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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-10395
Pioneer Series Trust VII
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2013 through October 31, 2014
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Global High
Yield Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PGHYX
Class B PGHBX*
Class C PGYCX
Class Y GHYYX
Class Z PGHZX
*NOTE: Class B shares converted to Class A shares on November
10, 2014.
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 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 50
Notes to Financial Statements 59
Report of Independent Registered Public Accounting Firm 73
Approval of Investment Advisory Agreement 74
Trustees, Officers and Service Providers 79
Pioneer Global High Yield Fund | Annual Report | 10/31/14 1
President's Letter
Dear Shareowner,
As we move into the final months of 2014, we remain confident that U.S. economic
growth remains self-sustaining despite weakness in foreign economies, and that
the expansion will continue until the economy reaches full employment.
Unemployment has ticked down below 6% and the number of job openings is at the
highest level since 2000, while the number of people filing initial unemployment
claims has fallen to the lowest level in fourteen years. Wage growth, while
still low, is outpacing inflation, consumer debt burdens are modest and lower
gasoline prices are freeing up discretionary spending power.
The global economic picture is less rosy, however, as the conflict between
Russia and the Ukraine is exacting a toll on the European economy, Japan is
still working through the impact of its large tax increase, and the growth of
China's investment-driven economy has been slowing. There are also geopolitical
and other threats to the outlook, such as the Ebola virus outbreak and the
advance of ISIS in key areas of the Middle East. On balance, though, we expect
the global economy to continue to grow over the remainder of 2014 and in 2015.
While our economic outlook is generally constructive and we believe
opportunities remain for prudent investors to earn attractive returns, markets
are likely to continue to be volatile, a scenario that offers the potential for
rewards, but for increased risks as well.
Since 1928, Pioneer's investment professionals have worked on behalf of our
shareholders, incorporating proprietary research to find attractive investment
opportunities and prudent risk management to construct portfolios.
We continue to advocate the benefits of adhering to a disciplined investment
strategy and encourage you to work with your financial advisor to develop and
implement an overall investment plan that addresses both your short- and
long-term goals.
2 Pioneer Global High Yield Fund | Annual Report | 10/31/14
On August 11, 2014, I joined Pioneer as the new President and CEO of Pioneer
Investment Management USA, Inc. In my role, I will focus on preserving many of
the rich qualities of our history, while meeting the challenges and capitalizing
on the opportunities presented by an ever-changing world.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 3
Portfolio Management Discussion | 10/31/14
After performing well during the first half of the 12-month period ended October
31, 2014, higher-yielding securities struggled in a more volatile market
environment over the final six months of the period as market confidence
gradually deteriorated amid growing concerns about slowing global economic
growth trends and rising geopolitical risks outside of the United States. In the
following interview, Andrew Feltus and Tracy Wright discuss the market
environment and the performance of Pioneer Global High Yield Fund during the
12-month period. Mr. Feltus, Director of High Yield and Bank Loans, a senior
vice president and a portfolio manager at Pioneer, is lead manager of the Fund,
and Ms. Wright, a senior vice president and portfolio manager at Pioneer, is the
co-manager of the Fund. Together, they are responsible for the day-to-day
management of the Fund.
Q How did the Fund perform during the 12-month period ended October 31, 2014?
A Pioneer Global High Yield Fund's Class A shares returned 3.16% at net asset
value during the 12-month period ended October 31, 2014, while the Fund's
benchmarks, the Barclays Global High Yield Index (the Barclays Index) and
the Bank of America Merrill Lynch High Yield Master II Index, returned 4.55%
and 5.85%, respectively. During the same 12-month period, the average return
of the 606 mutual funds in Lipper's High Yield Funds category was 4.45%, and
the average return of the 715 mutual funds in Morningstar's High Yield Bond
Funds category was 4.50%.
Q How would you describe the investment environment for high-yield investors
during the 12-month period ended October 31, 2014?
A While the investment backdrop was mostly supportive during the first six
months, the environment turned more volatile during the final half of the
12-month period. Early in the Fund's fiscal year, high-yield securities
performed well across most global markets due to growing confidence in the
strength of the U.S. economy, the belief that Europe had emerged from
recession, and that emerging markets, too, were recovering from earlier
volatility. During the second half of the period, however, markets became
more uneasy amid growing concerns about threats to the global economy. In
part, investors were worried about the potential effects of the U.S. Federal
Reserve System's (the Fed's) scaling back and eventually ending its monthly
bond purchases under the quantitative easing program. At the same time,
potential economic headwinds created by certain geopolitical events also
weighed on market sentiment. Economic sanctions taken against Russia by the
United States and several European countries due to Russia's aggression
against the Ukraine began having impacts not only on the Russian economy,
but also on many European economies. Meanwhile, the increased violence in
the Middle East in the wake of the rising influence of ISIS raised new
concerns in the minds of many investors.
4 Pioneer Global High Yield Fund | Annual Report | 10/31/14
The most positive news during the period came from the United States, where
the domestic economy demonstrated resilience after contracting in the first
quarter of 2014. In the U.S., gross domestic product (GDP) bounced back to
grow at an annual rate of 4.6% in the second quarter and at roughly 3.9% in
the third quarter. While growth in China continued to decelerate, the
country's economy still grew at an annual pace of 7.5%. Meanwhile, world
petroleum prices took an unexpected dip late in the period, a development
which had both positive and negative effects on the global economy. While
falling gasoline and fuel oil prices helped consumers, the declines also had
potential negative effects on capital goods spending, a major part of which
is devoted to energy production activities.
As those many developments occurred, global fixed-income markets became
increasingly volatile. U.S. Treasuries, which still were perceived by many
as the safest and most liquid asset class, rallied during the period. Prices
rose as the 10-year Treasury yield declined from 2.6% to 2.3% over the full
12-month period, and from 3.3% to 2.3% during the first 10 months of 2014;
however, more credit-sensitive securities experienced some difficulties, due
mainly to serious market corrections both in July and in October 2014.
High-yield corporates and other more economically-sensitive bond groups
produced modest results during the period, underperforming higher-quality
debt. Floating-rate bank loans and emerging markets securities each slightly
lagged the returns of domestic high-yield bonds. Those results came despite
good corporate profit reports and relatively low default rates on corporate
debt. Among the more credit-sensitive fixed-income groups, one bright area
could be found in event-linked (catastrophe) bonds issued by
property-and-casualty insurance companies. The asset class rallied and
posted strong performance due to a relatively mild hurricane season in the
U.S.
In world currency markets, the U.S. dollar (USD) rallied against virtually
all major foreign currencies, including the euro and the Japanese yen. The
USD's strength likely was attributable to increased confidence in the state
of the U.S. economy, and the market's perception of the USD as the safest
currency in a time of growing uncertainty about both slowing global economic
growth as well as increasing geopolitical risks.
Q Could you discuss your principal investment strategies for the Fund during
the 12-month period ended October 31, 2014, and how the strategies affected
relative performance?
A Good overall security selection and currency positioning tended to help
performance during the period, but the Fund underperformed the Barclays
Index as relative results were held back by our decision to keep the
portfolio's
Pioneer Global High Yield Fund | Annual Report | 10/31/14 5
duration shorter than that of the benchmark. (Duration is a measure of the
sensitivity of the price - the value of principal - of a fixed-income
investment to a change in interest rates, expressed as a number of years.)
Throughout the 12-month period, we were concerned that interest rates would
start to rise as the Fed began withdrawing stimulus from the U.S. economy,
and so we shortened the portfolio's effective duration, which stood at just
3.54 years as of October 31, 2014. As concerns about the global economy
grew, however, investors sought the safety of U.S. Treasuries, causing
interest rates to decline over the full period, while Treasury prices rose.
As noted previously, the yield of 10-year Treasuries declined from 3.3% to
2.3% during the final 10 months of the 12-month period, and Treasury prices
rallied. While longer-duration strategies tend to outperform as interest
rates decline, we gradually lowered the Fund's duration during the period
because of our aforementioned concern that interest rates would start to
increase.
We kept the portfolio well diversified* across higher-yielding, more
credit-sensitive areas of the market, and security selection results added
to the Fund's performance during the period. With regard to currency
positioning, we overweighted the portfolio in the USD, which proved an
effective strategy as the USD gained in relative value, especially late in
the period.
At the end of the period, on October 31, 2014, the largest allocations in
the Fund's portfolio were U.S. high-yield corporate bonds and international
corporates, which combined to account for roughly 80% of the Fund's total
invested assets, equally weighted at approximately 40%. Other notable
portfolio exposures at period end included catastrophe bonds, floating-rate
bank loans, convertible bonds, and a small allocation to U.S. investment-
grade corporate bonds.
Q What were some of the individual investments that affected the Fund's
results during the 12-month period ended October 31, 2014?
A Several individual investments made noteworthy positive contributions to the
Fund's relative return. One standout portfolio position was in bonds issued
by Stanadyne, a domestic manufacturer of small engine components. Strong
performance also came from two Brazilian beef companies: Marfrig, whose
securities rallied in price after the company reorganized; and Minerva,
whose debt rallied as the company's results continued to improve. Minerva's
debt was the Fund's largest position as of October 31, 2014.
Among the positions that did not help performance were the portfolio's
investments in bonds of Towergate Finance, an insurance broker based in the
United Kingdom, which underperformed because of concerns about the
* Diversification does not assure a profit nor protect against loss in a
declining market.
6 Pioneer Global High Yield Fund | Annual Report | 10/31/14
company's slowing growth rate; and securities issued by Midwest Vanadium, an
Australia-based firm that mines for vanadium, a mineral used in the
production of steel. The company's debt fell in price as demand for steel
slowed during the period.
Q Was the Fund's performance affected by exposure to derivative securities
during the 12-month period ended October 31, 2014?
A We invested in some forward currency contracts to hedge the currency risks
associated with the Fund's exposure to investments outside of the United
States. The currency contracts, which were used to help implement our
strategy to overweight the USD, had a positive impact on Fund results as the
USD gained against most foreign currencies during the period.
Q What is your investment outlook?
A We have a positive view about opportunities in the credit markets,
especially in domestic high-yield corporates. As credit-sensitive debt,
including high-yield securities, underperformed Treasuries during the past
several months, the spreads between the two groups widened, leading to
improved relative value in high-yield and other credit-sensitive bonds.
(Credit spreads are commonly defined as the differences in yield between
Treasuries and other types of fixed-income securities with similar
maturities.) At the same time, the investment fundamentals of corporate
securities remain solid. Profits, in general, continue to grow, balance
sheets are strong, and default rates are low by historical standards. The
economic backdrop in the United States also appears solid, as we expect the
economy to continue to grow moderately. In addition, inflation rates should
remain low given declining commodity prices.
While emerging markets securities have relatively attractive prices, the
underlying economic fundamentals in many developing countries are more mixed
than in the United States. Elsewhere, we believe the decision by the
European Central Bank to inject more financial liquidity into the European
markets by quantitative easing (or bond-buying) also should help the euro
zone economies to strengthen.
We do, however, expect more volatility in the capital markets as the Fed
continues its gradual withdrawal of economic stimulus from the domestic
economy. The end of quantitative easing was likely just the first step in
that process, and interest-rate hikes, long anticipated by the market, may
finally begin to occur sometime in 2015. As a consequence, we intend to
continue to shorten the Fund's interest-rate sensitivity by lowering
duration. We believe the short-duration stance, combined with the exposures
to floating-rate asset groups such as bank loans and catastrophe bonds,
should give the Fund some protection in the event of rising interest rates.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 7
Please refer to the Schedule of Investments on pages 18-49 for a full listing of
Fund securities.
Investments in high-yield or lower-rated securities are subject to
greater-than-average price volatility, illiquidity and possibility of default.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
Prepayment risk is the chance that an issuer may exercise its right to repay its
security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The Fund may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. 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 | Annual Report | 10/31/14
Portfolio Summary | 10/31/14
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 52.8%
Luxembourg 6.3%
Cayman Islands 4.5%
Argentina 4.1%
Mexico 3.8%
United Kingdom 3.3%
Bermuda 3.2%
Netherlands 2.1%
Canada 2.0%
Ireland 1.8%
Peru 1.4%
Indonesia 1.5%
Austria 1.2%
Other (individually less than 1%) 12.0%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. Minerva Luxembourg SA, 7.75%, 1/31/23 (144A) 1.35%
--------------------------------------------------------------------------------------
2. Mexican Udibonos, 2.0%, 6/9/22 1.20
--------------------------------------------------------------------------------------
3. Marfrig Overseas, Ltd., 9.5%, 5/4/20 (144A) 1.14
--------------------------------------------------------------------------------------
4. EP Energy LLC, 9.375%, 5/1/20 1.08
--------------------------------------------------------------------------------------
5. The PNC Financial Services Group, Inc., Floating Rate Note (Perpetual) 1.05
--------------------------------------------------------------------------------------
6. Vedanta Resources Plc, 8.25%, 6/7/21 (144A) 0.99
--------------------------------------------------------------------------------------
7. Frontier Communications Corp., 8.75%, 4/15/22 0.86
--------------------------------------------------------------------------------------
8. Cemex SAB de CV, 3.75%, 3/15/18 0.83
--------------------------------------------------------------------------------------
9. Pegasus Solutions, Inc., 13.0%, 11/28/14 (144A) 0.81
--------------------------------------------------------------------------------------
10. Ferrexpo Finance Plc, 7.875%, 4/7/16 (144A) 0.78
--------------------------------------------------------------------------------------
* The list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 9
Prices and Distributions | 10/31/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/14 10/31/13
--------------------------------------------------------------------------------
A $ 9.79 $10.13
--------------------------------------------------------------------------------
B* $ 9.80 $10.14
--------------------------------------------------------------------------------
C $ 9.76 $10.10
--------------------------------------------------------------------------------
Y $ 9.62 $ 9.96
--------------------------------------------------------------------------------
Z $10.07 $10.42
--------------------------------------------------------------------------------
Distributions per Share: 11/1/13-10/31/14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term Tax Return of
Class Dividends Capital Gains Capital Gains Capital
--------------------------------------------------------------------------------
A $0.6292 $ -- $ -- $0.0289
--------------------------------------------------------------------------------
B* $0.5447 $ -- $ -- $0.0289
--------------------------------------------------------------------------------
C $0.5566 $ -- $ -- $0.0289
--------------------------------------------------------------------------------
Y $0.6469 $ -- $ -- $0.0289
--------------------------------------------------------------------------------
Z $0.6711 $ -- $ -- $0.0289
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Barclays Global High Yield Index is an unmanaged index that provides a
broad-based measure of the global high-yield fixed-income markets. The index
represents the union of the Barclays U.S. High-Yield, Barclays Pan-European
High-Yield, Barclays U.S. Emerging Markets High-Yield, and Barclays Pan-European
Emerging Markets High-Yield Indices. The BofA ML High Yield Master II Index is
an unmanaged, commonly accepted measure of the performance of high-yield
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. It is not possible to invest directly in an index.
The indices defined here pertain to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 11-15.
*NOTE: Class B shares converted to Class A shares on November 10, 2014.
10 Pioneer Global High Yield Fund | Annual Report | 10/31/14
Performance Update | 10/31/14 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Global High Yield Fund at public
offering price during the periods shown, compared to that of the Bank of America
(BofA) Merrill Lynch (ML) High Yield Master II Index and the Barclays Global
High Yield Index.
Average Annual Total Returns
(As of October 31, 2014)
--------------------------------------------------------------------------------
BofA
ML Barclays
Net Public High Global
Asset Offering Yield High
Value Price Master Yield
Period (NAV) (POP) II Index Index
--------------------------------------------------------------------------------
10 Years 6.90% 6.41% 8.12% 8.73%
5 Years 8.49 7.50 10.26 10.10
1 Year 3.16 -1.51 5.85 4.55
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.10%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global BofA ML High Yield Barclays Global
High Yield Fund Master II Index High Yield Index
10/31/2004 $ 9,550 $ 10,000 $ 10,000
10/31/2005 $ 10,359 $ 10,396 $ 10,592
10/31/2006 $ 11,615 $ 11,471 $ 11,878
10/31/2007 $ 12,579 $ 12,256 $ 12,837
10/31/2008 $ 8,622 $ 9,006 $ 9,195
10/31/2009 $ 12,378 $ 13,400 $ 14,272
10/31/2010 $ 14,998 $ 15,976 $ 17,049
10/31/2011 $ 15,072 $ 16,750 $ 17,643
10/31/2012 $ 16,863 $ 18,958 $ 20,180
10/31/2013 $ 18,037 $ 20,632 $ 22,087
10/31/2014 $ 18,607 $ 21,839 $ 23,093
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had charges been reflected. POP returns reflect deduction
of maximum 4.50% sales charge. All results are historical and assume the
reinvestment of dividends and capital gains. Other share classes are available
for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 11
Performance Update | 10/31/14 Class B Shares*
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class B shares of Pioneer Global High Yield Fund during the
periods shown, compared to that of the Bank of America (BofA) Merrill Lynch (ML)
High Yield Master II Index and the Barclays Global High Yield Index.
Average Annual Total Returns
(As of October 31, 2014)
--------------------------------------------------------------------------------
BofA
ML Barclays
High Global
Yield High
If If Master Yield
Period Held Redeemed II Index Index
--------------------------------------------------------------------------------
10 Years 6.06% 6.06% 8.12% 8.73%
5 Years 7.67 7.67 10.26 10.10
1 Year 2.30 -1.57 5.85 4.55
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.94%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global BofA ML High Yield Barclays Global
High Yield Fund Master II Index High Yield Index
10/31/2004 $ 10,000 $ 10,000 $ 10,000
10/31/2005 $ 10,761 $ 10,396 $ 10,592
10/31/2006 $ 11,972 $ 11,471 $ 11,878
10/31/2007 $ 12,859 $ 12,256 $ 12,837
10/31/2008 $ 8,741 $ 9,006 $ 9,195
10/31/2009 $ 12,449 $ 13,400 $ 14,272
10/31/2010 $ 14,988 $ 15,976 $ 17,049
10/31/2011 $ 14,939 $ 16,750 $ 17,643
10/31/2012 $ 16,598 $ 18,958 $ 20,180
10/31/2013 $ 17,607 $ 20,632 $ 22,087
10/31/2014 $ 18,012 $ 21,839 $ 23,093
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"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). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
*NOTE: Class B shares converted to Class A shares on November 10, 2014.
12 Pioneer Global High Yield Fund | Annual Report | 10/31/14
Performance Update | 10/31/14 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Global High Yield Fund during the
periods shown, compared to that of the Bank of America (BofA) Merrill Lynch (ML)
High Yield Master II Index and the Barclays Global High Yield Index.
Average Annual Total Returns
(As of October 31, 2014)
--------------------------------------------------------------------------------
BofA
ML Barclays
High Global
Yield High
If If Master Yield
Period Held Redeemed II Index Index
--------------------------------------------------------------------------------
10 Years 6.13% 6.13% 8.12% 8.73%
5 Years 7.79 7.79 10.26 10.10
1 Year 2.43 2.43 5.85 4.55
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.81%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global BofA ML High Yield Barclays Global
High Yield Fund Master II Index High Yield Index
10/31/2004 $ 10,000 $ 10,000 $ 10,000
10/31/2005 $ 10,760 $ 10,396 $ 10,592
10/31/2006 $ 11,975 $ 11,471 $ 11,878
10/31/2007 $ 12,871 $ 12,256 $ 12,837
10/31/2008 $ 8,742 $ 9,006 $ 9,195
10/31/2009 $ 12,462 $ 13,400 $ 14,272
10/31/2010 $ 15,009 $ 15,976 $ 17,049
10/31/2011 $ 14,990 $ 16,750 $ 17,643
10/31/2012 $ 16,664 $ 18,958 $ 20,180
10/31/2013 $ 17,702 $ 20,632 $ 22,087
10/31/2014 $ 18,132 $ 21,839 $ 23,093
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 13
Performance Update | 10/31/14 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Global High Yield Fund during the
periods shown, compared to that of the Bank of America (BofA) Merrill Lynch (ML)
High Yield Master II Index and the Barclays Global High Yield Index.
Average Annual Total Returns
(As of October 31, 2014)
--------------------------------------------------------------------------------
BofA
ML Barclays
High Global
Yield High
If If Master Yield
Period Held Redeemed II Index Index
--------------------------------------------------------------------------------
10 Years 7.02% 7.02% 8.12% 8.73%
5 Years 8.81 8.81 10.26 10.10
1 Year 3.40 3.40 5.85 4.55
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.82%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global BofA ML High Yield Barclays Global
High Yield Fund Master II Index High Yield Index
10/31/2004 $ 5,000,000 $ 5,000,000 $ 5,000,000
10/31/2005 $ 5,425,714 $ 5,197,958 $ 5,296,135
10/31/2006 $ 6,018,897 $ 5,735,376 $ 5,939,054
10/31/2007 $ 6,507,849 $ 6,128,062 $ 6,418,700
10/31/2008 $ 4,492,722 $ 4,503,076 $ 4,597,534
10/31/2009 $ 6,459,456 $ 6,699,985 $ 7,135,862
10/31/2010 $ 7,838,297 $ 7,988,056 $ 8,524,255
10/31/2011 $ 7,904,556 $ 8,375,159 $ 8,821,649
10/31/2012 $ 8,880,765 $ 9,479,038 $ 10,090,079
10/31/2013 $ 9,526,710 $ 10,315,747 $ 11,043,604
10/31/2014 $ 9,850,732 $ 10,919,251 $ 11,546,425
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for Class Y shares for periods prior to the inception of Class
Y shares on December 28, 2005, is the net asset value performance of the Fund's
Class A shares. The performance does not reflect differences in expenses,
including the Rule 12b-1 fees applicable to Class A shares. Since fees for Class
A shares are generally higher than those of Class Y shares, the performance for
Class Y shares prior to their inception on December 28, 2005, would have been
higher than the performance shown. For the period beginning December 28, 2005,
the actual performance of Class Y shares is reflected. Class Y shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14 Pioneer Global High Yield Fund | Annual Report | 10/31/14
Performance Update | 10/31/14 Class Z Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class Z shares of Pioneer Global High Yield Fund during the
periods shown, compared to that of the Bank of America (BofA) Merrill Lynch (ML)
High Yield Master II Index and the Barclays Global High Yield Index.
Average Annual Total Returns
(As of October 31, 2014)
--------------------------------------------------------------------------------
BofA
ML Barclays
High Global
Yield High
If If Master Yield
Period Held Redeemed II Index Index
--------------------------------------------------------------------------------
10 Years 7.39% 7.39% 8.12% 8.73%
5 Years 8.74 8.74 10.26 10.10
1 Year 3.39 3.39 5.85 4.55
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.89%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global BofA ML High Yield Barclays Global
High Yield Fund Master II Index High Yield Index
10/31/2004 $ 10,000 $ 10,000 $ 10,000
10/31/2005 $ 10,851 $ 10,396 $ 10,592
10/31/2006 $ 12,167 $ 11,471 $ 11,878
10/31/2007 $ 13,193 $ 12,256 $ 12,837
10/31/2008 $ 9,339 $ 9,006 $ 9,195
10/31/2009 $ 13,419 $ 13,400 $ 14,272
10/31/2010 $ 16,315 $ 15,976 $ 17,049
10/31/2011 $ 16,402 $ 16,750 $ 17,643
10/31/2012 $ 18,420 $ 18,958 $ 20,180
10/31/2013 $ 19,731 $ 20,632 $ 22,087
10/31/2014 $ 20,399 $ 21,839 $ 23,093
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for Class Z shares for periods prior to the inception of Class
Z shares on July 6, 2007, is the net asset value performance of the Fund's Class
A shares. The performance does not reflect differences in expenses, including
the Rule 12b-1 fees applicable to Class A shares. Since fees for Class A shares
are generally higher than those of Class Z shares, the performance for Class Z
shares prior to their inception on July 6, 2007, would have been higher than the
performance shown. For the period beginning July 6, 2007, the actual performance
of Class Z shares is reflected. Class Z shares are not subject to sales charges
and are available for limited groups of eligible investors, including
institutional investors. All results are historical and assume the reinvestment
of dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global High Yield Fund
Based on actual returns from May 1, 2014, through October 31, 2014.
------------------------------------------------------------------------------------
Share Class A B C Y Z
------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/14
------------------------------------------------------------------------------------
Ending Account $ 995.08 $ 991.09 $ 991.48 $ 986.32 $ 996.34
Value (after expenses)
on 10/31/14
------------------------------------------------------------------------------------
Expenses Paid $ 5.68 $ 9.74 $ 9.19 $ 4.21 $ 4.53
During Period*
------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.13%,
1.94%, 1.83%, 0.84%, and 0.90% for Class A, Class B, Class C, Class Y and
Class Z shares, respectively, multiplied by the average account value over
the period, multiplied by 181/365 (to reflect the one-half year period).
16 Pioneer Global High Yield Fund | Annual Report | 10/31/14
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% return per year before expenses, reflecting the
period from May 1, 2014, through October 31, 2014.
------------------------------------------------------------------------------------
Share Class A B C Y Z
------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/14
------------------------------------------------------------------------------------
Ending Account $1,019.51 $1,015.08 $1,015.67 $1,020.58 $1,020.33
Value (after expenses)
on 10/31/14
------------------------------------------------------------------------------------
Expenses Paid $ 5.66 $ 9.79 $ 9.20 $ 4.26 $ 4.51
During Period*
------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.13%,
1.94%, 1.83%, 0.84%, and 0.90% for Class A, Class B, Class C, Class Y and
Class Z shares, respectively, multiplied by the average account value over
the period, multiplied by 181/365 (to reflect the one-half year period).
Pioneer Global High Yield Fund | Annual Report | 10/31/14 17
Schedule of Investments | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 4.5%
ENERGY -- 0.6%
Oil & Gas Exploration & Production -- 0.5%
5,335,000 Cobalt International Energy, Inc., 2.625%,
12/1/19 $ 3,964,572
4,430,000 Energy XXI, Ltd., 3.0%, 12/15/18 (144A) 3,148,069
-----------------
$ 7,112,641
--------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.1%
800,000 Golar LNG, Ltd., 3.75%, 3/7/17 $ 1,028,400
-----------------
Total Energy $ 8,141,041
--------------------------------------------------------------------------------------------------------------
MATERIALS -- 1.0%
Construction Materials -- 0.8%
8,300,000 Cemex SAB de CV, 3.75%, 3/15/18 $ 11,521,438
--------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.2%
3,385,000 Mirabela Nickel, Ltd., 9.5%, 6/24/19 $ 2,911,100
--------------------------------------------------------------------------------------------------------------
Steel -- 0.0%+
EURO 237,096 New World Resources NV, 4.0%, 10/7/20
(144A) (PIK) $ 136,636
-----------------
Total Materials $ 11,569,174
--------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.0%+
Electrical Components & Equipment -- 0.0%+
1,250,000 General Cable Corp., 4.5%, 11/15/29 (Step) $ 825,781
-----------------
Total Capital Goods $ 825,781
--------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.3%
Automobile Manufacturers -- 0.3%
3,104,000 Ford Motor Co., 4.25%, 11/15/16 $ 5,111,900
-----------------
Total Automobiles & Components $ 5,111,900
--------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.3%
Homebuilding -- 0.3%
4,640,000 KB Home, 1.375%, 2/1/19 $ 4,474,700
-----------------
Total Consumer Durables & Apparel $ 4,474,700
--------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.2%
Biotechnology -- 0.2%
1,675,000 ARIAD Pharmaceuticals, Inc., 3.625%,
6/15/19 (144A) $ 1,590,203
1,000,000 Cubist Pharmaceuticals, Inc., 1.125%, 9/1/18 1,145,000
-----------------
$ 2,735,203
-----------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 2,735,203
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.1%
Real Estate Operating Companies -- 0.1%
1,305,000 Forest City Enterprises, Inc., 4.25%, 8/15/18 $ 1,471,388
-----------------
Total Real Estate $ 1,471,388
--------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.2%
Internet Software & Services -- 0.5%
3,750,000 WebMD Health Corp., 1.5%, 12/1/20 (144A) $ 3,876,562
3,485,000 WebMD Health Corp., 2.5%, 1/31/18 3,583,016
-----------------
$ 7,459,578
--------------------------------------------------------------------------------------------------------------
Application Software -- 0.7%
1,945,000 Citrix Systems, Inc., 0.5%, 4/15/19 (144A) $ 2,031,309
1,025,000 Mentor Graphics Corp., 4.0%, 4/1/31 1,199,891
6,365,000 Nuance Communications, Inc., 2.75%, 11/1/31 6,209,853
-----------------
$ 9,441,053
-----------------
Total Software & Services $ 16,900,631
--------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE &
EQUIPMENT -- 0.1%
Electronic Components -- 0.1%
1,605,000 Vishay Intertechnology, Inc., 2.25%, 5/15/41
(144A) $ 1,403,372
-----------------
Total Technology Hardware & Equipment $ 1,403,372
--------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT -- 0.5%
Semiconductors -- 0.5%
10,750,000 ReneSola, Ltd., 4.125%, 3/15/18 (144A) $ 6,933,750
535,000 Suntech Power Holdings Co., Ltd., 3.0%,
3/15/13 (d) 1,338
-----------------
$ 6,935,088
-----------------
Total Semiconductors &
Semiconductor Equipment $ 6,935,088
--------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Independent Power Producers &
Energy Traders -- 0.2%
2,290,000 SunPower Corp., 0.875%, 6/1/21 (144A) $ 2,325,781
-----------------
Total Utilities $ 2,325,781
--------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $66,039,833) $ 64,894,059
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 19
Schedule of Investments | 10/31/14 (continued)
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 2.3%
ENERGY -- 0.2%
Oil & Gas Storage & Transportation -- 0.2%
131,100 7.62 NuStar Logistics LP, Floating Rate Note,
1/15/43 $ 3,492,504
-----------------
Total Energy $ 3,492,504
--------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.2%
Air Freight & Logistics -- 0.2%
3,428 CEVA Group Plc, 12/31/14 (c)* $ 3,171,057
-----------------
Total Transportation $ 3,171,057
--------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.0%+
Hotels, Resorts & Cruise Lines -- 0.0%+
17,350 Perseus Holding Corp., 14.0%,
4/15/14 (144A) (e) $ 0
-----------------
Total Consumer Services $ 0
--------------------------------------------------------------------------------------------------------------
BANKS -- 0.3%
Diversified Banks -- 0.3%
160,000 7.12 Citigroup, Inc., Floating Rate Note (Perpetual) $ 4,329,600
-----------------
Total Banks $ 4,329,600
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.9%
Consumer Finance -- 0.9%
3,100 Ally Financial, Inc., 7.0% (Perpetual) (144A) $ 3,120,150
355,600 8.12 GMAC Capital Trust I, Floating Rate Note,
2/15/40 9,505,188
-----------------
$ 12,625,338
-----------------
Total Diversified Financials $ 12,625,338
--------------------------------------------------------------------------------------------------------------
INSURANCE -- 0.3%
Reinsurance -- 0.3%
4,070,000 Pangaea Re., 7/1/18 (Cat Bond) (c) $ 4,260,476
-----------------
Total Insurance $ 4,260,476
--------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.4%
Electric Utilities -- 0.4%
212,000 PPL Capital Funding, Inc., 5.9%, 4/30/73 $ 5,162,200
-----------------
Total Utilities $ 5,162,200
--------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $31,767,221) $ 33,041,175
--------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.1%
ENERGY -- 0.1%
Oil & Gas Exploration & Production -- 0.1%
16,300 Penn Virginia Corp., 6.0% (Perpetual) (144A) $ 1,346,869
-----------------
Total Energy $ 1,346,869
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $1,630,000) $ 1,346,869
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.5%
MATERIALS -- 0.2%
Diversified Metals & Mining -- 0.2%
45,168 Freeport-McMoRan, Inc. $ 1,287,288
27,099,676 Mirabela Nickel, Ltd.* 1,752,010
-----------------
$ 3,039,298
-----------------
Total Materials $ 3,039,298
--------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.0%+
Construction & Engineering -- 0.0%+
161,215 Newhall Land Development LLC* $ 616,647
-----------------
Total Capital Goods $ 616,647
--------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.0%+
Diversified Support Services -- 0.0%+
63 IAP Worldwide Services, Inc. $ 53,486
-----------------
Total Commercial Services & Supplies $ 53,486
--------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.2%
Air Freight & Logistics -- 0.1%
1,584 CEVA Group Plc* $ 1,464,876
--------------------------------------------------------------------------------------------------------------
Marine -- 0.1%
2,370,345 Horizon Lines, Inc.* $ 936,286
-----------------
Total Transportation $ 2,401,162
--------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.0%+
Hotels, Resorts & Cruise Lines -- 0.0%+
33,046 Perseus Holding Corp.* (e) $ 0
--------------------------------------------------------------------------------------------------------------
Education Services -- 0.0%+
11,492 Cengage Learning Holdings II LP $ 323,212
-----------------
Total Consumer Services $ 323,212
--------------------------------------------------------------------------------------------------------------
BANKS -- 0.0%+
Diversified Banks -- 0.0%+
24,638 BTA Bank JSC (G.D.R.) (144A)* $ 15,645
-----------------
Total Banks $ 15,645
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Specialized Finance -- 0.1%
894 Panolam Holdings Co.* (e) $ 700,002
-----------------
Total Diversified Financials $ 700,002
--------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $11,873,450) $ 7,149,452
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 21
Schedule of Investments | 10/31/14 (continued)
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 1.2%
TRANSPORTATION -- 0.1%
Airlines -- 0.1%
1,213,302 Continental Airlines 1998-1 Class B Pass
Through Trust, 6.748%, 3/15/17 $ 1,280,034
-----------------
Total Transportation $ 1,280,034
--------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.0%+
Hotels, Resorts & Cruise Lines -- 0.0%+
403,648 Westgate Resorts 2012-A LLC, 3.75%,
8/20/25 (144A) $ 407,047
-----------------
Total Consumer Services $ 407,047
--------------------------------------------------------------------------------------------------------------
BANKS -- 0.4%
Thrifts & Mortgage Finance -- 0.4%
337,142 1.43 Amortizing Residential Collateral Trust
2002-BC1, Floating Rate Note, 1/25/32 $ 240,711
1,523,000 Citicorp Residential Mortgage Trust Series
2006-2, 5.918%, 9/25/36 (Step) 1,366,857
1,511,699 1.13 Countrywide Asset-Backed Certificates,
Floating Rate Note, 11/25/34 1,308,948
1,500,000 6.55 Security National Mortgage Loan Trust
2007-1, Floating Rate Note, 4/25/37 (144A) 1,523,367
1,000,000 United Auto Credit Securitization Trust 2013-1,
4.4%, 4/15/19 (144A) 1,009,149
698,441 Westgate Resorts 2014-A LLC, 6.25%,
10/20/26 (144A) 697,350
-----------------
$ 6,146,382
-----------------
Total Banks $ 6,146,382
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.7%
Other Diversified Financial Services -- 0.2%
6,853,080 0.63 Aircraft Finance Trust, Floating Rate Note,
5/15/24 $ 2,672,701
--------------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.5%
748,532 0.58 Lease Investment Flight Trust, Floating Rate
Note, 7/15/31 $ 501,516
8,593,855 0.54 Lease Investment Flight Trust, Floating Rate
Note, 7/15/31 6,187,575
-----------------
$ 6,689,091
-----------------
Total Diversified Financials $ 9,361,792
--------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $16,531,205) $ 17,195,255
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 1.5%
BANKS -- 1.4%
Thrifts & Mortgage Finance -- 1.4%
455,000 5.97 COBALT CMBS Commercial Mortgage Trust
2007-C3, Floating Rate Note, 5/15/46 $ 380,553
1,502,000 5.14 Credit Suisse First Boston Mortgage Securities
Corp., Floating Rate Note, 10/15/39 (144A) 1,514,641
9,000,000 7.08 Credit Suisse First Boston Mortgage Securities
Corp., Floating Rate Note, 12/15/35 (144A) 4,719,438
1,175,000 3.60 EQTY 2014-INNS Mortgage Trust, Floating Rate
Note, 5/8/31 (144A) 1,176,752
840,000 4.90 EQTY 2014-MZ Mezzanine Trust, Floating Rate
Note, 5/8/31 (144A) 840,949
279,498 5.66 First Horizon Mortgage Pass-Through Trust
2004-6, Floating Rate Note, 11/25/34 222,766
983,460 Homeowner Assistance Program Reverse
Mortgage Loan Trust 2013-RM1, 4.0%,
5/26/53 (144A) 960,447
2,100,000 6.00 JP Morgan Chase Commercial Mortgage
Securities Trust 2007-LDP12, Floating Rate
Note, 2/15/51 2,151,683
2,316,872 2.68 JP Morgan Mortgage Trust 2005-A1, Floating
Rate Note, 2/25/35 2,249,736
4,315,000 TimberStar Trust 1, 7.5296%, 10/15/36 (144A) 4,529,507
775,000 6.15 Wachovia Bank Commercial Mortgage Trust
Series 2007-C34, Floating Rate Note, 5/15/46 797,543
-----------------
$ 19,544,015
-----------------
Total Banks $ 19,544,015
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Specialized Finance -- 0.1%
1,480,000 5.97 COBALT CMBS Commercial Mortgage Trust
2007-C3, Floating Rate Note, 5/15/46 $ 1,365,266
-----------------
Total Diversified Financials $ 1,365,266
--------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $24,303,158) $ 20,909,281
--------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 77.2%
ENERGY -- 12.6%
Oil & Gas Drilling -- 0.6%
2,835,000 North Atlantic Drilling, Ltd., 6.25%, 2/1/19
(144A) $ 2,353,050
2,835,000 Shelf Drilling Holdings, Ltd., 8.625%,
11/1/18 (144A) 2,799,562
3,765,000 Unit Corp., 6.625%, 5/15/21 3,755,588
-----------------
$ 8,908,200
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 23
Schedule of Investments | 10/31/14 (continued)
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.3%
2,175,000 Calfrac Holdings LP, 7.5%, 12/1/20 (144A) $ 2,218,500
2,680,000 FTS International, Inc., 6.25%, 5/1/22 (144A) 2,532,600
-----------------
$ 4,751,100
--------------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.4%
2,770,000 American Energy - Utica LLC, 3.5% (3.50%
Cash, 0.00% PIK), 3/1/21 (144A) (PIK) $ 2,991,600
1,820,000 American Energy-Permian Basin LLC, 7.375%,
11/1/21 (144A) 1,592,500
MXN 8,650,000 Petroleos Mexicanos, 7.19%, 9/12/24 (144A) 650,646
1,000,000 YPF SA, 8.875%, 12/19/18 (144A) 1,045,000
-----------------
$ 6,279,746
--------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 8.8%
5,000,000 Baytex Energy Corp., 5.125%, 6/1/21 (144A) $ 4,875,000
2,165,000 Bonanza Creek Energy, Inc., 5.75%, 2/1/23 2,067,575
1,270,000 Bonanza Creek Energy, Inc., 6.75%, 4/15/21 1,273,175
2,830,000 BreitBurn Energy Partners LP, 7.875%, 4/15/22 2,715,031
2,000,000 Carrizo Oil & Gas, Inc., 7.5%, 9/15/20 2,020,000
2,596,000 Chaparral Energy, Inc., 7.625%, 11/15/22 2,531,100
4,240,000 Comstock Resources, Inc., 7.75%, 4/1/19 4,155,200
2,000,000 Comstock Resources, Inc., 9.5%, 6/15/20 2,110,000
3,695,000 Denbury Resources, Inc., 5.5%, 5/1/22 3,639,575
13,700,000 EP Energy LLC, 9.375%, 5/1/20 14,967,250
4,980,000 EPL Oil & Gas, Inc., 8.25%, 2/15/18 4,830,600
3,260,000 GeoPark Latin America, Ltd. Agencia en Chile,
7.5%, 2/11/20 (144A) 3,455,600
4,990,000 Gulfport Energy Corp., 7.75%, 11/1/20 5,089,800
6,250,000 Halcon Resources Corp., 8.875%, 5/15/21 5,125,000
3,790,000 Hilcorp Energy I LP, 5.0%, 12/1/24 (144A) 3,638,400
3,135,000 Jupiter Resources, Inc., 8.5%, 10/1/22 (144A) 2,766,638
1,000,000 KazMunayGas National Co JSC, 4.4%, 4/30/23
(144A) 982,000
5,215,000 Kodiak Oil & Gas Corp., 8.125%, 12/1/19 5,606,125
750,000 Lightstream Resources, Ltd., 8.625%, 2/1/20
(144A) 690,000
3,225,000 Memorial Production Partners LP, 6.875%,
8/1/22 (144A) 2,918,625
3,000,000 Memorial Production Partners LP, 7.625%,
5/1/21 2,906,250
1,525,000 Memorial Resource Development Corp.,
5.875%, 7/1/22 (144A) 1,486,875
2,800,000 Midstates Petroleum Co., Inc., 9.25%, 6/1/21 2,380,000
2,840,000 Oasis Petroleum, Inc., 6.5%, 11/1/21 2,911,000
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration &
Production -- (continued)
7,570,000 Pacific Rubiales Energy Corp., 5.375%,
1/26/19 (144A) $ 7,588,925
2,450,000 QR Energy LP, 9.25%, 8/1/20 2,762,375
1,960,000 Rex Energy Corp., 6.25%, 8/1/22 (144A) 1,842,400
6,995,000 Rosetta Resources, Inc., 5.875%, 6/1/22 6,715,200
1,935,000 Rosetta Resources, Inc., 5.875%, 6/1/24 1,857,600
3,765,000 Sanchez Energy Corp., 6.125%, 1/15/23
(144A) 3,586,162
1,500,000 Sanchez Energy Corp., 7.75%, 6/15/21 1,530,000
1,650,000 SM Energy Co., 6.5%, 1/1/23 1,703,625
3,800,000 Stone Energy Corp., 7.5%, 11/15/22 3,543,500
2,410,000 Swift Energy Co., 8.875%, 1/15/20 2,349,750
3,020,000 Talos Production LLC, 9.75%, 2/15/18 (144A) 3,042,650
CAD 1,775,000 Trilogy Energy Corp., 7.25%, 12/13/19 (144A) 1,621,724
1,850,000 Ultra Petroleum Corp., 5.75%, 12/15/18
(144A) 1,831,500
1,245,000 Vanguard Natural Resources LLC, 7.875%,
4/1/20 1,229,438
-----------------
$ 126,345,668
--------------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.3%
4,025,000 Calumet Specialty Products Partners LP, 6.5%,
4/15/21 (144A) $ 3,904,250
--------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.1%
2,790,000 Energy Transfer Equity LP, 5.875%, 1/15/24 $ 2,929,500
950,000 3.26 Energy Transfer Partners LP, Floating Rate Note,
11/1/66 884,688
1,230,000 Gibson Energy, Inc., 6.75%, 7/15/21 (144A) 1,306,875
NOK 12,000,000 6.94 Golar LNG Partners LP, Floating Rate Note,
10/12/17 1,843,898
4,000,000 Sabine Pass Liquefaction LLC, 5.625%, 2/1/21 4,190,000
4,350,000 Targa Resources Partners LP, 4.25%, 11/15/23 4,306,500
-----------------
$ 15,461,461
--------------------------------------------------------------------------------------------------------------
Coal & Consumable Fuels -- 1.1%
315,000 Alpha Natural Resources, Inc., 6.0%, 6/1/19 $ 157,500
11,063,000 Berau Capital Resources Pte, Ltd., 12.5%,
7/8/15 (144A) 8,518,510
3,750,000 Berau Coal Energy Tbk PT, 7.25%, 3/13/17
(144A) 2,568,750
6,200,000 Bumi Capital Pte, Ltd., 12.0%, 11/10/16
(144A) (d) 2,263,000
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 25
Schedule of Investments | 10/31/14 (continued)
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Coal & Consumable Fuels -- (continued)
1,900,000 Indo Energy Finance II BV, 6.375%, 1/24/23
(144A) $ 1,534,250
4,435,000 James River Coal Co., 7.875%, 4/1/19 (d) 30,491
-----------------
$ 15,072,501
-----------------
Total Energy $ 180,722,926
--------------------------------------------------------------------------------------------------------------
MATERIALS -- 8.5%
Commodity Chemicals -- 0.9%
EURO 2,500,000 KP Germany Erste GmbH, 11.625%, 7/15/17
(144A) $ 3,429,916
9,820,000 Rain CII Carbon LLC, 8.0%, 12/1/18 (144A) 10,114,600
-----------------
$ 13,544,516
--------------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.4%
EURO 4,325,000 INEOS Group Holdings SA, 5.75%, 2/15/19
(144A) $ 5,393,544
--------------------------------------------------------------------------------------------------------------
Construction Materials -- 0.1%
600,000 Cemex Finance LLC, 6.0%, 4/1/24 (144A) $ 611,820
820,000 Union Andina de Cementos SAA, 5.875%,
10/30/21 (144A) 832,464
-----------------
$ 1,444,284
--------------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 2.1%
3,355,000 AEP Industries, Inc., 8.25%, 4/15/19 $ 3,464,038
EURO 400,000 Ardagh Finance Holdings SA, 8.375%,
6/15/19 (0.00% cash, 8.375% PIK) (144A)
(PIK) 492,350
2,960,000 Ardagh Finance Holdings SA, 8.625%, (0.00%
Cash, 8.625% PIK) 6/15/19 (144A) (PIK) 3,026,630
423,529 Ardagh Packaging Finance Plc, 7.0%,
11/15/20 (144A) 432,000
5,000,000 Ardagh Packaging Finance Plc, 9.125%,
10/15/20 (144A) 5,387,500
EURO 2,100,000 Ardagh Packaging Finance Plc, 9.25%,
10/15/20 (144A) 2,815,042
2,400,000 Reynolds Group Issuer, Inc., 8.25%, 2/15/21 2,580,000
7,490,000 Reynolds Group Issuer, Inc., 8.5%, 5/15/18 7,761,512
3,785,000 Reynolds Group Issuer, Inc., 9.875%, 8/15/19 4,111,456
-----------------
$ 30,070,528
--------------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.1%
1,695,000 Cascades, Inc., 5.5%, 7/15/22 (144A) $ 1,673,812
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.1%
4,400,000 Amsted Industries, Inc., 5.0%, 3/15/22 (144A) $ 4,339,500
6,210,000 Ausdrill Finance Pty, Ltd., 6.875%, 11/1/19
(144A) 5,325,075
10,175,000 Midwest Vanadium Pty, Ltd., 11.5%, 2/15/18
(144A) (d) 1,424,500
4,000,000 MMC Norilsk Nickel OJSC via MMC Finance,
Ltd., 5.55%, 10/28/20 (144A) 3,980,000
1,560,000 Prince Mineral Holding Corp., 12.0%,
12/15/19 (144A) 1,708,200
12,660,000 Vedanta Resources Plc, 8.25%, 6/7/21 (144A) 13,799,400
-----------------
$ 305,766,675
--------------------------------------------------------------------------------------------------------------
Precious Metals & Minerals -- 0.1%
1,825,000 Fresnillo Plc, 5.5%, 11/13/23 (144A) $ 1,919,352
--------------------------------------------------------------------------------------------------------------
Steel -- 2.3%
2,300,000 EVRAZ plc, 7.50%, 11/15/19 $ 2,300,000
11,475,000 Ferrexpo Finance Plc, 7.875%, 4/7/16 (144A) 10,788,795
4,340,000 JMC Steel Group, Inc., 8.25%, 3/15/18 (144A) 4,405,100
1,800,000 Metalloinvest Finance, Ltd., 5.625%, 4/17/20
(144A) 1,631,250
2,660,000 Metalloinvest Finance, Ltd., 6.5%, 7/21/16
(144A) 2,679,950
2,720,000 Metinvest BV, 10.25%, 5/20/15 (144A) 2,162,944
11,350,000 Metinvest BV, 8.75%, 2/14/18 (144A) 7,924,116
EURO 101,612 0.00 New World Resources NV, Floating Rate Note,
10/7/20 127,300
EURO 135,483 0.00 New World Resources NV, Floating Rate Note,
10/7/20 169,733
-----------------
$ 32,189,188
--------------------------------------------------------------------------------------------------------------
Paper Products -- 0.4%
5,685,000 Resolute Forest Products, Inc., 5.875%,
5/15/23 $ 5,443,388
-----------------
Total Materials $ 122,255,287
--------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 4.7%
Aerospace & Defense -- 0.4%
125,000 Bombardier, Inc., 4.75%, 4/15/19 $ 128,438
1,157,000 Bombardier, Inc., 6.0%, 10/15/22 1,188,094
2,970,000 DigitalGlobe, Inc., 5.25%, 2/1/21 (144A) 2,888,325
2,433,000 DynCorp International, Inc., 10.375%, 7/1/17 2,086,298
-----------------
$ 6,291,155
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 27
Schedule of Investments | 10/31/14 (continued)
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Building Products -- 0.5%
6,750,000 Griffon Corp., 5.25%, 3/1/22 $ 6,496,875
--------------------------------------------------------------------------------------------------------------
Construction & Engineering -- 1.8%
EURO 640,000 Abengoa Finance SAU, 6.0%, 3/31/21 (144A) $ 779,743
6,900,000 Abengoa Finance SAU, 8.875%, 11/1/17
(144A) 7,529,625
2,230,000 Dycom Investments, Inc., 7.125%, 1/15/21 2,341,500
6,450,000 Empresas ICA SAB de CV, 8.9%, 2/4/21
(144A) 6,820,875
8,764,000 OAS Investments GmbH, 8.25%, 10/19/19
(144A) 8,522,990
-----------------
$ 25,994,733
--------------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.3%
3,250,000 General Cable Corp., 5.75%, 10/1/22 $ 2,860,000
1,100,000 WireCo WorldGroup, Inc., 9.5%, 5/15/17 1,122,000
-----------------
$ 3,982,000
--------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.8%
5,075,000 Constellation Enterprises LLC, 10.625%,
2/1/16 (144A) $ 4,161,500
2,980,000 JB Poindexter & Co., Inc., 9.0%, 4/1/22
(144A) 3,248,200
4,100,000 Magnesita Finance, Ltd., 8.625% (Perpetual)
(144A) 4,100,000
-----------------
$ 11,509,700
--------------------------------------------------------------------------------------------------------------
Construction & Farm Machinery &
Heavy Trucks -- 0.6%
8,405,000 Navistar International Corp., 8.25%, 11/1/21 $ 8,640,340
--------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.3%
4,365,000 WESCO Distribution, Inc., 5.375%, 12/15/21 $ 4,386,825
-----------------
Total Capital Goods $ 67,301,628
--------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.4%
Environmental & Facilities Services -- 0.3%
5,080,000 Liberty Tire Recycling LLC, 11.0%, 10/1/16
(144A) $ 4,775,200
6,510,000 Old AII, Inc., 10.0%, 12/15/16 (d) 65
-----------------
$ 4,775,265
--------------------------------------------------------------------------------------------------------------
Diversified Support Services -- 0.1%
1,475,000 NANA Development Corp., 9.5%, 3/15/19
(144A) $ 1,386,500
-----------------
Total Commercial Services & Supplies $ 6,161,765
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.6%
Airlines -- 0.9%
3,525,000 Gol LuxCo SA, 8.875%, 1/24/22 (144A) $ 3,463,312
2,050,000 Guanay Finance, Ltd., 6.0%, 12/15/20 (144A) 2,152,500
4,250,000 TAM Capital 3, Inc., 8.375%, 6/3/21 (144A) 4,547,500
3,500,000 United Continental Holdings, Inc., 6.0%,
7/15/26 3,386,250
-----------------
$ 13,549,562
--------------------------------------------------------------------------------------------------------------
Marine -- 0.3%
3,650,000 Navios South American Logistics, Inc., 7.25%,
5/1/22 (144A) $ 3,677,375
--------------------------------------------------------------------------------------------------------------
Railroads -- 0.4%
3,500,000 Far East Capital, Ltd. SA, 8.0%, 5/2/18 (144A) $ 1,820,000
3,370,000 Florida East Coast Holdings Corp., 6.75%,
5/1/19 (144A) 3,477,436
-----------------
$ 5,297,436
--------------------------------------------------------------------------------------------------------------
Trucking -- 0.3%
5,288,379 Inversiones Alsacia SA, 8.0%, 8/18/18
(144A) (d) $ 3,860,517
--------------------------------------------------------------------------------------------------------------
Airport Services -- 0.5%
3,208,750 Aeropuertos Argentina 2000 SA, 10.75%,
12/1/20 (144A) $ 3,410,901
3,900,000 Aguila 3 SA, 7.875%, 1/31/18 (144A) 3,909,750
-----------------
$ 7,320,651
--------------------------------------------------------------------------------------------------------------
Highways & Railtracks -- 0.2%
MXN 47,000,000 Red de Carreteras de Occidente SAPIB de CV,
9.0%, 6/10/28 (144A) $ 3,328,692
-----------------
Total Transportation $ 37,034,233
--------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.5%
Auto Parts & Equipment -- 0.2%
3,150,000 Meritor, Inc., 6.75%, 6/15/21 $ 3,323,250
--------------------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.1%
1,000,000 The Goodyear Tire & Rubber Co., 7.0%,
5/15/22 $ 1,087,500
--------------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.2%
2,700,000 Geely Automobile Holdings, Ltd., 5.25%,
10/6/19 (144A) $ 2,760,750
-----------------
Total Automobiles & Components $ 7,171,500
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 29
Schedule of Investments | 10/31/14 (continued)
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.9%
Homebuilding -- 1.2%
2,100,000 Brookfield Residential Properties, Inc., 6.5%,
12/15/20 (144A) $ 2,236,500
9,802,000 Desarrolladora Homex SAB de CV, 9.5%,
12/11/19 (144A) (d) 1,132,131
800,000 KB Home, 7.0%, 12/15/21 856,000
4,450,000 Lennar Corp., 4.75%, 11/15/22 4,383,250
2,200,000 Rialto Holdings LLC, 7.0%, 12/1/18 (144A) 2,249,500
5,810,000 Standard Pacific Corp., 6.25%, 12/15/21 6,100,500
7,500,000 Urbi Desarrollos Urbanos SAB de CV, 9.75%,
2/3/22 (144A) (d) 753,750
-----------------
$ 17,711,631
--------------------------------------------------------------------------------------------------------------
Leisure Products -- 0.7%
EURO 4,700,000 Heckler & Koch GmbH, 9.5%, 5/15/18 (144A) $ 4,416,120
5,000,000 Icon Health & Fitness, Inc., 11.875%,
10/15/16 (144A) 4,893,750
-----------------
$ 9,309,870
-----------------
Total Consumer Durables & Apparel $ 27,021,501
--------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.3%
Casinos & Gaming -- 0.7%
EURO 6,950,000 Cirsa Funding Luxembourg SA, 8.75%,
5/15/18 (144A) $ 8,903,737
75,878 Mashantucket Western Pequot Tribe, 6.5%,
7/1/36 (1.0% cash, 5.50% PIK) (PIK) (d) 403
625,000 Scientific Games International, Inc., 6.25%,
9/1/20 500,000
-----------------
$ 9,404,140
--------------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.2%
2,860,000 Viking Cruises, Ltd., 8.5%, 10/15/22 (144A) $ 3,095,950
--------------------------------------------------------------------------------------------------------------
Restaurants -- 0.1%
BRL 4,250,000 Arcos Dorados Holdings, Inc., 10.25%,
7/13/16 (144A) $ 1,604,421
--------------------------------------------------------------------------------------------------------------
Education Services -- 0.3%
4,225,000 Cambium Learning Group, Inc., 9.75%,
2/15/17 $ 4,140,500
-----------------
Total Consumer Services $ 18,245,011
--------------------------------------------------------------------------------------------------------------
MEDIA -- 1.5%
Broadcasting -- 0.6%
4,000,000 Intelsat Luxembourg SA, 7.75%, 6/1/21 $ 4,180,000
1,600,000 Nara Cable Funding, Ltd., 8.875%, 12/1/18
(144A) 1,678,560
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Broadcasting -- (continued)
EURO 1,550,000 Nara Cable Funding, Ltd., 8.875%, 12/1/18
(144A) $ 2,034,466
-----------------
$ 7,893,026
--------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.7%
2,025,000 Altice SA, 7.75%, 5/15/22 (144A) $ 2,126,250
3,000,000 CCOH Safari LLC, 5.5%, 12/1/22 3,030,000
1,250,000 Numericable Group SA, 6.0%, 5/15/22 (144A) 1,278,125
3,250,000 Videotron, Ltd., 5.375%, 6/15/24 (144A) 3,347,500
-----------------
$ 9,781,875
--------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.1%
1,025,000 Live Nation Entertainment, Inc., 5.375%,
6/15/22 (144A) $ 1,027,562
1,000,000 WMG Acquisition Corp., 6.75%, 4/15/22
(144A) 985,000
-----------------
$ 2,012,562
--------------------------------------------------------------------------------------------------------------
Publishing -- 0.1%
1,675,000 MPL 2 Acquisition Canco, Inc., 9.875%,
8/15/18 (144A) $ 1,796,438
-----------------
Total Media $ 21,483,901
--------------------------------------------------------------------------------------------------------------
RETAILING -- 0.7%
Distributors -- 0.1%
1,250,000 LKQ Corp., 4.75%, 5/15/23 $ 1,208,000
--------------------------------------------------------------------------------------------------------------
Department Stores -- 0.2%
3,850,000 Grupo Famsa SAB de CV, 7.25%, 6/1/20
(144A) $ 3,676,750
--------------------------------------------------------------------------------------------------------------
Computer & Electronics Retail -- 0.2%
2,710,000 Rent-A-Center, Inc., 4.75%, 5/1/21 $ 2,296,725
--------------------------------------------------------------------------------------------------------------
Specialty Stores -- 0.2%
3,205,000 Outerwall, Inc., 5.875%, 6/15/21 (144A) $ 3,092,825
-----------------
Total Retailing $ 10,274,300
--------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.5%
Food Distributors -- 0.3%
3,720,000 JBS Investments GmbH, 7.75%, 10/28/20
(144A) $ 4,075,744
--------------------------------------------------------------------------------------------------------------
Food Retail -- 0.2%
2,535,000 C&S Group Enterprises LLC, 5.375%, 7/15/22
(144A) $ 2,535,000
-----------------
Total Food & Staples Retailing $ 6,610,744
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 31
Schedule of Investments | 10/31/14 (continued)
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 8.4%
Distillers & Vintners -- 0.4%
2,387,885 CEDC Finance Corp International, Inc., 10.0%,
4/30/18 (PIK) $ 1,910,308
4,829,992 CEDC Finance Corp International, Inc., 9.0%,
4/30/18 (Step) 4,491,893
-----------------
$ 6,402,201
--------------------------------------------------------------------------------------------------------------
Soft Drinks -- 0.2%
3,200,000 Cott Beverages, Inc., 5.375%, 7/1/22 (144A) $ 3,168,000
--------------------------------------------------------------------------------------------------------------
Agricultural Products -- 0.4%
4,400,000 Tonon Bioenergia SA, 9.25%, 1/24/20 (144A) $ 3,564,000
1,625,000 Tonon Luxembourg SA, 10.5%, 5/14/24 (144A) 1,519,375
-----------------
$ 5,083,375
--------------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 6.9%
1,960,000 Agrokor dd, 8.875%, 2/1/20 (144A) $ 2,136,400
EURO 3,200,000 Agrokor dd, 9.875%, 5/1/19 (144A) 4,375,780
4,450,000 CFG Investment SAC, 9.75%, 7/30/19 (144A) 4,071,750
2,705,000 Chiquita Brands International, Inc., 7.875%,
2/1/21 2,968,738
9,720,000 Corp Pesquera Inca SAC, 9.0%, 2/10/17
(144A) 9,632,520
6,800,000 FAGE Dairy Industry SA, 9.875%, 2/1/20
(144A) 7,199,500
4,690,000 JBS Finance II, Ltd., 8.25%, 1/29/18 (144A) 4,936,225
3,615,000 Marfrig Holding Europe BV, 6.875%, 6/24/19
(144A) 3,669,225
14,948,000 Marfrig Overseas, Ltd., 9.5%, 5/4/20 (144A) 15,788,825
6,300,000 MHP SA, 8.25%, 4/2/20 (144A) 5,513,760
3,755,000 Minerva Luxembourg SA, 12.25%, 2/10/22
(144A) 4,337,025
18,000,000 Minerva Luxembourg SA, 7.75%, 1/31/23
(144A) 18,809,998
6,500,000 Pesquera Exalmar S.A.A., 7.375%, 1/31/20
(144A) 5,720,000
5,340,000 Post Holdings, Inc., 6.0%, 12/15/22 (144A) 5,153,100
1,375,000 Post Holdings, Inc., 6.75%, 12/1/21 (144A) 1,373,281
1,675,000 Post Holdings, Inc., 7.375%, 2/15/22 1,716,875
1,144,000 Wells Enterprises, Inc., 6.75%, 2/1/20 (144A) 1,186,900
-----------------
$ 98,589,902
--------------------------------------------------------------------------------------------------------------
Tobacco -- 0.5%
7,165,000 Alliance One International, Inc., 9.875%,
7/15/21 $ 6,842,575
-----------------
Total Food, Beverage & Tobacco $ 120,086,053
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 2.2%
Health Care Supplies -- 0.7%
5,750,000 ConvaTec Healthcare E SA, 10.5%, 12/15/18
(144A) $ 6,095,000
3,200,000 Immucor, Inc., 11.125%, 8/15/19 3,488,000
-----------------
$ 9,583,000
--------------------------------------------------------------------------------------------------------------
Health Care Services -- 0.1%
833,000 Gentiva Health Services, Inc., 11.5%, 9/1/18 $ 892,351
--------------------------------------------------------------------------------------------------------------
Health Care Facilities -- 1.1%
2,555,000 Amsurg Corp., 5.625%, 7/15/22 (144A) $ 2,647,299
6,165,000 CHS, 6.875%, 2/1/22 (144A) 6,642,788
2,400,000 Kindred Healthcare, Inc., 6.375%, 4/15/22
(144A) 2,364,000
4,300,000 LifePoint Hospitals, Inc., 5.5%, 12/1/21 4,504,250
-----------------
$ 16,158,337
--------------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.3%
4,620,000 WellCare Health Plans, Inc., 5.75%, 11/15/20 $ 4,757,676
-----------------
Total Health Care Equipment & Services $ 31,391,364
--------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 1.5%
Biotechnology -- 0.6%
9,652,000 Lantheus Medical Imaging, Inc., 9.75%,
5/15/17 $ 9,097,010
--------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.9%
6,165,000 Endo Finance LLC & Endo Finco, Inc., 5.375%,
1/15/23 (144A) $ 6,026,288
1,740,000 Grifols Worldwide Operations, Ltd., 5.25%,
4/1/22 (144A) 1,783,500
4,755,000 JLL, 7.5%, 2/1/22 (144A) 4,837,262
-----------------
$ 12,647,050
-----------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 21,744,060
--------------------------------------------------------------------------------------------------------------
BANKS -- 4.5%
Diversified Banks -- 3.2%
3,485,000 9.25 Access Bank Plc, Floating Rate Note, 6/24/21
(144A) $ 3,502,425
TRY 4,500,000 Akbank TAS, 7.5%, 2/5/18 (144A) 1,866,461
6,875,000 9.75 Banco de Credito del Peru Panama, Floating
Rate Note, 11/6/69 (144A) 8,339,375
5,250,000 Banco de Galicia y Buenos Aires SA, 8.75%,
5/4/18 (144A) 5,118,750
820,000 9.75 Banco Macro SA, Floating Rate Note, 12/18/36 746,200
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 33
Schedule of Investments | 10/31/14 (continued)
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Diversified Banks -- (continued)
2,000,000 Banco Nacional de Costa Rica, 6.25%,
11/1/23 (144A) $ 2,044,800
2,400,000 6.38 Banco Santander SA, Floating Rate Note
(Perpetual) 2,358,600
2,050,000 6.50 Bank of America Corp., Floating Rate Note,
10/23/49 2,106,375
3,900,000 6.25 Bank of America Corp., Floating Rate Note,
9/29/49 3,895,125
1,250,000 BBVA Bancomer SA Texas, 6.75%, 9/30/22
(144A) 1,415,625
4,750,000 CorpGroup Banking SA, 6.75%, 3/15/23
(144A) 4,741,075
INR 42,350,000 Inter-American Development Bank, 6.0%,
9/5/17 695,959
IDR 5,140,000,000 Inter-American Development Bank, 7.25%,
7/17/17 422,747
5,550,000 Russian Agricultural Bank OJSC Via RSHB
Capital SA, 8.5%, 10/16/23 (144A) 5,258,625
1,500,000 Turkiye Is Bankasi, 6.0%, 10/24/22 (144A) 1,494,375
1,800,000 VTB Bank OJSC Via VTB Capital SA, 6.95%,
10/17/22 (144A) 1,713,600
-----------------
$ 45,720,117
--------------------------------------------------------------------------------------------------------------
Regional Banks -- 1.0%
13,430,000 6.75 The PNC Financial Services Group, Inc., Floating
Rate Note (Perpetual) $ 14,658,845
--------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.3%
4,000,000 Alfa Bank OJSC Via Alfa Bond Issuance Plc,
7.5%, 9/26/19 (144A) $ 3,955,000
-----------------
Total Banks $ 64,333,962
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.1%
Diversified Banks -- 0.1%
2,150,000 5.90 Citigroup, Inc., Floating Rate Note (Perpetual) $ 2,139,250
--------------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.4%
EURO 3,285,000 Boing Group Financing Plc, 6.625%, 7/15/19
(144A) $ 3,868,521
INR 52,600,000 European Bank for Reconstruction &
Development, 6.0%, 3/3/16 859,949
INR 43,400,000 European Bank for Reconstruction &
Development, 7.65%, 2/18/15 706,287
-----------------
$ 5,434,757
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Specialized Finance -- 1.8%
2,450,000 AAF Holdings LLC, 12.0%, 7/1/19 (144A)
(12.0% cash, 0.0% PIK) (PIK) $ 2,450,000
3,045,000 Cantor Fitzgerald LP, 7.875%, 10/15/19 (144A) 3,355,834
EURO 3,695,000 EC Finance Plc, 5.125%, 7/15/21 (144A) 4,674,299
8,870,000 Nationstar Mortgage LLC, 6.5%, 6/1/22 8,249,100
3,000,000 Nationstar Mortgage LLC, 6.5%, 7/1/21 2,790,000
4,000,000 Unifin Financiera SAPI de CV SOFOM ENR,
6.25%, 7/22/19 (144A) 3,910,000
-----------------
$ 25,429,233
--------------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.9%
INR 240,670,000 International Finance Corp., 8.25%, 6/10/21 $ 4,319,663
9,395,000 Tarjeta Naranja SA, 9.0%, 1/28/17 (144A) 9,314,737
-----------------
$ 13,634,400
--------------------------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.4%
4,800,000 JBS Investment Management, Ltd., 7.25%,
4/3/24 $ 5,100,000
--------------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.5%
5,650,000 UBS AG, 7.625%, 8/17/22 $ 6,667,881
-----------------
Total Diversified Financials $ 58,405,521
--------------------------------------------------------------------------------------------------------------
INSURANCE -- 6.7%
Insurance Brokers -- 0.8%
GBP 4,840,000 Towergate Finance Plc, 10.5%, 2/15/19
(144A) $ 5,030,769
GBP 1,200,000 6.05 Towergate Finance Plc, Floating Rate Note,
2/15/18 (144A) 1,592,704
4,900,000 USI, Inc. New York, 7.75%, 1/15/21 (144A) 4,961,250
-----------------
$ 11,584,723
--------------------------------------------------------------------------------------------------------------
Reinsurance -- 5.9%
250,000 6.35 Alamo Re, Ltd., Floating Rate Note, 6/7/17
(Cat Bond) (144A) $ 262,250
5,300,000 0.00 Altair Re, Floating Rate Note, 6/30/16
(Cat Bond) 5,695,380
1,900,000 6.38 Aquarius + Investments Plc for Swiss
Reinsurance Co., Ltd., Floating Rate Note,
9/1/24 1,980,750
1,450,000 0.00 Arlington Segregated Account (Kane SAC Ltd.),
Variable Rate Notes, 8/1/15 1,511,190
450,000 8.11 Atlas Reinsurance VII, Ltd., Floating Rate Note,
1/7/16 (Cat Bond) (144A) 467,055
475,000 4.27 Blue Danube II, Ltd., Floating Rate Note,
5/23/16 (Cat Bond) (144A) 483,882
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 35
Schedule of Investments | 10/31/14 (continued)
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
250,000 6.01 Blue Danube, Ltd., Floating Rate Note,
4/10/15 (Cat Bond) (144A) $ 253,325
1,925,000 5.28 Caelus Re, Ltd., Floating Rate Note, 3/7/16
(Cat Bond) (144A) 1,974,472
814,976 0.00 Clarendon Segregated Account (Kane SAC
Ltd.), Variable Rate Notes, 7/14/15 784,333
1,250,000 17.98 Combine Re, Ltd., Floating Rate Note, 1/7/15
(Cat Bond) (144A) 1,282,375
1,500,000 10.26 Compass Re, Ltd., Floating Rate Note, 1/8/15
(Cat Bond) (144A) 1,519,200
1,000,000 11.26 Compass Re, Ltd., Floating Rate Note, 1/8/15
(Cat Bond) (144A) 1,015,000
3,260,000 0.00 Dartmouth Segregated Account (Kane SAC
Ltd.), Variable Rate Notes, 12/31/14 3,227,400
400,000 9.02 East Lane Re V, Ltd., Floating Rate Note,
3/16/16 (Cat Bond) (144A) 430,000
750,000 6.66 East Lane Re, Ltd., Floating Rate Note,
3/13/15 (Cat Bond) (144A) 761,550
500,000 7.27 Embarcadero Reinsurance, Ltd., Floating Rate
Note, 2/13/15 (Cat Bond) (144A) 501,750
1,950,000 5.03 Foundation Re III, Ltd., Floating Rate Note,
2/25/15 (Cat Bond) (144A) 1,967,940
1,500,000 7.40 Galileo Re, Ltd., Floating Rate Note, 1/9/19
(Cat Bond) (144A) 1,566,000
2,400,000 0.00 Gloucester Segregated Account (Kane SAC
Ltd.), Variable Rate Notes, 6/12/15 2,225,280
250,000 0.00 Golden State Re II, Ltd., Floating Rate Note,
1/8/19 (Cat Bond) (144A) 249,800
1,925,000 13.51 Ibis Re II, Ltd., Floating Rate Note, 2/5/15
(Cat Bond) (144A) 1,980,825
1,250,000 8.36 Ibis Re II, Ltd., Floating Rate Note, 2/5/15
(Cat Bond) (144A) 1,269,875
2,000,000 4.76 Kilimanjaro Re, Ltd., Floating Rate Note,
4/30/18 (Cat Bond) (144A) 2,067,000
350,000 4.51 Kilimanjaro Re, Ltd., Floating Rate Note,
4/30/18 (Cat Bond) (144A) 355,040
1,450,000 3.99 Longpoint Re, Ltd. III, Floating Rate Note,
5/18/16 (Cat Bond) (144A) 1,486,830
33,500 0.00 Lorenzo Re, Ltd., (Cat Bond) (Perpetual) (c)* 3,713,475
2,150,000 12.01 Mystic Re, Ltd., Floating Rate Note, 3/12/15
(Cat Bond) (144A) 2,219,445
800,000 8.53 Mythen Re, Ltd., Series 2012-2 Class A,
Floating Rate Note, 1/5/17 (Cat Bond) (144A) 858,240
903,800 0.00 PI-1, Series E - 2014 (Kane SAC Ltd.), Variable
Rate Notes, 6/12/15 925,220
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
1,806,000 0.00 PI-2, Series B - 2014 (Kane SAC Ltd.), Variable
Rate Notes, 7/18/16 $ 1,917,430
1,006,000 0.00 PI-2, Series D - 2014 (Kane SAC Ltd.), Variable
Rate Notes, 7/30/16 1,073,804
2,000,000 7.50 Queen Street IV Capital, Ltd., Floating Rate
Note, 4/9/15 (Cat Bond) (144A) 2,035,400
900,000 8.51 Queen Street V Re, Ltd., Floating Rate Note,
4/9/15 (Cat Bond) (144A) 919,350
300,000 10.36 Queen Street VI Re, Ltd., Floating Rate Note,
4/9/15 (Cat Bond) (144A) 306,000
750,000 8.61 Queen Street VII Re, Ltd., Floating Rate Note,
4/8/16 (Cat Bond) (144A) 780,225
750,000 9.01 Residential Reinsurance 2011, Ltd., Floating
Rate Note, 6/6/15 (Cat Bond) (144A) 779,850
3,450,000 12.01 Residential Reinsurance 2011, Ltd., Floating
Rate Note, 6/6/15 (Cat Bond) (144A) 3,636,645
950,000 19.01 Residential Reinsurance 2012, Ltd., Floating
Rate Note, 12/6/16 (Cat Bond) (144A) 1,090,695
1,800,000 12.76 Residential Reinsurance 2012, Ltd., Floating
Rate Note, 12/6/16 (Cat Bond) (144A) 1,991,340
450,000 5.76 Residential Reinsurance 2012, Ltd., Floating
Rate Note, 12/6/16 (Cat Bond) (144A) 472,365
1,100,000 10.02 Residential Reinsurance 2012, Ltd., Floating
Rate Note, 6/6/16 (Cat Bond) (144A) 1,217,590
550,000 8.02 Residential Reinsurance 2012, Ltd., Floating
Rate Note, 6/6/16 (Cat Bond) (144A) 596,035
1,600,000 22.01 Residential Reinsurance 2012, Ltd., Floating
Rate Note, 6/6/16 (Cat Bond) (144A) 1,893,920
750,000 9.26 Residential Reinsurance 2013, Ltd., Floating
Rate Note, 6/6/17 (Cat Bond) (144A) 805,350
1,600,000 3.01 Sanders Re, Ltd., Floating Rate Note,
5/25/18 (Cat Bond) 1,622,240
1,600,000 4.01 Sanders Re, Ltd., Floating Rate Note, 5/5/17
(Cat Bond) (144A) 1,632,800
13,799 Sector Re V, Ltd., 12/1/17 (Cat Bond)
(144A) (c) 27,370
2,350,000 Sector Re V, Ltd., 12/1/17 (Cat Bond)
(144A) (c) 2,756,315
3,533 Sector Re V, Ltd., 3/1/18 (Cat Bond)
(144A) (c) 112,132
1,000,000 Sector Re V, Ltd., 3/30/19 (Cat Bond)
(144A) (c) 1,110,200
2,000,000 Silverton Re, Ltd., 9/16/16 (Cat Bond)
(144A) (c) 2,420,800
8,535,000 7.51 Sirius International Group, Ltd., Floating Rate
Note (Perpetual) (144A) 8,961,502
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 37
Schedule of Investments | 10/31/14 (continued)
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Reinsurance -- (continued)
875,000 11.01 Successor X, Ltd., Floating Rate Note, 1/27/15
(Cat Bond) (144A) $ 883,225
375,000 11.28 Successor X, Ltd., Floating Rate Note,
11/10/15 (Cat Bond) (144A) 392,475
950,000 16.28 Successor X, Ltd., Floating Rate Note,
11/10/15 (Cat Bond) (144A) 1,001,775
900,000 8.51 Tar Heel Re, Ltd., Floating Rate Note, 5/9/16
(Cat Bond) (144A) 957,510
250,000 6.26 Tradewynd Re, Ltd., Floating Rate Note, 1/8/15
(Cat Bond) (144A) 251,200
-----------------
$ 84,680,425
-----------------
Total Insurance $ 96,265,148
--------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.1%
Diversified REITs -- 0.2%
2,565,000 Trust F, 5.25%, 12/15/24 (144A) $ 2,706,075
--------------------------------------------------------------------------------------------------------------
Diversified Real Estate Activities -- 0.0%+
995,000 Alam Synergy Pte, Ltd., 9.0%, 1/29/19 (144A) $ 1,079,575
--------------------------------------------------------------------------------------------------------------
Real Estate Operating Companies -- 0.9%
5,750,000 Alto Palermo SA, 7.875%, 5/11/17 (144A) $ 5,525,750
7,405,000 IRSA Inversiones y Representaciones SA, 8.5%,
2/2/17 (144A) 7,330,950
-----------------
$ 12,856,700
-----------------
Total Real Estate $ 16,642,350
--------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.0%
Internet Software & Services -- 0.6%
2,910,000 Equinix, Inc., 5.375%, 4/1/23 $ 3,000,938
700,000 IAC, 4.875%, 11/30/18 721,000
4,430,000 VeriSign, Inc., 4.625%, 5/1/23 4,413,388
-----------------
$ 8,135,326
--------------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.4%
2,100,000 Audatex North America, Inc., 6.0%, 6/15/21
(144A) $ 2,220,750
2,440,000 Cardtronics, Inc., 5.125%, 8/1/22 (144A) 2,427,800
1,700,000 NeuStar, Inc., 4.5%, 1/15/23 1,470,500
-----------------
$ 6,119,050
--------------------------------------------------------------------------------------------------------------
Systems Software -- 0.8%
11,940,241 Pegasus Solutions, Inc., 13.0%, 11/28/14
(144A) $ 11,223,827
--------------------------------------------------------------------------------------------------------------
Home Entertainment Software -- 0.2%
3,225,000 Activision Blizzard, Inc., 6.125%, 9/15/23
(144A) $ 3,491,062
-----------------
Total Software & Services $ 28,969,265
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.6%
Communications Equipment -- 0.1%
1,475,000 CommScope, Inc., 5.0%, 6/15/21 (144A) $ 1,471,312
--------------------------------------------------------------------------------------------------------------
Technology Hardware, Storage &
Peripherals -- 0.8%
3,900,000 Seagate HDD Cayman, 4.75%, 1/1/25 (144A) $ 3,943,875
6,925,000 Seagate HDD Cayman, 4.75%, 6/1/23 7,146,808
-----------------
$ 11,090,683
--------------------------------------------------------------------------------------------------------------
Electronic Equipment Manufacturers -- 0.5%
6,150,000 Viasystems, Inc., 7.875%, 5/1/19 (144A) $ 6,519,000
--------------------------------------------------------------------------------------------------------------
Electronic Components -- 0.2%
1,000,000 Belden, Inc., 5.25%, 7/15/24 (144A) $ 982,500
EURO 1,800,000 Belden, Inc., 5.5%, 4/15/23 (144A) 2,333,966
-----------------
$ 3,316,466
-----------------
Total Technology Hardware & Equipment $ 22,397,461
--------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT -- 0.7%
Semiconductor Equipment -- 0.3%
4,025,000 Entegris, Inc., 6.0%, 4/1/22 (144A) $ 4,095,438
--------------------------------------------------------------------------------------------------------------
Semiconductors -- 0.4%
5,070,000 Advanced Micro Devices, Inc., 6.75%, 3/1/19 $ 4,791,150
1,355,000 Advanced Micro Devices, Inc., 7.0%, 7/1/24 1,189,012
CNY 14,000,000 LDK Solar Co., Ltd., 10.0%, 2/28/14 (d) 297,026
-----------------
$ 6,277,188
-----------------
Total Semiconductors &
Semiconductor Equipment $ 10,372,626
--------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 6.4%
Integrated Telecommunication Services -- 3.9%
4,790,000 Cincinnati Bell, Inc., 8.375%, 10/15/20 $ 5,137,275
4,015,000 Cincinnati Bell, Inc., 8.75%, 3/15/18 4,155,525
COP 1,626,000,000 Empresa de Telecomunicaciones de Bogota,
7.0%, 1/17/23 (144A) 744,477
5,200,000 Frontier Communications Corp., 7.125%,
1/15/23 5,538,000
2,940,000 Frontier Communications Corp., 8.5%, 4/15/20 3,388,350
10,345,000 Frontier Communications Corp., 8.75%,
4/15/22 11,948,475
500,000 GCI, Inc., 6.75%, 6/1/21 497,500
EURO 1,600,000 Telenet Finance V Luxembourg SCA, 6.25%,
8/15/22 (144A) 2,169,850
6,285,000 Windstream Corp., 7.5%, 6/1/22 6,677,812
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 39
Schedule of Investments | 10/31/14 (continued)
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Integrated Telecommunication
Services -- (continued)
2,300,000 Windstream Corp., 7.75%, 10/1/21 $ 2,461,000
6,765,000 Windstream Corp., 7.75%, 10/15/20 7,204,725
5,700,000 Windstream Corp., 8.125%, 9/1/18 5,942,250
-----------------
$ 55,865,239
--------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 2.5%
2,800,000 Altice Financing SA, 6.5%, 1/15/22 (144A) $ 2,877,000
600,000 Altice Finco SA, 8.125%, 1/15/24 (144A) 631,500
3,600,000 Digicel Group, Ltd., 8.25%, 9/30/20 (144A) 3,762,000
4,300,000 Intelsat Jackson Holdings SA, 6.625%,
12/15/22 4,525,750
2,880,000 T-Mobile USA, Inc., 6.542%, 4/28/20 3,038,400
1,940,000 T-Mobile USA, Inc., 6.633%, 4/28/21 2,044,275
1,300,000 T-Mobile USA, Inc., 6.731%, 4/28/22 1,374,750
2,750,000 Unison Ground Lease Funding LLC, 5.78%,
3/16/43 (144A) 2,778,838
7,800,000 Vimpel Communications Via VIP Finance Ireland,
Ltd. OJSC, 7.748%, 2/2/21 (144A) 7,936,500
4,875,000 VimpelCom Holdings BV, 7.5043%, 3/1/22
(144A) 4,862,812
RUB 132,900,000 VimpelCom Holdings BV, 9.0%, 2/13/18
(144A) 2,846,754
-----------------
$ 36,678,579
-----------------
Total Telecommunication Services $ 92,543,818
--------------------------------------------------------------------------------------------------------------
UTILITIES -- 2.8%
Electric Utilities -- 1.0%
3,231,000 Cia de Transporte de Energia Electrica en Alta
Tension Transener SA, 9.75%, 8/15/21 (144A) $ 2,452,329
7,150,000 5.25 Electricite de France SA, Floating Rate Note
(Perpetual) (144A) 7,418,125
811,000 Empresa Distribuidora Y Comercializadora Norte,
9.75%, 10/25/22 (144A) 567,700
2,995,000 8.13 Enel S.p.A., Floating Rate Note, 9/24/73
(144A) 3,496,662
80,792 FPL Energy National Wind Portfolio LLC,
6.125%, 3/25/19 (144A) 79,634
225,163 FPL Energy Wind Funding LLC, 6.876%,
6/27/17 (144A) 222,630
-----------------
$ 14,237,080
--------------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.6%
2,437,000 Star Gas Partners LP, 8.875%, 12/1/17 $ 2,543,619
5,713,202 Transportadora de Gas del Sur SA, 9.625%,
5/14/20 (144A) 5,713,202
-----------------
$ 8,256,821
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.4%
925,000 DTEK Finance Plc, 7.875%, 4/4/18 (144A) $ 587,375
5,422,914 Ormat Funding Corp., 8.25%, 12/30/20 5,341,570
-----------------
$ 5,928,945
--------------------------------------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 0.8%
1,350,000 AES Corp. Virginia, 5.5%, 3/15/24 $ 1,380,375
940,000 Instituto Costarricense de Electricidad, 6.95%,
11/10/21 (144A) 994,050
1,500,000 InterGen NV, 7.0%, 6/30/23 (144A) 1,436,250
66,975 Juniper Generation LLC, 6.79%, 12/31/14
(144A) 66,580
7,100,000 NRG Energy, Inc., 6.25%, 5/1/24 (144A) 7,330,750
-----------------
$ 11,208,005
-----------------
Total Utilities $ 39,630,851
--------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $1,152,230,421) $ 1,107,065,275
--------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 0.9%
6,000,000 0.09 U.S. Treasury Note, Floating Rate Note, 4/30/16 $ 6,001,722
7,600,000 0.09 U.S. Treasury Note, Floating Rate Note, 7/31/16 7,602,683
--------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(Cost $13,604,829) $ 13,604,405
--------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 5.2%
5,250,000 Brazil Minas SPE via State of Minas Gerais,
5.333%, 2/16/28 (144A) $ 5,276,250
6,200,000 City of Buenos Aires Argentina, 12.5%,
4/6/15 (144A) 6,262,000
2,510,000 Ecuador Government International Bond,
7.95%, 6/20/24 (144A) 2,629,225
IDR 53,000,000,000 Indonesia Treasury Bond, 7.0%, 5/15/22 4,133,430
IDR 40,352,000,000 Indonesia Treasury Bond, 8.25%, 6/15/32 3,230,597
IDR 11,650,000,000 Inter-American Development Bank, 4.5%,
2/4/16 928,960
INR 241,840,000 International Finance Corp., 7.75%, 12/3/16 4,017,573
2,175,000 Kenya Government International Bond, 5.875%,
6/24/19 (144A) 2,253,844
4,355,000 Kenya Government International Bond, 6.875%,
6/24/24 (144A) 4,638,075
MXN 1,800,000 Mexican Bonos, 7.5%, 6/3/27 147,637
MXN 228,884,480 Mexican Udibonos, 2.0%, 6/9/22 16,707,159
MXN 10,663,936 Mexican Udibonos, 3.5%, 12/14/17 854,746
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 41
Schedule of Investments | 10/31/14 (continued)
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
Foreign Government Bonds -- (continued)
3,176,640 Province of Salta Argentina, 9.5%, 3/16/22
(144A) $ 3,097,224
3,025,000 Provincia de Buenos Aires Argentina, 10.875%,
1/26/21 (144A) 2,730,062
1,125,000 Provincia de Buenos Aires Argentina, 11.75%,
10/5/15 (144A) 1,071,562
2,054,000 Provincia de Neuquen Argentina, 7.875%,
4/26/21 (144A) 2,023,190
2,335,000 Republic of Ghana, 7.875%, 8/7/23 (144A) 2,350,178
RON 24,770,000 Romania Government Bond, 5.85%, 4/26/23 8,108,259
RON 1,220,000 Romania Government Bond, 5.95%, 6/11/21 395,315
2,000,000 Rwanda International Government Bond,
6.625%, 5/2/23 (144A) 2,070,400
575,000 Ukraine Government International Bond, 6.75%,
11/14/17 (144A) 501,688
1,650,000 Ukraine Government International Bond, 7.8%,
11/28/22 (144A) 1,427,580
--------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $81,176,058) $ 74,854,954
--------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 0.1%
MUNICIPAL GENERAL -- 0.1%
8,875,000 0.00 Non-Profit Preferred Funding Trust I, Floating
Rate Note, 9/15/37 (144A) $ 1,063,758
--------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $8,859,062) $ 1,063,758
--------------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 3.6%**
ENERGY -- 0.3%
Oil & Gas Equipment & Services -- 0.1%
925,000 5.75 FTS International, Inc., Initial Term Loan.
4/16/21 $ 912,281
--------------------------------------------------------------------------------------------------------------
Coal & Consumable Fuels -- 0.2%
4,700,000 18.15 Bumi Resources Tbk PT, Term Loan, 8/15/13 $ 2,373,500
792,928 6.04 Long Haul Holdings, Ltd., Facility B Loan,
1/15/15 (d) 317,171
-----------------
$ 2,690,671
-----------------
Total Energy $ 3,602,952
--------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.0%+
Metal & Glass Containers -- 0.0%+
539,770 Pro Mach Group, Inc., Dollar Term Loan,
10/22/21 (f) $ 541,119
-----------------
Total Materials $ 541,119
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.4%
Aerospace & Defense -- 0.4%
3,777,207 5.00 DAE Aviation Holdings, Inc., Replacement
Tranche B-1 Loan, 11/2/18 $ 3,783,119
1,712,338 5.00 Standard Aero, Ltd., Replacement Tranche B-2
Loan, 11/2/18 1,713,408
-----------------
$ 5,496,527
-----------------
Total Capital Goods $ 5,496,527
--------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.2%
Diversified Support Services -- 0.0%+
502,144 6.73 IAP Worldwide Services, Inc., Term Loan,
7/18/19 $ 445,652
--------------------------------------------------------------------------------------------------------------
Security & Alarm Services -- 0.2%
2,257,374 4.25 Monitronics International, Inc., Term B Loan,
3/23/18 $ 2,252,437
-----------------
Total Commercial Services & Supplies $ 2,698,089
--------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
Air Freight & Logistics -- 0.1%
997,375 6.75 Ozburn-Hessey Holding Co LLC, Term Loan,
5/23/19 $ 994,258
-----------------
Total Transportation $ 994,258
--------------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.2%
Auto Parts & Equipment -- 0.2%
3,190 3.75 Allison Transmission, Inc., Term B-3 Loan,
8/23/19 $ 3,170
3,104,018 4.25 TI Group Automotive Systems LLC, Term Loan
Facility, 7/1/21 3,080,738
-----------------
$ 3,083,908
-----------------
Total Automobiles & Components $ 3,083,908
--------------------------------------------------------------------------------------------------------------
MEDIA -- 0.2%
Advertising -- 0.1%
2,182,025 6.75 Affinion Group, Inc., Tranche B Term Loan,
4/30/18 $ 2,121,109
--------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.1%
1,346,490 4.75 WideOpenWest Finance LLC, Term B Loan,
4/1/19 $ 1,347,192
-----------------
Total Media $ 3,468,301
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 43
Schedule of Investments | 10/31/14 (continued)
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
RETAILING -- 0.4%
Automotive Retail -- 0.4%
5,985,625 5.75 CWGS Group LLC, Term Loan, 2/20/20 $ 6,008,071
-----------------
Total Retailing $ 6,008,071
--------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.1%
Food Distributors -- 0.1%
1,032,371 5.75 AdvancePierre Foods, Inc., Term Loan (First
Lien), 7/10/17 $ 1,028,500
-----------------
Total Food & Staples Retailing $ 1,028,500
--------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.9%
Health Care Services -- 0.8%
1,036,879 4.25 Alliance HealthCare Services, Inc., Initial Term
Loan, 6/3/19 $ 1,024,566
1,288,084 6.75 Ardent Medical Services, Inc., 1st Lien Term
Loan, 5/2/18 1,292,914
417,670 6.50 BioScrip, Inc., Term Loan,
7/31/20 420,106
696,116 6.50 BioScrip, Inc., Initial Term B Loan, 7/31/20 700,176
1,026,951 6.50 Gentiva Health Services, Inc., Initial Term B
Loan, 10/10/19 1,030,161
2,537,250 4.75 National Mentor Holdings, Inc., Tranche B Term
Loan, 1/31/21 2,521,392
1,485,028 5.25 National Surgical Hospitals, Inc., Tranche B-2
Term Loan, 7/11/19 1,488,741
1,862,400 7.00 Surgery Center Holdings, Inc., Term Loan (First
Lien), 4/11/19 1,865,901
1,071,154 7.25 Virtual Radiologic Corp., Term Loan A,
12/22/16 822,111
-----------------
$ 11,166,068
--------------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.1%
829,159 9.75 MMM Holdings, Inc., Term Loan, 10/9/17 $ 822,940
602,815 9.75 MSO of Puerto Rico, Inc., MSO Term Loan,
12/12/17 596,787
-----------------
$ 1,419,727
-----------------
Total Health Care Equipment & Services $ 12,585,795
--------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.0%+
Pharmaceuticals -- 0.0%+
486,394 5.00 Generic Drug Holdings, Inc., Closing Date Term
Loan, 8/16/20 $ 487,610
-----------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 487,610
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
44 Pioneer Global High Yield Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
--------------------------------------------------------------------------------------------------------------
INSURANCE -- 0.1%
Multi-line Insurance -- 0.1%
1,851,242 4.25 Alliant Holdings I, Inc., Initial Term Loan,
12/20/19 $ 1,825,787
-----------------
Total Insurance $ 1,825,787
--------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.6%
Application Software -- 0.6%
4,373,318 8.50 Expert Global Solutions, Inc., Term B Advance
(First Lien), 4/3/18 $ 4,365,665
3,500,000 9.75 Vertafore, Inc., Term Loan (Second Lien),
10/29/17 3,528,438
-----------------
$ 7,894,103
-----------------
Total Software & Services $ 7,894,103
--------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.1%
Electronic Components -- 0.1%
2,177,194 5.00 Scitor Corp., Term Loan, 2/15/17 $ 2,156,728
-----------------
Total Technology Hardware & Equipment $ 2,156,728
--------------------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTERESTS
(Cost $54,381,227) $ 51,871,748
--------------------------------------------------------------------------------------------------------------
RIGHTS / WARRANTS -- 0.0%+
AUTOMOBILES & COMPONENTS -- 0.0%+
Auto Parts & Equipment -- 0.0%+
990 Lear Corp., 11/9/14 $ 183,388
-----------------
Total Automobiles & Components $ 183,388
--------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.0%+
Distillers & Vintners -- 0.0%+
5,578,091 Belvedere SA, 12/23/16 $ 349,412
-----------------
Total Food, Beverage & Tobacco $ 349,412
--------------------------------------------------------------------------------------------------------------
TOTAL RIGHTS / WARRANTS
(Cost $356,740) $ 532,800
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 97.2%
(Cost $1,462,753,203)(a)(g) $ 1,393,529,031
--------------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 2.8% $ 40,685,764
--------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0%+ $ 1,434,214,795
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------------------------------------
WRITTEN CALL OPTION -- 0.0%+
(4,923,449) Call USD/Put TRY, 2.95, 1/12/15 $ (87)
--------------------------------------------------------------------------------------------------------------
TOTAL WRITTEN CALL OPTION
(Premium received ($81,114)) $ (87)
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 45
Schedule of Investments | 10/31/14 (continued)
* Non-income producing security.
+ Amount rounds to less than 0.1%.
REIT Real Estate Investment Trust.
(G.D.R.) Global Depositary Receipts.
(Perpetual) Security with no stated maturity date.
(Cat Bond) Catastrophe bond is a high-yield debt instrument that is usually
insurance linked and meant to raise money in case of a
catastrophe.
(Step) Bond issued with an initial coupon rate which converts to a higher
rate at a later date.
** Senior floating rate loan interests in which the Fund invests
generally pay interest at rates that are periodically redetermined
by reference to a base lending rate plus a premium. These base
lending rates are generally (i) the lending rate offered by one or
more major European banks, such as LIBOR (London InterBank Offered
Rate), (ii) the prime rate offered by one or more major United
States banks, (iii) the rate of a certificate of deposit or (iv)
other base lending rates used by commercial lenders. The rate
shown is the coupon rate at period end.
(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, 2014, the value of these securities
amounted to $776,658,098 or 54.2% of total net assets.
(PIK) Represents a pay-in-kind security.
(a) At October 31, 2014, the net unrealized appreciation on
investments based on cost for federal income tax purposes of
$1,466,678,658 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 51,968,674
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (125,118,301)
--------------
Net unrealized depreciation $ (73,149,627)
==============
(b) Debt obligation with a variable interest rate. Rate shown is rate
at end of period.
(c) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(d) Security is in default and is non-income producing.
(e) Security is valued using fair value methods (other than prices
supplied by independent pricing services or broker dealers). See
Notes To Financial Statements -- Note 1A.
(f) Rate to be determined (TBD).
The accompanying notes are an integral part of these financial statements.
46 Pioneer Global High Yield Fund | Annual Report | 10/31/14
(g) Distributions of investments by country of issue (excluding
temporary cash investments) as a percentage of total investment
in securities, is as follows:
Argentina 4.1%
Austria 1.2
Bermuda 3.2
Canada 2.0
Cayman Islands 4.5
Indonesia 1.5
Ireland 1.8
Luxembourg 6.3
Mexico 3.8
Netherlands 2.1
Peru 1.4
United Kingdom 3.3
United States 52.8
Other (individually less than 1%) 12.0
-----
100.0%
=====
NOTE: Principal amounts are denominated in U.S. Dollars unless
otherwise noted:
BRL Brazilian Real
CAD Canadian Dollar
CNY New Chinese Yuan
COP Columbian Peso
EURO Euro
GBP British Pound Sterling
IDR Indonesian Rupiah
INR Indian Rupee
MXN Mexican Peso
NOK Norwegian Krone
RON Romanian Leu
RUB Russian Ruble
TRY Turkish Lira
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2014 aggregated $494,343,559 and $547,580,562,
respectively.
Various inputs are used in determining the value of the Portfolio's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 -- quoted prices in active markets for identical securities.
Level 2 -- other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speeds,
credit risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
as Level 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 47
Schedule of Investments | 10/31/14 (continued)
The following is a summary of the inputs used as of October 31, 2014, in valuing
the Portfolio's investments:
---------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------
Convertible Corporate Bonds
Materials
Diversified Metals & Mining $ -- $ -- $2,911,100 $2,911,100
Steel -- -- 136,636 136,636
All Other Convertible
Corporate Bonds 61,846,323 61,846,323
Preferred Stocks -- -- -- --
Transportation
Air Freight & Logistics -- 3,171,057 -- 3,171,057
Consumer Services
Hotels, Resorts &
Cruise Lines -- -- -- --
Diversified Financials
Consumer Finance -- 3,120,150 -- 3,120,150
Insurance
Reinsurance -- -- 4,260,476 4,260,476
All Other Preferred Stocks 22,489,492 -- -- 22,489,492
Convertible Preferred Stocks -- 1,346,869 -- 1,346,869
Common Stock
Materials
Diversified Metals & Mining 3,039,298 -- -- 3,039,298
Transportation
Marine 936,286 -- -- 936,286
Banks
Diversified Banks 15,645 -- -- 15,645
Consumer Services
Hotels, Resorts & Cruise Lines -- -- -- --
Diversified Financials
Specialized Finance -- -- 700,002 700,002
All Other Common Stocks -- 2,458,221 -- 2,458,221
Asset Backed Securities -- 17,195,255 -- 17,195,255
Collateralized Mortgage
Obligations -- 20,909,281 -- 20,909,281
Corporate Bonds
Materials
Steel -- -- 297,033 297,033
Insurance
Reinsurance -- -- 27,472,959 27,472,959
Semiconductors &
Semiconductor Equipment
Semiconductors -- -- 297,026 297,026
All Other Corporate Bonds 1,078,998,257 1,078,998,257
U.S. Government
Agency Obligations -- 13,604,405 -- 13,604,405
Foreign Government Bonds -- 74,854,954 -- 74,854,954
The accompanying notes are an integral part of these financial statements.
48 Pioneer Global High Yield Fund | Annual Report | 10/31/14
---------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------------
Municipal Bonds $ -- $ 1,063,758 $ -- $ 1,063,758
Senior Floating Rate
Loan Interests -- 51,871,748 -- 51,871,748
Rights/Warrants 532,800 -- -- 532,800
---------------------------------------------------------------------------------------------------
Total $ 27,013,521 $1,330,440,278 $ 36,075,232 $1,393,529,031
===================================================================================================
Other Financial Instruments
Unrealized appreciation on
forward foreign currency
contracts $ -- $ 2,470,018 $ -- $ 2,470,018
Unrealized depreciation on
forward foreign
currency contracts (1,702,050) (1,702,050)
Unrealized appreciation on
written options -- 81,027 -- 81,027
---------------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ -- $ 848,995 $ -- $ 848,995
===================================================================================================
The following is a reconciliation of assets valued using significant observable
inputs (Level 3):
--------------------------------------------------------------------------------------------------------
Convertible
Common Corporate Preferred Corporate Municipal
Stocks Bonds Stocks Bonds Bonds Total
--------------------------------------------------------------------------------------------------------
Balance as
of 10/31/13 $ 5,156,767 $ -- $ 8,455,090 $ 6,589,185 $ 2,662,500 $ 22,863,542
Realized
gain (loss)(1) (6,292,479) -- 361,498 17,332 -- (5,913,649)
Change in
unrealized
appreciation
(depreciation)(2) 5,615,684 (481,330) (7,616) 2,204,044 -- 7,330,782
Purchases -- 3,529,066 4,070,000 22,400,883 -- 29,999,949
Sales (66,160) -- (3,911,497) (11,565,235) -- (15,542,892)
Transfers in and
out of Level 3
Categories (3,713,810) (4,707,000) 8,420,810 -- --
Transfers in to
Level 3* -- -- -- -- -- --
Transfers out
of Level 3* -- -- -- -- (2,662,500) (2,662,500)
--------------------------------------------------------------------------------------------------------
Balance as
of 10/31/14 $ 700,002 $3,047,736 $ 4,260,476 $ 28,067,018 $ -- $36,075,232
--------------------------------------------------------------------------------------------------------
(1) Realized gain (loss) on these securities is included in the net realized
gain (loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized gain (loss) on investments in the Statement of
Operations.
* Transfers are calculated on the beginning of period values. During the year
ended October 31, 2014, there were no transfers between Levels 1, 2 and 3.
Net change in unrealized appreciation (depreciation) of investments still
held as of 10/31/14 $ 7,330,782
------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 49
Statement of Assets and Liabilities | 10/31/14
ASSETS:
Investment in securities (cost $1,462,753,203) $1,393,529,031
Cash 7,908,626
Foreign currencies, at value (cost $9,735,557) 9,629,963
Receivables --
Investment securities sold 10,164,271
Fund shares sold 2,671,184
Dividends 14,115
Interest 26,013,923
Net unrealized appreciation on forward foreign currency contracts 2,470,018
Other assets 47,988
---------------------------------------------------------------------------------------
Total assets $1,452,449,119
---------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 9,461,511
Fund shares repurchased 5,491,715
Dividends 1,038,407
Written options (premiums received $81,114) 87
Net unrealized depreciation on forward foreign currency contracts 1,702,050
Due to affiliates 383,558
Trustee fees 5,885
Accrued expenses 151,111
---------------------------------------------------------------------------------------
Total liabilities $ 18,234,324
---------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $1,820,779,230
Distributions in excess of net investment income (5,794,105)
Accumulated net realized loss on investments and foreign
currency transactions (312,152,019)
Net unrealized depreciation on investments (69,224,172)
Net unrealized appreciation on written options 81,027
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 524,834
---------------------------------------------------------------------------------------
Total net assets $1,434,214,795
---------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $373,542,613/38,154,275 shares) $ 9.79
Class B (based on $17,166,964/1,751,406 shares) $ 9.80
Class C (based on $354,161,755/36,270,602 shares) $ 9.76
Class Y (based on $682,911,337/70,957,252 shares) $ 9.62
Class Z (based on $6,432,126/638,822 shares) $ 10.07
MAXIMUM OFFERING PRICE:
Class A ($9.79 (divided by) 95.5%) $ 10.25
=======================================================================================
The accompanying notes are an integral part of these financial statements.
50 Pioneer Global High Yield Fund | Annual Report | 10/31/14
Statement of Operations
For the Year Ended 10/31/14
INVESTMENT INCOME:
Interest (net of foreign taxes withheld of ($95,076)) $ 123,232,465
Dividends (net of foreign taxes withheld of $1,010) 1,914,416
-----------------------------------------------------------------------------------------
Total investment income $ 125,146,881
-----------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 10,396,942
Transfer agent fees
Class A 238,236
Class B 18,657
Class C 88,490
Class Y 24,932
Class Z 3,302
Distribution fees
Class A 1,186,601
Class B 216,102
Class C 3,862,677
Shareholder communication expense 1,782,523
Administrative reimbursements 506,172
Custodian fees 152,064
Registration fees 96,088
Professional fees 181,588
Printing expense 53,471
Fees and expenses of nonaffiliated Trustees 67,775
Miscellaneous 193,265
-----------------------------------------------------------------------------------------
Total expenses $ 19,068,885
-----------------------------------------------------------------------------------------
Net investment income $ 106,077,996
-----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
WRITTEN OPTIONS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on:
Investments $ (44,508,931)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (2,902,554) $ (47,411,485)
-----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ (6,551,340)
Written options 81,027
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 1,130,608 $ (5,339,705)
-----------------------------------------------------------------------------------------
Net loss on investments $ (52,751,190)
-----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 53,326,806
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 51
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------
Year Ended
Year Ended 10/31/13
10/31/14 (Consolidated)
-------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 106,077,996 $ 137,829,746
Net realized loss on investments, and foreign
currency transactions (47,411,485) (29,404,113)
Change in net unrealized appreciation (depreciation) on
investments, written options and foreign currency
transactions (5,339,705) 23,577,860
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 53,326,806 $ 132,003,493
-------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.63 and $0.69 per share, respectively) $ (29,832,295) $ (39,075,003)
Class B ($0.54 and $0.60 per share, respectively) (1,182,126) (1,895,090)
Class C ($0.56 and $0.62 per share, respectively) (21,500,514) (27,819,963)
Class Y ($0.65 and $0.71 per share, respectively) (47,729,543) (64,287,065)
Class Z ($0.67 and $0.73 per share, respectively) (543,124) (668,755)
Tax return of capital:
Class A ($0.03 and $0.00 per share, respectively) (1,332,258) --
Class B ($0.03 and $0.00 per share, respectively) (59,960) --
Class C ($0.03 and $0.00 per share, respectively) (1,097,458) --
Class Y ($0.03 and $0.00 per share, respectively) (2,094,367) --
Class Z ($0.03 and $0.00 per share, respectively) (23,348) --
-------------------------------------------------------------------------------------------
Total distributions to shareowners $ (105,394,993) $ (133,745,876)
-------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 354,742,504 $ 569,358,307
Reinvestment of distributions 90,790,119 114,528,755
Cost of shares repurchased (727,085,172) (980,777,449)
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ (281,552,549) $ (296,890,387)
-------------------------------------------------------------------------------------------
Net decrease in net assets $ (333,620,736) $ (298,632,770)
NET ASSETS:
Beginning of year 1,767,835,531 2,066,468,301
-------------------------------------------------------------------------------------------
End of year $1,434,214,795 $1,767,835,531
-------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net
investment income $ (5,794,105) $ (6,409,063)
===========================================================================================
The accompanying notes are an integral part of these financial statements.
52 Pioneer Global High Yield Fund | Annual Report | 10/31/14
----------------------------------------------------------------------------------------
'14 Shares '14 Amount '13 Shares '13 Amount
----------------------------------------------------------------------------------------
Class A
Shares sold 8,067,204 $ 81,377,053 14,731,425 $ 150,646,557
Reinvestment of
distributions 2,764,874 27,820,854 3,367,873 34,353,691
Less shares repurchased (25,172,337) (253,478,131) (25,080,406) (255,425,099)
----------------------------------------------------------------------------------------
Net decrease (14,340,259) $ (144,280,224) (6,981,108) $ (70,424,851)
========================================================================================
Class B
Shares sold or exchanged 14,948 $ 150,417 43,774 $ 446,051
Reinvestment of
distributions 102,969 1,036,710 153,039 1,563,046
Less shares repurchased (915,740) (9,227,142) (1,491,388) (15,249,577)
----------------------------------------------------------------------------------------
Net decrease (797,823) $ (8,040,015) (1,294,575) $ (13,240,480)
========================================================================================
Class C
Shares sold 2,475,431 $ 24,886,168 5,699,265 $ 58,272,555
Reinvestment of
distributions 1,754,663 17,594,670 2,061,215 20,951,660
Less shares repurchased (9,625,103) (96,598,207) (12,516,330) (127,057,433)
----------------------------------------------------------------------------------------
Net decrease (5,395,009) $ (54,117,369) (4,755,850) $ (47,833,218)
========================================================================================
Class Y
Shares sold 24,549,196 $ 242,996,219 35,418,684 $ 356,406,434
Reinvestment of
distributions 4,439,341 43,873,059 5,684,565 57,034,416
Less shares repurchased (36,416,108) (360,141,371) (57,693,557) (577,335,870)
----------------------------------------------------------------------------------------
Net decrease (7,427,571) $ (73,272,093) (16,590,308) $ (163,895,020)
========================================================================================
Class Z
Shares sold 509,128 $ 5,332,647 341,466 $ 3,586,710
Reinvestment of
distributions 44,874 464,826 59,605 625,942
Less shares repurchased (737,520) (7,640,321) (544,482) (5,709,470)
----------------------------------------------------------------------------------------
Net decrease (183,518) $ (1,842,848) (143,411) $ (1,496,818)
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 53
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended
Year Ended 10/31/13 10/31/12 10/31/11 Year Ended
10/31/14 (Consolidated) (Consolidated) (Consolidated) 10/31/10
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.13 $ 10.13 $ 9.83 $ 10.53 $ 9.39
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.66 $ 0.71 $ 0.76 $ 0.77 $ 0.80
Net realized and unrealized gain (loss) on investments (0.34) (0.02) 0.35 (0.70) 1.11
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.32 $ 0.69 $ 1.11 $ 0.07 $ 1.91
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.63) $ (0.69) $ (0.81) $ (0.77) $ (0.77)
Tax return of capital (0.03) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.66) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.34) $ -- $ 0.30 $ (0.70) $ 1.14
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.79 $ 10.13 $ 10.13 $ 9.83 $ 10.53
====================================================================================================================================
Total return* 3.16% 6.96% 11.89% 0.49% 21.16%
Ratio of net expenses to average net assets 1.13% 1.10% 1.10% 1.09% 1.10%
Ratio of net investment income (loss) to average net assets 6.62% 6.97% 7.74% 7.37% 8.08%
Portfolio turnover rate 32% 33% 33% 52% 49%
Net assets, end of period (in thousands) $373,543 $ 531,829 $602,568 $648,746 $1,117,231
====================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
The accompanying notes are an integral part of these financial statements.
54 Pioneer Global High Yield Fund | Annual Report | 10/31/14
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended
Year Ended 10/31/13 10/31/12 10/31/11 Year Ended
10/31/14 (Consolidated) (Consolidated) (Consolidated) 10/31/10
-----------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 10.14 $ 10.14 $ 9.83 $ 10.53 $ 9.37
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.56 $ 0.60 $ 0.68 $ 0.68 $ 0.70
Net realized and unrealized gain (loss) on investments (0.33) 0.00(a) 0.36 (0.69) 1.15
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.23 $ 0.60 $ 1.04 $ (0.01) $ 1.85
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.54) $ (0.60) $ (0.73) $ (0.69) $ (0.69)
Tax return of capital (0.03) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.57) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.34) $ -- $ 0.31 $ (0.70) $ 1.16
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.80 $ 10.14 $ 10.14 $ 9.83 $ 10.53
===================================================================================================================================
Total return* 2.30% 6.18% 11.10% (0.32)% 20.40%
Ratio of net expenses to average net assets 1.94% 1.94% 1.91% 1.90% 1.92%
Ratio of net investment income (loss) to average net assets 5.81% 6.13% 6.94% 6.59% 7.27%
Portfolio turnover rate 32% 33% 33% 52% 49%
Net assets, end of period (in thousands) $17,167 $ 25,847 $38,965 $50,509 $80,100
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(a) Amount rounds to less than $0.005 per share.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 55
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended
Year Ended 10/31/13 10/31/12 10/31/11 Year Ended
10/31/14 (Consolidated) (Consolidated) (Consolidated) 10/31/10
-----------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.10 $ 10.10 $ 9.80 $ 10.49 $ 9.34
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.59 $ 0.63 $ 0.69 $ 0.70 $ 0.73
Net realized and unrealized gain (loss) on investments (0.34) (0.01) 0.35 (0.69) 1.11
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.25 $ 0.62 $ 1.04 $ 0.01 $ 1.84
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.56) $ (0.62) $ (0.74) $ (0.70) $ (0.69)
Tax return of capital (0,03) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.59) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.34) $ -- $ 0.30 $ (0.69) $ 1.15
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.76 $ 10.10 $ 10.10 $ 9.80 $ 10.49
===================================================================================================================================
Total return* 2.43% 6.23% 11.17% (0.13)% 20.43%
Ratio of net expenses to average net assets 1.83% 1.81% 1.78% 1.78% 1.82%
Ratio of net investment income (loss) to average net assets 5.91% 6.26% 7.08% 6.72% 7.37%
Portfolio turnover rate 32% 33% 33% 52% 49%
Net assets, end of period (in thousands) $354,162 $ 420,932 $468,920 $460,476 $524,448
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
The accompanying notes are an integral part of these financial statements.
56 Pioneer Global High Yield Fund | Annual Report | 10/31/14
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended
Year Ended 10/31/13 10/31/12 10/31/11 Year Ended
10/31/14 (Consolidated) (Consolidated) (Consolidated) 10/31/10
-----------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.96 $ 9.96 $ 9.66 $ 10.35 $ 9.25
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.67 $ 0.72 $ 0.76 $ 0.81 $ 0.86
Net realized and unrealized gain (loss) on investments (0.33) (0.01) 0.37 (0.70) 1.03
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.34 $ 0.71 $ 1.13 $ 0.11 $ 1.89
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.65) $ (0.71) $ (0.83) $ (0.80) $ (0.79)
Tax return of capital (0.03) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.68) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.34) $ -- $ 0.30 $ (0.69) $ 1.10
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.62 $ 9.96 $ 9.96 $ 9.66 $ 10.35
===================================================================================================================================
Total return* 3.40% 7.27% 12.35% 0.85% 21.35%
Ratio of net expenses to average net assets 0.84% 0.82% 0.80% 0.74% 0.73%
Ratio of net investment income (loss) to average net assets 6.88% 7.24% 8.03% 7.72% 8.42%
Portfolio turnover rate 32% 33% 33% 52% 49%
Net assets, end of period (in thousands) $682,911 $ 780,656 $945,946 $1,364,543 $958,596
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 57
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended
Year Ended 10/31/13 10/31/12 10/31/11 Year Ended
10/31/14 (Consolidated) (Consolidated) (Consolidated) 10/31/10
-----------------------------------------------------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $ 10.42 $ 10.43 $ 10.11 $ 10.86 $ 9.67
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.71 $ 0.75 $ 0.82 $ 0.85 $ 0.87
Net realized and unrealized gain (loss) on investments (0.36) (0.03) 0.36 (0.77) 1.13
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.35 $ 0.72 $ 1.18 $ 0.08 $ 2.00
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.67) $ (0.73) $ (0.86) $ (0.83) $ (0.81)
Tax return of capital (0.03) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.70) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.35) $ (0.01) $ 0.32 $ (0.75) $ 1.19
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.07 $ 10.42 $ 10.43 $ 10.11 $ 10.86
===================================================================================================================================
Total return* 3.39% 7.11% 12.30% 0.53% 21.58%
Ratio of net expenses to average net assets 0.90% 0.89% 0.88% 0.76% 0.90%
Ratio of net investment income (loss) to average net assets 6.81% 7.18% 7.99% 7.67% 8.26%
Portfolio turnover rate 32% 33% 33% 52% 49%
Net assets, end of period (in thousands) $ 6,432 $ 8,570 $10,069 $ 7,580 $ 7,416
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
The accompanying notes are an integral part of these financial statements.
58 Pioneer Global High Yield Fund | Annual Report | 10/31/14
Notes to Financial Statements | 10/31/14
1. Organization and Significant Accounting Policies
Pioneer Global High Yield Fund (the Fund) is one of three portfolios comprising
Pioneer Series Trust VII (the Trust), a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a 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.
During the periods covered by this report, the Fund offered five classes of
shares designated as Class A, Class B, Class C, Class Y and Class Z shares.
Class Y shares were first publicly offered on December 28, 2005. Class Z shares
were first publicly offered on July 6, 2007. The Fund ceased to offer Class B
shares on November 10, 2014. Class B shares were converted to Class A shares as
of the close of business on November 10, 2014. Each class of shares represents
an interest in the same portfolio of investments of the Fund and has identical
rights (based on relative net asset values) to assets and liquidation proceeds.
Share classes can bear different rates of class-specific fees and expenses such
as transfer agent and distribution fees. Differences in class-specific fees and
expenses will result in differences in net investment income and, therefore, the
payment of different dividends from net investment income earned by each class.
The Amended and Restated Declaration of Trust of the Fund gives the Board the
flexibility to specify either per share voting or dollar-weighted voting when
submitting matters for shareholder approval. Under per share voting, each share
of a class of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares or Class Z shares.
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.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 59
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Senior
floating rate loan interests (senior loans) are valued in accordance with
guidelines established by the Board of Trustees at the mean between the
last available bid and asked prices from one or more brokers or dealers as
obtained from Loan Pricing Corporation, an independent pricing service. If
price information is not available from Loan Pricing Corporation, or if the
price is deemed to be unreliable, price information will be obtained from
an alternate loan interest pricing service. If no reliable price quotes are
available from either the primary or alternative pricing service, broker
quotes will be solicited. Fixed income securities are valued at prices
supplied by independent pricing services, which consider such factors as
market prices, market events, quotations from one or more brokers, Treasury
spreads, yields, maturities and ratings. Valuations may be supplemented by
dealers and other sources, as required. Credit default swaps are valued by
an independent pricing service based upon valuation models incorporating
default probabilities, estimated recovery rates, actual reported
transactions, and other available market data. Equity securities that have
traded on an exchange are valued at the last sale price on the principal
exchange where they are traded. Equity securities that have not traded on
the date of valuation, or securities for which sale prices are not
available, generally are valued using the mean between the last bid and
asked prices. Shares of money market mutual funds are valued at such funds'
net asset value.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
Securities or senior loan interests for which market prices and/or
quotations are not readily available or are considered to be unreliable are
valued by a fair valuation team comprised of certain personnel of Pioneer
Investment Management, Inc. (PIM), the Fund's investment adviser, pursuant
to procedures adopted by the Fund's Board of Trustees. PIM's fair valuation
team uses fair value methods approved by the Valuation Committee of the
Board of Trustees. PIM's fair value valuation team is responsible for
60 Pioneer Global High Yield Fund | Annual Report | 10/31/14
monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may include
credit ratings, the financial condition of the company, current market
conditions and comparable securities. The Trust may use fair value methods
if it is determined that a significant event has occurred after the close of
the exchange or market on which the security trades and prior to the
determination of the Trust's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Trust's securities may differ significantly from exchange prices and
such differences could be material.
At October 31, 2014, three securities were valued using fair value methods
(in addition to securities valued using prices supplied by independent
pricing services or broker-dealers) representing 0.1% of net assets.
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis, net of
unrecoverable foreign taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
Pioneer Global High Yield Fund | Annual Report | 10/31/14 61
investments are not segregated in the statement of operations from the
effects of changes in the market prices of those securities but are included
with the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation is
recorded in the Fund's financial statements. The Fund records realized gains
and losses at the time a 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 9).
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of October 31, 2014, the Fund did not accrue any interest or penalties
with respect to uncertain tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years remain subject to examination by
federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences. At
October 31, 2014, the Fund reclassified $1,141,736 to decrease paid in
capital, $4,675,436 to increase distributions in excess of net investment
income and $5,817,172 to decrease accumulated net realized loss on
investments and foreign currency transactions to reflect permanent book/tax
differences. These adjustments have no impact on net assets or the results
of operations.
At October 31, 2014, the Fund was permitted to carry forward indefinitely
$10,185,419 of short-term losses and $66,099,487 of long-term losses under
the Regulated Investment Company Modernization Act of 2010 without
62 Pioneer Global High Yield Fund | Annual Report | 10/31/14
limitation. Additionally, at October 31, 2014, the Fund had a net capital
loss carryforward of $235,848,362 of which the following amounts will expire
between 2016 and 2018 if not utilized: $4,718,467 in 2016, $204,858,985 in
2017 and $26,270,910 in 2018.
During the year ended October 31, 2014, a capital loss carryforward of
$1,705,122 was utilized to offset net realized gains by the Fund.
The tax character of distributions paid during the years ended October 31,
2014 and October 31, 2013 were as follows:
----------------------------------------------------------------------------
2014 2013
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $100,787,602 $133,745,876
Return of capital 4,607,391 --
----------------------------------------------------------------------------
Total $105,394,993 $133,745,876
============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2014:
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ --
Capital loss carryforward (312,133,268)
Dividend payable (1,038,407)
Net unrealized depreciation (73,392,760)
----------------------------------------------------------------------------
Total $ (386,564,435)
============================================================================
The difference between book basis and tax basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales, the mark-to-market
of foreign currency contracts, adjustments relating to catastrophe bonds,
partnerships, interest on defaulted bonds, and interest accruals on
preferred stock.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $59,336 in underwriting commissions on the sale of Class A shares
during the year ended October 31, 2014.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 63
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively (see Note 4). Class Y and Class Z shares do not pay
distribution fees. All expenses and fees paid to the transfer agent, Pioneer
Investment Management. Shareholder Services, Inc. (PIMSS), for its services
are allocated among the classes of shares based on the number of accounts in
each class and the ratable allocation of related out-of-pocket expenses (see
Note 3).
The Fund declares as daily dividends substantially all of its net investment
income. All dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class B, Class C, Class Y and Class
Z shares can reflect different transfer agent and distribution expense
rates.
G. Risks
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's 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 contains unaudited information regarding the Fund's principal
risks. Please refer to that document when considering the Fund's principal
risks.
The Fund invests in below investment grade (high yield) debt securities and
preferred stocks. Some of these high yield securities may be convertible
into equity securities of the issuer. Debt securities rated below investment
grade are commonly referred to as "junk bonds" and are considered
speculative. These securities involve greater risk of loss, are subject to
greater price volatility, and are less liquid, especially during periods of
economic uncertainty or change, than higher rated debt securities.
H. Purchased Options
The Fund may purchase call and put options in order to seek to increase
total return. Purchased call and put options entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time. Upon the purchase of a call or put option, the
premium paid by the Fund is included in the Statement of Assets and
Liabilities as an investment. All premiums are marked-to-market daily, and
any unrealized appreciation or
64 Pioneer Global High Yield Fund | Annual Report | 10/31/14
depreciation are recorded in the Fund's financial statements. As the
purchaser of an index option, the Fund has the right to receive a cash
payment equal to any depreciation in the value of the index below the strike
price of the option (in the case of a put) or equal to any appreciation in
the value of the index over the strike price of the option (in the case of a
call) as of the valuation date of the option. Premiums paid for purchased
calls and put options which have expired are treated as realized losses on
investments in the Statement of Operations. Upon the exercise or closing of
a purchased put option, the premium is offset against the proceeds on the
sale of the underlying security or financial instrument in order to
determine the realized gain or loss on investments. Upon the exercise or
closing of a purchased call option, the premium is added to the cost of the
security or financial instrument. The risk associated with purchasing
options is limited to the premium originally paid. The average value of
contracts open during the year ended October 31, 2014 was $26,227. Purchased
put option contracts outstanding at period end are listed at the Fund's
Schedule of Investments. During the year ended October 31, 2014, there were
no put option contracts outstanding.
I. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price, upon
the exercise of the option. When the Fund writes an option, an amount equal
to the premium received by the Fund is recorded as a liability and is
subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the
underlying security in determining whether the Fund has realized a gain or
loss. The Fund as writer of an option bears the market risk of an
unfavorable change in the price of the security underlying the written
option.
The average value of contracts open during the year ended October 31, 2014
was $27,084. Written call option contracts outstanding at period end are
listed at the end of the Fund's schedule of investments.
The Fund held one written call option contract that was open at October 31,
2014.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 65
Transactions in written call options for the year ended October 31, 2014 are
summarized as follows:
----------------------------------------------------------------------------
Number of Contracts Premium Received
----------------------------------------------------------------------------
Options open at beginning of period -- $ --
Options opened (4,923,449) (81,114)
Options exercised -- --
Options closed -- --
Options expired -- --
----------------------------------------------------------------------------
Options open at end of period (4,923,449) $ (81,114)
============================================================================
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, the Fund's investment
adviser, manages the Fund's portfolio. Management fees are calculated daily at
the annual rate of 0.70% of the Fund's average daily net assets up to $500
million; 0.65% of the next $500 million; 0.60% of the next $500 million; 0.55%
of the next $500 million; and 0.45% on assets over $2 billion. For the year
ended October 31, 2014, the effective management fee (excluding waivers and/or
assumption of expenses) was equivalent to 0.64% of the Fund's average daily net
assets.
PIM contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.10%, 2.00%, 2.00% and 0.90% of the average
daily net assets attributable to Class A, Class B, Class C and Class Z shares,
respectively. Class Y shares do not have an expense limitation. These expense
limitations expired on March 1, 2013.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$52,844 in management fees, administrative costs and certain other
reimbursements payable to PIM at October 31, 2014.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
66 Pioneer Global High Yield Fund | Annual Report | 10/31/14
For the year ended October 31, 2014, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 536,694
Class B 29,871
Class C 322,881
Class Y 880,723
Class Z 12,354
--------------------------------------------------------------------------------
Total $1,782,523
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $305,262 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 2014.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B and Class C
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the
average daily net assets attributable to Class B and Class C shares. The fee for
Class B and Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class C
shares. Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $25,452 in distribution fees payable to PFD at October 31, 2014.
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 12 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 12 months of purchase are subject to a CDSC
of 1.00% based on the lower of cost or market value of shares being redeemed.
Shares purchased as part of an exchange remain subject to any CDSC that applied
to the original purchase of those shares. There is no CDSC for Class Y or Class
Z shares. Proceeds from the CDSCs are paid to PFD. For the year ended October
31, 2014, CDSCs in the amount of $22,131 were paid to PFD.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 67
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until February 12, 2014 was in the amount of $215
million. As of February 12, 2014, the facility is in the amount of $240 million.
Under such facility, depending on the type of loan, interest on borrowings is
payable at the London Interbank Offered Rate (LIBOR) plus 0.90% (0.85% as of
February 12, 2014) on an annualized basis, or the Alternate Base Rate, which is
the greater of (a) the facility's administrative agent's daily announced prime
rate on the borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing
date and (c) 2% plus the overnight Euro dollar rate on the borrowing date. The
Funds pay an annual commitment fee to participate in the credit facility. The
commitment fee is allocated among participating Funds based on an allocation
schedule set forth in the credit agreement. For the year ended October 31, 2014,
the Fund had no borrowings under the credit facility.
6. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended October 31, 2014, the Fund's expenses
were not reduced under such arrangements.
7. Bridge Loan Commitments
As of October 31, 2014, the Fund had no outstanding unfunded loan commitments.
The Fund had the following bridge loan commitment outstanding as of October 31,
2014:
-------------------------------------------------------------------------------------
Net
Unrealized
Loan Shares Cost Value Appreciation
-------------------------------------------------------------------------------------
Burger King Worldwide Inc.,
Bridge Loan 11,000,000 $11,000,000 $11,000,000 $--
-------------------------------------------------------------------------------------
Total $--
=====================================================================================
68 Pioneer Global High Yield Fund | Annual Report | 10/31/14
8. Basis for Consolidation of the Financial Statements
The consolidated financial statements of the Fund as of October 31, 2013
included the accounts of Blaze Holding GHYDF, Inc. ("the Subsidiary"). All
intercompany accounts and transactions have been eliminated in consolidation.
The Subsidiary, a Delaware corporation, was incorporated on February 10, 2011
and was wholly-owned and controlled by the Fund. The Subsidiary acted as an
investment vehicle for the Fund's interest in Blaze Recycling and Metals LLC,
Class A Units ("Blaze").
On July 17, 2014, the Subsidiary sold its interest in Blaze, and liquidated on
August 21, 2014. The disposition of this investment resulted in a recognized
loss of $6,292,479, which is reflected as part of the Net Realized Gain (Loss)
on Investments in the Statement of Operations. The investment in the Subsidiary
had no other impact on the Fund's operations. As a result, the financial
statements as of October 31, 2014 are not consolidated.
9. Forward Foreign Currency Contracts
At October 31, 2014, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of contracts open during
the year ended October 31, 2014 was $18,627,925.
Open forward foreign currency contracts at October 31, 2014 were as follows:
---------------------------------------------------------------------------------------------------------
Quantity/
Shares Net
Currency Purchased/ Settlement US $ Value Unrealized
Description Counterparty (Sold) Book Value Date at 10/31/14 Appreciation
---------------------------------------------------------------------------------------------------------
EURO Brown Brothers
(European Harriman
Euro) and Co. (11,272,486) $15,070,322 12/5/14 $(14,124,966) $ 945,355
JPY Brown Brothers
(Japanese Harriman
Yen) and Co. (1,191,551,081) 11,644,781 11/18/14 (10,614,800) 1,029,982
GBP (British
Pound Citibank NA (4,467,675) 7,258,254 12/4/14 (7,142,497) 115,757
EURO
(European
Euro) UBS AG (4,200,044) 5,641,781 12/5/14 (5,262,857) 378,924
---------------------------------------------------------------------------------------------------------
Total $ 2,470,018
=========================================================================================================
Pioneer Global High Yield Fund | Annual Report | 10/31/14 69
---------------------------------------------------------------------------------------------------------
Quantity/
Shares Net
Currency Purchased/ Settlement US $ Value Unrealized
Description Counterparty (Sold) Book Value Date at 10/31/14 Depreciation
---------------------------------------------------------------------------------------------------------
TRY (Turkish
Lira) Citibank NA (5,802,689) $ 2,504,981 12/15/14 $ (2,586,599) $ (81,618)
KRW (South JP Morgan
Korea Won) Chase Bank 4,145,551,867 (4,048,667) 12/4/14 3,853,997 (194,670)
NOK (Norwegian JP Morgan
Krone) Chase Bank 178,949,944 (27,901,662) 12/4/14 26,475,900 (1,425,762)
---------------------------------------------------------------------------------------------------------
Total $(1,702,050)
=========================================================================================================
10. Assets and Liabilities Offsetting
Financial instruments subject to an enforceable master netting agreement have
been offset on the Statement of Assets and Liabilities. The following charts
show gross assets and liabilities of the Fund as of October 31, 2014.
------------------------------------------------------------------------------------------------------
Assets:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented In -------------------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
------------------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $2,470,018 $ -- $2,470,018 $ -- $ -- $2,470,018
Written options -- -- -- -- -- --
------------------------------------------------------------------------------------------------------
$2,470,018 $ -- $2,470,018 $ -- $ -- $2,470,018
======================================================================================================
------------------------------------------------------------------------------------------------------
Liabilities:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Liabilities Assets and Liabilities
Gross Statement Presented In -------------------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Received Amount
------------------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $1,702,050 $ -- $1,702,050 $ -- $ -- $1,702,050
Written options 87 -- 87 -- -- 87
------------------------------------------------------------------------------------------------------
$1,702,137 $ -- $1,702,137 $ -- $ -- $1,702,137
======================================================================================================
70 Pioneer Global High Yield Fund | Annual Report | 10/31/14
11. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of October 31, 2014 were as follows:
--------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives 2014 Liabilities Derivatives 2014
Hedging Instruments ----------------------------------------------------------------
Under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
--------------------------------------------------------------------------------------------
Forward Foreign Currency Net unrealized Net unrealized
Contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $2,470,018 currency contracts $1,702,050
Written options Written options -- Written options 87
--------------------------------------------------------------------------------------------
Total $2,470,018 $1,702,137
============================================================================================
The effect of derivative instruments on the Statement of Operations for the year
ended October 31, 2014 was as follows:
------------------------------------------------------------------------------------------------
Change in
Derivatives Not Unrealized
Accounted for as Realized Appreciation
Hedging Instruments Location of Gain Gain or (Loss) (Depreciation)
Under Accounting or (Loss) on on Derivatives on Derivatives
Standards Codification Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
------------------------------------------------------------------------------------------------
Forward Foreign Net realized gain (loss) on forward
Currency Contracts foreign currency contracts $ (1,873,530)
Forward Foreign Change in unrealized appreciation
Currency Contracts (depreciation) on forward foreign
contracts $ 1,450,685
Written options Net realized gain (loss) on
written options $ --
Written options Change in unrealized appreciation
(depreciation) on written options $ 81,027
12. Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Fund, with the approval and recommendation of the
Audit Committee, appointed Deloitte & Touche LLP to serve as the Fund's
independent registered public accounting firm for the fiscal year ending October
31, 2014. Deloitte & Touche LLP replaces Ernst & Young LLP, which resigned as
the Fund's independent registered public accounting firm, effective upon
completion of the audit of the Fund's financial statements for the fiscal year
ended October 31, 2013.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 71
During the periods that Ernst & Young LLP served as the Fund's independent
registered public accounting firm, including the Fund's fiscal years ending
October 31, 2013 and October 31, 2012, Ernst & Young LLP's reports on the
financial statements of the Fund have not contained an adverse opinion or
disclaimer of opinion and have not been qualified or modified as to uncertainty,
audit scope or accounting principles. Further, there have been no disagreements
with Ernst & Young LLP on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure, which, if not
resolved to the satisfaction of Ernst & Young LLP would have caused Ernst &
Young LLP to make reference to the subject matter of the disagreement in
connection with its report on the financial statements. In addition, there have
been no reportable events of the kind described in Item 304(a)(1)(v) of
Regulation S-K under the Securities Exchange Act of 1934.
13. Conversion of Class B Shares
As of the close of business on November 10, 2014 (the "Conversion Date"), all
outstanding Class B shares of the Fund were converted to Class A shares.
72 Pioneer Global High Yield Fund | Annual Report | 10/31/14
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII and Shareowners of
Pioneer Global High Yield Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Global High Yield Fund (the "Fund") (one
of the funds constituting Pioneer Series Trust VII), as of October 31, 2014, and
the related statements of operations and changes in net assets, and the
financial highlights for year then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit. The consolidated statement of changes
in net assets of the Fund for the year ended October 31, 2013, and the financial
highlights for the years ended October 31, 2013, 2012, 2011, and 2010 were
audited by other auditors. Those auditors expressed an unqualified opinion on
those consolidated financial statements and financial highlights in their report
dated December 23, 2013.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of October 31, 2014, by correspondence with the
custodian, brokers and agent banks; where replies were not received from brokers
and agent banks, we performed other auditing procedures. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global High Yield Fund as of October 31, 2014, and the results of its
operations, the changes in its net assets, and the financial highlights for the
year then ended, in conformity with accounting principles generally accepted in
the United States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 24, 2014
Pioneer Global High Yield Fund | Annual Report | 10/31/14 73
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Global High Yield Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in January 2014 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2014 and July
2014. Supplemental contract review materials were provided to the Trustees in
September 2014. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year, and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings, in connection with the review of the Fund's
investment advisory agreement.
In March 2014, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In July 2014,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2014.
At a meeting held on September 16, 2014, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Fund's shareowners. The
Trustees did not identify any single factor as the controlling factor in
determining to approve the renewal of the agreement.
74 Pioneer Global High Yield Fund | Annual Report | 10/31/14
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for the
Fund and its research process. The Trustees considered the resources of PIM and
the personnel of PIM who provide investment management services to the Fund.
They also reviewed the amount of non- Fund assets managed by the portfolio
managers of the Fund. The Trustees considered the non-investment resources and
personnel of PIM involved in PIM's services to the Fund, including PIM's
compliance and legal resources and personnel. The Trustees noted the substantial
attention and high priority given by PIM's senior management to the Pioneer fund
complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
analysis and data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees confirmed that these regular reviews and
discussions were factored into the Trustees' deliberations concerning the
renewal of the advisory agreement. For purposes of their contract renewal
deliberations, the Trustees considered the discussions held throughout the year
regarding the Fund's performance and the performance results of the Fund over
various time periods, including the Fund's performance results for periods ended
June 30, 2014. The Trustees indicated that they were satisfied with PIM's
response to the Fund's performance issues.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 75
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2014 was in the third quintile relative to the management fees
paid by other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoints in the management fee schedule and the
reduced fee rates above certain asset levels. The Trustees considered that the
expense ratio of the Fund's Class A shares for the twelve months ended June 30,
2014 was in the fourth quintile relative to its Morningstar peer group and in
the fourth quintile relative its Strategic Insight peer group, in each case for
the comparable period. The Trustees considered that the expense ratio of the
Fund's Class Y shares for the twelve months ended June 30, 2014 was in the
fourth quintile relative to its Morningstar peer group and in the fourth
quintile relative its Strategic Insight peer group, in each case for the
comparable period. The Trustees considered the impact of transfer agency,
sub-transfer agency, and other non-management fee expenses on the expense ratios
of the Fund, and noted the impact of expenses relating to small accounts and
omnibus accounts on transfer and sub-transfer agency expenses generally. The
Trustees noted that they separately review the Fund's transfer agency,
sub-transfer agency and intermediary arrangements. The Trustees noted the Fund's
relatively small asset size compared to most of the other funds in its peer
groups. They noted that the Fund's non-management fee operating expenses
generally are spread over a smaller asset base than the other funds in the peer
group, which results in these fees being significantly higher as a percentage of
assets.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the
76 Pioneer Global High Yield Fund | Annual Report | 10/31/14
Fund that it does not provide to those other clients or services that are
broader in scope, including oversight of the Fund's other service providers and
activities related to compliance and the extensive regulatory and tax regimes to
which the Fund is subject. The Trustees also considered the different
entrepreneurial risks associated with PIM's management of the Fund and Pioneer's
management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoints in the management fee schedule. The Trustees recognize
that economies of scale are difficult to identify and quantify, and that, among
other factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Fund. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons including due to
reductions in expenses. The Trustees concluded that economies of scale, if any,
were being appropriately shared with the Funds.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 77
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
78 Pioneer Global High Yield Fund | Annual Report | 10/31/14
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least 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 serves as a Trustee of
each of the 53 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 79
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (64) Trustee since 2006. Private investor (2004-2008 and 2013-present); Director, Broadridge
Chairman of the Board Serves until a Chairman (2008 - 2013) and Chief Executive Financial Solutions, Inc.
and Trustee successor trustee Officer (2008 - 2012), Quadriserv, Inc. (investor communications
is elected or (technology products for securities lending and securities processing
earlier retirement industry); and Senior Executive Vice provider for financial
or removal. President, The Bank of New York (financial and services industry) (2009 -
securities services) (1986 - 2004) present); Director,
Quadriserv, Inc. (2005 -
2013); and Commissioner,
New Jersey State Civil
Service Commission (2011 -
present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (70) Trustee since 2005. Managing Partner, Federal City Capital Director of Enterprise
Trustee Serves until a Advisors (corporate advisory services company) Community Investment, Inc.
successor trustee (1997 - 2004 and 2008 - present); Interim (privately-held affordable
is elected or Chief Executive Officer, Oxford Analytica, housing finance company)
earlier retirement Inc. (privately-held research and consulting (1985 - 2010); Director of
or removal. company) (2010); Executive Vice President and Oxford Analytica, Inc.
Chief Financial Officer, I-trax, Inc. (2008 - present); Director
(publicly traded health care services company) of The Swiss Helvetia Fund,
(2004 - 2007); and Executive Vice President Inc. (closed-end fund)
and Chief Financial Officer, Pedestal Inc. (2010 - present); and
(internet-based mortgage trading company) Director of New York
(2000 - 2002) Mortgage Trust (publicly
traded mortgage REIT) (2004
- 2009, 2012 - present)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (70) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon
Trustee Serves until a Economy, Harvard University (1972 - present) Institutional Funds
successor trustee Investment Trust and Mellon
is elected or Institutional Funds Master
earlier retirement Portfolio (oversaw 17
or removal. portfolios in fund complex)
(1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
80 Pioneer Global High Yield Fund | Annual Report | 10/31/14
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (67) Trustee since 2001. Founding Director, Vice President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee firm) (1982 - present); Desautels Faculty of
is elected or Management, McGill University (1999 - present);
earlier retirement and Manager of Research Operations and
or removal. Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (66) Trustee since 2001. President and Chief Executive Officer, Newbury, Director of New America
Trustee Serves until a Piret & Company, Inc. (investment banking firm) High Income Fund, Inc.
successor trustee (1981 - present) (closed-end investment
is elected or company) (2004 - present);
earlier retirement and member, Board of
or removal. Governors, Investment
Company Institute (2000 -
2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (67)** Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a (2012 - present); Executive Vice President, BNY
successor trustee Mellon (financial and investment company
is elected or services) (1969 - 2012); Director, BNY
earlier retirement International Financing Corp. (financial
or removal. services) (2002 - 2012); and Director, Mellon
Overseas Investment Corp. (financial services)
(2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/14 81
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (56)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a successor 2008) and Chief Investment Officer, U.S. (since
trustee is elected or 2010), of PIM-USA; Executive Vice President of
earlier retirement or Pioneer (since 2008); Executive Vice President
removal. of Pioneer Institutional Asset Management, Inc.
(since 2009); Portfolio Manager of Pioneer
(since 1999)
------------------------------------------------------------------------------------------------------------------------------------
82 Pioneer Global High Yield Fund | Annual Report | 10/31/14
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (58)** Advisory Trustee since Chief Investment Officer, 1199 SEIU National Benefit None
2014. and Pension Funds (health care workers union pension
Funds) (2001 - present); Vice President -
International Investments Group, American
International Group, Inc. (insurance company) (1993 -
2001); Vice President, Corporate Finance and Treasury
Group, Citibank, N.A. (1980 - 1986 and 1990 - 1993);
Vice President - Asset/Liability Management Group,
Federal Farm Funding Corp. (government-sponsored
Issuer of debt securities) (1988 - 1990); Mortgage
Strategies Group, Shearson Lehman Hutton, Inc.
(investment bank) (1987 - 1988); and Mortgage
Securities Group, Drexel Burnham Lambert, Ltd.
(investment bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer or director of
the Fund's investment adviser and certain of its affiliates.
** Mr. Ricciardi became a Trustee and Ms. Monchak became a non-voting Advisory
Trustee on November 11, 2014.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 83
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (52) Since 2014. Serves at Chair, Director, CEO and President of Pioneer None
President and the discretion of the Investment Management USA (since September 2014);
Chief Executive Officer Board. Chair, Director, CEO and President of Pioneer
Investment Management, Inc. (since September 2014);
Chair, Director, CEO and President of Pioneer Funds
Distributor, Inc. (since September 2014); Chair,
Director, CEO and President of Pioneer Institutional
Asset Management, Inc. (since September 2014); and
Chair, Director, and CEO of Pioneer Investment
Management Shareholder Services, Inc. (since September
2014); Managing Director, Morgan Stanley Investment
Management (2010 - 2013); and Director of
Institutional Business, CEO of International, Eaton
Vance Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (49) Since 2003. Serves at Vice President and Associate General Counsel of None
Secretary and Chief the discretion of the Pioneer since January 2008; Secretary and Chief Legal
Legal Officer Board. Officer of all of the Pioneer Funds since June 2010;
Assistant Secretary of all of the Pioneer Funds from
September 2003 to May 2010; and Vice President and
Senior Counsel of Pioneer from July 2002 to December
2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (53) Since 2010. Serves at Fund Governance Director of Pioneer since December None
Assistant Secretary the discretion of the 2006 and Assistant Secretary of all the Pioneer Funds
Board. since June 2010; Manager - Fund Governance of Pioneer
from December 2003 to November 2006; and Senior
Paralegal of Pioneer from January 2000 to November
2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (52) Since 2010. Serves at Senior Counsel of Pioneer since May 2013 and Assistant None
Assistant Secretary the discretion of the Secretary of all the Pioneer Funds since June 2010;
Board. Counsel of Pioneer from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2008. Serves at Vice President - Fund Treasury of Pioneer; Treasurer None
Treasurer and Chief the discretion of the of all of the Pioneer Funds since March 2008; Deputy
Financial Board. Treasurer of Pioneer from March 2004 to February 2008;
and Accounting Officer and Assistant Treasurer of all of the Pioneer Funds
of the Fund from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (49) Since 2001. Serves at Director - Fund Treasury of Pioneer; and Assistant None
Assistant Treasurer the discretion of the Treasurer of all of the Pioneer Funds
Board.
------------------------------------------------------------------------------------------------------------------------------------
84 Pioneer Global High Yield Fund | Annual Report | 10/31/14
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (56) Since 2002. Serves at Fund Accounting Manager - Fund Treasury of Pioneer; None
Assistant Treasurer the discretion of the and Assistant Treasurer of all of the Pioneer Funds
Board.
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2009. Serves at Fund Administration Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Pioneer since November 2008; Assistant Treasurer of
Board. all of the Pioneer Funds since January 2009; and
Client Service Manager - Institutional Investor
Services at State Street Bank from March 2003 to
March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (62) Since 2010. Serves at Chief Compliance Officer of Pioneer and of all the None
Chief Compliance Officer the discretion of the Pioneer Funds since March 2010; Director of Adviser
Board. and Portfolio Compliance at Pioneer since October
2005; and Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to
October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (43) Since 2006. Serves at Director - Transfer Agency Compliance of Pioneer and None
Anti-Money Laundering the discretion of the Anti-Money Laundering Officer of all the Pioneer
Officer Board. funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/14 85
This page for your notes.
86 Pioneer Global High Yield Fund | Annual Report | 10/31/14
This page for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 87
This page for your notes.
88 Pioneer Global High Yield Fund | Annual Report | 10/31/14
This page for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 89
This page for your notes.
90 Pioneer Global High Yield Fund | Annual Report | 10/31/14
This page for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/14 91
This page for your notes.
92 Pioneer Global High Yield Fund | Annual Report | 10/31/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 19440-08-1214
Pioneer Global Multisector
Income Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PGABX
Class C PGCBX
Class Y PGYBX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 37
Notes to Financial Statements 44
Report of Independent Registered Public Accounting Firm 60
Approval of Investment Advisory Agreement 62
Trustees, Officers and Service Providers 67
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 1
President's Letter
Dear Shareowner,
As we move into the final months of 2014, we remain confident that U.S. economic
growth remains self-sustaining despite weakness in foreign economies, and that
the expansion will continue until the economy reaches full employment.
Unemployment has ticked down below 6% and the number of job openings is at the
highest level since 2000, while the number of people filing initial unemployment
claims has fallen to the lowest level in fourteen years. Wage growth, while
still low, is outpacing inflation, consumer debt burdens are modest and lower
gasoline prices are freeing up discretionary spending power.
The global economic picture is less rosy, however, as the conflict between
Russia and the Ukraine is exacting a toll on the European economy, Japan is
still working through the impact of its large tax increase, and the growth of
China's investment-driven economy has been slowing. There are also geopolitical
and other threats to the outlook, such as the Ebola virus outbreak and the
advance of ISIS in key areas of the Middle East. On balance, though, we expect
the global economy to continue to grow over the remainder of 2014 and in 2015.
While our economic outlook is generally constructive and we believe
opportunities remain for prudent investors to earn attractive returns, markets
are likely to continue to be volatile, a scenario that offers the potential for
rewards, but for increased risks as well.
Since 1928, Pioneer's investment professionals have worked on behalf of our
shareholders, incorporating proprietary research to find attractive investment
opportunities and prudent risk management to construct portfolios.
We continue to advocate the benefits of adhering to a disciplined investment
strategy and encourage you to work with your financial advisor to develop and
implement an overall investment plan that addresses both your short- and
long-term goals.
2 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
On August 11, 2014, I joined Pioneer as the new President and CEO of Pioneer
Investment Management USA, Inc. In my role, I will focus on preserving many of
the rich qualities of our history, while meeting the challenges and capitalizing
on the opportunities presented by an ever-changing world.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 3
Portfolio Management Discussion | 10/31/14
Global bond markets experienced a series of surprises in the second half of the
12-month period ended October 31, 2014, undermining the confidence that had
contributed to a relatively stable environment earlier in the period. In the
following interview, Charles Melchreit and Paresh Upadhyaya discuss the factors
that affected the performance of Pioneer Global Multisector Income Fund during
the 12-month period. Mr. Melchreit, Director of Investment-Grade Management, a
senior vice president and a portfolio manager at Pioneer, and Mr. Upadhyaya, a
senior vice president and portfolio manager at Pioneer, are responsible for the
day-to-day management of the Fund, along with Kenneth J. Taubes, Executive Vice
President, Chief Investment Officer, U.S., and a portfolio manager at Pioneer,
and Andrew Feltus, Director of High Yield and Bank Loans, a senior vice
president and a portfolio manager at Pioneer.
Q How did the Fund perform during the 12 months ended October 31, 2014?
A Pioneer Global Multisector Income Fund Class A shares returned 3.16% at net
asset value during the 12-month period ended October 31, 2014, while the
Fund's benchmark, the Barclays Global Aggregate Bond Index (the Barclays
Index), returned 0.22%. During the same period, the average return of the
225 mutual funds in Lipper's Global Income Funds category was 2.76%, and the
average return of the 392 mutual funds in Morningstar's World Bond Funds
category was 2.36%.
Q How would you describe the investment environment in the world bond markets
during the 12-month period ended October 31, 2014?
A The investment landscape changed during the second half of the period as
worries about global economic progress as well as increased geopolitical
risks created uncertainty in the world's fixed-income markets. The first
half of the period saw positive performance in many fixed-income markets.
Confidence was fueled by stabilization of capital markets in the United
States, which were buoyed by investors' general belief that the American
economy was growing steadily, that emerging markets were beginning to
recover, and that the European economy had emerged from recession. To be
sure, however, the first six months of the period did feature some causes
for concern, notably the evidence of slowing economic growth in China and
the emergence of new geopolitical tensions in the Middle East and Eastern
Europe.
4 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
The environment changed noticeably in the second half of the period as a
number of surprises rattled the markets and diminished much of the
confidence seen during the first six months of the period. One of the first
issues to arise was disappointing economic data in the United States for the
first quarter of 2014, as gross domestic product (GDP) growth, after rising
steadily during much of the second half of 2013, unexpectedly turned
negative in the first quarter of 2014. News of the apparent slowing of the
domestic economy caused the markets to push back their expectations for when
the U.S. Federal Reserve System (the Fed) would begin raising interest
rates. On the heels of the disappointing economic news in the United States
came new signs that growth in Europe was sputtering and that GDP growth in
China had fallen to below the targeted 7.5% annualized rate. Evidence of
disappointing trends in China, in turn, raised doubts about the outlooks for
the economies in many emerging markets.
The confluence of these developments generated market fears about the
possibility that deflation might appear, and thus choke off global economic
growth by tamping down current levels of spending should prices fall. Adding
to the fears were increased geopolitical risks, many of which had economic
consequences. Sanctions imposed by the United States and Europe against
Russia as a result of its aggression in the Ukraine, for example, appeared
to be having negative impacts on the economies of not only Russia, but of
Europe and the United Kingdom as well. Meanwhile, the rise of the ISIS group
in the Middle East brought renewed tensions and worries about that troubled
region of the world.
With investor confidence shaken, U.S. Treasuries rallied over the final six
months of the period, as Treasuries came to be viewed as the safest asset
class in a time of uncertainty. As Treasury prices rose, the yields of
10-year Treasuries dropped from 3.3% at the start of 2014 to 2.3% at the end
of the Fund's fiscal year on October 31, 2014. At the same time, the markets
for other asset classes experienced greater volatility.
Q What were your principal investment strategies for the Fund during the
12-month period ended October 31, 2014, and how did those strategies affect
the Fund's relative performance?
A The Fund's performance relative to both the Barclays Index benchmark and its
peer groups improved significantly during the second half of the period.
Throughout the entire 12-month period, we overweighted the portfolio in the
U.S. dollar (USD) compared with the Barclays Index. The emphasis on the USD
turned out to be the primary driver of the Fund's benchmark-relative
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 5
outperformance during the period as the USD strengthened against most
foreign currencies. The relative strength of the USD was particularly
evident in the second half of the Fund's fiscal year, as the U.S. currency
began outperforming emerging markets currencies even as it widened its
outperformance against most developed market currencies. The USD's
performance advantage was enhanced both in May and in September 2014, when
the European Central Bank (ECB) took steps to lower interest rates -
including bringing deposit rates to below zero - and to increase monetary
liquidity in Europe. One effect of the ECB's actions was to increase
interest-rate differentials between lower rates in Europe and higher rates
in the United States, and to enhance the USD's appeal.
We also maintained a shorter duration in the Fund's portfolio than that of
the Barclays Index, although we did move the Fund closer in duration to the
benchmark during the second half of the fiscal year by investing in Treasury
inflation-protected securities (TIPS), which have floating coupon rates that
can rise as interest rates move up. (Duration is a measure of the
sensitivity of the price - the value of principal - of a fixed-income
investment to a change in interest rates, expressed as a number of years.)
The Fund's short-duration stance detracted from benchmark-relative
performance for the full 12-month period as interest rates declined and
longer- and intermediate-term Treasuries outperformed. While the Fund's
short-duration policy did not help relative performance during the past 12
months, the negative effects were not enough to overcome the positive
effects of our overweighting of the USD. We believe that
greater-than-expected economic growth and poor "real" yields - that is,
yields after accounting for inflation - are just some of the factors that
could lead to rising interest rates going forward, and so we continue to
maintain the Fund's shorter-duration stance. At the end of the fiscal
period, on October 31, 2014, the average effective duration of Fund
investments was 4.49 years, while the duration of the benchmark Barclays
Index was 6.64 years.
Throughout the 12-month period we maintained a high level of
diversification* within the portfolio. At the end of the fiscal year on
October 31, 2014, the largest allocation of the Fund's total invested assets
was in foreign government bonds, at more than 26%, followed by U.S.
corporates (22%), U.S. government securities (19%), and international
corporates (15%). Collateralized mortgage obligations, at more than 9% of
invested assets, also represented a fairly sizable portion of the Fund's
portfolio as of period end.
* Diversification does not assure a profit nor protect against loss in a
declining market.
6 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
We recently have increased the Fund's positions in agency-backed mortgages
while cutting back investments in domestic investment-grade corporate bonds,
as the relative values of mortgages have become more appealing following a
period of strong performance by corporate bonds.
Within the Fund's emerging markets allocations, we have cut back our
emphasis on markets such as Nigeria and Malaysia, while increasing exposures
to nations such as India and Indonesia, both of which stand to benefit from
falling oil prices and the expectation of the implementation of structural
reforms.
Q Did the use of derivative securities have any impact on the Fund's relative
performance during the 12-month period ended October 31, 2014?
A Yes. We invested in currency forward contracts as part of our strategy to
overweight the portfolio to the USD, and these derivatives had a positive
effect on the Fund's results.
Q What is your investment outlook?
A We remain confident in the strength of the USD and have maintained an
overweight position in the portfolio. We believe the USD's appeal on world
currency markets has been enhanced by positive structural changes that have
occurred within the U.S., notably the reduction in the nation's current
account deficit. We also think that the interest-rate differential advantage
of the USD versus other currencies will be enhanced when the Fed eventually
begins to tighten its interest-rate policy and domestic rates start rising
as the U.S. economic recovery continues to gain momentum.
We also have a favorable opinion about opportunities in the emerging
markets. While currencies of commodity exporters that are sensitive to
global growth trends may be hurt, other emerging markets have become more
appealing, including commodity-importing nations such as India as well as
nations that have undertaken major structural reforms, including Indonesia
and Mexico. We expect to continue to avoid investing in countries with large
current account deficits and those that have not undertaken any major
structural reforms, including South Africa and Turkey.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 7
Please refer to the Schedule of Investments on pages 17-35 for a full listing of
Fund securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
When interest rates rise, the prices of fixed income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investments in high-yield or lower rated securities are subject to
greater-than-average price volatility, illiquidity and possibility of default.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The portfolio may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
The securities issued by U.S. Government-sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
Floating rate loans and similar instruments may be illiquid or less liquid than
other instruments, and the value of any collateral can decline or be
insufficient to meet the issuer's obligations.
The value of municipal securities can be adversely affected by changes in
financial condition of municipal issuers, lower revenues, and regulatory and
political developments.
The Fund is subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
8 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 9
Portfolio Summary | 10/31/14
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Foreign Government Bonds 26.3%
U.S. Corporate Bonds 22.3%
U.S. Government Securities 19.3%
International Corporate Bonds 14.8%
Collateralized Mortgage Obligations 9.2%
Asset Backed Securities 2.6%
U.S. Preferred Stocks 2.0%
Municipal Bonds 1.4%
Convertible Preferred Stocks 1.0%
Convertible Corporate Bonds 0.6%
Senior Secured Loans 0.5%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. U.S. Treasury Notes, 1.5%, 10/31/19 3.97%
--------------------------------------------------------------------------------
2. U.S. Treasury Notes, 2.375%, 8/15/24 2.79
--------------------------------------------------------------------------------
3. New Zealand Government Bond, 5.5%, 4/15/23 2.05
--------------------------------------------------------------------------------
4. Federal Home Loan Mortgage Corp., 4.0%, 5/1/44 2.04
--------------------------------------------------------------------------------
5. U.S. Treasury Inflation Indexed Bonds, 0.125%, 7/15/24 1.84
--------------------------------------------------------------------------------
6. Norway Government Bond, 4.5%, 5/22/19 1.80
--------------------------------------------------------------------------------
7. U.S. Treasury Notes, 0.375%, 10/31/16 1.59
--------------------------------------------------------------------------------
8. Mexican Udibonos, 3.5%, 12/14/17 1.49
--------------------------------------------------------------------------------
9. Romania Government Bond, 5.95%, 6/11/21 1.48
--------------------------------------------------------------------------------
10. Poland Government Bond, 5.25%, 10/25/17 1.29
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
10 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
Prices and Distributions | 10/31/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/14 10/31/13
--------------------------------------------------------------------------------
A $10.91 $10.98
--------------------------------------------------------------------------------
C $10.94 $11.01
--------------------------------------------------------------------------------
Y $11.00 $11.07
--------------------------------------------------------------------------------
Distributions per Share: 11/1/13-10/31/14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.3470 $-- $0.0621
--------------------------------------------------------------------------------
C $0.2496 $-- $0.0621
--------------------------------------------------------------------------------
Y $0.3777 $-- $0.0621
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Barclays Global Aggregate Bond Index is an unmanaged index that provides a
broad-based measure of the global investment-grade fixed-income markets. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Fund returns, do not reflect any fees, expenses or sales charges. It is not
possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 12-14.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 11
Performance Update | 10/31/14 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Global Multisector Income Fund at
public offering price during the periods shown, compared to that of the Barclays
Global Aggregate Bond Index.
Average Annual Total Returns
(As of October 31, 2014)
--------------------------------------------------------------------------------
Barclays
Net Public Global
Asset Offering Aggregate
Value Price Bond
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life-of-Class
(12/27/07) 4.91% 4.21% 3.95%
5 Years 3.79 2.84 2.59
1 Year 3.16 -1.51 0.22
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.05% 1.00%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Multisector Barclays Global
Income Fund Aggregate Bond Index
12/31/2007 $ 9,550 $ 10,000
10/31/2008 $ 9,100 $ 9,589
10/31/2009 $ 11,064 $ 11,354
10/31/2010 $ 11,861 $ 12,136
10/31/2011 $ 12,243 $ 12,631
10/31/2012 $ 12,975 $ 13,078
10/31/2013 $ 12,918 $ 12,876
10/31/2014 $ 13,326 $ 12,905
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2015, for Class A shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
Performance Update | 10/31/14 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Global Multisector Income Fund
during the periods shown, compared to that of the Barclays Global Aggregate Bond
Index.
Average Annual Total Returns
(As of October 31, 2014)
--------------------------------------------------------------------------------
Barclays
Global
Aggregate
If If Bond
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(12/27/07) 4.04% 4.04% 3.95%
5 Years 2.95 2.95 2.59
1 Year 2.24 2.24 0.22
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.75% 1.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Barclays Global
Multisector Income Fund Aggregate Bond Index
12/31/2007 $ 10,000 $ 10,000
10/31/2008 $ 9,452 $ 9,589
10/31/2009 $ 11,395 $ 11,354
10/31/2010 $ 12,130 $ 12,136
10/31/2011 $ 12,420 $ 12,631
10/31/2012 $ 13,053 $ 13,078
10/31/2013 $ 12,891 $ 12,876
10/31/2014 $ 13,179 $ 12,905
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2015, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 13
Performance Update | 10/31/14 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Global Multisector Income Fund
during the periods shown, compared to that of the Barclays Global Aggregate Bond
Index.
Average Annual Total Returns
(As of October 31, 2014)
--------------------------------------------------------------------------------
Barclays
Global
Aggregate
If If Bond
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(12/27/07) 5.14% 5.14% 3.95%
5 Years 4.07 4.07 2.59
1 Year 3.42 3.42 0.22
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.57% 0.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global Barclays Global
Multisector Income Fund Aggregate Bond Index
12/31/2007 $ 5,000,000 $ 5,000,000
10/31/2008 $ 4,767,893 $ 4,794,284
10/31/2009 $ 5,801,982 $ 5,677,007
10/31/2010 $ 6,235,980 $ 6,068,024
10/31/2011 $ 6,464,208 $ 6,315,276
10/31/2012 $ 6,867,704 $ 6,538,894
10/31/2013 $ 6,850,412 $ 6,438,203
10/31/2014 $ 7,084,387 $ 6,452,328
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2015, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
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 Multisector Income Fund
Based on actual returns from May 1, 2014 through October 31, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 5/1/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 10/31/14 $1,012.46 $1,006.99 $1,012.83
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.12 $ 9.66 $ 3.86
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.01%,
1.91%, and 0.76% for Class A, Class C, and Class Y shares respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the partial year period).
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global Multisector Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2014 through October 31, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 5/1/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 10/31/14 $1,020.11 $1,015.58 $1,021.37
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.14 $ 9.70 $ 3.87
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.01%,
1.91%, and 0.76% for Class A, Class C, and Class Y shares respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the partial year period).
16 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
Schedule of Investments | 10/31/14
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 0.6%
CAPITAL GOODS -- 0.1%
Electrical Components & Equipment -- 0.1%
56,000 General Cable Corp., 4.5%,
11/15/29 (Step) $ 36,995
--------------
Total Capital Goods $ 36,995
-----------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.2%
Homebuilding -- 0.2%
50,000 KB Home, 1.375%, 2/1/19 $ 48,219
--------------
Total Consumer Durables & Apparel $ 48,219
-----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Equipment -- 0.3%
59,000 Hologic, Inc., 2.0%, 12/15/37 (Step) $ 73,566
--------------
Total Health Care Equipment & Services $ 73,566
-----------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $165,233) $ 158,780
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 1.9%
BANKS -- 1.4%
Diversified Banks -- 1.2%
5,917 7.88 Citigroup Capital XIII, Floating Rate Note,
10/30/40 $ 157,511
3,000 7.12 Citigroup, Inc., Floating Rate Note (Perpetual) 81,180
4,350 6.00 US Bancorp, Floating Rate Note (Perpetual) 117,711
--------------
$ 356,402
-----------------------------------------------------------------------------------------------------
Regional Banks -- 0.2%
500 6.25 CoBank ACB, Floating Rate Note (Perpetual)
(144A) $ 52,266
--------------
Total Banks $ 408,668
-----------------------------------------------------------------------------------------------------
Diversified Financials -- 0.2%
Consumer Finance -- 0.1%
850 8.12 GMAC Capital Trust I, Floating Rate
Note, 2/15/40 $ 22,720
-----------------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.1%
1,000 5.90 State Street Corp., Floating Rate Note, 12/31/73 $ 26,100
--------------
Total Diversified Financials $ 48,820
-----------------------------------------------------------------------------------------------------
INSURANCE -- 0.3%
Property & Casualty Insurance -- 0.2%
2,225 5.10 The Allstate Corp., Floating Rate Note, 1/15/53 $ 54,690
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 17
Schedule of Investments | 10/31/14 (continued)
-----------------------------------------------------------------------------------------------------
Floating
Rate (b)
Shares (unaudited) Value
-----------------------------------------------------------------------------------------------------
Reinsurance -- 0.1%
30,000 Pangaea Re, 0.0, 7/1/18 (Cat Bond) $ 31,404
--------------
Total Insurance $ 86,094
-----------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $514,693) $ 543,582
-----------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 0.3%
BANKS -- 0.3%
Diversified Banks -- 0.3%
80 Wells Fargo & Co., 7.5% (Perpetual) $ 96,320
-----------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $83,502) $ 96,320
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Principal
Amount ($)
-----------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 2.4%
FOOD & STAPLES RETAILING -- 0.2%
Food Retail -- 0.2%
48,875 CKE Restaurant Holdings, Inc., 4.474%,
3/20/43 (144A) $ 49,773
--------------
Total Food & Staples Retailing $ 49,773
-----------------------------------------------------------------------------------------------------
BANKS -- 1.5%
Thrifts & Mortgage Finance -- 1.5%
4,162 BCMSC Trust 1998-A, 6.65%, 4/15/28 $ 4,183
65,662 Bear Stearns Asset Backed Securities Trust,
8.41%, 10/25/29 (Step) 66,915
38,731 Citicorp Residential Mortgage Trust Series 2006-3,
5.703%, 11/25/36 (Step) 40,972
2,751 0.52 Countrywide Asset-Backed Certificates, Floating
Rate Note, 1/25/36 2,749
24,280 5.07 Countrywide Asset-Backed Certificates, Floating
Rate Note, 12/25/35 24,670
10,666 4.46 CWABS Asset-Backed Certificates Trust 2005-4,
Floating Rate Note, 9/27/32 10,674
17,085 0.55 First NLC Trust 2005-2, Floating Rate Note,
10/25/35 16,986
8,924 Irwin Home Equity Loan Trust 2005-1, 5.32%,
6/25/35 (Step) 8,769
50,000 5.50 Mastr Specialized Loan Trust, Floating Rate Note,
10/25/34 51,368
9,559 0.85 New Century Home Equity Loan Trust 2005-1,
Floating Rate Note, 3/25/35 9,566
12,282 5.91 Origen Manufactured Housing Contract Trust
2004-A, Floating Rate Note, 1/15/35 12,975
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
100,000 Springleaf Funding Trust 2013-A, 2.58%,
9/15/21 (144A) $ 100,686
4,109 Structured Asset Securities Corp., 4.77%,
10/25/34 (Step) 4,267
59,029 Terwin Mortgage Trust Series TMTS 2005-16HE,
4.761%, 9/25/36 (Step) 61,314
--------------
$ 416,094
--------------
Total Banks $ 416,094
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.7%
Other Diversified Financial Services -- 0.2%
50,000 Capital Auto Receivables Asset Trust/Ally,
1.74%, 10/22/18 $ 50,122
-----------------------------------------------------------------------------------------------------
Specialized Finance -- 0.3%
96,625 Domino's Pizza Master Issuer LLC, 5.216%,
1/25/42 (144A) $ 101,990
-----------------------------------------------------------------------------------------------------
Consumer Finance -- 0.2%
25,000 First Investors Auto Owner Trust 2013-1, 2.02%,
1/15/19 (144A) $ 25,088
30,000 Santander Drive Auto Receivables Trust 2012-1,
3.78%, 11/15/17 30,493
--------------
$ 55,581
--------------
Total Diversified Financials $ 207,693
-----------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $653,798) $ 673,560
-----------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 8.3%
BANKS -- 6.2%
Thrifts & Mortgage Finance -- 6.2%
7,269 0.60 Alternative Loan Trust 2003-14T1, Floating Rate
Note, 8/25/18 $ 6,903
10,399 Alternative Loan Trust 2004-4CB,
4.25%, 4/25/34 10,606
7,885 0.60 Banc of America Alternative Loan Trust
2003-10, Floating Rate Note, 12/25/33 7,803
17,857 Banc of America Alternative Loan Trust
2003-2, 5.75%, 4/25/33 18,509
49,188 Banc of America Alternative Loan Trust
2003-7, 5.5%, 9/25/33 51,204
17,183 Banc of America Alternative Loan Trust
2004-10, 5.5%, 11/25/19 17,350
14,092 Banc of America Alternative Loan Trust
2004-6, 5.0%, 7/25/19 14,500
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 19
Schedule of Investments | 10/31/14 (continued)
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
13,221 Banc of America Mortgage Trust 2004-11,
5.75%, 1/25/35 $ 13,440
11,879 Banc of America Mortgage Trust 2004-9, 5.5%,
11/25/34 12,082
73,935 Bayview Commercial Asset Trust 2007-4,
3.515649%, 9/25/37 (Step) (144A) (d) 3,874
114,318 Bayview Commercial Asset Trust 2007-2,
0.0%, (Step) (144A) --
8,555 2.60 CHL Mortgage Pass-Through Trust 2003-56,
Floating Rate Note, 12/25/33 8,581
26,686 0.32 Citigroup Commercial Mortgage Trust 2007-FL3,
Floating Rate Note, 4/15/22 (144A) 26,549
23,345 Citigroup Mortgage Loan Trust, Inc., 6.75%,
9/25/34 25,731
100,000 4.65 City Center Trust 2011-CCHP, Floating Rate Note,
7/15/28 (144A) 99,880
100,000 COMM 2012-LC4 Mortgage Trust, 4.063%,
12/12/44 105,452
50,000 COMM 2013-LC6 Mortgage Trust, 2.941%,
1/12/46 49,670
34,396 Credit Suisse Commercial Mortgage Trust
Series 2007-C1, 5.361%, 2/15/40 36,556
1,961 1.50 Credit Suisse First Boston Mortgage Securities
Corp., Floating Rate Note, 12/25/33 1,959
100,000 5.42 DBUBS 2011-LC3 Mortgage Trust, Floating Rate
Note, 8/12/44 (144A) 112,330
99,760 1.04 Government National Mortgage Association
REMICS, Floating Rate Note, 11/16/54 (d) 9,185
50,000 GS Mortgage Securities Corp., II, 3.377%, 5/10/45 51,706
25,000 GS Mortgage Securities Corp., II, 3.682%,
2/10/46 (144A) 25,113
50,000 GS Mortgage Securities Corp., II, 5.56%, 11/10/39 53,348
66,450 2.33 GSR Mortgage Loan Trust 2003-9, Floating Rate
Note, 8/25/33 67,463
41,833 0.51 JP Morgan Chase Commercial Mortgage Securities
Trust 2006-FL2, Floating Rate Note,
11/15/18 (144A) 40,369
35,000 JP Morgan Chase Commercial Mortgage Securities
Trust 2011-C5, 4.1712%, 8/17/46 37,946
12,960 2.49 JP Morgan Mortgage Trust 2004-A1, Floating Rate
Note, 2/25/34 13,196
103,305 2.61 JP Morgan Mortgage Trust 2004-A2, Floating Rate
Note, 5/25/34 101,662
17,107 JP Morgan Mortgage Trust 2004-S1, 5.0%, 9/25/34 17,794
14,686 JP Morgan Mortgage Trust 2004-S1, 6.0%, 9/25/34 15,460
4 MASTR Alternative Loan Trust 2004-13, 4.5%,
1/25/15 4
39,485 MASTR Alternative Loan Trust 2004-6, 6.0%,
7/25/34 40,195
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
44,689 6.62 MASTR Seasoned Securitization Trust 2005-1,
Floating Rate Note, 9/25/32 $ 47,256
75,000 5.48 ML-CFC Commercial Mortgage Trust 2006-3,
Floating Rate Note, 7/12/46 76,678
47,416 3.25 NRP Mortgage Trust 2013-1, Floating Rate Note,
7/25/43 (144A) 47,070
GBP 59,747 0.96 Paragon Secured Finance Plc, Floating Rate Note,
11/15/35 94,407
35,139 RAAC Series 2004-SP2 Trust, 6.0%, 1/25/32 35,784
12,023 0.70 RALI Series 2002-QS16 Trust, Floating Rate Note,
10/25/17 11,522
6,545 RALI Series 2004-QS1 Trust, 4.25%, 1/25/34 6,550
1,673 0.70 RALI Series 2004-QS1 Trust, Floating Rate Note,
1/25/34 1,671
22,193 RALI Series 2004-QS13 Trust, 5.0%, 9/25/19 22,678
21,624 1.55 RESI Finance LP, Floating Rate Note, 9/10/35
(144A) 18,823
4,924 Residential Asset Securitization Trust 2004-A10,
5.5%, 2/25/35 4,994
18,919 Residential Asset Securitization Trust 2004-A9,
5.75%, 12/25/34 19,715
EURO 69,654 0.50 RHG Mortgage Securities Pty, Ltd., Floating Rate
Note, 7/21/35 87,164
AUD 7,332 3.52 RHG Mortgage Securities Pty, Ltd., Floating Rate
Note, 7/21/35 6,442
25,217 0.38 Sequoia Mortgage Trust 2005-2, Floating Rate
Note, 3/20/35 23,267
22,902 2.50 Sequoia Mortgage Trust 2013-4, Floating Rate
Note, 4/25/43 21,793
32,591 2.69 Structured Asset Securities Corp., Mortgage
Certificates Series 2003-31A, Floating Rate
Note, 10/25/33 32,263
50,000 TimberStar Trust 1 REMICS, 5.668%, 10/15/36
(144A) 53,694
50,025 2.40 WaMu Mortgage Pass-Through Certificates,
Floating Rate Note, 1/25/35 50,224
4,962 Wells Fargo Mortgage Backed Securities 2006-16
Trust, 5.0%, 11/25/36 5,124
--------------
$ 1,763,539
--------------
Total Banks $ 1,763,539
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.5%
Specialized Finance -- 0.5%
EURO 100,000 1.33 Permanent Master Issuer Plc, Floating
Rate Note, 7/15/42 $ 125,872
--------------
Total Diversified Financials $ 125,872
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 21
Schedule of Investments | 10/31/14 (continued)
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
GOVERNMENT -- 1.6%
1,944 Federal Home Loan Mortgage Corp. REMICS,
5.0%, 6/15/34 $ 1,950
100,000 4.30 Federal Home Loan Mortgage Corp., Floating
Rate Note, 9/26/44 (144A) 103,203
15,974 Federal National Mortgage Association REMICS,
4.5%, 6/25/29 17,425
6,077 Federal National Mortgage Association REMICS,
6.0%, 3/25/35 6,129
45,000 5.19 FREMF Mortgage Trust 2010-K9 REMICS, Floating
Rate Note, 9/25/45 (144A) 49,722
25,000 4.35 FREMF Mortgage Trust 2011-K12, Floating Rate
Note, 1/25/46 (144A) 26,473
25,000 4.94 FREMF Mortgage Trust 2011-K702, Floating Rate
Note, 4/25/44 (144A) 26,763
50,000 4.88 FREMF Mortgage Trust 2011-K703, Floating Rate
Note, 7/25/44 (144A) 53,728
25,000 4.44 FREMF Mortgage Trust Class B, Floating Rate Note,
7/25/48 (144A) 26,306
50,000 Government National Mortgage Association,
4.5%, 9/20/39 54,284
16,164 Government National Mortgage Association,
5.25%, 8/16/35 17,988
237,683 1.01 Government National Mortgage Association,
Floating Rate Note, 2/16/53 (d) 17,666
274,694 1.04 Government National Mortgage Association,
Floating Rate Note, 8/16/52 (d) 17,342
330,693 1.05 Government National Mortgage Association,
Floating Rate Note, 9/16/52 (d) 25,462
--------------
$ 444,441
--------------
Total Government $ 444,441
-----------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $2,285,148) $ 2,333,852
-----------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 31.6%
ENERGY -- 5.0%
Oil & Gas Drilling -- 0.5%
25,000 Pride International, Inc., 6.875%, 8/15/20 $ 29,223
100,000 Rowan Companies, Inc., 4.75%, 1/15/24 99,589
--------------
$ 128,812
-----------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.2%
25,000 Weatherford International, Ltd., Bermuda,
5.95%, 4/15/42 $ 26,460
25,000 Weatherford International, Ltd., Bermuda,
9.625%, 3/1/19 31,947
--------------
$ 58,407
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 1.0%
MXN 3,730,000 Petroleos Mexicanos, 7.19%, 9/12/24 (144A) $ 280,568
-----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.6%
25,000 Carrizo Oil & Gas, Inc., 7.5%, 9/15/20 (144A) $ 25,250
50,000 Carrizo Oil & Gas, Inc., 8.625%, 10/15/18 52,000
50,000 EP Energy LLC, 9.375%, 5/1/20 54,625
45,000 Freeport-McMoran Oil & Gas LLC, 6.75%, 2/1/22 49,838
90,000 Linn Energy LLC, 6.25%, 11/1/19 82,800
51,000 Linn Energy LLC, 8.625%, 4/15/20 51,128
23,000 Marathon Oil Corp., 5.9%, 3/15/18 25,974
100,000 Range Resources Corp., 5.0%, 3/15/23 104,500
--------------
$ 446,115
-----------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.4%
90,000 EnLink Midstream Partners LP, 4.4%, 4/1/24 $ 94,713
21,000 Valero Energy Corp., 9.375%, 3/15/19 26,790
--------------
$ 121,503
-----------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.2%
25,000 Buckeye Partners LP, 6.05%, 1/15/18 $ 27,843
25,000 DCP Midstream LLC, 9.75%, 3/15/19 (144A) 31,980
50,000 5.85 DCP Midstream LLC, Floating Rate Note,
5/21/43 (144A) 49,375
70,000 Kinder Morgan Energy Partners LP, 4.15%, 3/1/22 71,550
25,000 Plains All American Pipeline LP, 6.125%, 1/15/17 27,580
10,000 Questar Pipeline Co., 5.83%, 2/1/18 11,159
25,000 Spectra Energy Capital LLC, 6.2%, 4/15/18 28,247
10,000 Spectra Energy Capital LLC, 6.75%, 7/15/18 11,373
60,000 Sunoco Logistics Partners Operations LP, 6.1%,
2/15/42 67,815
13,000 The Williams Companies, Inc., 7.75%, 6/15/31 15,159
--------------
$ 342,081
-----------------------------------------------------------------------------------------------------
Coal & Consumable Fuels -- 0.1%
45,000 Alpha Natural Resources, Inc., 6.0%, 6/1/19 $ 22,500
25,000 Berau Coal Energy Tbk PT, 7.25%, 3/13/17 (144A) 17,125
--------------
$ 39,625
--------------
Total Energy $ 1,417,111
-----------------------------------------------------------------------------------------------------
MATERIALS -- 2.4%
Diversified Chemicals -- 0.1%
20,000 Eastman Chemical Co., 4.8%, 9/1/42 $ 19,906
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 23
Schedule of Investments | 10/31/14 (continued)
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Construction Materials -- 1.2%
150,000 Cemex SAB de CV, 5.875%, 3/25/19 (144A) $ 155,438
30,000 Holcim US Finance Sarl & Cie SCS, 6.0%,
12/30/19 (144A) 34,640
150,000 Union Andina de Cementos SAA, 5.875%,
10/30/21 (144A) 152,280
--------------
$ 342,358
-----------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.3%
35,000 Freeport-McMoRan, Inc., 3.875%, 3/15/23 $ 34,593
50,000 Volcan Cia Minera SAA, 5.375%, 2/2/22 (144A) 49,562
--------------
$ 84,155
-----------------------------------------------------------------------------------------------------
Gold -- 0.2%
35,000 AngloGold Ashanti Holdings Plc, 5.375%, 4/15/20 $ 34,587
35,000 Goldcorp, Inc., 3.7%, 3/15/23 33,728
--------------
$ 68,315
-----------------------------------------------------------------------------------------------------
Steel -- 0.6%
50,000 EVRAZ Plc, 7.50%, 11/15/19 $ 50,000
25,000 Glencore Funding LLC, 4.125%, 5/30/23 (144A) 24,901
100,000 Metinvest BV, 10.25%, 5/20/15 (144A) 79,520
--------------
$ 154,421
--------------
Total Materials $ 669,155
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 1.5%
Building Products -- 0.7%
30,000 Building Materials Corp of America, 5.375%,
11/15/24 (144A) $ 30,075
25,000 Masco Corp., 5.95%, 3/15/22 27,500
85,000 Masco Corp., 7.125%, 3/15/20 97,112
50,000 5.75 Stanley Black & Decker, Inc., Floating Rate Note,
12/15/53 53,875
--------------
$ 208,562
-----------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.1%
25,000 WireCo WorldGroup, Inc., 9.5%, 5/15/17 $ 25,500
-----------------------------------------------------------------------------------------------------
Construction & Farm Machinery &
Heavy Trucks -- 0.3%
60,000 Cummins, Inc., 5.65%, 3/1/98 $ 69,148
10,000 Cummins, Inc., 6.75%, 2/15/27 12,714
--------------
$ 81,862
-----------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.0%+
7,000 Valmont Industries, Inc., 6.625%, 4/20/20 $ 8,278
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.4%
55,000 Aviation Capital Group Corp., 6.75%, 4/6/21
(144A) $ 62,700
40,000 GATX Corp., 6.0%, 2/15/18 44,729
--------------
$ 107,429
--------------
Total Capital Goods $ 431,631
-----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.6%
Airlines -- 1.0%
97,615 Air Canada 2013-1 Class A Pass Through Trust,
4.125%, 11/15/26 (144A) $ 98,103
10,877 Delta Air Lines 2010-2 Class A Pass Through Trust,
4.95%, 5/23/19 11,583
75,000 United Airlines 2013-1 Class B Pass Through Trust,
5.375%, 8/15/21 75,750
100,000 US Airways 2013-1 Class A Pass Through Trust,
3.95%, 5/15/27 100,750
--------------
$ 286,186
-----------------------------------------------------------------------------------------------------
Railroads -- 0.1%
25,000 Burlington Northern Santa Fe LLC, 5.75%, 3/15/18 $ 28,383
-----------------------------------------------------------------------------------------------------
Airport Services -- 0.5%
150,000 Aguila 3 SA, 7.875%, 1/31/18 (144A) $ 150,375
--------------
Total Transportation $ 464,944
-----------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.1%
Home Furnishings -- 0.1%
25,000 Mohawk Industries, Inc., 3.85%, 2/1/23 $ 25,274
--------------
Total Consumer Durables & Apparel $ 25,274
-----------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.6%
Casinos & Gaming -- 0.3%
50,000 GLP Capital LP, 4.375%, 11/1/18 $ 51,375
25,000 International Game Technology, 7.5%, 6/15/19 27,686
--------------
$ 79,061
-----------------------------------------------------------------------------------------------------
Education Services -- 0.3%
25,000 Bowdoin College, 4.693%, 7/1/12 $ 24,428
75,000 Tufts University, 5.017%, 4/15/12 82,414
--------------
$ 106,842
--------------
Total Consumer Services $ 185,903
-----------------------------------------------------------------------------------------------------
MEDIA -- 0.1%
Cable & Satellite -- 0.1%
25,000 British Sky Broadcasting Group Plc, 6.1%,
2/15/18 (144A) $ 28,126
--------------
Total Media $ 28,126
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 25
Schedule of Investments | 10/31/14 (continued)
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
RETAILING -- 0.2%
Internet Retail -- 0.2%
50,000 Expedia, Inc., 5.95%, 8/15/20 $ 55,750
--------------
Total Retailing $ 55,750
-----------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.0%+
Drug Retail -- 0.0%+
13,582 CVS Pass-Through Trust, 5.773%, 1/10/33 (144A) $ 15,587
--------------
Total Food & Staples Retailing $ 15,587
-----------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.5%
Brewers -- 0.1%
20,000 Anheuser-Busch InBev Worldwide, Inc., 7.75%,
1/15/19 $ 24,254
-----------------------------------------------------------------------------------------------------
Agricultural Products -- 0.2%
50,000 Viterra, Inc., 5.95%, 8/1/20 (144A) $ 56,154
-----------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 1.1%
50,000 B&G Foods, Inc., 4.625%, 6/1/21 $ 49,125
70,000 Kraft Foods Group, Inc., 3.5%, 6/6/22 71,641
32,000 Mondelez International, Inc., 6.5%, 2/9/40 40,739
150,000 Post Holdings, Inc., 7.375%, 2/15/22 153,750
--------------
$ 315,255
-----------------------------------------------------------------------------------------------------
Tobacco -- 0.1%
20,000 Lorillard Tobacco Co., 3.75%, 5/20/23 $ 19,899
--------------
Total Food, Beverage & Tobacco $ 415,562
-----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Technology -- 0.3%
75,000 MedAssets, Inc., 8.0%, 11/15/18 $ 77,812
--------------
Total Health Care Equipment & Services $ 77,812
-----------------------------------------------------------------------------------------------------
BANKS -- 5.1%
Diversified Banks -- 4.4%
200,000 9.25 Access Bank Plc, Floating Rate Note, 2/15/28
(144A) $ 201,000
EURO 50,000 AXA Bank Europe SCF, 3.5%, 11/5/20 73,514
15,000 5.95 Citigroup, Inc., Floating Rate Note (Perpetual) 14,906
AUD 100,000 Cooperatieve Centrale Raiffeisen-Boerenleenbank
BA Australia, 6.0%, 10/29/15 90,288
75,000 Cooperatieve Centrale Raiffeisen-Boerenleenbank
BA Netherlands, 3.875%, 2/8/22 78,999
100,000 Export-Import Bank of Korea, 5.875%, 1/14/15 101,017
INR 700,000 Inter-American Development Bank, 6.0%, 9/5/17 11,503
AUD 185,000 International Bank for Reconstruction &
Development, 5.75%, 10/21/19 180,391
100,000 Intesa Sanpaolo S.p.A., 6.5%, 2/24/21 (144A) 116,033
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Diversified Banks -- (continued)
NZD 100,000 JPMorgan Chase & Co., 4.25%, 11/2/18 $ 76,495
100,000 Macquarie Bank, Ltd., 6.625%, 4/7/21 (144A) 114,795
100,000 Merrill Lynch & Co., Inc., 7.75%, 5/14/38 138,301
50,000 4.50 Scotiabank Peru SAA, Floating Rate Note,
12/13/27 (144A) 48,625
--------------
$ 1,245,867
-----------------------------------------------------------------------------------------------------
Regional Banks -- 0.7%
65,000 4.45 The PNC Financial Services Group, Inc., Floating
Rate Note (Perpetual) $ 65,081
115,000 6.75 The PNC Financial Services Group, Inc., Floating
Rate Note (Perpetual) 125,522
--------------
$ 190,603
--------------
Total Banks $ 1,436,470
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.2%
Other Diversified Financial Services -- 1.0%
25,000 Carlyle Holdings II Finance LLC, 5.625%,
3/30/43 (144A) $ 28,261
INR 850,000 European Bank for Reconstruction & Development,
6.0%, 3/3/16 13,897
INR 700,000 European Bank for Reconstruction & Development,
7.65%, 2/18/15 11,392
100,000 7.12 General Electric Capital Corp., Floating Rate Note
(Perpetual) 116,500
125,000 5.15 JPMorgan Chase & Co., Floating Rate Note (Perpetual) 118,438
--------------
$ 288,488
-----------------------------------------------------------------------------------------------------
Specialized Finance -- 0.6%
100,000 BM&FBovespa SA, 5.5%, 7/16/20 (144A) $ 107,250
56,000 Cantor Fitzgerald LP, 7.875%, 10/15/19 (144A) 61,716
--------------
$ 168,966
-----------------------------------------------------------------------------------------------------
Consumer Finance -- 0.6%
INR 9,500,000 International Finance Corp., 8.25%, 6/10/21 $ 170,511
-----------------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.4%
100,000 KKR Group Finance Co., II LLC, 5.5%, 2/1/43 (144A) $ 109,677
-----------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.6%
10,000 Macquarie Group, Ltd., 6.0%, 1/14/20 (144A) $ 11,276
75,000 Morgan Stanley, 4.1%, 5/22/23 75,700
50,000 Morgan Stanley, 4.875%, 11/1/22 53,248
25,000 Raymond James Financial, Inc., 4.25%, 4/15/16 26,160
--------------
$ 166,384
--------------
Total Diversified Financials $ 904,026
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 27
Schedule of Investments | 10/31/14 (continued)
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
INSURANCE -- 2.7%
Life & Health Insurance -- 0.6%
45,000 Protective Life Corp., 7.375%, 10/15/19 $ 54,818
100,000 5.88 Prudential Financial, Inc., Floating Rate
Note, 9/15/42 106,000
--------------
$ 160,818
-----------------------------------------------------------------------------------------------------
Multi-line Insurance -- 0.3%
60,000 AXA SA, 8.6%, 12/15/30 $ 80,775
-----------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.8%
35,000 Delphi Financial Group, Inc., 7.875%, 1/31/20 $ 41,677
20,000 OneBeacon US Holdings, Inc., 4.6%, 11/9/22 20,705
110,000 6.50 The Allstate Corp., Floating Rate Note, 5/15/57 121,756
50,000 The Hanover Insurance Group, Inc.,
7.5%, 3/1/20 59,209
--------------
$ 243,347
-----------------------------------------------------------------------------------------------------
Reinsurance -- 1.0%
50,000 N/A Altair Re, Floating Rate Note, 6/30/16
(Cat Bond) $ 53,730
50,000 Montpelier Re Holdings, Ltd., 4.7%, 10/15/22 52,257
40,000 Platinum Underwriters Finance, Inc., 7.5%, 6/1/17 44,895
95,000 7.51 Sirius International Group, Ltd., Floating Rate
Note (Perpetual) (144A) 99,747
25,000 5.88 Wilton Re Finance LLC, Floating Rate Note,
3/30/33 (144A) 26,000
--------------
$ 276,629
--------------
Total Insurance $ 761,569
-----------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.0%
Diversified REIT -- 0.1%
20,000 Digital Realty Trust LP, 4.5%, 7/15/15 $ 20,320
10,000 Hospitality Properties Trust, 5.0%, 8/15/22 10,542
--------------
$ 30,862
-----------------------------------------------------------------------------------------------------
Health Care REIT -- 0.2%
45,000 Senior Housing Properties Trust, 6.75%, 4/15/20 $ 51,386
-----------------------------------------------------------------------------------------------------
Office REIT -- 0.7%
40,000 Alexandria Real Estate Equities, Inc., 4.6%, 4/1/22 $ 42,194
25,000 Corporate Office Properties LP, 3.6%, 5/15/23 24,073
50,000 DuPont Fabros Technology LP, 5.875%, 9/15/21 52,000
35,000 Highwoods Realty LP, 3.625%, 1/15/23 34,864
50,000 Piedmont Operating Partnership LP, 3.4%, 6/1/23 48,370
--------------
$ 201,501
--------------
Total Real Estate $ 283,749
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.5%
Internet Software & Services -- 0.3%
100,000 Bankrate, Inc., 6.125%, 8/15/18 (144A) $ 98,000
-----------------------------------------------------------------------------------------------------
Home Entertainment Software -- 0.2%
50,000 Activision Blizzard, Inc., 6.125%, 9/15/23 (144A) $ 54,125
--------------
Total Software & Services $ 152,125
-----------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.4%
Electronic Manufacturing Services -- 0.4%
100,000 Flextronics International, Ltd., 4.625%, 2/15/20 $ 101,500
--------------
Total Technology Hardware & Equipment $ 101,500
-----------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.2%
Semiconductor Equipment -- 0.2%
25,000 Entegris, Inc., 6.0%, 4/1/22 (144A) $ 25,438
25,000 KLA-Tencor Corp., 6.9%, 5/1/18 28,945
--------------
$ 54,383
--------------
Total Semiconductors & Semiconductor
Equipment $ 54,383
-----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.1%
Integrated Telecommunication Services -- 1.3%
COP 124,000,000 Empresa de Telecomunicaciones de Bogota,
7.0%, 1/17/23 (144A) $ 56,774
30,000 Frontier Communications Corp., 8.5%, 4/15/20 34,575
50,000 GCI, Inc., 6.75%, 6/1/21 49,750
45,000 GTP Acquisition Partners I LLC, 4.347%, 6/15/16
(144A) 45,988
EURO 50,000 Telefonica Emisiones SAU, 5.496%, 4/1/16 67,096
25,000 Unison Ground Lease Funding LLC, 2.981%,
3/16/43 (144A) 25,248
38,000 Verizon Communications, Inc., 5.012%, 8/21/54
(144A) 38,669
40,000 Verizon Communications, Inc., 6.55%, 9/15/43 50,424
--------------
$ 368,524
-----------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.8%
30,000 Crown Castle Towers LLC, 4.883%, 8/15/20 (144A) $ 33,108
75,000 T-Mobile USA, Inc., 6.625%, 11/15/20 79,031
RUB 5,000,000 VimpelCom Holdings BV, 9.0%, 2/13/18 (144A) 107,101
--------------
$ 219,240
--------------
Total Telecommunication Services $ 587,764
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 29
Schedule of Investments | 10/31/14 (continued)
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
UTILITIES -- 3.0%
Electric Utilities -- 1.8%
100,000 Electricite de France SA, 6.0%, 1/22/14 (144A) $ 112,274
200,000 8.13 Enel S.p.A., Floating Rate Note, 9/24/73 (144A) 233,500
70,000 Public Service Co. of New Mexico, 7.95%, 5/15/18 83,436
50,000 6.25 Southern California Edison Co., Floating Rate Note
(Perpetual) 55,042
10,000 West Penn Power Co., 5.95%, 12/15/17 (144A) 11,289
--------------
$ 495,541
-----------------------------------------------------------------------------------------------------
Gas Utilities -- 0.4%
91,407 Nakilat, Inc., 6.267%, 12/31/33 (144A) $ 103,747
-----------------------------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders -- 0.8%
200,000 Colbun SA, 4.5%, 7/10/24 (144A) $ 201,528
34,430 Panoche Energy Center LLC, 6.885%, 7/31/29
(144A) 39,278
--------------
$ 240,806
--------------
Total Utilities $ 840,094
-----------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.1%
TRY 65,000 European Investment Bank, 3/2/15 (c) $ 28,525
--------------
Total Government $ 28,525
-----------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $8,558,359) $ 8,937,060
-----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 17.2%
60,000 Fannie Mae, 3.0%, 11/18/14 $ 62,227
510,408 Fannie Mae, 3.5%, 11/18/14-5/1/44 530,222
34,401 Fannie Mae, 4.5%, 4/1/41 37,375
34,521 Fannie Mae, 5.0%, 6/1/40 38,285
746,561 Federal Home Loan Mortgage Corp., 4.0%,
1/1/44-5/1/44 792,886
92,316 Federal Home Loan Mortgage Corp., 4.5%,
6/1/41 100,024
127,429 Federal Home Loan Mortgage Corp., 5.0%,
9/1/38-10/1/38 140,792
43,430 Federal Home Loan Mortgage Corp., 6.0%,
8/1/37 49,310
118,066 Federal Home Loan Mortgage Corp., 6.5%,
1/1/38-4/1/38 141,736
166,729 Government National Mortgage Association I,
4.5%, 1/15/40-7/15/41 183,144
75,868 Government National Mortgage Association II,
4.5%, 9/20/41 83,014
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
60,000 U.S. Treasury Bonds, 4.5%, 2/15/36 $ 76,022
60,000 U.S. Treasury Bonds, 4.5%, 8/15/39 76,233
475,812 U.S. Treasury Inflation Indexed Bonds, 0.125%,
7/15/24 462,727
400,000 U.S. Treasury Notes, 0.375%, 10/31/16 399,031
1,000,000 U.S. Treasury Notes, 1.5%, 10/31/19 994,693
700,000 U.S. Treasury Notes, 2.375%, 8/15/24 702,734
--------------
$ 4,870,455
-----------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $4,777,311) $ 4,870,455
-----------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 24.9%
EURO 50,000 Austria Government Bond, 4.15%, 3/15/37
(144A) $ 90,346
200,000 Brazil Minas SPE via State of Minas Gerais,
5.333%, 2/16/28 (144A) 201,000
EURO 215,000 Bundesschatzanweisungen, 0.25%, 3/11/16 270,416
200,000 Croatia Government International Bond, 5.5%,
4/4/23 (144A) 209,376
200,000 Ecuador Government International Bond, 7.95%,
6/20/24 (144A) 209,500
GHS 10,000 Ghana Government Bond, 16.9%, 3/7/16 2,888
IDR 222,000,000 Indonesia Treasury Bond, 6.125%, 5/15/28 14,896
IDR 200,000,000 Indonesia Treasury Bond, 7.0%, 5/15/27 14,911
IDR 2,500,000,000 Indonesia Treasury Bond, 7.375%, 9/15/16 206,144
IDR 1,210,000,000 Indonesia Treasury Bond, 8.25%, 6/15/32 96,873
IDR 850,000,000 Inter-American Development Bank, 4.5%, 2/4/16 67,778
BRL 200,000 International Finance Corp., 5.0%, 12/21/15 76,067
INR 3,790,000 International Finance Corp., 7.75%, 12/3/16 62,961
EURO 35,000 Ireland Government Bond, 5.0%, 10/18/20 54,262
EURO 100,000 Italy Buoni Poliennali Del Tesoro, 4.75%, 8/1/23
(144A) 151,045
200,000 Ivory Coast Government International Bond,
5.375%, 7/23/24 (144A) 193,040
JPY 20,000,000 Japan Government Ten Year Bond, 1.0%, 12/20/21 187,706
JPY 20,000,000 Japan Government Twenty Year Bond, 1.5%, 3/20/19 188,999
MYR 507,000 Malaysia Government Bond, 3.418%, 8/15/22 149,896
MXN 2,400,000 Mexican Bonos, 6.5%, 6/9/22 186,494
MXN 300,000 Mexican Bonos, 7.5%, 6/3/27 24,606
MXN 3,527,942 Mexican Udibonos, 2.0%, 6/9/22 257,518
MXN 4,681,728 Mexican Udibonos, 3.5%, 12/14/17 375,254
NZD 600,000 New Zealand Government Bond, 5.5%, 4/15/23 516,544
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 31
Schedule of Investments | 10/31/14 (continued)
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- (continued)
NOK 1,800,000 Norway Government Bond, 2.0%, 5/24/23 $ 267,950
NOK 965,000 Norway Government Bond, 4.25%, 5/19/17 153,585
NOK 2,700,000 Norway Government Bond, 4.5%, 5/22/19 453,396
NOK 1,675,000 Norway Government Bond, 5.0%, 5/15/15 253,032
PLN 1,000,000 Poland Government Bond, 5.25%, 10/25/17 325,751
PLN 1,000,000 Poland Government Bond, 5.5%, 4/25/15 301,891
100,000 Poland Government International Bond, 4.0%,
1/22/24 105,081
NZD 100,000 Province of Ontario Canada, 6.25%, 6/16/15 78,905
AUD 100,000 Queensland Treasury Corp., 5.75%, 7/22/24 101,926
RON 770,000 Romania Government Bond, 5.85%, 4/26/23 252,053
RON 1,150,000 Romania Government Bond, 5.95%, 6/11/21 372,633
RUB 4,200,000 Russian Federal Bond -- OFZ, 7.5%, 3/15/18 90,765
GBP 70,000 United Kingdom Gilt, 4.25%, 9/7/39 138,381
GBP 75,000 United Kingdom Gilt, 8.75%, 8/25/17 145,909
200,000 Zambia Government International Bond,
5.375%, 9/20/22 (144A) 191,420
--------------
$ 7,041,198
-----------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $7,522,940) $ 7,041,198
-----------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 1.3%
Municipal Airport -- 0.1%
20,000 Indianapolis Airport Authority, 5.1%, 1/15/17 $ 21,790
-----------------------------------------------------------------------------------------------------
Municipal Development -- 0.2%
50,000 California Statewide Communities Development
Authority, 6.0%, 8/15/42 $ 60,454
-----------------------------------------------------------------------------------------------------
Municipal General -- 0.3%
70,000 JobsOhio Beverage System, 3.985%, 1/1/29 $ 71,740
20,000 JobsOhio Beverage System, 4.532%, 1/1/35 21,353
--------------
$ 93,093
-----------------------------------------------------------------------------------------------------
Municipal Higher Education -- 0.6%
25,000 Baylor University, 4.313%, 3/1/42 $ 25,071
25,000 Massachusetts Health & Educational Facilities
Authority, 5.5%, 7/1/32 34,356
25,000 Massachusetts Institute of Technology, 5.6%,
7/1/11 32,577
20,000 Permanent University Fund, 5.0%, 7/1/30 24,446
50,000 University of California, 3.38%, 5/15/28 49,703
--------------
$ 166,153
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
-----------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Municipal Medical -- 0.1%
25,000 Massachusetts Development Finance Agency,
5.25%, 4/1/37 $ 28,748
-----------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $330,882) $ 370,238
-----------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN INTEREST -- 0.1%**
TELECOMMUNICATION SERVICES -- 0.1%
Integrated Telecommunication Services -- 0.1%
42,977 3.25 West Corp., B-10 Term Loan (First Lien), 6/30/18
Total Telecommunication Services $ 42,407
-----------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTEREST
(Cost $43,643) $ 42,407
-----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 88.6%
(Cost $24,935,509) (a) $ 25,067,452
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------------
WRITTEN PUT OPTION -- (0.0)%+
(84,202) Put TRY/Call USD @ 2.95, 1/12/15 $ (1)
-----------------------------------------------------------------------------------------------------
TOTAL WRITTEN PUT OPTION
(Premiums received $(1,387)) $ (1)
-----------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 11.4% $ 3,214,318
-----------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 28,281,769
=====================================================================================================
+ Amount rounds to less than 0.1% or (0.1)%.
(Step) Step up bond issued with an initial coupon rate which converts to
a higher rate at a later date.
REIT Real Estate Investment Trust.
(Perpetual) Security with no stated maturity date.
(Cat Bond) Catastrophe bond is a high-yield debt instrument that is usually
insurance linked and meant to raise money in case of a
catastrophe.
(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, 2014, the value of these securities
amounted to $5,741,633 or 20.3% of total net assets.
** Senior floating rate loan interests in which the Fund invests
generally pay interest at rates that are periodically
redetermined by reference to a base lending rate plus a premium.
These base lending rates are generally (i) the lending rate
offered by one or more major European banks, such as LIBOR
(London InterBank Offered Rate), (ii) the prime rate offered by
one or more major United States banks, (iii) the rate of a
certificate of deposit or (iv) other base lending rates used by
commercial lenders. The rate shown is the coupon rate at
period end.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 33
Schedule of Investments | 10/31/14 (continued)
(a) At October 31, 2014, the net unrealized appreciation on
investments based on cost for federal income tax purposes of
$24,948,372 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $1,020,167
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (901,087)
----------
Net unrealized appreciation $ 119,080
==========
(b) Debt obligation with a variable interest rate. Rate shown is rate
at end of period.
(c) Security issued with a zero coupon. Income is earned through
accretion of discount.
(d) Security represents the interest only portion payments on a pool
of underlying mortgages or mortgage-backed securities.
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
AUD Australian Dollar
BRL Brazilian Real
COP Colombian Peso
EURO Euro
GBP British Pound Sterling
GHS Ghanian Cedi
IDR Indonesian Rupiah
INR Indian Rupee
JPY Japanese Yen
MXN Mexican Peso
MYR Malaysian Ringgit
NZD New Zealand Dollar
NOK Norwegian Krone
NZD New Zealand Dollar
PLN New Polish Zloty
RON Romanian New Leu
RUB Russian Ruble
TRY Turkish Lira
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2014 aggregated $13,365,536 and $12,335,457,
respectively.
CREDIT DEFAULT SWAP AGREEMENTS - SELL PROTECTION
-------------------------------------------------------------------------------------------------------
Net
Notional Obligation Credit Expiration Premiums Unrealized
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Received) Appreciation
-------------------------------------------------------------------------------------------------------
Diamond
Morgan Offshore
50,000 Stanley Co. Drilling Co. 1.00% A- 12/20/19 $(1,873) $(52)
=======================================================================================================
(1) The notional amount is the maximum amount that a seller of credit protection
would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 -- quoted prices in active markets for identical securities.
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
are categorized as Level 3. See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of October 31, 2014, in valuing
the Fund's assets:
-----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 158,780 $ -- $ 158,780
Preferred Stocks
Banks
Regional Banks -- 52,266 -- 52,266
Insurance
Reinsurance -- -- 31,404 31,404
All Other Preferred Stocks 459,912 -- -- 459,912
Convertible Preferred Stock 96,320 -- -- 96,320
Asset Backed Securities -- 673,560 -- 673,560
Collateralized Mortgage Obligations -- 2,333,852 -- 2,333,852
Corporate Bonds
Insurance
Reinsurance -- -- 53,730 53,730
All Other Corporate Bonds -- 8,883,330 -- 8,883,330
U.S. Government Agency Obligations -- 4,870,455 -- 4,870,455
Foreign Government Bonds -- 7,041,198 -- 7,041,198
Municipal Bonds -- 370,238 -- 370,238
Senior Floating Rate Loan Interest -- 42,407 -- 42,407
-----------------------------------------------------------------------------------------
Total $ 556,232 $24,426,086 $ 85,134 $25,067,452
=========================================================================================
Other Financial Instruments
Net unrealized depreciation on
futures contracts $ (18,009) $ -- $ -- $ (18,009)
Net unrealized appreciation on
written put option -- 1,386 -- 1,386
Net unrealized depreciation on
swap contracts -- (52) -- (52)
Unrealized appreciation on
forward foreign currency contracts -- 140,155 -- 140,155
Unrealized depreciation on
forward foreign currency contracts -- (43,768) -- (43,768)
-----------------------------------------------------------------------------------------
Total Other Financial Instruments $ (18,009) $ 97,721 $ -- $ 79,712
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 35
Schedule of Investments | 10/31/14 (continued)
The following is a reconciliation of assets valued using significant observable
inputs (Level 3):
---------------------------------------------------------------------------------------------
Preferred Corporate
Stocks Bonds Total
---------------------------------------------------------------------------------------------
Balance as of 10/31/13 $ 105,090 $ -- $ 105,090
Realized gain (loss)(1) 5,092 -- 5,092
Change in unrealized appreciation (depreciation)(2) (3,686) 3,905 219
Purchases 30,000 49,825 79,825
Sales (105,092) -- (105,092)
Transfers in to Level 3* -- -- --
Transfers out of Level 3* -- -- --
---------------------------------------------------------------------------------------------
Balance as of 10/31/14 $ 31,404 $ 53,730 $ 85,134
=============================================================================================
(1) Realized gain (loss) on these securities is included in the net realized
gain (loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) on investments in the
Statement of Operations.
* Transfers are calculated on the beginning of period values. During the year
ended October 31, 2014, there were no transfers between Levels 1, 2 and 3.
Net change in unrealized appreciation (depreciation) of investments still
held as of 10/31/14 $219
----
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
Statement of Assets and Liabilities | 10/31/14
ASSETS:
Investment in securities, at value (cost $24,935,509) $ 25,067,452
Cash 5,928,678
Futures collateral 22,550
Foreign currencies, at value (cost $162,804) 156,491
Receivables --
Investment securities sold 3,207
Fund shares sold 12,376
Interest 269,487
Swap receivable 1,823
Net unrealized appreciation on forward foreign currency contracts 140,155
Due from Pioneer Investment Management, Inc. 38,054
Prepaid expenses 24,341
----------------------------------------------------------------------------------------
Total assets $ 31,664,614
========================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 3,173,817
Fund shares repurchased 4,680
Dividends 40,259
Trustee fees 358
Credit default swaps, premiums received 1,873
Written options (premiums received $1,387) 1
Net unrealized depreciation on futures contracts 18,009
Net unrealized depreciation on swap contracts 52
Net unrealized depreciation on forward foreign currency contracts 43,768
Due to affiliates 26,929
Accrued expenses 73,099
----------------------------------------------------------------------------------------
Total liabilities $ 3,382,845
========================================================================================
NET ASSETS:
Paid-in capital $ 27,912,003
Distributions in excess of net investment income (90,373)
Accumulated net realized gain on investments, futures contracts,
swap contracts and foreign currency transactions 261,749
Net unrealized appreciation on investments 131,943
Net unrealized depreciation on futures contracts (18,009)
Net unrealized appreciation on written options 1,386
Net unrealized depreciation on swap contracts (52)
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 83,122
----------------------------------------------------------------------------------------
Total net assets $ 28,281,769
========================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $11,600,793/1,063,775 shares) $ 10.91
Class C (based on $4,156,328/379,903 shares) $ 10.94
Class Y (based on $12,524,648/1,138,118 shares) $ 11.00
MAXIMUM OFFERING PRICE:
Class A ($10.91 (divided by) 95.5%) $ 11.42
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 37
Statement of Operations
For the Year Ended 10/31/14
INVESTMENT INCOME:
Interest (net of foreign taxes withheld of $2,906) $1,149,163
Dividends 41,865
------------------------------------------------------------------------------------------
Total investment income $1,191,028
------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 130,098
Transfer agent fees and expenses
Class A 12,222
Class C 5,089
Class Y 701
Distribution fees
Class A 16,991
Class C 39,259
Shareholder communications expense 41,199
Administrative reimbursements 26,284
Custodian fees 33,314
Registration fees 44,439
Professional fees 74,738
Printing expense 34,027
Fees and expenses of nonaffiliated trustees 5,982
Miscellaneous 39,150
------------------------------------------------------------------------------------------
Total operating expenses $ 503,493
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (246,207)
------------------------------------------------------------------------------------------
Net operating expenses $ 257,286
------------------------------------------------------------------------------------------
Interest expense $ 2,925
------------------------------------------------------------------------------------------
Net operating expenses and interest expense $ 260,211
------------------------------------------------------------------------------------------
Net investment income $ 930,817
------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS, SWAP CONTRACTS, WRITTEN OPTIONS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 8,110
Futures contracts (57,279)
Swap contracts (51)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 138,561 $ 89,341
------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ (306,250)
Futures contracts (28,743)
Swap contracts (52)
Written options 1,386
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 147,065 $ (186,594)
------------------------------------------------------------------------------------------
Net loss on investments, futures contracts, swap contracts,
written options and foreign currency transactions $ (97,253)
------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 833,564
==========================================================================================
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/14 10/31/13
-----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 930,817 $ 950,702
Net realized gain on investments, futures contracts, swap
contracts and foreign currency transactions 89,341 136,170
Change in net unrealized appreciation (depreciation) on
investments, futures contracts, swap contracts, written
options and foreign currency transactions (186,594) (1,242,718)
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 833,564 $ (155,846)
-----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.35 and $0.29 per share, respectively) $ (215,775) $ (201,827)
Class C ($0.25 and $0.19 per share, respectively) (89,290) (71,517)
Class Y ($0.38 and $0.32 per share, respectively) (530,301) (466,944)
Net realized gain:
Class A ($0.06 and $0.17 per share, respectively) $ (39,795) $ (113,364)
Class C ($0.06 and $0.17 per share, respectively) (21,563) (60,494)
Class Y ($0.06 and $0.17 per share, respectively) (98,561) (238,175)
-----------------------------------------------------------------------------------------
Total distributions to shareowners $ (995,285) $(1,152,321)
-----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 10,994,366 $ 6,054,922
Reinvestment of distributions 266,757 320,142
Cost of shares repurchased (10,990,573) (5,463,448)
-----------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 270,550 $ 911,616
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 108,829 $ (396,551)
NET ASSETS:
Beginning of year 28,172,940 28,569,491
-----------------------------------------------------------------------------------------
End of year $ 28,281,769 $28,172,940
-----------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (90,373) $ (5,083)
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 39
Statements of Changes in Net Assets (continued)
---------------------------------------------------------------------------------------
'14 Shares '14 Amount '13 Shares '13 Amount
---------------------------------------------------------------------------------------
Class A
Shares sold 636,610 $ 6,945,753 193,258 $ 2,180,260
Reinvestment of distributions 18,155 197,869 21,726 243,127
Less shares repurchased (218,557) (2,379,129) (381,847) (4,289,342)
---------------------------------------------------------------------------------------
Net increase (decrease) 436,208 $ 4,764,493 (166,863) $(1,865,955)
=======================================================================================
Class C
Shares sold 81,364 $ 893,280 66,648 $ 752,099
Reinvestment of distributions 5,807 63,487 6,749 75,775
Less shares repurchased (56,519) (620,157) (84,082) (933,826)
---------------------------------------------------------------------------------------
Net increase (decrease) 30,652 $ 336,610 (10,685) $ (105,952)
=======================================================================================
Class Y
Shares sold 288,193 $ 3,155,333 275,954 $ 3,122,563
Reinvestment of distributions 490 5,401 111 1,240
Less shares repurchased (725,553) (7,991,287) (21,451) (240,280)
---------------------------------------------------------------------------------------
Net increase (decrease) (436,870) $(4,830,553) 254,614 $ 2,883,523
=======================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
Financial Highlights
------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/14 10/31/13 10/31/12 10/31/11 10/31/10
------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.98 $ 11.49 $ 11.22 $ 11.19 $ 10.84
------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.38 $ 0.30 $ 0.36 $ 0.34 $ 0.35
Net realized and unrealized gain (loss) on investments (0.04) (0.35) 0.29 0.01 0.41
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.34 $ (0.05) $ 0.65 $ 0.35 $ 0.76
------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.35) $ (0.29) $ (0.36) $ (0.32) $ (0.40)
Net realized gain (0.06) (0.17) (0.02) -- (0.01)
------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.41) $ (0.46) $ (0.38) $ (0.32) $ (0.41)
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.07) $ (0.51) $ 0.27 $ 0.03 $ 0.35
------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.91 $ 10.98 $ 11.49 $ 11.22 $ 11.19
==================================================================================================================
Total return* 3.16% (0.45)% 5.98% 3.22% 7.21%
Ratio of net expenses to average net assets (a) 1.01% 1.00% 1.00% 1.00% 1.00%
Ratio of net investment income (loss) to average net assets 3.57% 3.36% 3.26% 2.94% 3.26%
Portfolio turnover rate 51% 33% 29% 34% 27%
Net assets, end of period (in thousands) $11,601 $ 6,888 $ 9,128 $14,830 $ 6,235
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expense plus interest expense (a) 2.52% 2.05% 1.65% 2.07% 2.35%
Net investment income (loss) 2.06% 2.31% 2.60% 1.86% 1.91%
==================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(a) Includes interest expense of 0.01%, 0.00%, 0.00%, 0.00%, and 0.00%,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 41
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/14 10/31/13 10/31/12 10/31/11 10/31/10
------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 11.01 $ 11.51 $ 11.23 $ 11.19 $ 10.82
------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.29 $ 0.20 $ 0.26 $ 0.24 $ 0.25
Net realized and unrealized gain (loss) on investments (0.05) (0.34) 0.30 0.02 0.43
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.24 $ (0.14) $ 0.56 $ 0.26 $ 0.68
------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.25) $ (0.19) $ (0.26) $ (0.22) $ (0.30)
Net realized gain (0.06) (0.17) (0.02) -- (0.01)
------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.31) $ (0.36) $ (0.28) $ (0.22) $ (0.31)
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.07) $ (0.50) $ 0.28 $ 0.04 $ 0.37
------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.94 $ 11.01 $ 11.51 $ 11.23 $ 11.19
==================================================================================================================
Total return* 2.24% (1.24)% 5.09% 2.39% 6.45%
Ratio of net expenses to average net assets (a) 1.91% 1.90% 1.90% 1.90% 1.90%
Ratio of net investment income (loss) to average net assets 2.67% 2.46% 2.33% 2.15% 2.37%
Portfolio turnover rate 51% 33% 29% 34% 27%
Net assets, end of period (in thousands) $ 4,156 $ 3,847 $ 4,414 $ 3,555 $ 3,264
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses plus interest expense (a) 2.71% 2.75% 2.39% 2.94% 3.00%
Net investment income (loss) 1.87% 1.61% 1.84% 1.11% 1.27%
==================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(a) Includes interest expense of 0.01%, 0.00%, 0.00%, 0.00%, and 0.00%,
respectively.
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/14 10/31/13 10/31/12 10/31/11 10/31/10
------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 11.07 $ 11.59 $ 11.30 $ 11.22 $ 10.85
------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.42 $ 0.33 $ 0.39 $ 0.35 $ 0.34
Net realized and unrealized gain (loss) on investments (0.05) (0.36) 0.30 0.05 0.45
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.37 $ (0.03) $ 0.69 $ 0.40 $ 0.79
------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.38) $ (0.32) $ (0.38) $ (0.32) $ (0.41)
Net realized gain (0.06) (0.17) (0.02) -- (0.01)
------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.44) $ (0.49) $ (0.40) $ (0.32) $ (0.42)
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.07) $ (0.52) $ 0.29 $ 0.08 $ 0.37
------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.00 $ 11.07 $ 11.59 $ 11.30 $ 11.22
==================================================================================================================
Total return* 3.42% (0.25)% 6.24% 3.66% 7.48%
Ratio of net expenses to average net assets (a) 0.76% 0.75% 0.79% 0.82% 0.94%
Ratio of net investment income (loss) to average net assets 3.81% 3.58% 3.42% 3.01% 3.31%
Portfolio turnover rate 51% 33% 29% 34% 27%
Net assets, end of period (in thousands) $12,525 $17,438 $15,297 $11,160 $ 4,205
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses plus interest expense (a) 1.50% 1.57% 1.18% 1.55% 1.86%
Net investment income (loss) 3.07% 2.76% 3.04% 2.28% 2.38%
==================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(a) Includes interest expense of 0.01%, 0.00%, 0.00%, 0.00%, and 0.00%,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 43
Notes to Financial Statements | 10/31/14
1. Organization and Significant Accounting Policies
Pioneer Global Multisector Income Fund (formerly known as Pioneer Global
Aggregate Bond Fund) (the Fund) is a series of Pioneer Series Trust VII, a
Delaware statutory trust. The Fund is registered under the Investment Company
Act of 1940 as a diversified, open-end management investment company. The
investment objective of the Fund is to provide a high level of current income.
The Fund offers three classes of shares designated as Class A, Class C, and
Class Y shares. Class A, Class C, and Class Y shares were first publicly offered
on December 28, 2007. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has identical rights (based on relative
net asset values) to assets and liquidation proceeds. Share classes can bear
different rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
44 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Senior
floating rate loan interests (senior loans) are valued in accordance with
guidelines established by the Board of Trustees at the mean between the last
available bid and asked prices from one or more brokers or dealers as
obtained from Loan Pricing Corporation, an independent pricing service. If
price information is not available from Loan Pricing Corporation, or if the
price information is deemed to be unreliable, price information will be
obtained from an alternative loan interest pricing service. If no reliable
price quotes are available from either the primary or alternative pricing
service, broker quotes will be solicited. Fixed income securities are valued
at prices supplied by independent pricing services, which consider such
factors as market prices, market events, quotations from one or more
brokers, Treasury spreads, yields, maturities and ratings. Valuations may be
supplemented by dealers and other sources, as required. Equity securities
that have traded on an exchange are valued at the last sale price on the
principal exchange where they are traded. Equity securities that have not
traded on the date of valuation, or securities for which sale prices are not
available, generally are valued using the mean between the last bid and
asked prices.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
Securities or loan interests for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued by a
fair valuation team comprised of certain personnel of Pioneer Investment
Management, Inc. (PIM), the Fund's investment adviser, pursuant to
procedures adopted by the Fund's Board of Trustees. PIM's fair valuation
team uses fair value methods approved by the Valuation Committee of the
Board of Trustees. PIM's fair valuation team is responsible for monitoring
developments that may impact fair valued securities and for discussing and
assessing fair values on an ongoing basis, and at least quarterly, with the
Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may include
credit ratings, the financial condition of the company, current market
conditions and comparable securities. The Fund may use fair value methods if
it is determined that a significant event has occurred after the close of
the exchange or market on which the security trades and prior to the
determination of the Fund's net asset value. Examples of a significant event
might include political or economic news, corporate restructurings, natural
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 45
disasters, terrorist activity or trading halts. Thus, the valuation of the
Fund's securities may differ significantly from exchange prices and such
differences could be material.
At October 31, 2014, there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services or broker-dealers).
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on debt securities are accreted/amortized for
financial reporting purposes over the life of the respective securities, and
such accretion/amortization is included in interest income.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis. Dividend and
interest income are reported net of unrecoverable foreign taxes withheld at
the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in the market prices of those securities but are included
with the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation is
recorded in
46 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
the Fund's financial statements. The Fund records realized gains and losses
at the time a contract is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the
terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 6).
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of October 31, 2014, the Fund did not accrue any interest or penalties
with respect to uncertain tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years remain subject to examination by
federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences. At
October 31, 2014, the Fund reclassified $180,741 to increase distributions
in excess of net investment income and $180,741 to increase accumulated net
realized gain on investments, futures contracts, swap contracts and foreign
currency transactions to reflect permanent book/tax differences. These
adjustments have no impact on net assets or the results of operations.
The tax character of distributions paid during the years ended October 31,
2014 and October 31, 2013 were as follows:
----------------------------------------------------------------------------
2014 2013
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $835,366 $ 875,669
Long-term capital gain 159,919 276,652
----------------------------------------------------------------------------
Total $995,285 $1,152,321
============================================================================
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 47
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2014:
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 65,050
Undistributed long-term gain 238,617
Current year dividend payable (40,259)
Unrealized appreciation 106,358
----------------------------------------------------------------------------
Total $369,766
============================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales, adjustments
related to sidecars, the mark-to-market of forward and futures contracts,
and interest accruals on preferred stock.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly-owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $861 in underwriting commissions on the sale of Class A shares during
the year ended October 31, 2014.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net investment
income. All dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
48 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
G. Risks
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's investments in
foreign markets and countries with limited developing markets may subject
the Fund to a greater degree of risk than investments 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 contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
The Fund invests in below investment grade (high yield) debt securities and
preferred stocks. Some of these high yield securities may be convertible
into equity securities of the issuer. Debt securities rated below investment
grade are commonly referred to as "junk bonds" and are considered
speculative. These securities involve greater risk of loss, are subject to
greater price volatility, and are less liquid, especially during periods of
economic uncertainty or change, than higher rated debt securities.
H. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
October 31, 2014 was $22,550. Subsequent payments for futures contracts
("variation margin") are paid or received by the Fund, depending on the
daily fluctuation in the value of the contracts, and are recorded by the
Fund as unrealized gains or losses. When the contract is closed, the Fund
realizes a gain or loss equal to the difference between the opening and
closing value of the contract as well as any fluctuation in foreign currency
exchange rates where applicable. Futures contracts are subject to market
risk, interest rate risk and currency exchange rate risk. Changes in value
of the contracts may not directly correlate to the changes in value of the
underlying securities. With futures, there is minimal counterparty credit
risk to the Fund since futures are exchange-traded and the exchange's
clearinghouse, as counterparty to all exchange-traded futures, guarantees
the futures against default. The average value of contracts open during the
year ended October 31, 2014 was $1,239,563.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 49
At October 31, 2014, open futures contracts were as follows:
-----------------------------------------------------------------------------------
Number of Net
Contracts Settlement Unrealized
Type Long/(Short) Month Value Depreciation
-----------------------------------------------------------------------------------
FC US Ultra Bond (CBT) 2 12/14 $ 313,625 $ (188)
US Long Bond (CBT) (4) 12/14 (564,375) (7,993)
US 10 Yr Note (CBT) (6) 12/14 (758,156) (5,531)
FC US 5 Yr Note (CBT) (5) 12/14 (597,149) (4,297)
-----------------------------------------------------------------------------------
Total (13) $(1,606,055) $(18,009)
===================================================================================
I. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. PIM is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
J. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price, upon
the exercise of the option. When the Fund writes an option, an amount equal
to the premium received by the Fund is recorded as a liability and is
subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the
underlying security in determining whether the Fund has realized a gain or
loss. The Fund as writer of an option bears the market risk of an
unfavorable change in the price of the security underlying the written
option.
The average value of contracts open during the year ended October 31, 2014
was $463. Written call option contracts outstanding at period end are listed
at the end of the Fund's schedule of investments.
The Fund held one written put option contract that was open at October 30,
2014.
50 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
Transactions in written options for the year ended October 31, 2014 are
summarized as follows:
----------------------------------------------------------------------------
Number of Contracts Premium Received
----------------------------------------------------------------------------
Options open at beginning of period -- $ --
Options opened 84,202 (1,387)
Options exercised -- --
Options closed -- --
Options expired -- --
----------------------------------------------------------------------------
Options open at end of period 84,202 $(1,387)
============================================================================
K. Purchased Options
The Fund may purchase call and put option in order to seek to increase total
return. Purchased call and put options entitle the Fund to buy and sell a
specified number of shares or units of a particular security, currency or
index at a specified price at a specific date or within a specific period of
time. Upon the purchase of a call or put option, the premium paid by the
Fund is included in the Statement of Assets and Liabilities as an
investment. All premiums are marked-to-market daily, and any unrealized
appreciation or depreciation are recorded in the Fund's financial
statements. As the purchaser of an index option, the Fund has the right to
receive a cash payment equal to any depreciation in the value of the index
below the strike price of the option (in the case of a put) or equal to any
appreciation in the value of the index over the strike price of the option
(in the case of a call) as of the valuation date of the option. Premiums
paid for purchased calls and put options which have expired are treated as
realized losses on investments in the Statement of Operations. Upon the
exercise or closing of a purchased put option, the premium is offset against
the proceeds on the sale of the underlying security or financial instrument
in order to determine the realized gain or loss on investments. Upon the
exercise or closing of a purchased call option, the premium is added to the
cost of the security or financial instrument. The risk associated with
purchasing options is limited to the premium originally paid. The average
value of purchased options open during the year ended October 31, 2014 was
$449. There were no purchased options outstanding as of October 31, 2014.
L. 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 seek to increase the Fund's income, or
to attempt to hedge the risk of default on portfolio securities. A credit
default swap index is used to hedge risk or take a position on a basket of
credit entities or indices. As a seller of protection, the Fund would be
required to
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 51
pay the notional (or other agreed-upon) value of the referenced debt
obligation to the counterparty in the event of a default by a U.S. or
foreign corporate issuer of a debt obligation, which would likely result in
a loss to the Fund. In return, the Fund would receive from the counterparty
a periodic stream of payments during the term of the contract provided that
no event of default occurred. The maximum exposure of loss to the seller
would be the notional value of the credit default swaps outstanding. If no
default occurs, the Fund would keep the stream of payments and would have no
payment obligation. The Fund may also buy credit default swap contracts in
order to hedge against the risk of default of debt securities, in which case
the Fund would function as the counterparty referenced above.
When the Fund enters into a credit default swap contract, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the right to receive a contingent payment. An upfront payment
made by the Fund, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Payments received or made as a result of a credit event or upon
termination of the contract are recognized, net of the appropriate amount of
the upfront payment, as realized gains or losses in the Statement of
Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Open credit default swap contracts at October 31, 2014 are listed in the
Schedule of Investments. The average value of swap contracts open during the
year ended October 31, 2014 was $152.
52 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
2. Management Agreement
PIM, a wholly-owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.50% of
the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund to
the extent required to reduce Fund expenses to 1.00%, 1.90% and 0.75% of the
average daily net assets attributable to Class A, Class C and Class Y shares,
respectively. Fees waived and expenses reimbursed during the year ended October
31, 2014 are reflected on the Statement of Operations. These expense limitations
are in effect through March 1, 2016. There can be no assurance that PIM will
extend the expense limitation agreement for a class of shares beyond the date
referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due from affiliates" reflected on the Statement of Assets and Liabilities is
$8,422 in management fees, administrative costs and certain other reimbursements
due to PIM at October 31, 2014.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the year ended October 31, 2014, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $37,995
Class C 2,279
Class Y 925
--------------------------------------------------------------------------------
Total: $41,199
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $18,154 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 2014.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 53
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $353 in distribution fees payable to PFD
at October 31, 2014.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to PFD. For the
year ended October 31, 2014, CDSCs in the amount of $95 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended October 31, 2014, the Fund's expenses
were not reduced under such arrangements.
6. Forward Foreign Currency Contracts
At October 31, 2014, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the year ended October 31, 2014 was $3,453,145.
54 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
Open forward foreign currency contracts at October 31, 2014 were as follows:
---------------------------------------------------------------------------------------------------------------
Quantity/
Shares Net
Currency Purchased/ Book Settlement US $ Value at Unrealized
Description Counterparty (Sold) Value Date 10/31/14 Appreciation
---------------------------------------------------------------------------------------------------------------
HUF (Hungarian
Forint) BNY Mellon (66,994,656) $ 273,658 1/6/15 $ (271,784) $ 1,874
AUD (Australian Brown Brothers
Dollar) Harriman and Co. (362,232) 333,920 12/5/14 (317,933) 15,987
EURO
(European Brown Brothers
Euro) Harriman and Co. (45,101) 58,465 12/4/14 (56,513) 1,952
JPY (Japanese Brown Brothers
Yen) Harriman and Co. (37,979,466) 371,165 11/18/14 (338,336) 32,829
NZD (New
Zealand Brown Brothers
Dollar) Harriman and Co. (348,299) 288,356 11/28/14 (270,585) 17,771
SGD (Singapore Brown Brothers
Dollar) Harriman and Co. (144,956) 114,786 12/4/14 (112,768) 2,018
CAD (Canadian
Dollar) Citibank NA (123,535) 110,050 1/9/15 (109,393) 657
CZK (Czech
Koruna) Citibank NA (13,500,000) 635,233 12/4/14 (608,123) 27,110
GBP (British
Pound
Sterling) Citibank NA (97,850) 158,969 12/4/14 (156,433) 2,536
ZAR (South
African Rand) Citibank NA (3,129,438) 282,668 12/4/14 (281,756) 912
CAD (Canadian JP Morgan
Dollar) Chase Bank (122,753) 110,130 12/15/14 (108,774) 1,356
CLP (Chilean JP Morgan
Peso) Chase Bank 58,442,092 (100,806) 11/19/14 101,405 599
EURO
(European JP Morgan
Euro) Chase Bank (96,381) 124,988 12/4/14 (120,769) 4,219
EURO
(European JP Morgan
Euro) Chase Bank (1,781,495) 2,261,813 1/14/15 (2,232,937) 28,876
KRW (South JP Morgan
Korean Won) Chase Bank (124,230,755) 115,553 12/4/14 (115,494) 59
AUD (Australian
Dollar) UBS AG (344,135) 302,350 12/5/14 (302,049) 301
NZD (New
Zealand
Dollar) UBS AG (413,856) 322,614 11/28/14 (321,515) 1,099
---------------------------------------------------------------------------------------------------------------
Total $ 140,155
===============================================================================================================
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 55
----------------------------------------------------------------------------------------------------------
Quantity/
Shares Net
Currency Purchased/ Book Settlement US $ Value at Unrealized
Description Counterparty (Sold) Value Date 10/31/14 Depreciation
----------------------------------------------------------------------------------------------------------
TRY (Turkish
Lira) Citibank NA (29,465) $ 12,720 12/15/14 $ (13,134) $ (414)
MXN (Mexican JP Morgan
Peso) Chase Bank 1,478,416 (110,130) 12/15/14 109,466 (664)
CLP (Chilean JP Morgan
Peso) Chase Bank (150,000,000) 258,198 11/19/14 (260,270) (2,072)
KRW (South JP Morgan
Korean Won) Chase Bank 356,939,382 (347,611) 12/4/14 331,836 (15,775)
PLN (New JP Morgan
Polish Zloty) Chase Bank 2,083,941 (642,069) 12/4/14 617,226 (24,843)
----------------------------------------------------------------------------------------------------------
Total $ (43,768)
==========================================================================================================
7. Assets and Liabilities Offsetting
Financial instruments subject to an enforceable master netting agreement have
been offset on the Statement of Assets and Liabilities. The following charts
show gross assets and liabilities of the Fund as of October 31, 2014.
---------------------------------------------------------------------------------------------------
Assets:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented In -----------------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
---------------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $140,155 $ -- $ -- $ -- $ -- $140,155
Swap
contracts $ -- $ -- $ -- $ -- $ -- $ --
Written options $ -- $ -- $ -- $ -- $ -- $ --
---------------------------------------------------------------------------------------------------
$140,155 $ -- $ -- $ -- $ -- $140,155
===================================================================================================
56 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
---------------------------------------------------------------------------------------------
Liabilities:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented In --------------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Received Amount
---------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $43,768 $ -- $ -- $ -- $ -- $43,768
Swap
contracts 52 -- 52 -- -- 52
Written options 1 -- 1 -- -- 1
---------------------------------------------------------------------------------------------
$43,821 $ -- $ 53 $ -- $ -- $43,821
=============================================================================================
8. Additional Disclosures about Derivative Instruments and Hedging Activities
Values of derivative instruments as of October 31, 2014 were as follows:
---------------------------------------------------------------------------------------------
Derivatives not
accounted for as Asset Derivatives 2014 Liabilities Derivatives 2014
hedging instruments -----------------------------------------------------------
under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
---------------------------------------------------------------------------------------------
Forward Foreign Currency Net unrealized Net unrealized
Contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $140,155 currency contracts $43,768
Futures contracts Net unrealized Net unrealized
appreciation on depreciation on
futures contracts -- futures contracts 18,009
Swap contracts Net unrealized Net unrealized
appreciation on depreciation on
swap contracts -- swap contracts 52
Written Options Written options -- Written options 1
---------------------------------------------------------------------------------------------
Total $140,155 $61,830
=============================================================================================
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 57
The effect of derivative instruments on the Statement of Operations for the year
ended October 31, 2014 was as follows:
-----------------------------------------------------------------------------------------------
Change in
Derivatives Not Unrealized
Accounted for as Realized Appreciation or
hedging instruments Location of Gain Gain (Loss) (Depreciation)
under Accounting or (Loss) on on Derivatives on Derivatives
Standards Codification Derivatives Recognized Recognized Recognized
(ASC) 185 in Income in Income in Income
-----------------------------------------------------------------------------------------------
Futures Contracts Net realized gain (loss) on
futures contracts $(57,279)
Futures Contracts Change in net unrealized
appreciation (depreciation)
on futures contracts $(28,743)
Forward Foreign Net realized gain (loss) on
Currency Contracts forward foreign currency
contracts $174,025
Forward Foreign Change in unrealized appreciation
Currency Contracts (depreciation) on forward foreign
currency contracts $156,469
Swap contracts Net realized gain (loss)
swap contracts $ (51)
Swap contracts Change in unrealized appreciation
(depreciation) on swap contracts $ (52)
Written Options Change in unrealized appreciation
(depreciation) on written options $ 1,386
9. Bridge and Delayed Draw Loan Commitments
As of October 31, 2014, the Fund had no delayed draw loan commitments. As of
October 31, 2014, the Fund had the following bridge loan commitment outstanding:
--------------------------------------------------------------------------------
Net Unrealized
Principal Appreciation
Loan Amount Cost Value (Depreciation)
--------------------------------------------------------------------------------
Burger King Worldwide,
Inc., Bridge Loan $100,000 $100,000 $100,000 $--
--------------------------------------------------------------------------------
Total $100,000 $100,000 $100,000 $--
--------------------------------------------------------------------------------
58 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
10. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until February 12, 2014 was in the amount of $215
million. As of February 12, 2014, the facility is in the amount of $240 million.
Under such facility, depending on the type of loan, interest on borrowings is
payable at the London Interbank Offered Rate (LIBOR) plus 0.90% (0.85% as of
February 12, 2014) on an annualized basis, or the alternate base rate, which is
the greater of (a) the facility's administrative agent's daily announced prime
rate on the borrowing date, (b) 2% plus the federal funds rate on the borrowing
date and (c) 2% plus the overnight eurodollar rate on the borrowing date. The
Funds pay an annual commitment fee to participate in the credit facility. The
commitment fee is allocated among participating Funds based on an allocation
schedule set forth in the credit agreement. For the year ended October 31, 2014,
the Fund had no borrowings under the credit facility.
11. Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Fund, with the approval and recommendation of the
Audit Committee, appointed Deloitte & Touche LLP to serve as the Fund's
independent registered public accounting firm for the fiscal year ending October
31, 2014. Deloitte & Touche LLP replaces Ernst & Young LLP, which resigned as
the Fund's independent registered public accounting firm, effective upon
completion of the audit of the Fund's financial statements for the fiscal year
ended October 31, 2013.
During the periods that Ernst & Young LLP served as the Fund's independent
registered public accounting firm, including the Fund's two fiscal years ending
October 31, 2013 and October 31, 2012, Ernst & Young LLP's reports on the
financial statements of the Fund have not contained an adverse opinion or
disclaimer of opinion and have not been qualified or modified as to uncertainty,
audit scope or accounting principles. Further, there have been no disagreements
with Ernst & Young LLP on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure, which, if not
resolved to the satisfaction of Ernst & Young LLP would have caused Ernst &
Young LLP to make reference to the subject matter of the disagreement in
connection with its report on the financial statements. In addition, there have
been no reportable events of the kind described in Item 304(a)(1)(v) of
Regulation S-K under the Securities and Exchange Act of 1934.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 59
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII and Shareowners of
ioneer Global Multisector Income Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Global Multisector Income Fund (the
"Fund") (one of the funds constituting Pioneer Series Trust VII), as of October
31, 2014, and the related statements of operations and changes in net assets,
and the financial highlights for year then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit. The statement of changes in net assets
of the Fund for the year ended October 31, 2013, and the financial highlights
for the years ended October 31, 2013, 2012, 2011 and 2010 were audited by other
auditors. Those auditors expressed an unqualified opinion on those financial
statements and financial highlights in their report dated December 23, 2013.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of October 31, 2014, by correspondence with the
custodian, brokers and agent banks; where replies were not received from brokers
and agent banks, we performed other auditing procedures. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global Multisector Income Fund as of October 31, 2014, and the results
of its operations, the changes in its net assets, and the financial highlights
for the year then ended, in conformity with accounting principles generally
accepted in the United States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 24, 2014
60 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
ADDITIONAL INFORMATION (unaudited)
The percentages of the Fund's ordinary income distributions that are exempt from
nonresident alien (NRA) tax withholding resulting from qualified interest income
was 49.70%.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 61
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Global Multisector Income Fund (the Fund) pursuant to an investment
advisory agreement between PIM and the Fund. In order for PIM to remain the
investment adviser of the Fund, the Trustees of the Fund must determine annually
whether to renew the investment advisory agreement for the Fund.
The contract review process began in January 2014 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2014 and July
2014. Supplemental contract review materials were provided to the Trustees in
September 2014. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year, and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings, in connection with the review of the Fund's
investment advisory agreement.
In March 2014, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In July 2014,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2014.
At a meeting held on September 16, 2014, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the
62 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
factors described below. In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Fund's shareowners. The
Trustees did not identify any single factor as the controlling factor in
determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for the
Fund and its research process. The Trustees considered the resources of PIM and
the personnel of PIM who provide investment management services to the Fund.
They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. The Trustees considered the non-investment resources and
personnel of PIM involved in PIM's services to the Fund, including PIM's
compliance and legal resources and personnel. The Trustees noted the substantial
attention and high priority given by PIM's senior management to the Pioneer fund
complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
analysis and data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees confirmed that these regular reviews and
discussions were factored into the Trustees' deliberations concerning the
renewal of the advisory agreement. For purposes of their contract renewal
deliberations, the Trustees considered the discussions held throughout the year
regarding the Fund's performance and the performance results of the Fund over
various time periods, including the Fund's
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 63
performance results for periods ended June 30, 2014. The Trustees indicated
that the Fund's performance was satisfactory and supported the renewal of the
investment advisory agreement.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2014 was in the third quintile relative to the management fees
paid by other funds in its Morningstar peer group for the comparable period. The
Trustees considered that the expense ratio of the Fund's Class A shares for the
twelve months ended June 30, 2014 was in the second quintile relative to its
Morningstar peer group and in the second quintile relative its Strategic Insight
peer group, in each case for the comparable period. The Trustees considered that
the expense ratio of the Fund's Class Y shares for the twelve months ended June
30, 2014 was in the third quintile relative to its Morningstar peer group and in
the second quintile relative its Strategic Insight peer group, in each case for
the comparable period. The Trustees noted that PIM was waiving fees and/or
reimbursing expenses in order to limit the ordinary operating expenses of the
Fund. The Trustees considered the impact of transfer agency, sub-transfer
agency, and other non-management fee expenses on the expense ratios of the Fund.
The Trustees noted that they separately review the Fund's transfer agency,
sub-transfer agency and intermediary arrangements.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the
64 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
Fund that it does not provide to those other clients or services that are
broader in scope, including oversight of the Fund's other service providers and
activities related to compliance and the extensive regulatory and tax regimes to
which the Fund is subject. The Trustees also considered the different
entrepreneurial risks associated with PIM's management of the Fund and Pioneer's
management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
recognize that economies of scale are difficult to identify and quantify, and
that, among other factors that may be relevant, are the following: fee levels,
expense subsidization, investment by PIM in research and analytical capabilities
and PIM's commitment and resource allocation to the Fund. The Trustees noted
that profitability also may be an indicator of the availability of any economies
of scale, although profitability may vary for other reasons including reductions
in expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 65
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
66 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least 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 serves as a Trustee of
each of the 53 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 67
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (64) Trustee since 2007. Serves Private investor (2004-2008 and Director, Broadridge Financial
Chairman of the Board until a successor trustee is 2013-present); Chairman (2008 - 2013) and Solutions, Inc. (investor
and Trustee elected or earlier Chief Executive Officer (2008 - 2012), communications and securities
retirement or removal. Quadriserv, Inc. (technology products for processing provider for
securities lending industry); and Senior financial services industry)
Executive Vice President, The Bank of New (2009 - present); Director,
York (financial and securities services) Quadriserv, Inc. (2005 -
(1986 - 2004) 2013); and Commissioner, New
Jersey State Civil Service
Commission (2011 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (70) Trustee since 2007. Serves Managing Partner, Federal City Capital Director of Enterprise
Trustee until a successor trustee is Advisors (corporate advisory services Community Investment, Inc.
elected or earlier company) (1997 - 2004 and 2008 - (privately-held affordable
retirement or removal. present); Interim Chief Executive housing finance company) (1985
Officer, Oxford Analytica, Inc. - 2010); Director of Oxford
(privately-held research and consulting Analytica, Inc. (2008 -
company) (2010); Executive Vice President present); Director of The
and Chief Financial Officer, I-trax, Inc. Swiss Helvetia Fund, Inc.
(publicly traded health care services (closed-end fund) (2010 -
company) (2004 - 2007); and Executive present); and Director of New
Vice President and Chief Financial York Mortgage Trust (publicly
Officer, Pedestal Inc. (internet-based traded mortgage REIT) (2004 -
mortgage trading company) (2000 - 2002) 2009, 2012 - present)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (70) Trustee since 2008. Serves William Joseph Maier Professor of Trustee, Mellon Institutional
Trustee until a successor trustee is Political Economy, Harvard University Funds Investment Trust and
elected or earlier (1972 - present) Mellon Institutional Funds
retirement or removal. Master Portfolio (oversaw 17
portfolios in fund complex)
(1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
68 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (67) Trustee since 2007. Serves Founding Director, Vice President and None
Trustee until a successor trustee is Corporate Secretary, The Winthrop Group,
elected or earlier Inc. (consulting firm) (1982 - present);
retirement or removal. Desautels Faculty of Management, McGill
University (1999 - present); and Manager
of Research Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (66) Trustee since 2007. Serves President and Chief Executive Officer, Director of New America High
Trustee until a successor trustee is Newbury, Piret & Company, Inc. Income Fund, Inc. (closed-end
elected or earlier (investment banking firm) (1981 - investment company) (2004 -
retirement or removal. present) present); and member, Board of
Governors, Investment Company
Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (67)** Trustee since 2014. Serves Consultant (investment company services) None
Trustee until a successor trustee is (2012 - present); Executive Vice
elected or earlier President, BNY Mellon (financial and
retirement or removal. investment company services) (1969 -
2012); Director, BNY International
Financing Corp. (financial services)
(2002 - 2012); and Director, Mellon
Overseas Investment Corp. (financial
services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 69
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (56)* Trustee since 2014. Serves Director and Executive Vice President None
Trustee until a successor trustee (since 2008) and Chief Investment
is elected or earlier Officer, U.S. (since 2010), of PIM-USA;
retirement or removal. Executive Vice President of Pioneer
(since 2008); Executive Vice President of
Pioneer Institutional Asset Management,
Inc. (since 2009); Portfolio Manager of
Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
70 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (58)** Advisory Trustee since Chief Investment Officer, 1199 SEIU None
2014. National Benefit and Pension Funds
(health care workers union pension Funds)
(2001 - present); Vice President -
International Investments Group, American
International Group, Inc. (insurance
company) (1993 - 2001); Vice President,
Corporate Finance and Treasury Group,
Citibank, N.A. (1980 - 1986 and 1990 -
1993); Vice President - Asset/Liability
Management Group, Federal Farm Funding
Corp. (government-sponsored Issuer of
debt securities) (1988 - 1990); Mortgage
Strategies Group, Shearson Lehman Hutton,
Inc. (investment bank) (1987 - 1988); and
Mortgage Securities Group, Drexel Burnham
Lambert, Ltd. (investment bank) (1986 -
1987)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer or director of
the Fund's investment adviser and certain of its affiliates.
** Mr. Ricciardi became a Trustee and Ms. Monchak became a non-voting Advisory
Trustee on November 11, 2014.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 71
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (52) Since 2014. Serves at the Chair, Director, CEO and President of None
President and discretion of the Board. Pioneer Investment Management USA (since
Chief Executive Officer September 2014); Chair, Director, CEO and
President of Pioneer Investment
Management, Inc. (since September 2014);
Chair, Director, CEO and President of
Pioneer Funds Distributor, Inc. (since
September 2014); Chair, Director, CEO and
President of Pioneer Institutional Asset
Management, Inc. (since September 2014);
and Chair, Director, and CEO of Pioneer
Investment Management Shareholder
Services, Inc. (since September 2014);
Managing Director, Morgan Stanley
Investment Management (2010 - 2013); and
Director of Institutional Business, CEO of
International, Eaton Vance Management
(2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (49) Since 2007. Serves at the Vice President and Associate General None
Secretary and Chief discretion of the Board. Counsel of Pioneer since January 2008;
Legal Officer Secretary and Chief Legal Officer of all
of the Pioneer Funds since June 2010;
Assistant Secretary of all of the Pioneer
Funds from September 2003 to May 2010; and
Vice President and Senior Counsel of
Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (53) Since 2010. Serves at the Fund Governance Director of Pioneer since None
Assistant Secretary discretion of the Board. December 2006 and Assistant Secretary of
all the Pioneer Funds since June 2010;
Manager - Fund Governance of Pioneer from
December 2003 to November 2006; and Senior
Paralegal of Pioneer from January 2000 to
November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (52) Since 2010. Serves at the Senior Counsel of Pioneer since May 2013 None
Assistant Secretary discretion of the Board. and Assistant Secretary of all the Pioneer
Funds since June 2010; Counsel of Pioneer
from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2008. Serves at the Vice President - Fund Treasury of Pioneer; None
Treasurer and Chief Financial discretion of the Board. Treasurer of all of the Pioneer Funds
and Accounting Officer since March 2008; Deputy Treasurer of
of the Fund Pioneer from March 2004 to February 2008;
and Assistant Treasurer of all of the
Pioneer Funds from March 2004 to February
2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (49) Since 2007. Serves at the Director - Fund Treasury of Pioneer; and None
Assistant Treasurer discretion of the Board. Assistant Treasurer of all of the Pioneer
Funds
------------------------------------------------------------------------------------------------------------------------------------
72 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (56) Since 2007. Serves at the Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer discretion of the Board. Pioneer; and Assistant Treasurer of all of
the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2009. Serves at the Fund Administration Manager - Fund None
Assistant Treasurer discretion of the Board. Treasury of Pioneer since November 2008;
Assistant Treasurer of all of the Pioneer
Funds since January 2009; and Client
Service Manager - Institutional Investor
Services at State Street Bank from March
2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (62) Since 2010. Serves at the Chief Compliance Officer of Pioneer and of None
Chief Compliance Officer discretion of the Board. all the Pioneer Funds since March 2010;
Director of Adviser and Portfolio
Compliance at Pioneer since October 2005;
and Senior Compliance Officer for Columbia
Management Advisers, Inc. from October
2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (43) Since 2007. Serves at the Director - Transfer Agency Compliance of None
Anti-Money Laundering Officer discretion of the Board. Pioneer and Anti-Money Laundering Officer
of all the Pioneer funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 73
This page for your notes.
74 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
This page for your notes.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/14 75
This page for your notes.
76 Pioneer Global Multisector Income Fund | Annual Report | 10/31/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus. The Fund files a
complete schedule of investments with the Securities and Exchange Commission for
the first and third quarters for each fiscal year on Form N-Q. Shareholders may
view the filed Form N-Q by visiting the Commission's web site at www.sec.gov.
The filed form may also be viewed and copied at the Commission's Public
Reference Room in Washington, DC. Information regarding the operations of the
Public Reference Room may be obtained by calling 1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 22520-06-1214
Pioneer Emerging
Markets Local
Currency Debt Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A LCEMX
Class C LCECX
Class Y LCYEX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 11
Prices and Distributions 12
Performance Update 13
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 24
Notes to Financial Statements 31
Report of Independent Registered Public Accounting Firm 44
Approval of Investment Advisory Agreement 46
Trustees, Officers and Service Providers 51
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 1
President's Letter
Dear Shareowner,
As we move into the final months of 2014, we remain confident that U.S. economic
growth remains self-sustaining despite weakness in foreign economies, and that
the expansion will continue until the economy reaches full employment.
Unemployment has ticked down below 6% and the number of job openings is at the
highest level since 2000, while the number of people filing initial unemployment
claims has fallen to the lowest level in fourteen years. Wage growth, while
still low, is outpacing inflation, consumer debt burdens are modest and lower
gasoline prices are freeing up discretionary spending power.
The global economic picture is less rosy, however, as the conflict between
Russia and the Ukraine is exacting a toll on the European economy, Japan is
still working through the impact of its large tax increase, and the growth of
China's investment-driven economy has been slowing. There are also geopolitical
and other threats to the outlook, such as the Ebola virus outbreak and the
advance of ISIS in key areas of the Middle East. On balance, though, we expect
the global economy to continue to grow over the remainder of 2014 and in 2015.
While our economic outlook is generally constructive and we believe
opportunities remain for prudent investors to earn attractive returns, markets
are likely to continue to be volatile, a scenario that offers the potential for
rewards, but for increased risks as well.
Since 1928, Pioneer's investment professionals have worked on behalf of our
shareholders, incorporating proprietary research to find attractive investment
opportunities and prudent risk management to construct portfolios.
We continue to advocate the benefits of adhering to a disciplined investment
strategy and encourage you to work with your financial advisor to develop and
implement an overall investment plan that addresses both your short- and
long-term goals.
2 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
On August 11, 2014, I joined Pioneer as the new President and CEO of Pioneer
Investment Management USA, Inc. In my role, I will focus on preserving many of
the rich qualities of our history, while meeting the challenges and capitalizing
on the opportunities presented by an ever-changing world.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 3
Portfolio Management Discussion | 10/31/14
In the following discussion, portfolio manager Hakan Aksoy reviews recent market
events and describes the factors that affected the performance of Pioneer
Emerging Markets Local Currency Debt Fund during the 12-month reporting period
ended October 31, 2014. Mr. Aksoy, a senior bond and high-yield portfolio
manager based in Pioneer's London office, is responsible for the day-to-day
management of the Fund.
Q How did local-currency emerging markets debt perform during the 12-month
period ended October 31, 2014?
A The past 12 months were characterized by, for the most part, positive global
economic growth and continued demand for riskier, higher-yielding assets.
However, a substantial decline in the values of emerging markets currencies
versus the U.S. dollar (USD) caused emerging markets local-currency debt to
finish the 12-month period in negative territory.
The large gap between the returns of USD-denominated and local-currency
bonds stemmed from two factors. First, emerging markets currencies slid
sharply during the first three months of the period as renewed concerns
about global economic growth prompted investors to pull capital out of the
emerging markets. Second, the USD staged a significant rally through the
final four months of the period (July through October). The prospect of an
interest-rate hike by the U.S. Federal Reserve System (the Fed) in 2015,
combined with investors' view of the U.S. as a "safe haven" at a time of
weaker economic data worldwide, attracted cash to the USD and caused
emerging markets currencies to lose ground on a relative basis. Taken
together, those factors caused the negative effect of currency translation
to far outweigh the positive price performance of the emerging bond markets
during the period.
Q How did the Fund perform during the period 12-month period ended October 31,
2014?
A Pioneer Emerging Markets Local Currency Debt Fund's Class A shares returned
-3.65% at net asset value during the 12-month period ended October 31, 2014,
while the Fund's benchmark, the JP Morgan Government Bond Index-Emerging
Markets Global Diversified Index (the JP Morgan Index), returned -2.68%.
During the same period, the average return of the
4 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
109 mutual funds in Lipper's Emerging Markets Local Currency Debt Funds
category was -2.69%, and the average return of the 365 mutual funds in
Morningstar's Emerging Markets Bond Funds category was 2.08%.
Q Which of your investment decisions had the biggest effects on the Fund's
benchmark-relative performance during the 12-month period ended October 31,
2014, both from a positive and negative standpoint?
A The Fund underperformed the JP Morgan Index during the period, with the
largest detractor from benchmark-relative performance being a moderate
portfolio overweight to Russia. The overweight to Russia hurt the Fund's
relative returns when the Russian bond market began to lag due to the
economic sanctions imposed on the country in the wake of its conflict with
the Ukraine. While we quickly moved to a portfolio underweight in Russia
during the middle portion of the Fund's fiscal year, the initial overweight
was a key detractor from benchmark-relative results for the full 12-month
period. Certain Russian corporate issues held by the portfolio also hurt
performance. These included: RusHydro, Federal Grid, Russian Railways and
Gazprombank. Elsewhere, the Fund's underweight position in Turkey, a market
that performed well during the period, also detracted from
benchmark-relative returns.
The Fund's performance benefited from portfolio overweights in India,
Mexico, and Indonesia, as all of those countries outperformed the broader
emerging markets spectrum during the period. The Fund's return was also
boosted by the portfolio's allocation to corporate bonds, which outperformed
government securities during the 12-month period. Corporate bonds generally
offer higher yields than government bonds, and yet in many cases the
underlying financial strength of corporations is as good as, or better than,
the financial strength of government issuers. The Fund held an approximate
40% weighting in corporates as of October 31, 2014, reflecting our view that
this market segment offers a compelling long-term investment opportunity.
Q Did you invest in derivatives during the 12-month period ended October 31,
2014? If so, did those investments have any effect on the Fund's
performance?
A The Fund employed derivatives (futures, options, and swaps) during the
annual reporting period. The purpose of the strategy was not to boost the
Fund's returns, but rather to attempt to manage portfolio risk and to target
more specific weightings in certain positions. On a net basis, the use of
derivatives had a positive impact on the Fund's performance during the
12-month period.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 5
Q How was the Fund's portfolio positioned as of October 31, 2014?
A We are encouraged by the increased differentiation in performance trends
that we have been seeing among the various individual markets in the
emerging currency asset class. Ten years ago, all of the emerging markets
tended to move as a group - either going up or down in unison based on
macroeconomic trends and shifts in investors' appetite for risk. Now, we are
seeing a much wider range of results, with individual country fundamentals
playing a greater role in the performance of each market. We believe this
creates a favorable backdrop for our active approach of guiding the
portfolio's investments toward countries where we see opportunity, and away
from those that we believe have higher risk.
During the past fiscal year, our active investment strategy prompted us to
underweight the Fund in countries with above-average exposure to
commodities. Falling commodity prices can cause deterioration in the trade
balances of commodity-exporting countries, which in turn can pressure
currency exchange rates. In some cases, that may prompt central banks to
raise interest rates in order to defend their countries' currencies.
Countries experiencing such trends generally suffer weak bond market
performance, particularly with respect to their local currency debt. The
challenges don't exist everywhere, however, and for many countries a large
manufacturing base provides a stable source of economic growth. Further,
manufacturing companies can actually benefit from lower commodity prices
since those lower prices decrease the companies' input costs.
We also take the political outlook of certain countries into account when
positioning the Fund's portfolio. The process of political reform has led to
improvements for the economic outlook in a number of countries, most notably
Mexico and India, and this has fueled their outperformance relative to the
emerging markets as a whole.
These political considerations are reflected in the Fund's underweights in
Latin America, where several countries -- like Brazil, Chile, Peru, and
Colombia among them -- are very sensitive to commodity prices. On the other
hand, Mexico not only has a larger manufacturing base and is less dependent
on commodities, but it also has benefited from both a successful reform
process, mentioned previously, and its close ties to the U.S. economy. As a
result, Mexico represents the Fund's largest overweight position in Latin
America.
6 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
We also have found Asia to be a compelling source of opportunity, and that
view is reflected in the Fund's overweight to the region. Asian currencies
tend to be more closely linked to the USD, which provides support for
local-currency debt. We are, however, being very selective with our
investments in the region. We hold a positive view on India, where the
government is pursuing growth-oriented policies under Prime Minister
Narendra Modi. The country has an improving trade balance, a large
manufacturing base and a stable currency, and investors are currently being
well compensated for the underlying risks. For example, as of the end of
the period, India's 10-year debt instruments were offering a yield of 8.2%.
We also favor Indonesia, where yields are attractive and where we believe
the potential remains for upside surprises on the economic front.
Conversely, the Fund is underweight in Malaysia, Thailand, and the
Philippines, as we do not think available yields in those countries are
high enough to offset the underlying risks.
The Fund is underweight in the Emerging Europe/Middle East/Africa (EMEA)
region. The currencies of European markets such as Poland, Romania and
Hungary have come under pressure due to euro zone weakness, and those
countries also do not currently offer high-enough yields to offset the
risks. At period end, the Fund was underweight in Russia, with an emphasis
on short-term debt, as we believe the economic and political risks of
Russian investments remain high. We also maintained portfolio underweights
in South Africa, which has meaningful budgetary issues and a weak growth
outlook, and Turkey, where there has been political unrest. We like
Turkey's longer-term outlook, however, due to its substantial manufacturing
and export base, and we are always on the lookout for opportunities to add
to the Fund's Turkish positions.
As of October 31, 2014, the Fund's duration stood at 3.6 years, below the
4.8 year duration for the JP Morgan Index benchmark. (Duration is a measure
of the sensitivity of the price - the value of principal - of a
fixed-income investment to a change in interest rates, expressed as a
number of years.) We are seeking to minimize the portfolio's interest-rate
risk, as we believe that yields on U.S. Treasuries are likely to creep
higher over time. Such a trend would feed through into the emerging
markets. Instead, we are striving to add value by taking on credit risk
(via the Fund's corporate bond allocation), and by tilting the portfolio's
positions toward countries that offer favorable yields in exchange for the
underlying risks.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 7
Q What is your overall outlook for emerging markets debt?
A We believe the asset class as a whole features two key underpinnings for
healthy long-term performance. First, growth in the emerging markets, while
slowing, remains well above growth rates in the developed world. Second, the
high yields available in the emerging debt markets can provide investors
with a favorable starting point for total return during a time of low bond
yields almost everywhere else in the world. In the short-term, however, we
expect continued volatility stemming from fluctuations in both commodity and
currency prices. Our response to the volatility is to place a greater
emphasis on risk management in the portfolio over the near term, while
maintaining our diversified*, actively-managed, and value-oriented approach.
* Diversification does not assure a profit nor protect against loss in a
declining market.
8 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
Please refer to the Schedule of Investments on pages 18-23 for a full listing of
Fund securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
To the extent the Fund invests in issuers located within specific countries or
regions, the Fund may be particularly affected by adverse markets, rates, and
events which may occur in those countries and regions.
The Fund is subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
Investments in high-yield or lower rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
When interest rates rise, the prices of fixed income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
At times, the Fund's investments may represent industries or sectors that are
interrelated or have common risks, making them more susceptible to any economic,
political, or regulatory developments or other risks affecting those industries
and sectors.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 9
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. 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.
10 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
Portfolio Summary | 10/31/14
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Foreign Government Bonds 62.8%
U.S. Corporate Bonds 36.2%
Temporary Cash Investments 1.0%
Country Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Mexico 12.6%
Malaysia 9.5%
South Africa 9.3%
Supranational 8.9%
Brazil 8.5%
Poland 8.0%
Turkey 7.4%
Colombia 6.3%
Indonesia 6.1%
Thailand 4.8%
Ireland 4.6%
South Korea 4.0%
Hungary 3.5%
Peru 2.0%
Romania 1.6%
Luxembourg 1.5%
Other (individually less than 1%) 1.4%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total debt holdings)*
1. Akbank TAS, 7.5%, 2/5/18 3.90%
--------------------------------------------------------------------------------
2. America Movil SAB de CV, 6.45%, 12/5/22 2.98
--------------------------------------------------------------------------------
3. Malaysia Government Bond, 3.58%, 9/28/18 2.73
--------------------------------------------------------------------------------
4. Thailand Government Bond, 3.625%, 6/16/23 2.60
--------------------------------------------------------------------------------
5. South Africa Government Bond - CPI Linked, 2.75%, 1/31/22 2.53
--------------------------------------------------------------------------------
6. Eskom Holdings SOC, Ltd., 10.0%, 1/25/23 2.45
--------------------------------------------------------------------------------
7. European Investment Bank, 4.25%, 10/25/22 2.41
--------------------------------------------------------------------------------
8. International Bank for Reconstruction & Development, 10.0%, 10/28/15 2.39
--------------------------------------------------------------------------------
9. Emgesa SA ESP, 8.75%, 1/25/21 2.38
--------------------------------------------------------------------------------
10. Export-Import Bank of Korea, 7.55%, 8/27/15 2.38
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 11
Prices and Distributions | 10/31/14
Net Asset Value per Share
--------------------------------------------------------------------------------
Class 10/31/14 10/31/13
--------------------------------------------------------------------------------
A $8.34 $9.07
--------------------------------------------------------------------------------
C $8.33 $9.06
--------------------------------------------------------------------------------
Y $8.35 $9.08
--------------------------------------------------------------------------------
Distributions per Share: 11/1/13-10/31/14
--------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Short-Term Long-Term Tax Return of
Class Dividends Capital Gains Capital Gains Capital
---------------------------------------------------------------------------------
A $0.2859 $ -- $ -- $0.1181
---------------------------------------------------------------------------------
C $0.2207 $ -- $ -- $0.1181
---------------------------------------------------------------------------------
Y $0.3100 $ -- $ -- $0.1181
---------------------------------------------------------------------------------
JP Morgan Government Bond Index--Emerging Markets Global Diversified Index is an
unmanaged, comprehensive, global, local emerging markets index, and consists of
regularly traded, liquid-fixed-rate, domestic currency government bonds to which
international investors can gain exposure. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. It is not possible to invest directly in an
index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 13-15.
12 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
Performance Update | 10/31/14 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Emerging Markets Local Currency
Debt Fund at public offering price during the periods shown, compared to that of
the JP Morgan Government Bond Index-Emerging Markets (JPM GBI EM) Global
Diversified Index.
Average Annual Total Returns
(As of October 31, 2014)
--------------------------------------------------------------------------------
JPM GBI-
Net Public EM
Asset Offering Global
Value Price Diversified
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life-of-Class
(2/4/2013) -6.34% -8.78% -5.32%
1 Year -3.65 -8.01 -2.68
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.79% 1.20%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Emerging Markets JPM GBI EM Global
Local Currency Debt Fund Diversified Index
2/28/2013 $9,550 $10,000
10/31/2013 $8,976 $ 9,461
10/31/2014 $8,649 $ 9,208
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2015, for Class A shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information. The performance table
and graph do not reflect the deduction of fees and taxes that a shareowner would
pay on Fund distributions or the redemption of Fund shares.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 13
Performance Update | 10/31/14 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Emerging Markets Local Currency
Debt Fund during the periods shown, compared to that of the JP Morgan Government
Bond Index-Emerging Markets (JPM GBI EM) Global Diversified Index.
Average Annual Total Returns
(As of October 31, 2014)
--------------------------------------------------------------------------------
JPM GBI-
EM
Global
If If Diversified
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(2/4/2013) -7.01% -7.01% -5.32%
1 Year -4.37 -4.37 -2.68
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.54% 2.10%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Emerging Markets JPM GBI EM Global
Local Currency Debt Fund Diversified Index
2/28/2013 $10,000 $10,000
10/31/2013 $ 9,358 $ 9,461
10/31/2014 $ 8,948 $ 9,208
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2015, for Class C shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information. The performance table
and graph do not reflect the deduction of fees and taxes that a shareowner would
pay on Fund distributions or the redemption of Fund shares.
14 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
Performance Update | 10/31/14 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Emerging Markets Local Currency
Debt Fund during the periods shown, compared to that of the JP Morgan Government
Bond Index-Emerging Markets (JPM GBI EM) Global Diversified Index.
Average Annual Total Returns
(As of October 31, 2014)
--------------------------------------------------------------------------------
JPM GBI-
EM
Global
If If Diversified
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(2/4/2013) -6.05% -6.05% -5.32%
1 Year -3.37 -3.37 -2.68
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.53% 0.85%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Emerging Markets JPM GBI EM Global
Local Currency Debt Fund Diversified Index
2/28/2013 $5,000,000 $5,000,000
10/31/2013 $4,708,373 $4,730,533
10/31/2014 $4,549,693 $4,603,796
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2015, for Class Y shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information. The performance table
and graph do not reflect the deduction of fees and taxes that a shareowner would
pay on Fund distributions or the redemption of Fund shares.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Emerging Markets Local
Currency Debt Fund
Based on actual returns from May 1, 2014, through October 31, 2014.
---------------------------------------------------------------------------------------
Share Class A C Y
---------------------------------------------------------------------------------------
Beginning Account Value on 5/1/14 $1,000.00 $1,000.00 $1,000.00
---------------------------------------------------------------------------------------
Ending Account Value (after expenses) $ 979.66 $ 976.12 $ 981.21
on 10/31/14
---------------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.69 $ 9.31 $ 4.24
---------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.14%,
1.87% and 0.85% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
16 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
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 Emerging Markets Local Currency
Debt Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2014, through October 31, 2014.
---------------------------------------------------------------------------------------
Share Class A C Y
---------------------------------------------------------------------------------------
Beginning Account Value on 5/1/14 $1,000.00 $1,000.00 $1,000.00
---------------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,019.46 $1,015.78 $1,020.92
on 10/31/14
---------------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.80 $ 9.50 $ 4.33
---------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.14%,
1.87% and 0.85% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 17
Schedule of Investments | 10/31/14
-----------------------------------------------------------------------------------------------
Principal
Amount ($) Value
-----------------------------------------------------------------------------------------------
CORPORATE BONDS -- 43.8%
TRANSPORTATION -- 1.9%
Railroads -- 1.9%
RUB 12,000,000 Russian Railways via RZD Capital Plc, 8.3%, 4/2/19 $ 249,272
------------
Total Transportation $ 249,272
-----------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.4%
Agricultural Products -- 1.4%
BRL 500,000 Cosan Luxembourg SA, 9.5%, 3/14/18 $ 183,002
------------
Total Food, Beverage & Tobacco $ 183,002
-----------------------------------------------------------------------------------------------
BANKS -- 22.0%
Diversified Banks -- 20.7%
TRY 1,150,000 Akbank TAS, 7.5%, 2/5/18 $ 476,983
BRL 700,000 Banco ABC Brasil SA, 8.5%, 3/28/16 265,247
BRL 300,000 Banco Santander Brasil SA Cayman Islands, 8.0%,
3/18/16 115,979
CLP 50,000,000 Banco Santander Chile, 6.5%, 9/22/20 86,154
RUB 13,000,000 Export-Import Bank of Korea, 7.55%, 8/27/15 291,374
TRY 270,000 Export-Import Bank of Korea, 8.2%, 5/31/16 119,703
IDR 1,000,000,000 Export-Import Bank of Korea, 8.4%, 7/6/16 82,971
RUB 12,000,000 Gazprombank OJSC Via GPB Eurobond Finance Plc,
8.617%, 12/15/15 269,954
IDR 1,000,000,000 Inter-American Development Bank, 7.25%, 7/17/17 82,246
NGN 50,000,000 International Bank for Reconstruction & Development,
10.0%, 10/28/15 292,608
COP 200,000,000 International Bank for Reconstruction & Development,
4.5%, 8/3/17 97,088
BRL 400,000 Itau Unibanco Holding SA, 10.5%, 11/23/15 159,887
RON 650,000 Raiffeisen Bank SA, 5.35%, 5/15/19 195,005
TRY 300,000 Turkiye Is Bankasi, 11/16/15 (b) 122,577
------------
$ 2,657,776
-----------------------------------------------------------------------------------------------
Regional Banks -- 1.3%
IDR 2,000,000,000 JPMorgan Chase Bank NA, 7.7%, 6/1/16 $ 163,161
------------
Total Banks $ 2,820,937
-----------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 8.7%
Other Diversified Financial Services -- 8.7%
BRL 700,000 Banco Safra SA, 10.25%, 8/8/16 $ 272,736
ZAR 6,600,000 Development Bank of Southern Africa, Ltd., 12/31/27 (b) 177,473
INR 8,000,000 European Bank for Reconstruction & Development,
5.625%, 3/15/17 130,074
IDR 800,000,000 European Bank for Reconstruction & Development,
7.25%, 8/22/17 65,814
INR 8,000,000 European Bank for Reconstruction & Development,
8.0%, 11/12/14 130,361
The accompanying notes are an integral part of these financial statements.
18 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
-----------------------------------------------------------------------------------------------
Principal
Amount ($) Value
-----------------------------------------------------------------------------------------------
Other Diversified Financial Services -- (continued)
PLN 870,000 European Investment Bank, 4.25%, 10/25/22 $ 295,515
RUB 2,000,000 Federal Grid Co OJS via Federal Grid Finance, Ltd.,
8.446%, 3/13/19 41,827
------------
$ 1,113,800
------------
Total Diversified Financials $ 1,113,800
-----------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.9%
Integrated Telecommunication Services -- 0.9%
BRL 300,000 Oi SA, 9.75%, 9/15/16 $ 110,043
-----------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 4.0%
MXN 2,000,000 America Movil SAB de CV, 6.0%, 6/9/19 $ 149,607
MXN 5,000,000 America Movil SAB de CV, 6.45%, 12/5/22 364,330
------------
$ 513,937
------------
Total Telecommunication Services $ 623,980
-----------------------------------------------------------------------------------------------
UTILITIES -- 4.9%
Electric Utilities -- 2.6%
COP 400,000,000 Empresas Publicas de Medellin ESP, 8.375%, 2/1/21 $ 206,947
ZAR 2,000,000 Eskom Holdings SOC, Ltd., 12/31/18 (b) 124,415
------------
$ 331,362
-----------------------------------------------------------------------------------------------
Independent Power Producers & Energy Traders -- 2.3%
COP 560,000,000 Emgesa SA ESP, 8.75%, 1/25/21 $ 291,793
------------
Total Utilities $ 623,155
-----------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $6,882,618) $ 5,614,146
-----------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 52.8%
BRL 150,000 Brazil Letras do Tesouro Nacional, 7/1/15 (b) $ 56,250
BRL 200,000 Brazil Letras do Tesouro Nacional, 7/1/16 (b) 66,619
COP 200,000,000 Colombian TES, 10.0%, 7/24/24 120,444
COP 300,000,000 Colombian TES, 7.0%, 5/4/22 150,016
ZAR 3,000,000 Eskom Holdings SOC, Ltd., 10.0%, 1/25/23 299,350
HUF 20,000,000 Hungary Government Bond, 6.5%, 6/24/19 93,137
HUF 30,000,000 Hungary Government Bond, 6.75%, 2/24/17 133,392
HUF 40,000,000 Hungary Government Bond, 7.5%, 11/12/20 198,139
IDR 2,200,000,000 Indonesia Treasury Bond, 10.0%, 9/15/24 203,769
IDR 1,500,000,000 Indonesia Treasury Bond, 10.5%, 8/15/30 145,043
IDR 2,000,000,000 Indonesia Treasury Bond, 11.0%, 9/15/25 197,218
IDR 2,000,000,000 Indonesia Treasury Bond, 12.8%, 6/15/21 205,627
MYR 1,100,000 Malaysia Government Bond, 3.58%, 9/28/18 333,926
MYR 800,000 Malaysia Government Bond, 3.741%, 2/27/15 243,432
MYR 600,000 Malaysia Government Bond, 4.012%, 9/15/17 184,449
The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 19
Schedule of Investments | 10/31/14 (continued)
-----------------------------------------------------------------------------------------------
Principal
Amount ($) Value
-----------------------------------------------------------------------------------------------
Foreign Government Bonds -- (continued)
MYR 500,000 Malaysia Government Bond, 4.16%, 7/15/21 $ 155,397
MYR 800,000 Malaysia Government Bond, 4.378%, 11/29/19 250,728
MXN 2,800,000 Mexican Bonos, 10.0%, 11/20/36 285,041
MXN 2,000,000 Mexican Bonos, 10.0%, 12/5/24 194,076
MXN 3,700,000 Mexican Bonos, 6.0%, 6/18/15 279,407
MXN 3,200,000 Mexican Bonos, 8.5%, 12/13/18 269,903
NGN 10,000,000 Nigeria Government International Bond, 16.39%,
1/27/22 71,053
PEN 200,000 Peru Government Bond, 7.84%, 8/12/20 79,247
PEN 400,000 Peru Government Bond, 8.2%, 8/12/26 167,499
PLN 894,656 Poland Government Bond, 3.0%, 8/24/16 274,891
PLN 300,000 Poland Government Bond, 4.0%, 10/25/23 99,910
PLN 900,000 Poland Government Bond, 4.75%, 10/25/16 282,539
PLN 600,000 Poland Government Bond, 4.75%, 4/25/17 190,601
PLN 300,000 Poland Government Bond, 5.25%, 10/25/17 97,725
ZAR 3,165,200 South Africa Government Bond - CPI Linked, 2.75%,
1/31/22 310,018
ZAR 2,000,000 South Africa Government Bond, 6.75%, 3/31/21 174,628
ZAR 600,000 South Africa Government Bond, 8.0%, 12/21/18 56,133
THB 10,000,000 Thailand Government Bond, 3.625%, 6/16/23 318,646
THB 8,200,000 Thailand Government Bond, 5.125%, 3/13/18 271,291
TRY 371,114 Turkey Government Bond, 4.5%, 2/11/15 168,840
TRY 300,000 Turkey Government Bond, 5.0%, 5/13/15 132,693
-----------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $7,552,440) $ 6,761,077
-----------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 96.6%
(Cost $14,435,058) (a) $ 12,375,223
-----------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 3.4% $ 433,321
-----------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 12,808,544
===============================================================================================
-----------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------
WRITTEN CALL OPTIONS -- (0.0)%+
(50,000) Call EUR/Put HUF, 330, 8/20/15 $ (858)
(100,000) Call EUR/Put MXN, 19.0, 7/20/15 (1,268)
(200,000) Call EUR/Put PLN, 4.30, 1/2/15 (1,030)
-----------------------------------------------------------------------------------------------
TOTAL WRITTEN CALL OPTIONS
(Premiums received $(6,367)) $ (3,156)
-----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
+ Amount rounds to less than 0.1% or (0.1)%.
(a) At October 31, 2014, the net unrealized depreciation on investments based
on cost for federal income tax purposes of $14,435,058 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 151,686
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (2,211,521)
-------------
Net unrealized depreciation $ (2,059,835)
=============
(b) Security issued with a zero coupon. Income is recognized through
accretion of discount.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
BRL Brazilian Real
CLP Chilean Peso
COP Colombian Peso
EUR Euro
HUF Hungarian Forint
IDR Indonesian Rupiah
INR Indian Rupee
MXN Mexican Peso
MYR Malaysian Ringgit
NGN Nigerian Naira
PEN Peruvian Nuevo Sol
PLN Polish Zloty
RON Romanian Leu
RUB Russian Ruble
THB Thai Baht
TRY Turkish Lira
ZAR South African Rand
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2014 aggregated $4,908,925 and $3,570,491, respectively.
CROSS CURRENCY SWAP AGREEMENTS
-------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Floating Fixed Expiration Appreciation
Principal($) Counterparty Pay Receive Rate Rate Date (Depreciation)
-------------------------------------------------------------------------------------------------------
290,000 Barclays Bank PLC USD TRY LIBOR 8.45% 2/29/16 $296
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 21
Schedule of Investments | 10/31/14 (continued)
INTEREST RATE SWAP AGREEMENTS
----------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Floating Fixed Expiration Appreciation
Principal($) Counterparty Pay/Receive Rate Rate Date (Depreciation)
----------------------------------------------------------------------------------------------------------
BRL 52,457 Goldman Sachs Receive BRL-CDI 10.795% 1/4/21 $ 539
BRL 212,403 Goldman Sachs Pay BRL-CDI 11.025% 1/2/18 (1,862)
COP 255,000,000 Morgan Stanley Pay COP-IBR- 5.92% 5/7/24 (307)
& Co. OIS-Compound
----------------------------------------------------------------------------------------------------------
$ (1,630)
==========================================================================================================
BRL-CDI Brazil CETIP Interbank Deposit
COP-IBR-OIS
Compound Columbian Peso Inter-bank Rate Overnight Indexed Swap
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
BRL Brazilian Real
COP Colombian Peso
TRY Turkish Lira
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 -- quoted prices in active markets for identical securities.
Level 2 -- other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speeds,
credit risk, etc.) See Notes to Financial Statements --
Note 1A.
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See
Notes to Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
as Level 3.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
The following is a summary of the inputs used as of October 31, 2014, in valuing
the Fund's investments:
--------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------
Corporate Bonds $ -- $ 5,614,146 $ -- $ 5,614,146
Foreign Government Bonds -- 6,761,077 -- 6,761,077
--------------------------------------------------------------------------------------
Total $ -- $12,375,223 $ -- $12,375,223
======================================================================================
Other Financial Instruments
Net unrealized depreciation
on futures contracts $(3,125) $ -- $ -- $ (3,125)
Net unrealized appreciation
on forward foreign
currency contracts -- 12,628 -- 12,628
Net unrealized depreciation
on forward foreign
currency contracts -- (9,596) -- (9,596)
Net unrealized appreciation
on cross currency swaps -- 296 -- 296
Net unrealized depreciation
on interest rate swaps -- (1,630) -- (1,630)
Net unrealized appreciation
on written call options -- 3,211 -- 3,211
---------------------------------------------------------------------------------------
Total $(3,125) $ 4,909 $ -- $ 1,784
=======================================================================================
During the year ended October 31, 2014, there were no transfers between Levels
1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 23
Statement of Assets and Liabilities | 10/31/14
ASSETS:
Investment in securities (cost $14,435,058) $12,375,223
Cash 76,926
Foreign currencies, at value (cost $202,610) 200,040
Futures collateral 8,895
Receivables --
Interest 270,921
Variation margin 820
Due from Pioneer Investment Management, Inc. 20,574
Net unrealized appreciation on forward foreign currency contracts 12,628
Prepaid expenses 2,548
---------------------------------------------------------------------------------------
Total assets $12,968,575
=======================================================================================
LIABILITIES:
Payables --
Fund shares repurchased $ 184
Dividends 52,455
Trustee fees 795
Swap contracts payable 768
Unrealized depreciation on futures contracts 3,125
Written options (premiums received $6,367) 3,156
Net unrealized depreciation on swap contracts 1,334
Net unrealized depreciation on forward foreign currency contracts 9,596
Due to affiliates 9,429
Accrued expenses 79,064
Reserve for repatriation taxes 125
---------------------------------------------------------------------------------------
Total liabilities $ 160,031
=======================================================================================
NET ASSETS:
Paid-in capital $15,061,804
Distributions in excess of net investment income (50,218)
Accumulated net realized loss on investments, futures contracts,
swap contracts, written options and foreign currency transactions (131,971)
Net unrealized depreciation on investments (2,059,835)
Net unrealized depreciation on futures contracts (3,125)
Net unrealized depreciation on swap contracts (4,658)
Net unrealized appreciation on written options 3,211
Net unrealized depreciation on forward foreign currency contracts
and other assets and liabilities denominated in foreign currencies (6,664)
---------------------------------------------------------------------------------------
Total net assets $12,808,544
=======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $4,294,554/514,894 shares) $ 8.34
Class C (based on $4,339,792/521,096 shares) $ 8.33
Class Y (based on $4,174,198/500,000 shares) $ 8.35
MAXIMUM OFFERING PRICE:
Class A ($8.34 (divided by) 95.5%) $ 8.73
=======================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
Statement of Operations
For the Year Ended 10/31/14
INVESTMENT INCOME:
Interest (net of foreign taxes withheld of $4,680) $ 846,677
-----------------------------------------------------------------------------------------------
Total investment income $ 846,677
-----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 92,525
Transfer agent fees and expenses
Class A 737
Class C 513
Class Y 180
Distribution fees
Class A 11,113
Class C 44,319
Shareholder communications expense 1,421
Administrative reimbursement 22,413
Custodian fees 20,617
Registration fees 44,830
Professional fees 79,759
Printing expense 33,144
Fees and expenses of nonaffiliated Trustees 6,404
Miscellaneous 20,190
-----------------------------------------------------------------------------------------------
Total expenses $ 378,165
Less fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (207,191)
-----------------------------------------------------------------------------------------------
Net expenses $ 170,974
-----------------------------------------------------------------------------------------------
Net investment income $ 675,703
-----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP CONTRACTS, WRITTEN OPTIONS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments (net of foreign capital gains
taxes of $442) $(298,971)
Swap contracts 317
Futures contracts (1,860)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (14,880) $ (315,394)
----------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments (net increase in reserve for capital gains
taxes of $125) $(871,577)
Swap contracts (4,658)
Futures contracts (3,125)
Written options 3,211
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (6,209) $ (882,358)
-----------------------------------------------------------------------------------------------
Net loss on investments, swap contracts, futures contracts,
written options and foreign currency transactions $ (1,197,752)
-----------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (522,049)
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 25
Statements of Changes in Net Assets
---------------------------------------------------------------------------------------------
Year Ended 2/5/13 to
10/31/14 10/31/13 (a)
---------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 675,703 $ 416,172
Net realized loss on investments, swap contracts,
futures contracts and foreign currency transactions (315,394) (349,357)
Change in net unrealized appreciation (depreciation) on
investments, swap contracts, futures contracts, written
options, and foreign currency transactions (882,358) (1,188,713)
---------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ (522,049) $ (1,121,898)
---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.29 and $0.15 per share, respectively) $ (147,053) $ (74,581)
Class C ($0.22 and $0.11 per share, respectively) (113,460) (56,600)
Class Y ($0.31 and $0.16 per share, respectively) (154,975) (79,660)
Tax return of capital:
Class A ($0.12 and $0.04 per share, respectively) (60,038) (21,345)
Class C ($0.12 and $0.04 per share, respectively) (59,999) (21,245)
Class Y ($0.12 and $0.04 per share, respectively) (59,075) (21,140)
---------------------------------------------------------------------------------------------
Total distributions to shareowners $ (594,600) $ (274,571)
---------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 290,324 $ 15,138,736
Reinvestment of distributions 8,952 1,404
Cost of shares repurchased (99,797) (17,957)
---------------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund
share transactions $ 199,479 $ 15,122,183
---------------------------------------------------------------------------------------------
Net increase in net assets $ (917,170) $ 13,725,714
NET ASSETS:
Beginning of year 13,725,714 --
---------------------------------------------------------------------------------------------
End of year $ 12,808,544 $ 13,725,714
---------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net
investment income $ (50,218) $ (46,150)
=============================================================================================
(a) The Fund commenced operations on February 5, 2013.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
----------------------------------------------------------------------------------------
'14 Shares '14 Amount '13 Shares '13 Amount
----------------------------------------------------------------------------------------
Class A*
Shares sold 17,351 $151,909 508,804 $5,081,877
Reinvestment of distributions 561 4,814 112 1,004
Less shares repurchased (10,588) (91,691) (1,346) (12,343)
----------------------------------------------------------------------------------------
Net increase 7,324 $ 65,032 507,570 $5,070,538
========================================================================================
Class C*
Shares sold 15,860 $138,415 506,311 $5,056,859
Reinvestment of distributions 481 4,138 45 400
Less shares repurchased (965) (8,106) (636) (5,614)
----------------------------------------------------------------------------------------
Net increase 15,376 $134,447 505,720 $5,051,645
========================================================================================
Class Y*
Shares sold -- $ -- 500,000 $5,000,000
Reinvestment of distributions -- -- -- --
Less shares repurchased -- -- -- --
----------------------------------------------------------------------------------------
Net increase -- $ -- 500,000 $5,000,000
========================================================================================
* Class A, Class C and Class Y shares were first publicly offered on
February 5, 2013.
The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 27
Financial Highlights
---------------------------------------------------------------------------------------------
Year Ended 2/5/13 (a)
10/31/14 to 10/31/13
---------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.07 $ 9.98
---------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.46 $ 0.29
Net realized and unrealized gain (loss) on investments (0.78) (1.01)
---------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.32) $ (0.72)
---------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.29) $ (0.15)
Tax return of capital (0.12) (0.04)
---------------------------------------------------------------------------------------------
Total distributions $ (0.41) $ (0.19)
---------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.73) $ (0.91)
---------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.34 $ 9.07
=============================================================================================
Total return* (3.65)% (7.37)%(b)
Ratio of net expenses to average net assets 1.14% 1.12%**
Ratio of net investment income (loss) to average net assets 5.26% 4.16%**
Portfolio turnover rate 29% 23%
Net assets, end of period (in thousands) $ 4,295 $ 4,605
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 2.71% 2.79%**
Net investment income (loss) 3.69% 2.49%**
=============================================================================================
(a) Class A shares were first publicly offered on February 5, 2013.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
---------------------------------------------------------------------------------------------------
Year Ended 2/5/13 (a)
10/31/14 to 10/31/13
---------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.06 $ 9.97
---------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.39 $ 0.23
Net realized and unrealized gain (loss) on investments (0.78) (0.99)
---------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.39) $ (0.76)
---------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.22) $ (0.11)
Tax return of capital (0.12) (0.04)
---------------------------------------------------------------------------------------------------
Total distributions $ (0.34) $ (0.15)
---------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.73) $ (0.91)
---------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.33 $ 9.06
===================================================================================================
Total return* (4.37)% (7.83)%(b)
Ratio of net expenses to average net assets 1.87% 1.86%**
Ratio of net investment income (loss) to average net assets 4.53% 3.42%**
Portfolio turnover rate 29% 23%
Net assets, end of period (in thousands) $ 4,340 $ 4,581
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 3.44% 3.54%**
Net investment income (loss) 2.96% 1.74%**
===================================================================================================
(a) Class C shares were first publicly offered on February 5, 2013.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 29
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------
Year Ended 2/5/13 (a)
10/31/14 to 10/31/13
--------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.08 $ 9.98
--------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.48 $ 0.31
Net realized and unrealized gain (loss) on investments (0.78) (1.01)
--------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.30) $ (0.70)
--------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.31) $ (0.16)
Tax return of capital (0.12) (0.04)
--------------------------------------------------------------------------------------------------
Total distributions $ (0.43) $ (0.20)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.73) $ (0.90)
--------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.35 $ 9.08
==================================================================================================
Total return* (3.37)% (7.15)%(b)
Ratio of net expenses to average net assets 0.85% 0.85%**
Ratio of net investment income (loss) to average net assets 5.55% 4.43%**
Portfolio turnover rate 29% 23%
Net assets, end of period (in thousands) $ 4,174 $ 4,540
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 2.42% 2.53%**
Net investment income (loss) 3.98% 2.75%**
==================================================================================================
(a) Class Y shares were first publicly offered on February 5, 2013.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
Notes to Financial Statements | 10/31/14
1. Organization and Significant Accounting Policies
Pioneer Emerging Markets Local Currency Debt Fund (the Fund) is a series of
Pioneer Series Trust VII, a Delaware statutory trust. The Fund is registered
under the Investment Company Act of 1940 as a non-diversified, open-end
management investment company. The investment objective of the Fund is total
return through a combination of income and capital appreciation.
The Fund offers three classes of shares designated as Class A, Class C, and
Class Y shares. Class A, Class C, and Class Y shares were first publicly
offered on February 5, 2013. Each class of shares represents an interest in the
same portfolio of investments of the Fund and has identical rights (based on
relative net asset values) to assets and liquidation proceeds. Share classes can
bear different rates of class-specific fees and expenses such as transfer agent
and distribution fees. Differences in class-specific fees and expenses will
result in differences in net investment income and, therefore, the payment of
different dividends from net investment income earned by each class. The Amended
and Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 31
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Fixed income
securities are valued at prices supplied by independent pricing services,
which consider such factors as market prices, market events, quotations from
one or more brokers, Treasury spreads, yields, maturities and ratings.
Valuations may be supplemented by dealers and other sources, as required.
Equity securities that have traded on an exchange are valued at the last
sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. PIM's fair
valuation team is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair values on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may include
credit ratings, the financial condition of the company, current market
conditions and comparable securities. The Fund may use fair value methods if
it is determined that a significant event has occurred after the close of
the exchange or market on which the security trades and prior to the
determination of the Fund's net asset value. Examples of a significant event
might include political or economic news, corporate restructurings, natural
disasters, terrorist activity or trading halts. Thus, the valuation of the
Fund's securities may differ significantly from exchange prices and such
differences could be material.
At October 31, 2014, there were no securities that were valued using fair
value methods (other than securities that were valued using prices supplied
by independent pricing services or broker-dealers).
32 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis. Dividend and
interest income are reported net of unrecoverable foreign taxes withheld at
the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
October 31, 2014, the Fund did not accrue any interest or penalties with
respect to unrecognized tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years are subject to examination by
federal and state tax authorities.
In addition to the requirements of the internal Revenue Code, the fund may
also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain countries. During
the year ended October 31, 2014, the Fund paid $442 in such taxes.
In determining the daily net asset value, the Fund estimates the reserve for
such taxes, if any, associated with investments in certain countries. The
estimated reserve for the capital gains is based on the net unrealized
appreciation on certain portfolio securities, the holding period of such
securities and the related tax rates, tax loss carryforward (if applicable)
and other such factors. As of October 31, 2014, the Fund had $125 in reserve
related to capital gains.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 33
financial statement and tax purposes. Capital accounts within the financial
statements are adjusted for permanent book/tax differences to reflect tax
character, but are not adjusted for temporary differences. At October 31,
2014, the Fund reclassified $264,283 to increase distributions in excess
of net investment income and $264,283 to decrease accumulated net realized
loss on investments to reflect permanent book/tax differences. These
adjustments have no impact on net assets or the results of operations.
At October 31, 2014, the Fund was permitted to carry forward indefinitely
$91,009 of short-term losses and $44,087 of long-term losses under the
Regulated Investment Company Modernization Act of 2010 without limitation.
The tax character of distributions paid during the years ended October 31,
2014 and October 31, 2013, were as follows:
----------------------------------------------------------------------------
2014 2013
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $415,488 $210,841
Return of capital $179,112 63,730
----------------------------------------------------------------------------
Total $594,600 $274,571
============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2014:
-----------------------------------------------------------------------------
2014
-----------------------------------------------------------------------------
Distributable earnings:
Capital loss carryforward $ (135,096)
Dividend payable (52,455)
Net unrealized depreciation (2,065,709)
-----------------------------------------------------------------------------
Total $(2,253,260)
=============================================================================
The difference between book-basis and tax-basis net unrealized depreciation
is attributable to the mark-to-market of forward, futures, option and swap
contracts, and tax adjustments relating to credit default swaps.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly-owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $98 in underwriting commissions on the sale of Class A shares during
the during the year ended October 31, 2014.
D. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
34 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in the market prices of those securities but are included
with the net realized and unrealized gain or loss on investments.
E. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
is recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes
of shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net investment
income. All dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 35
G. Risks
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's investments in
foreign markets and countries with limited developing markets may subject
the Fund to a greater degree of risk than investments 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 contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
H. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
October 31, 2014 was $8,895. Subsequent payments for futures contracts
("variation margin") are paid or received by the Fund, depending on the
daily fluctuation in the value of the contracts, and are recorded by the
Fund as unrealized appreciation or depreciation. When the contract is
closed, the Fund realizes a gain or loss equal to the difference between the
opening and closing value of the contract. The use of futures contracts
involves, to varying degrees, elements of market, interest rate, currency
exchange rate and counterparty risks, which may exceed the amounts
recognized by the Fund. Changes in value of the contracts may not directly
correlate to changes in value of the underlying securities. The average
value of contracts open during the period ended October 31, 2014 was
$228,777.
At October 31, 2014, open futures contracts were as follows:
-----------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation/
Type Long/(Short) Month Value (Depreciation)
-----------------------------------------------------------------------------------
F/C U.S. 5 Yr Note (5) 12/14 $(597,148) $(3,125)
-----------------------------------------------------------------------------------
$(597,148) $(3,125)
===================================================================================
I. Interest Rate Swap Contracts
The Fund may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance its income. Pursuant to the
interest rate swap agreement, the Fund negotiates with a counterparty to
exchange a
36 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
periodic stream of payments based on a benchmark interest rate. One cash
flow stream will typically be a floating rate payment based upon the
specified floating benchmark interest rate while the other is typically a
fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly basis.
Periodic payments received or paid by the Fund are recorded as realized
gains or losses in the Statement of Operations. Interest rate swap contracts
are marked-to-market daily using valuations supplied by independent sources
and the change in value, if any, is recorded as unrealized appreciation or
depreciation in the Statement of Assets and Liabilities. Interest rate swap
contracts are subject to counterparty risk and movements in interest rates.
Open interest rate swap contracts at October 31, 2014 are listed in the
Schedule of Investments. The average value of interest rate swap contracts
open during the year ended October 31, 2014 was $906.
J. Cross Currency Swap Contracts
The Fund may enter into a cross currency swap contract to attempt to manage
and/or gain exposure to fluctuations in interest and/or currency exchange
rates. When entering into a cross currency swap contract, the Fund
negotiates with the counterparty to exchange a periodic stream of payments
(determined using fixed or floating rates) based on the notional amount of
two different currencies. The notional amounts are typically determined
based on exchange rates at the opening of the contract.
Cross currency swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Payments received or made under the contract or upon
termination of the contract are recognized, net of the appropriate amount of
any upfront payment, as realized gains or losses in the Statement of
Operations. Cross currency swaps are subject to counterparty risk.
Open cross currency swap contracts at October 31, 2014 are listed in the
Schedule of Investments. The average value of cross currency swap contracts
open during the period ended October 31, 2014 was $619.
K. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price, upon
the exercise of the option. When the Fund writes an option, an amount equal
to the premium received by the Fund is recorded as a liability and is
subsequently adjusted to the current value of the option written. Premiums
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 37
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the
underlying security in determining whether the Fund has realized a gain or
loss. The Fund as writer of an option bears the market risk of an
unfavorable change in the price of the security underlying the written
option.
The average value of contracts open during the year ended October 31, 2014
was $1,459. Written call option contracts outstanding at period end are
listed at the end of the Fund's schedule of investments.
The Fund held three written call option contracts that were open at October
31, 2014. If the call options were exercised at October 31, 2014, the
maximum amount the Fund would have been required to pay was $6,367.
Transactions in written options for the period ended October 31, 2014 are
summarized as follows:
------------------------------------------------------------------------------------------
Number of Contracts Premium Received
------------------------------------------------------------------------------------------
Options open at beginning of period -- $ --
Options opened (350,000) (6,367)
Options exercised -- --
Options closed -- --
Options expired -- --
------------------------------------------------------------------------------------------
Options open at end of period (350,000) $(6,367)
==========================================================================================
2. Management Agreement
PIM, a wholly-owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.70% of
the Fund's average daily net assets up to $1 billion and 0.65% on assets over $1
billion. For the year ended October 31, 2014, the effective management fee was
equivalent to 0.70% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund to
the extent required to reduce Fund expenses to 1.20%, 2.10% and 0.85% of the
average daily net assets attributable to Class A, Class C and Class Y shares,
respectively. Fees waived and expenses reimbursed during the year ended October
31, 2014 are reflected on the Statement of Operations. These expense limitations
are in effect through March 1, 2016. There can be no assurance that PIM will
extend the expense limitation agreement for a class of shares beyond the date
referred to above.
38 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$8,644 in management fees, administrative costs and certain other reimbursements
payable to PIM at October 31, 2014.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the year ended October 31, 2014, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $1,106
Class C 285
Class Y 30
--------------------------------------------------------------------------------
Total $1,421
================================================================================
Included in "Due from affiliates" reflected on the Statement of Assets and
Liabilities is $486 in transfer agent fees and out-of-pocket reimbursements
payable from PIMSS at October 31, 2014.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $299 in distribution fees payable to PFD
at October 31, 2014.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 39
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchases as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to PFD. For the
year ended October 31, 2014, CDSCs in the amount of $3,921 were paid to PFD.
5. Forward Foreign Currency Contracts
At October 31, 2014, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the year ended October 31, 2014 was $247.
Open forward foreign currency contracts at October 31, 2014 were as follows:
--------------------------------------------------------------------------------------------------------
Quantity/
Shares Net
Currency Purchased/ Settlement US $ Value Unrealized
Description Counterparty (Sold) Book Value Date at 10/31/14 Appreciation
--------------------------------------------------------------------------------------------------------
KZT
(Kazakhstani
Tenge) Barclays (12,000,000) $ 63,158 2/12/15 $ (60,752) $ 2,406
BRL (Brazilian Goldman Sachs
Real) Group, Inc. (95,933) 38,866 11/4/14 (38,733) 133
CLP (Chilean Morgan
Peso) Stanley 78,814,254 (129,469) 3/31/15 135,232 5,763
KZT
(Kazakhstani Morgan
Tenge) Stanley (12,000,000) 62,992 2/12/15 (60,865) 2,127
PEN (Peruvian Morgan
Nuevo Sol) Stanley (379,407) 128,831 3/31/15 (127,754) 1,077
RUB (Russian Morgan
Ruble) Stanley (2,720,387) 64,319 11/5/14 (63,197) 1,122
--------------------------------------------------------------------------------------------------------
Total $ 12,628
========================================================================================================
40 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
--------------------------------------------------------------------------------------------------------
Quantity/
Shares Net
Currency Purchased/ Settlement US $ Value Unrealized
Description Counterparty (Sold) Book Value Date at 10/31/14 Depreciation
--------------------------------------------------------------------------------------------------------
KZT
(Kazakhstani
Tenge) Barclays 12,000,000 $ (62,761) 2/18/15 $ 60,752 $ (2,009)
PEN (Peruvian Deutsche
Nuevo Sol) Bank 373,419 (126,604) 3/31/15 125,737 (867)
BRL (Brazilian Goldman Sachs
Real) Group, Inc. 95,933 (39,249) 11/4/14 38,733 (516)
CLP (Chilean Goldman Sachs
Peso) Group, Inc. (76,667,658) 129,469 3/31/15 (131,549) (2,080)
KZT
(Kazakhstani Goldman Sachs
Tenge) Group, Inc. 12,000,000 (62,663) 2/18/15 60,865 (1,798)
NGN (Nigerian Goldman Sachs
Naira) Group, Inc. (27,306,915) 159,783 1/23/15 (160,558) (775)
RUB (Russian Morgan
Ruble) Stanley 2,720,387 (64,748) 11/5/14 63,197 (1,551)
--------------------------------------------------------------------------------------------------------
Total $ (9,596)
========================================================================================================
6. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended October 31, 2014, the Fund's expenses
were not reduced under such arrangements.
7. Assets and Liabilities Offsetting
Financial instruments subject to an enforceable master netting agreement have
been offset on the Statement of Assets and Liabilities. The following charts
show gross assets and liabilities of the Fund as of October 31, 2014.
---------------------------------------------------------------------------------------------------
Assets:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented in -------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
---------------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $12,628 $ -- $12,628 $ -- $ -- $12,628
Swap contracts 835 (835) -- -- -- --
Written options -- -- -- -- -- --
---------------------------------------------------------------------------------------------------
$13,463 $ (835) $12,628 $ -- $ -- $12,628
---------------------------------------------------------------------------------------------------
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 41
--------------------------------------------------------------------------------------------------
Liabilities:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Liabilities Assets and Liabilities
Gross Statement Presented in ------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Pledged Amount
--------------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 9,596 $ -- $ 9,596 $ -- $ -- $ 9,596
Swap contracts 2,169 (835) 1,334 -- -- 1,334
Written options 3,156 -- 3,156 -- -- 3,156
--------------------------------------------------------------------------------------------------
$ 14,921 $ (835) $ 14,086 $ -- $ -- $ 14,086
==================================================================================================
8. Additional Disclosures about Derivative Instruments and Hedging Activities
Values of derivative instruments as of October 31, 2014 were as follows:
--------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives 2014 Liabilities Derivatives 2014
Hedging Instruments -------------------------------------------------------------
Under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
--------------------------------------------------------------------------------------------
Forward foreign currency Net unrealized Net unrealized
contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $12,628 currency contracts $ 9,596
Swap contracts Net unrealized Net unrealized
appreciation on depreciation on
swaps contracts -- swap contracts 1,334
Futures contracts Net unrealized Net unrealized
appreciation on depreciation on
futures contracts -- futures contracts 3,125
Written options Written options -- Written options 3,156
--------------------------------------------------------------------------------------------
Total $12,628 $17,211
============================================================================================
42 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
The effect of derivative instruments on the Statement of Operations for the year
ended October 31, 2014 was as follows:
----------------------------------------------------------------------------------------------
Change in
Derivatives Not Unrealized
Accounted for as Realized Appreciation or
Hedging Instruments Gain on (Depreciation)
Under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
----------------------------------------------------------------------------------------------
Forward foreign Net realized gain (loss) on forward
currency contracts foreign currency contracts $ (43)
Forward foreign Change in unrealized appreciation
currency contracts (depreciation) on forward foreign
currency contracts $ 3,032
Futures contracts Net realized gain (loss) on futures
contracts $ (1,860)
Futures contracts Change in net unrealized appreciation
(depreciation) on futures contracts $(3,125)
Swap contracts Net realized gain (loss) on swap
contracts $ 317
Swap contracts Change in net unrealized appreciation
(depreciation) on swap contracts $(4,658)
Written options Net realized gain (loss) on written
options $ --
Written options Change in net unrealized appreciation
(depreciation) on written options $ 3,211
9. Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Fund, with the approval and recommendation of the
Audit Committee, appointed Deloitte & Touche LLP to serve as the Fund's
independent registered public accounting firm for the fiscal year ending October
31, 2014. Deloitte & Touche LLP replaces Ernst & Young LLP, which resigned as
the Fund's independent registered public accounting firm, effective upon
completion of the audit of the Fund's financial statements for the period from
February 5, 2013 (Commencement of Operations) through October 31, 2013.
During the period that Ernst & Young LLP served as the Fund's independent
registered public accounting firm, Ernst & Young LLP's reports on the financial
statements of the Fund have not contained an adverse opinion or disclaimer of
opinion and have not been qualified or modified as to uncertainty, audit scope
or accounting principles. Further, there have been no disagreements with Ernst &
Young LLP on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which, if not resolved to
the satisfaction of Ernst & Young LLP would have caused Ernst & Young LLP to
make reference to the subject matter of the disagreement in connection with its
report on the financial statements. In addition, there have been no reportable
events of the kind described in Item 304 (a)(1)(v) of Regulation S-K under the
Securities Exchange Act of 1934.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 43
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII and the Shareowners of
Pioneer Emerging Markets Local Currency Debt Fund
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Emerging Markets Local Currency Debt
Fund (the "Fund") (one of the funds constituting Pioneer Series Trust VII), as
of October 31, 2014, and the related statements of operations and changes in net
assets, and the financial highlights for year then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit. The statement of changes
in net assets and the financial highlights of the Fund for the period ended
October 31, 2013 were audited by other auditors. Those auditors expressed an
unqualified opinion on those financial statements and financial highlights in
their report dated December 23, 2013.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of October 31, 2014, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Emerging Markets Local Currency Debt Fund as of October 31, 2014, and
the results of its operations, the changes in its net assets, and the financial
highlights for the year then ended, in conformity with accounting principles
generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 24, 2014
44 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
ADDITIONAL INFORMATION (unaudited)
The percentages of the Fund's ordinary income distributions that are exempt from
nonresident alien (NRA) tax withholding resulting from qualified interest income
was 0.89%.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 45
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Emerging Markets Local Currency Debt Fund (the Fund) pursuant to an
investment advisory agreement between PIM and the Fund. In order for PIM to
remain the investment adviser of the Fund, the Trustees of the Fund must
determine annually whether to renew the investment advisory agreement for the
Fund.
The contract review process began in January 2014 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2014 and July
2014. Supplemental contract review materials were provided to the Trustees in
September 2014. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year, and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings, in connection with the review of the Fund's
investment advisory agreement.
In March 2014, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio manager in the Fund. In July 2014,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2014.
At a meeting held on September 16, 2014, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. In all quintile rankings referred to throughout this
46 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
disclosure, first quintile is most favorable to the Fund's shareowners. The
Trustees did not identify any single factor as the controlling factor in
determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for the
Fund and its research process. The Trustees considered the resources of PIM and
the personnel of PIM who provide investment management services to the Fund.
They also reviewed the amount of non-Fund assets managed by the portfolio
manager of the Fund. The Trustees considered the non-investment resources and
personnel of PIM involved in PIM's services to the Fund, including PIM's
compliance and legal resources and personnel. The Trustees noted the substantial
attention and high priority given by PIM's senior management to the Pioneer fund
complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
analysis and data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees confirmed that these regular reviews and
discussions were factored into the Trustees' deliberations concerning the
renewal of the advisory agreement. For purposes of their contract renewal
deliberations, the Trustees considered the discussions held throughout the year
regarding the Fund's performance and the performance
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 47
results of the Fund over various time periods, including the Fund's performance
results for periods ended June 30, 2014. The Trustees indicated that they were
satisfied with PIM's response to the Fund's performance issues.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2014 was in the fourth quintile relative to the management fees
paid by other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoint in the management fee schedule and the
reduced fee rate above a certain asset level. The Trustees noted the Fund's
relatively small asset size compared to most of the other funds in its peer
groups, and that the Fund has not been able to take advantage of the economies
of scale afforded by greater asset size. The Trustees considered that the
expense ratio of the Fund's Class A shares for the twelve months ended June 30,
2014 was in the first quintile relative to its Morningstar peer group and in the
first quintile relative its Strategic Insight peer group, in each case for the
comparable period. The Trustees noted that PIM was waiving fees and/or
reimbursing expenses in order to limit the ordinary operating expenses of the
Fund. The Trustees considered the impact of transfer agency, sub-transfer
agency, and other non-management fee expenses on the expense ratios of the Fund.
The Trustees noted that they separately review the Fund's transfer agency,
sub-transfer agency and intermediary arrangements.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader
48 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
in scope, including oversight of the Fund's other service providers and
activities related to compliance and the extensive regulatory and tax regimes to
which the Fund is subject. The Trustees also considered the different
entrepreneurial risks associated with PIM's management of the Fund and Pioneer's
management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoint in the management fee schedule. The Trustees recognize that
economies of scale are difficult to identify and quantify, and that, among other
factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Fund. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons including reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 49
Pioneer is the principal U.S. asset management business of Pioneer Global Asset
Management, the worldwide asset management business of UniCredit Group, which
manages over $150 billion in assets (including the Funds). Pioneer and the Funds
receive reciprocal intangible benefits from the relationship, including mutual
brand recognition and, for the Funds, direct and indirect access to the
resources of a large global asset manager. The Trustees concluded that any such
benefits received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
50 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least 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 serves as a Trustee of
each of the 53 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 51
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (64) Trustee since 2012. Private investor (2004-2008 and Director, Broadridge Financial
Chairman of the Board Serves until a 2013-present); Chairman (2008 - 2013) and Solutions, Inc. (investor
and Trustee successor trustee is Chief Executive Officer (2008 - 2012), communications and securities
elected or earlier Quadriserv, Inc. (technology products for processing provider for financial
retirement or removal. securities lending industry); and Senior services industry) (2009 -
Executive Vice President, The Bank of New present); Director, Quadriserv,
York (financial and securities services) Inc. (2005 - 2013); and
(1986 - 2004) Commissioner, New Jersey State
Civil Service Commission (2011 -
present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (70) Trustee since 2012. Managing Partner, Federal City Capital Director of Enterprise Community
Trustee Serves until a Advisors (corporate advisory services Investment, Inc. (privately-held
successor trustee is company) (1997 - 2004 and 2008 - present); affordable housing finance
elected or earlier Interim Chief Executive Officer, Oxford company) (1985 - 2010); Director
retirement or removal. Analytica, Inc. (privately-held research and of Oxford Analytica, Inc. (2008 -
consulting company) (2010); Executive Vice present); Director of The Swiss
President and Chief Financial Officer, Helvetia Fund, Inc. (closed-end
I-trax, Inc. (publicly traded health care fund) (2010 - present); and
services company) (2004 - 2007); and Director of New York Mortgage
Executive Vice President and Chief Financial Trust (publicly traded mortgage
Officer, Pedestal Inc. (internet-based REIT) (2004 - 2009, 2012 -
mortgage trading company) (2000 - 2002) present)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (70) Trustee since 2012. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and Mellon
successor trustee is Institutional Funds Master
elected or earlier Portfolio (oversaw 17 portfolios
retirement or removal. in fund complex) (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (67) Trustee since 2012. Founding Director, Vice President and None
Trustee Serves until a successor Corporate Secretary, The Winthrop Group,
trustee is elected or Inc. (consulting firm) (1982 - present);
earlier retirement or Desautels Faculty of Management, McGill
removal. University (1999 - present); and Manager of
Research Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (66) Trustee since 2012. President and Chief Executive Officer, Director of New America High
Trustee Serves until a successor Newbury, Piret & Company, Inc. (investment Income Fund, Inc. (closed-end
trustee is elected or banking firm) (1981 - present) investment company) (2004 -
earlier retirement or present); and member, Board of
removal. Governors, Investment Company
Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (67)** Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a successor (2012 - present); Executive Vice President,
trustee is elected or BNY Mellon (financial and investment company
earlier retirement or services) (1969 - 2012); Director, BNY
removal. International Financing Corp. (financial
services) (2002 - 2012); and Director,
Mellon Overseas Investment Corp. (financial
services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 53
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (56)* Trustee since 2014. Director and Executive Vice President None
Trustee Serves until a (since 2008) and Chief Investment Officer,
successor trustee is U.S. (since 2010), of PIM-USA; Executive
elected or earlier Vice President of Pioneer (since 2008);
retirement or removal. Executive Vice President of Pioneer
Institutional Asset Management, Inc. (since
2009); Portfolio Manager of Pioneer (since
1999)
------------------------------------------------------------------------------------------------------------------------------------
54 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (58)** Advisory Trustee since Chief Investment Officer, 1199 SEIU National None
2014. Benefit and Pension Funds (health care
workers union pension Funds) (2001 -
present); Vice President - International
Investments Group, American International
Group, Inc. (insurance company) (1993 -
2001); Vice President, Corporate Finance
and Treasury Group, Citibank, N.A. (1980 -
1986 and 1990 - 1993); Vice President -
Asset/Liability Management Group, Federal
Farm Funding Corp. (government-sponsored
Issuer of debt securities) (1988 - 1990);
Mortgage Strategies Group, Shearson Lehman
Hutton, Inc. (investment bank) (1987 -
1988); and Mortgage Securities Group,
Drexel Burnham Lambert, Ltd. (investment
bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer or director of
the Fund's investment adviser and certain of its affiliates.
** Mr. Ricciardi became a Trustee and Ms. Monchak became a non-voting Advisory
Trustee on November 11, 2014.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 55
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (52) Since 2014. Serves at Chair, Director, CEO and President of None
President and the discretion of the Pioneer Investment Management USA (since
Chief Executive Officer Board. September 2014); Chair, Director, CEO and
President of Pioneer Investment Management,
Inc. (since September 2014); Chair,
Director, CEO and President of Pioneer Funds
Distributor, Inc. (since September 2014);
Chair, Director, CEO and President of
Pioneer Institutional Asset Management, Inc.
(since September 2014); and Chair, Director,
and CEO of Pioneer Investment Management
Shareholder Services, Inc. (since September
2014); Managing Director, Morgan Stanley
Investment Management (2010 - 2013); and
Director of Institutional Business, CEO of
International, Eaton Vance Management (2005
- 2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (49) Since 2012. Serves at Vice President and Associate General Counsel None
Secretary and Chief the discretion of the of Pioneer since January 2008; Secretary and
Legal Officer Board. Chief Legal Officer of all of the Pioneer
Funds since June 2010; Assistant Secretary
of all of the Pioneer Funds from September
2003 to May 2010; and Vice President and
Senior Counsel of Pioneer from July 2002 to
December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (53) Since 2012. Serves at Fund Governance Director of Pioneer since None
Assistant Secretary the discretion of the December 2006 and Assistant Secretary of all
Board. the Pioneer Funds since June 2010; Manager -
Fund Governance of Pioneer from December
2003 to November 2006; and Senior Paralegal
of Pioneer from January 2000 to November
2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (52) Since 2012. Serves at Senior Counsel of Pioneer since May 2013 and None
Assistant Secretary the discretion of the Assistant Secretary of all the Pioneer Funds
Board. since June 2010; Counsel of Pioneer from
June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2012. Serves at Vice President - Fund Treasury of Pioneer; None
Treasurer and Chief Financial the discretion of the Treasurer of all of the Pioneer Funds since
and Accounting Officer Board. March 2008; Deputy Treasurer of Pioneer from
of the Fund March 2004 to February 2008; and Assistant
Treasurer of all of the Pioneer Funds from
March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (49) Since 2012. Serves at Director - Fund Treasury of Pioneer; and None
Assistant Treasurer the discretion of the Assistant Treasurer of all of the Pioneer
Board. Funds
------------------------------------------------------------------------------------------------------------------------------------
56 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (56) Since 2012. Serves at Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Pioneer; and Assistant Treasurer of all of
Board. the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2012. Serves at Fund Administration Manager - Fund Treasury None
Assistant Treasurer the discretion of the of Pioneer since November 2008; Assistant
Board. Treasurer of all of the Pioneer Funds since
January 2009; and Client Service Manager -
Institutional Investor Services at State
Street Bank from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (62) Since 2012. Serves at Chief Compliance Officer of Pioneer and of None
Chief Compliance Officer the discretion of the all the Pioneer Funds since March 2010;
Board. Director of Adviser and Portfolio Compliance
at Pioneer since October 2005; and Senior
Compliance Officer for Columbia Management
Advisers, Inc. from October 2003 to October
2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (43) Since 2012. Serves at Director - Transfer Agency Compliance of None
Anti-Money Laundering Officer the discretion of the Pioneer and Anti-Money Laundering Officer of
Board. all the Pioneer funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 57
This page for your notes.
58 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
This page for your notes.
Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14 59
This page for your notes.
60 Pioneer Emerging Markets Local Currency Debt Fund | Annual Report | 10/31/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms
1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
INVESTMENT(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member
(C) 2014 Pioneer Investments 27375-01-1214
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Audit Fees
The audit services provided to the Fund were totaled
approximately $150,024 payable to Deloitte & Touche
LLP for the year ended October 31, 2014 and $115,992
were paid to the former auditor, Ernst & Young LLP
for the year ended October 31, 2013.
(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 audit related fees and other fees for
the Trust payable to Deloitte & Touche LLP for
the year ended October 31, 2014 and no audit related
fees and other fees were paid to the former auditor,
Ernst & Young LLP for the year ended October 31, 2013.
(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 $26,250 payable to
Deloitte & Touche LLP for the year ended October 31,
2014 and $24,393 were paid to the former auditor,
Ernst & Young LLP for the year ended October 31, 2013.
(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.
Audit-Related Fees and Other Fees
There were no audit related fees and other fees for
the Trust payable to Deloitte & Touche LLP for
the year ended October 31, 2014 and no audit related
fees and other fees were paid to the former auditor,
Ernst & Young LLP for the year ended October 31, 2013.
(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 Trust'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 Trust. For the years ended October 31, 2014
and 2013, there were no services provided to an affiliate
that required the Trust's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Trust were $26,250
payable to Deloitte & Touche LLP for the year ended
October 31, 2014 and $24,393 were paid to the former
auditor, Ernst & Young LLP for the year ended October 31,
2013.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Trust's audit committee of the Board of Trustees has
considered whether the provision of non-audit services
that were rendered to the Affiliates (as defined) that were
not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining
the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust VII
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 29, 2014
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 29, 2014
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 29, 2014
* Print the name and title of each signing officer under his or her signature.