OMB APPROVAL
OMB Number: 3235-0570
Expires: August 31, 2010
Estimated average burden
hours per response.....18.9
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21978
Pioneer Series Trust VI
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2006 through October 31, 2007
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PIONEER
-----------------------
FLOATING
RATE FUND
FLARX
Ticker Symbol
Annual
Report
10/31/07
[LOGO]PIONEER
Investments
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 24
Notes to Financial Statements 31
Report of Independent Registered Public Accounting Firm 39
Trustees, Officers and Service Providers 40
President's
Dear Shareowner,
- --------------------------------------------------------------------------------
Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. They
were particularly useful guides in recent months, when an otherwise healthy
long-term bull market was buffeted by problems in the mortgage and banking
industries.
Since mid-year 2007, issues tied to poor underwriting practices in the subprime
sector of the mortgage industry and to problems with risk management by banks
and hedge funds have resulted in increased market volatility and rising concern
about risks to U.S. economic growth.
U.S. economic growth had slowed over the past two years, but this has been due
as much to the natural maturation of the cyclical expansion, as U.S. factories
approached full utilization and the labor market approached full employment, as
to rising commodity prices or short-term interest rates. The slowdown was,
therefore, not entirely unwelcome, as it reduced the threat of higher
inflation. More recently, however, there has been increasing concern that
falling home prices, and/or disruptions in financial markets pose a larger
threat to continuing economic growth, and we have seen two cuts in short-term
interest rates from the Federal Reserve despite strong economic growth in the
second and third quarters of this year. A weaker U.S. dollar has put upward
pressure on some prices, but it has also significantly benefited exporters and
companies competing in the global marketplace, stimulating U.S. economic
growth.
Economic growth in the rest of the world remains relatively positive. In
Europe, solid GDP growth has driven unemployment lower and supported growing
consumption, although concerns about the impact of the strong Euro are a
persistent source of worry. Japanese economic growth continues, albeit at a
muted rate, and the country's deflationary problems are gradually receding.
Economic growth in emerging market countries remains faster than in the
developed world, led by China, which continues its rise as a world economic
power.
Looking forward, the economic outlook continues to appear generally positive,
although real estate prices, subprime mortgage defaults, and the possibility of
a liquidity/credit crunch represent growing sources of risk. Central banks have
responded to the stresses in the inter-bank and commercial paper markets by
acting as "lenders of last resort" and, in the case of the Federal Reserve, by
cutting rates.
The U.S. Federal Reserve and the world's other central banks continue to pursue
policies aimed at producing low and stable inflation, believed to be the best
backdrop for steady economic growth and low average unemployment over the long
term. Keeping inflation low is also an important support for stock and bond
valuations, and so central bank
2
Letter
policies have also been "investor friendly." We view the Fed's recent rate cuts
as temporarily "buying insurance" against a credit crunch, which would threaten
economic growth rather than as an abandonment of its commitment to keeping
inflation low.
Even against this "wall of worry" backdrop, the long-term performance of major
asset classes has remained positive. In the 12 months ending October 31, 2007,
equity investors were by and large rewarded as, despite several interim
corrections, the Standard & Poor's 500 Index returned 15%, the Dow Jones
Industrial Average returned 18%, and the NASDAQ Composite Index returned 21%.
International developed and emerging markets equities performed even better,
reflecting both a weakening dollar (which boosts returns for U.S. dollar-based
investors) and strong local currency returns, with the MSCI EAFE Developed
Market Index returning 25% and the MSCI Emerging Markets Index returning 68%
over the 12-month period. The U.S. bond market, as measured by the Lehman
Aggregate Bond Index, returned 5% in the 12 months ending October 31, 2007. The
U.S. high-yield bond market, as measured by the Merrill Lynch High Yield Bond
Master II Index, returned 7% for the same period, reflecting its higher coupon
yield.
Sudden swings in the markets are always to be expected. Just as staying
diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage you to
work closely with your financial advisor to find the mix of stocks, bonds and
money market assets that is best aligned to your particular risk tolerance and
investment objective.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury, President and CEO
Pioneer Investment Management USA Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 10/31/07
- --------------------------------------------------------------------------------
The market for bank loans changed dramatically between February and October
2007, as growing problems in the subprime mortgage industry created secondary
effects on the supply and demand dynamics for secured bank loans. Over the
period, bank loans backed by the assets of borrowing companies delivered
generally positive results, despite some heightened volatility in July and
August. In the following discussion, Jonathan Sharkey discusses the management
of the Pioneer Floating Rate Fund since its inception on February 14, 2007,
through the end of the Fund's first fiscal year, on October 31, 2007. Mr.
Sharkey, a member of Pioneer's Fixed Income Group, is responsible for the daily
management of the Fund.
Q: How did the Fund perform?
A: Pioneer Floating Rate Fund's Class A shares had a total return of 1.21%, at
net asset value, from the Fund's inception on February 14, 2007, through
October 31, 2007. During the same period, the Lehman High Yield Loans
Performing Index returned 2.00%, while the average return of the 62 funds
in Lipper's Loan Participating Funds category was 1.03%. On October 31,
2007, the 30-day SEC yield of the Fund's Class A shares was 5.35%.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most
recent month-end performance results. Current performance may be lower or
higher than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
Q: What was the investment environment like during the period?
A: It was an unusual and challenging period to be investing in floating rate
bank loans. When we launched investment activities on February 14, 2007,
the market was in the midst of a massive number of refinancings of bank
loans. It was a seller's market for bank loans, with demand high from
both traditional investors and non-traditional investors, such as hedge
funds, even as a heavy volume of new loan issues entered the market. As a
consequence, many companies that had recently borrowed from banks wanted
to refinance and obtain better terms for their debt. Many loans that
4
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
had been issued in recent months were trading above par value, and so it
was not unusual for companies to want to retire their outstanding debt and
refinance. That posed risks for investors in the secondary market for
previously issued loans, as they had to face the possibility that
outstanding loans could be retired at par value, which would mean a loss
of principal. Facing those challenges, we carried a larger-than-normal
cash balance in the early days of the Fund, and we focused principally on
the new-loan issue market, generally avoiding the secondary market. In the
new issue market, however, many loans were so-called covenant-lite loans.
"Covenant-lite" is a term that has emerged to describe loans that have
fewer restrictions on the borrowing company than traditional bank loans. A
typical covenant-lite loan, for example, might not require the borrowing
company to adhere to the business plan it submitted in applying for the
loan. For most of the period, we avoided covenant-lite loans and focused
primarily on newly issued floating-rate loans with strong covenant
protection. We also took advantage of Pioneer's expertise in high-yield
bonds to invest in such bonds, focusing primarily on securities that
offered the bondholder the added protection of a first lien on company
assets.
Volatility in the market for bank loans increased somewhat in May when a
new index - the Loan Credit Default Swaps Index - was introduced, giving
short-term investors a new derivative security to trade in place of bank
loans. However, the environment changed more dramatically in July when
problems in the subprime mortgage market resulted in heightened volatility
even in the bank-loan market. Many hedge funds that had invested in bank
loans moved to sell them when the funds faced pressure from their lenders
because of other investments. Hedge funds first sold the bank loans
because the loans were more liquid - or more easily traded - than other
investments they had made. That created a technical imbalance in the
supply and demand dynamics of the bank loan market, causing some
reductions in the prices of loans as supply outstripped demand and prices
for secondary loans started to fall - especially in the face of a large
pipeline of new-loan issues coming to market. The market slump occurred
despite strong underlying fundamentals in bank loans. Even though the
default rates for floating-rate loans were very low by historical
standards, the supply-and-demand imbalance depressed the market.
5
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 10/31/07 (continued)
- --------------------------------------------------------------------------------
The market then stabilized in late August and posted strong, positive
results in September and October. Over the full period, we saw a
transition from a seller's market, which favored borrowing companies, to a
buyer's market, which favored investors such as mutual funds.
Q: How was the Fund positioned, and how did that affect performance?
A: We focused primarily on new-loan issues with strong covenant protection. At
the end of the fiscal period, on October 31, 2007, more than 80% of Fund
assets were invested in loans with solid protection. That emphasis was a
major support to performance, especially when the market became more
volatile mid-way through the period. While we did have a small position
in covenant-lite loans - about 7% of Fund assets on October 31 - we were
careful to make sure they were loans to high-quality companies with good
prospects. By comparison, the index at the end of the period had 18%
covenant-lite loans in it. At the start of the Fund's operations,
year-to-date issuance of covenant-lite loans was nearly 30% of the new
issue market. Moreover, the overwhelming majority of the covenant-light
loans in which we were invested were judged by the Moody's and Standard &
Poor's rating services as offering the highest recovery protection. The
ratings indicated that loan holders were judged to have an excellent
opportunity to recover their investments should the business fundamentals
of borrowing companies deteriorate. We also retained about 9% of Fund
assets in high-yield bonds. Those bonds generally helped performance for
the period, especially when the market for bank loans became volatile in
July and August.
Performance was held back very early in the Fund's life because of the
typical delay in investing in bank loans. Whereas money can be invested in
bonds very quickly, it takes more than a week to complete an investment in
a bank loan purchased in the secondary market to begin earning interest.
It can take up to three weeks for a new issue purchase to close before
earning interest. Assets were held in cash, which pays lower interest,
while they were waiting to be invested in loans. In addition, the exposure
to high-yield bonds detracted from results when the high-yield market
slumped in June. Overall, though, investments in high-yield bonds
generally helped performance.
6
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q: What is your investment outlook?
A: While we see the potential for some continued instability in the market
because of supply/demand imbalance for bank loans, we anticipate that
conditions should begin to stabilize in the first quarter of 2008. We
anticipate that new loans entering the market in 2008 are likely to have
stronger covenants to protect investors and are likely to have higher
credit spreads - or yield premiums - reflecting both the supply/demand
imbalance as well as the potential for increased defaults. In the
meantime, investors in bank loans are being well compensated with
competitive income for their investments, and default rates on the loans
remain very low by historical measures. We believe the Fund is well
positioned for a market that has evolved in recent months to become a
buyer's market favoring investors in bank loans.
Investments in high yield or lower-rated securities are subject to greater-than
average risk. The Fund may invest in securities of issuers that are in default
or that are in bankruptcy. When interest rates rise, the prices of fixed-income
securities in the Fund will generally fall. Conversely, when interest rates
fall, the prices of fixed-income securities in the Fund will generally rise.
The floating rate feature of the Fund means that the Fund will not experience
capital appreciation in a declining interest rate environment. Investments in
the Fund are subject to possible loss due to the financial failure of issuers
of underlying securities and their inability to meet their debt obligations.
Prepayment risk is the chance that mortgage-backed bonds will be paid off early
if falling interest rates prompt homeowners to refinance their mortgages.
Forced to reinvest the unanticipated proceeds at lower interest rates, the Fund
would experience a decline in income and lose the opportunity for additional
price appreciation associated with falling interest rates. The value of
collateral, if any, securing a floating rate loan can decline, and may be
insufficient to meet the issuer's obligations or may be difficult to liquidate.
In addition, the Fund's access to collateral may be limited by bankruptcy or
other insolvency laws. Although Pioneer normally will seek to avoid receiving
this type of information about the issuer of a loan, this decision not to
receive the information may place it at a disadvantage, relative to other loan
investors, in assessing the loan. The Fund is not diversified, which means that
it can invest a higher percentage of its assets in the securities of any one
issuer than a diversified fund. Being
7
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 10/31/07 (continued)
- --------------------------------------------------------------------------------
non-diversified may magnify the Fund's losses from adverse events affecting a
particular issuer. Some of the floating rate loans and other investments in
which the Fund may invest will be considered to be illiquid. Illiquid
securities may be difficult to dispose of at a fair price at the times when the
Fund believes it is desirable to do so and their market price is generally more
volatile than that of more liquid securities. Illiquid securities are also more
difficult to value and investment of the Fund's assets in illiquid securities
may restrict the Fund's ability to take advantage of market opportunities.
Investing in foreign and/or emerging securities involves risks relating to
interest rates, currency exchange rates, economic and political conditions. At
times, the Fund's investments may represent industries or industry sectors that
are interrelated or have common risks, making it more susceptible to any
economic, political or regulatory developments or other risks affecting those
industries or sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
8
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 10/31/07
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[The following was represented by a pie chart in the printed material.]
Senior Floating Rate Loan Interests 84.0%
Temporary Cash Investments 7.3%
Corporate Bonds 6.2%
Asset-Backed Securities 2.5%
Portfolio Quality
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on S&P ratings)
[The following was represented by a pie chart in the printed material.]
BBB 5.1%
BB 62.8%
B & Lower 30.9%
Commercial Paper 1.2%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. Calpine Corp., First Priority Term Loan, 7.448%, 3/12/09 3.11%
2. Psychiatric Solutions, Inc., Term Loan, 7.13%, 7/1/12 3.09
3. Sally Holdings LLC, Term B Loan, 8.006%, 11/18/13 3.08
4. Georgia-Pacific Corp., Add-on Term Loan B, 7.37%, 12/20/12 3.06
5. Yankee Candle Co., Term Loan, 7.2%, 2/6/14 3.06
6. Freescale Semiconductor, Inc., Term Loan, 7.33%, 12/2/13 3.01
7. Hanesbrands, Inc., Term B Loan, 7.09%, 9/5/13 2.94
8. Custom Building Products, Inc., Second Lien Term Loan,
10.2%, 4/20/12 2.93
9. Mach Gen LLC, Term B Loan, 7.5%, 2/8/14 2.75
10. Baldor Electric Co., Term Loan, 6.96023%, 1/31/14 2.49
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
9
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
2/14/07
Class 10/31/07 (Inception Date)
- ------- ---------- -----------------
A $7.29 $7.50
C $7.29 $7.50
Y $7.29 $7.50
Distributions Per Share
- --------------------------------------------------------------------------------
2/14/07 - 10/31/07
--------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ---------------- --------------- --------------
A $0.2995 $ - $ -
C $0.2613 $ - $ -
Y $0.3014 $ - $ -
10
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 10/31/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Floating Rate Fund at public offering price,
compared to that of the Lehman Brothers Bank Loan Index.
Cumulative Total Returns
(As of October 31, 2007)
Net Asset Public Offering
Period Value Price (POP)
Life-of-Class
(2/14/07) 1.21% -3.30%
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated February 14, 2007)
Gross Net
1.20% 1.10%
[The following data was represented as a mountain chart in the printed
material.]
Value of $10,000 Investment
Pioneer Lehman Brothers
Floating Rate Bank Loan
Fund Index
2/07 $9,550 $10,000
10/07 $9,670 $10,100
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
POP returns reflect deduction of maximum 4.5% sales charge. NAV results
represent the percent change in net asset value per share. Returns would have
been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 3/01/10 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
The Lehman Brothers Bank Loan Index provides broad and comprehensive total
return metrics of the universe of syndicated term loans. To be included in the
index, a bank loan must be dollar denominated, have at least $150 million
funded loan, a minimum term of one year, and a minimum initial spread of
LIBOR+125. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an Index.
11
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 10/31/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Floating Rate Fund, compared to that of the Lehman
Brothers Bank Loan Index.
Cumulative Total Returns
(As of October 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(2/14/07) 0.70% -0.27%
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated February 14, 2007)
Gross Net
2.10% 2.00%
[The following data was represented as a mountain chart in the printed
material.]
Value of $10,000 Investment
Pioneer Lehman Brothers
Floating Rate Bank Loan
Fund Index
2/07 $10,000 $10,000
10/07 $9,973 $10,100
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC. "If Held" results represent the percent change in
net asset vale per share. Returns would have been lower had sales charges been
reflected. "If redeemed" returns reflect the deduction of the 1% CDSC. All
results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 3/01/08 for Class C Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
The Lehman Brothers Bank Loan Index provides broad and comprehensive total
return metrics of the universe of syndicated term loans. To be included in the
index, a bank loan must be dollar denominated, have at least $150 million
funded loan, a minimum term of one year, and a minimum initial spread of
LIBOR+125. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an Index.
12
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 10/31/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Floating Rate Fund, compared to that of the Lehman
Brothers Bank Loan Index.
Cumulative Total Returns
(As of October 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(2/14/07) 1.24% 1.24%
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated February 14, 2007)
Gross Net
0.75% 0.75%
[The following data was represented as a mountain chart in the printed
material.]
Value of $10,000 Investment
Pioneer Lehman Brothers
Floating Rate Bank Loan
Fund Index
2/07 $10,000 $10,000
10/07 $10,124 $10,100
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results
are historical and assume the reinvestment of dividends and capital gains.
Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
The Lehman Brothers Bank Loan Index provides broad and comprehensive total
return metrics of the universe of syndicated term loans. To be included in the
index, a bank loan must be dollar denominated, have at least $150 million
funded loan, a minimum term of one year, and a minimum initial spread of
LIBOR+125. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an Index.
13
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Floating Rate Fund
Based on actual returns from May 1, 2007 through October 31, 2007.
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
On 5/1/07
Ending Account Value $1,000.59 $ 997.52 $1,000.89
(after expenses) On 10/31/07
Expenses Paid During Period* $ 5.55 $ 10.07 $ 5.60
* Expenses are equal to the Fund's annualized expense ratio of 1.10%, 2.00%,
and 1.11%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the partial year period).
14
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Floating Rate Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2007 through October 31, 2007
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
On 5/1/07
Ending Account Value $1,019.66 $1,015.12 $1,019.61
(after expenses) On 10/31/07
Expenses Paid During Period* $ 5.60 $ 10.16 $ 5.65
* Expenses are equal to the Fund's annualized expense ratio of 1.10%, 2.00%,
and 1.11%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the partial year period).
15
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07
- --------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings Value
ASSET BACKED SECURITIES - 2.7%
Energy - 1.6%
Oil & Gas Equipment & Services - 1.6%
$ 500,000 NR/NR Sevan Marine ASA, 8.37%, 5/14/13 (144A) (b) $ 495,000
-----------
Total Energy $ 495,000
-----------
Transportation - 1.1%
Airlines - 1.1%
383,560 B-/B1 American Airlines, 7.377%, 5/23/19 $ 360,546
-----------
Total Transportation $ 360,546
-----------
TOTAL ASSET BACKED SECURITIES
(Cost $881,642) $ 855,546
-----------
CORPORATE BONDS - 6.7%
Materials - 1.3%
Diversified Metals & Mining - 1.3%
350,000 BB-/Ba3 FMG Finance Pty, Ltd., 10.625%,
9/1/16 (144A) $ 414,750
-----------
Total Materials $ 414,750
-----------
Capital Goods - 1.5%
Building Products - 1.5%
500,000 B+/B2 Builders Firstsource, Inc., 9.81%, 2/15/12 (b) $ 470,000
-----------
Total Capital Goods $ 470,000
-----------
Food, Beverage & Tobacco - 2.2%
Brewers - 2.2%
700,000 NR/NR Argentine Beverages, 7.375%, 3/22/12 (144A) $ 709,450
-----------
Total Food, Beverage & Tobacco $ 709,450
-----------
Health Care Equipment & Services - 0.2%
Health Care Services - 0.2%
50,000 B+/B3 Universal Hospital, 8.76%, 6/1/15 (b) $ 50,125
-----------
Total Health Care Equipment & Services $ 50,125
-----------
Technology Hardware & Equipment - 1.5%
Communications Equipment - 1.5%
500,000 NR/B1 Mastec, Inc., 7.625%, 2/1/17 $ 485,000
-----------
Total Technology Hardware & Equipment $ 485,000
-----------
TOTAL CORPORATE BONDS
(Cost $2,182,865) $ 2,129,325
-----------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings Value
SENIOR FLOATING RATE LOAN INTERESTS - 90.0%**
Energy - 3.6%
Oil & Gas Exploration & Production - 3.6%
$ 281,000 NR/NR Concho Resources, Term Loan,
9.76%, 3/27/12 $ 280,298
500,000 NR/NR Sandridge Energy, Inc., Floating Rate Loan,
8.85%, 4/1/14 498,125
358,714 BB-/Ba2 W&T Offshore, Inc., Tranche B Term Loan,
7.45%, 5/26/10 357,369
-----------
$ 1,135,792
-----------
Total Energy $ 1,135,792
-----------
Materials - 6.8%
Paper Packaging - 3.0%
992,500 BB+/Ba2 Georgia-Pacific Corp., Add-on Term Loan B,
7.37%, 12/20/12 $ 970,612
-----------
Precious Metals & Minerals - 1.5%
498,750 BB-/BA3 Inverness Medical Innovations, First Lien Term
Loan, 8.09%, 6/20/14 $ 481,294
-----------
Steel - 2.3%
250,000 BB-/Ba3 Accuride Corp., Advance Term Loan,
0.0%, 1/31/12 $ 245,313
498,750 NR/NR Niagara Corp., Term Loan, 10.13%, 6/29/14 478,800
-----------
$ 724,113
-----------
Total Materials $ 2,176,019
-----------
Capital Goods - 2.9%
Construction & Engineering - 2.9%
1,000,000 NR/NR Custom Building Products, Inc., Second Lien Term
Loan, 10.2%, 4/29/12 $ 930,000
-----------
Total Capital Goods $ 930,000
-----------
Commercial Services & Supplies - 5.0%
Commercial Printing - 1.3%
13,725 B+/BA3 Cenveo Resources, Delayed Draw Loan,
7.11%, 6/21/13 $ 13,382
411,872 B+/BA3 Cenveo Resources, Term C Facility Loan,
6.99%, 6/21/13 401,575
-----------
$ 414,957
-----------
Diversified Commercial Services - 1.5%
497,494 BB-/Ba3 NCO Financial System, Term B Facility,
8.43%, 5/15/13 $ 484,124
-----------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings Value
Environmental & Facilities Services - 2.2%
$ 249,375 BB-/B2 Synagro Technologies, Inc., First Lien Term Loan,
7.5%, 4/2/14 $ 242,829
464,811 BB-/Ba3 Waste Services, Tranche E Term Loan,
7.38%, 3/31/11 457,839
-----------
$ 700,668
-----------
Total Commercial Services & Supplies $ 1,599,749
-----------
Transportation - 1.5%
Air Freight & Couriers - 1.5%
123,148 B/Ba2 Ceva Group Plc, Dollar Pre-Funded Loan,
5.1%, 11/4/13 $ 121,301
374,860 NR/B+ Ceva Group Plc, U.S. Term Loan,
8.13%, 11/4/13 369,237
-----------
$ 490,538
-----------
Total Transportation $ 490,538
-----------
Consumer Durables & Apparel - 6.3%
Apparel, Accessories & Luxury Goods - 2.9%
942,152 BB/B1 Hanesbrands, Inc., Term B Loan,
7.09%, 9/5/13 $ 931,729
-----------
Homebuilding - 2.6%
496,250 B+/B2 LandSource Communities Development, Facility B
Loan, 8.25%, 2/13/13 $ 442,194
500,000 B+/B2 LandSource Communities Development, Second
Lien Term Loan, 10.0%, 2/22/14 401,250
-----------
$ 843,444
-----------
Housewares & Specialties - 0.8%
249,375 BB-/Ba3 Jarden Corp., Term Loan B3, 7.84%, 1/24/12 $ 247,375
-----------
Total Consumer Durables & Apparel $ 2,022,548
-----------
Consumer Services - 3.1%
Casinos & Gaming - 3.1%
416,675 BB-/NR New World Gaming Partners, Ltd., First Lien Term
Loan, 0.0%, 11/17/14 $ 400,008
64,777 NR/NR Seminole Tribe of Florida, Term B1 Delayed Draw
Term Loan, 5.41%, 3/5/14 64,332
218,623 NR/NR Seminole Tribe of Florida, Term B2 Delayed Draw
Term Loan, 7.13%, 2/20/14 217,120
216,599 NR/NR Seminole Tribe of Florida, Term B3 Delayed Draw
Term Loan, 6.75%, 3/5/14 215,110
-----------
$ 896,570
-----------
Total Consumer Services $ 896,570
-----------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings Value
Media - 5.3%
Broadcasting & Cable Television - 3.0%
$ 500,000 B+/B1 Charter Communication, Replacement Loan,
7.13%, 3/5/14 $ 481,333
498,750 B/B3 Knology, Inc., Term Loan, 7.48%, 4/30/12 483,788
-----------
$ 965,121
-----------
Movies & Entertainment - 2.3%
498,750 B+/B1 LodgeNet Entertainment, Closing Date Loan,
7.2%, 4/4/14 $ 490,489
249,375 NR/Ba1 MetroPCS Wireless, Inc., New Tranche B Loan,
7.54%, 6/26/14 246,881
-----------
$ 737,370
-----------
Total Media $ 1,702,491
-----------
Retailing - 3.1%
Specialty Stores - 3.1%
992,481 NR/NR Sally Holdings LLC, Term B Loan,
8.006%, 11/18/13 $ 975,112
-----------
Total Retailing $ 975,112
-----------
Household & Personal Products - 4.4%
Household Products - 4.4%
500,000 B+/B1 Huish Detergents, Inc., Second Lien Term Loan,
9.45%, 10/26/14 $ 435,938
995,000 NR/NR Yankee Candle Co., Term Loan, 7.2%, 2/6/14 969,503
-----------
$ 1,405,441
-----------
Total Household & Personal Products $ 1,405,441
-----------
Health Care Equipment & Services - 9.7%
Health Care Facilities - 6.9%
469,064 BB-/Ba3 CHS/Community Health Systems, Inc., Funded
Term Loan, 7.76%, 7/13/14 $ 458,803
249,369 B+/Ba3 Hanger Orthopedic Group, Inc., Tranche B Term
Loan, 7.61%, 5/26/13 241,558
996,647 B+/Ba3 Psychiatric Solutions, Inc., Term Loan,
6.57%, 12/3/12 979,206
28,736 B+/Ba2 Sun Health Care Group, Inc., Delayed Draw Term
Loan, 5.05%, 1/15/08 28,018
80,460 B+/Ba2 Sun Health Care Group, Inc., Synthetic Loan,
5.26%, 4/12/14 78,448
354,491 B+/Ba2 Sun Health Care Group, Inc., Term Loan,
7.37%, 4/12/14 345,629
-----------
$ 2,131,662
-----------
The accompanying notes are an integral part of these financial statements. 19
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings Value
Health Care Services - 1.3%
$ 431,422 BB-/B2 Healthsouth Corp., Term Loan, 7.86%, 3/10/13 $ 423,235
-----------
Health Care Supplies - 1.5%
498,750 BB/B1 Inverness Medical Innovations, Term Loan,
7.2%, 6/26/14 $ 489,398
-----------
Total Health Care Equipment & Services $ 3,044,295
-----------
Pharmaceuticals & Biotechnology - 0.8%
Pharmaceuticals - 0.8%
249,372 BB/NR Talecris Biotherapeutics Holdings, First Lien Term
Loan, 9.08%, 12/6/13 $ 248,645
-----------
Total Pharmaceuticals & Biotechnology $ 248,645
-----------
Diversified Financials - 9.2%
Asset Management & Custody Banks - 0.8%
249,375 BB-/Ba1 Asset Acceptance Capital, Tranche B Term Loan,
7.94%, 6/12/13 $ 241,894
-----------
Consumer Finance - 0.8%
143,705 BB-/B3 Dollar Financial Corp., Canadian Loan,
7.95%, 10/30/12 $ 140,112
105,665 BB-/B3 Dollar Financial Corp., Delayed Draw Term Loan,
7.95%, 10/30/12 103,024
-----------
$ 243,136
-----------
Other Diversified Financial Services - 7.6%
333,333 NR/NR Fontaineblue Las Vegas, Initial Term Loan,
8.95%, 5/17/14 $ 325,833
500,000 BB-/BA3 Vangent, Inc., Term Loan, 0.0%, 2/14/13 488,125
899,453 BB-/Ba1 Mach Gen LLC, Term B Loan, 7.5%, 2/22/14 872,244
93,750 BB-/Ba1 Mach Gen LLC, Synthetic Loan, 7.2%, 2/22/13 90,914
250,000 BB-/Ba3 Metavante Corp., Term Loan, 0.0%, 11/1/14 244,375
248,121 B-/B1 Riverdeep Holdings, Term Loan, 7.95%, 2/16/13 247,087
-----------
$ 2,268,578
-----------
Total Diversified Financials $ 2,753,608
-----------
20 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings Value
Insurance - 5.3%
Insurance Brokers - 5.3%
$ 498,750 B-/NR AmWins Group, Inc., Initial Term Loan,
8.06%, 6/11/13 $ 473,813
28,758 NR/NR HUB International Holdings, Delayed Draw Term
Loan, 3.46%, 6/13/14 28,237
407,475 NR/NR HUB International Holdings, Initial Term Loan,
8.2%, 6/13/14 400,090
250,000 NR/NR Riviera Holdings Corp., Term Loan,
7.2%, 6/8/14 246,875
498,750 B-/B2 USI Holdings Corp., Tranche B Term Loan, 7.95%,
4/30/14 491,269
-----------
$ 1,640,284
-----------
Total Insurance $ 1,640,284
-----------
Technology Hardware & Equipment - 8.4%
Computer Storage & Peripherals - 1.5%
496,250 BB/Ba3 Sungard Data Systems, New U.S. Term Loan,
7.36%, 2/12/14 $ 490,611
-----------
Electronic Equipment & Instruments - 3.0%
495,000 NR/NR Huawei-3Com Co., Ltd., Tranche B Term Loan,
8.14%, 9/28/12 $ 475,200
497,500 BB-/Ba3 Itron, Inc., Dollar Term Loan, 7.17%, 4/18/14 493,147
-----------
$ 968,347
-----------
Electronic Manufacturing Services - 3.1%
797,751 NR/Ba3 Baldor Electric Co., Term Loan,
7.13%, 1/31/14 $ 789,774
190,745 BBB-/Baa2 Mosaic Co., Tranche B Term Loan,
7.21%, 12/1/13 190,558
-----------
$ 980,332
-----------
Technology Distributors - 0.8%
250,000 BB-/Ba3 Scitor Corp., Term Loan, 9.38%, 9/26/14 $ 250,000
-----------
Total Technology Hardware & Equipment $ 2,689,290
-----------
Semiconductors - 3.0%
Semiconductors - 3.0%
992,500 BB+/NR Freescale Semiconductor, Inc., Term Loan,
7.33%, 12/2/13 $ 954,851
-----------
Total Semiconductors $ 954,851
-----------
The accompanying notes are an integral part of these financial statements. 21
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings Value
Telecommunication Services - 5.4%
Alternative Carriers - 0.8%
$ 250,000 B/Caa1 Paetec Holding Corp., Replacement Loan,
0.0%, 2/28/13 $ 248,438
-----------
Integrated Telecommunication Services - 0.8%
230,315 BB-/Ba2 Telesat Canda, Term Loan B, 0.0%, 10/24/14 $ 228,444
-----------
Wireless Telecommunication Services - 3.8%
497,500 B-/B1 American Cellular Corp., Tranche B Term Loan,
7.24%, 3/15/14 $ 496,412
249,369 B+/Ba2 Leap Wireless, Term B Loan, 7.45%, 6/16/13 246,433
249,370 B+/NR MetroPCS Wireless, Inc., New Tranche B Term
Loan, 7.58%, 11/4/13 244,978
250,000 BB-/Ba2 Stratos Global Corp., Term B Facility Loan,
7.95%, 2/13/12 245,833
-----------
$ 1,233,656
-----------
Total Telecommunication Services $ 1,710,538
-----------
Utilities - 6.2%
Independent Power Producer & Energy Traders - 5.4%
995,000 D/Ba3 Calpine Corp., First Priority Term Loan,
7.448%, 3/29/09 $ 986,561
119,502 BB/Ba1 NRG Energy, Inc., Credit Linked Loan,
7.11%, 2/1/13 117,194
287,131 BB/Ba1 NRG Energy, Inc., Term Loan, 6.85%, 2/1/13 281,586
250,000 BB-/Ba3 Texas Competitive Electric Holdings, Initial
Tranche B-2 Loan, 0.0%, 10/10/14 249,375
-----------
$ 1,634,716
-----------
Multi-Utilities - 0.8%
250,000 BB-/NR Alliant Holdings I, Inc, Term Loan, 0.0%, 8/21/14 $ 249,531
-----------
Total Utilities $ 1,884,247
-----------
TOTAL SENIOR FLOATING RATE
LOAN INTERESTS
(Cost $29,076,284) $28,260,018
-----------
22 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Moody's
Amount Ratings Value
TEMPORARY CASH INVESTMENTS - 7.9%
Commercial Paper - 7.9%
$1,255,000 NR/NR Banco Bilbao Vizcaya, 5.0%, 11/1/07 (144A) $ 1,255,000
1,255,000 NR/NR BNP Paribas Financial, Inc., 4.9%, 11/1/07 1,255,000
------------
$ 2,510,000
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $2,510,000) $ 2,510,000
------------
TOTAL INVESTMENT IN SECURITIES - 107.3%
(Cost $34,650,791)(a) $ 33,754,889
------------
OTHER ASSETS AND LIABILITIES - (7.3)% $ (1,850,107)
------------
TOTAL NET ASSETS - 100.0% $ 31,904,782
============
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
October 31, 2007, the value of these securities amounted to $2,874,200 or
9.0% of total net assets.
NR Not rated by either S&P or Moody's.
** Senior floating rate loan interests in which the Portfolio invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending rate plus a premium. These base lending rates
are generally (i) the lending rate offered by one or more major European
banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime rate
offered by one or more major United States banks, (iii) the certificate
of deposit or (iv) other base lending rates used by commercial lenders.
The rate shown is the coupon rate at period end.
(a) At October 31, 2007, the net unrealized loss on investments based on cost
for federal income tax purposes of $34,673,209 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $ 26,880
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (945,200)
----------
Net unrealized loss $ (918,320)
==========
(b) Debt obligation with a variable interest rate. Rate shown is rate at
period end.
Purchases and sales of securities (excluding temporary cash investments) for
the period ended October 31, 2007 aggregated $42,842,536 and $10,052,641,
respectively.
The accompanying notes are an integral part of these financial statements. 23
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 10/31/07
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (cost $34,650,791) $33,754,889
Cash 439,634
Receivables -
Investment securities sold 54,633
Fund shares sold 79,950
Interest 319,838
Due from Pioneer Investment Management, Inc. 1,125
Other 24,184
-----------
Total assets $34,674,253
-----------
LIABILITIES:
Payables -
Investment securities purchased $ 2,432,330
Dividends 244,742
Due to affiliates 1,279
Unrealized depreciation on unfunded corporate loans 22,522
Accrued expenses 68,598
-----------
Total liabilities $ 2,769,471
-----------
NET ASSETS:
Paid-in capital $32,815,474
Undistributed net investment income 140,079
Accumulated net realized loss on investments (132,347)
Net unrealized loss on investments (918,424)
-----------
Total net assets $31,904,782
===========
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $11,216,333/1,537,537 shares) $ 7.29
===========
Class C (based on $10,958,693/1,503,395 shares) $ 7.29
===========
Class Y (based on $9,729,756/1,333,903 shares) $ 7.29
===========
MAXIMUM OFFERING PRICE:
Class A ($7.29 [divided by] 95.5%) $ 7.63
===========
24 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Period 2/14/07 (Commencement of Operations) to 10/31/07
INVESTMENT INCOME:
Interest $ 1,637,749
-----------
EXPENSES:
Management fees $ 132,441
Transfer agent fees and expenses
Class A 575
Class C 451
Class Y 285
Distribution fees
Class A 10,606
Class C 73,570
Administrative fees 4,967
Custodian fees 17,614
Registration fees 46,466
Professional fees 68,248
Printing expense 16,162
Fees and expenses of nonaffiliated trustees 3,805
Miscellaneous 3,042
---------
Total expenses $ 378,232
Less management fees waived and expenses
reimbursed by Pioneer Investment
Management, Inc. (67,566)
Less fees paid indirectly (60)
-----------
Net expenses $ 310,606
-----------
Net investment income $ 1,327,143
-----------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
Net realized loss on investments $ (129,361)
-----------
Change in net unrealized loss on:
Investments $(895,902)
Unfunded corporate loans (22,522) $ (918,424)
--------- -----------
Net loss on investments $(1,047,785)
-----------
Net increase in net assets resulting from operations $ 279,358
===========
The accompanying notes are an integral part of these financial statements. 25
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Period 2/14/07 (Commencement of Operations) to 10/31/07
2/14/07
to
10/31/07
FROM OPERATIONS:
Net investment income $ 1,327,143
Net realized loss on investments (129,361)
Change in net unrealized loss on investments (918,424)
-----------
Net increase in net assets resulting from operations $ 279,358
-----------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.30 per share) $ (448,599)
Class C ($0.26 per share) (370,584)
Class Y ($0.30 per share) (401,916)
-----------
Total distributions to shareowners $(1,221,099)
-----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 4,772,696
Reinvestment of distributions 30,118
Cost of shares repurchased (1,956,291)
-----------
Net increase in net assets resulting from
Fund share transactions $ 2,846,523
-----------
Net increase in net assets $ 1,904,782
NET ASSETS:
Beginning of period (initial capitalization - 4,000,000 shares) 30,000,000
-----------
End of period $31,904,782
===========
Undistributed net investment income $ 140,079
===========
26 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
'07 Shares '07 Amount
CLASS A
Shares sold 400,858 $3,007,472
Reinvestment of distributions 2,601 19,094
Less shares repurchased (199,255) (1,456,433)
-------- ----------
Net increase 204,204 $1,570,133
======== ==========
CLASS C
Shares sold 233,308 $1,733,612
Reinvestment of distributions 1,506 11,024
Less shares repurchased (64,752) (471,025)
-------- ----------
Net increase 170,062 $1,273,611
======== ==========
CLASS Y
Shares sold 4,508 $ 31,612
Less shares repurchased (3,939) (28,833)
-------- ----------
Net increase 569 $ 2,779
======== ==========
The accompanying notes are an integral part of these financial statements. 27
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
2/14/07 (a)
to
10/31/07
CLASS A
Net asset value, beginning of period $ 7.50
-------
Increase (decrease) from investment operations:
Net investment income $ 0.32
Net realized and unrealized loss on investments (0.23)
-------
Net increase in net assets from investment operations $ 0.09
-------
Distributions to shareowners:
Net investment income $ (0.30)
-------
Net asset value, end of period $ 7.29
=======
Total return* 1.21%(b)
Ratio of net expenses to average net assets+ 1.10%**
Ratio of net investment income to average net assets+ 6.31%**
Portfolio turnover rate 49%(b)
Net assets, end of period (in thousands) $11,216
Ratios with no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly
Net expenses 1.47%**
Net investment income 5.94%**
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly
Net expenses 1.10%**
Net investment income 6.31%**
(a) Class A shares were first publicly offered on February 14, 2007.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
(b) Not annualized.
+ Ratios with no reduction for fees paid indirectly.
28 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
2/14/07 (a)
to
10/31/07
CLASS C
Net asset value, beginning of period $ 7.50
-------
Increase (decrease) from investment operations:
Net investment income $ 0.28
Net realized and unrealized loss on investments (0.23)
-------
Net increase in net assets from investment operations $ 0.05
-------
Distributions to shareowners:
Net investment income $ (0.26)
-------
Net asset value, end of period $ 7.29
=======
Total return* 0.70%(b)
Ratio of net expenses to average net assets+ 2.00%**
Ratio of net investment income to average net assets+ 5.38%**
Portfolio turnover rate 49%(b)
Net assets, end of period (in thousands) $10,959
Ratios with no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly
Net expenses 2.32%**
Net investment income 5.06%**
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly
Net expenses 2.00%**
Net investment income 5.38%**
(a) Class C shares were first publicly offered on February 14, 2007.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
(b) Not annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 29
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
2/14/07 (a)
to
10/31/07
CLASS Y
Net asset value, beginning of period $ 7.50
-------
Increase (decrease) from investment operations:
Net investment income $ 0.33
Net realized and unrealized loss on investments (0.24)
-------
Net increase in net assets from investment operations $ 0.09
-------
Distributions to shareowners:
Net investment income $ (0.30)
-------
Net asset value, end of period $ 7.29
=======
Total return* 1.24%(b)
Ratio of net expenses to average net assets+ 1.11%**
Ratio of net investment income to average net assets+ 6.27%**
Portfolio turnover rate 49%(b)
Net assets, end of period (in thousands) $ 9,730
Ratios with no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly
Net expenses 1.32%**
Net investment income 6.06%**
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly
Net expenses 1.11%**
Net investment income 6.27%**
(a) Class Y shares were first publicly offered on February 14, 2007.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
(b) Not annualized.
+ Ratios with no reduction for fees paid indirectly.
30 The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/07
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Floating Rate Fund (the Fund) is a Delaware statutory trust registered
under the Investment Company Act of 1940 as a non-diversified series of Pioneer
Series Trust VI, an open-end management investment company. The investment
objective of the Fund is to produce a high level of current income.
The Trustees have authorized the issuance of three classes of shares designated
as Class A, Class C, and Class Y shares. Each class of shares represents an
interest in the same portfolio of investments of the Fund and has equal rights
to voting, redemptions, dividends and liquidation, except that each class of
shares can bear different transfer agent and distribution fees and has
exclusive voting rights with respect to the distribution plans that have been
adopted by Class A and Class C shareowners, respectively. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles, that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. The Fund invests in below investment grade debt
securities. Debt securities rated below investment grade are commonly referred
to as "junk bonds" and are considered speculative. These securities involve
greater risk of loss, are subject to greater price volatility, and are less
liquid, especially during periods of economic uncertainty or change, than
higher rated debt securities. The Fund's investments in foreign markets or
countries with limited developing markets may also subject the Fund to a
greater degree of risk than in a developed market. These risks include
disruptive political or economic conditions and the possible imposition of
adverse governmental laws or currency exchange restrictions. The Fund's
prospectus(es) contains information regarding the
31
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
Fund's principal risks. Please refer to those documents when considering the
Fund's risks.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value
is computed once daily, on each day the New York Stock Exchange (NYSE) is
open, as of the close of regular trading on the NYSE. Senior loans are
valued in accordance with guidelines established by the Board of Trustees
at the mean between the last available bid and asked prices from one or
more brokers or dealers as obtained from Loan Pricing Corporation. For the
limited number of Senior Loans for which no reliable price quotes are
available, such Senior Loans will be valued by Loan Pricing Corporation
through the use of pricing matrices to determine valuations. Fixed-income
securities are valued at prices supplied by independent pricing services,
which consider such factors as Treasury spreads, yields, maturities and
ratings. Valuations may be supplemented by values obtained from dealers
and other sources, as required. Equity securities are valued at the last
sale price on the principal exchange where they are traded. Securities or
loans for which quotations are not readily available are valued at their
fair values as determined by, or under the direction of, the Board of
Trustees. Trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. The Fund may also use the fair value of a
security, including a non-U.S. security, when the closing market price on
the primary exchange where the security is traded no longer accurately
reflects the value of the security as of the close of the exchange. At
October 31, 2007, the fund held no fair valued securities. Temporary cash
investments are valued at cost which approximates market value.
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis with
a corresponding increase or decrease in the
32
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
cost basis of the security. Interest income is recorded on the accrual
basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal income tax provision is
required.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may
be shown in the accompanying financial statements as from or in excess of
net investment income or as from net realized gain on investment
transactions, or as from paid-in capital, depending on the type of
book/tax differences that may exist.
At October 31, 2007, the Fund had a net capital loss carryforward of
$132,347, which will expire in 2015 if not utilized.
At October 31, 2007, the Fund reclassified $34,035 to increase
undistributed net investment income, $2,986 to increase accumulated net
realized loss on investments and $31,049 to decrease paid in capital to
reflect permanent book/tax differences. The reclassification has no impact
on the net asset value of the Fund and is designed to present the Fund's
capital accounts on a tax basis.
The tax character of distributions paid during the period ended October
31, 2007 was as follows:
2007
----------
Distributions paid from:
Ordinary Income $1,221,099
----------
Total $1,221,099
==========
33
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a
federal income tax basis at October 31, 2007:
2007
---------
Undistributed ordinary income $ 407,239
Dividends payable (244,742)
Capital loss carryforward (132,347)
Unrealized depreciation (940,842)
---------
Total $(910,692)
=========
The difference between book basis and tax basis unrealized
appreciation is attributable to the tax treatment of premium.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A
(UniCredito Italiano), earned no underwriting commissions on the sale of
Class A shares during the period ended October 31, 2007.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to all classes of shares
based on their respective percentage of adjusted net assets at the
beginning of the day.
Distribution fees are calculated based on the average daily net asset
value attributable to Class A and Class C shares of the Fund, respectively
(See Note 4). Class Y shares are not subject to a distribution plan.
Shareowners of each class participate in all expenses and fees paid to the
transfer agent, Pioneer Investment Management Shareholder Services, Inc.
(PIMSS), for its services, which are allocated based on the number of
accounts in each class and the ratable allocation of related out-of-pocket
expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with
34
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
the daily dividends. Distributions to shareowners are recorded as of the
ex-dividend date. Distributions paid by the Fund with respect to each
class of shares are calculated in the same manner, at the same time, and
in the same amount, except that Class A, Class C, and Class Y shares can
bear different transfer agent and distribution expense rates.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian, or sub custodians. The
Fund's investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, manages the
Fund's portfolio. Management fees are calculated daily at the annual rate of
0.60% on the first $500 million of the Fund's average daily net assets and
0.55% on average daily net assets over $500 million. For the period ended
October 31, 2007, the net management fee was equivalent to 0.60% of the Fund's
average daily net assets.
PIM has agreed not to impose all or portion of its management fee and to assume
other operating expenses of the Fund to the extent necessary to limit expenses
to 1.10% and 2.00% of the Fund's average daily net assets attributable to Class
A shares and Class C shares, respectively.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. Included in "Due to affiliates" reflected on
the Statement of Assets and Liabilities is $544 in management fees,
administrative costs and certain other services payable to PIM at October 31,
2007.
35
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
3. Unfunded Loan Commitments
As of October 31, 2007, the Fund had unfunded loan commitments of approximately
$489,299 (excluding unrealized depreciation on those commitments of $22,522 as
of October 31, 2007) which could be extended at the option of the borrower,
pursuant to the following loan agreements:
Unfunded
Borrower Commitment
- ------------------------------------------------------------------
CHS/Community Health Systems, Inc., Delayed
Draw Term Loan $ 30,936
Fontainebleau Las Vegas, LLC, Delayed Draw
Term Loan $166,667
HUB International, Ltd., Delayed Draw Term Loan $ 62,673
New World Gaming Partners Holdings, Ltd., Delayed
Draw Term Loan $ 83,325
NRG Energy, Inc., Delayed Draw Term Loan $ 91,925
Sun Healthcare Group, Inc., Delayed Draw
Term Loan $ 34,482
Telesat Canada, Delayed Draw Term Loan $ 19,291
4. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in "Due to affiliates" reflected on the Statement of
Assets and Liabilities is $358 in transfer agent fees payable to PIMSS at
October 31, 2007.
5. Distribution and Service Plans
The Fund adopted Plans of Distribution with respect to each class of shares
except Class Y shares (Class A Plan and Class C Plan) in accordance with Rule
12b-1 of the Investment Company Act of 1940. Currently under the Class A Plan,
PFD is reimbursed for distribution expenses in an amount up to 0.25% of the
Fund's average daily net assets attributable to Class A shares. Pursuant to the
Class C Plan, the Fund pays PFD 1.00% of the average daily net assets
attributable to Class C shares. The fee 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
36
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
the Statement of Assets and Liabilities is $377 in distribution fees payable to
PFD at October 31, 2007.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid to
PFD. For the period ended October 31, 2007 no CDSCs were paid to PFD.
6. Expense Offset and Agreements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the period ended October 31, 2007, the Fund's expenses
were reduced by $60 under such arrangements.
7. New Pronouncements
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions have a
"more-likely-than-not" probability of being sustained by the applicable tax
authority. Tax positions deemed to not meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the reporting period in which
they are realized. Adoption of FIN 48 is required for fiscal years beginning
after December 15, 2006 and is to be applied to all open tax years as of no
later than April 30, 2008. At this time, management is evaluating the
implications of FIN 48 and any impact in the financial statements has not yet
been determined.
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring
37
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
fair value and expands disclosures about fair value measurements. Management is
currently evaluating the impact the adoption of SFAS 157 will have on the
Fund's financial statement disclosures.
ADDITIONAL INFORMATION (unaudited)
The qualified interest income percentage, which represents the portion of the
Fund's ordinary income that is exempt from nonresident alien tax withholding,
is 89.88% for the period ended October 31, 2007.
38
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees of Pioneer Series Trust VI and the
Shareowners of Pioneer Floating Rate Fund
We have audited the accompanying statement of assets and liabilities of Pioneer
Floating Rate Fund (the "Fund") (one of the portfolios constituting Pioneer
Series Trust VI), including the schedule of investments, as of October 31,
2007, and the related statement of operations, the statement of changes in net
assets, and the financial highlights for the period from February 14, 2007
(Commencement of Operations) to October 31, 2007. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Fund's internal
control over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of October 31, 2007, by correspondence with
the custodian, brokers and agent banks or by other appropriate auditing
procedures where replies from brokers were not received. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Floating Rate Fund at October 31, 2007, the results of its operations,
the changes in its net assets, and the financial highlights for the period from
February 14, 2007 (Commencement of Operations) to October 31, 2007, in
conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 14, 2007
39
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's affairs.
The officers of the Fund are responsible for the Fund's operations. The Fund's
Trustees and officers are listed below, together with their principal
occupations during the past five years. Trustees who are interested persons of
the Fund within the meaning of the 1940 Act are referred to as Interested
Trustees. Trustees who are not interested persons of the Fund are referred to as
Independent Trustees. Each of the Trustees (except Mr. Kingsbury, Mr. West and
Mr. Bock) serves as a Trustee of each of the 81 U.S. registered investment
portfolios for which Pioneer serves as investment adviser (the "Pioneer Funds").
Mr. Kingsbury serves as Trustee of 33 of the 81 Pioneer Funds, Mr. West serves
as Trustee of 32 of the 81 Pioneer Funds, and Mr. Bock serves as Trustee of 80
of the 81 Pioneer Funds. The address for all Trustees and all officers of the
fund is 60 State Street, Boston, Massachusetts 02109.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerinvestments.com and on the SEC's web site at
http://www.sec.gov.
40
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Position Held Term of Office and
Name, Age and Address With the Fund Length of Service
John F. Cogan, Jr. (81)* Chairman of the Trustee since 2006.
Board, Trustee and Serves until a
President successor trustee
is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Daniel K. Kingsbury (49)* Trustee and Trustee since March
Executive Vice 2007. Serves at
President the discretion of
the Board
- --------------------------------------------------------------------------------
Other Directorships Held
Name, Age and Address Principal Occupation During Past Five Years by this Trustee
John F. Cogan, Jr. (81)* Deputy Chairman and a Director of Pioneer Global Asset None
Management S.p.A. ("PGAM"); Non-Executive Chairman
and a Director of Pioneer Investment Management USA
Inc. ("PIM-USA"); Chairman and a Director of Pioneer;
Chairman and Director of Pioneer Institutional Asset
Management, Inc. (since 2006); Director of Pioneer
Alternative Investment Management Limited (Dublin);
President and a Director of Pioneer Alternative Invest-
ment Management (Bermuda) Limited and affiliated
funds; Director of PIOGLOBAL Real Estate Investment
Fund (Russia) (until June 2006); Director of Nano-C, Inc.
(since 2003); Director of Cole Management Inc. (since
2004); Director of Fiduciary Counseling, Inc.; President
and Director of Pioneer Funds Distributor, Inc. ("PFD")
(until May 2006); President of all of the Pioneer Funds;
and Of Counsel, Wilmer Cutler Pickering Hale and Dorr LLP
- ----------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (49)* Director, CEO and President of Pioneer Investment None
Management USA Inc.; Pioneer Investment Management,
Inc. and Pioneer Institutional Asset Management, Inc.
(since March 2007); Executive Vice President of all of
the Pioneer Funds (since March 2007); Director of
Pioneer Global Asset Management S.p.A. (since March
2007); Head of New Markets Division, Pioneer Global
Asset Management S.p.A. (2000 - 2007)
- ----------------------------------------------------------------------------------------------------------------
41
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Position Held Term of Office and
Name, Age and Address With the Fund Length of Service
David R. Bock (63) Trustee Trustee since 2006.
Serves until a
successor trustee
is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Mary K. Bush (59) Trustee Trustee since 2006.
Serves until a
successor trustee
is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name, Age and Address Principal Occupation During Past Five Years by this Trustee
David R. Bock (63) Executive Vice President and Chief Financial Officer, Director of The
I-trax, Inc. (publicly traded health care services company) Enterprise Social
(2004 - present); Partner, Federal City Capital Advisors Investment Company
(boutique merchant bank) (1997 to 2004); and Executive (privately-held affordable
Vice President and Chief Financial Officer, Pedestal Inc. housing finance
(internet-based mortgage trading company) company); and Director
(2000 - 2002) of New York Mortgage
Trust (publicly traded
mortgage REIT)
- -----------------------------------------------------------------------------------------------------------------
Mary K. Bush (59) President, Bush International, LLC (international financial Director of Brady
advisory firm) Corporation (industrial
identification and
specialty coated material
products manufacturer);
Director of Briggs &
Stratton Co. (engine
manufacturer); Director
of UAL Corporation
(airline holding
company); Director of
Mantech International
Corporation (national
security, defense, and
intelligence technology
firm): and Member,
Board of Governors,
Investment Company
Institute
- -----------------------------------------------------------------------------------------------------------------
42
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Position Held Term of Office and
Name, Age and Address With the Fund Length of Service
Margaret B.W. Graham (60) Trustee Trustee since 2006.
Serves until a
successor trustee
is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Thomas J. Perna (57) Trustee Trustee since 2006.
Serves until a
successor trustee
is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Marguerite A. Piret (59) Trustee Trustee since 2006.
Serves until a
successor trustee
is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Stephen K. West (79) Trustee Trustee since 2006.
Serves until a
successor trustee
is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
John Winthrop (71) Trustee Trustee since 2006.
Serves until a
successor trustee
is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Pioneer Floating Rate Fund
Other Directorships Held
Name, Age and Address Principal Occupation During Past Five Years by this Trustee
Margaret B.W. Graham (60) Founding Director, Vice-President and Corporate None
Secretary, The Winthrop Group, Inc. (consulting firm);
and Desautels Faculty of Management, McGill University
- ----------------------------------------------------------------------------------------------------------------
Thomas J. Perna (57) Private investor (2004 - present); and Senior Executive Director of Quadriserv
Vice President, The Bank of New York (financial and Inc. (technology products
securities services) (1986 - 2004) for securities lending
industry)
- ----------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (59) President and Chief Executive Officer, Newbury, Piret & Director of New America
Company, Inc. (investment banking firm) High Income Fund, Inc.
(closed-end investment
company)
- ----------------------------------------------------------------------------------------------------------------
Stephen K. West (79) Senior Counsel, Sullivan & Cromwell (law firm) Director, The Swiss
Helvetia Fund, Inc.
(closed-end investment
company)
- ----------------------------------------------------------------------------------------------------------------
John Winthrop (71) President, John Winthrop & Co., Inc. (private None
investment firm)
- ----------------------------------------------------------------------------------------------------------------
43
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Position Held Term of Office and
Name, Age and Address With the Fund Length of Service
Dorothy E. Bourassa (59) Secretary Since 2006. Serves
at the discretion of
the Board
- -------------------------------------------------------------------------
Christopher J. Kelley (42) Assistant Secretary Since 2006. Serves
at the discretion of
the Board
- -------------------------------------------------------------------------
Vincent Nave (62) Treasurer Since 2006. Serves
at the discretion of
the Board
- -------------------------------------------------------------------------
Mark E. Bradley (47) Assistant Treasurer Since 2006. Serves
at the discretion of
the Board
- -------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Treasurer Since 2006. Serves
at the discretion of
the Board
- -------------------------------------------------------------------------
Gary Sullivan (49) Assistant Treasurer Since 2006. Serves
at the discretion of
the Board
- -------------------------------------------------------------------------
Other Directorships Held
Name, Age and Address Principal Occupation During Past Five Years by this Trustee
Dorothy E. Bourassa (59) Secretary of PIM-USA; Senior Vice President- Legal None
of Pioneer; Secretary/Clerk of most of PIM-USA's
subsidiaries; and Secretary of all of the Pioneer Funds
since September 2003 (Assistant Secretary from
November 2000 to September 2003)
- -----------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (42) Vice President and Senior Counsel of Pioneer since None
July 2002 and Assistant Secretary of all of the Pioneer
Funds since September 2003; Vice President and Senior
Counsel of BISYS Fund Services, Inc. (April 2001 to
June 2002); Senior Vice President and Deputy General
Counsel of Funds Distributor, Inc. (July 2000 to
April 2001)
- -----------------------------------------------------------------------------------------------------------------
Vincent Nave (62) Vice President-Fund Accounting, Administration and None
Controllership Services of Pioneer; and Treasurer of
all of the Pioneer Funds
- -----------------------------------------------------------------------------------------------------------------
Mark E. Bradley (47) Deputy Treasurer of Pioneer since 2004 and Assistant None
Treasurer of all of the Pioneer Funds since November
2004; Treasurer and Senior Vice President, CDC IXIS
Asset Management Services from 2002 to 2003
- -----------------------------------------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Vice President-Fund Accounting, Administration None
and Controllership Services of Pioneer; and Assistant
Treasurer of all of the Pioneer Funds
- ----------------------------------------------------------------------------------------------------------------
Gary Sullivan (49) Fund Accounting Manager - Fund Accounting, None
Administration and Controllership Services of Pioneer;
and Assistant Treasurer of all of the Pioneer Funds
- -----------------------------------------------------------------------------------------------------------------
44
Pioneer Floating Rate Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Position Held Term of Office and
Name, Age and Address With the Fund Length of Service
Katherine Kim Sullivan (33) Assistant Treasurer Since 2006. Serves
at the discretion of
the Board
- -------------------------------------------------------------------------
Teri W. Anderholm (48) Chief Compliance Since January 2007.
Officer Serves at the
discretion of the
Board
- -------------------------------------------------------------------------
Other Directorships Held
Name, Age and Address Principal Occupation During Past Five Years by this Trustee
Katherine Kim Sullivan (33) Fund Administration Manager - Fund Accounting, None
Administration and Controllership Services since June
2003 and Assistant Treasurer of all of the Pioneer
Funds since September 2003; Assistant Vice President -
Mutual Fund Operations of State Street Corporation from
June 2002 to June 2003 (formerly Deutsche Bank Asset
Management)
- -----------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (48) Chief Compliance Officer of Pioneer since December 2006 None
and of all the Pioneer Funds since January 2007; Vice
President and Compliance Officer, MFS Investment
Management (August 2005 to December 2006); Consultant,
Fidelity Investments (February 2005 to July 2005);
Independent Consultant (July 1997 to February 2005)
- -----------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers or directors of the fund's
investment adviser and certain of its affiliates.
The outstanding capital stock of PFD, Pioneer and PIMSS is indirectly wholly owned by UniCredito Italiano S.p.A.
("UniCredito Italiano"), one of the largest banking groups in Italy. Pioneer, the fund's investment adviser,
provides investment management and financial services to mutual funds, institutional and other clients.
45
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
46
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
47
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
48
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
49
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
50
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
51
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
52
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the
Commission's web site at http://www.sec.gov. The filed form may also be viewed
and copied at the Commission's Public Reference Room in Washington, DC.
Information regarding the operations of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Audit Fees
Fees for audit services provided to the Fund, including fees
associated with the filings to update its Form N-2 and issuance
of comfort letters, totaled approximately $45,735 in 2007 and
$0 in 2006.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no fees for audit-related or other services provided
to the Fund during the fiscal years ended October 31, 2007 and
2006.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees
Fees for tax compliance services, primarily for tax returns,
totaled approximately $7,820 and $0 for 2007 and 2006,
respectively.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
Other Fees
There were no other services provided to the Fund during the
fiscal years ended October 31, 2007 and 2006.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered into on or
after May 6, 2003, the effective date of the new SEC pre-
approval rules, the Fund's audit committee is required to pre-
approve services to affiliates defined by SEC rules to the
extent that the services are determined to have a direct impact
on the operations or financial reporting of the Fund. For the
years ended October 31, 2007 and 2006, there were no services
provided to an affiliate that required the Fund's audit
committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and affiliates, as
previously defined, totaled approximately $7,820 in 2007 and
$0 in 2006.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust VI
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date December 28, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date December 28, 2007
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date December 28, 2007
* Print the name and title of each signing officer under his or her signature.