with regard to European interest rates was similar, as we
shorted the 10-year German bund. This stance also detracted from the Fund's
relative returns, due in part to interest-rate-lowering efforts by the
European Central Bank that were more aggressive than expected. Finally, a
position designed to benefit from any increase in inflation expectations in
Europe and Japan detracted from the Fund's relative returns, given the
continued slide in oil prices and lack of upward pressure on European
wages.
On the positive side, we anticipated that there would be elevated
volatility in European bond markets, and took a portfolio position designed
to benefit from a substantial move in long-term bond yields - in either
direction - within the region. The trade worked out well for the Fund in
early 2016, as European bond markets rallied and the curve flattened due to
substantial yield decreases on long-term bonds. Another strategy that added
value to the Fund's relative performance during the period was our attempt
to take advantage of a divergence between Japanese and European interest
rates. Specifically, while deposit rates in Europe were lower than in
Japan, the reverse was true with respect to two-year bond yields. We took a
portfolio position designed to benefit from those conditions, as market
expectations regarding the relative steepness of the European and Japanese
yield curves normalized.
Q Please discuss the role of derivatives in implementing the Fund's
investment approach during the six-month period ended February 29, 2016
A We implement virtually all of the Fund's strategies via derivatives, and so
the Fund's performance will always be influenced by the use of such
securities. For instance, when we want to short U.S. Treasuries in the
portfolio, we will do so mainly by selling Treasury futures, or sometimes
by buying "put" options. (A "put" option is a contractual agreement that
gives
6 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
the contract owner the right, but not the obligation, to sell a security at
a pre-determined, fixed price for a certain period of time, regardless of
the current market price of that security.)
Similarly, with the portfolio's currency investments, we use forward
contracts and options to gain the desired exposures. With respect to credit
markets where there are no liquid futures contracts, we may use credit
default swaps to manage the portfolio's exposures. In other situations, we
utilize instruments such as interest-rate or inflation swaps to implement
our investment views.
Q What is your assessment of the current macroeconomic climate and the
investment opportunities it may present?
A Recently, we have adopted a more neutral portfolio stance with regard to
global economic growth prospects as well as interest rates in comparison to
prior months. We did this because, on the one hand, central banks overseas
are continuing to signal the adoption of non-conventional measures such as
negative interest rates, while simultaneously increasing their
asset-purchase programs. On the other hand, however, while those policies
may support bond valuations in the short-term, we believe there is little
long-term value given the current level of global bond yields.
We expect the European and U.S. economies to grow at a slow, but steady
pace, and view the prospect of either economy falling back into recession
as unlikely. Employment growth is strong, and we believe the persistent
decline in oil prices will provide a boost to consumption that will become
increasingly evident as we move through 2016. It is true that manufacturing
sectors are experiencing some difficulties, but they account for a modest
proportion of these economies. Still, we recognize that economic growth in
a number of countries is struggling to regain traction due to a lack of
structural reforms. In addition, there are fears over the impact of a
stronger U.S. dollar on many emerging markets nations.
Against this backdrop, we believe any Fed rate-hiking cycle will likely be
slow and gradual, and that U.S. Treasury yields may remain range-bound at
current levels for some time. However, we believe there is a significant
story developing in Europe that could have major implications for
investors.
The political backdrop in Europe is arguably as problematic as it has been
for many years. The list of concerns includes a migrant crisis that is
putting enormous pressure on German Chancellor Merkel, and which could have
serious consequences for European trade. In Italy, the "bad bank" situation
lingers, meaning that the Italian economy will likely continue to stagnate.
Spain, in effect, is without a government, the problems in Greece are
nowhere near a resolution, and citizens in the U.K. will soon be facing a
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 7
referendum on exiting the common market altogether. Given the many sources
of uncertainty, among other consequences, we believe peripheral European
sovereign bonds may at some stage become vulnerable to substantial spread
widening. (Credit spreads are commonly referred to as the differences in
yields between Treasuries and other types of fixed-income securities with
similar maturities.)
We will continue to monitor those and other macroeconomic factors closely
as we seek to inform our decisions regarding the various positions
implemented within the alpha portion of the portfolio.
Please refer to the Schedule of Investments on pages 18-26 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity, and heightened
uncertainty. These conditions may continue, recur, worsen, or spread.
Pioneer Absolute Return Bond invests in derivatives, such as options, futures,
inverse floating-rate obligations, and swaps, among others, which can be
illiquid, may disproportionately increase losses, and have a potentially large
impact on the performance of the portfolio.
The Fund may take short positions, which involves leverage of its assets and
presents additional risks.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the Fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund employs leverage, which increases the volatility of investment returns
and subjects the Fund to magnified losses.
The Fund is subject to duration risk. Duration seeks to measure the price
sensitivity of a fixed income security to interest rates. The longer a
portfolio's duration, the more sensitive it will be to changes in interest
rates.
Investments in fixed-income securities involve interest rate, credit, inflation,
and reinvestment risks.
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 will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
8 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. 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.
Investments in high-yield or lower-rated securities are subject to
greater-than-average price volatility, illiquidity and possibility of default.
The securities issued by U.S. Government-sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
The portfolio may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
The Fund may invest in subordinated securities, which may be disproportionately
adversely affected by a default or even a perceived decline in creditworthiness
of the issuer.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund may invest in event-linked bonds and other insurance-linked securities.
The return of principal and the payment of interest on insurance-linked
securities are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude.
The Fund may invest in floating-rate loans; the value of collateral, if any,
securing a floating-rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
There is no assurance that these and other strategies used by the Fund will be
successful. The Fund is not intended to outperform stocks and bonds during
strong market rallies. Please see the prospectus for a more complete discussion
of the Fund's risks.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
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 opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 9
Portfolio Summary | 2/29/16
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)(#)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Securities 89.0%
Foreign Government Bonds 9.7%
Swaptions 1.1%
Options 0.2%
(#) The chart does not include all of the Fund's derivative investments. For
Information regarding derivative investments, see the Portfolio Management
Discussion, the Schedule of Investments and the Notes to Financial
Statements.
Geographical Diversification
--------------------------------------------------------------------------------
(As a percentage of long-term holdings based on country or domicile)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
United States 90.3%
Italy 2.9%
Ireland 2.2%
Japan 2.1%
Norway 1.6%
Germany 0.9%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)**
1. U.S. Treasury Bills, 6/30/16 24.39%
--------------------------------------------------------------------------------
2. U.S. Treasury Bills, 5/26/16 22.76
--------------------------------------------------------------------------------
3. U.S. Treasury Bills, 9/15/16 18.34
--------------------------------------------------------------------------------
4. U.S. Treasury Bills, 3/3/16 13.16
--------------------------------------------------------------------------------
5. U.S. Treasury Bills, 4/7/16 8.95
--------------------------------------------------------------------------------
6. Italy Buoni Poliennali Del Tesoro, 2.7%, 3/1/47 2.90
--------------------------------------------------------------------------------
7. Ireland Government Bond, 2.4%, 5/15/30 2.20
--------------------------------------------------------------------------------
8. Japanese Government CPI Linked Bond, 0.1%, 9/10/23 1.92
--------------------------------------------------------------------------------
9. Norway Government Bond, 1.75%, 3/13/25 1.63
--------------------------------------------------------------------------------
10. U.S. Treasury Bills, 1/5/17 1.37
--------------------------------------------------------------------------------
** This list excludes temporary cash investments and derivative instruments. Due
to the exclusion of derivatives, the list may not represent the Fund's market
exposures. See the Portfolio Management Discussion, the Schedule of
Investments and the Notes to Financial Statements. 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.
10 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
Prices and Distributions | 2/29/16
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/29/16 8/31/15
--------------------------------------------------------------------------------
A $9.16 $9.67
--------------------------------------------------------------------------------
C $9.15 $9.63
--------------------------------------------------------------------------------
K $9.18 $9.70
--------------------------------------------------------------------------------
Y $9.16 $9.69
--------------------------------------------------------------------------------
Distributions per Share: 9/1/15-2/29/16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2375 $-- $--
--------------------------------------------------------------------------------
C $0.1711 $-- $--
--------------------------------------------------------------------------------
K $0.2517 $-- $--
--------------------------------------------------------------------------------
Y $0.2697 $-- $--
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bank of America Merrill Lynch (BofA ML) 3-month US Treasury Bill Index is an
unmanaged market index of U.S. Treasury securities maturing in 90 days, that
assumes reinvestment of all income. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 12-15.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 11
Performance Update | 2/29/16 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Absolute Return Bond Fund at public
offering price during the periods shown, compared to that of the Bank of America
Merrill Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
Net Public BofA ML
Asset Offering 3-Month
Value Price U.S. Treasury
Period (NAV) (POP) Bill Index
--------------------------------------------------------------------------------
Life of Class
(1/30/14) -2.54% -4.67% 0.05%
1 Year -2.95 -7.36 0.08
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.98% 1.15%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Absolute BofA ML 3-month US
Return Bond Fund Treasury Bill Index
1/14 $9,550 $10,000
2/14 $9,484 $10,000
2/15 $9,329 $10,003
2/16 $9,054 $10,011
Call 1-800-225-6292 or visit us.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 the contractual expense limitation currently in
effect through January 1, 2017, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Absolute Return Bond Fund | Semiannual Report | 2/29/16
Performance Update | 2/29/16 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Absolute Return Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life of Class
(1/30/14) -3.24% -3.24% 0.05%
1 Year -3.63 -3.63 0.08
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.73% 1.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Absolute BofA ML 3-month US
Return Bond Fund Treasury Bill Index
1/14 $10,000 $10,000
2/14 $ 9,930 $10,000
2/15 $ 9,689 $10,003
2/16 $ 9,337 $10,011
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. 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 the contractual expense limitation currently in
effect through January 1, 2017, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Absolute Return Bond Fund | Semiannual Report | 2/29/16 13
Performance Update | 2/29/16 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class K shares of Pioneer Absolute Return Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
Net BofA ML
Asset 3-Month
Value U.S. Treasury
Period (NAV) Bill Index
--------------------------------------------------------------------------------
Life of Fund
(1/30/14) -2.37% 0.05%
1 Year -2.60 0.08
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.70% 0.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Absolute BofA ML 3-month US
Return Bond Fund Treasury Bill Index
1/14 $10,000 $10,000
2/14 $ 9,930 $10,000
2/15 $ 9,768 $10,003
2/16 $ 9,514 $10,011
Call 1-800-225-6292 or visit us.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.
The performance shown for Class K shares for the period prior to the
commencement of operations of Class K shares on December 31, 2014, is the net
asset value performance of the Fund's Class A shares, which has not been
restated to reflect any differences in expenses, including Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares generally are higher
than those of Class K shares, the performance of Class K shares prior to their
inception would have been higher than the performance shown. For the period
beginning December 31, 2014, the actual performance of Class K shares is
reflected. Class K 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 the contractual expense limitation currently in
effect through January 1, 2017, for Class K shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Absolute Return Bond Fund | Semiannual Report | 2/29/16
Performance Update | 2/29/16 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Absolute Return Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 29, 2016)
--------------------------------------------------------------------------------
Net BofA ML
Asset 3-Month
Value U.S. Treasury
Period (NAV) Bill Index
--------------------------------------------------------------------------------
Life of Class
(1/30/14) -2.26% 0.05%
1 Year -2.62 0.08
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.70% 0.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Absolute BofA ML 3-month US
Return Bond Fund Treasury Bill Index
1/14 $5,000,000 $5,000,000
2/14 $4,970,000 $5,000,029
2/15 $4,896,425 $5,001,567
2/16 $4,768,052 $5,005,434
Call 1-800-225-6292 or visit us.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 net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2017, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation 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 Absolute Return Bond Fund | Semiannual Report | 2/29/16 15
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 Absolute Return Bond Fund
Based on actual returns from September 1, 2015, through February 29, 2016.
-------------------------------------------------------------------------------------------------------
Share Class A C K Y
-------------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 9/1/15
-------------------------------------------------------------------------------------------------------
Ending Account $ 971.50 $ 967.70 $ 972.00 $ 972.80
Value (after expenses)
on 2/29/16
-------------------------------------------------------------------------------------------------------
Expenses Paid $ 4.56 $ 8.07 $ 3.68 $ 3.09
During Period*
-------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.93%,
1.65%, 0.75% and 0.63% for Class A, Class C, Class K, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 182/366 (to reflect the one half year period).
16 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
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 Absolute Return Bond Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2015, through February 29, 2016.
-------------------------------------------------------------------------------------------------------
Share Class A C K Y
-------------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 9/1/15
-------------------------------------------------------------------------------------------------------
Ending Account $1,020.24 $1,016.66 $1,021.13 $1,021.73
Value (after expenses)
on 2/29/16
-------------------------------------------------------------------------------------------------------
Expenses Paid $ 4.67 $ 8.27 $ 3.77 $ 3.17
During Period*
-------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.93%,
1.65%, 0.75% and 0.63% for Class A, Class C, Class K, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 182/366 (to reflect the one half year period).
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 17
Schedule of Investments | 2/29/16 (unaudited)
---------------------------------------------------------------------------------------------------
Principal
Amount ($) Value
---------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 102.1%
310,000 U.S. Treasury Bills, 1/5/17 (b) $ 308,516
2,970,000 U.S. Treasury Bills, 3/3/16 (b) 2,969,976
2,020,000 U.S. Treasury Bills, 4/7/16 (b) 2,019,491
5,140,000 U.S. Treasury Bills, 5/26/16 (b) 5,136,042
5,510,000 U.S. Treasury Bills, 6/30/16 (b) 5,503,788
4,150,000 U.S. Treasury Bills, 9/15/16 (b) 4,139,505
-------------
$ 20,077,318
---------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $20,077,781) $ 20,077,318
---------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 11.1%
EUR 162,403 Deutsche Bundesrepublik Inflation Linked Bond, 0.1%, 4/15/46 $ 199,359
EUR 399,000 Ireland Government Bond, 2.4%, 5/15/30 496,292
EUR 580,000 Italy Buoni Poliennali Del Tesoro, 2.7%, 3/1/47 654,136
JPY 3,388,572 Japanese Government CPI Linked Bond, 0.1%, 3/10/24 30,913
JPY 47,518,000 Japanese Government CPI Linked Bond, 0.1%, 9/10/23 433,495
NOK 3,060,000 Norway Government Bond, 1.75%, 3/13/25 367,162
-------------
$ 2,181,357
---------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $2,217,819) $ 2,181,357
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Principal Strike Expiration
Amount ($) Description Counterparty Price Date Value
---------------------------------------------------------------------------------------------------
CURRENCY CALL OPTIONS PURCHASED -- 0.2%
GBP 80,000 Call GBP Put USD Morgan Stanley
Capital Services LLC 1.4375 3/3/16 $ 1
EUR 160,000 Call EUR Put USD Goldman Sachs
International 1.1050 3/2/16 31
40,000 Call USD Put PLN Morgan Stanley
Capital Services LLC 3.9700 3/1/16 246
AUD 170,000 Call AUD Put NZD Goldman Sachs
International 1.0900 3/18/16 897
60,000 Call USD Put ZAR Morgan Stanley
Capital Services LLC 15.7000 3/4/16 1,010
120,000 Call USD Put KRW Goldman Sachs
International 1213.0000 3/2/16 2,120
230,000 Call USD Put CNY Barclays Bank Plc 6.4000 10/25/16 11,823
250,000 Call USD Put CNY Barclays Bank Plc 6.4000 10/25/16 12,851
250,000 Call USD Put CNY Deutsche Bank AG 6.4000 10/25/16 12,851
---------------------------------------------------------------------------------------------------
TOTAL CURRENCY CALL OPTIONS PURCHASED $ 41,828
-------------
(Premiums paid $15,793) $ 41,828
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
---------------------------------------------------------------------------------------------------
Principal Strike Expiration
Amount ($) Description Counterparty Price Date Value
---------------------------------------------------------------------------------------------------
CURRENCY PUT OPTIONS PURCHASED -- 0.0%+
130,000 Put USD Call TRY Goldman Sachs
International 2.650 6/28/16 $ 39
PLN 230,000 Put PLN Call HUF Goldman Sachs
International 73.450 3/3/16 1,715
60,000 Put USD Call CLP Goldman Sachs
International 700.000 11/17/16 1,913
---------------------------------------------------------------------------------------------------
TOTAL CURRENCY PUT OPTIONS PURCHASED $ 3,666
-------------
(Premiums paid $4,186) $ 3,666
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Principal Pay/ Floating Pay/ Fixed Expiration
Amount ($) Receive Rate Receive Rate Counterparty Date Value
---------------------------------------------------------------------------------------------------
CREDIT DEFAULT SWAPTIONS PURCHASED -- 0.1%
500,000 Receive USD 10Yr Pay 2.740 Morgan
ITRAXX Stanley
Capital
Services LLC 3/9/17 $ 3,086
EUR 3,100,000 Pay EUR 5Yr Receive 1.000 Barclays
ITRAXX Bank Plc 3/16/16 8,411
---------------------------------------------------------------------------------------------------
TOTAL CREDIT DEFAULT SWAPTIONS PURCHASED $ 11,497
-------------
(Premiums paid $24,777) $ 11,497
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Principal Pay/ Floating Pay/ Fixed Expiration
Amount ($) Receive Rate Receive Rate Counterparty Date Value
---------------------------------------------------------------------------------------------------
INTEREST RATE SWAPTIONS PURCHASED -- 1.3%
5,300,000 Receive USD 2Yr Pay 1.100 Morgan
Stanley
Capital
Services LLC 7/15/16 $ 9,093
EUR 625,000 Receive EUR 10 Yr Pay 0.970 Morgan
Stanley
Capital
Services LLC 2/13/17 9,684
EUR 625,000 Pay EUR 10 Yr Receive 0.970 Morgan
Stanley
Capital
Services LLC 2/13/17 30,073
1,000,000 Receive USD 30Yr Pay 2.800 Goldman
Sachs
International 5/26/17 30,931
1,000,000 Pay USD 30Yr Receive 2.800 Goldman
Sachs
International 5/26/17 171,529
---------------------------------------------------------------------------------------------------
TOTAL INTEREST RATE SWAPTIONS PURCHASED $ 251,311
-------------
(Premiums paid $253,934) $ 251,311
---------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 114.8%
(Cost $22,594,290) (a) $ 22,566,977
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 19
Schedule of Investments | 2/29/16 (unaudited) (continued)
---------------------------------------------------------------------------------------------------
Principal Pay/ Floating Pay/ Fixed Expiration
Amount ($) Receive Rate Receive Rate Counterparty Date Value
---------------------------------------------------------------------------------------------------
INTEREST RATE SWAPTIONS WRITTEN -- (1.0)%
GBP (600,000) Pay GBP 30Yr Receive 2.30 Goldman
Sachs
International 5/26/17 $ (168,374)
GBP (600,000) Receive GBP 30Yr Pay 2.30 Goldman
Sachs
International 5/26/17 (19,227)
(7,950,000) Receive USD 2yr Pay 1.40 Morgan
Stanley
Capital
Services LLC 7/15/16 (4,162)
-------------
$ (191,763)
---------------------------------------------------------------------------------------------------
TOTAL INTEREST RATE SWAPTIONS WRITTEN
(Premiums received $(198,363)) $ (191,763)
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Principal Strike Expiration
Amount ($) Description Counterparty Price Date Value
---------------------------------------------------------------------------------------------------
CURRENCY CALL OPTIONS WRITTEN -- (0.0)%+
(120,000) Call USD Put ZAR Morgan Stanley
Capital Services LLC 15.95 3/4/16 $ (1,064)
(80,000) Call USD Put CNY Morgan Stanley
Capital Services LLC 7.00 8/23/16 (974)
(130,000) Call USD Put TRY Goldman Sachs
International 3.70 6/28/16 (366)
(80,000) Call USD Put PLN Morgan Stanley
Capital Services LLC 4.00 3/1/16 (72)
PLN (230,000) Call PLN Put HUF Goldman Sachs
International 75.00 3/3/16 --
-------------
$ (2,477)
---------------------------------------------------------------------------------------------------
TOTAL CURRENCY CALL OPTIONS WRITTEN
(Premiums received $(4,581)) $ (2,477)
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Principal Strike Expiration
Amount ($) Description Counterparty Price Date Value
---------------------------------------------------------------------------------------------------
CURRENCY PUT OPTIONS WRITTEN -- (0.0)%+
PLN (230,000) Put PLN Call HUF Goldman Sachs
International 72.25 3/3/16 $ (755)
AUD (170,000) Put AUD Call NZD Goldman Sachs
International 1.065 3/18/16 (429)
-------------
$ (1,184)
---------------------------------------------------------------------------------------------------
TOTAL CURRENCY PUT OPTIONS WRITTEN
(Premiums received $(845)) $ (1,184)
---------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- (13.8)% $ (2,709,719)
---------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 19,661,834
===================================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
+ Amount rounds to less than 0.1% or (0.1)%.
(a) At February 29, 2016, the net unrealized depreciation on investments
based on cost for federal income tax purposes of $22,594,290 was as
follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 155,468
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (182,781)
-----------
Net unrealized depreciation $ (27,313)
===========
(b) Security issued with a zero coupon. Income is earned through
accretion of discount.
Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
AUD Australian Dollar
CLP Chilean Peso
CNY New Chinese Yuan
EUR European Euro
GBP British Pound Sterling
HUF Hungarian Forint
JPY Japanese Yen
KRW New Korean Won
NOK Norwegian Krone
NZD New Zealand Dollar
PLN Polish Zloty
TRY Turkish Lira
ZAR South African Dollar
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 29, 2016 aggregated $1,007,207 and $3,684,633,
respectively.
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENT -- BUY PROTECTION
------------------------------------------------------------------------------------------------------
Notional Obligation Expiration Premiums Unrealized
Principal ($) Exchange Entity/Index Coupon Date Paid (Depreciation)
------------------------------------------------------------------------------------------------------
EUR (1,500,000) Intercontinental Markit iTraxx
Exchange Europe Index 1.00% 12/20/20 $ 7,076 $(10,682)
======================================================================================================
NOTE: Principal amounts are denominated in U.S. Dollars unless
otherwise noted:
EUR Euro
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 21
Schedule of Investments | 2/29/16 (unaudited) (continued)
CROSS CURRENCY SWAP AGREEMENT
------------------------------------------------------------------------------------------------------
Annual
Notional Floating Fixed Expiration Unrealized
Principal ($) Counterparty Pay Receive Rate Rate Date (Depreciation)
------------------------------------------------------------------------------------------------------
SEK 5,497,600 Barclays Bank
Plc CHF SEK STIBOR Fix 3M 0.00% 1/16/24 $(10,969)
======================================================================================================
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
SEK Swedish Koruna
CHF Swiss Franc
INFLATION RATE SWAP AGREEMENTS
------------------------------------------------------------------------------------------------------
Net
Unrealized
Notional Pay/ Annual Expiration Appreciation
Principal ($) Counterparty Receive Index Fixed Rate Date (Depreciation)
------------------------------------------------------------------------------------------------------
EUR (600,000) Goldman Sachs
International Receive EUCPI 1.209% 2/5/25 $ (9,714)
EUR 600,000 Goldman Sachs
International Pay EUCPI 0.770% 2/5/20 4,225
EUR (800,000) Goldman Sachs
International Receive EUCPI 0.860% 12/1/18 (12,757)
EUR 510,000 Goldman Sachs
International Pay EUCPI 1.548% 6/30/25 38,147
EUR 350,000 Goldman Sachs
International Pay EUCPI 0.839% 8/17/20 6,574
EUR (350,000) Goldman Sachs
International Receive EUCPI 0.839% 8/17/25 (14,177)
EUR (275,000) Morgan Stanley
Capital Services LLC Receive EUCPI 1.078% 5/22/19 (7,135)
EUR (300,000) Morgan Stanley
Capital Services LLC Receive EUCPI 0.988% 5/29/19 (6,559)
EUR (367,500) Morgan Stanley
Capital Services LLC Receive EUCPI 1.238% 2/7/19 (19,453)
994,250 Credit Suisse
International Pay USCPI 2.145% 2/7/19 50,897
79,000 Morgan Stanley
Capital Services LLC Pay USCPI 1.508% 11/9/20 510
------------------------------------------------------------------------------------------------------
Total $ 30,558
======================================================================================================
EUCPI Eurostat Eurozone HICP Ex Tobacco Unrevised Series NSA
USCPI United States Consumer Price Index
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EUR Euro
The accompanying notes are an integral part of these financial statements.
22 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
INTEREST RATE SWAP AGREEMENTS
-------------------------------------------------------------------------------------------------------------------------
Net
Annual Premiums Unrealized
Notional Pay/ Floating Fixed Expiration Received Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Paid) (Depreciation)
-------------------------------------------------------------------------------------------------------------------------
AUD (588,500) Morgan Stanley LIBOR AUD
Capital Services LLC Receive 3 Month 3.280% 1/13/25 -- $ (10,390)
AUD (611,800) Morgan Stanley LIBOR AUD
Capital Services LLC Receive 3 Month 3.160% 2/5/25 -- (8,178)
AUD 640,000 Deutsche Bank Receive LIBOR AUD
6 Month 2.980% 11/26/25 -- 20,303
AUD 638,000 Morgan Stanley LIBOR AUD
Capital Services LLC Pay 6 Month 2.870% 1/13/16 (35) 15,256
AUD 300,000 Deutsche Bank Pay LIBOR AUD
6 Month 2.840% 1/25/26 -- 6,983
AUD 246,750 Deutsche Bank Pay LIBOR AUD
6 Month 2.740% 2/3/26 -- 4,046
AUD (74,000) Morgan Stanley LIBOR AUD
Capital Services LLC Receive 6 Month 2.980% 2/10/26 -- (311)
CAD (1,154,000) Goldman Sachs Canadian 3 Month
International Receive Prime Lending Rate 1.270% 7/17/20 -- (16,158)
CAD (1,154,000) Goldman Sachs Canadian 3 Month
International Receive Prime Lending Rate 1.260% 7/17/20 -- (15,781)
CNY (6,850,000) Goldman Sachs China 7 Day
International Receive Fixing Rate 2.210% 1/25/18 -- (602)
CNY (6,800,000) Goldman Sachs China 7 Day
International Receive Fixing Rate 2.210% 1/29/18 -- (671)
EUR 660,000 Deutsche Bank Pay EURIBOR 6 Month 1.800% 12/15/54 -- 43,875
EUR (970,000) Deutsche Bank Receive EURIBOR 6 Month 1.530% 12/15/64 -- (61,807)
EUR (510,000) Deutsche Bank Receive EURIBOR 6 Month 0.980% 2/16/65 -- (12,138)
EUR 400,000 Deutsche Bank Pay EURIBOR 6 Month 1.320% 2/16/55 -- 11,626
EUR 1,105,000 Deutsche Bank Pay EONIA 1 Day
Interbank Rate 0.730% 3/20/45 -- (16,309)
EUR (1,375,000) Deutsche Bank Receive EURIBOR 6 Month 0.920% 3/20/45 -- 10,223
EUR 275,000 Deutsche Bank Pay EURIBOR 6 Month 0.270% 5/22/19 -- 4,921
EUR (300,000) Deutsche Bank Pay EURIBOR 6 Month 0.260% 5/29/19 -- 5,254
EUR (250,000) Deutsche Bank Receive EURIBOR 6 Month 1.650% 3/20/45 -- (49,735)
EUR 200,000 Deutsche Bank Pay EONIA 1 Day
Interbank Rate 1.490% 3/20/45 -- 41,860
EUR 310,000 Deutsche Bank Pay EURIBOR 6 Month 1.820% 12/15/54 21,136
EUR (230,000) Deutsche Bank Receive EURIBOR 6 Month 1.480% 12/15/64 -- (13,836)
EUR 1,310,000 Deutsche Bank Pay EONIA 1 Day
Interbank Rate 0.760% 11/25/24 -- 89,774
EUR 1,850,000 Deutsche Bank Receive EURIBOR 6 Month 0.270% 1/11/20 -- 12,890
EUR (780,000) Deutsche Bank Receive EURIBOR 6 Month 0.870% 1/12/26 -- (33,559)
EUR (300,000) Deutsche Bank Receive EURIBOR 6 Month 1.510% 1/12/46 -- (45,753)
EUR 790,000 Deutsche Bank Pay EONIA 1 Day
Interbank Rate 1.280% 1/12/36 -- 92,457
EUR 1,800,000 Deutsche Bank Pay EURIBOR 6 Month 0.310% 1/15/20 -- 14,161
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 23
Schedule of Investments | 2/29/16 (unaudited) (continued)
INTEREST RATE SWAP AGREEMENTS (continued)
-------------------------------------------------------------------------------------------------------------------------
Net
Annual Premiums Unrealized
Notional Pay/ Floating Fixed Expiration Received Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Paid) (Depreciation)
-------------------------------------------------------------------------------------------------------------------------
EUR 810,000 Deutsche Bank Pay EONIA 1 Day
Interbank Rate 1.270% 1/21/36 -- $ 92,078
EUR 275,000 Deutsche Bank Pay EONIA 1 Day
Interbank Rate 1.270% 3/20/45 -- 36,432
EUR 372,500 Morgan Stanley
Capital Services LLC Pay EURIBOR 6 Month 1.004% 2/7/19 14,531
HKD (6,300,000) Goldman Sachs Hong Kong
International Receive 3 Month HIBOR 1.540% 2/18/21 79 (6,281)
HKD (3,200,000) Goldman Sachs Hong Kong
International Receive 3 Month HIBOR 1.500% 2/19/21 39 (706)
JPY (33,820,000) Deutsche Bank Receive LIBOR JPY 6 Month 0.620% 10/10/24 -- (15,625)
JPY (238,000,000) Deutsche Bank Receive LIBOR JPY 6 Month 0.140% 1/11/20 -- (14,149)
JPY (230,000,000) Deutsche Bank Receive LIBOR JPY 6 Month 0.140% 1/15/20 -- (13,491)
JPY 120,000,000 Deutsche Bank Receive LIBOR JPY 6 Month 0.020% 2/22/23 -- (4,303)
NZD 702,000 Morgan Stanley NZD Bank
Capital Services LLC Pay Bill 3 Month 3.850% 1/13/25 -- 8,544
NZD 711,000 Morgan Stanley NZD Bank Bill
Capital Services LLC Pay 3 Month 3.760% 2/7/25 6,869
SEK 2,075,000 Barclays Bank Plc Pay LIBOR SEK
3 Month 0.760% 6/22/20 8,996
SEK 2,390,000 Goldman Sachs LIBOR SEK
International Pay 3 Month 0.650% 7/16/20 -- 8,495
SEK 4,900,000 Barclays Bank Plc Pay LIBOR SEK
3 Month 0.500% 8/11/20 -- 12,418
SEK 2,252,000 Barclays Bank Plc Pay LIBOR SEK
3 Month 0.460% 8/21/20 -- 5,125
SEK 2,295,000 Goldman Sachs LIBOR SEK
International Pay 3 Month 0.490% 11/17/20 -- 4,890
SEK 2,330,000 Goldman Sachs LIBOR SEK
International Pay 3 Month 0.420% 11/25/20 -- 4,002
SEK 2,265,000 Barclays Bank Plc Pay LIBOR SEK
3 Month 0.420% 12/2/20 -- 3,986
THB (17,000,000) Morgan Stanley Thailand Prime
Capital Services LLC Receive Lending Rate
6 Month 1.880% 2/18/21 -- 2,004
THB (17,000,000) Goldman Sachs Thailand Prime
International Receive Lending Rate
6 Month 1.890% 2/18/21 -- 1,777
THB (17,000,000) Goldman Sachs Thailand Prime
International Receive Lending Rate
6 Month 1.890% 2/18/21 -- 1,777
(1,690,000) Deutsche Bank Receive LIBOR USD
3 Month 3.040% 11/28/22 -- (103,135)
3,130,000 Deutsche Bank Pay LIBOR USD
3 Month 2.250% 11/28/18 -- 78,210
The accompanying notes are an integral part of these financial statements.
24 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
INTEREST RATE SWAP AGREEMENTS (continued)
--------------------------------------------------------------------------------------------------------------
Net
Annual Premiums Unrealized
Notional Pay/ Floating Fixed Expiration Received Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Paid) (Depreciation)
--------------------------------------------------------------------------------------------------------------
3,150,000 Deutsche Bank Pay LIBOR USD
3 Month 1.810% 1/23/19 -- $ 49,491
(1,630,000) Deutsche Bank Receive LIBOR USD
3 Month 2.340% 1/23/23 (43,031)
(259,500) Deutsche Bank Receive LIBOR USD
3 Month 1.820% 6/19/20 -- (8,634)
(286,000) Deutsche Bank Receive LIBOR USD
3 Month 1.830% 7/16/20 -- (9,601)
(574,000) Deutsche Bank Receive LIBOR USD
3 Month 1.750% 8/11/20 -- (17,051)
(270,000) Deutsche Bank Receive LIBOR USD
3 Month 1.690% 8/21/20 -- (7,254)
(80,000) Deutsche Bank Receive LIBOR USD
3 Month 1.540% 11/9/20 -- (2,002)
(264,000) Deutsche Bank Receive LIBOR USD
3 Month 1.610% 11/17/20 -- (7,439)
(266,000) Deutsche Bank Receive LIBOR USD
3 Month 1.590% 11/25/20 -- (6,864)
(460,000) Deutsche Bank Receive LIBOR USD
3 Month 2.090% 11/27/25 -- (24,964)
(259,000) Deutsche Bank Receive LIBOR USD
3 Month 1.550% 12/2/20 -- (5,951)
(900,000) Deutsche Bank Receive LIBOR USD
3 Month 2.015% 1/7/26 -- (50,566)
(434,000) Deutsche Bank Receive LIBOR USD
3 Month 1.970% 1/14/26 -- (16,863)
(200,000) Deutsche Bank Receive LIBOR USD
3 Month 1.910% 1/26/26 -- (6,554)
(147,500) Deutsche Bank Receive LIBOR USD
3 Month 1.810% 2/4/26 -- (3,360)
(1,015,000) Deutsche Bank Receive LIBOR USD
3 Month 1.590% 2/7/19 (20,342)
--------------------------------------------------------------------------------------------------------------
Total $ 83 $ 60,996
==============================================================================================================
Principal amounts are denominated in U.S. Dollars unless
otherwise noted:
AUD Australian Dollar
CAD Canadian Dollar
CNY New Chinese Yuan
EUR Euro
HKD Hong Kong Dollar
JPY Japanese Yen
NZD New Zealand Dollar
SEK Swedish Krone
THB Thai Baht
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 25
Schedule of Investments | 2/29/16 (unaudited) (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.
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.) See Notes to Financial Statements -- Note 1A.
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of February 29, 2016, in
valuing the Fund's assets:
--------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------
U.S. Government and Agency Obligations $ -- $ 20,077,318 $ -- $20,077,318
Foreign Government Bonds -- 2,181,357 -- 2,181,357
Currency Call Options Purchased -- 41,828 -- 41,828
Currency Put Options Purchased -- 3,666 -- 3,666
Credit Default Swaptions Purchased -- 11,497 -- 11,497
Interest Rate Swaptions Purchased -- 251,311 -- 251,311
--------------------------------------------------------------------------------------------
Total $ -- $ 22,566,977 $ -- $22,566,977
============================================================================================
Other Financial Instruments
Net unrealized depreciation
on futures contracts $ (157,624) $ -- $ -- $ (157,624)
Unrealized appreciation on
forward foreign currency contracts -- 161,906 -- 161,906
Unrealized depreciation on forward
foreign currency contracts -- (226,767) -- (226,767)
Net unrealized depreciation on
centrally cleared credit default
swap contracts -- (10,682) -- (10,682)
Net unrealized depreciation on
cross currency swaps -- (10,969) -- (10,969)
Net unrealized appreciation on
inflation swaps -- 30,558 -- 30,558
Net unrealized appreciation on
interest rate swaps -- 60,996 -- 60,996
Currency call options written -- (2,477) -- (2,477)
Currency put options written -- (1,184) -- (1,184)
Interest rate swaptions written -- (191,763) -- (191,763)
--------------------------------------------------------------------------------------------
Total Other Financial Instruments $ (157,624) $ (190,382) $ -- $ (348,006)
============================================================================================
During the six months ended February 29, 2016, there were no transfers between
Levels 1, 2 and 3.
The following is a summary of the fair valuation of certain Fund's assets as of
February 29, 2016:
--------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------
Assets:
Foreign currencies, at value
(cost $220,724) $ -- $ 226,990 $ -- $ 226,990
Restricted cash -- 413,979 -- 413,979
Variation margin for centrally
cleared swap contracts -- 57,628 -- 57,628
Liabilities:
Variation margin for futures contracts (16,765) -- -- (16,765)
--------------------------------------------------------------------------------------------
Total $ (16,765) $ 698,597 $ -- $ 681,832
============================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
Statement of Assets and Liabilities | 2/29/16 (unaudited)
ASSETS:
Investment in securities, at value (cost $22,594,290) $22,566,977
Cash 305,058
Foreign currencies, at value (cost $220,724) 226,990
Restricted cash* 413,979
Receivables --
Investment securities sold 2,017,418
Interest 16,402
Swap contracts receivable 2,680
Swap contracts, premiums paid 7,159
Variation margin on centrally cleared swap contracts 57,628
Due from Pioneer Investment Management, Inc. 65,245
Unrealized appreciation on forward foreign currency contracts 161,906
Net unrealized appreciation on swap contracts 69,903
Other assets 36,196
-------------------------------------------------------------------------------------
Total assets $25,947,541
=====================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 5,504,901
Fund shares redeemed 4,000
Trustee fees 1,134
Distributions 5
Futures payable 37,819
Swap payable 18,883
Written options and written swaptions (premiums received $203,789) 195,424
Variation margin for futures contracts 16,765
Unrealized depreciation on forward foreign currency contracts 226,767
Net unrealized depreciation on futures contracts 157,624
Due to affiliates 12,193
Accrued expenses 110,192
-------------------------------------------------------------------------------------
Total liabilities $ 6,285,707
=====================================================================================
NET ASSETS:
Paid-in capital $21,410,589
Distributions in excess of net investment income (120,790)
Accumulated net realized loss on investments, futures contracts, swap
contracts, written options and swaptions and foreign currency
transactions (1,452,747)
Net unrealized depreciation on investments (27,313)
Net unrealized depreciation on futures contracts (157,624)
Net unrealized appreciation on swap contracts 69,903
Net unrealized appreciation on written options and written swaptions 8,365
Net unrealized depreciation on forward foreign currency contracts
and other assets and liabilities denominated in foreign currencies (68,549)
-------------------------------------------------------------------------------------
Total net assets $19,661,834
=====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $7,014,607/765,843 shares) $ 9.16
Class C (based on $6,508,817/711,599 shares) $ 9.15
Class K (based on $9,521/1,037 shares) $ 9.18
Class Y (based on $6,128,889/669,261 shares) $ 9.16
MAXIMUM OFFERING PRICE:
Class A ($9.16 (divided by) 95.5%) $ 9.59
=====================================================================================
* Represents restricted cash deposited at the counterparty for derivative
contracts.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 27
Statement of Operations (unaudited)
For the six months ended 2/29/16
INVESTMENT INCOME:
Interest $ 18,371
----------------------------------------------------------------------------------------------------
Total investment income $ 18,371
----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 60,465
Distribution fees
Class A 9,061
Class C 33,021
Transfer agent fees
Class A 421
Class C 360
Class K 5
Class Y 240
Shareholder communication expense 1,761
Administrative expense 12,098
Custodian fees 31,967
Registration fees 27,835
Professional fees 85,153
Printing expense 9,110
Fees and expenses of nonaffiliated Trustees 3,519
Pricing fees 35,503
Miscellaneous 2,655
----------------------------------------------------------------------------------------------------
Total expenses $ 313,174
Less fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (205,018)
----------------------------------------------------------------------------------------------------
Net expenses $ 108,156
----------------------------------------------------------------------------------------------------
Net investment loss $ (89,785)
----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP CONTRACTS, FUTURES CONTRACTS, WRITTEN OPTIONS AND
WRITTEN SWAPTIONS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments $ (198,614)
Swap contracts (291,398)
Futures contracts (246,366)
Written options and written swaptions 40,304
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 114,042 $ (582,032)
----------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 179,782
Swap contracts 60,453
Futures contracts (217,039)
Written options and written swaptions 25,150
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 40,821 $ 89,167
----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments, swap contracts,
futures contracts, written options and written swaptions
and foreign currency transactions $ (492,865)
----------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (582,650)
====================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------------
Six Months
Ended Year
2/29/16 Ended
(unaudited) 8/31/15
----------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ (89,785) $ (162,466)
Net realized gain (loss) on investments, swap contracts,
futures contracts, written options and written swaptions and
foreign currency transactions (582,032) 446,075
Change in net unrealized appreciation (depreciation) on
investments, swap contracts, futures contracts, written
options and written swaptions and foreign currency transactions 89,167 (584,032)
----------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (582,650) $ (300,423)
----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.24 and $0.09 per share, respectively) $ (181,114) $ (58,842)
Class C ($0.17 and $0.02 per share, respectively) (120,564) (13,546)
Class K* ($0.25 and $0.00 per share, respectively) (261) --
Class Y ($0.27 and $0.11 per share, respectively) (180,482) (75,000)
----------------------------------------------------------------------------------------------
Total distributions to shareowners $ (482,421) $ (147,388)
----------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:(a)
Net proceeds from sale of shares $ 339,423 $ 2,868,119
Reinvestment of distributions 29,953 1,055
Cost of shares repurchased (490,762) (1,359,740)
----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Fund
share transactions $ (121,386) $ 1,509,434
----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (1,186,457) $ 1,061,623
NET ASSETS:
Beginning of period 20,848,291 19,786,668
----------------------------------------------------------------------------------------------
End of period $ 19,661,834 $20,848,291
----------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net investment income $ (120,790) $ 451,416
==============================================================================================
(a) At February 29, 2016 PIM owned 93.2% of the value of the outstanding shares
of Pioneer Absolute Return Bond Fund.
* Class K shares commenced operations on December 31, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 29
Statements of Changes in Net Assets (continued)
---------------------------------------------------------------------------------------
Six Months Six Months
Ended Ended
2/29/16 2/29/16 Year Ended Year Ended
Shares Amount 8/31/15 8/31/15
(unaudited) (unaudited) Shares Amount
---------------------------------------------------------------------------------------
Class A
Shares sold 25,625 $ 215,405 232,901 $ 2,278,455
Reinvestment of distributions 2,450 22,761 39 375
Less shares repurchased (42,083) (398,112) (121,682) (1,179,105)
---------------------------------------------------------------------------------------
Net increase (decrease) (14,008) $ (159,946) 111,258 $ 1,099,725
=======================================================================================
Class C
Shares sold 13,370 $ 123,518 56,774 $ 555,464
Reinvestment of distributions 701 6,512 70 680
Less shares repurchased (9,825) (92,143) (16,158) (156,514)
---------------------------------------------------------------------------------------
Net increase 4,246 $ 37,887 40,686 $ 399,630
=======================================================================================
Class K*
Shares sold -- $ -- 1,037 $ 10,000
Reinvestment of distributions -- -- -- --
Less shares repurchased -- -- -- --
---------------------------------------------------------------------------------------
Net increase -- $ -- 1,037 $ 10,000
=======================================================================================
Class Y
Shares sold 54 $ 500 2,522 $ 24,200
Reinvestment of distributions 73 680 -- --
Less shares repurchased (55) (507) (2,429) (24,121)
---------------------------------------------------------------------------------------
Net increase 72 $ 673 93 $ 79
=======================================================================================
* Class K shares commenced operations on December 31, 2014.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
Financial Highlights
-----------------------------------------------------------------------------------------
Six Months
Ended Year
2/29/16 Ended 1/30/14
(unaudited) 8/31/15 to 8/31/14
-----------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.67 $ 9.88 $ 10.00
-----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.03)(a) $ (0.03) $ (0.02)
Net realized and unrealized gain (loss)
on investments (0.24) (0.09) (0.10)
-----------------------------------------------------------------------------------------
Net increase (decrease) from
investment operations $ (0.27) $ (0.12) $ (0.12)
-----------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.24) $ (0.09) $ --
-----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.51) $ (0.21) $ (0.12)
-----------------------------------------------------------------------------------------
Net asset value, end of period $ 9.16 $ 9.67 $ 9.88
=========================================================================================
Total return* (2.85)% (1.24)% (1.20)%***
Ratio of net expenses to average net assets 0.93%** 1.03% 1.01%**
Ratio of net investment income (loss) to
average net assets (0.74)%** (0.58)% (0.29)%**
Portfolio turnover rate 58%** 99% 62%**
Net assets, end of period (in thousands) $ 7,015 $ 7,544 $ 6,606
Ratios with no waiver of fees and assumption
of expenses by the Adviser and no reduction
for fees paid indirectly:
Total expenses to average net assets 2.96%** 2.98% 2.61%**
Net investment income (loss) to average
net assets (2.77)%** (2.53)% (1.89)%**
=========================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not annualized.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 31
Financial Highlights (continued)
---------------------------------------------------------------------------------------
Six Months
Ended Year
2/29/16 Ended 1/30/14
(unaudited) 8/31/15 to 8/31/14
---------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.63 $ 9.84 $ 10.00
---------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.07)(a) $ (0.13) $ (0.06)
Net realized and unrealized gain (loss)
on investments (0.24) (0.06) (0.10)
---------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ (0.31) $ (0.19) $ (0.16)
---------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.17) $ (0.02) $ --
---------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.48) $ (0.21) $ (0.16)
---------------------------------------------------------------------------------------
Net asset value, end of period $ 9.15 $ 9.63 $ 9.84
=======================================================================================
Total return* (3.23)% (1.94)% (1.60)%***
Ratio of net expenses to average net assets 1.65%** 1.78% 1.75%**
Ratio of net investment income (loss) to
average net assets (1.47)%** (1.41)% (1.03)%**
Portfolio turnover rate 58%** 99% 62%**
Net assets, end of period (in thousands) $ 6,509 $ 6,810 $ 6,559
Ratios with no waiver of fees and assumption
of expenses by the Adviser and no reduction
for fees paid indirectly:
Total expenses to average net assets 3.69%** 3.73% 3.35%**
Net investment income (loss) to average
net assets (3.51)%** (3.36)% (2.63)%**
=======================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not annualized.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
----------------------------------------------------------------------------------------
Six Months
Ended
2/29/16 12/31/14
(unaudited) to 8/31/15
----------------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 9.70 $ 9.64
----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.03)(b) $ (0.09)
Net realized and unrealized gain (loss) on investments (0.24) 0.15(a)
----------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.27) $ 0.06
----------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.25) $ --
----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.52) $ 0.06
----------------------------------------------------------------------------------------
Net asset value, end of period $ 9.18 $ 9.70
========================================================================================
Total return* (2.80)% 0.62%***
Ratio of net expenses to average net assets 0.75%** 0.75%**
Ratio of net investment income (loss) to average net assets (0.57)%** (1.34)%**
Portfolio turnover rate 58%** 99%
Net assets, end of period (in thousands) $ 10 $ 10
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 2.78%** 2.70%**
Net investment income (loss) to average net assets (2.60)%** (3.29)%**
========================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
*** Not annualized.
(a) The amount shown for a share outstanding does not correspond with the
aggregate loss on investments for the period due to the timing of sales and
repurchases of shares in relation to fluctuating market values of the
investments of the Fund.
(b) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 33
Financial Highlights (continued)
-----------------------------------------------------------------------------------------
Six Months
Ended Year
2/29/16 Ended 1/30/14
(unaudited) 8/31/15 to 8/31/14
-----------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.69 $ 9.90 $ 10.00
-----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.02)(b) $ (0.04) $ (0.00)(a)
Net realized and unrealized gain (loss)
on investments (0.24) (0.06) (0.10)
-----------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ (0.26) $ (0.10) $ (0.10)
-----------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.27) $ (0.11) $ --
-----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.53) $ (0.21) $ (0.10)
-----------------------------------------------------------------------------------------
Net asset value, end of period $ 9.16 $ 9.69 $ 9.90
=========================================================================================
Total return* (2.72)% (0.98)% (1.00)%***
Ratio of net expenses to average net assets 0.63%** 0.75% 0.75%**
Ratio of net investment income (loss) to
average net assets (0.45)%** (0.39)% (0.03)%**
Portfolio turnover rate 58%** 99% 62%**
Net assets, end of period (in thousands) $ 6,129 $ 6,485 $ 6,621
Ratios with no waiver of fees and assumption
of expenses by the Adviser and no reduction
for fees paid indirectly:
Total expenses to average net assets 2.67%** 2.70% 2.36%**
Net investment income (loss) to average
net assets (2.49)%** (2.34)% (1.64)%**
=========================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
*** Not annualized.
(a) Amount rounds to less than $0.01 or $(0.01) per share.
(b) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
Notes to Financial Statements | 2/29/16 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Absolute Return Bond Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, 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's investment objective is to seek total
return.
The Fund offers four classes of shares designated as Class A, Class C, Class K
and Class Y shares. Class A, Class C and Class Y shares commenced operations on
January 30, 2014. Class K shares commenced operations on December 31, 2014. 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 K or
Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements:
A. Security Valuation
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.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 35
Fixed income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed income securities and/or other
factors. Valuations may be supplemented by dealers and other sources, as
required. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service.
Foreign securities are valued in U.S. dollars based on foreign currency
exchange rate quotations supplied by a third party pricing service. Trading
in non-U.S. equity securities is substantially completed each day at
various times prior to the close of the NYSE. The values of such securities
used in computing the net asset value of the Fund's shares are determined
as of such times. The fund may use a fair value model developed by an
independent pricing service to value non-U.S. equity securities.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealer association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Futures contracts are generally valued at the closing settlement price
established by the exchange on which they are traded.
Options contracts are generally valued at the mean between the last bid and
ask prices on the principal exchange where they are traded.
Over-the-counter ("OTC") options and options on swaps ("swaptions") are
valued using prices supplied by independent pricing services, which
consider such factors as market prices, market events, quotations from one
or more brokers, Treasury spreads, yields, maturities and ratings, or may
use a pricing matrix or other fair value methods or techniques to provide
an estimated value of the security or instrument.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate, in each case provided by a third party pricing service.
Contracts whose forward settlement date falls between two quoted days are
valued by interpolation.
36 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
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 by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. PIM's fair
valuation team is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair values on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
At February 29, 2016, there were no securities valued using fair value
methods (other than securities valued using prices supplied by independent
pricing services, broker-dealers or using a third party insurance industry
pricing model).
B. Investment Income and Transactions
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
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.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 37
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency 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 the market price of those securities but are
included with the net realized and unrealized gain or loss on investments.
D. Futures Contracts
The Fund may enter into futures transactions in order to attempt 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. All futures contracts entered into by the Fund 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. The amount of cash deposited with the broker as collateral at
February 29, 2016 was $143,579 and is recorded within "Restricted Cash" on
the Statement of Assets and Liabilities. 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 appreciation or depreciation. When the contract is
closed, the Fund realizes a gain or loss equal to the difference between
the opening and closing value of the contract as well as any fluctuation in
foreign currency exchange rates where applicable. The use of futures
contracts involves, to varying degrees, elements of market, interest rate,
currency exchange rate and counterparty risks, which may exceed the amount
recognized by the Fund. Changes in value of the contracts may not directly
correlate to the changes in value of the underlying securities. The average
value of contracts open during the six months ended February 29, 2016 was
$(4,547,698).
38 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
At February 29, 2016, open futures contracts were as follows:
--------------------------------------------------------------------------------------
Unrealized
Contracts Settlement Appreciation/
Type Counterparty Long/(Short) Month/Year Value (Depreciation)
--------------------------------------------------------------------------------------
Australia UBS AG 11 3/16 $ 1,035,159 $ 3,431
10 Yr Bond
Euro BOBL UBS AG 7 3/16 1,016,375 11,096
Euro Bund UBS AG 8 3/16 1,451,245 9,837
U.S. 10 Yr UBS AG 4 3/16 523,625 412
Note
U.S. 5 Yr UBS AG 15 6/16 1,814,766 (2,695)
Note
U.S. Ultra UBS AG 1 6/16 173,155 (1,648)
Bond
Australia UBS AG (35) 3/16 (2,808,862) (1,709)
3 Yr Bond
Euro BUXL UBS AG (5) 3/16 (924,561) (73,554)
30 Yr Bond
Euro OAT UBS AG (12) 3/16 (2,050,108) (84,157)
Euro BTP UBS AG (25) 6/16 (3,770,390) (13,476)
U.S. 10 Yr UBS AG (4) 3/16 (523,625) (5,161)
Note
--------------------------------------------------------------------------------------
Total $(4,063,221) $(157,624)
======================================================================================
E. 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 appreciation or depreciation
is recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
F. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no federal income tax provision is required. As
of August 31, 2015, the Fund did not accrue any interest or penalties with
respect to uncertain tax positions, which, if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax returns filed
within the prior three years remain subject to examination by federal and
state tax authorities.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 39
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the fiscal year ended August 31, 2015 was as follows:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $147,388
---------------------------------------------------------------------------
Total $147,388
===========================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at August 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 362,041
Capital loss carryforward (838,466)
Unrealized depreciation (207,259)
---------------------------------------------------------------------------
Total $(683,684)
===========================================================================
The difference between book-basis and tax-basis net unrealized depreciation
is attributable to the tax adjustments relating to credit default swaps and
the mark to market of futures contracts and credit default swaps.
G. 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 $576 in underwriting commissions on the sale of Class A
shares during the six months ended February 29, 2016.
H. 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.
40 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
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 K or Class Y shares do not pay distribution fees. All
expenses and fees paid to the Fund's transfer agent, 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).
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, Class K and Class Y shares
can reflect different transfer agent and distribution expense rates.
I. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
J. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price upon
the exercise of the option. 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 value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the
underlying security in determining whether the Fund has realized a gain or
loss. The Fund as writer of an option bears the market risk of an
unfavorable change in the price of the security underlying the written
option.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 41
The average value of written option contracts open during the six months
ended February 29, 2016 was $(2,586). Written option contracts outstanding
at February 29, 2016 are listed in the schedule of investments.
The Fund held seven written options that were open at February 29, 2016. If
the options were exercised at February 29, 2016, the maximum amount the
Fund would have been required to pay was $5,426.
Transactions in written options for the six months ended February 29, 2016
are summarized as follows:
---------------------------------------------------------------------------
Number of Premiums
Contracts Received
---------------------------------------------------------------------------
Options open at beginning of period (210,000) $(3,339)
Options opened (2,270,000) (7,295)
Options exercised -- --
Options closed -- --
Options expired 1,440,000 5,208
---------------------------------------------------------------------------
Options open at end of period (1,040,000) $(5,426)
===========================================================================
K. Purchased Options
The Fund may purchase put and call options to seek increase total return.
Purchased call and put options entitle the Fund to buy and sell a specified
number of shares or units of a particular security, currency or index at a
specified price at a specific date or within a specific period of time.
Upon the purchase of a call or put option, the premium paid by the Fund is
included in the Statement of Assets and Liabilities as an investment. All
premiums are marked-to-market daily, and any unrealized gains or losses are
recorded in the Fund's financial statements. As the purchaser of an index
option, the Fund has the right to receive a cash payment equal to any
depreciation in the value of the index below the strike price of the option
(in the case of a put) or equal to any appreciation in the value of the
index over the strike price of the option (in the case of a call) as of the
valuation date of the option. Premiums paid for purchased calls and put
options which have expired are treated as realized losses on investments in
the Statement of Operations. Upon the exercise or closing of a purchased
put option, the premium is offset against the proceeds on the sale of the
underlying security or financial instrument in order to determine the
realized gain or loss on investments. Upon the exercise or closing of a
purchased call option, the premium is added to the cost of the security or
financial instrument. The risk associated with purchasing options is
limited to the premium originally paid. The average value of purchased
options open during the six months ended February 29, 2016 was $39,993.
Purchased option contracts outstanding at period end are listed within the
Fund's schedule of investments.
42 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
L. Written Interest Rate Swaptions
The Fund may enter into interest rate swaptions to seek to manage exposure
to fluctuations in interest rates or to seek to enhance yield. A swaption
grants the right but not the obligation to enter into the underlying swap
at a future specified date.
When the Fund writes a swaption, the Fund receives a premium and becomes
obligated to enter into a swap contract according to the terms of the
underlying agreement. The premium received by the Fund is recorded as a
liability and is subsequently adjusted to the current value of the written
swaption. Premiums received from writing swaptions that expire unexercised
are treated by the Fund on the expiration date as realized gains. 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 written swaption is
exercised, the cost basis of the swap is adjusted by the amount of premium
received. The Fund as writer of a swaption bears the market risk of an
unfavorable change in the price of the security underlying the written
swaption.
Open interest rate swaption contracts at February 29, 2016 are listed in
the Schedule of Investments. The average value of written swaption
contracts open during the six months ended February 29, 2016 was
$(218,016).
The Fund held three interest rate swaptions that were open at February 29,
2016. If the swaptions were exercised at February 29, 2016, the maximum
amount the Fund would have been required to pay was $198,363.
Transactions in interest rate swaptions for the six months ended February
29, 2016 are summarized as follows:
---------------------------------------------------------------------------
Number of Premiums
Contracts Received
---------------------------------------------------------------------------
Options open at beginning of period (12,200,000) $ (325,169)
Options opened (7,950,000) (11,177)
Options exercised 5,000,000 95,475
Options closed -- --
Options expired 6,000,000 42,508
---------------------------------------------------------------------------
Options open at end of period (9,150,000) $ (198,363)
===========================================================================
M. Purchased Interest Rate Swaptions
The Fund may purchase put and call swaptions in order to attempt to hedge
against changes in the value of portfolio securities or to seek to increase
total return. Purchased call and put swaptions entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time. Upon
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 43
the purchase of a call or put swaption, the premium paid by the Fund is
included in the Statement of Assets and Liabilities as an investment. All
premiums are marked-to-market daily, and any unrealized gains or losses are
recorded in the Fund's financial statements. As the purchaser of an index
swaption, the Fund has the right to receive a cash payment equal to any
depreciation in the value of the index below the strike price of the
swaption (in the case of a put) or equal to any appreciation in the value
of the index over the strike price of the swaption (in the case of a call)
as of the valuation date of the swaption. Premiums paid for purchased calls
and put swaptions which have expired are treated as realized losses on
investments in the Statement of Operations. Upon the exercise or closing of
a purchased put swaption, the premium is offset against the proceeds on the
sale of the underlying security or financial instrument in order to
determine the realized gain or loss on investments. Upon the exercise or
closing of a purchased call swaption, the premium is added to the cost of
the security or financial instrument. The risk associated with purchasing
swaptions is limited to the premium originally paid. The average value of
contracts open during the six months ended February 29, 2016 was $414,923.
Purchased swaptions open at period end are listed at the end of the Fund's
Schedule of Investments.
N. Credit Default Swaption Writing
The Fund may write put and covered call swaptions on portfolio securities
in order to attempt to hedge against changes in the value of portfolio
securities or to seek to increase total return. When a swaption is written,
the Fund receives a premium and becomes obligated to purchase or sell the
underlying security at a fixed price upon the exercise of the swaption.
When the Fund writes a swaption, an amount equal to the premium received by
the Fund is recorded as a liability and is subsequently adjusted to the
current value of the swaption written. Premiums received from writing
swaptions 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 swaption is exercised, the premium is added
to the proceeds from the sale of the underlying security in determining
whether the Fund has realized a gain or loss. The Fund as writer of a
swaption bears the market risk of an unfavorable change in the price of the
security underlying the written swaption. The Fund had no outstanding
written credit default swaption contracts at February 29, 2016.
The average value of written swaption contracts open during the six months
ended February 29, 2016 was $(153).
44 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
Transactions in written swaptions for the six months ended February 29,
2016 are summarized as follows:
---------------------------------------------------------------------------
Number of Premiums
Contracts Received
---------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options opened (6,000,000) (3,900)
Options exercised -- --
Options closed -- --
Options expired 6,000,000 3,900
---------------------------------------------------------------------------
Options outstanding at end of period -- $ --
===========================================================================
O. Credit Default Swaption Purchased
The Fund may purchase put and call swaptions in order to attempt to hedge
against changes in the value of portfolio securities or to seek to increase
total return. Purchased call and put swaptions entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time. Upon the purchase of a call or put swaption, the
premium paid by the Fund is included in the Statement of Assets and
Liabilities as an investment. All premiums are marked-to-market daily, and
any unrealized gains or losses are recorded in the Fund's financial
statements. As the purchaser of an index swaption, the Fund has the right
to receive a cash payment equal to any depreciation in the value of the
index below the strike price of the swaption (in the case of a put) or
equal to any appreciation in the value of the index over the strike price
of the swaption (in the case of a call) as of the valuation date of the
swaption. Premiums paid for purchased calls and put swaptions which have
expired are treated as realized losses on investments in the Statement of
Operations. Upon the exercise or closing of a purchased put swaption, the
premium is offset against the proceeds on the sale of the underlying
security or financial instrument in order to determine the realized gain or
loss on investments. Upon the exercise or closing of a purchased call
swaption, the premium is added to the cost of the security or financial
instrument. The risk associated with purchasing swaptions is limited to the
premium originally paid. The average value of contracts open during the six
months ended February 29, 2016 was $25,512. There were no outstanding
purchased credit default swaptions open at February 29, 2016.
P. 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 sell
or buy credit default swap contracts to seek to increase the Fund's income,
or to
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 45
attempt to hedge the risk of default on Fund securities. A credit default
swap index is used to hedge risk or take a position on a basket of credit
entities or indices. As a seller of protection, the Fund would be required
to pay the notional (or other agreed-upon) value of the referenced debt
obligation to the counterparty in the event of a default by a U.S. or
foreign corporate issuer of a debt obligation, which would likely result in
a loss to the Fund. In return, the Fund would receive from the counterparty
a periodic stream of payments during the term of the contract provided that
no event of default occurred. The maximum exposure of loss to the seller
would be the notional value of the credit default swaps outstanding. If no
default occurs, the Fund would keep the stream of payments and would have
no payment obligation. The Fund may also buy credit default swap contracts
in order to hedge against the risk of default of debt securities, in which
case the Fund would function as the counterparty referenced above.
When the Fund enters into a credit default swap contract, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the rights to receive a contingent payment. An upfront payment
made by the Fund, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
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 appreciation or depreciation in the Statement of
Assets and Liabilities. 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 in
the Statement of Operations.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as variation margin on
centrally cleared swaps on the Statement of Assets and Liabilities.
The amount of cash deposited with a broker as collateral at February 29,
2016 was $508,985 and is recorded within "Restricted Cash" on the Statement
of Assets and Liabilities.
46 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
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.
Open credit default swap contracts at February 29, 2016 are listed in the
Schedule of Investments. The average value of credit default swap contracts
open during the six months ended February 29, 2016 was $14,432.
Q. Cross Currency Swap Contracts
The Fund may enter into a cross currency swap contract to attempt to manage
and/or gain exposure to fluctuations in interest and/or currency exchange
rates. When entering into a cross currency swap contract, the Fund
negotiates with the counterparty to exchange a periodic stream of payments
(determined using fixed or floating rates) based on the notional amount of
two different currencies. The notional amounts are typically determined
based on exchange rates at the opening of the contract.
Cross currency swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made under the contract or
upon termination of the contract are recognized, net of the appropriate
amount of any upfront payment, as realized gains or losses in the Statement
of Operations. Cross currency swaps are subject to counterparty risk.
Open cross currency swap contracts at February 29, 2016 or listed in the
Schedule of Investments. The average value of cross currency swap contracts
open during the six months ended February 29, 2016 was $778.
R. Inflation Rate Swap Contracts
The Fund may enter into inflation rate swap contracts to attempt to hedge
against inflation. Pursuant to the inflation rate swap agreement, the Fund
negotiates with a counterparty to exchange a periodic stream of payments,
based on a benchmark inflation index. One cash flow stream will typically
be a floating rate payment linked to the specified inflation index while
the other is typically a fixed interest rate.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 47
Inflation rate swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Inflation rate swaps are normally issued on a zero
coupon basis where all payments compound during the life of the contract
and are netted upon the termination or maturity of the contract. Final
payments received or paid by the Fund are recorded as realized gains or
losses in the Statement of Operations. Inflation rate swap contracts are
subject to movements in interest rates.
Open inflation rated swap contracts at February 29, 2016 are listed in the
Schedule of Investments. The average value of inflation rate swap contracts
open during the six months ended February 29, 2016 was $61,925.
S. Interest Rate Swap Contracts
The Fund may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance its income. Pursuant to the
interest rate swap agreement, the Fund negotiates with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly
basis.
Periodic payments received or paid by the Fund are recorded as realized
gains or losses in the Statement of Operations. Interest rate swap
contracts are marked-to-market daily using valuations supplied by
independent sources and the change in value, if any, is recorded as
unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Interest rate swap contracts are subject to counterparty risk
and movements in interest rates.
Open interest rate swap contracts at February 29, 2016 are listed in the
Schedule of Investments. The average value of interest swap contracts open
during the six months ended February 29, 2016 was $1,319.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at an annual rate of 0.60% of
the average daily net assets of the Fund.
PIM has contractually agreed to limit ordinary operating expenses (ordinary
operating expenses means all fund expenses other than extraordinary expenses,
such as litigation, taxes, brokerage commissions and acquired fund fees and
expenses) to the extent required to reduce Fund expenses to 1.15%, 1.90%, 0.75%
and 0.75% of the average daily net assets attributable to Class A, Class C,
Class K and Class Y shares, respectively. These expense limitations are
48 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
in effect through January 1, 2017. Fees waived and expenses reimbursed during
the six months ended February 29, 2016 are reflected on the Statement of
Operations. Fees and expenses of other investment companies in which the Fund
may invest are not included in the expense limitations noted above. 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
$10,695 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 29, 2016.
3. Transfer Agent
Prior to November 2, 2015, Pioneer Investment Management Shareholder Services,
Inc. (PIMSS), a wholly owned indirect subsidiary of UniCredit, provided
substantially all transfer agent and shareowner services to the Fund at
negotiated rates.
Effective November 2, 2015, Boston Financial Data Services serves as the
transfer agent to the Fund at negotiated rates.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings, outgoing phone calls and omnibus
relationship contracts. For the six months ended February 29, 2016, such
out-of-pocket expenses by class of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 1,497
Class C 297
Class Y (33)
--------------------------------------------------------------------------------
Total $ 1,761
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $593 in transfer agent fees and out-of-pocket reimbursements
payable to the transfer agent at February 29, 2016.
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
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 49
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 services with regard to Class C shares. Included in "Due to
affiliates" reflected on the Statement of Assets and Liabilities is $905 in
distribution fees payable to PFD at February 29, 2016.
In addition, redemptions of each class of shares (except Class K or 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 12 months of purchase. Redemptions of Class C shares
within 12 months 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 K or Class Y shares. Proceeds from the
CDSCs are paid to PFD. For the six months ended February 29, 2016, no CDSCs were
paid to PFD.
5. Forward Foreign Currency Contracts
At February 29, 2016, 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 value of forward foreign
currency contracts open during the six months ended February 29, 2016 was
$(4,989,681).
---------------------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
---------------------------------------------------------------------------------------------------------------
(CNY) Chinese (4,873,310) USD 760,000 Morgan Stanley 3/7/16 $ 16,617
Yuan Capital Services
Renminbi LLC
(KRW) South (165,413,500) USD 140,000 Morgan Stanley 3/2/16 6,537
Korean Won Capital Services
LLC
(KRW) South (248,172,610) USD 205,440 Morgan Stanley 3/2/16 5,203
Korean Won Capital Services
LLC
(KRW) South (78,855,000) USD 63,830 Barclays Bank Plc 3/2/16 206
Korean Won
(RUB) Russian (1,717,200) USD 24,000 Morgan Stanley 3/14/16 1,245
Ruble Capital Services
LLC
50 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
---------------------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
---------------------------------------------------------------------------------------------------------------
USD (207,000) (CAD) 297,418 Morgan Stanley 4/14/16 $ 13,032
Canadian Capital Services
Dollar) LLC
(EUR) Euro (6,400,142) USD 7,003,783 Morgan Stanley 4/14/16 24,637
Capital Services
LLC
(PLN) Polish (470,000) (HUF) 33,735,643 Morgan Stanley 4/14/16 796
Zloty Hungarian Capital Services
Forint LLC
(HUF) (33,166,949) (PLN) Polish 470,000 Morgan Stanley 4/14/16 1,201
Hungarian Zloty Capital Services
Forint LLC
USD (960,356) (JPY) 111,665,735 Morgan Stanley 4/14/16 31,070
Japanese Capital Services
Yen LLC
USD (312,476) (AUD) 440,000 Morgan Stanley 4/14/16 956
Austrialian Capital Services
Dollar LLC
USD (190,000) (PLN) Polish 778,280 Morgan Stanley 4/14/16 4,854
Zloty Capital Services
LLC
(PLN) Polish (129,764) (EUR) Euro 30,000 Morgan Stanley 4/14/16 226
Zloty Capital Services
LLC
(EUR) Euro (30,000) (PLN) Polish 133,565 Morgan Stanley 4/14/16 726
Zloty Capital Services
LLC
(GBP) British (148,950) (EUR) Euro 197,011 Morgan Stanley 4/14/16 7,426
Pound Sterling Capital Services
LLC
(GBP) British (80,000) (NZD) New 175,885 Morgan Stanley 4/14/16 4,153
Pound Sterling Zealand Capital Services
Dollar LLC
USD (116,226) (NZD) New 180,000 Credit Suisse 4/14/16 2,029
Zealand International
Dollar
USD (267,077) (NOK) 2,372,000 Morgan Stanley 4/14/16 5,618
Norwegian Capital Services
Krone LLC
(GBP) British (160,000) USD 228,451 Morgan Stanley 4/14/16 5,656
Pound Sterling Capital Services
LLC
(SGD) (111,865) USD 80,000 Morgan Stanley 4/14/16 541
Singapore Capital Services
Dollar LLC
USD (80,000) (SGD) 114,967 Morgan Stanley 4/14/16 1,663
Singapore Capital Services
Dollar LLC
(INR) Indian (6,425,934) USD 94,000 Morgan Stanley 4/13/16 610
Rupee Capital Services
LLC
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 51
---------------------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
---------------------------------------------------------------------------------------------------------------
(EUR) Euro (180,000) (AUD) 285,359 Morgan Stanley 4/14/16 $ 6,991
Austrialian Capital Services
Dollar LLC
USD (70,000) (RUB) 5,548,670 Goldman Sachs 3/11/16 3,585
Russian International
Ruble
USD (24,000) (RUB) 1,936,080 Morgan Stanley 3/14/16 1,656
Russian Capital Services
Ruble LLC
(KRW) South (97,708,000) USD 80,000 Morgan Stanley 5/6/16 1,288
Korean Won Capital Services
LLC
(GBP) British (40,000) (JPY) 6,485,145 Morgan Stanley 4/14/16 1,880
Pound Sterling Japanese Capital Services
Yen LLC
(EUR) Euro (65,196) (JPY) 8,350,000 Credit Suisse 4/14/16 3,041
Japanese International
Yen
(EUR) Euro (100,000) (NOK) 963,119 Morgan Stanley 4/14/16 1,677
Norwegian Capital Services
Krone LLC
(MYR) (505,110) USD 120,000 Barclays Bank Plc 2/10/17 2,055
Malaysian
Ringgit
(NZD) New (171,569) (AUD) 160,000 Morgan Stanley 4/14/16 1,260
Zealand Austrialian Capital Services
Dollar Dollar LLC
USD (23,000) (INR) Indian 1,591,370 Goldman Sachs 4/13/16 128
Rupee International
(ZAR) South (1,234,349) USD 80,000 Barclays Bank Plc 4/14/16 2,851
African Rand
(ZAR) South (952,093) USD 60,000 Morgan Stanley 4/14/16 492
African Rand Capital Services
LLC
---------------------------------------------------------------------------------------------------------------
Total $ 161,906
===============================================================================================================
52 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
---------------------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
---------------------------------------------------------------------------------------------------------------
USD (380,000) (CNY) 2,364,360 Barclays Bank Plc 3/7/16 $ (19,337)
Chinese
Yuan
Renminbi
USD (380,000) (CNY) 2,363,220 Credit Suisse 3/7/16 (19,511)
Chinese International
Yuan
Renminbi
USD (140,000) (KRW) 167,322,400 Morgan Stanley 3/2/16 (4,998)
South Capital Services
Korean Won LLC
USD (199,339) (KRW) 246,263,710 Morgan Stanley 3/2/16 (644)
South Capital Services
Korean Won LLC
USD (70,000) (KRW) 78,855,000 Barclays Bank Plc 3/2/16 (6,377)
South
Korean Won
(NZD) New (1,188,242) (EUR) Euro 696,000 Morgan Stanley 4/14/16 (21,674)
Zealand Capital Services
Dollar LLC
(EUR) Euro (611,000) (NZD) New 1,008,802 Morgan Stanley 4/14/16 (3,521)
Zealand Capital Services
Dollar LLC
(CAD) (452,508) USD 327,000 Morgan Stanley 4/14/16 (7,770)
Canadian Capital Services
Dollar) LLC
USD (5,982,164) (EUR) Euro 5,479,810 Morgan Stanley 4/14/16 (6,611)
Capital Services
LLC
(JPY) (181,557,508) USD 1,549,905 Morgan Stanley 4/14/16 (62,057)
Japanese Yen Capital Services
LLC
USD (16,736) (NZD) New 25,000 Morgan Stanley 4/14/16 (312)
Zealand Capital Services
Dollar LLC
(NZD) New (180,000) USD 118,229 Morgan Stanley 4/14/16 (26)
Zealand Capital Services
Dollar LLC
(AUD) (170,000) USD 119,187 Morgan Stanley 4/14/16 (1,912)
Austrialian Capital Services
Dollar LLC
(PLN) Polish (1,080,050) USD 270,000 Morgan Stanley 4/14/16 (406)
Zloty Capital Services
LLC
(EUR) Euro (238,729) (GBP) British 180,697 Morgan Stanley 4/14/16 (8,710)
Pound Capital Services
Sterling LLC
(NZD) New (177,768) (GBP) British 80,000 Morgan Stanley 4/14/16 (5,390)
Zealand Dollar Pound Capital Services
Sterling LLC
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 53
---------------------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
---------------------------------------------------------------------------------------------------------------
(NOK) (258,968) (GBP) British 20,000 Morgan Stanley 4/14/16 $ (1,923)
Norwegian Pound Capital Services
Krone Sterling LLC
(NOK) (5,365,000) USD 605,180 Morgan Stanley 4/14/16 (11,601)
Norwegian Capital Services
Krone LLC
USD (42,529) (HKD) Hong 330,000 Morgan Stanley 4/14/16 (92)
Kong Dollar Capital Services
LLC
USD (365,261) (GBP) British 252,669 Morgan Stanley 4/14/16 (13,426)
Pound Capital Services
Sterling LLC
(SEK) (247,407) (GBP) British 20,000 Morgan Stanley 4/14/16 (1,113)
Swedish Pound Capital Services
Krona Sterling LLC
(BRL) (389,395) USD 94,000 Morgan Stanley 4/11/16 (2,168)
Brazilian Real Capital Services
LLC
USD (94,000) (BRL) 379,788 Morgan Stanley 4/11/16 (204)
Brazilian Real Capital Services
LLC
USD (80,000) (MXN) 1,432,416 Credit Suisse 4/14/16 (1,206)
Mexican Peso International
(RUB) (5,410,510) USD 70,000 Morgan Stanley 3/11/16 (1,753)
Russian Capital Services
Ruble LLC
USD (47,000) (INR) Indian 3,230,310 Morgan Stanley 4/13/16 (53)
Rupee Capital Services
LLC
(AUD) (289,329) (EUR) Euro 180,000 Morgan Stanley 4/14/16 (9,818)
Austrialian Capital Services
Dollar LLC
(MXN) (1,484,619) USD 80,000 Morgan Stanley 4/14/16 (1,666)
Mexican Peso Capital Services
LLC
(CNY) Chinese (410,460) USD 60,000 Goldman Sachs 11/3/16 (2,135)
Yuan International
Renminbi
USD (120,000) (MYR) 498,600 Morgan Stanley 2/10/17 (3,575)
Malaysian Capital Services
Ringgit LLC
(JPY) (6,520,100) (AUD) 80,000 Morgan Stanley 4/14/16 (901)
Japanese Yen Austrialian Capital Services
Dollar LLC
(JPY) (6,642,690) (GBP) British 40,000 Morgan Stanley 4/14/16 (3,278)
Japanese Yen Pound Sterling Capital Services
LLC
(AUD) (80,000) (JPY) 6,284,376 Credit Suisse 4/14/16 (1,192)
Austrialian Japanese International
Dollar Yen
54 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
---------------------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
---------------------------------------------------------------------------------------------------------------
(CNY) Chinese (534,200) USD 80,000 Morgan Stanley 8/25/16 $ (1,004)
Yuan Capital Services
Renminbi LLC
USD (80,000) (CLP) 56,680,000 Morgan Stanley 8/25/16 (162)
Chilean Capital Services
Peso LLC
(NOK) (476,365) (EUR) Euro 50,000 Goldman Sachs 4/14/16 (241)
Norwegian International
Krone
---------------------------------------------------------------------------------------------------------------
Total $(226,767)
===============================================================================================================
6. Assets and Liabilities Offsetting
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the trading
of certain OTC derivatives and typically contains, among other things, close-out
and set-off provisions which apply upon the occurrence of event of a default
and/or termination event as defined under the relevant ISDA Master Agreement.
The ISDA Master Agreement may also give a party the right to terminate all
transactions traded under such agreement if, among other things, there is
deterioration in the credit quality of the other party. Upon an event of default
or a termination of the ISDA Master Agreement, the non-defaulting party has the
right to close out all transactions under such agreement and to net amounts owed
under each transaction to determine one net amount payable by one party to the
other. The right to close out and net payments across all transactions under the
ISDA Master Agreement could result in a reduction of the Fund's credit risk to
its counterparty equal to any amounts payable by the Fund under the applicable
transactions, if any. However, the Fund's right to setoff may be restricted or
prohibited by the bankruptcy or insolvency laws of the particular jurisdiction
to which a specific ISDA counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collateral pledged for the benefit of the Fund and/or
counterparty is held in segregated accounts by the Fund's custodian and cannot
be sold, re-pledged, assigned or otherwise
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 55
used while pledged. Cash that has been segregated to cover the Fund's
collateral obligations, if any, will be reported separately in the Statement of
Assets and Liabilities as "Restricted cash." Securities pledged by the Fund as
collateral, if any, are identified as such in the Schedule of Investments.
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Fund
as of February 29 2016.
----------------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
----------------------------------------------------------------------------------------------------
Barclays Bank Plc $ 35,637 $ (35,637) $ -- $ -- $ --
Credit Suisse
International 55,967 (21,909) -- -- 34,058
Goldman Sachs
International 73,600 (73,600) -- -- --
Deutsche Bank AG 635,720 (614,316) -- -- 21,404
Morgan Stanley
Capital
Services LLC 195,725 (195,725) -- -- --
----------------------------------------------------------------------------------------------------
Total $ 996,649 $ (941,187) $ -- $ -- $ 55,462
====================================================================================================
----------------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Assets (c)
----------------------------------------------------------------------------------------------------
Barclays Bank Plc $ (36,683) $ 35,637 $ -- $ -- $ (1,046)
Credit Suisse
International (21,909) 21,909 --
Goldman Sachs
International (79,223) 73,600 (5,623)
Deutsche Bank AG (614,316) 614,316 -- -- --
Morgan Stanley
Capital
Services LLC (228,794) 195,725 -- -- (33,069)
----------------------------------------------------------------------------------------------------
Total $ (980,925) $ 941,187 $ -- $ -- $ (39,738)
====================================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
56 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
7. Additional Disclosures about Derivative Instruments and Hedging Activities:
The Fund's use of derivatives subjects it to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at February 29,
2016 was as follows:
----------------------------------------------------------------------------------------
Statement of Foreign
Assets and Interest Credit Exchange Equity Commodity
Liabilities Rate Risk Risk Rate Risk Risk Risk
----------------------------------------------------------------------------------------
Assets
Unrealized appreciation
of forward foreign
currency contracts $ -- $ -- $ 161,906 $ -- $ --
Net unrealized
appreciation of
swap contracts 91,554 (10,682) (10,969) -- --
----------------------------------------------------------------------------------------
Total Value $ 91,554 $ (10,682) $ 150,937 $ -- $ --
========================================================================================
Liabilities
Unrealized depreciation
of forward foreign
currency contracts $ -- $ -- $ (226,767) $ -- $ --
Net unrealized
depreciation on
futures contracts (157,624) -- -- -- --
Written options and
written swaptions (191,763) -- (3,661) -- --
----------------------------------------------------------------------------------------
Total Value $ (349,387) $ -- $ (230,428) $ -- $ --
========================================================================================
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 57
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at February 29, 2016 was as follows:
----------------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Operations Rate Risk Risk Rate Risk Risk Risk
----------------------------------------------------------------------------------------
Net realized gain
(loss) on
Swap contracts $ (272,374) $ (19,024) $ -- $ -- $ --
Futures contracts (246,366) -- -- -- --
Written options and
written swaptions 35,096 -- 5,208 -- --
Forward foreign
currency contracts* -- -- 122,438 -- --
----------------------------------------------------------------------------------------
Total Value $ (483,644) $ (19,024) $ 127,646 $ -- $ --
========================================================================================
Change in net
unrealized appreciation
(depreciation) on
Swap contracts $ 91,074 $ (19,652) $ (10,969) $ -- $ --
Futures contracts (217,039) -- -- -- --
Written options and
written swaptions 23,301 -- 1,849 -- --
Forward foreign
currency contracts* -- -- 42,441 -- --
----------------------------------------------------------------------------------------
Total Value $ (102,664) $ (19,652) $ 33,321 $ -- $ --
========================================================================================
* Included in the amount shown on the Statement of Operations as foward
foreign currency contracts and other assets and liabilities denominated in
foreign currencies.
58 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
Additional Information (unaudited)
Pioneer Investment Management, Inc. (the "Adviser"), each fund's investment
adviser, is currently an indirect, wholly owned subsidiary of UniCredit S.p.A.
("UniCredit"). On November 11, 2015, UniCredit announced that it signed a
binding master agreement with Banco Santander and affiliates of Warburg Pincus
and General Atlantic (the "Private Equity Firms") with respect to Pioneer
Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as previously announced by UniCredit, will establish a holding
company, with the name Pioneer Investments, to be owned by UniCredit (50%) and
the Private Equity Firms (50% between them). The holding company will control
Pioneer's U.S. operations, including PIM. The holding company also will own
66.7% of Pioneer's and SAM's combined operations outside the U.S., while Banco
Santander will own directly the remaining 33.3% stake. The closing of the
Transaction is expected to happen in 2016, subject to certain regulatory and
other approvals.
Under the Investment Company Act of 1940, completion of the Transaction will
cause each fund's current investment advisory agreement with PIM to terminate.
Accordingly, each fund's Board of Trustees will be asked to approve a new
investment advisory agreement. If approved by the Board, each fund's new
investment advisory agreement will be submitted to the shareholders of the fund
for their approval.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 59
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Absolute Return Bond Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in January 2015 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2015 and July
2015. Supplemental contract review materials were provided to the Trustees in
September 2015. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year, and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings, in connection with the review of the Fund's
investment advisory agreement.
In March 2015, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In July 2015,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2015.
At a meeting held on September 15, 2015, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees considered various
factors that they determined were relevant, including the factors described
below. The Trustees did not identify any single factor as the controlling factor
in determining to approve the renewal of the agreement.
60 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed PIM's investment approach
for the Fund and its research process. The Trustees considered the resources of
PIM and the personnel of PIM who provide investment management services to the
Fund. They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. The Trustees considered the non-investment resources and
personnel of PIM involved in PIM's services to the Fund, including PIM's
compliance and legal resources and personnel. The Trustees noted the substantial
attention and high priority given by PIM's senior management to the Pioneer fund
complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They discussed the Fund's performance with PIM on a
more frequent basis in light of the Fund's unfavorable performance compared to
its benchmark index and peers over certain periods. The Trustees noted PIM's
explanation for the Fund's relative performance. It was noted that the Fund
commenced operations on January 30, 2014. The Trustees' reviews and discussions,
including the steps taken by PIM to address the Fund's performance, were
factored into the Trustees' deliberations concerning the renewal of the advisory
agreement.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 61
peer group of funds selected on the basis of criteria determined by the
Independent Trustees for this purpose using data provided by Strategic Insight
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the second quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees considered that the expense ratio of the Fund's Class A shares for the
most recent fiscal year was in the second quintile relative to its Morningstar
peer group and in the first quintile relative to its Strategic Insight peer
group, in each case for the comparable period. The Trustees noted that PIM was
waiving fees and/or reimbursing expenses in order to limit the ordinary
operating expenses of the Fund. The Trustees considered the impact of transfer
agency, sub-transfer agency, and other non-management fee expenses on the
expense ratios of the Fund. The Trustees noted that they separately review the
Fund's transfer agency, sub-transfer agency and intermediary arrangements.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Fund's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Fund is subject. The Trustees
also considered the different entrepreneurial risks associated with PIM's
management of the Fund and Pioneer's management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
62 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
recognize that economies of scale are difficult to identify and quantify, and
that, among other factors that may be relevant, are the following: fee levels,
expense subsidization, investment by PIM in research and analytical capabilities
and PIM's commitment and resource allocation to the Fund. The Trustees noted
that profitability also may be an indicator of the availability of any economies
of scale, although profitability may vary for other reasons including reductions
in expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 63
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
64 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data 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 us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Ms. Monchak is a non-voting Advisory Trustee.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 65
This page for your notes.
66 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
This page for your notes.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16 67
This page for your notes.
68 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/29/16
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:
--------------------------------------------------------------------------------
Pioneer Funds
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: us.pioneerinvestments.com
This report must be preceded or 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.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2016 Pioneer Investments 27690-02-0416
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of 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.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving 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.
------------------------------------------- ------------------------------
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GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
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(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of 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 registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
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 registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's 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 registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
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 registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
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.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust V
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date April 27, 2016
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date April 27, 2016
By (Signature and Title)* /s/ Mark Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date April 27, 2016
* Print the name and title of each signing officer under his or her signature.