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 811-10395
Pioneer Series Trust VII
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 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
-----------------------
GLOBAL
HIGH YIELD
FUND
PGHYX
Ticker Symbol
Annual
Report
10/31/07
[LOGO] PIONEER
Investments(R)
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 16
Schedule of Investments 18
Financial Statements 42
Notes to Financial Statements 51
Report of Independent Registered Public Accounting Firm 62
Trustees, Officers and Service Providers 63
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
2
Letter
important support for stock and bond valuations, and so central bank 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 Global High Yield Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 10/31/07
- --------------------------------------------------------------------------------
High-yielding bonds produced healthy, positive returns for the 12 months ending
October 31, 2007, despite facing increasing volatility in the closing months of
the period. Strong global growth and healthy corporate profits continued to
provide a favorable backdrop for corporate securities in the opening months of
the period. However, worries about declining home values and a looming crisis
in the subprime mortgage market led to increasing volatility for corporate
bonds as well as equities in the latter months of the fiscal year. In the
following discussion, Andrew D. Feltus, leader of the team managing the Pioneer
Global High Yield Fund, provides an update on the Fund and its investment
strategies for the 12 months ending October 31, 2007.
Q: How did the Fund perform?
A: Pioneer Global High Yield Fund's Class A shares had a total return of 8.30%,
at net asset value, for the 12 months ending October 31, 2007. Over the same
period, the Merrill Lynch Global High Yield and Emerging Markets Plus Index
returned 8.47% while the Merrill Lynch High Yield Master II Index rose by
6.85%. The average return of the 450 funds in Lipper's High Current Yield
category for the 12 months that ended October 31, 2007 was 6.21%. On October
31, 2007, the Fund's 30-day SEC yield for Class A shares was 7.84%.
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 12 months ending October
31, 2007?
A: The conditions for investments in high-yield bonds were much more favorable
during the first half of the fiscal year than the second. Early in the
period, high-yield bonds, both domestic and foreign, maintained the brisk
performance momentum built up over the previous two years, benefiting from
the robust
4
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
expansion of the global economy, strong corporate profit growth, and
remarkably low default rates. The supportive environment began to change
during the second half of the period, however, as the effects of monetary
tightening policies by the U.S. Federal Reserve Board and other major
central banks began to be felt. Early signs of a deceleration of growth,
particularly in the United States, began to appear, while the most
speculative part of the domestic economy in recent years - the housing
industry - began to slump. Falling home values created problems in the
subprime mortgage market, which began to affect the balance sheets of
banks and other home lenders as well as investors in some mortgage-related
securities. As major banks began disclosing information about their
exposure to subprime mortgages, anxieties spread through the financial
markets. In a general flight to quality, investors increasingly sought out
the highest-quality, lowest-risk securities, moving away from high-yield
corporate bonds as well as equities. The high prices and narrow spreads -
or yield advantages of high-yield bonds over Treasuries - accelerated the
flight to quality, as investors saw little reward for taking on the added
credit risks of lower-rated corporate debt. Despite that trend, the
underlying economic fundamentals of high-yield issuers remained strong.
With corporations posting strong profits and solid balance sheets, the
default rate of domestic high-yield corporate bonds stood at just 1.1% at
the end of the period - far below the long-term average rates.
Outside the United States, high-yield bonds in Europe and other major
industrialized nations performed in line with the domestic market,
although the appreciation of most foreign currencies against the dollar
boosted the returns of U.S.-based investors in foreign markets. Emerging
market debt continued to outperform other parts of the high-yield
universe, although corporate bonds from emerging markets endured a sharp
correction when global financial markets became increasingly volatile
beginning in June 2007.
Q: What were your principal strategies?
A: We did not make any notable changes in the overall positioning of the Fund
during the period, although the Fund did take profits and reduce its
exposure to the European market, where we thought investors had an overly
optimistic view of its growth
5
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 10/31/07 (continued)
- --------------------------------------------------------------------------------
potential. We believed the high-yield market in Europe had become
expensive, but we continued to favor securities denominated in the
Norwegian krone, a currency that benefits from the strong demand for oil.
We believed the U.S. dollar was likely to continue to weaken against other
currencies, especially emerging markets, and so we maintained the Fund's
positions in countries such as Brazil, Colombia and Argentina. We had
reduced the Fund's exposure to emerging markets early in the fiscal year,
but then added to the Fund's positions late in the period after prices of
emerging market corporates became more attractive following the June
market correction.
While we did not anticipate a recession, we pared back the Fund's exposure
to the more cyclical - or economically sensitive - areas of the market,
such as basic industries and materials. As we did so, we added to the
Fund's investments in less cyclical groups, including energy, health care
and insurance. We became somewhat more defensive and increased the Fund's
investments in bank loans to about 6% of Fund assets. Bank loans generally
have lower credit risk than high-yield bonds.
At the end of the fiscal year, on October 31, 2007, 58.6% of Fund assets
were invested in U.S. high-yield corporate bonds, 25.3% in emerging market
debt and 13.7% in high-yield corporates from other developed nations. A
total of 9.4% of assets were invested in securities denominated in foreign
currencies. The average credit rating of Fund holdings was B-. The Fund's
effective duration - a measure of price sensitivity to changes in interest
rates - was 4.04 years, while the average maturity of Fund holdings was
6.66 years.
Q: What types of investments most affected performance during the 12 months
ended October 31, 2007?
A: Many of the Fund's top individual performers during the period were the
bonds of companies that issued initial public stock offerings and bought
back much of their outstanding debt at higher prices than their current
market prices. They included bonds of: New World Resources, a Czech coal
miner; SulAmerica, a Brazilian insurance company; Codere, a Spanish-based
operator of slot-machine parlors and other gaming facilities in Europe; and
Intomex, a Miami-based retailer of computers in Latin America.
6
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Other bond holdings appreciated during the period when their issuing
companies were acquired by other corporations. Those included bonds of
Compucom (CRH Holding), a computer services company, and Mirant Jamaica, a
Jamaican utility. In addition, when Hexion acquired Huntsman, another
chemical company, our investment in Hexion bonds gained in value as the
company was required to buy back its previously issued debt under terms of
loan covenants.
The Fund's investment in bonds of ATF, a Kazak-based bank, also helped
performance when the company was acquired by an Italian-based financial
corporation. However, the Fund's holdings in two other Kazak banks, BTA
and KKB, did not perform as well. In general, the Fund's increased
exposure to emerging market corporate bonds late in the period did not
help, as the securities tended to underperform in a volatile market.
Individual investments that detracted from the Fund's performance during
the period included bonds of: Tropicana Casinos & Resorts, which was hurt
by slowing business at its Atlantic City, N.J. facility; homebuilder
William Lyons; and Land Source, a joint venture by homebuilder Lennar
Corp. and the California Public Employees' Retirement System (CALPERS).
Q: What is your investment outlook?
A: We think an economic deceleration in the United States is likely, but not a
recession. The prices of high-yield bonds - as reflected in their spreads or
yield advantages over Treasuries - are now more attractive after the summer
corrections, and corporate profits continue to look healthy. We believe the
default rate for high-yield debt may rise, but principally because it has
been extremely low relative to long-term averages. We anticipate that the
Federal Reserve Board will react to developments in the economy and the
markets and that further cuts in the Fed funds rate are possible.
Overall, we believe that we have positioned the Fund relatively
defensively, consistent with the outlook of slowing, but persistent
economic growth.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. When interest rates rise, the prices of fixed-income
securities in the Fund will generally fall. Conversely,
7
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 10/31/07 (continued)
- --------------------------------------------------------------------------------
when interest rates fall, the prices of fixed-income securities in the Fund
will generally rise. Investing in foreign and/or emerging markets securities
involves risks relating to interest rates, currency exchange rates, economic,
and political conditions. Investments in the Fund are subject to possible loss
due to the financial failure of underlying securities and their inability to
meet their debt obligations. Prepayment risk is the chance that mortgage-backed
bonds will be paid off early if falling interest rates prompt homeowners to
refinance their mortgages. Forced to reinvest the unanticipated proceeds at
lower interest rates, the Fund would experience a decline in income and lose
the opportunity for additional price appreciation associated with falling
interest rates. The Fund can invest in a limited number of securities and, as a
result, the Fund's performance may be more volatile than the performance of
other funds holding more securities. At times, the Fund's investments may
represent industries or industry sectors that are interrelated or have common
risks, making it more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. These risks
may increase share price volatility.
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 Global High Yield Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 10/31/07
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Corporate Bonds 83.2%
Senior Floating Rate Loans 6.0%
Temporary Cash Investments 4.4%
Asset-Backed Securities 2.9%
Foreign Government Bonds 1.0%
Collateralized Mortgage Obligations 0.8%
Convertible Corporate Bonds 0.7%
Municipal Bonds 0.6%
Convertible Preferred Stocks 0.2%
Rights/Warrants 0.2%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of total debt holdings)*
1. Ineos Group Holdings Plc, 7.875%, 2/15/16 (144A) 1.16%
2. PGS Solutions, Inc., 9.872%, 2/15/17 (144A) 1.12
3. Intergen NV, 9.0%, 6/30/17 (144A) 1.01
4. NCO Group, Inc., 11.875%, 11/15/14 0.96
5. True Move Co., Ltd., 10.75%, 12/16/13 (144A) 0.92
6. Exopac Holding Corp., 11.25%, 2/1/14 0.91
7. Broadview Networks Holdings, 11.375%, 9/1/12 (144A) 0.89
8. First Data Corp., 9.875%, 9/24/15 (144A) 0.81
9. Petromena AS, 9.75%, 5/24/12 (144A) 0.80
10. Pegasus Solutions, Inc., 10.5%, 4/15/15 (144A) 0.76
* The list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
9
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 10/31/07
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 10/31/07 10/31/06
- ------- ---------- ---------
A $12.30 $12.34
B $12.27 $12.31
C $12.24 $12.28
Y $12.10 $12.19
Class 10/31/07 7/6/07
- ------- ---------- ---------
Z $12.31 $12.65
Distributions Per Share
- --------------------------------------------------------------------------------
11/1/06 - 10/31/07
-----------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ---------------- --------------- --------------
A $0.9768 $0.0304 $0.0306
B $0.8712 $0.0304 $0.0306
C $0.8772 $0.0304 $0.0306
Y $0.9928 $0.0304 $0.0306
7/6/07 - 10/31/07
-----------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ---------------- --------------- --------------
Z $0.3225 $ - $ -
- --------------------------------------------------------------------------------
INDEX DEFINITION
- --------------------------------------------------------------------------------
The Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index tracks
the performance of the below and border-line investment-grade global debt
markets denominated in the major developed market currencies. The index includes
sovereign issuers rated BBB1 and lower along with corporate issuers rated BB1
and lower. There are no restrictions on issuer country of domicile. However, the
bonds must be publicly issued in a developed market (i.e., investment-grade
country). Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" charts
appearing on pages 11-15.
10
Pioneer Global High Yield 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 Global High Yield Fund at public offering price,
compared to that of the Merrill Lynch (ML) Global High Yield and Emerging
Markets Plus Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of October 31, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/27/01) 13.01% 12.17%
5 Years 17.11 16.04
1 Year 8.30 3.43
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2007)
Gross Net
1.18% 1.10%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
ML Global High
Pioneer Global Yield and Emerging
High Yield Fund Markets Plus Index
--------------- ------------------
8/01 $ 9,550 $10,000
10/01 9,245 9,591
10/02 9,273 9,429
10/03 13,501 12,700
10/04 15,502 14,456
10/05 16,822 15,317
10/06 18,860 17,095
10/07 20,425 18,543
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had charges been reflected. POP returns reflect deduction
of maximum 4.5% sales charge. All results are historical and assume the
reinvestment of dividends and capital gains. Other share classes are available
for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 3/1/10 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 fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
11
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 10/31/07 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund, compared to that of the
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of October 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(11/21/03) 9.72% 9.33%
1 Year 7.41 3.42
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2007)
Gross Net
1.96% 1.96%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
ML Global High
Pioneer Global Yield and Emerging
High Yield Fund Markets Plus Index
--------------- ------------------
11/03 $10,000 $10,000
10/04 11,146 11,192
10/05 11,995 11,858
10/06 13,344 13,234
10/07 14,132 14,355
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied
to withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus
for details. Note: Shares purchased prior to December 1, 2004 remain subject to
the CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 3/1/08 for Class B shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12
Pioneer Global High Yield 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 Global High Yield Fund, compared to that of the
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of October 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(11/21/03) 9.58% 9.58%
1 Year 7.48 7.48
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2007)
Gross Net
1.89% 1.89%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
ML Global High
Pioneer Global Yield and Emerging
High Yield Fund Markets Plus Index
--------------- ------------------
11/03 $10,000 $10,000
10/04 11,079 11,192
10/05 11,921 11,858
10/06 13,267 13,234
10/07 14,260 14,355
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
"If Held" results represent the percent change in net asset value per share.
"If Redeemed" results reflect the deduction of 1% CDSC. Returns would have been
lower had sales charges been reflected. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 3/1/08 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 fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
13
Pioneer Global High Yield 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 Global High Yield Fund, compared to that of the
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of October 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(8/27/01) 12.79% 12.79%
5 Years 16.82 16.82
1 Year 8.12 8.12
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2007)
Gross Net
0.73% 0.73%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
ML Global High
Pioneer Global Yield and Emerging
High Yield Fund Markets Plus Index
--------------- ------------------
8/01 $10,000 $10,000
10/01 9,682 9,591
10/02 9,711 9,429
10/03 14,138 12,700
10/04 16,234 14,456
10/05 17,616 15,317
10/06 19,542 17,095
10/07 21,130 18,543
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance for periods prior to the inception of the Fund's Class Y shares
reflects the NAV performance of the Fund's Class A shares. The performance does
not reflect differences in expenses, including the Rule 12b-1 fees applicable
to Class A shares. Since fees for Class A shares are generally higher than
those of Class Y shares, the performance shown for Class Y shares prior to
their inception on 8/27/01 would have been higher. Class Y shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 10/31/07 CLASS Z SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund, compared to that of the
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of October 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(8/27/01) 13.03% 13.03%
5 Years 17.14 17.14
1 Year 8.44 8.44
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated July 6, 2007)
Gross Net
0.93% 0.90%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
ML Global High
Pioneer Global Yield and Emerging
High Yield Fund Markets Plus Index
--------------- ------------------
8/01 $10,000 $10,000
10/01 9,682 9,591
10/02 9,711 9,429
10/03 14,138 12,700
10/04 16,234 14,456
10/05 17,616 15,317
10/06 19,751 17,095
10/07 21,418 18,543
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance for periods prior to the inception of Class Z shares reflects the
NAV performance of the Fund's Class A shares. The performance does not reflect
differences in expenses, including the Rule 12b-1 fees applicable to Class A
shares. Since fees for Class A shares are generally higher than those of Class
Z shares, the performance shown for Class Z shares prior to their inception
July 6, 2007 would have been higher. Class Z shares are not subject to sales
charges and are available for limited groups of eligible investors, including
institutional investors. All results are historical and assume the reinvestment
of dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 3/1/2010 for Class Z shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
15
Pioneer Global High Yield 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 Global High Yield Fund
Based on actual returns from May 1, 2007** through October 31, 2007.
Share Class A B C Y Z
- -------------------------------------------------------------------------------------------------
Beginning Account Value $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
On 5/1/07**
Ending Account Value $ 997.51 $ 993.25 $ 994.17 $ 999.35 $ 999.10
On 10/31/07
Expenses Paid During Period* $ 5.34 $ 9.29 $ 9.15 $ 3.53 $ 2.23
* Expenses are equal to the Fund's annualized expense ratio of 1.06%, 1.85%,
1.82%, 0.70% and 0.69% for Class A, Class B, Class C, Class Y and Class Z
shares, respectively, multiplied by the average account value over the
period, multiplied by 184/365 (to reflect the one half year period)
(118/365 for Class Z shares).
** 7/6/07 for Class Z shares.
16
Pioneer Global High Yield 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 Global High Yield Fund
Based on a hypothetical 5% per year return before expenses, reflect
ing the period from May 1, 2007** through October 31, 2007.
Share Class A B C Y Z
- ------------------------------------------------------------------------------------------------
Beginning Account Value $ 1,000.00 $1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
On 5/1/07**
Ending Account Value $ 1,019.86 $1,015.88 $ 1,016.03 $ 1,021.68 $ 1,013.93
On 10/31/07
Expenses Paid During Period* $ 5.40 $ 9.40 $ 9.25 $ 3.57 $ 2.25
* Expenses are equal to the Fund's annualized expense ratio of 1.06%, 1.85%,
1.82%, 0.70% and 0.69% for Class A, Class B, Class C, Class Y and Class Z
shares, respectively, multiplied by the average account value over the
period, multiplied by 184/365 (to reflect the one half year period)
(118/365 for Class Z shares).
** 7/6/07 for Class Z shares.
17
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
CONVERTIBLE CORPORATE BONDS - 0.7%
Pharmaceuticals & Biotechnology - 0.1%
Pharmaceuticals - 0.1%
$ 2,940,000 Pharm Resources, 2.875%, 9/30/10 $ 2,690,100
--------------
Total Pharmaceuticals & Biotechnology $ 2,690,100
--------------
Real Estate - 0.4%
Retail Real Estate Investment Trust - 0.4%
10,050,000 General Growth Properties, 3.98%,
4/15/27 (144A) $ 9,120,375
--------------
Total Real Estate $ 9,120,375
--------------
Software & Services - 0.2%
Systems Software - 0.2%
3,270,000 Macrovision Corp., 2.625%, 8/15/11 (144A) $ 3,580,650
--------------
Total Software & Services $ 3,580,650
--------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $15,709,566) $ 15,391,125
--------------
ASSET BACKED SECURITIES - 2.9%
Energy - 0.1%
Oil & Gas Equipment & Services - 0.1%
3,400,000 8.37 Sevan Marine ASA, Floating Rate Note,
5/14/13 (144A) $ 3,366,000
--------------
Total Energy $ 3,366,000
--------------
Transportation - 0.3%
Airlines - 0.3%
784,946 American Airlines, Inc., 7.377%, 5/23/19 $ 737,849
4,604,453 American Airlines, Inc., 7.379%, 5/23/16 4,305,163
119,983 Continental Airlines, Inc., 8.312%, 4/2/11 119,384
1,545,239 Continental Airlines, Inc., 8.499%, 5/1/11 1,552,965
--------------
$ 6,715,361
--------------
Total Transportation $ 6,715,361
--------------
Consumer Services - 0.3%
Restaurants - 0.3%
6,240,000 Dunkin Brands Master Finance LLC,
8.28%, 6/20/31 (144A) $ 6,416,692
--------------
Total Consumer Services $ 6,416,692
--------------
Retailing - 0.4%
Distributors - 0.4%
9,100,000 Intcomex, Inc., 11.75%, 1/15/11 $ 9,282,000
--------------
Total Retailing $ 9,282,000
--------------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Food & Drug Retailing - 0.4%
Food Retail - 0.4%
$ 8,785,000 Dominos Pizza Master Issuer LLC, 7.629%,
4/25/37 (144A) $ 8,549,246
--------------
Total Food & Drug Retailing $ 8,549,246
--------------
Banks - 0.3%
Thrifts & Mortgage Finance - 0.3%
5,985,000 8.39 Taganka Car Loan Finance Plc, Floating Rate
Note, 11/14/13 (144A) $ 5,985,000
--------------
Total Banks $ 5,985,000
--------------
Technology Hardware & Equipment - 0.5%
Electronic Manufacturing Services - 0.5%
10,835,000 CIA Transporte Energia, 8.875%,
12/15/16 (144A) $ 9,995,288
--------------
Total Technology Hardware & Equipment $ 9,995,288
--------------
Utilities - 0.6%
Electric Utilities - 0.6%
1,564,623 FPL Energy National Wind, 6.125%,
3/25/19 (144A) $ 1,578,611
1,755,080 FPL Energy Wind Funding, 6.876%,
6/27/17 (144A) 1,772,631
8,439,461 Ormat Funding Corp., 8.25%, 12/30/20 8,608,250
--------------
$ 11,959,492
--------------
Total Utilities $ 11,959,492
--------------
TOTAL ASSET BACKED SECURITIES
(Cost $62,370,779) $ 62,269,079
--------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.8%
Banks - 0.8%
Thrifts & Mortgage Finance - 0.8%
9,670,000 Global Tower Partners Acquisition, 7.87%
5/15/37 (144A) $ 9,182,342
4,890,000 SBA CMBS Trust, 7.825%, 11/15/36 (144A) 4,660,874
4,315,000 T SRA R 2006-1 F, 7.5296%, 10/15/36 (144A) 4,093,013
--------------
$ 17,936,229
--------------
Total Banks $ 17,936,229
--------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $18,874,897) $ 17,936,229
--------------
The accompanying notes are an integral part of these financial statements. 19
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
CORPORATE BONDS - 84.1%
Energy - 12.7%
Coal & Consumable Fuels - 1.2%
$ 3,650,000 Empire Capital Resources Pte, 9.375%,
12/15/11 (144A) $ 3,905,500
14,300,000 Massey Energy Co., 6.875%, 12/15/13 13,513,500
EURO 6,330,000 New World Resources BV, 7.375%,
5/15/15 (144A) 8,838,898
--------------
$ 26,257,898
--------------
Integrated Oil & Gas - 0.4%
750,000 Indo Intergrate Energy, 8.5%, 6/1/12 $ 749,109
6,965,000 Tristan Oil, Ltd., 10.50%, 1/1/12 (144A) 6,756,050
--------------
$ 7,505,159
--------------
Oil & Gas Drilling - 1.8%
12,000,000 DDI Holdings AS, 9.3%, 1/19/12 (144A) $ 12,480,000
1,450,000 DDI Holdings AS, 9.3%, 4/23/12 (144A) 1,504,375
11,203,000 Norse Energy ASA, 6.5%, 7/14/11 (144A) 9,298,490
NOK 6,500,000 Norse Energy ASA, 10.0%, 7/13/10 1,206,499
NOK 32,500,000 PetroJack AS, 11.0%, 4/12/10 6,032,497
8,200,000 Prodjack AS, 11.25%, 3/8/13 (144A) 7,995,000
--------------
$ 38,516,861
--------------
Oil & Gas Equipment & Services - 2.6%
4,630,000 Bristow Group, Inc., 7.5%, 9/15/17 (144A) $ 4,768,900
7,965,000 Complete Production Service, 8.0%, 12/15/16 7,726,050
4,200,000 Nexus, 10.5%, 3/7/12 (144A) 4,137,000
NOK 55,500,000 Norwegian Energy Co., 11.0%, 7/13/10 (144A) 10,301,648
NOK 87,000,000 Petromena AS, 9.75%, 5/24/12 (144A) 16,513,697
4,000,000 Semgroup LP, 8.75%, 11/15/15 (144A) 3,840,000
6,500,000 Sevan Marine ASA, 9.25%, 12/20/11 (144A) 6,597,500
NOK 10,000,000 Sevan Marine ASA, 0.0%, 10/24/12 (144A) 1,921,445
--------------
$ 55,806,240
--------------
Oil & Gas Exploration & Production - 4.6%
60,000 Baytex Energy, Ltd., 9.625%, 7/15/10 (144A) $ 61,950
5,395,000 Baytex Energy, Ltd., 9.625%, 7/15/10 5,570,338
1,405,000 Berry Petroleum Co., 8.25% 11/1/16 1,433,100
10,600,000 Biofuel Energy, 19.0%, 6/7/12 10,494,000
EURO 2,550,000 Chesapeake Energy, 6.25%, 1/15/17 3,632,795
500,000 Cimarex Energy Co., 7.125%, 5/1/17 499,375
5,450,000 Forest Oil Corp., 7.25%, 6/15/19 (144A) 5,450,000
4,270,000 Harvest Operations Corp., 7.875%, 10/15/11 4,152,575
9,140,000 Hilcorp Energy, 7.75%, 11/1/15 (144A) 8,991,474
20 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Oil & Gas Exploration & Production - (continued)
$ 5,740,000 Hilcorp Energy, 9.0%, 6/1/16 (144A) $ 5,955,250
2,810,000 Mariner Energy, Inc., 8.0%, 5/15/17 2,774,875
NOK 48,000,000 PA Resources AB, 8.75%, 3/10/10 8,864,762
7,895,000 Parallel Petroleum Corp., 10.25%,
8/1/14 (144A) 8,013,425
1,900,000 Petroprod, Ltd., 10.85%, 5/24/13 (144A) 1,890,500
1,500,000 11.25 Petroprod, Ltd., Floating Rate Note,
1/12/12 (144A) 1,485,000
2,150,000 Petroquest Energy, Inc., 10.375%, 5/15/12 2,203,750
1,550,000 Pogo Producing Co., 6.625%, 3/15/15 1,565,500
4,740,000 Pogo Producing Co., 6.875%, 10/1/17 4,799,250
5,065,000 Quicksilver Resources, Inc., 7.125%, 4/1/16 4,989,025
5,760,000 Range Resources Corp., 7.5%, 5/15/16 5,875,200
2,405,000 Stone Energy Corp., 6.75%, 12/15/14 2,221,619
7,695,000 Verasun Energy Corp., 9.875%, 12/15/12 7,627,669
--------------
$ 98,551,432
--------------
Oil & Gas Refining & Marketing - 1.1%
14,795,000 Aventine Renewable Energy, 10.0%, 4/1/17 $ 13,167,550
11,565,000 Verasun Energy Corp., 9.375%, 6/1/17 (144A) 9,512,213
--------------
$ 22,679,763
--------------
Oil & Gas Storage & Transportation - 1.0%
4,390,000 Blt Finance BV, 7.5%, 5/15/14 (144A) $ 3,972,950
5,540,000 8.375 Enterprise Products, Floating Rate Note, 8/1/66 5,766,830
960,000 Inergy LP, 8.25%, 3/1/16 1,003,200
1,390,000 Targa Resources, Inc., 8.50%, 11/1/13 (144A) 1,403,900
6,030,000 7.00 Teppco Partners LP, Floating Rate Note, 6/1/67 5,445,180
5,250,000 Transport De Gas Del Sur, 7.875%,
5/14/17 (144A) 4,795,875
--------------
$ 22,387,935
--------------
Total Energy $ 271,705,288
--------------
Materials - 14.5%
Aluminum - 1.3%
3,960,000 Aleris International, Inc., 9.0%, 12/15/14 $ 3,573,900
9,190,000 Aleris International, Inc., 10.0%, 12/15/16 8,087,200
12,215,000 Asia Aluminum Holdings, 8.0%,
12/23/11 (144A) 11,864,430
5,322,000 Indalex Holding, 11.5%, 2/1/14 4,949,460
--------------
$ 28,474,990
--------------
The accompanying notes are an integral part of these financial statements. 21
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Commodity Chemicals - 1.1%
$ 515,000 Arco Chemical Co., 9.8%, 2/1/20 $ 504,700
7,061,000 Georgia Gulf Corp., 9.5%, 10/15/14 (d) 6,107,765
11,110,000 Georgia Gulf Corp., 10.75%, 10/15/16 (d) 8,804,675
3,410,000 Invista, 9.25%, 5/1/12 (144A) 3,597,550
5,050,000 Tronox Worldwide/Finance, 9.5%, 12/1/12 4,873,250
--------------
$ 23,887,940
--------------
Construction Materials - 1.3%
15,675,000 Advanced Glass Yarn Corp., 11.0%,
11/15/14 (144A) $ 15,439,875
3,730,000 Blaze Recycling & Metals, 10.875%,
7/15/12 (144A) 3,730,000
1,500,000 Panolan Industries International, 10.75%,
10/1/13 (144A) 1,425,000
6,800,000 U.S. Concrete, Inc., 8.375%, 4/1/14 6,188,000
--------------
$ 26,782,875
--------------
Diversified Chemical - 2.7%
13,825,000 Basell Finance Co., 8.1%, 3/15/27 (144A) $ 12,027,750
5,300,000 Hexion US Fin/Nova Scotia, 9.75%, 11/15/14 5,816,750
EURO 17,975,000 Ineos Group Holdings Plc, 7.875%,
2/15/16 (144A) 23,978,655
EURO 3,320,000 Nell AF Sarl, 8.375%, 8/15/15 (144A) 4,428,881
500,000 Nell AF Sarl, 8.375%, 8/15/15 (144A) 447,500
7,875,000 Phibro Animal Health Corp., 10.0%,
8/1/13 (144A) 8,091,563
3,530,000 Phibro Animal Health Corp., 13.0%,
8/1/14 (144A) 3,618,250
--------------
$ 58,409,349
--------------
Diversified Metals & Mining - 1.9%
12,630,000 FMG Finance Pty, Ltd., 10.625%, 9/1/16 (144A) $ 14,966,550
2,740,000 Freeport-McMoran Copper & Gold,
8.375%, 4/1/17 3,000,300
6,910,000 9.36 Noranda Aluminum Acquisition, Floating Rate
Note, 5/15/15 (144A) 6,374,475
6,525,000 PNA Group, Inc., 10.75%, 9/1/16 6,671,813
5,645,000 12.56 PNA Intermed Holding Corp., Floating Rate Note,
2/15/13 (144A) 5,546,213
2,550,000 Vale Overseas, Ltd., 8.25%, 1/17/34 3,060,574
745,000 Vedenta Resources Plc, 6.625%,
2/22/10 (144A) 741,275
--------------
$ 40,361,200
--------------
22 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Forest Products - 0.3%
$ 4,370,000 Ainsworth Lumber, 6.75%, 3/15/14 (d) $ 2,797,300
3,675,000 Mandra Forestry, 12.0%, 5/15/13 (144A) 3,785,250
--------------
$ 6,582,550
--------------
Metal & Glass Containers - 1.3%
EURO 4,245,000 Consol Glass, Ltd., 7.625%, 4/15/14 (144A) $ 6,064,462
EURO 9,150,000 Impress Metal Pack Holding, 9.25%,
9/15/14 (144A) 14,063,554
6,820,000 Vitro Sab De Cv, 9.125%, 2/1/17 6,734,750
--------------
$ 26,862,766
--------------
Paper Packaging - 1.3%
8,558,000 AEP Industries, Inc., 7.875%, 3/15/13 $ 8,301,260
9,530,000 Graphic Packaging Co., 9.5%, 8/15/13 10,006,500
10,400,000 Pioneer Natural Resources, 10.0%, 6/1/13 9,672,000
--------------
$ 27,979,760
--------------
Paper Products - 0.9%
18,420,000 Exopac Holding Corp., 11.25%, 2/1/14 $ 18,788,400
--------------
Precious Metals & Minerals - 0.1%
2,625,000 Alrosa Finance SA, 8.875%, 11/17/14 (144A) $ 2,883,563
--------------
Specialty Chemicals - 0.8%
6,545,000 Chemtura Corp., 6.875%, 6/1/16 $ 6,250,474
EURO 3,160,000 Kronos International, Inc., 6.5%, 4/15/13 4,112,346
3,880,000 LPG International, Inc., 7.25%, 12/20/15 3,905,220
2,445,000 Macermid, Inc., 9.5%, 4/15/17 (144A) 2,334,975
--------------
$ 16,603,015
--------------
Steel - 1.5%
14,760,000 Algoma Acquisition Corp., 9.875%,
6/15/15 (144A) $ 13,062,600
EURO 13,800,000 Bulgaria Steel Finance, 12.0%, 5/4/13 13,306,653
2,735,000 Ryerson, Inc., 12.0%, 11/1/15 (144A) 2,810,213
EURO 2,505,000 Zlomrex International, 8.5%, 2/1/14 (144A) 3,274,474
--------------
$ 32,453,940
--------------
Total Materials $ 310,070,348
--------------
Capital Goods - 8.6%
Aerospace & Defense - 0.1%
1,500,000 Transdigm, Inc., 7.75%, 7/15/14 $ 1,526,250
--------------
The accompanying notes are an integral part of these financial statements. 23
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Building Products - 1.1%
$ 15,315,000 9.81 Builders Firstsource, Inc., Floating Rate Note,
2/15/12 $ 14,396,100
9,125,000 Esco Corp., 8.625%, 12/15/13 (144A) 9,284,688
--------------
$ 23,680,788
--------------
Construction & Engineering - 0.9%
2,975,000 Desarrolladora Homex SA, 7.5%, 9/28/15 $ 3,019,625
9,370,000 Desarrollos Metropolitan, 10.875%,
5/9/17 (144A) 7,941,075
4,450,000 Dycom Industries, 8.125%, 10/15/15 4,527,875
NOK 16,500,000 Sevan Drilling, 0.0%, 12/7/12 (144A) 3,116,518
--------------
$ 18,605,093
--------------
Construction, Farm Machinery & Heavy Trucks - 2.3%
4,260,000 Accuride Corp., 8.5%, 2/1/15 $ 4,004,400
4,775,000 American Railcar, 7.5%, 3/1/14 4,715,312
12,820,000 Commercial Vehicle Group, 8.0%, 7/1/13 12,307,200
2,700,000 Greenbrier Co., Inc., 8.375%, 5/15/15 2,669,625
16,550,000 Stanadyne Corp., 12.0%, 2/15/15 (STEP) 13,405,500
4,265,000 Stanadyne Corp., 10.0%, 8/15/14 4,328,975
8,330,000 Titan Wheel International, Inc., 8.0%, 1/15/12 8,330,000
--------------
$ 49,761,012
--------------
Electrical Component & Equipment - 1.9%
12,695,000 Baldor Electric, 8.625%, 2/15/17 $ 13,234,538
13,690,000 Caiua Serv Electricidad, 11.125%,
4/2/49 (144A) 13,792,675
12,000,000 Power Contract Financing LLC, 0.0%,
2/5/10 (144A) 10,320,000
EURO 1,975,000 Vac Finanzierung BMGH, 9.25%,
4/15/16 (144A) 2,949,663
--------------
$ 40,296,876
--------------
Heavy Electrical Equipment - 1.2%
9,800,000 Altra Industrial Motion, 9.0%, 12/1/11 $ 9,849,000
9,200,000 Altra Industrial Motion, 9.0%, 12/1/11 9,246,000
GBP 1,068,594 Altra Industrial Motion, 11.25%, 2/15/13 2,447,117
4,500,000 Hawk Corp., 8.75%, 11/1/14 4,545,000
--------------
$ 26,087,117
--------------
Industrial Conglomerates - 0.3%
6,425,000 Industrias Unidas, 11.5%, 11/15/16 (144A) $ 5,589,750
--------------
Industrial Machinery - 0.3%
7,365,000 Mueller Water Products, 7.375%, 6/1/17 $ 6,849,450
--------------
24 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Trading Companies & Distributors - 0.5%
$ 2,000,000 Glencore Finance Europe, 8.0%, 2/28/49 $ 2,038,000
8,000,000 Marfrig Overseas, Ltd., 9.625%, 11/16/16 (144A) 8,400,000
1,345,000 Mobile Services Group, Inc., 9.75%,
8/1/14 (144A) 1,351,725
--------------
$ 11,789,725
--------------
Total Capital Goods $ 184,186,061
--------------
Commercial Services & Supplies - 2.2%
Diversified Commercial Services - 1.5%
19,800,000 NCO Group, Inc., 11.875%, 11/15/14 $ 19,701,000
11,870,000 10.23 NCO Group, Inc., Floating Rate Note, 11/15/13 11,780,975
1,045,000 Park-Ohio Industries, Inc., 8.375%, 11/15/14 974,463
--------------
$ 32,456,438
--------------
Environmental & Facilities Services - 0.7%
3,570,000 Clean Harbors, Inc., 11.25%, 7/15/12 $ 3,842,883
EURO 1,798,214 New Reclamation Group, 8.125%,
2/1/13 (144A) 2,607,412
4,400,000 10.30 Ohio Air Quality Development, Floating Rate
Note, 6/8/22 (144A) 4,136,000
5,100,000 Waste Services, Inc., 9.5%, 4/15/14 5,100,000
--------------
$ 15,686,295
--------------
Total Commercial Services & Supplies $ 48,142,733
--------------
Transportation - 1.8%
Air Freight & Couriers - 0.1%
2,000,000 Ceva Group Plc, 10.0%, 9/1/14 (144A) $ 2,082,500
--------------
Airlines - 0.3%
7,500,000 Gol Finance, 8.75%, 4/29/49 (144A) $ 7,368,750
--------------
Marine - 0.3%
1,600,000 11.67 DP Producer AS, Floating Rate Note,
12/5/11 (144A) $ 1,552,000
1,500,000 Seabulk International, Inc., 9.5%, 8/15/13 1,597,500
2,410,000 Trailer Bridge, Inc., 9.25%, 11/15/11 2,428,074
--------------
$ 5,577,574
--------------
Marine Ports & Services - 0.5%
10,100,000 Minerva Overseas, Ltd., 9.5%, 2/1/17 (144A) $ 10,175,750
--------------
Railroads - 0.6%
9,100,000 Kansas City Southern Mex, 7.625%, 12/1/13 $ 9,282,000
3,855,000 TFM SA De CV, 9.375%, 5/1/12 4,086,300
--------------
$ 13,368,300
--------------
Total Transportation $ 38,572,874
--------------
The accompanying notes are an integral part of these financial statements. 25
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Automobiles & Components - 1.3%
Auto Parts & Equipment - 0.7%
$ 3,625,000 Allison Transmission, 11.0%, 11/1/15 (144A) $ 3,692,969
5,500,000 Allison Transmission, 11.25%, 11/1/15 (144A) 5,424,375
7,090,000 Cooper Standard Auto, 8.375%, 12/15/14 (d) 6,310,100
--------------
$ 15,427,444
--------------
Automobile Manufacturers - 0.6%
3,295,000 Ford Motor Credit Co., 8.0%, 12/15/16 $ 3,050,491
6,955,000 Ford Motor Credit Corp., 7.375%, 10/28/09 6,707,778
EURO 1,450,000 General Motors Corp., 7.25%, 7/3/13 1,976,350
1,500,000 General Motors Acceptance Corp.,
6.75%, 12/1/14 1,329,141
--------------
$ 13,063,760
--------------
Total Automobiles & Components $ 28,491,204
--------------
Consumer Durables & Apparel - 1.7%
Footwear - 0.3%
EURO 5,500,000 10.23 EDCON Holdings Property, Ltd., Floating Rate
Note, 6/15/15 (144A) $ 7,337,002
--------------
Homebuilding - 0.7%
1,830,000 6.72 C10 Capital SPV, Ltd., Floating Rate Note,
12/31/49 (144A) $ 1,763,571
2,215,000 6.64 C8 Capital SPV, Ltd., Floating Rate Note,
12/31/49 (144A) 2,159,559
4,120,000 Urbi Desarrollos Urbanos, 8.5%, 4/19/16 (144A) 4,243,600
10,120,000 William Lyon Homes, 7.5%, 2/15/14 (d) 6,375,600
--------------
$ 14,542,330
--------------
Housewares & Specialties - 0.7%
3,730,000 Jarden Corp., 7.5%, 5/1/17 $ 3,543,500
10,965,000 Yankee Acquisition Corp., 9.75%, 2/15/17 (d) 10,142,625
--------------
$ 13,686,125
--------------
Total Consumer Durables & Apparel $ 35,565,457
--------------
Consumer Services - 3.3%
Casinos & Gaming - 3.2%
9,750,000 Buffalo Thunder Rev Authority, 9.375%,
12/15/14 (144A) $ 9,116,250
EURO 3,200,000 Codere Finance SA, 8.25%, 6/15/15 (144A) 4,709,601
7,610,000 Fontainebleau Las Vegas, 10.25%,
6/15/15 (144A) 7,115,350
4,095,000 Galaxy Entertainment Financial, 9.875%,
12/15/12 (144A) 4,391,888
26 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Casinos & Gaming - (continued)
$ 6,260,000 Little Traverse Bay Odawa Inn, 10.25%,
2/15/14 (144A) $ 6,416,500
EURO 4,515,000 Lottomatica S.p.A., 8.25%, 3/31/66 (144A) 6,710,420
EURO 3,265,000 Peermont Global, Ltd., 7.75%, 4/30/14 (144A) 4,544,881
850,000 San Pasqual Casino, 8.0%, 9/15/13 (144A) 858,500
6,990,000 Shingle Springs Tribal, 9.375%,
6/15/15 (144A) 7,024,950
7,255,000 Station Casinos, Inc., 6.625%, 3/15/18 5,749,587
14,850,000 Tropicana Finance Corp., 9.625%,
12/15/14 (144A) 11,137,500
1,995,000 Trump Entertainment Resorts, 8.5%, 6/1/15 1,690,763
--------------
$ 69,466,190
--------------
Hotels, Resorts & Cruise Lines - 0.1%
1,000,000 9.89 HRP Myrtle Beach, Floating Rate Note,
4/1/12 (144A) $ 1,001,250
--------------
Total Consumer Services $ 70,467,440
--------------
Media - 2.1%
Broadcasting & Cable TV - 0.9%
9,640,000 C&M Finance, Ltd., 8.1%, 2/1/16 (144A) $ 9,447,200
4,760,000 CCH I LLC, 11.0%, 10/1/15 4,617,200
3,395,000 CCH II LLC/CCH II Capital Corp.,
10.25%, 9/15/10 3,454,413
2,345,000 Kabel Deutschland GMBH, 10.625%, 7/1/14 2,544,325
--------------
$ 20,063,138
--------------
Movies & Entertainment - 0.6%
11,670,000 Corp Interamer De Entret, 8.875%,
6/14/15 (144A) $ 11,903,400
--------------
Publishing - 0.6%
8,339,048 AAC Group Holding Corp., 12.75%, 10/1/12 $ 8,047,181
2,065,000 Sheridan Acquisition Corp., 10.25%, 8/15/11 2,116,624
3,580,000 Visant Holding Corp., 10.25%, 12/1/13 (STEP) 3,347,300
--------------
$ 13,511,105
--------------
Total Media $ 45,477,643
--------------
Retailing - 0.9%
Distributors - 0.1%
3,240,000 Kar Holdings, Inc., 10.0%, 5/1/15 (144A) $ 3,094,200
--------------
General Merchandise Stores - 0.2%
3,380,000 Central Garden, 9.125%, 2/1/13 $ 3,227,900
--------------
The accompanying notes are an integral part of these financial statements. 27
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Specialty Stores - 0.6%
$ 12,755,000 Sally Holdings LLC, 10.5%, 11/15/16 (d) $ 12,691,225
--------------
Total Retailing $ 19,013,325
--------------
Food & Drug Retailing - 0.7%
Drug Retail - 0.2%
4,410,000 Duane Reade, Inc., 9.75%, 8/1/11 $ 4,277,700
--------------
Food Distributors - 0.5%
5,100,000 Fabrica de Productos, 9.25%, 2/23/17 (144A) $ 5,068,380
4,485,000 JBS SA, 10.5%, 8/4/16 (144A) 4,742,888
--------------
$ 9,811,268
--------------
Total Food & Drug Retailing $ 14,088,968
--------------
Food, Beverage & Tobacco - 1.6%
Agricultural Products - 0.6%
2,800,000 Cosan Finance, Ltd., 7.0%, 2/1/17 (144A) $ 2,695,000
9,780,000 Cosan SA Industria, 8.25%, 2/15/49 (144A) 9,608,850
--------------
$ 12,303,850
--------------
Brewers - 0.2%
1,495,000 Argentine Beverages, 7.375%, 3/22/12 (144A) $ 1,515,183
4,041,000 Cerveceria Nacio, 8.0% 3/27/14 (144A) 4,172,333
120,000 Cia Brasileira de Bebida, 8.75%, 9/15/13 137,556
--------------
$ 5,825,072
--------------
Distillers & Vintners - 0.2%
EURO 252,825 Belvedere, 0%, 4/11/14 $ 326,966
EURO 3,286,800 Belvedere, 7.692%, 4/11/14 4,110,555
--------------
$ 4,437,521
--------------
Packaged Foods & Meats - 0.3%
5,360,000 Bertin, Ltd., 10.25%, 10/5/16 (144A) $ 5,922,800
--------------
Tobacco - 0.3%
6,415,000 Alliance One International, Inc., 8.5%, 5/15/12 $ 6,382,925
--------------
Total Food, Beverage & Tobacco $ 34,872,168
--------------
Health Care Equipment & Services - 3.4%
Health Care Equipment - 0.3%
7,435,000 Accellent, Inc., 10.5%, 12/1/13 $ 7,007,488
--------------
Health Care Facilities - 1.1%
5,200,000 Community Health Systems, 8.875%,
7/15/15 (144A) $ 5,265,000
5,285,000 Hanger Orthopedic Group., 10.25%, 6/1/14 5,496,400
6,345,000 HCA, Inc., 9.625%, 11/15/16 6,709,838
28 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Health Care Facilities - (continued)
$ 3,300,000 Psychiatric Solutions, 7.75%, 7/15/15 $ 3,357,750
2,000,000 Psychiatric Solutions, 7.75%, 7/15/15 2,035,000
--------------
$ 22,863,988
--------------
Health Care Services - 1.3%
1,100,000 AMR Holdco/Emcar Holdco, 10.0%, 2/15/15 $ 1,168,750
3,665,000 Rural/Metro Corp., 9.875%, 3/15/15 3,541,306
9,510,000 Surgical Care Affiliates, 8.875%,
7/15/15 (144A) 9,082,050
6,625,000 Surgical Care Affiliates, 10.0%, 7/15/17 (144A) 6,326,874
4,645,000 Universal Hospital, 8.5%, 6/1/15 (144A) 4,726,288
2,630,000 8.76 Universal Hospital, Floating Rate Note,
6/1/15 (144A) 2,636,575
--------------
$ 27,481,843
--------------
Health Care Supplies - 0.4%
2,245,000 Bausch & Lomb, Inc., 9.875%, 11/1/15 (144A) $ 2,312,350
1,700,000 12.74 Medical Services Co., Floating Rate
Note, 10/15/11 1,589,500
EURO 3,615,000 Pts Acquisition, 9.75%, 4/15/17 (144A) 5,005,873
--------------
$ 8,907,723
--------------
Managed Health Care - 0.3%
7,350,000 Multiplan, Inc., 10.375% 4/15/16 (144A) $ 7,515,375
--------------
Total Health Care Equipment & Services $ 73,776,417
--------------
Pharmaceuticals & Biotechnology - 1.0%
Biotechnology - 0.6%
14,835,000 Angiotech Pharmaceutical, 7.75%, 4/1/14 (d) $ 12,535,575
--------------
Pharmaceuticals - 0.4%
8,645,000 Warner Chilcott Corp., 8.75%, 2/1/15 $ 8,947,575
--------------
Total Pharmaceuticals & Biotechnology $ 21,483,150
--------------
Banks - 4.5%
Diversified Banks - 4.5%
4,380,000 ALB Finance BV, 9.25%, 9/25/13 (144A) $ 3,766,800
5,045,000 ALB Finance BV, 9.25%, 9/25/13 4,338,700
9,200,000 ALB Finance BV, 9.375%, 12/31/49 6,992,000
6,675,000 ATF Bank JSC, 9.25%, 4/12/12 (144A) 6,893,740
3,360,000 ATF Bank, 9.0%, 5/11/16 (144A) 3,442,286
4,530,000 ATF Capital BV, 9.25%, 2/21/14 (144A) 4,665,900
1,500,000 ATF Capital BV, 10.0%, 12/31/49 1,528,800
6,230,000 10.36 Banco Macro SA, Floating Rate Note, 6/7/12 5,155,325
5,000,000 BTA Finance Luxembourg, 8.25%, 12/31/49 3,648,050
The accompanying notes are an integral part of these financial statements. 29
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Diversified Banks - (continued)
$ 5,380,000 Centercredit International, 8.625%,
1/30/14 (144A) $ 4,680,600
5,850,000 Hipotecaria Su Casita SA, 8.5%,
10/4/16 (144A) 6,142,500
3,750,000 9.20 Kazkommerts Finance 2 BV, Floating Rate Note,
11/29/49 (144A) 3,274,875
1,400,000 Kazkommerts International BV, 8.0%,
11/3/15 (144A) 1,246,000
6,880,000 PetroCommerce Finance, 8.75%, 12/17/09 6,712,059
9,200,000 Sibacademfinance Plc, 9.0%, 5/12/09 (144A) 8,872,387
3,410,000 Temir Capital, 9.5%, 5/21/14 (144A) 2,838,825
1,725,000 TNK-BP Finance SA, 6.625%, 3/20/17 (144A) 1,576,219
15,400,000 TNK-BP Finance SA, 7.875%, 3/13/18 (144A) 15,184,400
7,070,000 Turanalem Finance BV, 8.5%, 2/10/15 (144A) 6,575,100
--------------
$ 97,534,566
--------------
Total Banks $ 97,534,566
--------------
Diversified Financials - 4.2%
Consumer Finance - 2.8%
12,355,000 Ace Cash Express, Inc., 10.25%, 10/1/14 (144A) $ 12,385,888
5,155,000 Americredit Corp., 8.5%, 7/1/15 (144A) 4,613,725
13,495,000 Banco Macro SA, 8.5%, 2/1/17 12,314,188
3,370,000 Banco Macro SA, 9.75%, 12/18/36 2,923,475
12,015,000 Banco Macro SA, 11.25%, 10/22/14 (144A) 12,002,985
3,465,000 Russian Stand Bank, 7.5%, 10/7/10 (144A) 3,161,813
12,175,000 5.01 SLM Corp., Floating Rate Note, 4/18/08 (144A) 12,082,239
--------------
$ 59,484,313
--------------
Investment Banking & Brokerage - 0.5%
11,780,000 Alliance One International, Inc., 10.375%,
10/15/17 (144A) $ 11,927,250
--------------
Diversified Financial Services - 0.2%
2,790,000 CIA Latino Americano, 9.75%, 5/10/12 $ 2,656,080
2,145,000 PGS Solutions, Inc., 9.625%, 2/15/15 (144A) 1,984,125
--------------
$ 4,640,205
--------------
Specialized Finance - 0.7%
6,800,000 7.59 Alfa Div Pymt Rights Finance, Floating Rate
Note, 12/15/11 (144A) $ 6,596,000
EURO 6,220,000 Ceva Group Plc, 10.0%, 12/1/16 (144A) 7,981,817
--------------
$ 14,577,817
--------------
Total Diversified Financials $ 90,629,585
--------------
30 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Insurance - 2.0%
Insurance Brokers - 0.6%
$ 12,110,000 Actuant Corp., 10.25%, 6/15/15 (144A) $ 11,201,750
2,270,000 Usi Holdings Corp., 9.75%, 5/15/15 (144A) 2,003,274
--------------
$ 13,205,024
--------------
Life & Health Insurance - 0.4%
9,196,000 Presidential Life Corp., 7.875%, 2/15/09 $ 9,150,020
--------------
Multi-Line Insurance - 0.4%
3,320,000 Liberty Mutual Group, 7.0%, 3/15/37 (144A) $ 3,120,773
4,800,000 Sul America Partecipacoe, 8.625%,
2/15/12 (144A) 5,004,000
--------------
$ 8,124,773
--------------
Property & Casualty Insurance - 0.1%
2,000,000 Kingsway America, Inc., 7.5%, 2/1/14 $ 2,043,326
--------------
Reinsurance - 0.5%
2,750,000 9.62 Foundation Re, Ltd., Floating Rate Note,
11/24/08 (144A) $ 2,704,295
5,755,000 Platinum Underwriters Holding, 7.5%, 6/1/17 6,138,863
500,000 15.62 Redwood Capital, Ltd., Floating Rate Note,
6/5/09 (144A) 511,250
1,600,000 14.07 Residential Re, Floating Rate Note,
6/6/08 (144A) 1,590,336
--------------
$ 10,944,744
--------------
Total Insurance $ 43,467,887
--------------
Real Estate - 2.1%
Real Estate Management & Development - 1.8%
6,750,000 Alto Palermo SA, 7.875%, 5/11/17 (144A) $ 5,940,000
6,840,000 10.96 Alto Palermo SA, Floating Rate Note,
6/11/12 (144A) 6,019,200
895,000 China Properties Group, 9.125%,
5/4/14 (144A) 805,500
8,145,000 Greentown China Holdings, 9.0%,
11/8/13 (144A) 7,900,650
8,405,000 Inversiones Y Rep, 8.5%, 2/2/17 (144A) 7,635,943
11,900,000 Neo-China Group Holdings, 9.75%,
7/23/14 (144A) 10,948,000
--------------
$ 39,249,293
--------------
Real Estate Investment Trust - 0.3%
5,025,000 Trustreet Properties, Inc., 7.5%, 4/1/15 $ 5,369,946
--------------
Total Real Estate $ 44,619,239
--------------
The accompanying notes are an integral part of these financial statements. 31
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Software & Services - 2.2%
Application Software - 0.1%
$ 2,195,000 Open Solutions, Inc., 9.75%, 2/15/15 (144A) $ 2,118,175
--------------
Data Processing & Outsourced Services - 1.5%
17,325,000 First Data Corp., 9.875%, 9/24/15 (144A) $ 16,610,343
1,360,000 Ipayment, Inc., 9.75%, 5/15/14 1,305,600
17,350,000 Pegasus Solutions, Inc., 10.5%,
4/15/15 (144A) 15,615,000
--------------
$ 33,530,943
--------------
IT Consulting & Other Services - 0.6%
13,290 Msx International, 12.5%, 4/1/12 (144A) $ 12,625,500
--------------
Total Software & Services $ 48,274,618
--------------
Technology Hardware & Equipment - 1.3%
Communications Equipment - 0.3%
6,425,000 Mastec, Inc., 7.625%, 2/1/17 $ 6,232,250
--------------
Computer Hardware - 0.5%
13,500,000 Activant Solutions, Inc., 9.5%, 5/1/16 $ 12,318,750
--------------
Technology Distributors - 0.5%
9,575,000 Da-Lite Screen Co., Inc., 9.5%, 5/15/11 $ 10,017,844
--------------
Total Technology Hardware & Equipment $ 28,568,844
--------------
Semiconductors - 0.6%
Semiconductors - 0.6%
3,295,000 Freescale Semiconductor, 8.875%, 12/15/14 $ 3,117,894
2,735,000 Freescale Semiconductor, 9.125%, 12/15/14 2,475,175
7,900,000 9.57 Freescale Semiconductor, Floating Rate
Note, 12/15/14 7,258,125
--------------
$ 12,851,194
--------------
Total Semiconductors $ 12,851,194
--------------
Telecommunication Services - 8.1%
Alternative Carriers - 0.6%
11,900,000 Paetec Holdings, 9.5%, 7/15/15 (144A) $ 12,197,500
--------------
Integrated Telecommunication Services - 1.4%
23,686,000 PGS Solutions, Inc., 9.872%, 2/15/17 (144A) $ 23,034,635
5,700,000 Stratos Global Corp., 9.875%, 2/15/13 5,985,000
980,000 Tele Norte Leste Participacoes,
8.0%, 12/18/13 1,038,800
--------------
$ 30,058,435
--------------
32 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Wireless Telecommunication Services - 6.1%
$ 17,340,000 Broadview Networks Holdings, 11.375%,
9/1/12 (144A) $ 18,380,400
EURO 3,585,000 Cell C Pty, Ltd., 8.625%, 7/1/12 (144A) 4,912,347
13,665,000 Cell C Pty, Ltd., 11.0%, 7/1/15 (144A) 11,820,225
5,025,000 13.94 Cleveland Unlimited, Inc., Floating Rate Note,
12/15/10 (144A) 5,389,313
13,540,000 Cricket Communications I, 9.375%, 11/1/14 13,438,450
7,600,000 Digicel, Ltd., 9.25%, 9/1/12 (144A) 7,790,000
EURO 3,500,000 10.73 Hellas Tel Finance, Floating Rate Note,
1/15/15 (144A) 4,973,501
10,940,000 Huges Network System, 9.5%, 4/15/14 11,227,175
6,870,000 Inmarsat Finance Plc, 10.375%, 11/15/12 (STEP) 6,629,550
18,510,000 Intelsat Intermediate, 0.0%, 2/1/15 15,224,475
1,950,000 Mobile Telesystems Finance, 8.0%, 1/28/12 (144A) 2,001,675
3,025,000 True Move Co., Ltd., 10.375%, 8/1/14 (144A) 3,083,383
18,455,000 True Move Co., Ltd., 10.75%, 12/16/13 (144A) 18,962,512
4,750,000 UBS (Vimpelcom), 8.25%, 5/23/16 (144A) 4,916,250
2,000,000 UBS (Vimpelcom), 8.375%, 10/22/11 (144A) 2,095,000
--------------
$ 130,844,256
--------------
Total Telecommunication Services $ 173,100,191
--------------
Utilities - 3.3%
Electric Utilities - 1.8%
6,507,000 AES Chivor, 9.75%, 12/30/14 (144A) $ 7,157,701
19,650,000 Intergen NV, 9.0%, 6/30/17 (144A) 20,779,874
1,290,000 ISA Capital Do Brasil SA, 8.8%, 1/30/17 (144A) 1,341,600
2,014,474 Juniper Generation, 6.79%, 12/31/14 (144A) 2,046,665
5,940,000 Mirant JPSCO Finance, Ltd., 11.0%, 7/6/16 (144A) 6,415,200
--------------
$ 37,741,040
--------------
Gas Utilities - 0.2%
4,065,000 Southern Union Co., 7.2%, 11/1/66 $ 4,057,736
--------------
Independent Power Producer & Energy Traders - 0.3%
7,125,000 TXU Energy Co., 10.25%, 11/1/15 (144A) $ 7,160,625
--------------
Multi-Utilities - 1.0%
13,140,000 Alliant Holdings, Inc., 11.0%, 5/1/15 (144A) $ 12,614,400
8,310,000 NSG Holdings LLC, 7.75%, 12/15/25 (144A) 8,226,900
--------------
$ 20,841,300
--------------
Total Utilities $ 69,800,701
--------------
TOTAL CORPORATE BONDS
(Cost $1,824,594,413) $1,804,759,901
--------------
The accompanying notes are an integral part of these financial statements. 33
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
FOREIGN GOVERNMENT BONDS - 1.0%
ITL 1,450,000,000 Banco Nac De Desen Econo, 8.0%, 4/28/10 $ 1,124,410
BRL 10,350,000 Federal Republic of Brazil, 12.5%, 1/5/16 6,751,879
BRL 2,480,000 Republic of Brazil, 12.5%, 1/5/22 1,649,620
COP 2,510,000,000 Republic of Columbia, 11.75%, 3/1/10 1,322,385
COP 10,258,000,000 Republic of Columbia, 12.0%, 10/22/15 5,688,833
4,345,000 Republic of Ghana, 8.5%, 10/4/17 (144A) 4,453,625
--------------
$ 20,990,752
--------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $16,894,992) $ 20,990,752
--------------
MUNICIPAL BONDS - 0.6%
Muni Airport - 0.0%
15,000 New Jersey Economic Development Authority
Special Facility Revenue, 7.0%, 11/15/30 $ 15,552
--------------
Muni Facilities - 0.0%
250,000 East Chicago Ind Exempt Facilities,
7.0%, 1/1/14 $ 259,380
--------------
Muni School District - 0.4%
8,875,000 12.50 Non-Profit Preferred Funding Trust I, Floating
Rate Note, 9/15/37 $ 8,485,388
--------------
Muni Utilities - 0.2%
3,835,000 7.79 San Antonio Texas Electric & Gas, Floating
Rate Note, 2/1/19 $ 4,962,068
--------------
TOTAL MUNICIPAL BONDS
(Cost $14,065,346) $ 13,722,388
--------------
SENIOR FLOATING RATE LOAN INTERESTS - 5.9%**
Energy - 0.4%
Oil & Gas Exploration & Production - 0.4%
281,000 9.755 Concho Resources, Term Loan, 3/27/12 $ 280,298
4,430,000 8.625 SandRidge Energy, Inc., Fixed Rate
Loan, 4/1/15 4,374,625
1,680,000 8.8538 SandRidge Energy, Inc., Floating Rate
Loan, 4/1/14 1,673,700
1,400,000 9.125 Venoco, Inc., Second Lien Term Loan, 9/20/11 1,393,000
--------------
$ 7,721,623
--------------
Total Energy $ 7,721,623
--------------
34 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Materials - 0.5%
Paper Packaging - 0.1%
$ 2,353,589 6.94813 Georgia-Pacific LLC, Term B Loan, 12/21/12 $ 2,301,684
--------------
Steel - 0.4%
8,981,125 9.8188 Niagara Corp., Term Loan, 6/29/14 $ 8,621,880
--------------
Total Materials $ 10,923,564
--------------
Capital Goods - 0.1%
Construction & Engineering - 0.1%
2,000,000 10.1981 Custom Building Products, Second Lien Term
Loan, 4/29/12 $ 1,860,000
--------------
Construction, Farm Machinery & Heavy Trucks - 0.0%
1,193,761 8.75 Rental Service Corp., Second Lien Initial Term
Loan, 11/30/13 $ 1,166,901
--------------
Total Capital Goods $ 3,026,901
--------------
Commercial Services & Supplies - 0.3%
Diversified Commercial Services - 0.2%
4,100,000 7.45 J.G.Wentworth, LLC, First Lien Term
Loan, 4/4/14 $ 3,920,625
1,144,236 8.353 Collect Acquisition Corp., Term B Facility
Loan, 5/15/13 1,113,484
--------------
$ 5,034,109
--------------
Environmental & Facilities Services - 0.1%
1,394,433 7.38 Waste Services, Inc., Tranche E Term
Loan, 3/31/11 $ 1,373,517
--------------
Total Commercial Services & Supplies $ 6,407,626
--------------
Transportation - 0.4%
Air Freight & Couriers - 0.4%
EURO 5,368,824 12.474 Louis Topco, Ltd., Term Loan, 6/1/17 $ 6,941,442
295,802 5.0981 Ceva Group Plc, Additional Pre Funded
Loan, 11/4/13 291,364
900,414 7.7525 Ceva Group Plc, U.S. Term Loan, 11/4/13 886,907
--------------
$ 8,119,713
--------------
Total Transportation $ 8,119,713
--------------
Automobiles & Components - 0.1%
Automobile Manufacturers - 0.1%
992,500 7.615 General Motors Corp., Secured Term
Loan, 11/29/13 $ 975,628
--------------
Total Automobiles & Components $ 975,628
--------------
The accompanying notes are an integral part of these financial statements. 35
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Consumer Durables & Apparel - 0.4%
Homebuilding - 0.4%
$ 745,622 8.2488 LandSource Communities, Facility B
Loan, 2/27/13 $ 664,402
8,650,000 9.9988 LandSource Communities, 2nd Lien Term
Loan, 2/27/14 6,941,625
--------------
$ 7,606,027
--------------
Total Consumer Durables & Apparel $ 7,606,027
--------------
Consumer Services - 0.3%
Casinos & Gaming - 0.3%
1,125,023 0.0 New World Gaming, First Lien Term
Loan, 11/17/14 $ 1,080,022
6,250,000 0.0 New World Gaming, Second Lien Term
Loan, 5/18/15 5,843,750
--------------
$ 6,923,772
--------------
Total Consumer Services $ 6,923,772
--------------
Media - 0.2%
Broadcasting & Cable TV - 0.2%
1,000,000 7.6981 CCO Holdings LLC, Incremental Loan, 9/6/14 $ 961,719
1,420,000 6.99 Charter Communications, Replacement
Loan, 3/6/14 1,366,986
1,137,150 7.48 Knology, Inc., Term Loan, 6/30/12 1,103,036
--------------
$ 3,431,741
--------------
Total Media $ 3,431,741
--------------
Retailing - 0.0%
Specialty Stores - 0.0%
803,910 8.006 Sally Holdings LLC, Term B Loan, 11/18/13 $ 789,841
--------------
Total Retailing $ 789,841
--------------
Household & Personal Products - 0.0%
Personal Products - 0.0%
248,750 7.1426 Brickman Group Holdings, Tranche B Term
Loan, 1/23/14 $ 241,909
--------------
Total Household & Personal Products $ 241,909
--------------
Health Care Equipment & Services - 0.4%
Health Care Facilities - 0.0%
498,858 6.56813 Psychiatric Solutions, Inc., Term Loan, 12/3/12 $ 490,128
--------------
36 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Health Care Services - 0.0%
$ 862,843 7.6278 HealthSouth Corp., Term Loan, 3/10/13 $ 846,469
--------------
Health Care Supplies - 0.4%
7,510,000 9.4481 IM US Holdings, LLC, Term Loan, 6/26/15 $ 7,495,919
--------------
Total Health Care Equipment & Services $ 8,832,516
--------------
Diversified Financials - 0.2%
Specialized Finance - 0.2%
3,584,173 8.3944 Ace Cash Express, Inc., Term Loan, 10/5/13 $ 3,512,490
--------------
Total Diversified Financials $ 3,512,490
--------------
Insurance - 0.6%
Insurance Brokers - 0.6%
3,266,813 8.0592 AMWINS Group, Inc., Initial Term Loan, 6/8/13 $ 3,103,472
6,750,000 11.07 AMWINS Group, Inc., Initial Term Loan, 6/9/14 6,176,250
246,702 3.4567 HUB International, Ltd., Delayed Draw Term
Loan, 6/13/14 242,231
3,504,289 8.2031 HUB International, Ltd., Initial Term
Loan, 6/13/14 3,440,774
--------------
$ 12,962,727
--------------
Total Insurance $ 12,962,727
--------------
Technology Hardware & Equipment - 0.9%
Electronic Equipment & Instruments - 0.6%
14,206,500 8.1413 H3C Holdings, Ltd., Tranche B Term
Loan, 9/28/12 $ 13,638,240
--------------
Electronic Manufacturing Services - 0.0%
930,106 6.9602 Baldor Electric Co., Term Loan, 1/31/14 $ 920,805
--------------
Technology Distributors - 0.3%
5,500,000 9.11 Scitor Corp., Term Loan, 9/26/14 $ 5,500,000
--------------
Total Technology Hardware & Equipment $ 20,059,045
--------------
Telecommunication Services - 0.3%
Integrated Telecommunication Services - 0.3%
6,863,386 0.0 Telesat Canada, U.S. Term I Loan, 10/31/14 $ 6,807,621
--------------
Total Telecommunication Services $ 6,807,621
--------------
Utilities - 0.8%
Independent Power Producer & Energy Traders - 0.7%
4,402,060 6.8481 NRG Energy, Inc., Credit-Linked Loan, 12/9/13 $ 4,317,046
10,576,979 6.9481 NRG Energy, Inc., Term Loan, 12/9/13 10,372,710
--------------
$ 14,689,756
--------------
The accompanying notes are an integral part of these financial statements. 37
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount (unaudited) Value
Multi-Utilities - 0.1%
$ 2,950,000 0.0 Alliant Holdings I, Inc., Term Loan, 8/21/14 $ 2,944,469
--------------
Total Utilities $ 17,634,225
--------------
TOTAL SENIOR FLOATING RATE
LOAN INTERESTS
(Cost $130,871,844) $ 125,976,969
--------------
Shares
CONVERTIBLE PREFERRED STOCKS - 0.2%
Materials - 0.2%
Precious Metals & Minerals - 0.2%
60,000 Vale Capital, Ltd., 5.5% 6/15/10 $ 4,428,000
--------------
Total Materials $ 4,428,000
--------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $3,000,000) $ 4,428,000
--------------
RIGHTS/WARRANTS - 0.2%
Energy - 0.1%
Oil & Gas Drilling - 0.1%
NOK 11,203,000 Norse Energy Corp. ASA* $ 2,570,574
--------------
Total Energy $ 2,570,574
--------------
Materials - 0.0%
Forest Products - 0.0%
3,250 Mandra Forestry-CW13, Warrants
Expire 5/15/13* (e) $ -
--------------
Total Materials $ -
--------------
Transportation - 0.0%
Railroads - 0.0%
5,250 Atlantic Express Transportation,
Expires 4/15/08 $ 65,625
--------------
Total Transportation $ 65,625
--------------
38 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Real Estate - 0.1%
Real Estate Management & Development - 0.1%
HKD 8,190,000 Neo-China Group Holdings, Ltd.* $ 1,003,877
--------------
Total Real Estate $ 1,003,877
--------------
TOTAL RIGHTS/WARRANTS
(Cost $1,646,063) $ 3,640,076
--------------
TEMPORARY CASH INVESTMENTS - 4.5%
Commercial Paper - 2.4%
51,240,000 BNP Paribas Financial, Inc., 4.9%, 11/1/07 $ 51,240,000
--------------
Security Lending Collateral - 2.1%
45,129,581 Securities Lending Investment Fund, 5.10% $ 45,129,581
--------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $96,369,581) $ 96,369,581
--------------
TOTAL INVESTMENT IN SECURITIES - 100.9%
(Cost $2,184,397,481) (a) (c) $2,165,484,100
--------------
OTHER ASSETS AND LIABILITIES - (0.9)% $ (19,211,422)
--------------
TOTAL NET ASSETS - 100.0% $2,146,272,678
==============
Notional Unrealized
Principal Swap Counterparty/Referenced Obligation Loss
CREDIT DEFAULT SWAP AGREEMENTS
PROTECTION BOUGHT
$ 2,740,000 J.P. Morgan Chase & Co.
Freeport McMoran Copper & Gold
Protection Premium Rate 0.77%,
terminating 6/20/11 $ (656)
---------------
TOTAL CREDIT DEFAULT SWAP AGREEMENTS $ (656)
===============
The accompanying notes are an integral part of these financial statements. 39
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
* Non-income producing security.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
October 31, 2007, the value of these securities amounted to
$1,106,608,904 or 51.6% of total net assets.
STEP Debt obligation initially issued at one coupon which converts to another
coupon at a specified date. The rate shown is the rate at the end of the
period.
** 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 $2,185,214,881 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $ 51,553,074
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (71,283,855)
------------
Net unrealized loss $(19,730,781)
============
(b) Debt obligation with a variable interest rate. Rate shown is rate at
period end.
(c) Distributions of investment by country of issue, as a percentage of total
investment in securities (excluding temporary cash investments), is as
follows:
United States 62.7%
Norway 4.7
Netherlands 4.6
Brazil 3.2
Argentina 3.1
Mexico 3.0
Luxembourg 2.9
Bermuda 2.1
United Kingdom 2.0
Canada 1.8
South Africa 1.8
Cayman Islands 1.3
Other (individually less than 1%) 6.8
-----
100.0%
=====
40 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(d) At October 31, 2007, the following securities were out on loan:
Principal
Amount Description Value
$ 147,500 Ainsworth Lumber, 6.75%, 3/15/14 $ 94,769
9,901,000 Angiotech Pharmaceutical, 7.75%, 4/1/14 8,366,345
5,092,500 Cooper Standard Auto, 8.375%, 12/15/14 4,532,325
5,295,750 Georgia Gulf Corp., 9.5%, 10/15/14 4,580,824
8,257,500 Georgia Gulf Corp., 10.75%, 10/15/16 6,544,069
9,303,150 Sally Holdings LLC, 10.5%, 11/15/16 9,256,634
3,450,500 William Lyon Homes, 7.5%, 2/15/14 2,173,815
8,223,700 Yankee Acquisition Corp., 9.75%, 2/15/17 7,606,923
-----------
Total $43,155,704
===========
(e) Security is fair valued (See Note A).
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
denoted:
BRL Brazilian Real
COP Columbian Peso
EURO Euro
GBP British Pound
HKD Hong Kong Dollar
ITL Italian Lira
NOK Norwegian Krone
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 2007 aggregated $1,479,797,513 and $518,976,144,
respectively.
The accompanying notes are an integral part of these financial statements. 41
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 10/31/07
ASSETS:
Investment in securities, at value (including securities loaned of
$43,155,704) (cost $2,184,397,481) $2,165,484,100
Cash 23,992,030
Foreign currencies, at value (cost $4,014,745) 4,366,278
Receivables -
Fund shares sold 14,275,596
Interest 48,622,909
Forward foreign currency portfolio hedge contracts, open net 381,920
Due from Pioneer Investment Management, Inc. 19,000
Other 191,729
--------------
Total assets $2,257,333,562
--------------
LIABILITIES:
Payables -
Investment securities purchased $ 52,577,347
Fund shares repurchased 8,332,829
Dividends 4,489,347
Upon return of securities loaned 45,129,581
Credit default swap agreement 656
Unrealized depreciation on unfunded corporate loans 83,383
Due to affiliates 307,119
Accrued expenses 140,622
--------------
Total liabilities $ 111,060,884
--------------
NET ASSETS:
Paid-in capital $2,139,590,259
Undistributed net investment income 6,423,730
Accumulated net realized gain on investments, credit default swaps
and foreign currency transactions 18,345,727
Net unrealized loss on investments (18,996,764)
Net unrealized loss on credit default swaps (656)
Net unrealized gain on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies 910,382
--------------
Total net assets $2,146,272,678
==============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $1,369,043,983/111,314,847 shares) $ 12.30
==============
Class B (based on $155,522,600/12,673,469 shares) $ 12.27
==============
Class C (based on $598,194,962/48,888,070 shares) $ 12.24
==============
Class Y (based on $23,413,828/1,934,683 shares) $ 12.10
==============
Class Z (based on $97,305/7,905 shares) $ 12.31
==============
MAXIMUM OFFERING PRICE:
Class A ($12.30 [divided by] 95.5%) $ 12.88
==============
42 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 10/31/07
INVESTMENT INCOME:
Dividends $ 36,666
Interest (net of foreign taxes withheld of $89,763) 153,148,618
Income from securities loaned, net 64,735
------------
Total investment income $153,250,019
------------
EXPENSES:
Management fees $ 11,075,103
Transfer agent fees and expenses
Class A 1,146,875
Class B 234,157
Class C 620,320
Class Y 1,096
Distribution fees
Class A 2,629,523
Class B 1,498,055
Class C 5,324,979
Administrative fees 397,607
Custodian fees 142,527
Registration fees 225,429
Professional fees 97,696
Printing expense 149,942
Fees and expenses of nonaffiliated trustees 34,530
Miscellaneous 78,333
------------
Total expenses $ 23,656,172
Less fees paid indirectly (57,886)
------------
Net expenses $ 23,598,286
------------
Net investment income $129,651,733
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, CREDIT DEFAULT SWAPS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 21,933,665
Credit default swaps (6,974)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 1,006,175 $ 22,932,866
------------ ------------
Change in net unrealized gain (loss) on:
Investments $(41,117,825)
Credit default swaps (656)
Unfunded corporate loans (83,383)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 857,127 $(40,344,737)
------------ ------------
Net loss on investments and foreign currency transactions $(17,411,871)
------------
Net increase in net assets resulting from operations $112,239,862
============
The accompanying notes are an integral part of these financial statements. 43
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 10/31/07 and 10/31/06, respectively
Year Ended Year Ended
10/31/07 10/31/06
FROM OPERATIONS:
Net investment income $ 129,651,733 $ 64,782,731
Net realized gain on investments, credit default
swaps and foreign currency transactions 22,932,866 7,523,763
Change in net unrealized gain (loss) on
investments, credit default swaps and foreign
currency transactions (40,344,737) 29,008,982
-------------- --------------
Net increase in net assets resulting
from operations $ 112,239,862 $ 101,315,476
-------------- --------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.98 and $0.90 per share, respectively) $ (81,601,384) $ (33,985,380)
Class B ($0.87 and $0.80 per share, respectively) (10,457,546) (7,529,358)
Class C ($0.88 and $0.80 per share, respectively) (37,407,197) (22,529,789)
Class Y ($0.99 and $0.76 per share, respectively) (918,427) (783)
Class Z ($0.32 and $0.00 per share, respectively) (2,550) -
Net realized gain:
Class A ($0.06 and $0.03 per share, respectively) (3,435,262) (987,789)
Class B ($0.06 and $0.03 per share, respectively) (651,210) (283,524)
Class C ($0.06 and $0.03 per share, respectively) (2,128,471) (831,672)
Class Y ($0.06 and $0.00 per share, respectively) (428) -
-------------- --------------
Total distributions to shareowners $ (136,602,475) $ (66,148,295)
-------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $1,371,832,796 $ 647,426,959
Reinvestment of distributions 85,601,709 34,600,436
Cost of shares repurchased (490,456,742) (244,251,199)
Redemption Fees - 52,079
-------------- --------------
Net increase in net assets resulting from
Fund share transactions $ 966,977,763 $ 437,828,275
-------------- --------------
Net increase in net assets $ 942,615,150 $ 472,995,456
NET ASSETS:
Beginning of year 1,203,657,528 730,662,072
-------------- --------------
End of year $2,146,272,678 $1,203,657,528
============== ==============
Undistributed net investment income $ 6,423,730 $ 2,591,582
============== ==============
44 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
CLASS A
Shares sold 80,734,234 $1,009,927,996 35,146,305 $426,400,341
Reinvestment of distributions 4,901,901 61,064,428 1,738,808 21,097,280
Redemption Fees - - - 40,812
Less shares repurchased (27,783,637) (345,623,177) (12,363,336) (149,409,668)
----------- -------------- ----------- ------------
Net increase 57,852,498 $ 725,369,247 24,521,777 $298,128,765
=========== ============== =========== ============
CLASS B
Shares sold 4,803,916 $ 60,425,568 4,017,473 $ 48,542,490
Reinvestment of distributions 381,063 4,737,169 268,477 3,245,601
Redemption Fees - - - 3,009
Less shares repurchased (3,118,576) (38,698,904) (1,984,535) (23,969,774)
----------- -------------- ----------- ------------
Net increase 2,066,403 $ 26,463,833 2,301,415 $ 27,821,326
=========== ============== =========== ============
CLASS C
Shares sold 22,244,101 $ 277,806,461 14,305,932 $172,449,140
Reinvestment of distributions 1,526,245 18,919,034 850,505 10,257,555
Redemption Fees - - - 8,258
Less shares repurchased (8,534,278) (105,507,730) (5,890,734) (70,871,757)
----------- -------------- ----------- ------------
Net increase 15,236,068 $ 191,217,765 9,265,703 $111,843,196
=========== ============== =========== ============
CLASS Y
Shares sold 1,912,122 $ 23,572,759 2,924 $ 34,988
Reinvestment of distributions 72,046 881,078 - -
Less shares repurchased (52,409) (626,919) - -
----------- -------------- ----------- ------------
Net increase 1,931,759 $ 23,826,918 2,924 $ 34,988
=========== ============== =========== ============
CLASS Z*
Shares sold 7,906 $ 100,012
Less shares repurchased (1) (12)
----------- --------------
Net increase 7,905 $ 100,000
=========== ==============
* Class Z shares were first publicly offered on July 6, 2007.
The accompanying notes are an integral part of these financial statements. 45
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended
10/31/07 10/31/06
CLASS A
Net asset value, beginning of period $ 12.34 $ 11.88
---------- --------
Increase from investment operations:
Net investment income $ 0.96 $ 0.90
Net realized and unrealized gain on investments, credit default swaps
and foreign currency transactions 0.04 0.49
---------- --------
Net increase from investment operations $ 1.00 $ 1.39
---------- --------
Distributions to shareowners:
Net investment income $ (0.98) $ (0.90)
Net realized gain (0.06) (0.03)
---------- --------
Total distributions $ (1.04) $ (0.93)
---------- --------
Redemption Fee $ - $ 0.00(b)
---------- --------
Net increase (decrease) in net asset value $ (0.04) $ 0.46
---------- --------
Net asset value, end of period $ 12.30 $ 12.34
========== ========
Total return* 8.30% 12.12%
Ratio of net expenses to average net assets+ 1.06% 1.10%
Ratio of net investment income to average net assets+ 7.73% 7.44%
Portfolio turnover rate 31% 41%
Net assets, end of period (in thousands) $1,369,044 $659,845
Ratios with no waiver of management fees and assumption of expenses
by PIM and no reduction for fees paid indirectly:
Net expenses 1.06% 1.18%
Net investment income (loss) 7.73% 7.37%
Ratios with waiver of management fees by PIM and reduction for fees
paid indirectly:
Net expenses 1.06% 1.10%
Net investment income 7.73% 7.44%
Year Ended Year Ended Year Ended
10/31/05 10/31/04 (a) 10/31/03 (a)
CLASS A
Net asset value, beginning of period $ 11.79 $ 11.31 $ 8.56
-------- ------- -------
Increase from investment operations:
Net investment income $ 0.90 $ 0.69 $ 1.00
Net realized and unrealized gain on investments, credit default swaps
and foreign currency transactions 0.09 0.89 2.75
-------- ------- -------
Net increase from investment operations $ 0.99 $ 1.58 $ 3.75
-------- ------- -------
Distributions to shareowners:
Net investment income $ (0.90) $ (0.89) $ (1.00)
Net realized gain - (0.21) -
-------- ------- -------
Total distributions $ (0.90) $ (1.10) $ (1.00)
-------- ------- -------
Redemption Fee $ 0.00(b) $ - $ -
-------- ------- -------
Net increase (decrease) in net asset value $ 0.09 $ 0.48 $ 2.75
-------- ------- -------
Net asset value, end of period $ 11.88 $ 11.79 $ 11.31
======== ======= =======
Total return* 8.52% 14.82% 45.58%
Ratio of net expenses to average net assets+ 1.04% 0.75% 0.75%
Ratio of net investment income to average net assets+ 7.40% 8.02% 9.76%
Portfolio turnover rate 36% 50% 124%
Net assets, end of period (in thousands) $343,886 $70,063 $ 848
Ratios with no waiver of management fees and assumption of expenses
by PIM and no reduction for fees paid indirectly:
Net expenses 1.18% 1.41% 14.37%
Net investment income (loss) 7.26% 7.36% (3.68)%
Ratios with waiver of management fees by PIM and reduction for fees
paid indirectly:
Net expenses 1.04% 0.75% 0.75%
Net investment income 7.40% 8.02% 9.76%
(a) The Fund commenced operations on August 27, 2001 and was first publicly
offered on December 1, 2003.
(b) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
46 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended
10/31/07 10/31/06
CLASS B
Net asset value, beginning of period $ 12.31 $ 11.85
-------- --------
Increase from investment operations:
Net investment income $ 0.86 $ 0.80
Net realized and unrealized gain on investments, credit default swaps and foreign
currency transactions 0.03 0.49
-------- --------
Net increase from investment operations $ 0.89 $ 1.29
-------- --------
Distributions to shareowners:
Net investment income $ (0.87) $ (0.80)
Net realized gain (0.06) (0.03)
-------- --------
Total distributions $ (0.93) $ (0.83)
-------- --------
Redemption Fee $ - $ 0.00(b)
-------- --------
Net increase (decrease) in net asset value $ (0.04) $ 0.46
-------- --------
Net asset value, end of period $ 12.27 $ 12.31
======== ========
Total return* 7.41% 11.25%
Ratio of net expenses to average net assets+ 1.86% 1.96%
Ratio of net investment income to average net assets+ 6.93% 6.63%
Portfolio turnover rate 31% 41%
Net assets, end of period (in thousands) $155,523 $130,563
Ratios with no waiver of management fees and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.86% 1.96%
Net investment income 6.93% 6.60%
Ratios with waiver of management fees paid by PIM and reduction for fees
paid indirectly:
Net expenses 1.85% 1.96%
Net investment income 6.94% 6.60%
12/1/03 (a)
Year Ended to
10/31/05 10/31/04
CLASS B
Net asset value, beginning of period $ 11.76 $ 11.47
-------- ---------
Increase from investment operations:
Net investment income $ 0.80 $ 0.82
Net realized and unrealized gain on investments, credit default swaps and foreign
currency transactions 0.09 0.49
-------- ---------
Net increase from investment operations $ 0.89 $ 1.31
-------- ---------
Distributions to shareowners:
Net investment income $ (0.80) $ (0.81)
Net realized gain - (0.21)
-------- ---------
Total distributions $ (0.80) $ (1.02)
-------- ---------
Redemption Fee $ 0.00(b) $ -
-------- ---------
Net increase (decrease) in net asset value $ 0.09 $ 0.29
-------- ---------
Net asset value, end of period $ 11.85 $ 11.76
======== =========
Total return* 7.62% 12.12%(c)
Ratio of net expenses to average net assets+ 1.91% 1.58%**
Ratio of net investment income to average net assets+ 6.57% 7.26%**
Portfolio turnover rate 36% 50%(c)
Net assets, end of period (in thousands) $ 98,462 $ 20,408
Ratios with no waiver of management fees and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.97% 2.20%**
Net investment income 6.51% 6.64%**
Ratios with waiver of management fees paid by PIM and reduction for fees
paid indirectly:
Net expenses 1.91% 1.58%**
Net investment income 6.57% 7.26%**
(a) Class B shares were first publicly offered on December 1, 2003.
(b) Amount rounds to less than one cent per share.
(c) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 47
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended
10/31/07 10/31/06
CLASS C
Net asset value, beginning of period $ 12.28 $ 11.82
-------- --------
Increase from investment operations:
Net investment income $ 0.86 $ 0.80
Net realized and unrealized gain on investments, credit default swaps and foreign
currency transactions 0.04 0.49
-------- --------
Net increase from investment operations $ 0.90 $ 1.29
-------- --------
Distributions to shareowners:
Net investment income $ (0.88) $ (0.80)
Net realized gain (0.06) (0.03)
-------- --------
Total distributions $ (0.94) $ (0.83)
-------- --------
Redemption Fee $ - $ 0.00(b)
-------- --------
Net increase (decrease) in net asset value $ (0.04) $ 0.46
-------- --------
Net asset value, end of period $ 12.24 $ 12.28
======== ========
Total return* 7.48% 11.30%
Ratio of net expenses to average net assets+ 1.82% 1.89%
Ratio of net investment income to average net assets+ 6.96% 6.66%
Portfolio turnover rate 31% 41%
Net assets, end of period (in thousands) $598,195 $413,213
Ratios with no waiver of management fees and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.82% 1.89%
Net investment income 6.96% 6.66%
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 1.82% 1.89%
Net investment income 6.96% 6.66%
12/1/03 (a)
Year Ended to
10/31/05 10/31/04
CLASS C
Net asset value, beginning of period $ 11.74 $ 11.47
-------- ---------
Increase from investment operations:
Net investment income $ 0.80 $ 0.77
Net realized and unrealized gain on investments, credit default swaps and foreign
currency transactions 0.08 0.47
-------- ---------
Net increase from investment operations $ 0.88 $ 1.24
-------- ---------
Distributions to shareowners:
Net investment income $ (0.80) $ (0.76)
Net realized gain - (0.21)
-------- ---------
Total distributions $ (0.80) $ (0.97)
-------- ---------
Redemption Fee $ 0.00(b) $ -
-------- ---------
Net increase (decrease) in net asset value $ 0.08 $ 0.27
-------- ---------
Net asset value, end of period $ 11.82 $ 11.74
======== =========
Total return* 7.60% 11.45%(c)
Ratio of net expenses to average net assets+ 1.84% 1.51%**
Ratio of net investment income to average net assets+ 6.63% 7.30%**
Portfolio turnover rate 36% 50%(c)
Net assets, end of period (in thousands) $288,314 $ 92,501
Ratios with no waiver of management fees and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.91% 2.11%**
Net investment income 6.56% 6.70%**
Ratios with waiver of management fees by PIM and reduction for fees paid indirectly:
Net expenses 1.84% 1.51%**
Net investment income 6.63% 7.30%**
(a) Class C shares were first publicly offered on December 1, 2003.
(b) Amount rounds to less than one cent per share.
(c) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
48 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
12/28/05 (a)
Year Ended to
10/31/07 10/31/06
CLASS Y
Net asset value, beginning of period $ 12.19 $ 11.95
------- -------
Increase from investment operations:
Net investment income $ 0.97 $ 0.77
Net realized and unrealized gain (loss) on
investments, credit default swaps and
foreign currency transactions (0.01) 0.23
------- -------
Net increase from investment operations $ 0.96 $ 1.00
Distributions to shareowners:
Net investment income (0.99) (0.76)
Net realized gain (0.06) -
------- -------
Net increase (decrease) in net asset value $ (0.09) $ 0.24
------- -------
Net asset value, end of period $ 12.10 $ 12.19
======= =======
Total return* 8.12% 8.63%(b)
Ratio of net expenses to average net assets+ 0.70% 0.73%**
Ratio of net investment income to average
net assets+ 8.05% 7.66%**
Portfolio turnover rate 31% 41%(b)
Net assets, end of period (in thousands) $23,414 $ 36
Ratios with no waiver of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.70% 0.73%**
Net investment income 8.05% 7.66%**
Ratios with waiver of management fees by PIM and
reduction for fees paid indirectly:
Net expenses 0.70% 0.73%**
Net investment income 8.05% 7.66%**
(a) Class Y shares were first publicly offered on December 28, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 49
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
7/6/07 (a)
to
10/31/07
CLASS Z
Net asset value, beginning of period $ 12.65
---------
Increase (decrease) from investment operations:
Net investment income $ 0.33
Net realized and unrealized loss on investments, credit
default swaps and foreign currency transactions (0.35)
---------
Net decrease from investment operations $ (0.02)
Distributions to shareowners:
Net investment income (0.32)
---------
Net decrease in net asset value $ (0.34)
---------
Net asset value, end of period $ 12.31
=========
Total return* (0.09)%(b)
Ratio of net expenses to average net assets+ 0.69%**
Ratio of net investment income to average net assets+ 8.30%**
Portfolio turnover rate 31%(b)
Net assets, end of period (in thousands) $ 97
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 0.69%**
Net investment income 8.30%**
Ratios with waiver of management fees by PIM and reduction for
fees paid indirectly:
Net expenses 0.69%**
Net investment income 8.30%**
(a) Class Z shares were first publicly offered on July 6, 2007.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
50 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/07
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Global High Yield Fund (the Fund) is a series of Pioneer Series Trust
VII, a Delaware statutory trust registered under the Investment Company Act of
1940 as a non-diversified, open-end management investment company. The
investment objective of the Fund is to maximize total return through a
combination of income and capital appreciation.
The Fund offers five classes of shares - Class A, Class B, Class C, Class Y and
Class Z shares. Class Y shares were first publicly offered on December 28,
2005. Class Z shares were first publicly offered on July 6, 2007. Each class of
shares represents an interest in the same portfolio of investments of the Fund
and has equal rights to voting, redemptions, dividends and liquidation, except
that each class of shares can bear different transfer agent and distribution
fees and have exclusive voting rights with respect to the distribution plans
that have been adopted by Class A, Class B and Class C shareowners,
respectively. There is no distribution plan for Class Y and Class Z shares.
Class B shares convert to Class A shares eight years after the date of
purchase.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting year. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. The Fund's investments in foreign markets and countries
with limited developing markets may subject the Fund to a greater degree of
risk than in a developed market. These risks include disruptive political or
economic conditions and the imposition of adverse governmental laws or currency
exchange restrictions. The Fund's prospectus(es) contains information regarding
the Fund's principal risks. Please refer to those documents when considering
the Fund's risks.
51
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value
of the Fund is computed once daily, on each day the New York Stock
Exchange (NYSE) is open, as of the close of regular trading on the NYSE.
In computing the net asset value, securities are valued at the last sale
price on the principal exchange where they are traded. Fixed income
securities with remaining maturity of more than 60 days are valued at
prices supplied by independent pricing services, which consider such
factors as Treasury spreads, yields, maturities and ratings. Valuations
may be supplemented by dealers and other sources, as required. Securities
for which there are no other readily available valuation methods are
valued at their fair values as determined by, or under the direction of
the Board of Trustees and may include yield equivalents or a pricing
matrix. The Fund may also use the fair value of a security, including a
non-U.S. security, when the closing market price on the principal exchange
where the security is traded no longer accurately reflects the value of
the security. Temporary cash investments are valued at cost which
approximates market value.
All discounts and premiums on debt securities are accreted or amortized
daily, respectively, on a yield-to-maturity basis into interest income
with a corresponding increase or decrease in the cost basis of the
security. Interest income is recorded on the accrual basis, net of
unrecoverable foreign taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
The Fund invests in below investment grade (high yield) debt securities
and preferred stocks. Some of these high yield securities may be
convertible into equity securities of the issuer. Debt securities rated
below investment grade are commonly referred to as "junk bonds" and are
considered speculative. These securities involve greater risk of loss, are
subject to greater price volatility, and are
52
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
less liquid, especially during periods of economic uncertainty or change,
than higher rated debt securities. The Fund is not diversified, which
means that it can invest a higher percentage of its assets in any one
issuer than a diversified fund. Being non-diversified may magnify the
Fund's losses from adverse events affecting a particular issuer.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on
foreign currency contracts, disposition of foreign currencies and the
difference between the amount of income accrued and the U.S. dollars
actually received. Further, the effects of changes in foreign currency
exchange rates on investments are not segregated in the statement of
operations from the effects of changes in market price of those securities
but are included with the net realized and unrealized gain or loss on
investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio
hedges). All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized gains or losses are recorded
in the Fund's financial statements. The Fund records realized gains and
losses at the time a portfolio hedge is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar.
(See Note 8)
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net
53
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
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 has reclassified $4,567,519 to increase
undistributed net investment income and $4,567,519 to decrease accumulated
net realized gain on investments, credit default swaps and foreign
currency transactions to reflect permanent book/tax differences. The
reclassification has no affect 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 years ended October 31,
2007 and 2006 was as follows:
- --------------------------------------------------------------------------------
2007 2006
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $133,484,600 $64,045,310
Long-term capital gain 3,117,875 2,102,985
------------ -----------
Total $136,602,475 $66,148,295
============ ===========
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2007:
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Undistributed ordinary income $15,803,280
Undistributed long-term gain 14,654,845
Dividend payable (4,489,347)
Unrealized depreciation (19,286,359)
-----------
Total $ 6,682,419
===========
- --------------------------------------------------------------------------------
54
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The difference between book-basis and tax-basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales, adjustments
relating to catastrophe bonds, the mark to market of forward currency
contracts and the tax basis adjustment on partnerships and credit default
swaps.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.
(UniCredito Italiano), earned $508,067 in underwriting commissions on the
sale of Class A shares during the year ended October 31, 2007.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to all classes of shares
based on their respective percentage of adjusted net assets at the
beginning of the day.
Distribution fees are calculated based on the average daily net asset
value attributable to Class A, Class B and Class C of the Fund,
respectively (see Note 5). Class Y and Class Z shares are not subject to a
distribution plan. Shareowners of each class participate in all expenses
and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services, which are allocated
based on the number of accounts in each class and the ratable allocation
of related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner, at the same time, and in the same
amount, except that Class A, Class B, Class C, Class Y and Class Z shares
can bear different transfer agent and distribution expense rates.
55
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
G. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian, or sub custodians. The
Fund's investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
H. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
payments in lieu of dividends on the securities loaned. Gain or loss on
the fair value of the loaned securities that may occur during the term of
the loan will be for the account of the Fund. The loans are secured by
collateral which is required to be at least 102%, at all times, of the
fair value of the securities loaned. The amount of collateral is required
to be adjusted daily to reflect any price fluctuation in the value of the
loaned securities. The Fund has the right under the lending agreement to
recover the securities from the borrower on demand. The Fund invests cash
collateral in the Securities Lending Investment Fund, which is sponsored
by Brown Brothers Harriman & Co., the Fund's custodian.
I. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may buy
or sell credit default swap contracts to increase the Fund's income, to
add leverage to the Fund or to hedge the risk of default on portfolio
securities. As a seller of protection, the Fund would be required to pay
the notional (or other agreed-upon) value of the referenced debt
obligation to the counterparty in the event of a default by a U.S. or
foreign corporate issuer of a debt obligation, which would likely result
in a loss to the Fund. In return, the
56
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Fund would receive from the counterparty a periodic stream of payments
during the term of the contract provided that no event of default
occurred. The maximum exposure of loss to the seller would be the notional
value of the credit default swaps outstanding. If no default occurs, the
Fund would keep the stream of payments and would have no payment
obligation. The Fund may also buy credit default swap contracts in order
to hedge against the risk of default of debt securities, in which case the
Fund would function as the counterparty referenced above.
When the Fund enters into a credit default swap contract, one party, the
protection buyer, makes an upfront or periodic payment to the protection
seller in exchange for the right to receive a contingent payment. An
upfront payment received by the Fund, as the protection seller, is
recorded as a liability in the Fund's records. An upfront payment made by
the Fund, as the protection buyer, is recorded as an asset in the Fund's
records. Periodic payments received or paid by the Fund are recorded as
realized gains or losses.
The credit default swap contracts are marked-to-market daily using
valuations supplied by independent sources and the change in value, if
any, is recorded as unrealized gain or loss. Payments received or made as
a result of a credit event or upon termination of the contract are
recognized, net of the appropriate amount of the upfront payment, as
realized gains or losses.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the
Fund is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Credit default swap contracts outstanding at period end are listed at the
end of the Fund's schedule of investments.
57
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
Valuation
Credit default swaps are valued by an independent pricing service based
upon valuation models incorporating default probabilities, estimated
recovery rates, actual reported transactions, and other available market
data.
2. Unfunded Loan Commitments
As of October 31, 2007, the Fund had unfunded loan commitments of approximately
$5,016,446 (excluding unrealized depreciation on those commitments of $83,383
as of October 31, 2007) which could be extended at the option of the borrower,
pursuant to the following loan agreements:
- --------------------------------------------------------------------------------
Unfunded
Borrower Commitment
- --------------------------------------------------------------------------------
HUB International, Ltd., Delayed Draw Term Loan $ 539,608
New World Gaming, Delayed Draw Term Loan $ 224,978
NRG Energy, Inc., Delayed Draw Term Loan $ 3,676,978
Telesat Canada, Delayed Draw Term Loan $ 574,882
- --------------------------------------------------------------------------------
3. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary
of UniCredito Italiano, the Fund's investment adviser, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.70% of
the Fund's average daily net assets up to $500 million; 0.65% of the next $500
million; and 0.60% of the excess over $1 billion. Effective January 1, 2007,
Pioneer's fee is subject to an additional breakpoint. The Fund pays Pioneer a
fee at the annual rate of 0.55% of the Fund's average daily net assets greater
than $1.5 billion. For the year ended October 31, 2007, the net management fee
was equivalent to 0.63% of the average daily net assets.
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses of the Fund to the extent necessary to limit
the Fund expenses to 1.10%, 2.00% and 2.00% of the average daily net assets
attributable to Class A, Class B and Class C shares, respectively. These
expense limitations are in effect through March 1, 2010 for Class A shares and
through March 1, 2008 for Class B and Class C shares. Pioneer has contractually
58
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
agreed to limit ordinary operating expenses to the extent required to reduce
Fund expenses to 0.85% of the average daily net assets attributable to Class Z
shares. This expense limitation is in effect through March 1, 2010 for Class Z
shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. Included in "Due to affiliates" reflected on
the Statement of Assets and Liabilities is $37,592 in management fees,
administrative costs and certain other services payable to PIM at October 31,
2007.
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 $239,635 in transfer agent fees receivable from PIMSS
at October 31, 2007.
5. Distribution Plan
The Fund adopted Plans of Distribution with respect to each class of shares
(Class A Plan, Class B Plan, and Class C Plan) in accordance with Rule 12b-1 of
the Investment Company Act of 1940. Currently under the Class A Plan, PFD is
reimbursed for distribution expenses in an amount up to 0.25% of the average
daily net assets attributable to Class A shares. Pursuant to the Class B Plan
and the Class C Plan, the Fund pays PFD 1.00% of the average daily net assets
attributable to each class of 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 B
and Class C shares. Included in "Due to affiliates" reflected on the Statement
of Assets and Liabilities is $29,892 in distribution fees payable to PFD at
October 31, 2007.
In addition, redemptions of each class of shares (except Class Y and Class Z
shares) may be subject to a contingent deferred sales charge (CDSC). A CDSC of
1.00% may be imposed on redemptions of certain net asset value purchases of
Class A shares within 18 months of purchase. Class B shares that are redeemed
within five years of purchase are subject to a CDSC at declining rates
beginning at 4.00%, based on the lower of cost or market value of shares being
redeemed. Redemptions of Class C shares within one year of
59
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/07 (continued)
- --------------------------------------------------------------------------------
purchase are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid to
PFD. For the year ended October 31, 2007, CDSCs in the amount of $543,330 were
paid to PFD.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $200 million committed, unsecured
revolving line of credit facility. Borrowings are used solely for temporary or
emergency purposes. The Fund may borrow up to the lesser of $200 million or the
limits set by its prospectus for borrowings. Interest on borrowings is payable
at the Federal Funds Rate plus 1/2% on an annualized basis. The Funds pay an
annual commitment fee for this facility. The commitment fee is allocated among
such Funds based on their respective borrowing limits. For the year ended
October 31, 2007, the Fund had no borrowings under this agreement.
7. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended October 31, 2007, the Fund's expenses
were reduced by $57,886 such arrangements.
8. Forward Foreign Currency Contracts
At October 31, 2007, the Fund had entered into various contracts that obligate
the Fund to deliver currencies at specified future dates. At the maturity of a
contract, the Fund must make delivery of the foreign currency. Alternatively,
prior to the settlement date of a portfolio hedge, the Fund may close out such
contracts by entering into an offsetting hedge contract. Open Portfolio hedges
at October 31, 2007 were as follows:
60
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
Net Net
Contracts to In Exchange Settlement Unrealized
Currency (deliver)/receive For Date Value Gain (loss)
- -----------------------------------------------------------------------------------------------
CHF
(Swiss Franc) 22,897,399 $ 19,443,958 4/18/08 $ 19,981,369 $ 537,411
CHF
(Swiss Franc) (4,000,000) (3,413,453) 4/18/08 (3,488,672) (75,219)
NOK
(Norwegian
Krone) (38,524,313) (7,098,926) 11/26/07 (7,179,198) (80,272)
---------
$ 381,920
=========
- -----------------------------------------------------------------------------------------------
At October 31, 2007, the Fund had no outstanding settlement hedges.
9. 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 (series', trust'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 year 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 its impact in the financial
statements has not 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 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
57.26% for the year ending 10/31/07.
61
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and the Shareowners of
Pioneer Global High Yield Fund:
We have audited the accompanying statement of assets and liabilities of Pioneer
Global High Yield Fund (the "Fund") (one of the portfolios constituting the
Pioneer Series Trust VII), including the schedule of investments, as of October
31, 2007, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Fund's internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of October 31, 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
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global High Yield Fund at October 31, 2007, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the periods indicated therein, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 14, 2007
62
Pioneer Global High Yield 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.
63
Pioneer Global High Yield Fund
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service and Principal Occupation During Past Five Other Directorships
Name and Age With the Fund Term of Office Years Held by this Trustee
John F. Cogan, Jr. (81)* Chairman of the Trustee since 2001. Deputy Chairman and a Director of None
Board, Trustee and Serves until a Pioneer Global Asset Management S.p.A.
President successor trustee is ("PGAM"); Non-Executive Chairman and a
elected or earlier Director of Pioneer Investment
retirement or removal. Management USA Inc. ("PIM-USA");
Chairman and a Director of Pioneer;
Chairman and Director of Pioneer
Institutional Asset Management, Inc.
(since 2006); Director of Pioneer
Alternative Investment Management
Limited (Dublin); President and a
Director of Pioneer Alternative
Investment Management (Bermuda)
Limited and affiliated funds; Director
of PIOGLOBAL Real Estate Investment
Fund (Russia) (until June 2006);
Director of Nano-C, Inc. (since 2003);
Director of Cole Management Inc.
(since 2004); Director of Fiduciary
Counseling, Inc.; President and
Director of Pioneer Funds Distributor,
Inc. ("PFD") (until May 2006);
President of all of the Pioneer Funds;
and Of Counsel, Wilmer Cutler
Pickering Hale and Dorr LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury Trustee and Trustee since March Director, CEO and President of Pioneer None
(49)* Executive Vice 2007. Serves at the Investment Management USA Inc.;
President discretion of the Pioneer Investment Management, Inc.
Board 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)
- ------------------------------------------------------------------------------------------------------------------------------------
64
Pioneer Global High Yield Fund
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service and Principal Occupation During Past Five Other Directorships
Name and Age With the Fund Term of Office Years Held by this Trustee
David R. Bock (63) Trustee Trustee since 2005. Executive Vice President and Chief Director of The
Serves until a Financial Officer, I-trax, Inc. Enterprise Social
successor trustee is (publicly traded health care services Investment Company
elected or earlier company) (2004 - present); Partner, (privately-held
retirement or removal. Federal City Capital Advisors affordable housing
(boutique merchant bank) (1997 to finance company); and
2004); and Executive Vice President Director of New York
and Chief Financial Officer, Pedestal Mortgage Trust
Inc. (internet-based mortgage trading (publicly traded
company) (2000 - 2002) mortgage REIT)
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (59) Trustee Trustee since 2001. President, Bush International, LLC Director of Brady
Serves until a (international financial advisory Corporation
successor trustee is firm) (industrial
elected or earlier identification and
retirement or removal. 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
- ------------------------------------------------------------------------------------------------------------------------------------
65
Pioneer Global High Yield Fund
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Name and Age Position Held Length of Service and Principal Occupation During Past Five Other Directorships
With the Fund Term of Office Years Held by this Trustee
Margaret B.W. Graham Trustee Trustee since 2001. Founding Director, Vice-President and None
(60) Serves until a Corporate Secretary, The Winthrop
successor trustee is Group, Inc. (consulting firm); and
elected or earlier Desautels Faculty of Management,
retirement or removal. McGill University
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (57) Trustee Trustee since 2006. Private investor (2004 - present); and Director of Quadriserv
Serves until a Senior Executive Vice President, The Inc. (technology
successor trustee is Bank of New York (financial and products for
elected or earlier securities services) (1986 - 2004) securities lending
retirement or removal. industry)
- ------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (59) Trustee Trustee since 2001. President and Chief Executive Officer, Director of New
Serves until a Newbury, Piret & Company, Inc. America High Income
successor trustee is (investment banking firm) Fund, Inc. (closed-end
elected or earlier investment company)
retirement or removal.
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (79) Trustee Trustee since 2001. Senior Counsel, Sullivan & Cromwell Director, The Swiss
Serves until a (law firm) Helvetia Fund, Inc.
successor trustee is (closed-end investment
elected or earlier company)
retirement or removal.
- ------------------------------------------------------------------------------------------------------------------------------------
John Winthrop (71) Trustee Trustee since 2001. President, John Winthrop & Co., Inc. None
Serves until a (private investment firm)
successor trustee is
elected or earlier
retirement or removal.
- ------------------------------------------------------------------------------------------------------------------------------------
66
Pioneer Global High Yield Fund
- ------------------------------------------------------------------------------------------------------------------------------------
FUND OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service and Principal Occupation During Past Five Other Directorships
Name and Age With the Fund Term of Office Years Held by this Officer
Dorothy E. Bourassa (59) Secretary Since 2003. Serves at Secretary of PIM-USA; Senior Vice None
the discretion of the President - Legal of Pioneer;
Board 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 Assistant Since 2003. Serves at Vice President and Senior Counsel of None
(42) Secretary the discretion of the Pioneer since July 2002 and Assistant
Board 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) Treasurer Since 2001. Serves at Vice President - Fund Accounting, None
the discretion of the Administration and Controllership
Board Services of Pioneer; and Treasurer of
all of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (47) Assistant Since 2004. Serves at Deputy Treasurer of Pioneer since 2004 None
Treasurer the discretion of the and Assistant Treasurer of all of the
Board Pioneer Funds since November 2004;
Treasurer and Senior Vice President,
CDC IXIS Asset Management Services
from 2002 to 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Since 2001. Serves at Assistant Vice President - Fund None
Treasurer the discretion of the Accounting, Administration and
Board Controllership Services of Pioneer;
and Assistant Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (49) Assistant Since 2002. Serves at Fund Accounting Manager - Fund None
Treasurer the discretion of the Accounting, Administration and
Board Controllership Services of Pioneer;
and Assistant Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
67
Pioneer Global High Yield Fund
- ------------------------------------------------------------------------------------------------------------------------------------
FUND OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service and Principal Occupation During Past Five Other Directorships
Name and Age With the Fund Term of Office Years Held by this Officer
Katherine Kim Sullivan Assistant Since 2003. Serves at Fund Administration Manager - Fund None
(33) Treasurer the discretion of the Accounting, Administration and
Board 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 Since January 2007. Chief Compliance Officer of Pioneer None
Officer Serves at the since December 2006 and of all the
discretion of the Pioneer Funds since January 2007; Vice
Board 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.
68
- --------------------------------------------------------------------------------
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 annual filing of its Form N-1A, totaled
approximately $37,450 in 2007 and $36,010 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 and Other 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 $7,515 in 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.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
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
$7,515 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 VII
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.