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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 811-21823
Pioneer Series Trust V
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: August 31
Date of reporting period: September 1, 2014 through February 28, 2015
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 Absolute Return
Bond Fund
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Semiannual Report | February 28, 2015
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Ticker Symbols:
Class A ABRDX
Class C ARCBX
Class K ARBKX
Class Y ARBYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 31
Notes to Financial Statements 39
Approval of Investment Advisory Agreement 59
Trustees, Officers and Service Providers 64
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 1
President's Letter
Dear Shareowner,
Today's market environment presents numerous opportunities as well as challenges
for investors. A disparate global economic landscape has formed, with the U.S.
facing prospects for continued growth, while questions abound regarding the
outlook for other regions. Employment, household income, and corporate profits
have been rising in the U.S. and inflation pressures remain low. However, many
countries across Europe as well as Japan face muted growth. In addition, a
variety of factors have clouded the outlook for countries such as Russia and
Brazil and China's investment-driven economy continues to slow.
Monetary policies of major central banks are diverging, reflecting different
economic conditions. With the U.S. economy no longer in need of extraordinary
stimulus, the Federal Reserve Board may be closer to raising short-term interest
rates. Conversely, the European Central Bank and the Bank of Japan are likely to
be adding, not removing, stimulus.
While we anticipate continued growth for the U.S., the outlook is far from
certain, nor is the outlook for other regions necessarily dire. It remains to be
seen how weakness outside the U.S. will affect global growth and whether easing
monetary policies in other regions will spur an economic recovery.
While these economic conditions may lead to increasing volatility in 2015, we
believe the opportunity for investors to earn attractive returns will persist.
However, in an environment where interest rates remain low and equity valuations
have been buoyed by an extended bull market, we believe it is imperative
investors adhere to a disciplined investment approach that is consistent with
one's goals and objectives, being mindful of the tradeoff between risk and
return.
Since 1928 Pioneer's investment professionals have been focused on identifying
and capitalizing on investment opportunities that present themselves in a
variety of ever changing market conditions, including those we face today. We
seek returns consistent with our strategies' stated style and
2 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
objectives and consistent with our shareholders' expectations, regardless of
market conditions. We believe our shareowners benefit from the experience
and tenure of our investment teams, the insights generated from extensive
research resources and a commitment to prudent risk management that seeks
to mitigate downside and preserve returns over time.
We encourage you to work with your financial advisor to develop an overall
investment plan that addresses both your short- and long-term goals, and to
implement such a plan in a disciplined manner, as we do when deploying
strategies on behalf of our shareowners.
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 Absolute Return Bond Fund | Semiannual Report | 2/28/15 3
Portfolio Management Discussion | 2/28/15
In the following interview, portfolio managers Tanguy Le Saout and Cosimo
Marasciulo discuss the factors that influenced Pioneer Absolute Return Bond
Fund's performance during the six-month period ended February 28, 2015, as well
as their investment approach in managing the Fund. Mr. Le Saout, Head of
European Fixed Income and a portfolio manager based in Pioneer's Dublin office,
and Mr. Marasciulo, Head of Government Bonds and a portfolio manager at Pioneer,
also based in Dublin, are responsible for the day-to-day management of the Fund.
Q How did the Fund perform during the six-month period ended February 28,
2015?
A Pioneer Absolute Return Bond Fund's Class A shares returned -1.13% at net
asset value during the six-month period ended February 28, 2015, while the
Fund's benchmark, the Bank of America Merrill Lynch (BofA ML) 3-Month U.S.
Treasury-Bill Index, returned 0.01%. During the same period, the average
return of the 230 mutual funds in Lipper's Alternative Credit Focus Funds
category was -0.65%, and the average return of the 427 mutual funds in
Morningstar's Non-Traditional Bond Funds category was -0.25%.
Q Can you provide an overview of the Fund's investment approach?
A Certainly. The big picture is that we aim to have the Fund's annualized
return exceed that of three-month Treasury bills on a rolling three-year
annualized basis, while targeting portfolio volatility that is similar to
that of T-bills as well. To achieve that goal, we seek to provide positive
absolute Fund returns over most trailing 12-month periods, regardless of
market conditions.
Obviously, if we are going to be successful in achieving our objectives, the
Fund's returns cannot be overly dependent on the price performance of one or
more fixed-income categories. Therefore, in seeking positive Fund returns
regardless of market conditions, we divide the portfolio into two distinct
parts.
The core of the Fund's portfolio is currently invested in three-month
Treasury bills. The remainder of the Fund's assets are invested in a range
of strategies, each of which is designed to provide the Fund with alpha, or
excess return. (Alpha measures risk-adjusted performance, representing
excess return relative to the return of the benchmark.). Each strategy is
4 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
focused on a different segment of the fixed-income market. Importantly,
each strategy seeks to benefit from both positive and negative markets. This
means the Fund is positioned in some asset categories within the broad
bond market through long exposures, while also positioned against other
asset categories via short exposures. This, in our view, provides the Fund
with an added level of diversification* across different asset classes when
compared with investment vehicles where asset allocation and security
selection are more closely tied together.
Importantly, we closely track the portfolio risks we have assumed across all
of the alpha-related strategies, and operate within an overall "risk budget"
for the portfolio based on our objective of avoiding negative Fund returns
over a 12-month period.
Q Can you review the principal portfolio investment strategies you implemented
during the six-month period ended February 28, 2015? How did those
strategies help or hinder the Fund's performance?
A The Fund's performance was hurt during the period by our shorting of two-
and five-year U.S. Treasuries, which was done in anticipation of rates
rising as market expectations of future Federal funds rate hikes solidified.
The position was negatively affected as U.S. interest rates made an
unprecedented intra-day roundtrip journey in mid-October 2014, declining
sharply on a wave of disappointing economic data releases before nearly
returning to their starting point. We closed the position at a loss prior to
the rebound in rates. The Fund's interest-rate exposure in Europe also
detracted from performance as we shorted longer-term rates, which declined
on news of the European Central Bank's (ECB's) plans to engage in purchases
of sovereign debt in the euro zone in an effort to support sovereign bonds.
In addition, a trade that sought to have the Fund benefit from interest-rate
disparities among peripheral European markets detracted from performance.
Specifically, we believed 10-year Italian rates had overshot on the downside
versus the German yield curve; however, the 10-year Italian bond yield
declined further on the news of the ECB's planned stimulus.
In addition to the portfolio's core position in 3-month Treasuries, we had a
number of different positions across the alpha portion of the portfolio
during the period. The Fund's currency strategy was the leading positive
contributor to returns during the six-month period. Specifically, the
portfolio was long the U.S. dollar versus other major currencies, including
* Diversification does not assure a profit nor protect against loss in a
declining market.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 5
the Japanese yen, the British pound and the euro. The Fund's positioning
versus the euro was especially advantageous, as the currency declined after
the ECB's stimulus announcement. In addition, the Fund was underweight the
U.S. dollar versus a number of high-yielding currencies -- in particular,
the Indian rupee, Turkish lira and South African rand. The underweights
added to the Fund's performance due to the higher incremental income
generated from holdings in those markets as compared with very low U.S.
interest rates.
On the relative value side of the portfolio, one strategy we used during the
period was to seek to take advantage of the shape of various yield curves.
In that vein, we had positioned the portfolio for Italy's yield curve to
flatten by overweighting that country's 30-year bond, with a corresponding
underweight of the short end of the curve. The position worked well as
Italian long rates declined in the wake of the ECB's announcement about bond
purchases. The Fund also had a position designed to benefit from a narrowing
of market expectations regarding the future spread (yield difference)
between European five-year rates versus U.S. and Swiss five-year rates. The
position aided the Fund's returns as Swiss rates fell on the news that the
country's central bank would discontinue efforts to cap the value of its
currency against the euro. Another relative value trade was designed to
benefit from an eventual narrowing of the yield differential provided by the
"dollar block" currencies of Canada, New Zealand and Australia against the
U.S. dollar. The position helped returns as Canada's central bank
unexpectedly cut its benchmark interest rate, leading yields to decline
along the curve.
With regard to specific positions, we implemented a number of trades that
paired a long position in the debt of one issuer with a short position in
the debt of another issuer. Examples of pair trades that detracted from the
Fund's performance during the period included a long position in integrated
oil giant BP, which was matched with a short position in U.K water company
United Utilities, and a long in information services firm Experian that was
paired with a short in Finnish energy company Fortrum.
Pair trades that contributed to the Fund's performance included a long
position in commodity trading and mining company Glencore, which was matched
with a short position in Spanish electric utility Iberdrola, and a long in
auto manufacturer Volvo that was paired with a short in German tire and auto
parts manufacturer Continental AG.
6 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
Q Could you discuss the use of derivative positions in the portfolio during
the six-month period ended February 28, 2015, and their effect on the Fund's
performance?
A Virtually all of the portfolio's strategies are implemented via derivatives,
and so the Fund's performance will always be affected by derivatives
trading. For instance, when we want to short U.S. Treasuries, we will do so
mainly by selling Treasury futures or sometimes by buying "put" options.
Similarly, in the currency sleeve of the Fund, we use forwards and options
to gain the desired exposures. With respect to credit markets, where there
are no liquid futures contracts, we may use credit default swaps to manage
the portfolio's exposures. In other situations, we utilize instruments such
as interest-rate or inflation swaps to implement our strategies.
Q What is your assessment of the current macroeconomic climate and the
opportunities it may present?
A Looking at the U.S. economy, the employment picture has improved notably,
and wages, which typically lag employment trends, should follow in time.
Market participants appear to have become somewhat complacent with respect
to the extent and pace of interest-rate increases once the U.S. Federal
Reserve begins to remove its very accommodative monetary policy stance.
Higher U.S. rates would likely support a continued strengthening for the
U.S. dollar versus other major currencies, although we are cautious in the
short-term given the extent of the dollar's recent gains.
The ECB surprised many other market participants with its announcement of
full-blown quantitative easing involving sovereign bond purchases. At
current yield levels, European bonds do not reflect any inflation premium;
however, we believe the ECB's intervention is likely to have much of the
desired impact on the region's economy, and we will look for entry points
where the Fund could possibly take advantage of any upward shift in investor
sentiment regarding inflation and interest rates.
These are among the macroeconomic factors we will monitor closely as we seek
to inform the various positions implemented within the alpha portion of the
portfolio.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 7
Please refer to the Schedule of Investments on pages 18-30 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
Pioneer Absolute Return Bond invests in derivatives, such as options, futures,
inverse floating-rate obligations, and swaps, among others, which can be
illiquid, may disproportionately increase losses, and have a potentially large
impact on the performance of the portfolio.
The Fund may take short positions, which involves leverage of its assets and
presents additional risks.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the Fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund employs leverage, which increases the volatility of investment returns
and subjects the Fund to magnified losses.
The Fund is subject to duration risk. Duration seeks to measure the price
sensitivity of a fixed income security to interest rates. The longer a
portfolio's duration, the more sensitive it will be to changes in interest
rates.
Investments in fixed-income securities involve interest rate, credit, inflation,
and reinvestment risks.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
Investments in high-yield or lower-rated securities are subject to
greater-than-average price volatility, illiquidity and possibility of default.
The securities issued by U.S. Government-sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
The portfolio may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
The Fund may invest in subordinated securities, which may be disproportionately
adversely affected by a default or even a perceived decline in creditworthiness
of the issuer.
8 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund may invest in event-linked bonds and other insurance-linked securities.
The return of principal and the payment of interest on insurance-linked
securities are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude.
The Fund may invest in floating-rate loans; the value of collateral, if any,
securing a floating-rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
There is no assurance that these and other strategies used by the Fund will be
successful. The Fund is not intended to outperform stocks and bonds during
strong market rallies. Please see the prospectus for a more complete discussion
of the Fund's risks.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 9
Portfolio Summary | 2/28/15
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Securities 69.8%
Foreign Government Bonds 28.3%
Swaptions 1.3%
Options 0.6%
Geographical Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
United States 71.7%
Italy 9.8%
Germany 8.2%
Ireland 4.7%
Spain 3.0%
Japan 2.6%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)*
1. U.S. Treasury Bills, 7/23/15 27.17%
--------------------------------------------------------------------------------
2. U.S. Treasury Bills, 11/12/15 19.82
--------------------------------------------------------------------------------
3. Deutsche Bundesrepublik Inflation Linked Bond, 0.1%, 4/15/23 8.16
--------------------------------------------------------------------------------
4. U.S. Treasury Bills, 4/2/15 7.06
--------------------------------------------------------------------------------
5. U.S. Treasury Bills, 1/7/16 6.51
--------------------------------------------------------------------------------
6. Italy Buoni Poliennali Del Tesoro, 2.35%, 9/15/19 6.38
--------------------------------------------------------------------------------
7. U.S. Treasury Bills, 3/5/15 5.43
--------------------------------------------------------------------------------
8. U.S. Treasury Bills, 5/28/15 3.80
--------------------------------------------------------------------------------
9. Japanese Government CPI Linked Bond, 0.1%, 9/10/23 2.39
--------------------------------------------------------------------------------
10. Spain Government Bond, 5.15%, 10/31/44 2.31
--------------------------------------------------------------------------------
* 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 Absolute Return Bond Fund | Semiannual Report | 2/28/15
Prices and Distributions | 2/28/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/15 8/31/14
--------------------------------------------------------------------------------
A $9.68 $9.88
--------------------------------------------------------------------------------
C $9.67 $9.84
--------------------------------------------------------------------------------
Y $9.68 $9.90
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/15 12/31/14*
--------------------------------------------------------------------------------
K $9.68 $9.64
--------------------------------------------------------------------------------
Distributions per Share: 9/1/14-2/28/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.0877 $ -- $ --
--------------------------------------------------------------------------------
C $0.0193 $ -- $ --
--------------------------------------------------------------------------------
K $ -- $ -- $ --
--------------------------------------------------------------------------------
Y $0.1125 $ -- $ --
--------------------------------------------------------------------------------
Index Definitions
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The Bank of America Merrill Lynch (BofA ML) 3-month US Treasury Bill Index is an
unmanaged market index of U.S. Treasury securities maturing in 90 days, that
assumes reinvestment of all income. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 12-15.
* Share class commenced operations on December 31, 2014.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 11
Performance Update | 2/28/15 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Absolute Return Bond Fund at public
offering price during the periods shown, compared to that of the Bank of America
Merrill Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
Net Public BofA ML
Asset Offering 3-Month
Value Price U.S. Treasury
Period (NAV) (POP) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -2.15% -6.23% 0.03%
--------------------------------------------------------------------------------
1 Year -1.63 -6.08 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.61% 1.15%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Absolute BofA ML 3-month US
Return Bond Fund Treasury Bill Index
1/31/2014 $9,550 $10,000
2/28/2014 $9,484 $10,001
2/28/2015 $9,329 $10,004
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
Performance Update | 2/28/15 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Absolute Return Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -2.88% -2.88% 0.03%
--------------------------------------------------------------------------------
1 Year -2.42 -2.42 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.35% 1.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Absolute BofA ML 3-month US
Return Bond Fund Treasury Bill Index
1/31/2014 $10,000 $10,000
2/28/2014 $9,930 $10,001
2/28/2015 $9,689 $10,004
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 13
Performance Update | 2/28/15 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class K shares of Pioneer Absolute Return Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
Net BofA ML
Asset 3-Month
Value U.S. Treasury
Period (NAV) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -2.15% 0.03%
--------------------------------------------------------------------------------
1 Year -1.63 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Absolute BofA ML 3-month US
Return Bond Fund Treasury Bill Index
1/31/2014 $10,000 $10,000
2/28/2014 $9,930 $10,001
2/28/2015 $9,768 $10,004
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class K shares for the period prior to the
commencement of operations of Class K shares on December 31, 2014, is the net
asset value performance of the Fund's Class A shares, which has not been
restated to reflect any differences in expenses, including Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares generally are higher
than those of Class K shares, the performance of Class K shares prior to their
inception would have been higher than the performance shown. For the period
beginning December 31, 2014, the actual performance of Class K shares is
reflected. Class K shares are not subject to sales charges and are available for
limited groups of eligible investors, including institutional investors. All
results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
Performance Update | 2/28/15 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Absolute Return Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
Net BofA ML
Asset 3-Month
Value U.S. Treasury
Period (NAV) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -1.92% 0.03%
--------------------------------------------------------------------------------
1 Year -1.48 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.36% 0.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Absolute BofA ML 3-month US
Return Bond Fund Treasury Bill Index
1/31/2014 $5,000,000 $5,000,000
2/28/2014 $4,970,000 $5,000,029
2/28/2015 $4,896,425 $5,001,567
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Absolute Return Bond Fund
Based on actual returns from September 1, 2014, through February 28, 2015.
--------------------------------------------------------------------------------
Share Class A C K Y
--------------------------------------------------------------------------------
Beginning Account
Value on 9/1/14* $1,000.00 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account
Value (after expenses)
on 2/28/15 $ 988.70 $ 984,70 $1,004.10 $ 989.20
--------------------------------------------------------------------------------
Expenses Paid
During Period** $ 5.03 $ 8.71 $ 1.24 $ 3.70
--------------------------------------------------------------------------------
* Period begins December 31, 2014 (commencement of operations) for Class K
shares.
** Expenses are equal to the Fund's annualized net expense ratio of 1.02%,
1.77%, 0.75% and 0.75% for Class A, Class C, Class K and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (60/365 for Class K shares) (to reflect the partial
year period).
16 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
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 Absolute Return Bond Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2014, through February 28, 2015.
--------------------------------------------------------------------------------
Share Class A C K Y
--------------------------------------------------------------------------------
Beginning Account
Value on 9/1/14* $1,000.00 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account
Value (after expenses)
on 2/28/15 $1,019.74 $1,016.02 $1,006.99 $1,021.08
--------------------------------------------------------------------------------
Expenses Paid
During Period** $ 5.11 $ 8.85 $ 1.24 $ 3.76
--------------------------------------------------------------------------------
* Period begins December 31, 2014 (commencement of operations) for Class K
shares.
** Expenses are equal to the Fund's annualized net expense ratio of 1.02%,
1.77%, 0.75% and 0.75% for Class A, Class C, Class K and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (60/365 for Class K shares) (to reflect the partial
year period).
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 17
Schedule of Investments | 2/28/15 (unaudited)
--------------------------------------------------------------------------------------------
Principal
Amount ($) Value
--------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 64.6%
1,200,000 U.S. Treasury Bills, 1/7/16 (b) $ 1,198,108
3,650,000 U.S. Treasury Bills, 11/12/15 (b) 3,647,091
1,000,000 U.S. Treasury Bills, 3/5/15 (b) 999,998
1,300,000 U.S. Treasury Bills, 4/2/15 (b) 1,299,971
700,000 U.S. Treasury Bills, 5/28/15 (b) 699,954
5,000,000 U.S. Treasury Bills, 7/23/15 (b) 4,998,957
------------
$ 12,844,079
--------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $12,843,017) $ 12,844,079
--------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 26.2%
EURO 1,239,996 Deutsche Bundesrepublik Inflation Linked Bond, 0.1%, 4/15/23 $ 1,502,364
EURO 179,000 Ireland Government Bond, 2.4%, 5/15/30 232,201
EURO 220,000 Ireland Government Bond, 3.4%, 3/18/24 302,018
EURO 240,000 Ireland Government Bond, 3.9%, 3/20/23 336,414
EURO 948,972 Italy Buoni Poliennali Del Tesoro, 2.35%, 9/15/19 1,174,744
EURO 45,000 Italy Buoni Poliennali Del Tesoro, 3.25%, 9/1/46 60,528
EURO 250,000 Italy Buoni Poliennali Del Tesoro, 3.5%, 3/1/30 343,358
EURO 85,000 Italy Buoni Poliennali Del Tesoro, 4.75%, 9/1/44 144,911
EURO 44,000 Italy Buoni Poliennali Del Tesoro, 5.0%, 9/1/40 74,781
JPY 3,590,440 Japanese Government CPI Linked Bond, 0.1%, 3/10/24 31,914
JPY 49,536,000 Japanese Government CPI Linked Bond, 0.1%, 9/10/23 440,713
EURO 80,000 Spain Government Bond, 4.7%, 7/30/41 133,989
EURO 235,000 Spain Government Bond, 5.15%, 10/31/44 424,775
------------
$ 5,202,710
--------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $5,318,934) $ 5,202,710
--------------------------------------------------------------------------------------------
PURCHASED PUT OPTIONS -- 0.2%
150,000 Put EUR/Call USD @ 1.34, 6/25/15 $ 32,798
140,000 Put EUR/Call USD Knock-out (Down-and-out) @ (1.08)
1.13, 3/3/15 1,539
--------------------------------------------------------------------------------------------
TOTAL PURCHASED PUT OPTIONS
(Premiums paid $4,455) $ 34,337
--------------------------------------------------------------------------------------------
PURCHASED CALL OPTIONS -- 0.4%
170,000 Call EUR/Put USD @ 1.3615, 6/15/23 $ --
170,000 Call USD/Put CAD Knock-out (Up-and-out) @ (1.2775)
1.246 11/3/15 514
200,000 Call USD/Put CAD Knock-out (Up-and-out) @ (1.289)
1.252, 2/3/15 437
230,000 Call USD/Put CNY @ 6.4, 10/25/16 7,887
250,000 Call USD/Put CNY @ 6.4, 10/25/16 8,572
250,000 Call USD/Put CNY @ 6.4, 10/25/16 8,572
150,000 Call USD/Put JPY @ 107, 5/12/15 15,806
The accompanying notes are an integral part of these financial statements.
18 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------------
Principal
Amount ($) Value
--------------------------------------------------------------------------------------------
PURCHASED CALL OPTIONS -- (continued)
190,000 Call USD/Put KRW Knock-out (Up-and-out) @ (1150)
1110 3/31/15 $ 688
210,000 Call USD/Put KRW Knock-out (Up-and-out) @ (1190) 1120
6/4/15 830
200,000 Call USD/Put KRW Knock-out (Up-and-out) @ (1200)
1120 3/19/15 579
200,000 Call USD/Put SGD @ 1.25, 6/25/15 16,956
200,000 Call USD/Put TWD @ 30, 6/26/15 9,281
--------------------------------------------------------------------------------------------
TOTAL PURCHASED CALL OPTIONS
(Premiums paid $29,131) $ 70,122
--------------------------------------------------------------------------------------------
PURCHASED SWAPTIONS -- 0.6%
2,180,000 Fixed 9/15/20 2.5% (SWP 9/11/15 Right to pay fixed) $ 7,551
2,180,000 Fixed 9/15/20 2.5% (SWP 9/11/15 Right to receive fixed) 71,471
500,000 Fixed 6/27/26 USD 3.42% (SWP 6/23/16 Right to pay fixed) 4,697
500,000 Fixed 6/27/26 USD 3.42% (SWP 6/23/16 Right to receive fixed) 48,548
--------------------------------------------------------------------------------------------
TOTAL PURCHASED SWAPTIONS
(Premiums paid $107,544) $ 132,267
--------------------------------------------------------------------------------------------
INTEREST RATE SWAPTIONS -- 0.6%
6,000,000 Fixed 6/3/35 1.62% (SWP 6/1/15 Right to pay fixed) $ 75
58,600,000 Fixed 6/3/35 JPY 1.62% (SWP 6/1/15 Right to pay fixed) 734
2,200,000 Fixed 11/11/17 1.65% (SWP 11/9/15 Right to pay fixed) 6,937
2,200,000 Fixed 11/11/17 1.65% (SWP 11/9/15 Right to receive fixed) 18,051
625,000 Fixed 2/15/27 0.97% (SWP 2/13/17 Right to pay fixed) 21,664
625,000 Fixed 2/15/27 0.97% (SWP 2/13/17 Right to receive fixed) 22,306
2,400,000 Fixed 11/16/25 1.21% (SWP 11/12/15 Right to pay fixed) 16,977
2,400,000 Fixed 11/16/25 2.21% (SWP 11/12/15 Right to pay fixed) 1,448
2,250,000 Fixed 2/25/18 1.7% (SWP 2/23/16 Right to pay fixed) 12,490
2,250,000 Fixed 2/25/18 1.7% (SWP 2/23/16 Right to receive fixed) 17,296
--------------------------------------------------------------------------------------------
TOTAL INTEREST RATE SWAPTIONS
(Premiums paid $190,228) $ 117,978
--------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 92.6%
(Cost $18,493,309) (a) $ 18,401,493
--------------------------------------------------------------------------------------------
WRITTEN INTEREST RATE SWAPTIONS -- (0.4)%
(4,800,000) Fixed 16 Nov 2025 1.71% (SWP 12 Nov 2015 Right to pay fixed) $ (10,130)
(900,000) Fixed 31 Jan 2045 1.54% (SWP 29 Jan 2035 Right to
receive fixed) (77,648)
------------
$ (87,778)
--------------------------------------------------------------------------------------------
TOTAL WRITTEN INTEREST RATE SWAPTIONS
(Premiums received $(119,986)) $ (87,778)
--------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 7.8% $ 1,560,906
--------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 19,874,621
============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 19
Schedule of Investments | 2/28/15 (unaudited) (continued)
(a) At February 28, 2015, the net unrealized depreciation on investments
based on cost for federal income tax purposes of $18,493,309 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 260,822
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (352,638)
---------
Net unrealized depreciation $ (91,816)
=========
(b) Security issued with a zero coupon. Income is earned through
accrection of discount.
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
CAD Canadian Dollar
CNY New Chinese Yuan
EURO European Euro
GBP British Pound Sterling
JPY Japanese Yen
KRW South Korean Won
SGD Singapore Dollar
TWD Taiwan Dollar
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 28, 2015 aggregated $3,074,799 and $2,405,558,
respectively.
CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
-----------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
-----------------------------------------------------------------------------------------------------------
EUR (300,000) Credit Suisse Alstom Plc 1.00% 3/20/20 $ (7,974) $ (850)
International
EUR (270,000) Credit Suisse B.A.T. International 1.00% 9/20/19 (9,461) (638)
International Finance Plc
EUR (250,000) Credit Suisse Bouygues SA 1.00% 12/20/19 (5,234) (3,666)
International
EUR (500,000) Credit Suisse Carrefour SA 1.00% 3/20/20 (14,357) (8,955)
International
EUR (250,000) Credit Suisse Carrefour SA 1.00% 3/20/19 (2,002) (6,396)
International
EUR (280,000) Credit Suisse Cie De 1.00% 9/20/19 (6,915) (1,513)
International Saint-Gobain
EUR (280,000) Credit Suisse Continental AG 1.00% 6/20/19 (7,251) (2,731)
International
EUR (280,000) Credit Suisse Fortum Oyj 1.00% 9/20/19 (8,782) 227
International
The accompanying notes are an integral part of these financial statements.
20 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION (continued)
-----------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
-----------------------------------------------------------------------------------------------------------
(1,050,000) Deutsche Bank Markit CDX 1.00% 12/20/18 $ (18,211) $ (4,989)
North America
Investment
Grade Index
EUR (275,000) Goldman Sachs United 1.00% 12/20/19 (173) (2,887)
International Utilities Plc
EUR (650,000) Goldman Sachs Valeo SA 1.00% 3/20/20 (19,001) (2,761)
International
EUR (400,000) Goldman Sachs Valeo SA 1.00% 3/20/20 (11,430) (1,962)
International
EUR (270,000) Morgan Stanley Eni S.p.A. 1.00% 9/20/19 (8,630) 1,719
Capital
Services LLC
-----------------------------------------------------------------------------------------------------------
$(119,421) $(35,402)
===========================================================================================================
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
-----------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Received Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Paid) (Depreciation)
-----------------------------------------------------------------------------------------------------------
EUR (2,425,000) Intercontinental Markit iTraxx 1.00% 12/20/19 $(57,983) $(12,588)
Exchange Europe Index
EUR (570,000) Intercontinental Markit iTraxx 1.00% 6/20/19 (38,471) 17,563
Exchange Europe Index
-----------------------------------------------------------------------------------------------------------
$(96,454) $ 4,975
===========================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 21
Schedule of Investments | 2/28/15 (unaudited) (continued)
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
----------------------------------------------------------------------------------------------------------------------
Net
Notional Obligation Premiums Unrealized
Principal Entity/ Credit Expiration Paid Appreciation
($)(1) Counterparty Index Coupon Rating(2) Date (Received) (Depreciation)
----------------------------------------------------------------------------------------------------------------------
EUR 320,000 Barclays Tesco Plc 1.00% BBB 9/20/19 $ 410 $ (5,341)
Bank plc
EUR 250,000 Credit Suisse Casino 1.00% BBB- 3/20/20 1,411 1,764
International Guichard
Perrachon SA
EUR 250,000 Credit Suisse Casino 1.00% BBB- 3/20/19 (3,293) 8,245
International Guichard
Perrachon SA
EUR 650,000 Barclays Bank EADS 1.00% A 3/20/20 18,574 2,581
Plc Finance BV
EUR 400,000 Goldman Sachs Electricitie 1.00% A+ 3/20/20 10,731 2,015
International de France SA
EUR 250,000 Credit Suisse Glencore 1.00% BBB 12/20/19 (7,505) 3,629
International Finance
Europe SA
EUR 270,000 Credit Suisse Imperial 1.00% BBB 9/20/19 4,493 3,253
International Tobacco
Finance Plc
EUR 280,000 Credit Suisse Vinci SA 1.00% A- 9/20/19 7,807 803
International
EUR 250,000 Credit Suisse Vinci SA 1.00% A- 12/20/19 4,922 2,702
International
EUR 250,000 Credit Suisse Volkswagen 1.00% A 3/20/20 5,903 2,936
International International
Finance NV
EUR 500,000 Credit Suisse Volkswagen 1.00% A 3/20/20 13,210 4,460
International International
Finance NV
EUR 280,000 Credit Suisse Volvo 1.00% BBB 6/20/19 (53) 5,744
International Treasury AB
EUR 750,000 Morgan Stanley Markit iTraxx 1.00% CCC+ 12/20/18 10,304 11,474
International Europe Index
Service
EUR 250,000 Morgan Stanley BP Capital 1.00% A 12/20/19 5,981 (48)
Capital Markets
Services LLC
EUR 275,000 Morgan Stanley BP Capital 1.00% A 12/20/19 5,250 1,276
Capital Markets
Services LLC
EUR 280,000 Morgan Stanley Experian 1.00% A- 9/20/19 10,780 (1,074)
Capital Finance Plc
Services LLC
EUR 270,000 Morgan Stanley Repsol 1.00% BBB- 9/20/19 3,629 (77)
Capital International
Services LLC Finance BV
----------------------------------------------------------------------------------------------------------------------
$ 92,554 $44,342
======================================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer or weighted average of all
the underlying securities of the index.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
The accompanying notes are an integral part of these financial statements.
22 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
INFLATION RATE SWAP AGREEMENTS
-----------------------------------------------------------------------------------------------------------------
Net
Unrealized
Notional Pay/ Annual Expiration Appreciation
Principal ($) Counterparty Receive Index Fixed Rate Date (Depreciation)
-----------------------------------------------------------------------------------------------------------------
498,000 Credit Suisse International Pay USCPI 2.138% 3/3/19 $ 15,020
994,250 Credit Suisse International Pay USCPI 2.145% 2/7/19 28,278
EUR 320,000 Goldman Sachs Pay EUCPI 0.750% 3/3/20 (1,531)
International
EUR (140,000) Goldman Sachs Receive EUCPI 0.825% 12/5/19 (1,174)
International
EUR (600,000) Goldman Sachs Receive EUCPI 1.209% 2/5/25 (686)
International
EUR 600,000 Goldman Sachs Pay EUCPI 0.770% 2/5/20 198
International
EUR (320,000) Goldman Sachs Receive EUCPI 1.200% 3/3/25 1,119
International
EUR (367,500) Morgan Stanley Capital Receive EUCPI 1.238% 2/7/19 (14,754)
Services LLC
EUR (181,000) Morgan Stanley Capital Receive EUCPI 1.210% 3/3/19 (7,124)
Services LLC
EUR (575,000) Morgan Stanley Capital Pay EUCPI 0.525% 1/20/20 (6,903)
Services LLC
480,000 Morgan Stanley Capital Pay USCPI 1.647% 2/20/20 (4,263)
Services LLC
EUR (310,000) Morgan Stanley Capital Receive EUCPI 0.728% 2/26/20 650
Services LLC
338,000 Morgan Stanley Capital Pay USCPI 1.705% 12/5/19 2,987
Services LLC
EUR (878,000) Morgan Stanley Capital Receive EUCPI 0.550% 1/20/20 9,296
Services LLC
EUR (575,000) Morgan Stanley Capital Receive EUCPI 1.030% 1/20/25 10,107
Services LLC
-----------------------------------------------------------------------------------------------------------------
$ 31,220
=================================================================================================================
EUCPI Eurostat Eurozone HICP Ex Tobacco Unrevised Series NSA.
USCPI United States Consumer Price Index.
NOTE : Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EUR Euro
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 23
Schedule of Investments | 2/28/15 (unaudited) (continued)
INTEREST RATE SWAP AGREEMENTS
--------------------------------------------------------------------------------------------------------------------------
Annual Premiums Net Unrealized
Notional Pay/ Floating Fixed Expiration Paid Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Received) (Depreciation)
--------------------------------------------------------------------------------------------------------------------------
AUD (545,000) Morgan Stanley Receive LIBOR AUD 3.604% 10/16/24 $ -- $ (31,078)
Capital Services LLC 3 Month
AUD (588,500) Morgan Stanley Receive LIBOR AUD 3.510% 1/13/25 -- (4,304)
Capital Services LLC 3 Month
AUD (588,500) Morgan Stanley Receive LIBOR AUD 3.285% 1/13/25 -- (77)
Capital Services LLC 3 Month
AUD (618,000) Morgan Stanley Receive LIBOR AUD 3.150% 2/5/25 -- 2,727
Capital Services LLC 3 Month
AUD 1,814,000 Morgan Stanley Pay LIBOR AUD 2.230% 2/6/18 -- 3,876
Capital Services LLC 3 Month
CNY 1,400,000 Goldman Sachs Pay China Fixing 2.860% 2/4/20 -- (3,289)
International Repo Rates
7 day
CNY 1,400,000 Goldman Sachs Pay China Fixing 2.910% 2/3/20 -- (2,782)
International Repo Rates
7 day
CNY 1,400,000 Morgan Stanley Pay China Fixing 2.940% 2/9/20 -- (2,391)
Capital Services LLC Repo Rates
7 day
CNY 1,400,000 Morgan Stanley Pay China Fixing 3.080% 2/26/20 -- (746)
Capital Services LLC Repo Rates
7 day
EUR (1,930,000) Deutsche Bank Receive EURIBOR 2.703% 7/9/23 -- (198,277)
6 Month
EUR 260,000 Deutsche Bank Receive EURIBOR 2.558% 2/11/54 -- (120,216)
6 Month
EUR 900,000 Deutsche Bank Pay EURIBOR 1.500% 1/31/45 39,517 (41,171)
6 Month
EUR (970,000) Deutsche Bank Receive EURIBOR 1.538% 12/15/64 -- (28,808)
6 Month
EUR (80,000) Deutsche Bank Receive EURIBOR 1.824% 11/11/44 -- (14,359)
6 Month
EUR 400,000 Deutsche Bank Pay EURIBOR 1.320% 2/16/55 -- (2,485)
6 Month
EUR (125,000) Deutsche Bank Receive EURIBOR 0.945% 2/15/27 -- 185
6 Month
EUR 300,000 Deutsche Bank Pay EURIBOR 0.299% 2/26/20 -- 596
6 Month
EUR 140,000 Deutsche Bank Pay EURIBOR 0.411% 12/5/19 -- 1,279
6 Month
EUR 1,110,000 Deutsche Bank Pay EONIA 1 Day 0.037% 2/23/20 -- 1,468
Interbank
Rate
EUR (510,000) Deutsche Bank Receive EURIBOR 0.980% 2/16/65 -- 2,838
6 Month
The accompanying notes are an integral part of these financial statements.
24 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
INTEREST RATE SWAP AGREEMENTS (continued)
--------------------------------------------------------------------------------------------------------------------------
Annual Premiums Net Unrealized
Notional Pay/ Floating Fixed Expiration Paid Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Received) (Depreciation)
--------------------------------------------------------------------------------------------------------------------------
EUR 390,000 Deutsche Bank Pay EONIA 1 Day 0.765% 2/23/30 $ -- $ 2,934
Interbank
Rate
EUR 184,000 Deutsche Bank Pay EURIBOR 0.948% 3/3/19 -- 8,442
6 Month
EUR 372,500 Deutsche Bank Pay EURIBOR 1.004% 2/7/19 -- 13,539
6 Month
EUR 660,000 Deutsche Bank Pay EURIBOR 1.800% 12/15/54 -- 18,587
6 Month
EUR (900,000) Deutsche Bank Receive EURIBOR 0.450% 1/31/45 39,517 40,865
6 Month
EUR 630,000 Deutsche Bank Pay EURIBOR 1.900% 2/11/24 -- 81,269
6 Month
GBP (717,000) Deutsche Bank Receive LIBOR GBP 3.154% 9/23/24 -- (44,491)
6 Month
GBP (750,000) Deutsche Bank Receive LIBOR GBP 2.800% 11/14/24 -- (27,785)
6 Month
GBP (1,100,000) Deutsche Bank Receive LIBOR GBP 1.380% 2/5/19 -- 10,907
6 Month
GBP 260,000 Deutsche Bank Pay LIBOR GBP 2.893% 11/14/44 -- 19,117
6 Month
GBP (1,100,000) Deutsche Bank Receive LIBOR GBP 1.425% 2/8/19 -- 8,822
6 Month
GBP 376,000 Deutsche Bank Pay LIBOR GBP 3.130% 9/24/44 -- 40,568
6 Month
INR 33,700,000 Barclays Bank Plc Pay Mumbai 6.965% 2/12/17 -- (3,235)
Interbank
Offer Rate
INR (14,400,000) Barclays Bank Plc Receive Mumbai 6.560% 2/12/20 -- 4,237
Interbank
Offer Rate
INR 33,700,000 Goldman Sachs Pay Mumbai 6.825% 2/3/17 -- (4,791)
International Interbank
Offer Rate
INR (14,400,000) Goldman Sachs Receive Mumbai 6.430% 2/3/20 -- 5,563
International Interbank
Offer Rate
INR 40,600,000 Morgan Stanley Pay Mumbai 6.940% 2/26/17 -- (3,899)
Capital Services LLC Interbank
Offer Rate
INR 33,700,000 Morgan Stanley Pay Mumbai 6.930% 2/4/17 -- (3,717)
Capital Services LLC Interbank
Offer Rate
INR (14,400,000) Morgan Stanley Receive Mumbai 6.540% 2/4/20 -- 4,484
Capital Services LLC Interbank
Offer Rate
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 25
Schedule of Investments | 2/28/15 (unaudited) (continued)
INTEREST RATE SWAP AGREEMENTS (continued)
----------------------------------------------------------------------------------------------------------------------------
Annual Premiums Net Unrealized
Notional Pay/ Floating Fixed Expiration Paid Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Received) (Depreciation)
----------------------------------------------------------------------------------------------------------------------------
INR (17,300,000) Morgan Stanley Receive Mumbai 6.560% 2/26/20 $ -- $ 4,966
Capital Services LLC Interbank
Offer Rate
JPY 49,900,000 Deutsche Bank Receive LIBOR JPY 0.623% 10/10/24 -- (6,061)
6 Month
JPY (137,000,000) Deutsche Bank Receive LIBOR JPY 0.328% 2/4/22 -- (566)
6 Month
JPY 9,100,000 Deutsche Bank Pay LIBOR JPY 1.376% 2/12/45 -- (233)
6 Month
JPY (65,600,000) Deutsche Bank Receive LIBOR JPY 2.010% 2/17/45 -- 5
6 Month
JPY 9,100,000 Deutsche Bank Pay LIBOR JPY 1.395% 2/6/45 -- 157
6 Month
JPY 6,000,000 Deutsche Bank Pay LIBOR JPY 1.385% 3/2/45 -- 169
6 Month
JPY 10,000,000 Deutsche Bank Pay LIBOR JPY 1.419% 2/19/45 -- 632
6 Month
JPY (65,600,000) Deutsche Bank Receive LIBOR JPY 1.993% 2/17/45 -- 665
6 Month
JPY 54,700,000 Deutsche Bank Pay LIBOR JPY 1.906% 2/17/35 -- 1,207
6 Month
JPY 54,700,000 Deutsche Bank Pay LIBOR JPY 1.920% 2/17/35 -- 1,436
6 Month
KRW 768,000,000 Goldman Sachs Pay South Korea 2.100% 2/3/25 -- (7,098)
International Overnight
Interbank Rate
NOK 2,830,000 Deutsche Bank Pay Norwegian 1.760% 10/21/17 -- 4,763
Interbank Offer
Rate 6 Month
NOK 2,826,000 Deutsche Bank Pay Norwegian 1.790% 10/23/17 -- 4,903
Interbank Offer
Rate 6 Month
NOK 3,000,000 Morgan Stanley Pay Norwegian 1.630% 11/12/17 -- 3,968
Capital Services LLC Interbank Offer
Rate 6 Month
NOK 2,826,000 Morgan Stanley Pay Norwegian 1.765% 10/28/17 -- 4,720
Capital Services LLC Interbank Offer
Rate 6 Month
NZD (1,350,000) Morgan Stanley Receive NZD Bank 4.020% 11/3/16 -- (4,345)
Capital Services LLC Bill 3 Month
NZD 702,000 Morgan Stanley Pay NZD Bank 4.050% 1/13/25 -- 3,377
Capital Services LLC Bill 3 Month
NZD 711,000 Morgan Stanley Pay NZD Bank 3.760% 2/7/25 -- (2,307)
Capital Services LLC Bill 3 Month
The accompanying notes are an integral part of these financial statements.
26 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
INTEREST RATE SWAP AGREEMENTS (continued)
--------------------------------------------------------------------------------------------------------------------------
Annual Premiums Net Unrealized
Notional Pay/ Floating Fixed Expiration Paid Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Received) (Depreciation)
--------------------------------------------------------------------------------------------------------------------------
NZD 702,000 Morgan Stanley Pay NZD Bank 3.850% 1/13/25 $ -- $ (637)
Capital Services LLC Bill 3 Month
SEK 2,900,000 Barclays Bank Plc Pay LIBOR SEK 0.100% 2/12/17 -- (287)
3 Month
SEK 2,610,000 Barclays Bank Plc Pay LIBOR SEK 0.403% 10/24/16 -- 1,879
3 Month
SEK 3,310,000 Barclays Bank Plc Pay LIBOR SEK 0.390% 10/28/16 -- 2,318
3 Month
SEK 4,750,000 Barclays Bank Plc Pay LIBOR SEK 0.615% 8/26/16 -- 6,658
3 Month
SEK 5,040,000 Barclays Bank Plc Pay LIBOR SEK 0.550% 9/18/16 -- 5,602
3 Month
SEK 4,800,000 Barclays Bank Plc Pay LIBOR SEK 0.628% 8/20/16 -- 6,949
3 Month
SEK 4,800,000 Morgan Stanley Pay LIBOR SEK 0.628% 8/13/16 -- 6,815
Capital Services LLC 3 Month
SEK 4,800,000 Morgan Stanley Pay LIBOR SEK 0.630% 8/14/16 -- 6,932
Capital Services LLC 3 Month
(410,000) Deutsche Bank Receive LIBOR USD 0.640% 10/28/16 -- (175)
3 Month
(1,690,000) Deutsche Bank Receive LIBOR USD 3.044% 11/28/22 -- (31,404)
3 Month
3,150,000 Deutsche Bank Pay LIBOR USD 1.810% 1/23/19 -- (14,126)
3 Month
1,800,000 Deutsche Bank Pay LIBOR USD 1.593% 2/10/19 -- (11,794)
3 Month
(200,000) Deutsche Bank Receive LIBOR USD 2.870% 6/27/26 -- (7,832)
3 Month
(1,015,000) Morgan Stanley Receive LIBOR USD 1.599% 2/7/19 -- (6,632)
Capital Services 3 Month
LLC
(100,000) Deutsche Bank Receive LIBOR USD 3.130% 6/27/16 -- (6,240)
3 Month
(508,000) Credit Suisse Receive LIBOR USD 1.576% 3/3/19 -- (5,938)
International 3 Month
(350,000) Deutsche Bank Receive LIBOR USD 1.753% 12/5/19 -- (3,663)
3 Month
(1,400,000) Deutsche Bank Receive LIBOR USD 1.930% 9/15/20 -- (3,234)
3 Month
(2,860,000) Deutsche Bank Receive LIBOR USD 0.893% 12/31/16 -- (2,854)
3 Month
(630,000) Deutsche Bank Receive LIBOR USD 0.775% 9/18/16 -- (2,848)
3 Month
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 27
Schedule of Investments | 2/28/15 (unaudited) (continued)
INTEREST RATE SWAP AGREEMENTS (continued)
--------------------------------------------------------------------------------------------------------------------
Annual Premiums Net Unrealized
Notional Pay/ Floating Fixed Expiration Paid Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Received) (Depreciation)
--------------------------------------------------------------------------------------------------------------------
(500,000) Deutsche Bank Receive LIBOR USD 1.717% 2/26/20 $ -- $ (1,896)
3 Month
(340,000) Deutsche Bank Receive LIBOR USD 1.521% 11/12/17 -- (848)
3 Month
(371,500) Deutsche Bank Receive LIBOR USD 1.427% 10/28/17 -- (459)
3 Month
(625,000) Deutsche Bank Pay LIBOR USD 0.679% 8/13/16 -- (443)
3 Month
(619,000) Deutsche Bank Receive LIBOR USD 0.700% 8/26/16 -- (382)
3 Month
(625,000) Deutsche Bank Receive LIBOR USD 0.673% 8/14/16 -- (362)
3 Month
(372,000) Deutsche Bank Receive LIBOR USD 1.377% 10/21/17 -- (195)
3 Month
(371,500) Deutsche Bank Receive LIBOR USD 1.370% 10/23/17 -- (123)
3 Month
(176,000) Deutsche Bank Receive LIBOR USD 0.635% 10/24/16 -- (81)
3 Month
(625,000) Deutsche Bank Receive LIBOR USD 0.648% 8/20/16 -- 25
3 Month
180,000 Deutsche Bank Pay LIBOR USD 1.700% 2/25/18 -- 387
3 Month
(887,500) Deutsche Bank Receive LIBOR USD 1.493% 1/27/20 -- 4,711
3 Month
(1,630,000) Deutsche Bank Receive LIBOR USD 2.348% 1/23/23 -- 11,404
3 Month
3,130,000 Deutsche Bank Pay LIBOR USD 2.252% 11/28/18 -- 16,144
3 Month
(2,220,000) Deutsche Bank Receive LIBOR USD 1.445% 6/6/20 -- 18,436
3 Month
1,380,000 Deutsche Bank Pay LIBOR USD 3.985% 7/9/23 -- 89,081
3 Month
--------------------------------------------------------------------------------------------------------------------
$ 79,034 $ (180,352)
====================================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
AUD Australian Dollar
CNY New Chinese Yuan
EUR Euro
GBP British Pound Sterling
HKD Hong Kong Dollar
INR Indian Rupee
JPY Japanese Yen
KRW South Korean Won
NOK Norwegian Krone
NZD New Zealand Dollar
SEK Swedish Krone
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. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 29
Schedule of Investments | 2/28/15 (unaudited) (continued)
The following is a summary of the inputs used as of February 28, 2015, in
valuing the Fund's assets:
------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------------
U.S. Government and Agency
Obligations $ -- $12,844,079 $ -- $12,844,079
Foreign Government Bonds -- 5,202,710 -- 5,202,710
Purchased Put Options -- 34,337 -- 34,337
Purchased Call Options -- 70,122 -- 70,122
Purchased Swaptions -- 132,267 -- 132,267
Interest Rate Swaptions -- 117,978 -- 117,978
------------------------------------------------------------------------------------------------
Total $ -- $18,401,493 $ -- $18,401,493
================================================================================================
Other Financial Instruments
Net unrealized depreciation on
futures contracts $(133,732) $ -- $ -- $ (133,732)
Net unrealized appreciation on
forward foreign currency contracts -- 250,192 -- 250,192
Net unrealized depreciation on
forward foreign currency contracts -- (84,522) -- (84,522)
Net unrealized appreciation on
Credit Default swap contracts -- 13,915 -- 13,915
Net unrealized appreciation on
inflation swaps -- 31,220 -- 31,220
Net unrealized appreciation on
interest rate swaps -- (180,352) -- (180,352)
Net unrealized appreciation on
written interest rate swaption -- 32,208 -- 32,208
------------------------------------------------------------------------------------------------
Total Other Financial Instruments $(133,732) $ 62,661 $ -- $ (71,071)
================================================================================================
During the six months ended February 28, 2015, there were no transters between
Levels 1, 2 and 3.
The following is a summary of the fair valuation of certain Portfolio's assets
and liabilities as of February 28, 2015.
------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------------
Assets:
Foreign currencies, at value $ -- 116,225 -- 116,225
Futures collateral 305,499 -- -- 305,499
Swap collateral -- 557,997 -- 557,997
Variation margin for swap
contracts -- 10,592 -- 10,592
Liabilities:
Variation margin for futures
contracts 14,325 -- -- 14,325
------------------------------------------------------------------------------------------------
Total: $319,824 $684,814 $ -- $1,004,638
================================================================================================
The accompanying notes are an integral part of these financial statements.
30 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
Statement of Assets and Liabilities | 2/28/15 (unaudited)
ASSETS:
Investment in securities, at value (cost $18,493,309) $18,401,493
Cash 520,163
Foreign currencies (cost $122,485) 116,225
Futures collateral 305,499
Swap collateral 557,997
Receivables --
Investment securities sold 1,066,936
Interest 49,106
Swap contracts receivable 31,630
Futures receivable 16,475
Due from Pioneer Investment Management, Inc. 31,295
Variation margin for futures contracts 25,902
Variation margin for swap contracts 97,816
Net unrealized appreciation on forward foreign currency contracts 250,192
Other assets 53,903
----------------------------------------------------------------------------------------
Total assets $21,524,632
========================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 1,068,985
Trustee fees 937
Swap contracts, premiums received 44,287
Written options and written swaptions (premiums received $119,986) 87,778
Net unrealized depreciation on forward foreign currency contracts 84,522
Net unrealized depreciation on swap contracts 135,217
Net unrealized depreciation on futures contracts 133,732
Due to affiliates 11,007
Accrued expenses 83,546
----------------------------------------------------------------------------------------
Total liabilities $ 1,650,011
========================================================================================
NET ASSETS:
Paid-in capital $20,518,041
Accumulated net investment loss (354,900)
Accumulated net realized loss on investments, futures contracts,
swap contracts, written options and foreign currency transactions (165,113)
Net unrealized depreciation on investments (91,816)
Net unrealized depreciation on futures contracts (133,732)
Net unrealized depreciation on swap contracts (135,217)
Net unrealized appreciation on written options and written swaptions 32,208
Net unrealized appreciation on forward foreign currency contracts
and other assets and liabilities denominated in foreign currencies 205,150
----------------------------------------------------------------------------------------
Total net assets $19,874,621
========================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $6,496,843/671,363 shares) $ 9.68
Class C (based on $6,908,751/714,655 shares) $ 9.67
Class K (based on $10,039/1,037 shares) $ 9.68
Class Y (based on $6,458,988/667,256 shares) $ 9.68
MAXIMUM OFFERING PRICE:
Class A ($9.68 (divided by) 95.5%) $ 10.14
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 31
Statement of Operations (unaudited)
For the six months ended 2/28/15
INVESTMENT INCOME:
Interest $ 30,538
--------------------------------------------------------------------------------------------
Total investment income $ 30,538
--------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 59,159
Distribution fees
Class A 8,115
Class C 33,780
Transfer agent fees
Class A 146
Class C 133
Class Y 127
Shareholder communication expense 584
Administrative reimbursements 10,355
Custodian fees 38,812
Registration fees 33,894
Professional fees 38,536
Printing expense 12,287
Fees and expenses of nonaffiliated Trustees 2,790
Pricing fees 37,252
Miscellaneous 11,212
--------------------------------------------------------------------------------------------
Total expenses $ 287,182
Less fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (170,029)
--------------------------------------------------------------------------------------------
Net expenses $ 117,153
--------------------------------------------------------------------------------------------
Net investment loss $ (86,615)
--------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP CONTRACTS, WRITTEN OPTIONS, WRITTEN SWAPTIONS,
FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments $(135,456)
Swap contracts (294,470)
Futures contracts (292,537)
Written options and written swaptions 96,698
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 895,275 $ 269,510
--------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $(222,419)
Swap contracts (109,884)
Futures contracts 17,311
Written options and written swaptions (63,270)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (64,792) $(443,054)
--------------------------------------------------------------------------------------------
Net loss on investments, swap contracts, written options,
written swaptions, futures contracts and foreign
currency transactions $(173,544)
--------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(260,159)
============================================================================================
The accompanying notes are an integral part of these financial statements.
32 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------------
Six Months
Ended
2/28/15 1/30/14 (a)
(unaudited) to 8/31/14
----------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment loss $ (86,615) $ (51,724)
Net realized gain (loss) on investments, swap contracts,
futures contracts, written options, written swaptions and
foreign currency transactions 269,510 (524,241)
Change in net unrealized appreciation (depreciation) on
investments, swap contracts, futures contracts, written
options, written swaptions and foreign currency transactions (443,054) 319,647
----------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (260,159) $ (256,318)
----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.09 and $0.00 per share, respectively) $ (58,842) $ --
Class C ($0.02 and $0.00 per share, respectively) (13,546) --
Class K* ($0.00 and $0.00 per share, respectively) -- --
Class Y ($0.11 and $0.00 per share, respectively) (75,000) --
----------------------------------------------------------------------------------------------
Total distributions to shareowners $ (147,388) $ --
----------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:(b)
Net proceeds from sale of shares $ 560,682 $20,044,447
Reinvestment of distributions 1,055 --
Cost of shares repurchased (66,237) (1,461)
----------------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund
share transactions $ 495,500 $20,042,986
----------------------------------------------------------------------------------------------
Net increase in net assets $ 87,953 $19,786,668
NET ASSETS:
Beginning of period 19,786,668 --
----------------------------------------------------------------------------------------------
End of period $19,874,621 $19,786,668
----------------------------------------------------------------------------------------------
Accumulated net investment loss $ (354,900) $ (120,897)
==============================================================================================
(a) Class A, Class C and Class Y shares commenced operations on January 30,
2014.
(b) At February 28, 2015 PIM owned 99.4% of the value of the outstanding shares
of Pioneer Absolute Return Bond Fund.
* Class K shares commenced operations on December 31, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 33
Statements of Changes in Net Assets (continued)
-------------------------------------------------------------------------------------------
'15 Shares '15 Amount
(unaudited) (unaudited) '14 Shares '14 Amount
-------------------------------------------------------------------------------------------
Class A*
Shares sold 2,736 $ 33,089 668,740 $6,687,114
Reinvestment of distributions 39 375 -- --
Less shares repurchased (5) (46) (147) (1,461)
-------------------------------------------------------------------------------------------
Net increase 2,770 $ 33,418 668,593 $6,685,653
===========================================================================================
Class C*
Shares sold 52,239 $511,893 666,667 $6,666,667
Reinvestment of distributions 70 680 -- --
Less shares repurchased (4,321) (42,070) -- --
-------------------------------------------------------------------------------------------
Net increase 47,988 $470,503 666,667 $6,666,667
===========================================================================================
Class K**
Shares sold 1,037 $ 10,000 -- $ --
Reinvestment of distributions -- -- -- --
Less shares repurchased -- -- -- --
-------------------------------------------------------------------------------------------
Net increase 1,037 $ 10,000 -- $ --
===========================================================================================
Class Y*
Shares sold 589 $ 5,700 669,096 $6,690,666
Reinvestment of distributions -- -- -- --
Less shares repurchased (2,429) (24,121) -- --
-------------------------------------------------------------------------------------------
Net increase (decrease) (1,840) $(18,421) 669,096 $6,690,666
===========================================================================================
* Class A, Class C and Class Y shares commenced operations on January 30,
2014.
** Class K shares commenced operations on December 31, 2014.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
Financial Highlights
---------------------------------------------------------------------------------------------
Six Months
Ended
2/28/15 1/30/14
(unaudited) to 8/31/14
---------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.88 $ 10.00
---------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.03) $ (0.02)
Net realized and unrealized gain (loss) on investments (0.08) (0.10)
---------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.11) $ (0.12)
---------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.09) $ --
---------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.20) $ (0.12)
---------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.68 $ 9.88
=============================================================================================
Total return* (1.13)% (1.20)%***
Ratio of net expenses to average net assets 1.02%** 1.01%**
Ratio of net investment income (loss) to average net assets (0.71)%** (0.29)%**
Portfolio turnover rate 108%** 62%**
Net assets, end of period (in thousands) $ 6,497 $ 6,606
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 2.74%** 2.61%**
Net investment income (loss) to average net assets (2.43)%** (1.89)%**
=============================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 35
Financial Highlights (continued)
---------------------------------------------------------------------------------------
Six Months
Ended
2/28/15 1/30/14
(unaudited) to 8/31/14
---------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.84 $ 10.00
---------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.06) $ (0.06)
Net realized and unrealized gain (loss) on investments (0.09) (0.10)
---------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.15) $ (0.16)
---------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.02) $ --
---------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.17) $ (0.16)
---------------------------------------------------------------------------------------
Net asset value, end of period $ 9.67 $ 9.84
=======================================================================================
Total return* (1.53)% (1.60)%***
Ratio of net expenses to average net assets 1.77%** 1.75%**
Ratio of net investment income (loss) to average net assets (1.45)%** (1.03)%**
Portfolio turnover rate 108%** 62%**
Net assets, end of period (in thousands) $ 6,909 $ 6,559
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 3.50%** 3.35%**
Net investment income (loss) to average net assets (3.18)%** (2.63)%**
=======================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
36 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------
12/31/14
to 2/28/15
(unaudited)
--------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 9.64
--------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.07)
Net realized and unrealized gain (loss) on investments 0.11
--------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.04
--------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ --
--------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.04
--------------------------------------------------------------------------------
Net asset value, end of period $ 9.68
================================================================================
Total return* 0.41%***
Ratio of net expenses to average net assets 0.75%**
Ratio of net investment income (loss) to average net assets (4.51)%**
Portfolio turnover rate 108%**
Net assets, end of period (in thousands) $ 10
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 3.04%**
Net investment income (loss) to average net assets (6.80)%**
================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 37
Financial Highlights (continued)
----------------------------------------------------------------------------------------
Six Months
Ended
2/28/15 1/30/14
(unaudited) to 8/31/14
----------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.90 $ 10.00
----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.02) $ (0.00)(a)
Net realized and unrealized gain (loss) on investments (0.09) (0.10)
----------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.11) $ (0.10)
----------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.11) $ --
----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.22) $ (0.10)
----------------------------------------------------------------------------------------
Net asset value, end of period $ 9.68 $ 9.90
========================================================================================
Total return* (1.08)% (1.00)%***
Ratio of net expenses to average net assets 0.75%** 0.75%**
Ratio of net investment income (loss) to average net assets (0.44)%** (0.03)%**
Portfolio turnover rate 108%** 62%**
Net assets, end of period (in thousands) $ 6,459 $ 6,621
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 2.48%** 2.36%**
Net investment income (loss) to average net assets (2.17)%** (1.64)%**
========================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
*** Not Annualized.
(a) Amount rounds to less than $0.01 or $(0.01) per share.
The accompanying notes are an integral part of these financial statements.
38 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
Notes to Financial Statements | 2/28/15 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Absolute Return Bond Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The Fund's investment objective is to seek total
return.
The Fund offers four classes of shares designated as Class A, Class C, Class K
and Class Y shares. Class A, Class C and Class Y shares commenced operations
offered on January 30, 2014. Class K shares commenced operations on December 31,
2014. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class K or Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 39
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. Shares of money market mutual funds are valued at such funds'
net asset value. Cash may include overnight time deposits at approved
financial institutions.
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 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 advisor, pursuant to
procedures adapted 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
40 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
exchange or market on which the security trades and prior to the
determination of the Fund's net asset value. Examples of a significant event
might include political or economic news, corporate restructurings, natural
disasters, terrorist activity or trading halts. Thus, the valuation of the
Fund's securities may differ significantly from exchange prices and such
differences could be material.
At February 28, 2015, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services).
B. Investment Income and Transactions
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income is recorded on the
accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in the market price of those securities but are included
with the net realized and unrealized gain or loss on investments.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 41
D. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
February 28, 2015 was $305,499. 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 six months ended February 28, 2015 was
$6,938,692.
At February 28, 2015, open futures contracts were as follows:
------------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation/
Type Long/(Short) Month Value (Depreciation)
------------------------------------------------------------------------------------
F/C U.S. 10 yr Note 4 6/15 $ 511,187 $ 2,503
F/C Australia 10 yr
Bond Future 10 3/15 1,028,282 29,666
F/C Australia 3 yr
Bond Future (31) 3/15 (2,719,737) (9,653)
F/C Short Euro
BTP Future 8 3/15 1,005,444 6,037
F/C Euro Bund Future (3) 3/15 (535,283) (2,958)
F/C Euro BTP Future (18) 3/15 (2,837,680) (117,823)
F/C Euro OAT Future (3) 3/15 (504,400) (17,405)
F/C Euro OAT Future (9) 6/15 (1,557,310) (14,703)
F/C 90 Day
Sterling Future (7) 9/16 (1,333,545) (9,725)
F/C U.S. 2 yr
Note (CBT) (8) 6/15 (1,748,625) (1,750)
F/C U.S. 5 yr
Note (CBT) 7 6/15 834,969 2,079
------------------------------------------------------------------------------------
$(7,856,698) $(133,732)
====================================================================================
42 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
E. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation is
recorded in the Fund's financial statements. The Fund records realized gains
and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
F. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
August 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 remain subject to examination by
federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. There were no distributions paid for
the year ended August 31, 2014.
The following shows the components of distributable earnings (losses) on a
federal income tax basis at August 31, 2014:
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 83,945
Capital loss carryforward (574,241)
Unrealized appreciation 254,423
----------------------------------------------------------------------------
Total $(235,873)
============================================================================
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 43
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax adjustments relating to credit default swaps and
the mark to market of futures contracts and credit default swaps.
G. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $20 in underwriting commissions on the sale of Class A shares during
the six months ended February 28, 2015.
H. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class K or 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).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, Class K and Class Y shares
can reflect different transfer agent and distribution expense rates.
I. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
J. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price upon
the exercise of the option. When the Fund writes an option, an amount equal
to
44 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
the premium received by the Fund is recorded as a liability and is
subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the
underlying security in determining whether the Fund has realized a gain or
loss. The Fund as writer of an option bears the market risk of an
unfavorable change in the price of the security underlying the written
option.
The average value of written option contracts open during the six months
ended February 28, 2015 was $4,283. There were no written options
outstanding at February 28, 2015.
Transactions in written options for the six months ended February 28, 2015
are summarized as follows:
----------------------------------------------------------------------------
Number of Premium
Contracts Paid
----------------------------------------------------------------------------
Options open at beginning of period (980,000) $(11,362)
Options opened (760,000) (17,487)
Options exercised 200,000 7,360
Options closed -- --
Options expired 1,540,000 21,489
----------------------------------------------------------------------------
Options open at end of period -- $ --
============================================================================
K. Purchased Options
The Fund may purchase put and call options to seek increase total return.
Purchased call and put options entitle the Fund to buy and sell a specified
number of shares or units of a particular security, currency or index at a
specified price at a specific date or within a specific period of time. Upon
the purchase of a call or put option, the premium paid by the Fund is
included in the Statement of Assets and Liabilities as an investment. All
premiums are marked-to-market daily, and any unrealized gains or losses are
recorded in the Fund's financial statements. As the purchaser of an index
option, the Fund has the right to receive a cash payment equal to any
depreciation in the value of the index below the strike price of the option
(in the case of a put) or equal to any appreciation in the value of the
index over the strike price of the option (in the case of a call) as of the
valuation date of the option. Premiums paid for purchased calls and put
options which have expired are treated as realized losses on investments in
the Statement of Operations. Upon the exercise or closing of a purchased put
option, the premium is offset against the proceeds on the sale of the
underlying security or financial instrument in
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 45
order to determine the realized gain or loss on investments. Upon the
exercise or closing of a purchased call option, the premium is added to the
cost of the security or financial instrument. The risk associated with
purchasing options is limited to the premium originally paid. The average
value of purchased options open during the six months ended February 28,
2015 was $103,394. Purchased option contracts outstanding at period end are
listed at the end of the Fund's schedule of investments.
L. Written Interest Rate Swaptions
The Fund may enter into interest rate swaptions to seek to manage exposure
to fluctuations in interest rates or to seek to enhance yield. A swaption
grants the right but not the obligation to enter into the underlying swap at
a future specified date.
When the Fund writes a swaption, the Fund receives a premium and becomes
obligated to enter into a swap contract according to the terms of the
underlying agreement. The premium received by the Fund is recorded as a
liability and is subsequently adjusted to the current value of the written
swaption. Premiums received from writing swaptions that expire unexercised
are treated by the Fund on the expiration date as realized gains. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a written swaption is
exercised, the cost basis of the swap is adjusted by the amount of premium
received. The Fund as writer of a swaption bears the market risk of an
unfavorable change in the price of the security underlying the written
swaption.
Open interest rate swaption contracts at February 28, 2015 are listed in the
Schedule of Investments. The average value of written swaption contracts
open during the six months ended February 28, 2015 was $62,882.
The Fund held two interest rate swaptions that were open at February 28,
2015. If the swaptions were exercised at February 28, 2015, the maximum
amount the Fund would have been required to pay was $119,985.
Transactions in interest rate swaptions for the six months ended February
28, 2015 are summarized as follows:
----------------------------------------------------------------------------
Number of Premium
Contracts Paid
----------------------------------------------------------------------------
Options open at beginning of period (7,600,000) $(200,002)
Options opened (7,900,000) (152,732)
Options exercised 9,800,000 232,748
Options closed -- --
Options expired -- --
----------------------------------------------------------------------------
Options open at end of period (5,700,000) $(119,986)
============================================================================
46 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
M. Purchased Interest Rate Swaptions
The Fund may purchase put and call swaptions in order to attempt to hedge
against changes in the value of portfolio securities or to seek to increase
total return. Purchased call and put swaptions entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time. Upon the purchase of a call or put swaption, the
premium paid by the Fund is included in the Statement of Assets and
Liabilities as an investment. All premiums are marked-to-market daily, and
any unrealized gains or losses are recorded in the Fund's financial
statements. As the purchaser of an index swaption, the Fund has the right to
receive a cash payment equal to any depreciation in the value of the index
below the strike price of the swaption (in the case of a put) or equal to
any appreciation in the value of the index over the strike price of the
swaption (in the case of a call) as of the valuation date of the swaption.
Premiums paid for purchased calls and put swaptions which have expired are
treated as realized losses on investments in the Statement of Operations.
Upon the exercise or closing of a purchased put swaption, the premium is
offset against the proceeds on the sale of the underlying security or
financial instrument in order to determine the realized gain or loss on
investments. Upon the exercise or closing of a purchased call swaption, the
premium is added to the cost of the security or financial instrument. The
risk associated with purchasing swaptions is limited to the premium
originally paid. The average value of contracts open during the six months
ended February 28, 2015 was $228,075. Purchased swaptions open at period end
are listed at the end of the Fund's Schedule of Investments.
N. 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 Fund securities. A credit default
swap index is used to hedge risk or take a position on a basket of credit
entities or indices. As a seller of protection, the Fund would be required
to pay the notional (or other agreed-upon) value of the referenced debt
obligation to the counterparty in the event of a default by a U.S. or
foreign corporate issuer of a debt obligation, which would likely result in
a loss to the Fund. In return, the Fund would receive from the counterparty
a periodic stream of payments during the term of the contract provided that
no event of default occurred. The maximum exposure of loss to the seller
would be the notional value of the credit default swaps outstanding. If no
default occurs, the Fund would keep the stream of payments and would have no
payment obligation. The
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 47
Fund may also buy credit default swap contracts in order to hedge against
the risk of default of debt securities, in which case the Fund would
function as the counterparty referenced above.
When the Fund enters into a credit default swap contract, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the rights to receive a contingent payment. An upfront payment
made by the Fund, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Payments received or made as a result of a credit event or upon
termination of the contract are recognized, net of the appropriate amount of
the upfront payment, as realized gains or losses in the Statement of
Operations.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by the
Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as variation margin on
centrally cleared swaps on the Statement of Assets and Liabilities.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Open credit default swap contracts at February 28, 2015 are listed in the
Schedule of Investments. The average value of credit default swap contracts
open during the six months ended February 28, 2015 was $13,400.
O. 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
48 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
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.
There were no open cross currency swap contracts at February 28, 2015. The
average value of cross currency swap contracts open during the six months
ended February 28, 2015 was $89,453.
P. Inflation Rate Swap Contracts
The Fund may enter into inflation rate swap contracts to attempt to hedge
against inflation. Pursuant to the inflation rate swap agreement, the Fund
negotiates with a counterparty to exchange a periodic stream of payments,
based on a benchmark inflation index. One cash flow stream will typically be
a floating rate payment linked to the specified inflation index while the
other is typically a fixed interest rate.
Inflation rate swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Inflation rate swaps are normally issued on a zero coupon basis
where all payments compound during the life of the contract and are netted
upon the termination or maturity of the contract. Final payments received or
paid by the Fund are recorded as realized gains or losses in the Statement
of Operations. Inflation rate swap contracts are subject to movements in
interest rates.
Open inflation rated swap contracts at February 28, 2015 are listed in the
Schedule of Investments. The average value of inflation rate swap contracts
open during the six months ended February 28, 2015 was $7,870.
Q. Interest Rate Swap Contracts
The Fund may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance its income. Pursuant to the
interest rate swap agreement, the Fund negotiates with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 49
rate. Payment flows are usually netted against each other, with the
difference being paid by one party to the other on a monthly basis.
Periodic payments received or paid by the Fund are recorded as realized
gains or losses in the Statement of Operations. Interest rate swap contracts
are marked-to-market daily using valuations supplied by independent sources
and the change in value, if any, is recorded as unrealized appreciation or
depreciation in the Statement of Assets and Liabilities. Interest rate swap
contracts are subject to counterparty risk and movements in interest rates.
Open interest rate swap contracts at February 28, 2015 are listed in the
Schedule of Investments. The average value of interest swap swap contracts
open during the six months ended February 28, 2015 was $44,647.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at an annual rate of 0.60% of
the average daily net assets of the Fund.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.15%, 1.90%, 0.75% and 0.75% of the average
daily net assets attributable to Class A, Class C, Class K and Class Y shares,
respectively. These expense limitations are in effect through January 1, 2016.
Fees waived and expenses reimbursed during the six months ended February 28,
2015 are reflected on the Statement of Operations. Fees and expenses of other
investment companies in which the Fund may invest are not included in the
expense limitations noted above. There can be no assurance that PIM will extend
the expense limitation agreement for a class of shares beyond the date referred
to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$10,144 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 28, 2015.
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.
50 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
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 six months ended February 28, 2015, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 398
Class C 300
Class Y (114)
--------------------------------------------------------------------------------
Total $ 584
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $163 in transfer agent fees and out-of-pocket reimbursements
payable from PIMSS at February 28, 2015.
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 $700 in distribution fees payable to PFD
at February 28, 2015.
In addition, redemptions of each class of shares (except Class K or Class Y
shares) may be subject to a contingent deferred sales charge (CDSC). A CDSC of
1.00% may be imposed on redemptions of certain net asset value purchases of
Class A shares within 12 months of purchase. Redemptions of Class C shares
within 12 months of purchase are subject to a CDSC of 1.00%, based on the lower
of cost or market value of shares being redeemed. Shares purchased as part of an
exchange remain subject to any CDSC that applied to the original purchase of
those shares. There is no CDSC for Class K or Class Y shares. Proceeds from the
CDSCs are paid to PFD. For the six months ended February 28, 2015, no CDSCs were
paid to PFD.
5. Forward Foreign Currency Contracts
At February 28, 2015, 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
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 51
settlement date of a forward foreign currency contract, the Fund may close out
such contract by entering into an offsetting contract. The average value of
forward foreign currency contracts open during the six months ended February 28,
2015 was $4,387,617.
Open forward foreign currency contracts at February 28, 2015 were as follows:
--------------------------------------------------------------------------------------------------------------
Quantity/
Shares US $ Value
Currency Purchased/ Book Settlement at Net Unrealized
Description Counterparty (Sold) Value Date 2/28/15 Appreciation
--------------------------------------------------------------------------------------------------------------
INR (Indian Barclays Plc 7,650,000 $ (120,000) 7/7/15 $ 120,630 $ 630
Rupee)
INR (Indian Barclays Plc 5,780,250 (90,000) 3/23/15 93,279 3,279
Rupee)
GBP (British Credit Suisse (90,000) 139,014 4/17/15 (138,869) 145
Pound Sterling)
INR (Indian Credit Suisse 7,780,800 (120,000) 9/22/15 120,775 775
Rupee)
EUR (European Credit Suisse (110,000) 124,214 4/17/15 (123,154) 1,060
Euro)
NZD (New Credit Suisse 160,000 (119,002) 4/17/15 120,429 1,427
Zealand Dollar)
JPY (Japanese Credit Suisse (16,050,654) 136,494 4/17/15 (134,178) 2,316
Yen)
GBP (British Credit Suisse 90,000 (136,494) 4/17/15 138,869 2,375
Pound Sterling)
GBP (British Credit Suisse 80,000 (120,700) 4/17/15 123,439 2,739
Pound Sterling)
GBP (British Credit Suisse 90,000 (135,722) 4/17/15 138,869 3,147
Pound Sterling)
TRY (Turkish Lira) Credit Suisse (195,129) 80,000 4/17/15 (76,844) 3,156
TRY (Turkish Lira) Credit Suisse (192,716) 80,000 4/17/15 (75,893) 4,107
TRY (Turkish Lira) Credit Suisse (191,942) 80,000 4/17/15 (75,589) 4,411
EUR (European Credit Suisse (150,000) 172,609 4/17/15 (167,937) 4,672
Euro)
EUR (European Credit Suisse (1,350,000) 1,525,406 4/17/15 (1,511,435) 13,971
Euro)
EUR (European Credit Suisse (440,000) 510,957 4/17/15 (492,616) 18,341
Euro)
INR (Indian Goldman Sachs (8,136,700) 130,000 5/5/15 (129,976) 24
Rupee) & Co.
KRW (South Goldman Sachs 176,800,000 (160,000) 3/30/15 160,482 482
Korean Won) & Co.
KRW (South Goldman Sachs (185,691,000) 170,000 4/22/15 (168,397) 1,603
Korean Won) & Co.
KRW (South Goldman Sachs (168,320,000) 160,000 3/30/15 (152,784) 7,216
Korean Won) & Co.
BRL (Brazilian Goldman Sachs (331,440) 120,000 7/9/15 (111,612) 8,388
Real) & Co.
EUR (European Morgan Stanley (30,000) 33,791 6/25/15 (33,621) 170
Euro) Co.
GBP (British Morgan Stanley 64,954 (100,000) 4/17/15 100,223 223
Pound Sterling) Co.
INR (Indian Morgan Stanley 6,356,000 (100,000) 7/7/15 100,226 226
Rupee) Co.
52 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------------------------------
Quantity/
Shares US $ Value
Currency Purchased/ Book Settlement at Net Unrealized
Description Counterparty (Sold) Value Date 2/28/15 Appreciation
--------------------------------------------------------------------------------------------------------------
NZD (New Morgan Stanley (80,000) $ 60,529 4/17/15 $ (60,215) $ 314
Zealand Dollar) Co.
NZD (New Morgan Stanley (80,000) 60,555 4/17/15 (60,215) 340
Zealand Dollar) Co.
EUR (European Morgan Stanley (59,000) 66,944 4/17/15 (66,055) 889
Euro) Co.
GBP (British Morgan Stanley 110,000 (168,801) 4/17/15 169,728 927
Pound Sterling) Co.
ZAR (South Morgan Stanley (1,044,804) 90,000 4/17/15 (88,828) 1,172
African Rand) Co.
NZD (New Morgan Stanley 163,935 (122,156) 4/17/15 123,391 1,235
Zealand Dollar) Co.
EUR (European Morgan Stanley (50,000) 57,249 4/17/15 (55,979) 1,270
Euro) Co.
NZD (New Morgan Stanley 213,620 (159,350) 4/17/15 160,788 1,438
Zealand Dollar) Co.
EUR (European Morgan Stanley (110,000) 125,041 4/17/15 (123,154) 1,887
Euro) Co.
JPY (Japanese Morgan Stanley (18,901,963) 160,000 4/17/15 (158,014) 1,986
Yen) Co.
MXN (Mexican Morgan Stanley (1,767,486) 120,000 4/17/15 (117,966) 2,034
Peso) Co.
GBP (British Morgan Stanley 80,000 (121,320) 4/17/15 123,439 2,119
Pound Sterling) Co.
EUR (European Morgan Stanley (150,000) 170,459 4/17/15 (167,937) 2,522
Euro) Co.
CNY (New Morgan Stanley (2,507,400) 400,000 4/28/15 (397,326) 2,674
Chinese Yuan) Co.
NZD (New Morgan Stanley (157,221) 121,320 4/17/15 (118,337) 2,983
Zealand Dollar) Co.
AUD (Australian Morgan Stanley (200,000) 159,350 4/17/15 (155,808) 3,542
Dollar) Co.
EUR (European Morgan Stanley (100,000) 116,006 4/17/15 (111,958) 4,048
Euro) Co.
JPY (Japanese Morgan Stanley (109,401,432) 918,609 4/17/15 (914,557) 4,052
Yen) Co.
GBP (British Morgan Stanley 130,000 (196,365) 4/17/15 200,588 4,223
Pound Sterling) Co.
NZD (New Morgan Stanley (210,080) 158,580 4/17/15 (158,124) 456
Zealand Dollar) Co.
EUR (European Morgan Stanley (1,999,328) 2,363,609 4/17/15 (2,238,411) 125,198
Euro) Co.
--------------------------------------------------------------------------------------------------------------
Total $250,192
==============================================================================================================
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 53
--------------------------------------------------------------------------------------------------------------
Quantity/
Shares US $ Value
Currency Purchased/ Book Settlement at Net Unrealized
Description Counterparty (Sold) Value Date 2/28/15 Depreciation
--------------------------------------------------------------------------------------------------------------
INR (Indian Barclays Plc (6,427,000) $ 100,000 7/7/15 $ (101,345) $ (1,345)
Rupee)
INR (Indian Barclays Plc (7,788,000) 120,000 9/22/15 (120,887) (887)
Rupee)
INR (Indian Citibank (7,884,000) 120,000 7/7/15 (124,320) (4,320)
Rupee)
TRY (Turkish Lira) Credit Suisse 190,104 (80,000) 4/17/15 74,865 (5,135)
EUR (European Credit Suisse 100,000 (116,681) 4/17/15 111,958 (4,723)
Euro)
EUR (European Credit Suisse 150,000 (171,743) 4/17/15 167,937 (3,806)
Euro)
EUR (European Credit Suisse 110,000 (125,635) 4/17/15 123,154 (2,481)
Euro)
NZD (New Credit Suisse (220,000) 164,393 4/17/15 (165,590) (1,197)
Zealand Dollar)
MXN (Mexican Credit Suisse (1,213,887) 80,000 4/17/15 (81,018) (1,018)
Peso)
MXN (Mexican Credit Suisse 2,391,059 (160,000) 4/17/15 159,585 (415)
Peso)
MXN (Mexican Credit Suisse (1,202,658) 80,000 4/17/15 (80,268) (268)
Peso)
GBP (British Credit Suisse (80,000) 123,331 4/17/15 (123,439) (108)
Pound Sterling)
JPY (Japanese Credit Suisse (9,581,080) 80,000 4/17/15 (80,094) (94)
Yen)
JPY (Japanese Credit Suisse 9,569,408 (80,000) 4/17/15 79,997 (3)
Yen)
BRL (Brazilian Goldman Sachs 339,120 (120,000) 7/9/15 114,198 (5,802)
Real) & Co.
INR (Indian Goldman Sachs (5,589,900) 90,000 3/23/15 (90,207) (207)
Rupee) & Co.
INR (Indian Goldman Sachs 8,127,600 (130,000) 5/5/15 129,831 (169)
Rupee) & Co.
JPY (Japanese Morgan Stanley 52,450,000 (445,543) 4/17/15 438,463 (7,080)
Yen) Co.
TRY (Turkish Lira) Morgan Stanley 185,607 (80,000) 4/17/15 73,094 (6,906)
Co.
AUD (Australian Morgan Stanley 200,000 (162,480) 4/17/15 155,808 (6,672)
Dollar) Co.
EUR (European Morgan Stanley 30,000 (40,155) 6/25/15 33,621 (6,534)
Euro) Co.
TRY (Turkish Lira) Morgan Stanley 190,061 (80,000) 4/17/15 74,848 (5,152)
Co.
SGD (Singapore Morgan Stanley 268,170 (200,189) 4/17/15 196,504 (3,685)
Dollar) Co.
GBP (British Morgan Stanley (130,000) 197,733 4/17/15 (200,588) (2,855)
Pound Sterling) Co.
GBP (British Morgan Stanley (90,000) 136,099 4/17/15 (138,869) (2,770)
Pound Sterling) Co.
NZD (New Morgan Stanley (226,756) 168,801 4/17/15 (170,675) (1,874)
Zealand Dollar) Co.
54 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------------------------------
Quantity/
Shares US $ Value
Currency Purchased/ Book Settlement at Net Unrealized
Description Counterparty (Sold) Value Date 2/28/15 Depreciation
--------------------------------------------------------------------------------------------------------------
EUR (European Morgan Stanley 120,200 $(135,942) 4/17/15 $ 134,574 $ (1,368)
Euro) Co.
GBP (British Morgan Stanley (80,000) 122,156 4/17/15 (123,439) (1,283)
Pound Sterling) Co.
EUR (European Morgan Stanley 150,000 (169,209) 4/17/15 167,937 (1,272)
Euro) Co.
NZD (New Morgan Stanley (167,485) 124,824 4/17/15 (126,063) (1,239)
Zealand Dollar) Co.
GBP (British Morgan Stanley (50,100) 76,290 4/17/15 (77,303) (1,013)
Pound Sterling) Co.
NZD (New Morgan Stanley 220,000 (166,452) 4/17/15 165,590 (862)
Zealand Dollar) Co.
NZD (New Morgan Stanley (218,732) 163,958 4/17/15 (164,636) (678)
Zealand Dollar) Co.
JPY (Japanese Morgan Stanley 16,218,250 (136,099) 4/17/15 135,579 (520)
Yen) Co.
AUD (Australian Morgan Stanley 210,000 (163,958) 4/17/15 163,598 (360)
Dollar) Co.
MXN (Mexican Morgan Stanley 1,794,324 (120,000) 4/17/15 119,757 (243)
Peso) Co.
AUD (Australian Morgan Stanley 160,000 (124,824) 4/17/15 124,646 (178)
Dollar) Co.
--------------------------------------------------------------------------------------------------------------
Total $(84,522)
==============================================================================================================
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 six months ended February 28, 2015, 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 February 28, 2015.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 55
------------------------------------------------------------------------------------------------------
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 $250,192 $ -- $ 250,192 $ -- $ -- $250,192
Swap contracts 618,658 -- (618,658) -- -- --
Written options
and written
swaptions -- -- -- -- -- --
------------------------------------------------------------------------------------------------------
$868,850 $ -- $ (368,466) $ -- $ -- $250,192
======================================================================================================
------------------------------------------------------------------------------------------------------
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 $ 84,522 $ $ 84,522 $ -- $ -- $ 84,522
Swap contracts 753,875 (618,658) 135,217 -- (135,217) --
Written options
and written
swaptions 87,778 -- 87,778 -- -- 87,778
------------------------------------------------------------------------------------------------------
$926,175 $(618,658) $307,517 $ -- $(135,217) $ 172,300
======================================================================================================
* The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
56 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
8. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of February 28, 2015 were as follows:
-----------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives 2015 Liabilities Derivatives 2015
Hedging Instruments ----------------------------- -------------------------------
Under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
-----------------------------------------------------------------------------------------------
Forward foreign Net unrealized Net unrealized
currency contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $250,192 currency contracts $ 84,522
Swap contracts Net unrealized Net unrealized
appreciation on depreciation on
swap contracts -- swap contracts 135,217
Futures contracts Net unrealized Net unrealized
appreciation on depreciation on
futures contracts -- futures contracts 133,732
Written options and Written options Written options
written swaptions and swaptions -- and swaptions 87,778
-----------------------------------------------------------------------------------------------
Total $250,192 $441,249
===============================================================================================
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 57
The effect of derivative instruments on the Statement of Operations for the six
months ended February 28, 2015 was as follows:
-------------------------------------------------------------------------------------------
Change in
Derivatives Realized Unrealized
Not Accounted Gain or Appreciation or
for as Hedging (Loss) on (Depreciation)
Instruments Under Location of Gain or (Loss) Derivatives on Derivatives
Accounting Standards on Derivatives Recognized Recognized Recognized
Codification (ASC) 815 in Income in Income in Income
-------------------------------------------------------------------------------------------
Forward foreign Net realized gain (loss) on
currency contracts forward foreign currency contracts $ 655,337
Forward foreign Change in unrealized appreciation
currency contracts (depreciation) on forward foreign
currency contracts $ (39,508)
Futures contracts Net realized gain (loss) on
futures contracts $(292,537)
Futures contracts Change in net unrealized
appreciation (depreciation) on
futures contracts $ 17,311
Swap contracts Net realized gain (loss) on
swap contracts $(294,470)
Swap contracts Change in net unrealized
appreciation (depreciation) on
swap contracts $(109,884)
Written options Net realized gain (loss) on
and written written options $ 96,698
swaptions
Written options Change in net unrealized
and written appreciation (depreciation) on
swaptions written options $ (63,270)
58 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Absolute Return Bond Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in January 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
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 59
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
60 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
results of the Fund over various time periods, including the Fund's
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 second quintile relative to the management fees
paid by other funds in its Morningstar peer group for the comparable period. The
Trustees considered that the expense ratio of the Fund's Class A shares for the
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 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
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 61
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.
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
62 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
Group, which manages over $150 billion in assets (including the Funds). Pioneer
and the Funds receive reciprocal intangible benefits from the relationship,
including mutual brand recognition and, for the Funds, direct and indirect
access to the resources of a large global asset manager. The Trustees concluded
that any such benefits received by Pioneer as a result of its relationship with
the Funds were reasonable and their consideration of the advisory agreement
between the Fund and PIM and the fees thereunder were unaffected by Pioneer's
possible receipt of any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 63
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
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.
* Ms. Monchak is a non-voting Advisory Trustee.
64 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
This page for your notes.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 65
This page for your notes.
66 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
This page for your notes.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15 67
This page for your notes.
68 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/15
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) 2015 Pioneer Investments 27690-01-0415
Pioneer Global
Equity Fund
--------------------------------------------------------------------------------
Semiannual Report | February 28, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A GLOSX
Class C GCSLX
Class K PGEKX
Class Y PGSYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 24
Notes to Financial Statements 32
Approval of Investment Advisory Agreement 45
Trustees, Officers and Service Providers 50
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 1
President's Letter
Dear Shareowner,
Today's market environment presents numerous opportunities as well as challenges
for investors. A disparate global economic landscape has formed, with the U.S.
facing prospects for continued growth, while questions abound regarding the
outlook for other regions. Employment, household income, and corporate profits
have been rising in the U.S. and inflation pressures remain low. However, many
countries across Europe as well as Japan face muted growth. In addition, a
variety of factors have clouded the outlook for countries such as Russia and
Brazil and China's investment-driven economy continues to slow.
Monetary policies of major central banks are diverging, reflecting different
economic conditions. With the U.S. economy no longer in need of extraordinary
stimulus, the Federal Reserve Board may be closer to raising short-term interest
rates. Conversely, the European Central Bank and the Bank of Japan are likely to
be adding, not removing, stimulus.
While we anticipate continued growth for the U.S., the outlook is far from
certain, nor is the outlook for other regions necessarily dire. It remains to be
seen how weakness outside the U.S. will affect global growth and whether easing
monetary policies in other regions will spur an economic recovery.
While these economic conditions may lead to increasing volatility in 2015, we
believe the opportunity for investors to earn attractive returns will persist.
However, in an environment where interest rates remain low and equity valuations
have been buoyed by an extended bull market, we believe it is imperative
investors adhere to a disciplined investment approach that is consistent with
one's goals and objectives, being mindful of the tradeoff between risk and
return.
Since 1928 Pioneer's investment professionals have been focused on identifying
and capitalizing on investment opportunities that present themselves in a
variety of ever changing market conditions, including those we face today. We
seek returns consistent with our strategies' stated style and
2 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
objectives and consistent with our shareholders' expectations, regardless of
market conditions. We believe our shareowners benefit from the experience
and tenure of our investment teams, the insights generated from extensive
research resources and a commitment to prudent risk management that seeks
to mitigate downside and preserve returns over time.
We encourage you to work with your financial advisor to develop an overall
investment plan that addresses both your short- and long-term goals, and to
implement such a plan in a disciplined manner, as we do when deploying
strategies on behalf of our shareowners.
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 Equity Fund | Semiannual Report | 2/28/15 3
Portfolio Management Discussion | 2/28/15
In the following interview, portfolio managers Marco Pirondini and David Glazer
discuss the factors that influenced the performance of Pioneer Global Equity
Fund during the six-month period ended February 28, 2015. Mr. Pirondini, Head of
Equities, U.S., Executive Vice President and a portfolio manager at Pioneer, and
Mr. Glazer, a Senior Vice President and a portfolio manager at Pioneer, are
responsible for the day-to-day management of the Fund.
Q How did the Fund perform during the six-month period ended February 28,
2015?
A Pioneer Global Equity Fund's Class A shares returned 1.99% at net asset
value during the six-month period ended February 28, 2015, while the Fund's
benchmark, the Morgan Stanley Capital International (MSCI) World ND Index
(the MSCI Index)(1), returned 2.14%. During the same period, the average
return of the 62 mutual funds in Lipper's Global Large-Cap Core Funds
category was 0.67%, and the average return of the 1,225 mutual funds in
Morningstar's World Stock Funds category was 0.98%.
Q How would you characterize the investment environment in the global equity
markets during the six-month period ended February 28, 2015?
A It was a period when U.S. markets performed well and most other global
markets struggled. The global economy slowed somewhat during the past six
months, but continued to grow, led by the United States. The slight dip in
the overall global economy was broad-based outside the United States, as
Europe surprisingly struggled and Japan's economy endured a reversal based
in part on a significant tax increase. Emerging markets also continued to
face difficulties. In addition, due to a significant surplus in crude oil
supply and a decline in demand, energy prices plummeted. That development
negatively affected earnings and stock prices for companies in the energy
sector, which represent approximately 10% of all global stocks.
(1) The MSCI information may only be used for your internal use, may not be
reproduced or redisseminated in any form and may not be used as a basis for
or a component of any financial instruments or products or indices. None of
the MSCI information is intended to constitute investment advice or a
recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future performance
analysis, forecast or prediction. The MSCI information is provided on an "as
is" basis and the user of this information assumes the entire risk of any
use made of this information. MSCI, each of its affiliates and each other
person involved in or related to compiling, computing or creating any MSCI
information (collectively, the "MSCI Parties") expressly disclaims all
warranties (including, without limitation, any warranties of originality,
accuracy, completeness, timeliness, non-infringement, merchantability and
fitness for a particular purpose) with respect to this information. Without
limiting any of the foregoing, in no event shall any MSCI Party have any
liability for any direct, indirect, special, incidental, punitive,
consequential (including, without limitation, lost profits) or any other
damages.
4 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
Significant geopolitical tensions also complicated matters, but despite the
difficulties, global stock markets managed to produce a slightly positive
return for the period.
Q Would you review the Fund's overall investment approach?
A When picking investments for the portfolio we examine mid- and large-
capitalization stocks worldwide, including those located in the emerging
markets. From there, we build a diversified* portfolio. We look for stocks
that we think can provide "growth at a reasonable price," and so there is a
strong value component to our analysis. We seek to invest the Fund in
companies that are not only benefiting from operating efficiencies as
reflected in factors such as increased market share and revenues, but that
are also employing their capital efficiently. In particular, we emphasize
strong free cash flow, because that provides companies with the flexibility
to make share buybacks, reinvest in their businesses, make acquisitions, and
raise dividends**. We also look for stocks with attractive dividend yields
as well as those trading at below-market valuations.
Finally, we attempt to assess not only the potential price gains for each
stock, but also the stock's potential for a decline in price if
circumstances become unfavorable. We prefer stocks with the highest
potential upside, relative to their downside.
Q Which of your investment decisions or individual portfolio holdings either
aided or detracted from the Fund's performance relative to the MSCI Index
during the six-month period ended February 28, 2015?
A A portfolio underweight to consumer staples detracted from the Fund's
benchmark-relative performance during the period, as did overall stock
selection results. At the sector level, stock selection results in
technology and consumer discretionary hurt the Fund's relative returns,
though the majority of the individual securities which detracted from
benchmark-relative performance during the period came from the struggling
energy sector. The underperforming Fund holdings in energy included
Halliburton, Royal Dutch Shell, EOG Resources and Whiting Petroleum.
(Halliburton, EOG Resources and Whiting Petroleum were sold from the
portfolio before period end.)
On the positive side, stock selection in consumer staples, health care,
financials and industrials contributed to the Fund's relative returns during
the six-month period. With regard to allocation, the portfolio's underweight
positions in Europe and in energy stocks as compared with the benchmark
* Diversification does not assure a profit nor protect against loss in a
declining market.
** Dividends are not guaranteed.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 5
helped the Fund's relative performance. In addition, portfolio overweights
in health care and technology, both of which were strong market performers
during the period, added to the Fund's benchmark-relative returns.
With regard to individual portfolio securities, the largest contributions to
the Fund's relative performance came from a group of health care and health
care-related stocks, including CVS Health, Shire and Cardinal Health. All
three stocks benefited from improving business dynamics and attractive
equity valuations, and the fact that their businesses were less affected by
recent bouts of global currency fluctuation. Additionally, the Fund
benefited from its positions in American Airlines, which was helped by
internal restructuring and lower fuel prices; and in Yahoo!, which profited
from its stake in Alibaba.
Q Did you employ derivatives in managing the Fund during the six-month period
ended February 28, 2015, and did those investments have an effect on
performance?
A Over the six-month period, we did utilize some derivative investments in
managing the Fund. The derivatives had a slightly positive effect on
performance.
Q What is your outlook and how is it reflected in the Fund's current
positioning?
A Based on a combination of lower energy prices and stimulative monetary
policies from central banks in Europe and many emerging market countries, we
look for the global economy to bounce back. Lower oil prices should,
however, continue to exert downward pressure on corporate earnings within
the energy sector. Ongoing currency volatility may also continue to create
difficulties for global companies. At this stage of the economic recovery,
after a number of years of strong equity returns, we believe that stocks
have generally reached fair value. We therefore believe that equity returns
in 2015 will be more in line with historical levels as compared with the
exceptionally high returns experienced in recent years.
In terms of the Fund's geographic allocation, we have sought to benefit from
an anticipated pickup in the global economy by adding some portfolio
holdings in cyclical companies outside the United States, while reducing the
Fund's U.S. positions to a slight underweight relative to the MSCI Index.
The Fund's largest geographic overweight continues to be in Japan, which has
recently performed very well in U.S. dollar terms. With regard to sectors,
we continue to underweight the Fund in energy, while overweighting health
care, technology and consumer discretionary.
6 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
Please refer to the Schedule of Investments on pages 16-23 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 subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
Investments in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 7
Portfolio Summary | 2/28/15
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Information Technology 21.4%
Health Care 20.0%
Financials 15.2%
Consumer Discretionary 14.5%
Industrials 13.5%
Consumer Staples 4.7%
Energy 3.9%
Materials 3.6%
Telecommunication Services 3.2%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 55.2%
Japan 18.8%
Switzerland 7.2%
United Kingdom 5.1%
Ireland 3.0%
Netherlands 1.8%
Sweden 1.4%
Hong Kong 1.2%
Other (individually less than 1%) 6.3%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Microsoft Corp. 4.63%
--------------------------------------------------------------------------------
2. Apple, Inc. 4.29
--------------------------------------------------------------------------------
3. CVS Health Corp. 3.50
--------------------------------------------------------------------------------
4. Shire Plc 3.33
--------------------------------------------------------------------------------
5. Cardinal Health, Inc. 3.25
--------------------------------------------------------------------------------
6. Novartis AG 3.03
--------------------------------------------------------------------------------
7. Nippon Telegraph & Telephone Corp. 2.75
--------------------------------------------------------------------------------
8. Mitsubishi UFJ Financial Group, Inc. 2.58
--------------------------------------------------------------------------------
9. Roche Holding AG 2.56
--------------------------------------------------------------------------------
10. Sekisui Chemical Co., Ltd. 2.41
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
8 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
Prices and Distributions | 2/28/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/15 8/31/14
--------------------------------------------------------------------------------
A $13.94 $14.05
--------------------------------------------------------------------------------
C $13.70 $13.78
--------------------------------------------------------------------------------
Y $13.98 $14.12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/15 12/31/14*
--------------------------------------------------------------------------------
K $13.95 $13.51
--------------------------------------------------------------------------------
Distributions per Share: 9/1/14-2/28/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.3828 $ -- $ --
--------------------------------------------------------------------------------
C $0.3047 $ -- $ --
--------------------------------------------------------------------------------
K $ -- $ -- $ --
--------------------------------------------------------------------------------
Y $0.4492 $ -- $ --
--------------------------------------------------------------------------------
The Morgan Stanley Capital International (MSCI) World ND Index is an unmanaged
measure of the performance of stock markets in the developed world. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Fund returns, do not reflect any fees, expenses or sales charges. It is not
possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 10-13.
* Share class commenced operations on December 31, 2014.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 9
Performance Update | 2/28/15 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Global Equity Fund at public
offering price during the periods shown, compared to that of the Morgan Stanley
Capital International (MSCI) World ND Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
Net Public
Asset Offering MSCI
Value Price World
Period (NAV) (POP) ND Index
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 5.94% 5.26% 5.90%
5 Years 11.15 9.85 11.69
1 Year 9.06 2.80 7.87
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.61% 1.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI World
Equity Fund ND Index
12/31/2005 $ 9,425 $ 10,000
2/28/2006 $ 9,840 $ 10,431
2/28/2007 $ 11,516 $ 12,085
2/29/2008 $ 11,861 $ 12,021
2/28/2009 $ 6,400 $ 6,357
2/28/2010 $ 9,461 $ 9,809
2/28/2011 $ 10,983 $ 11,934
2/29/2012 $ 10,795 $ 11,732
2/28/2013 $ 11,870 $ 12,987
2/28/2014 $ 14,717 $ 15,803
2/28/2015 $ 16,050 $ 17,046
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
Performance Update | 2/28/15 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Global Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
MSCI
If If World
Period Held Redeemed ND Index
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 5.00% 5.00% 5.90%
5 Years 10.17 10.17 11.69
1 Year 8.19 8.19 7.87
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.40% 2.25%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI World
Equity Fund ND Index
12/31/2005 $ 10,000 $ 10,000
2/28/2006 $ 10,420 $ 10,431
2/28/2007 $ 12,077 $ 12,085
2/29/2008 $ 12,334 $ 12,021
2/28/2009 $ 6,599 $ 6,357
2/28/2010 $ 9,667 $ 9,809
2/28/2011 $ 11,130 $ 11,934
2/29/2012 $ 10,829 $ 11,732
2/28/2013 $ 11,802 $ 12,987
2/28/2014 $ 14,502 $ 15,803
2/28/2015 $ 15,690 $ 17,046
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 11
Performance Update | 2/28/15 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class K shares of Pioneer Global Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
MSCI
Net Asset World
Period Value (NAV) ND Index
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 5.95% 5.90%
5 Years 11.17 11.69
1 Year 9.14 7.87
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.00%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI World
Equity Fund ND Index
12/31/2005 $ 9,425 $ 10,000
2/28/2006 $ 9,840 $ 10,431
2/28/2007 $ 11,516 $ 12,085
2/29/2008 $ 11,861 $ 12,021
2/28/2009 $ 6,400 $ 6,357
2/28/2010 $ 9,461 $ 9,809
2/28/2011 $ 10,983 $ 11,934
2/29/2012 $ 10,795 $ 11,732
2/28/2013 $ 11,870 $ 12,987
2/28/2014 $ 14,717 $ 15,803
2/28/2015 $ 16,061 $ 17,046
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class K shares for the period prior to the
commencement of operations of Class K shares on December 31, 2014, is the net
asset value performance of the Fund's Class A shares, which has not been
restated to reflect any differences in expenses, including Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares generally are higher
than those of Class K shares, the performance of Class K shares prior to their
inception would have been higher than the performance shown. For the period
beginning December 31, 2014, the actual performance of Class K shares is
reflected. Class K shares are not subject to sales charges and are available for
limited groups of eligible investors, including institutional investors. All
results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
Performance Update | 2/28/15 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Global Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
MSCI
Net Asset World
Period Value (NAV) ND Index
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 6.29% 5.90%
5 Years 11.68 11.69
1 Year 9.55 7.87
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.00% 0.85%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global MSCI World
Equity Fund ND Index
12/31/2005 $ 5,000,000 $ 5,000,000
2/28/2006 $ 5,220,220 $ 5,215,491
2/28/2007 $ 6,109,747 $ 6,042,565
2/29/2008 $ 6,292,650 $ 6,010,513
2/28/2009 $ 3,395,293 $ 3,178,376
2/28/2010 $ 5,051,534 $ 4,904,248
2/28/2011 $ 5,896,117 $ 5,967,213
2/29/2012 $ 5,817,526 $ 5,866,078
2/28/2013 $ 6,432,100 $ 6,493,369
2/28/2014 $ 8,013,032 $ 7,901,247
2/28/2015 $ 8,777,885 $ 8,522,870
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for periods prior to the inception of the Fund's Class Y
shares on December 31, 2008, is the NAV performance of the Fund's Class A
shares. The performance does not reflect differences in expenses, including the
Rule 12b-1 fees applicable to Class A shares. Since fees for Class A shares are
generally higher than those of Class Y shares, the performance for Class Y
shares prior to their inception would have been higher than the performance
shown. For the period beginning December 31, 2008, the actual performance of
Class Y shares is reflected.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, 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 Global Equity Fund | Semiannual Report | 2/28/15 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments and
redemption fees.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global Equity Fund
Based on actual returns from September 1, 2014, through February 28, 2015.
--------------------------------------------------------------------------------
Share Class A C K Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 9/1/14*
--------------------------------------------------------------------------------
Ending Account $1,019.90 $1,016.70 $1,028.10 $1,022.50
Value on 2/28/15
--------------------------------------------------------------------------------
Expenses Paid $ 6.81 $ 10.75 $ 1.77 $ 4.31
During Period**
--------------------------------------------------------------------------------
* Period begins December 31, 2014 (commencement of operations) for Class K
shares.
** Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratios of the underlying funds. These combined totals were 1.36%,
2.15%, 1.06%, and 0.86% for Class A, Class C, Class K, and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period and then multiplied by 181/365 (60/365 for Class K
shares) (to reflect the one-half year period).
14 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global Equity Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2014, through February 28, 2015.
--------------------------------------------------------------------------------
Share Class A C K Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 9/1/14*
--------------------------------------------------------------------------------
Ending Account $1,018.05 $1,014.13 $1,006.48 $1,020.53
Value on 2/28/15
--------------------------------------------------------------------------------
Expenses Paid $ 6.80 $ 10.74 $ 1.75 $ 4.31
During Period**
--------------------------------------------------------------------------------
* Period begins December 31, 2014 (commencement of operations) for Class K
shares.
** Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratios of the underlying funds. These combined totals were 1.36%,
2.15%, 1.06%, and 0.86% for Class A, Class C, Class K, and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period and then multiplied by 181/365 (60/365 for Class K
shares) (to reflect the one-half year period).
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 15
Schedule of Investments | 2/28/15 (unaudited)
--------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------
COMMON STOCKS -- 96.3%
ENERGY -- 3.8%
Integrated Oil & Gas -- 1.8%
91,567 Royal Dutch Shell Plc $ 2,995,342
--------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 2.0%
18,127 EOG Resources, Inc. $ 1,626,354
64,538 Southwestern Energy Co.* 1,618,613
-------------
$ 3,244,967
-------------
Total Energy $ 6,240,309
--------------------------------------------------------------------------------------
MATERIALS -- 3.5%
Fertilizers & Agricultural Chemicals -- 1.6%
7,145 Monsanto Co. $ 860,472
5,070 Syngenta AG 1,786,884
-------------
$ 2,647,356
--------------------------------------------------------------------------------------
Specialty Chemicals -- 1.6%
43,000 Nitto Denko Corp. $ 2,726,688
--------------------------------------------------------------------------------------
Construction Materials -- 0.1%
138,300 Indocement Tunggal Prakarsa Tbk PT $ 257,340
--------------------------------------------------------------------------------------
Steel -- 0.2%
134,208 Fortescue Metals Group, Ltd. $ 260,347
-------------
Total Materials $ 5,891,731
--------------------------------------------------------------------------------------
CAPITAL GOODS -- 9.1%
Aerospace & Defense -- 2.3%
10,736 Precision Castparts Corp. $ 2,322,197
12,139 United Technologies Corp. 1,479,865
-------------
$ 3,802,062
--------------------------------------------------------------------------------------
Electrical Components & Equipment -- 1.7%
38,880 Eaton Corp., Plc $ 2,760,869
--------------------------------------------------------------------------------------
Heavy Electrical Equipment -- 2.2%
49,350 Alstom SA $ 1,628,695
176,000 Mitsubishi Electric Corp. 2,063,954
-------------
$ 3,692,649
--------------------------------------------------------------------------------------
Industrial Machinery -- 2.9%
42,280 Ingersoll-Rand Plc $ 2,840,793
9,061 Parker-Hannifin Corp. 1,111,694
433,000 Sarine Technologies, Ltd. 864,422
-------------
$ 4,816,909
-------------
Total Capital Goods $ 15,072,489
--------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 1.2%
Human Resource & Employment Services -- 1.2%
15,245 Towers Watson & Co. $ 2,004,718
-------------
Total Commercial Services & Supplies $ 2,004,718
--------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------
TRANSPORTATION -- 2.8%
Airlines -- 2.8%
66,026 American Airlines Group, Inc. $ 3,162,645
53,973 EasyJet Plc 1,441,199
-------------
$ 4,603,844
-------------
Total Transportation $ 4,603,844
--------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 5.9%
Tires & Rubber -- 1.8%
79,500 Bridgestone Corp. $ 3,047,635
--------------------------------------------------------------------------------------
Automobile Manufacturers -- 4.1%
17,050 Daimler AG $ 1,648,705
112,200 Mazda Motor Corp. 2,400,732
55,491 Tata Motors, Ltd. 517,809
90,824 Tata Motors, Ltd. (Class A DVR) 526,967
24,500 Toyota Motor Corp. 1,652,584
-------------
$ 6,746,797
-------------
Total Automobiles & Components $ 9,794,432
--------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 2.7%
Homebuilding -- 2.3%
300,000 Sekisui Chemical Co., Ltd. $ 3,851,000
--------------------------------------------------------------------------------------
Textiles -- 0.4%
456,000 Pacific Textiles Holdings, Ltd. $ 681,731
-------------
Total Consumer Durables & Apparel $ 4,532,731
--------------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.8%
Hotels, Resorts & Cruise Lines -- 0.9%
18,644 Marriott International, Inc. $ 1,549,316
--------------------------------------------------------------------------------------
Restaurants -- 0.9%
135,215 Domino's Pizza Group Plc $ 1,506,993
-------------
Total Consumer Services $ 3,056,309
--------------------------------------------------------------------------------------
MEDIA -- 1.8%
Broadcasting -- 1.4%
38,400 CBS Corp. (Class B) $ 2,269,440
--------------------------------------------------------------------------------------
Movies & Entertainment -- 0.4%
10,877 Viacom, Inc. (Class B) $ 760,737
-------------
Total Media $ 3,030,177
--------------------------------------------------------------------------------------
RETAILING -- 1.7%
Department Stores -- 0.7%
19,560 Macy's, Inc. $ 1,246,363
--------------------------------------------------------------------------------------
Apparel Retail -- 1.0%
15,061 Ross Stores, Inc. $ 1,593,604
-------------
Total Retailing $ 2,839,967
--------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 17
Schedule of Investments | 2/28/15 (unaudited) (continued)
--------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 3.9%
Drug Retail -- 3.4%
53,894 CVS Health Corp. $ 5,597,970
--------------------------------------------------------------------------------------
Food Retail -- 0.5%
10,368 Walgreens Boots Alliance, Inc. $ 861,373
-------------
Total Food & Staples Retailing $ 6,459,343
--------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.7%
Brewers -- 0.7%
15,667 Molson Coors Brewing Co. (Class B) $ 1,188,969
-------------
Total Food, Beverage & Tobacco $ 1,188,969
--------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.7%
Health Care Equipment -- 0.6%
7,510 Edwards Lifesciences Corp.* $ 998,980
--------------------------------------------------------------------------------------
Health Care Distributors -- 3.1%
59,153 Cardinal Health, Inc. $ 5,204,872
-------------
Total Health Care Equipment & Services $ 6,203,852
--------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 15.6%
Biotechnology -- 0.5%
2,131 Biogen Idec, Inc.* $ 872,836
--------------------------------------------------------------------------------------
Pharmaceuticals -- 14.4%
7,353 Jazz Pharmaceuticals Plc* $ 1,250,672
29,464 Johnson & Johnson 3,020,355
6,320 Mallinckrodt Plc* 737,670
47,418 Novartis AG 4,853,323
98,206 Pfizer, Inc. 3,370,430
15,134 Roche Holding AG 4,101,179
8,041 Salix Pharmaceuticals, Ltd.* 1,264,045
65,913 Shire Plc 5,328,713
-------------
$ 23,926,387
--------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.7%
8,610 Thermo Fisher Scientific, Inc. $ 1,119,300
-------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 25,918,523
--------------------------------------------------------------------------------------
BANKS -- 7.6%
Diversified Banks -- 6.6%
21,112 Bank of America Corp. $ 333,781
2,292,000 Industrial & Commercial Bank of China, Ltd. 1,672,294
19,585 JPMorgan Chase & Co. 1,200,169
634,500 Mitsubishi UFJ Financial Group, Inc. 4,129,555
65,138 Nordea Bank AB 878,466
32,900 Sumitomo Mitsui Financial Group, Inc. 1,309,825
55,873 Swedbank AB 1,452,274
-------------
$ 10,976,364
--------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------
Regional Banks -- 1.0%
17,592 The PNC Financial Services Group, Inc. $ 1,617,760
-------------
Total Banks $ 12,594,124
--------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 6.0%
Specialized Finance -- 2.2%
7,040 Intercontinental Exchange, Inc. $ 1,656,934
39,348 The NASDAQ OMX Group, Inc. 1,973,696
-------------
$ 3,630,630
--------------------------------------------------------------------------------------
Consumer Finance -- 2.1%
56,478 Discover Financial Services, Inc. $ 3,444,028
--------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.5%
94,443 Apollo Investment Corp. $ 735,711
13,129 TriplePoint Venture Growth BDC Corp. 195,228
-------------
$ 930,939
--------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 1.2%
54,768 Morgan Stanley Co. $ 1,960,147
-------------
Total Diversified Financials $ 9,965,744
--------------------------------------------------------------------------------------
INSURANCE -- 0.5%
Property & Casualty Insurance -- 0.5%
7,216 ACE, Ltd. $ 822,696
-------------
Total Insurance $ 822,696
--------------------------------------------------------------------------------------
REAL ESTATE -- 0.6%
Diversified Real Estate Activities -- 0.6%
195,800 Leopalace21 Corp. $ 1,074,437
-------------
Total Real Estate $ 1,074,437
--------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 9.7%
Internet Software & Services -- 3.7%
57,401 eBay, Inc.* $ 3,324,092
64,959 Yahoo!, Inc.* 2,876,385
-------------
$ 6,200,477
--------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 1.0%
6,022 Visa, Inc. $ 1,633,829
--------------------------------------------------------------------------------------
Systems Software -- 4.5%
168,801 Microsoft Corp. $ 7,401,929
--------------------------------------------------------------------------------------
Home Entertainment Software -- 0.5%
83,900 Nexon Co., Ltd. $ 868,570
-------------
Total Software & Services $ 16,104,805
--------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 10.1%
Communications Equipment -- 1.0%
22,127 Qualcomm, Inc. $ 1,604,429
--------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 19
Schedule of Investments | 2/28/15 (unaudited) (continued)
--------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------
Computer Storage & Peripherals -- 4.1%
53,413 Apple, Inc. $ 6,861,434
--------------------------------------------------------------------------------------
Technology Hardware Storage & Peripherals -- 1.8%
76,662 NetApp, Inc. $ 2,962,986
--------------------------------------------------------------------------------------
Electronic Equipment Manufacturers -- 1.8%
129,000 Hitachi, Ltd. $ 882,738
1,749,000 PAX Global Technology, Ltd.* 1,593,252
444,000 Wasion Group Holdings, Ltd. 440,004
-------------
$ 2,915,994
--------------------------------------------------------------------------------------
Electronic Components -- 1.1%
14,400 Murata Manufacturing Co., Ltd. $ 1,776,355
--------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.3%
95,000 Global Display Co., Ltd. $ 590,145
-------------
Total Technology Hardware & Equipment $ 16,711,343
--------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.9%
Semiconductors -- 0.9%
501,000 Advanced Semiconductor Engineering, Inc. $ 673,983
224,000 Transcend Information, Inc. 736,625
-------------
$ 1,410,608
-------------
Total Semiconductors & Semiconductor Equipment $ 1,410,608
--------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.7%
Integrated Telecommunication Services -- 2.7%
71,000 Nippon Telegraph & Telephone Corp. $ 4,404,937
-------------
Total Telecommunication Services $ 4,404,937
--------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $136,920,609) $ 159,926,088
--------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 96.3%
(Cost $136,920,609) (a) (b) $ 159,926,088
--------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 3.7% $ 6,155,080
--------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 166,081,168
======================================================================================
* Non-income producing security.
DVR Differential Voting Rights.
(a) At February 28, 2015, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $137,083,768 was as
follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost $ 25,177,695
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value (2,335,375)
-------------
Net unrealized appreciation $ 22,842,320
=============
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
(b) Distributions of investments by country of issue, as a percentage of
total investment in securities (excluding temporary cash
investments), is as follows:
United States 55.2%
Japan 18.8%
Switzerland 7.2%
United Kingdom 5.1%
Ireland 3.0%
Netherlands 1.8%
Sweden 1.4%
Hong Kong 1.2%
Other (individually less than 1%) 6.3%
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 28, 2015 aggregated $87,400,903 and $86,434,299,
respectively.
TOTAL RETURN SWAP AGREEMENTS
--------------------------------------------------------------------------------------
Obligation Net
Notional Pay/ Entity/ Expiration Unrealized
Principal ($) Counterparty Receive Index Coupon Date Appreciation
--------------------------------------------------------------------------------------
JPY (534,616,880) Citibank NA Pay JPX-NIKKEI 1M Libor 6/10/15 $339,102
INDEX 400 +53 bps
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
JPY Japanese Yen
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. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 21
Schedule of Investments | 2/28/15 (unaudited) (continued)
The following is a summary of the inputs used as of February 28, 2015, in
valuing the Fund's investments:
--------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------
Common Stocks
Energy
Integrated Oil & Gas $ -- $ 2,995,342 $ -- $ 2,995,342
Materials
Fertilizers & Agricultural
Chemicals 860,472 1,786,884 -- 2,647,356
Specialty Chemicals -- 2,726,688 -- 2,726,688
Construction Materials -- 257,340 -- 257,340
Steel -- 260,347 -- 260,347
Capital Goods
Heavy Electrical Equipment -- 3,692,649 -- 3,692,649
Industrial Machinery 3,952,487 864,422 -- 4,816,909
Transportation
Airlines 3,162,645 1,441,199 -- 4,603,844
Automobiles & Components
Tires & Rubber -- 3,047,635 -- 3,047,635
Automobile Manufacturers -- 6,746,797 -- 6,746,797
Consumer Durables & Apparel
Homebuilding -- 3,851,000 -- 3,851,000
Textiles -- 681,731 -- 681,731
Consumer Services
Restaurants -- 1,506,993 -- 1,506,993
Pharmaceuticals, Biotechnology
& Life Sciences
Pharmaceuticals 9,643,172 14,283,215 -- 23,926,387
Banks
Diversified Banks 1,533,950 9,442,414 -- 10,976,364
Real Estate
Diversified Real Estate Activities -- 1,074,437 -- 1,074,437
Software & Services
Home Entertainment Software -- 868,570 -- 868,570
Technology Hardware & Equipment
Electronic Equipment
Manufacturers -- 2,915,994 -- 2,915,994
Electronic Components -- 1,776,355 -- 1,776,355
Electronic Manufacturing Services -- 590,145 -- 590,145
Semiconductors & Semiconductor
Equipment
Semiconductors -- 1,410,608 -- 1,410,608
Telecommunication Services
Integrated Telecommunication
Services -- 4,404,937 -- 4,404,937
All Other Common Stocks 74,147,660 -- -- 74,147,660
--------------------------------------------------------------------------------------------
Total $ 93,300,386 $66,625,702 $ -- $159,926,088
============================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------
Other Financial Instruments:
Net Unrealized Appreciation On
Forward Foreign Currency
Contracts $ -- $ 203 $ -- $ 203
Net Unrealized Depreciation On
Forward Foreign Currency
Contracts -- (115) -- (115)
Net Unrealized Depreciation On
Futures Contracts (15,213) -- -- (15,213)
Net Unrealized Appreciation On
Total Return Swap 339,102 -- -- 339,102
--------------------------------------------------------------------------------------------
Total other financial instruments: $ 323,889 $ 88 $ -- $323,977
============================================================================================
During the six months ended February 28, 2015, there were no transfers between
Levels 1, 2 and 3.
The following is a summary of the fair valuation of certain Fund's assets and
liabilities as of February 28, 2015.
--------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------
Assets:
Foreign currencies, at value $ -- $ 727,829 $ -- $ 727,829
Futures collateral 166,100 -- -- 166,100
Swap collateral -- 375,000 -- 375,000
Variation margin for
swap contracts -- (29) -- (29)
Liabilities:
Variation margin for
futures contracts 8,126 -- -- 8,126
--------------------------------------------------------------------------------------------
Total: $ 174,226 $1,102,800 $ -- $1,277,026
============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 23
Statement of Assets and Liabilities | 2/28/15 (unaudited)
ASSETS:
Investment in securities (cost $136,920,609) $159,926,088
Cash 3,656,822
Foreign currencies, at value (cost $729,289) 727,829
Futures collateral 166,100
Swap collateral 375,000
Receivables --
Investment securities sold 2,386,297
Fund shares sold 1,067,398
Dividends and foreign taxes withheld 454,670
Due from Pioneer Investment Management, Inc. 22,180
Swap receivable 180,625
Variation margin for futures contracts 8,126
Net unrealized appreciation on forward foreign currency contracts 203
Net unrealized appreciation on total return swap 339,102
Other 47,246
---------------------------------------------------------------------------------------
Total assets $169,357,686
=======================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 2,847,148
Fund shares repurchased 224,410
Net unrealized depreciation on futures contracts 15,212
Net unrealized depreciation on forward foreign currency contracts 115
Variation margin for swap contracts 29
Due to affiliates 50,971
Trustee fees 1,130
Accrued expenses 137,503
---------------------------------------------------------------------------------------
Total liabilities $ 3,276,518
=======================================================================================
NET ASSETS:
Paid-in capital $164,870,671
Distributions in excess of net investment income (567,526)
Accumulated net realized loss on investments, futures contracts,
swap contracts and foreign currency transactions (21,521,200)
Net unrealized appreciation on investments 23,005,479
Net unrealized depreciation on futures contracts (15,212)
Net unrealized appreciation on total return swap 339,102
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (30,146)
---------------------------------------------------------------------------------------
Total net assets $166,081,168
=======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $80,475,262/5,771,036 shares) $ 13.94
Class C (based on $12,473,920/910,628 shares) $ 13.70
Class K (based on $59,573,669/4,270,843 shares) $ 13.95
Class Y (based on $13,558,317/969,983 shares) $ 13.98
MAXIMUM OFFERING PRICE:
Class A ($13.94 (divided by) 94.25%) $ 14.79
=======================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
Statement of Operations (unaudited)
For the Six Months Ended 2/28/15
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $54,452) $ 1,244,574
Interest 487
--------------------------------------------------------------------------------------------------
Total investment income $1,245,061
--------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 594,136
Transfer agent fees
Class A 84,797
Class B* 4,270
Class C 9,300
Class Y 262
Distribution fees
Class A 95,527
Class B* 3,685
Class C 50,781
Shareholder communications expense 45,054
Administrative reimbursements 29,128
Custodian fees 16,636
Registration fees 26,405
Professional fees 34,122
Printing expense 9,990
Fees and expenses of nonaffiliated Trustees 3,123
Miscellaneous 7,902
--------------------------------------------------------------------------------------------------
Total expenses $1,015,118
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (114,717)
--------------------------------------------------------------------------------------------------
Net expenses $ 900,401
--------------------------------------------------------------------------------------------------
Net investment income $ 344,660
--------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS,
TOTAL RETURN SWAP AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments (net of foreign capital gains taxes of $81,324) $ 4,343,086
Futures contracts (119,534)
Total return swap 529,248
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (109,135) $4,643,665
--------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ (1,216,230)
Futures contracts 132,138
Total return swap 260,392
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 51,238 $ (772,462)
--------------------------------------------------------------------------------------------------
Net gain on investments, futures contracts, total return swap
and foreign currency transactions $3,871,203
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $4,215,863
==================================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 25
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/15 Year Ended
(unaudited) 8/31/14
--------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 344,660 $ 3,470,519
Net realized gain on investments, futures contracts,
total return swap, written options, and foreign
currency transactions 4,643,665 21,338,272
Change in net unrealized appreciation (depreciation)
on investments, futures contracts, total return
swap and foreign currency transactions (772,462) 11,183,577
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 4,215,863 $ 35,992,368
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.38 and $0.20 per share, respectively) $ (2,165,744) $ (1,074,448)
Class B* ($0.00 and $0.07 per share, respectively) -- (14,217)
Class C ($0.30 and $0.10 per share, respectively) (252,529) (57,648)
Class Y ($0.45 and $0.25 per share, respectively) (2,272,661) (1,568,569)
--------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (4,690,934) $ (2,714,882)
--------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 83,909,091 $ 14,621,595
Reinvestment of distributions 2,627,331 1,128,095
Cost of shares repurchased (77,500,864) (35,112,389)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Fund
share transactions $ 9,035,558 $ (19,362,699)
--------------------------------------------------------------------------------------------------
Net increase in net assets $ 8,560,487 $ 13,914,787
NET ASSETS:
Beginning of period 157,520,681 143,605,894
--------------------------------------------------------------------------------------------------
End of period $166,081,168 $ 157,520,681
--------------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net investment income $ (567,526) $ 3,778,748
==================================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------------------
'15 Shares '15 Amount
(unaudited) (unaudited) '14 Shares '14 Amount
--------------------------------------------------------------------------------------------------
Class A
Shares sold 589,523 $ 8,127,014 603,313 $ 7,775,776
Reinvestment of distributions 152,838 2,090,838 81,986 1,045,326
Less shares repurchased (427,654) (5,845,929) (798,782) (10,307,534)
--------------------------------------------------------------------------------------------------
Net increase (decrease) 314,707 $ 4,371,923 (113,483) $ (1,486,432)
==================================================================================================
Class B*
Shares sold or exchanged -- $ -- 10,609 $ 126,556
Reinvestment of distributions -- -- 1,102 13,921
Less shares repurchased (149,799) (2,044,742) (74,502) (944,641)
--------------------------------------------------------------------------------------------------
Net decrease (149,799) $ (2,044,742) (62,791) $ (804,164)
==================================================================================================
Class C
Shares sold 350,981 $ 4,762,016 158,541 $ 2,023,027
Reinvestment of distributions 17,964 241,613 4,350 54,723
Less shares repurchased (69,852) (942,034) (137,739) (1,776,869)
--------------------------------------------------------------------------------------------------
Net increase 299,093 $ 4,061,595 25,152 $ 300,881
==================================================================================================
Class K**
Shares sold 4,271,583 $ 57,922,631 -- $ --
Reinvestment of distributions -- -- -- --
Less shares repurchased (740) (10,326) -- --
--------------------------------------------------------------------------------------------------
Net increase 4,270,843 $ 57,912,305 -- $ --
==================================================================================================
Class Y
Shares sold 943,457 $ 13,097,430 349,580 $ 4,696,236
Reinvestment of distributions 21,508 294,880 1,106 14,125
Less shares repurchased (4,978,785) (68,657,833) (1,676,590) (22,083,345)
--------------------------------------------------------------------------------------------------
Net decrease (4,013,820) $ (55,265,523) (1,325,904) $ 17,372,984)
==================================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
** Class K shares commenced operations on December 31, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 27
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/15 Ended Ended Ended Ended Ended
(unaudited) 8/31/14 8/31/13 8/31/12 8/31/11 8/31/10
--------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 14.05 $ 11.31 $ 9.64 $ 9.27 $ 8.44 $ 8.56
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.01 $ 0.27 $ 0.15 $ 0.17 $ 0.13 $ 0.08
Net realized and unrealized gain (loss) on investments 0.26 2.67 1.68 0.33 0.76 (0.17)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.27 $ 2.94 $ 1.83 $ 0.50 $ 0.89 $ (0.09)
--------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.38) $ (0.20) $ (0.16) $ (0.13) $ (0.06) $ (0.03)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.11) $ 2.74 $ 1.67 $ 0.37 $ 0.83 $ (0.12)
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.94 $ 14.05 $ 11.31 $ 9.64 $ 9.27 $ 8.44
==========================================================================================================================
Total return* 1.99% 26.13% 19.17% 5.50% 10.48% (1.13)%
Ratio of net expenses to average net assets 1.30%** 1.30% 1.30% 1.30% 1.30% 1.30%
Ratio of net investment income (loss) to average net assets 0.26%** 2.01% 1.35% 1.71% 1.23% 0.82%
Portfolio turnover rate 113%** 121% 160% 152% 194% 114%
Net assets, end of period (in thousands) $80,475 $76,638 $62,996 $56,970 $60,701 $61,466
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.48%** 1.56% 1.67% 1.72% 1.67% 1.71%
Net investment income (loss) to average net assets 0.08%** 1.75% 0.98% 1.29% 0.86% 0.41%
==========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
-----------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/15 Ended Ended Ended Ended Ended
(unaudited) 8/31/14 8/31/13 8/31/12 8/31/11 8/31/10
-----------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 13.78 $ 11.11 $ 9.47 $ 9.09 $ 8.31 $ 8.48
-----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.10) $ 0.14 $ 0.05 $ 0.10 $ 0.04 $ 0.00(a)
Net realized and unrealized gain (loss) on investments 0.32 2.63 1.66 0.31 0.74 (0.17)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.22 $ 2.77 $ 1.71 $ 0.41 $ 0.78 $ (0.17)
-----------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.30) $ (0.10) $ (0.07) $ (0.03) $ -- $ --
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.08) $ 2.67 $ 1.64 $ 0.38 $ 0.78 $ (0.17)
-----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.70 $ 13.78 $ 11.11 $ 9.47 $ 9.09 $ 8.31
=============================================================================================================================
Total return* 1.67% 24.98% 18.11% 4.56% 9.39% (2.00)%
Ratio of net expenses to average net assets 2.09%** 2.20% 2.20% 2.20% 2.20% 2.20%
Ratio of net investment income (loss) to average net assets (0.56)%** 1.13% 0.45% 0.82% 0.35% (0.07)%
Portfolio turnover rate 113%** 121% 160% 152% 194% 114%
Net assets, end of period (in thousands) $12,474 $ 8,427 $ 6,516 $ 5,682 $ 6,439 $ 6,118
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 2.19%** 2.35% 2.51% 2.53% 2.48% 2.54%
Net investment income (loss) to average net assets (0.66)%** 0.98% 0.14% 0.49% 0.07% (0.41)%
=============================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) Amount rounds to less than $0.01 per share.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 29
Financial Highlights (continued)
--------------------------------------------------------------------------------
12/31/14
to
2/28/15
(unaudited)
--------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 13.51
--------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.01
Net realized and unrealized gain (loss) on investments 0.43
--------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.44
--------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ --
--------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.44
--------------------------------------------------------------------------------
Net asset value, end of period $ 13.95
================================================================================
Total return* 2.81%***
Ratio of net expenses to average net assets 1.00%**
Ratio of net investment income (loss) to average net assets 1.23%**
Portfolio turnover rate 113%**
Net assets, end of period (in thousands) $ 59,574
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.10%**
Net investment income (loss) to average net assets 1.13%**
================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/15 Ended Ended Ended Ended Ended
(unaudited) 8/31/14 8/31/13 8/31/12 8/31/11 8/31/10
--------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 14.12 $ 11.37 $ 9.69 $ 9.32 $ 8.49 $ 8.59
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.20) $ 0.37 $ 0.20 $ 0.21 $ 0.18 $ 0.12
Net realized and unrealized gain (loss) on investments 0.51 2.63 1.69 0.34 0.76 (0.17)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.31 $ 3.00 $ 1.89 $ 0.55 $ 0.94 $ (0.05)
--------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.45) $ (0.25) $ (0.21) $ (0.18) $ (0.11) $ (0.05)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.14) $ 2.75 $ 1.68 $ 0.37 $ 0.83 $ (0.10)
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.98 $ 14.12 $ 11.37 $ 9.69 $ 9.32 $ 8.49
==========================================================================================================================
Total return* 2.25% 26.66% 19.75% 6.09% 10.96% (0.59)%
Ratio of net expenses to average net assets 0.80%** 0.80% 0.80% 0.80% 0.80% 0.80%
Ratio of net investment income (loss) to average net assets 0.74%** 2.58% 1.85% 2.22% 1.74% 1.33%
Portfolio turnover rate 113%** 121% 160% 152% 194% 114%
Net assets, end of period (in thousands) $13,558 $70,384 $71,726 $60,214 $59,927 $58,692
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.91%** 0.95% 1.00% 0.97% 0.95% 0.96%
Net investment income (loss) to average net assets 0.63%** 2.43% 1.65% 2.05% 1.59% 1.17%
==========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 31
Notes to Financial Statements | 2/28/15 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Global Equity Fund, formerly Pioneer Global Select Equity Fund (the
Fund), is one of five portfolios comprising Pioneer Series Trust V, a Delaware
statutory trust. The Fund is registered under the Investment Company Act of 1940
as a diversified, open-end management investment company. The Fund commenced
operations on December 15, 2005. The Fund's investment objective is to seek
long-term capital growth.
The Fund offers four classes of shares designated as Class A, Class C, Class K
and Class Y shares. Class Y shares were first publicly offered on December 31,
2008. Class K shares were first publicly offered on January 2, 2015. 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.
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.
32 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are valued
using the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices. Shares of money market mutual funds
are valued at such funds' net asset value. Cash may include overnight time
deposits at approved financial institutions.
The Fund invests primarily in securities of non-U.S. issuers. The principal
exchanges and markets for such securities have closing times prior to the
close of the NYSE. However, the value of these securities may be influenced
by changes in global markets occurring after the closing times of the local
exchanges and markets up to the time the Fund determines its net asset
value. Consequently, the Board of Trustees of the Fund has determined that
daily adjustments to the valuation of securities of non-U.S. issuers by
utilizing an independent pricing service that supplies an appropriate fair
value factor is appropriate for the Fund.
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. 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.
PIM's fair valuation
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 33
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.
At February 28, 2015, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services or broker-dealers).
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income is recorded on the
accrual basis. Dividend and interest income are reported net of
unrecoverable foreign taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
C. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of August 31, 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 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 six months ended February 28, 2015, the Fund paid no 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 February 28, 2015, the Fund had $81,324 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.
34 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
during the year ended August 31, 2014 was as follows:
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $2,714,882
----------------------------------------------------------------------------
Total $2,714,882
============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2014:
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 3,900,336
Capital loss carryforward (26,144,250)
Net unrealized appreciation 23,929,482
----------------------------------------------------------------------------
Total $ 1,685,568
============================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales and the
mark-to-market of forwards, futures, and swap contracts.
D. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $7,828 in underwriting commissions on the sale of Class A shares
during the six months ended February 28, 2015.
E. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates. Net realized gains and losses on foreign currency
transactions, if any, represent, among other things, the net realized gains
and losses on foreign currency contracts, disposition of foreign currencies
and the difference between the amount of income accrued and the U.S. dollars
actually received. Further, the effects of changes in foreign currency
exchange
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 35
rates on investments are not segregated in the Statement of Operations from
the effects of changes in the market price of those securities but are
included with the net realized and unrealized gain or loss on investments.
F. 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
are 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 6).
G. 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 K and 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).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, Class K and Class Y shares
can reflect different transfer agent and distribution expense rates.
H. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
36 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
I. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency rates or
to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
February 28, 2015 was $166,100. Subsequent payments for futures contracts
("variation margin") are paid or received by the Fund, depending on the
daily fluctuation in the value of the contracts, and are recorded by the
Fund as unrealized appreciation or depreciation. When the contract is
closed, the Fund realizes a gain or loss equal to the difference between the
opening and closing value of the contract as well as any fluctuation in
foreign currency exchange rates where applicable. The use of futures
contracts involves, to varying degrees, elements of market, interest rate,
currency exchange rate and counterparty risks, which may exceed the amounts
recognized by the Fund. Changes in value of the contracts may not directly
correlate to the changes in value of the underlying securities. These risks
may decrease the effectiveness of the Fund's hedging strategies and
potentially result in a loss. The average value of contracts open during the
six months ended February 28, 2015 was $1,287,374.
At February 28, 2015, open futures contracts were as follows:
----------------------------------------------------------------------------
Number of
Contracts Settlement Unrealized
Type Long/(Short) Month Value Depreciation
----------------------------------------------------------------------------
F/C Japanese Yen
Currency Future (30) 3/15 $(3,132,750) $(15,212)
----------------------------------------------------------------------------
Total $(15,212)
============================================================================
J. Purchased Options
The Fund may purchase call and put options in order to attempt to hedge
against changes in the value of portfolio securities or to seek to increase
total return. Purchased call and put 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
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 37
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. There were no purchased options held during the six
months ended February 28, 2015.
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
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. There were no written options held during the six months ended
February 28, 2015.
L. Total Return Swap Agreements
The Fund may enter into a total return swap to attempt to manage and/or gain
exposure to a security or market. Pursuant to a total return swap agreement,
the Fund negotiates with a counterparty to exchange a periodic stream of
payments. One party makes payments based on the total return of a reference
asset (such as a security or a basket of securities or securities index),
and in return receives fixed or floating rate interest payments. The total
return of the reference asset typically includes appreciation or
depreciation on the reference asset, plus any interest or dividend payments.
To the extent that the total return of the reference asset exceeds or falls
short of the offsetting interest rate obligation, the Fund will receive a
payment from or make a payment to the counterparty.
38 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
Total return swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Payments received or made are recorded as realized gains or
losses in the Statement of Operations. Total return swap contracts are
subject to counterparty risk and unanticipated movements in value of
exchange rates, interest rates, securities or the index.
Open total return swap contracts at February 28, 2015 are listed in the
Schedule of Investments. The average value of swap contracts open during the
six months ended February 28, 2015 was $130,175.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate equal to
0.75% of the Fund's average daily net assets up to $500 million, 0.70% of the
next $500 million of the Fund's average daily net assets and 0.65% of the Fund's
average daily net assets over $1 billion. For the six months ended February 28,
2015, the effective management fee (excluding waivers and/or assumption of
expenses) was equivalent to 0.75% 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 1.30%, 2.20%, and 0.80% of the
average daily net assets attributable to Class A, Class C and Class Y shares,
respectively. Fees waived and expenses reimbursed during the six months ended
February 28, 2015 are reflected on the Statement of Operations. These expense
limitations are in effect through January 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 to affiliates" reflected on the Statement of Assets and Liabilities is
$27,223 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 28, 2015.
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.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 39
For the six months ended February 28, 2015, such out-of-pocket expenses by class
of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $36,578
Class B 1,148
Class C 4,724
Class Y 2,604
--------------------------------------------------------------------------------
Total: $45,054
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $21,053 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2015.
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 $2,695 in distribution fees payable to
PFD at February 28, 2015.
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
six months ended February 28, 2015, CDSCs in the amount of $670 were paid to
PFD.
5. Expense Offsets 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 six months ended February 28, 2015, the Fund's
expenses were not reduced under such arrangements.
40 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
6. Forward Foreign Currency Contracts
At February 28, 2015, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the six months ended February 28, 2015 was
$68,433.
Open forward foreign currency contracts at February 28, 2015 were as follows:
------------------------------------------------------------------------------------------------------
Quantity/
Shares Net
Currency Purchased/ Book Settlement US $ Value at Unrealized
Description Counterparty (Sold) Value Date 2/28/15 Appreciation
------------------------------------------------------------------------------------------------------
HKD (Kong Brown Brothers
Kong Dollar) Harriman & Co. 432,965 $(55,814) 3/2/15 $ 55,824 $ 10
JPY (Japanese Brown Brothers
Yen) Harriman & Co. (6,903,000) 57,862 3/2/15 (57,669) 193
------------------------------------------------------------------------------------------------------
Total $ 203
======================================================================================================
------------------------------------------------------------------------------------------------------
Quantity/
Shares Net
Currency Purchased/ Book Settlement US $ Value at Unrealized
Description Counterparty (Sold) Value Date 2/28/15 (Depreciation)
------------------------------------------------------------------------------------------------------
NOK (Norwegian Brown Brothers
Krone) Harriman & Co. (5,647,740) $736,486 3/2/15 $(736,601) $(115)
======================================================================================================
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 February 28, 2015.
-----------------------------------------------------------------------------------------------
Assets:
Net
Gross Amounts Gross Amounts
Amounts of Assets Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement ------------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
-----------------------------------------------------------------------------------------------
Forward
foreign
currency
contracts $ 203 $ -- $ -- $ -- $ -- $ 203
Total return swap $339,102 $ -- $ -- $ -- $ -- $339,102
-----------------------------------------------------------------------------------------------
$339,305 $ -- $ -- $ -- $ -- $339,305
===============================================================================================
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 41
-----------------------------------------------------------------------------------------------
Liabilities:
Net
Gross Amounts Gross Amounts
Amounts of Assets Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement ------------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Received Amount
-----------------------------------------------------------------------------------------------
Forward
foreign
currency
contracts $ 115 $ -- $ -- $ -- $ -- $ 115
Total return swap -- -- -- -- 375,000 375,000
-----------------------------------------------------------------------------------------------
$ 115 $ -- $ -- $ -- $ 375,000 $375,115
===============================================================================================
8. Additional Disclosures about Derivative Instruments and
Hedging Activities
Values of derivative instruments as of February 28, 2015 were as follows:
-----------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as
Hedging Instruments Asset Derivatives 2015 Liabilities Derivatives 2015
Under Accounting -----------------------------------------------------------------
Standards Codification Balance Sheet Balance Sheet
(ASC) 815 Location Value Location Value
-----------------------------------------------------------------------------------------------
Forward Foreign Net unrealized Net unrealized
Currency Contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $ 203 currency contracts $ 115
Total Return Swap Net unrealized Net unrealized
appreciation on depreciation on
total return swap $ 339,102 total return swap $ --
Futures Contracts Net unrealized Net unrealized
appreciation on depreciation on
futures contracts $ -- futures contracts $ 15,212
-----------------------------------------------------------------------------------------------
Total $ 339,305 $ 15,327
===============================================================================================
42 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
The effect of derivative instruments on the Statement of Operations for the six
months ended February 28, 2015 was as follows:
-----------------------------------------------------------------------------------------------
Change in
Derivatives Not Unrealized
Accounted for as Realized Gain Appreciation or
Hedging Instruments or (Loss) 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
Currency Contracts forward foreign currency contracts $ 48,881
Forward Foreign Change in unrealized appreciation
Currency Contracts (depreciation) on forward foreign
currency contracts $ (47,618)
Total Return Swap Net realized gain (loss) on
total return swap $ 529,248
Total Return Swap Change in unrealized appreciation
(depreciation) on total return swap $ 260,392
Futures Contracts Net realized gain (loss) on futures
contracts $(119,534)
Futures Contracts Change in net unrealized appreciation
(depreciation) on futures contracts $ 132,138
9. Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Fund, with the approval and recommendation of the
Audit Committee, has appointed Deloitte & Touche LLP to serve as the Fund's
independent registered public accounting firm. Deloitte & Touche LLP replaced
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 August 31, 2013.
During the periods that Ernst & Young LLP served as the Fund's independent
registered public accounting firm, including the Fund's fiscal years ended
August 31, 2013 and August 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.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 43
10. 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.
44 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Global Equity Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in January 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
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 45
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 performance results for periods ended
June 30, 2014. The Trustees indicated
46 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
that they were satisfied with PIM's investment discipline and approach in the
prevailing market conditions, notwithstanding relatively poor peer comparisons
of total return over the 5-year period.
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 second quintile relative to the management fees
paid by other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoints in the management fee schedule and the
reduced fee rates above certain asset levels. The Trustees considered that the
expense ratio of the Fund's Class A shares for the twelve months ended June 30,
2014 was in the second 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 considered that the expense ratio of the
Fund's Class Y 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
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 47
in scope, including oversight of the Fund's other service providers and
activities related to compliance and the extensive regulatory and tax regimes to
which the Fund is subject. The Trustees also considered the different
entrepreneurial risks associated with PIM's management of the Fund and Pioneer's
management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoints in the management fee schedule. The Trustees recognize
that economies of scale are difficult to identify and quantify, and that, among
other factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Fund. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons including reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
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.
48 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
Pioneer is the principal U.S. asset management business of Pioneer Global Asset
Management, the worldwide asset management business of UniCredit Group, which
manages over $150 billion in assets (including the Funds). Pioneer and the Funds
receive reciprocal intangible benefits from the relationship, including mutual
brand recognition and, for the Funds, direct and indirect access to the
resources of a large global asset manager. The Trustees concluded that any such
benefits received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 49
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
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.
* Ms. Monchak is a non-voting Advisory Trustee.
50 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
This page for your notes.
Pioneer Global Equity Fund | Semiannual Report | 2/28/15 51
This page for your notes.
52 Pioneer Global Equity Fund | Semiannual Report | 2/28/15
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 http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2015 Pioneer Investments 19129-09-0415
Pioneer High Income
Municipal Fund
--------------------------------------------------------------------------------
Semiannual Report | February 28, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PIMAX
Class C HICMX
Class Y HIMYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 25
Notes to Financial Statements 32
Approval of Investment Advisory Agreement 39
Trustees, Officers and Service Providers 44
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 1
President's Letter
Dear Shareowner,
Today's market environment presents numerous opportunities as well as challenges
for investors. A disparate global economic landscape has formed, with the U.S.
facing prospects for continued growth, while questions abound regarding the
outlook for other regions. Employment, household income, and corporate profits
have been rising in the U.S. and inflation pressures remain low. However, many
countries across Europe as well as Japan face muted growth. In addition, a
variety of factors have clouded the outlook for countries such as Russia and
Brazil and China's investment-driven economy continues to slow.
Monetary policies of major central banks are diverging, reflecting different
economic conditions. With the U.S. economy no longer in need of extraordinary
stimulus, the Federal Reserve Board may be closer to raising short-term interest
rates. Conversely, the European Central Bank and the Bank of Japan are likely to
be adding, not removing, stimulus.
While we anticipate continued growth for the U.S., the outlook is far from
certain, nor is the outlook for other regions necessarily dire. It remains to be
seen how weakness outside the U.S. will affect global growth and whether easing
monetary policies in other regions will spur an economic recovery.
While these economic conditions may lead to increasing volatility in 2015, we
believe the opportunity for investors to earn attractive returns will persist.
However, in an environment where interest rates remain low and equity valuations
have been buoyed by an extended bull market, we believe it is imperative
investors adhere to a disciplined investment approach that is consistent with
one's goals and objectives, being mindful of the tradeoff between risk and
return.
Since 1928 Pioneer's investment professionals have been focused on identifying
and capitalizing on investment opportunities that present themselves in a
variety of ever changing market conditions, including those we face today. We
seek returns consistent with our strategies' stated style and
2 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
objectives and consistent with our shareholders' expectations, regardless of
market conditions. We believe our shareowners benefit from the experience
and tenure of our investment teams, the insights generated from extensive
research resources and a commitment to prudent risk management that seeks
to mitigate downside and preserve returns over time.
We encourage you to work with your financial advisor to develop an overall
investment plan that addresses both your short- and long-term goals, and to
implement such a plan in a disciplined manner, as we do when deploying
strategies on behalf of our shareowners.
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 High Income Municipal Fund | Semiannual Report | 2/28/15 3
Portfolio Management Discussion | 2/28/15
Municipal bonds, led by higher-yielding municipals, generated healthy returns
during the six-month period ended February 28, 2015, as persistent demand
outstripped limited supply. In the following interview, Jonathan Chirunga and
David Eurkus discuss the factors that influenced the performance of Pioneer High
Income Municipal Fund during the six-month period. Mr. Chirunga, a vice
president and a portfolio manager at Pioneer, manages the Fund along with Mr.
Eurkus, Director of Municipals, a senior vice president and a portfolio manager
at Pioneer.
Q How did the Fund perform during the six-month period ended February 28,
2015?
A Pioneer High Income Municipal Fund's Class A shares returned 4.99% during
the six- month period ended February 28, 2015, while the Fund's benchmark,
the Barclays High Yield Municipal Bond Index (the Barclays Index), returned
3.42%. During the same period, the average return of the 145 mutual funds in
Lipper's High-Yield Municipal Debt Funds category was 3.87%, and the average
return of the 193 mutual funds in Morningstar's High-Yield Municipal Funds
category was 3.77%.
Q How did you position the Fund's portfolio during the six-month period ended
February 28, 2015?
A Throughout the six-month period we continued to restructure the Fund's
portfolio, subjecting all new and existing investments to our intensive
credit research selection process while adding more diversification* to the
Fund's holdings across the various municipal bond sectors.
The emphasis on credit research has benefited the Fund, as the portfolio has
experienced no defaults among any of the new holdings added since the
restructuring began two years ago. As part of the restructuring process we
have paid careful attention to portfolio diversification, by sector as well
as geographical region. For example, the Fund's exposure to continuing care
retirement communities has been reduced significantly over the past two
years. We also have increased the portfolio's exposure to charter schools
(18% of invested assets), which is allocated among 23 different schools in
11 different states.
* Diversification does not assure a profit nor protect against loss in a
declining market.
4 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
We have made a conscious effort to avoid the higher-risk areas of the
municipal market as well. For instance, bonds issued by the Commonwealth of
Puerto Rico, which have been troubled assets, represent roughly 28% of the
benchmark Barclays Index, whereas we have limited the Fund's exposure to
Puerto Rican bonds to roughly 2% of invested assets.
During the period, we maintained the Fund's emphasis on holding bonds backed
by revenues from specific projects, rather than general obligation bonds,
which we think tend to be more sensitive to the changing credit conditions
of municipalities or other tax-exempt institutions. As of February 28, 2015,
more than 97% of the Fund's invested assets were allocated to project
revenue bonds.
Q What were some of the main factors behind the Fund's outperformance of the
Barclays Index during the six-month period ended February 28, 2015?
A The Fund was well positioned to benefit from the attractive valuations and
favorable supply/demand relationships which existed in the municipal bond
market during the period -- particularly in the high-yield municipal market.
Throughout the six-month period, municipal bonds enjoyed a healthy relative
value advantage over Treasuries and other taxable bonds, which helped
sustain demand levels during a period which saw relatively little new
issuance of high-yield municipal bonds. Moreover, any new issues of
high-yield municipal debt tended to be significantly oversubscribed by eager
investors.
The lack of significant new issuance in the high-yield portion of the
municipal market was the most significant factor in the Fund's
outperformance of the benchmark, but performance was also helped by the
portfolio's having strong exposure to some of the better-performing sectors.
At the end of the six-month period, for example, the Fund had 20% of
invested assets allocated to the top-performing tobacco sector and roughly
18% of invested assets allocated to the outperforming charter school sector.
Hospitals and continuing care retirement communities--two sectors that also
fared well during the period--each accounted for roughly 16% of the Fund's
invested assets as of period end.
As for individual investments, one of the top-performing Fund holdings
during the period was a California (Golden State) Tobacco Bond backed by
proceeds from the settlement of lawsuits filed by states against the tobacco
industry. Other standout performers in the portfolio during the period
included securities issued by the Esperanza Academy, a charter school in
Pennsylvania, and by Highland Hospitals, a hospital group in West Virginia.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 5
Among the more disappointing performers in the Fund's portfolio during the
period was an industrial development bond backed by a pollution control
project in Erie County, NY.
Q Did you invest the Fund in any derivative securities during the six-month
period ended February 28, 2015?
A No, the Fund had no exposure to derivatives during the period.
Q Did the Fund's current yield, or dividend, change significantly (either
positively or negatively) during the six-month period ended February 28,
2015?
A The Fund's distribution yield did go down slightly during the six-month
period because the Fund's net asset value increased while distribution rates
remained about the same.
We kept the Fund fully invested during the period, however, given our
favorable view of the health of the high-yield municipal market and the
extraordinarily low yields available in the bond market. That positioning
helped the Fund to generate an above-average yield compared with its Lipper
peer group, despite the relatively low yields (by historical standards)
available in the overall market.
Q What is your investment outlook?
A We maintain a positive near-term outlook on the performance potential of
higher-yielding municipal bonds. Against a backdrop of persistent growth of
the overall U.S. economy and low absolute interest rates, demand for high-
yield municipal bonds should continue to exceed supply, keeping municipal
bond yields more attractive than those of securities of comparable credit
quality and maturity in the taxable bond market. While investment-grade
municipal bond issuance has been increasing, we have not yet seen noticeable
growth in new issues of higher-yielding, lower-quality tax-exempt bonds.
With favorable pricing and strong demand, we think that high-yield municipal
debt should continue to perform relatively well.
6 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
Please refer to the Schedule of Investments on pages 15-24 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.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The value of municipal securities can be adversely affected by changes in
financial condition of municipal issuers, lower revenues, and regulatory and
political developments.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
A portion of income may be subject to local, state, federal, and/or alternative
minimum tax. Capital gains, if any, are subject to a capital gains tax.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is not a
guarantee of future results.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 7
Portfolio Summary | 2/28/15
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Health 31.2%
Special Revenues 23.7%
Education 20.8%
Various Revenues 9.6%
Pollution Control Revenue 8.8%
Transportation 2.9%
General Obligation 2.3%
Insured 0.6%
Reserves 0.1%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)*
1. City of Philippi West Virginia, Alderson-Broaddus College, 7.75%, 10/1/44 5.06%
----------------------------------------------------------------------------------------
2. Sanger Industrial Development Corp., Texas Pellets, Inc., 8.0%, 7/1/38 3.29
----------------------------------------------------------------------------------------
3. Commonwealth of Puerto Rico, 8.0%, 7/1/35 2.34
----------------------------------------------------------------------------------------
4. Golden State Tobacco Securitization Corp., 5.75%, 6/1/47 2.10
----------------------------------------------------------------------------------------
5. Washington State Housing Finance Commission, Skyline at First Hill
Project, 5.625%, 1/1/38 2.07
----------------------------------------------------------------------------------------
6. Pennsylvania Economic Development Financing Authority, US Airways Group
Series B, 8.0%, 5/1/29 2.00
----------------------------------------------------------------------------------------
7. Tobacco Settlement Financing Corp., New Jersey, 5.0%, 6/1/41 1.99
----------------------------------------------------------------------------------------
8. Michigan Strategic Fund, CFP Michigan II LLC, Floating Rate Note, 3/1/40 1.53
----------------------------------------------------------------------------------------
9. TSASC, Inc., New York, Series 1, 5.125%, 6/1/42 1.51
----------------------------------------------------------------------------------------
10. Iowa Tobacco Settlement Authority, 5.625%, 6/1/46 1.50
----------------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
8 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
Prices and Distributions | 2/28/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/15 8/31/14
--------------------------------------------------------------------------------
A $ 7.43 $ 7.27
--------------------------------------------------------------------------------
C $ 7.44 $ 7.28
--------------------------------------------------------------------------------
Y $ 7.34 $ 7.18
--------------------------------------------------------------------------------
Distributions per Share: 9/1/14-2/28/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ 0.1990 $ -- $ --
--------------------------------------------------------------------------------
C $ 0.1713 $ -- $ --
--------------------------------------------------------------------------------
Y $ 0.2032 $ -- $ --
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Barclays High Yield Municipal Bond Index is an unmanaged measure of the
performance of the high-yield municipal bond market. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. It is not possible to invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts shown on pages 10-12.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 9
Performance Update | 2/28/15 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer High Income Municipal Fund at
public offering price during the periods shown, compared to that of the Barclays
High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
Barclays
Net Public High Yield
Asset Offering Municipal
Value Price Bond
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) 2.84% 2.28% 4.60%
5 Years 5.77 4.80 8.04
1 Year 10.52 5.48 9.48
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays High Yield
Municipal Fund Municipal Bond Index
10/31/2006 $ 9,550 $ 10,000
2/28/2007 $ 9,909 $ 10,270
2/29/2008 $ 8,948 $ 9,569
2/28/2009 $ 6,836 $ 7,805
2/28/2010 $ 9,095 $ 9,878
2/28/2011 $ 9,397 $ 10,337
2/29/2012 $ 9,947 $ 11,800
2/28/2013 $ 11,716 $ 13,498
2/28/2014 $ 10,896 $ 13,282
2/28/2015 $ 12,043 $ 14,541
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
Performance Update | 2/28/15 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer High Income Municipal Fund during
the periods shown, compared to that of the Barclays High Yield Municipal Bond
Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
Barclays
High Yield
Municipal
If If Bond
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) 2.01% 2.01% 4.60%
5 Years 5.03 5.03 8.04
1 Year 9.84 9.84 9.48
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.66%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays High Yield
Municipal Fund Municipal Bond Index
10/31/2006 $ 10,000 $ 10,000
2/28/2007 $ 10,329 $ 10,270
2/29/2008 $ 9,219 $ 9,569
2/28/2009 $ 6,990 $ 7,805
2/28/2010 $ 9,217 $ 9,878
2/28/2011 $ 9,471 $ 10,337
2/29/2012 $ 9,951 $ 11,800
2/28/2013 $ 11,635 $ 13,498
2/28/2014 $ 10,725 $ 13,282
2/28/2015 $ 11,780 $ 14,541
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 11
Performance Update | 2/28/15 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer High Income Municipal Fund during
the periods shown, compared to that of the Barclays High Yield Municipal Bond
Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
Barclays
Net High Yield
Asset Municipal
Value Bond
Period (NAV) Index
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) 2.82% 4.60%
5 Years 5.99 8.04
1 Year 10.77 9.48
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.71%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer High Income Barclays High Yield
Municipal Fund Municipal Bond Index
10/31/2006 $ 5,000,000 $ 5,000,000
2/28/2007 $ 5,187,054 $ 5,135,163
2/29/2008 $ 4,644,235 $ 4,784,639
2/28/2009 $ 3,552,200 $ 3,902,577
2/28/2010 $ 4,701,409 $ 4,939,057
2/28/2011 $ 4,880,716 $ 5,168,354
2/29/2012 $ 5,170,926 $ 5,900,058
2/28/2013 $ 6,097,347 $ 6,748,911
2/28/2014 $ 5,677,689 $ 6,641,049
2/28/2015 $ 6,289,167 $ 7,270,605
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
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 High Income Municipal Fund
Based on actual returns from September 1, 2014, through February 28, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 9/1/14
--------------------------------------------------------------------------------
Ending Account Value $1,049.90 $1,045.90 $1,051.10
(after expenses) on 2/28/15
--------------------------------------------------------------------------------
Expenses Paid $ 4.47 $ 8.27 $ 3.61
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.88%, 1.63%
and 0.71% for Class A, Class C and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 13
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2014, through February 28, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 9/1/14
--------------------------------------------------------------------------------
Ending Account Value $1,020.43 $1,016.71 $1,021.27
(after expenses) on 2/28/15
--------------------------------------------------------------------------------
Expenses Paid $ 4.41 $ 8.15 $ 3.56
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.88%, 1.63%
and 0.71% for Class A, Class C and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
14 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
Schedule of Investments | 2/28/15 (unaudited)
--------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
--------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.9% (e)
Alaska -- 0.2%
1,250,000 Northern Tobacco Securitization Corp., 5.0%, 6/1/46 $ 1,006,362
--------------------------------------------------------------------------------------------------
Arizona -- 1.0%
1,000,000 The Industrial Development Authority of the County
of Pima, Desert Heights Charter School, 7.0%, 5/1/34 $ 1,047,400
3,000,000 The Industrial Development Authority of the County
of Pima, Desert Heights Charter School, 7.25%, 5/1/44 3,146,970
725,000 The Industrial Development Authority of the County
of Pima, Legacy Transition Charter School, 8.5%, 7/1/39 816,589
-------------
$ 5,010,959
--------------------------------------------------------------------------------------------------
California -- 13.9%
5,040,000 California County Tobacco Securitization Agency,
Sonoma County Securitization Corp., 5.125%, 6/1/38 $ 4,208,299
1,880,000 California County Tobacco Securitization Agency,
Sonoma County Securitization Corp., 5.25%, 6/1/45 1,564,856
6,755,000 California County Tobacco Securitization Agency,
Merced County Tobacco Funding Corp., 5.25%, 6/1/45 5,566,255
2,715,000 California County Tobacco Securitization Agency,
Los Angeles County Securitization Corp., 5.6%, 6/1/36 2,511,646
3,800,000 California County Tobacco Securitization Agency,
Los Angeles County Securitization Corp., 5.7%, 6/1/46 3,380,442
6,300,000 California Municipal Finance Authority, Santa
Rosa Academy, 6.0%, 7/1/42 6,651,099
830,000 California School Finance Authority, View Park
Elementary School, 5.625%, 10/1/34 845,040
1,475,000 California School Finance Authority, View Park
Elementary School, 5.875%, 10/1/44 1,504,161
1,000,000 California School Finance Authority, View Park
Elementary School, 6.0%, 10/1/49 1,019,050
3,230,000 California School Finance Authority, View Park
High School Series A, 7.125%, 10/1/48 3,560,849
3,000,000 California School Finance Authority, Classical
Academies Project Series A, 7.375%, 10/1/43 3,498,030
2,500,000 California Statewide Communities Development
Authority, Loma Linda University Medical Center,
5.5%, 12/1/54 2,762,100
1,560,000 California Statewide Communities Development
Authority, California Baptist University, 6.125%, 11/1/33 1,771,536
4,030,000 California Statewide Communities Development
Authority, California Baptist University, 6.375%, 11/1/43 4,600,245
2,000,000 California Statewide Communities Development
Authority, Lancer Educational Housing, 7.5%, 6/1/42 2,230,100
315,559 California Statewide Communities Development
Authority, Micrology Holdings Project, 9.0%, 12/1/38 (c) 3
12,500,000 Golden State Tobacco Securitization Corp.,
5.75%, 6/1/47 10,677,000
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 15
Schedule of Investments | 2/28/15 (unaudited) (continued)
--------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
--------------------------------------------------------------------------------------------------
California -- (continued)
130,000 Golden State Tobacco Securitization Corp., 6/1/37 $ 109,204
4,000,000 Pittsburg Unified School District, 9/1/38 (d)(f) 887,000
3,925,000 Pittsburg Unified School District, 9/1/39 (d)(f) 804,743
2,500,000 Pittsburg Unified School District, 9/1/41 (d)(f) 736,275
1,925,000 Pittsburg Unified School District, 9/1/42 (d)(f) 539,962
5,000,000 River Islands Public Financing Authority,
5.5%, 9/1/45 5,093,750
6,000,000 Tobacco Securitization Authority of Southern
California, San Diego County Securitization Corp.,
5.0%, 6/1/37 5,106,900
2,800,000 Tobacco Securitization Authority of Southern
California, San Diego County Securitization Corp.,
5.125%, 6/1/46 2,339,372
-------------
$ 71,967,917
--------------------------------------------------------------------------------------------------
Colorado -- 2.7%
2,000,000 Colorado Educational & Cultural Facilities
Authority, Rocky Mountain Classical Charter
School, 8.0%, 9/1/43 $ 2,049,440
5,000,000 Colorado Educational & Cultural Facilities
Authority, Rocky Mountain Classical Charter
School, 8.125%, 9/1/48 5,130,800
8,000,000 Kremmling Memorial Hospital District, 7.125%,
12/1/45 6,619,360
-------------
$ 13,799,600
--------------------------------------------------------------------------------------------------
District of Columbia -- 0.8%
735,000 District of Columbia Tobacco Settlement Financing
Corp., 6.75%, 5/15/40 $ 735,066
3,500,000 District of Columbia, Provident Group Howard
Properties LLC, 5.0%, 10/1/45 3,588,725
-------------
$ 4,323,791
--------------------------------------------------------------------------------------------------
Florida -- 2.9%
5,000,000 Alachua County Health Facilities Authority, Terraces
Bonita Springs Project Series A, 8.125%, 11/15/46 $ 5,811,250
5,000,000 Capital Trust Agency, Inc., Million Air One LLC,
7.75%, 1/1/41 4,811,950
1,820,000 County of Liberty Florida, Twin Oaks Project 8.25%,
7/1/28 (c) 404,550
1,000,000 Florida Development Finance Corp., Tuscan Isle
Obligated Group, 7.0%, 6/1/35 1,034,610
3,000,000 Florida Development Finance Corp., Tuscan Isle
Obligated Group, 7.0%, 6/1/45 3,074,520
-------------
$ 15,136,880
--------------------------------------------------------------------------------------------------
Hawaii -- 0.2%
1,000,000 State of Hawaii Department of Budget & Finance,
Craigside Project Series A, 9.0%, 11/15/44 $ 1,254,460
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
--------------------------------------------------------------------------------------------------
Illinois -- 4.0%
526,959 Illinois Finance Authority, Clare Oaks Project
Series C2, 11/15/52 $ 144,424
526,959 Illinois Finance Authority, Clare Oaks Project
Series C3 11/15/52 90,842
2,634,795 Illinois Finance Authority, Clare Oaks Project
Series C1, 11/15/52 (d) 91,875
485,000 Illinois Finance Authority, Clare Oaks Project
Series A3, 7.0%, 11/15/17 485,194
1,250,000 Illinois Finance Authority, Norwegian American
Hospital, Inc., 7.625%, 9/15/28 1,403,862
4,845,000 Illinois Finance Authority, Norwegian American
Hospital, Inc., 7.75%, 9/15/38 5,631,683
4,213,653 4.00 Illinois Finance Authority, Clare Oaks Project
Series E, Floating Rate Note, 11/15/52 2,695,432
2,580,000 Southwestern Illinois Development Authority,
Village of Sauget, 5.625%, 11/1/26 2,210,028
680,000 Southwestern Illinois Development Authority,
St Claire County Comprehensive Behavioral
Health Center, 6.2%, 6/1/17 699,142
7,020,000 Southwestern Illinois Development Authority,
St Claire County Comprehensive Behavioral
Health Center, 6.625%, 6/1/37 7,174,159
-------------
$ 20,626,641
--------------------------------------------------------------------------------------------------
Indiana -- 3.5%
1,750,000 City of Carmel Indiana, Barrington Carmel Project
Series A, 7.0%, 11/15/32 $ 1,957,375
2,000,000 City of Carmel Indiana, Barrington Carmel Project
Series A, 7.125%, 11/15/42 2,227,160
2,000,000 City of Carmel Indiana, Barrington Carmel Project
Series A, 7.125%, 11/15/47 2,220,480
3,500,000 City of Crown Point Indiana, Wittenberg Lutheran
Project Series A, 8.0%, 11/15/39 3,995,880
3,000,000 City of Gary Indiana, 2.5%, 5/1/15 3,000,450
4,000,000 Vigo County Hospital Authority, Union Hospital,
Inc., 8.0%, 9/1/41 4,863,160
-------------
$ 18,264,505
--------------------------------------------------------------------------------------------------
Iowa -- 1.7%
105,000 Iowa Tobacco Settlement Authority, 5.5%, 6/1/42 $ 92,143
1,000,000 Iowa Tobacco Settlement Authority, 5.6%, 6/1/34 951,300
8,580,000 Iowa Tobacco Settlement Authority, 5.625%, 6/1/46 7,621,957
-------------
$ 8,665,400
--------------------------------------------------------------------------------------------------
Louisiana -- 0.8%
5,800,000 Tensas Parish Law Enforcement District, 10/1/26 (c)(d) $ 4,132,674
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 17
Schedule of Investments | 2/28/15 (unaudited) (continued)
--------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
--------------------------------------------------------------------------------------------------
Maryland -- 0.2%
1,000,000 Maryland Health & Higher Educational Facilities
Authority, City Neighbors Project Series A, 6.75%,
7/1/44 $ 1,092,090
--------------------------------------------------------------------------------------------------
Massachusetts -- 1.4%
1,116,746 Massachusetts Development Finance Agency,
Linden Ponds Series B, 11/15/56 (d) $ 6,901
1,235,770 Massachusetts Development Finance Agency,
Linden Ponds Series A, 6.25%, 11/15/26 1,211,537
3,340,294 Massachusetts Development Finance Agency,
Linden Ponds Series A, 6.25%, 11/15/39 3,218,006
2,000,000 Massachusetts Development Finance Agency,
Advent Care Project Series A, 6.75%, 10/15/37 2,089,460
860,000 Massachusetts Development Finance Agency,
Advent Care Project Series A, 7.625%, 10/15/37 971,146
3,500,000 Massachusetts Health & Educational Facilities
Authority, Quincy Medical Center, 1/15/38 (c)(d) 8,960
-------------
$ 7,506,010
--------------------------------------------------------------------------------------------------
Michigan -- 8.0%
4,130,000 Charyl Stockwell Academy, 5.75%, 10/1/25 $ 4,092,665
3,000,000 Charyl Stockwell Academy, 5.9%, 10/1/35 2,956,230
1,250,000 Flint Hospital Building Authority, Hurley Medical
Center, 5.25%, 7/1/39 1,193,738
1,250,000 Flint Hospital Building Authority, Hurley Medical
Center, 7.375%, 7/1/35 1,440,062
5,485,000 Flint International Academy, 5.75%, 10/1/37 5,601,008
225,000 Michigan Public Educational Facilities Authority,
Dr Joseph F Pollack Academic Center of Excellence,
7.25%, 4/1/20 240,728
2,020,000 Michigan Public Educational Facilities Authority,
Dr Joseph F Pollack Academic Center of Excellence,
8.0%, 4/1/40 2,185,721
4,460,000 Michigan Public Educational Facilities Authority,
Dadid Ellis Academy West, 5.875%, 6/1/37 4,520,656
4,000,000 6.62 Michigan Strategic Fund, CFP Taylor Governmental
Center LLC, Floating Rate Note, 11/1/41 4,334,280
7,135,000 6.75 Michigan Strategic Fund, CFP Michigan II LLC,
Floating Rate Note, 3/1/40 7,782,144
750,000 Michigan Tobacco Settlement Finance Authority,
6.0%, 6/1/34 661,515
6,190,000 Michigan Tobacco Settlement Finance Authority,
6.0%, 6/1/48 5,265,833
1,250,000 Michigan Tobacco Settlement Finance Authority,
6.875%, 6/1/42 1,231,212
-------------
$ 41,505,792
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
--------------------------------------------------------------------------------------------------
Minnesota -- 0.8%
2,000,000 Bloomington Port Authority, Radison Blu MOA LLC,
9.0%, 12/1/35 $ 2,331,060
1,500,000 City of Brooklyn Park Minnesota, Prarie Seeds
Academy, 9.25%, 3/1/39 1,651,035
-------------
$ 3,982,095
--------------------------------------------------------------------------------------------------
Missouri -- 1.7%
5,740,000 Community Memorial Hospital District, 6.68%,
12/1/34 $ 6,002,146
2,500,000 Kirkwood Industrial Development Authority,
Aberdeen Heights Series A, 8.25%, 5/15/45 2,878,650
-------------
$ 8,880,796
--------------------------------------------------------------------------------------------------
New Jersey -- 5.1%
6,000,000 New Jersey Economic Development Authority,
Gloucester Marine Project, 6.625%, 1/1/37 $ 6,083,820
4,500,000 New Jersey Health Care Facilities Financing
Authority, St Peters University Hospital, 6.25%, 7/1/35 4,992,975
7,000,000 Tobacco Settlement Financing Corp., New Jersey,
4.75%, 6/1/34 5,421,080
13,000,000 Tobacco Settlement Financing Corp., New Jersey,
5.0%, 6/1/41 10,099,440
-------------
$ 26,597,315
--------------------------------------------------------------------------------------------------
New Mexico -- 1.0%
6,015,000 County of Otero New Mexico, 6.0%, 4/1/28 $ 5,258,433
--------------------------------------------------------------------------------------------------
New York -- 4.9%
1,500,000 Build NYC Resource Corp., Pratt Paper NY,
5.0%, 1/1/35 $ 1,600,845
85,000 New York City Industrial Development Agency,
British Airways Plc, 5.25%, 12/1/32 85,185
1,180,000 New York Counties Tobacco Trust IV, 5.0%, 6/1/45 976,403
10,000,000 New York Counties Tobacco Trust V, 6/1/38 (d) 2,408,800
2,000,000 Onondaga Civic Development Corp., St Joseph's
Hospital Health Center, 5.0%, 7/1/42 2,054,280
1,000,000 Onondaga Civic Development Corp., St Joseph's
Hospital Health Center, 5.125%, 7/1/31 1,082,520
4,500,000 Suffolk Tobacco Asset Securitization Corp., 6/1/44 4,522,005
10,000,000 The Erie County Industrial Development Agency,
Galvstar LLC Project Series A, 10/1/30 (c)(d) 2,549,600
8,000,000 The Erie County Industrial Development Agency,
Galvstar LLC Project Series B, 10/1/30 (c)(d) 2,039,680
1,795,000 The Erie County Industrial Development Agency,
Galvstar LLC Project Series C, 10/1/30 (c)(d) 457,653
9,040,000 TSASC, Inc. New York, Series 1, 5.125%, 6/1/42 7,685,627
100,000 Westchester Tobacco Asset Securitization New York,
5.125%, 6/1/38 97,147
-------------
$ 25,559,745
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 19
Schedule of Investments | 2/28/15 (unaudited) (continued)
--------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
--------------------------------------------------------------------------------------------------
Ohio -- 5.2%
3,000,000 Buckeye Tobacco Settlement Financing Authority,
5.75%, 6/1/34 $ 2,446,560
4,000,000 Buckeye Tobacco Settlement Financing Authority,
5.875%, 6/1/47 3,304,360
8,555,000 Buckeye Tobacco Settlement Financing Authority,
6.0%, 6/1/42 7,141,286
4,250,000 Buckeye Tobacco Settlement Financing Authority,
6.5%, 6/1/47 3,791,510
1,150,000 County of Muskingum Ohio, Genesis Healthcare
System, 5.0%, 2/15/33 1,202,222
5,000,000 County of Muskingum Ohio, Genesis Healthcare
System, 5.0%, 2/15/48 5,160,550
3,900,000 Southeastern Ohio Port Authority, Marietta Aera
Health Care, Inc., 6.0%, 12/1/42 4,158,297
-------------
$ 27,204,785
--------------------------------------------------------------------------------------------------
Pennsylvania -- 9.0%
465,000 Allegheny County Hospital Development Authority,
Ohio Valley General Hospital, 5.125%, 4/1/35 $ 463,531
3,000,000 Pennsylvania Economic Development Financing
Authority, Northwestern Human Services, Inc.,
5.25%, 6/1/28 3,001,830
2,005,000 Pennsylvania Economic Development Financing
Authority, US Airways Group Series A, 7.5%, 5/1/20 2,347,474
8,445,000 Pennsylvania Economic Development Financing
Authority, US Airways Group Series B, 8.0%, 5/1/29 10,189,821
2,500,000 Philadelphia Authority for Industrial Development,
Green Woods Charter School, 5.5%, 6/15/32 2,586,275
5,200,000 Philadelphia Authority for Industrial Development,
Green Woods Charter School, 5.75%, 6/15/42 5,390,580
1,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School, 6.5%, 6/15/33 (144A) 1,024,580
3,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School, 6.75%, 6/15/43 (144A) 3,082,740
6,000,000 Philadelphia Authority for Industrial Development,
Nueva Esperanza, Inc., 8.2%, 12/1/43 6,697,140
1,180,000 Philadelphia Hospitals & Higher Education Facilities
Authority, Temple University Health Sytem,
5.625%, 7/1/36 1,265,975
6,000,000 Philadelphia Hospitals & Higher Education Facilities
Authority, Temple University Health System,
5.625%, 7/1/42 6,417,780
4,000,000 Pottsville Hospital Authority Pennsylvania, Schuylkill
Health System, 6.5%, 7/1/28 4,343,680
-------------
$ 46,811,406
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
--------------------------------------------------------------------------------------------------
Puerto Rico -- 2.3%
14,300,000 Commonwealth of Puerto Rico, 8.0%, 7/1/35 (f) $ 11,922,911
--------------------------------------------------------------------------------------------------
Rhode Island -- 0.1%
2,065,000 Central Falls Detention Facility Corp., 7.25%,
7/15/35 (c) $ 516,229
--------------------------------------------------------------------------------------------------
Texas -- 10.3%
5,500,000 Arlington Higher Education Finance Corp., LTTS
Charter School, Inc., 7.125%, 3/1/44 $ 5,851,065
400,000 City of Celina Texas, 5.375%, 9/1/28 394,712
1,000,000 City of Celina Texas, 5.5%, 9/1/24 989,790
250,000 City of Celina Texas, 5.5%, 9/1/32 246,135
650,000 City of Celina Texas, 5.875%, 9/1/40 638,202
1,075,000 City of Celina Texas, 6.0%, 9/1/30 1,060,068
2,700,000 City of Celina Texas, 6.25%, 9/1/40 2,652,696
2,000,000 City of Houston Texas Airport System Revenue,
United Airlines, Inc., 5.0%, 7/1/29 2,151,320
234,442 Gulf Coast Industrial Development Authority,
Micrology Holdings LLC, 12/1/36 (c)(d) 2
1,380,000 Kinney County Public Facilities Corp.,
7.0%, 11/1/25 1,248,721
15,000,000 Sanger Industrial Development Corp., Texas
Pellets, Inc., 8.0%, 7/1/38 16,717,650
1,775,000 Tarrant County Cultural Education Facilities Finance
Corp., Stayton at Museum Way, 8.0%, 11/15/28 1,763,001
2,250,000 Tarrant County Cultural Education Facilities Finance
Corp., Mirador Project, 8.0%, 11/15/29 2,190,938
120,000 Tarrant County Cultural Education Facilities Finance
Corp., MRC Crestview Project, 8.0%, 11/15/34 140,227
5,000,000 Tarrant County Cultural Education Facilities Finance
Corp., Mirador Project, 8.125%, 11/15/39 4,826,500
6,350,000 Tarrant County Cultural Education Facilities Finance
Corp., MRC Crestview Project, 8.125%, 11/15/44 7,404,290
5,000,000 Tarrant County Cultural Education Facilities Finance
Corp., Stayton at Museum Way, 8.25%, 11/15/44 4,955,200
1,000,000 Texas Midwest Public Facility Corp., Secure Treatment
Facility, 10/1/30 (c)(d) 177,300
-------------
$ 53,407,817
--------------------------------------------------------------------------------------------------
Utah -- 1.9%
1,450,000 Utah State Charter School Finance Authority, Summit
Academy High School, 7.25%, 5/15/21 $ 1,590,708
1,985,000 Utah State Charter School Finance Authority, Summit
Academy High School, 8.125%, 5/15/31 2,214,526
5,145,000 Utah State Charter School Finance Authority, Summit
Academy High School, 8.5%, 5/15/41 5,843,434
-------------
$ 9,648,668
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 21
Schedule of Investments | 2/28/15 (unaudited) (continued)
--------------------------------------------------------------------------------------------------
Principal Floating
Amount ($) Rate (b) Value
--------------------------------------------------------------------------------------------------
Virginia -- 1.3%
9,750,000 Tobacco Settlement Financing Corp., Virginia,
5.0%, 6/1/47 $ 6,990,165
--------------------------------------------------------------------------------------------------
Washington -- 2.7%
3,500,000 Washington State Housing Finance Commission,
Skyline at First Hill Project, 5.625%, 1/1/27 $ 3,524,955
10,610,000 Washington State Housing Finance Commission,
Skyline at First Hill Project, 5.625%, 1/1/38 10,534,987
-------------
$ 14,059,942
--------------------------------------------------------------------------------------------------
West Virginia -- 6.4%
25,000,000 City of Philippi West Virginia, Alderson-Broaddus
College, 7.75%, 10/1/44 $ 25,717,502
6,345,000 West Virginia Hospital Finance Authority, Highland
Hospital, 9.125%, 10/1/41 7,414,640
-------------
$ 33,132,142
--------------------------------------------------------------------------------------------------
Wisconsin -- 3.9%
500,000 Public Finance Authority, Voyager Foundation, Inc.,
5.0%, 10/1/34 $ 508,190
1,245,000 Public Finance Authority, Voyager Foundation, Inc.,
5.125%, 10/1/45 1,256,628
1,590,000 Public Finance Authority, Coral Academy of Science,
5.625%, 7/1/44 1,681,600
2,815,000 Public Finance Authority, Voyager Foundation Inc.,
6.2%, 10/1/42 3,039,046
5,057,500 Public Finance Authority, Las Ventanas Retirement
Community, 7.0%, 10/1/42 5,083,597
5,325,000 Public Finance Authority, Glenridge of Palmer Ranch,
8.25%, 6/1/46 6,284,831
2,330,000 Public Finance Authority, Searstone Project,
8.375%, 6/1/20 2,337,806
-------------
$ 20,191,698
--------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $494,452,710) $ 508,457,228
--------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT
OBLIGATION -- 0.0%+
1,175,000 0.00 Non-Profit Preferred Funding Trust I, Floating Rate
Note, 9/15/37 (144A) $ 150,564
--------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED
DEBT OBLIGATION
(Cost $1,172,476) $ 150,564
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 97.9%
(Cost $495,625,186) (a) (g) $ 508,607,792
--------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 2.1% $ 10,837,145
--------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 519,444,937
==================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
+ Rounds to less than 0.01%.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
February 28, 2015, the value of these securities amounted to
$4,257,884 or 0.8% of total net assets.
(a) At February 28, 2015, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $495,330,575 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 38,194,904
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (24,917,687)
------------
Net unrealized appreciation $ 13,277,217
============
(b) Debt obligation with a variable interest rate. Rate shown is rate at
end of period.
(c) Security is in default and is non-income producing.
(d) Security issued with a zero coupon. Income is earned through accretion
of discount.
(e) Consists of Revenue Bonds unless otherwise indicated.
(f) Represents a General Obligation bond.
(g) The concentration of investments by type of obligation/market sector
is as follows:
Revenue Bonds:
Health 31.2%
Special Revenues 23.7%
Education 20.8%
Various Revenues 9.6%
Pollution Control Revenue 8.8%
Transportation 2.9%
General Obligation 2.3%
Insured 0.6%
Reserves 0.1%
--------------------------------------------------------------------------------
100.0%
================================================================================
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 28, 2015 aggregated $141,133,488 and $117,802,145,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
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. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 23
Schedule of Investments | 2/28/15 (unaudited) (continued)
The following is a summary of the inputs used as of February 28, 2015, in
valuing the Fund's investments:
--------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------
Municipal Bonds $ -- $508,457,228 $ -- $508,457,228
Municipal Collateralized
Debt Obligation -- 150,564 -- 150,564
--------------------------------------------------------------------------------------------
Total $ -- $508,607,792 $ -- $508,607,792
============================================================================================
During the six-months ended February 28, 2015, there were no transfers between
Levels 1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
Statement of Assets and Liabilities | 2/28/15 (unaudited)
ASSETS:
Investment in securities, at value (cost $495,625,186) $508,607,792
Cash 3,033,783
Receivables --
Investment securities sold 1,050,917
Fund shares sold 2,187,663
Interest 9,135,503
Other Assets 39,103
----------------------------------------------------------------------------------
Total assets $524,054,761
==================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 2,413,400
Fund shares repurchased 1,560,368
Dividends 441,257
Due to affiliates 78,453
Trustee fees 3,092
Accrued expenses 113,254
----------------------------------------------------------------------------------
Total liabilities $ 4,609,824
==================================================================================
NET ASSETS:
Paid-in capital $559,703,490
Undistributed net investment income 8,649,352
Accumulated net realized loss on investments (61,890,511)
Net unrealized appreciation on investments 12,982,606
----------------------------------------------------------------------------------
Total net assets $519,444,937
==================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $245,851,728/33,077,534 shares) $ 7.43
Class C (based on $153,517,026/20,647,883 shares) $ 7.44
Class Y (based on $120,076,183/16,365,120 shares) $ 7.34
MAXIMUM OFFERING PRICE:
Class A ($7.43 (divided by) 95.5%) $ 7.78
==================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 25
Statement of Operations (unaudited)
For the Six Months Ended 2/28/15
INVESTMENT INCOME:
Interest $15,847,143
----------------------------------------------------------------------------------
Total investment income $ 15,847,143
----------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,239,429
Transfer agent fees
Class A 10,690
Class C 3,954
Class Y 790
Distribution fees
Class A 300,448
Class C 742,059
Shareholder communications expense 137,448
Administrative reimbursement 74,230
Custodian fees 4,598
Registration fees 17,098
Professional fees 57,782
Printing expense 6,337
Fees and expenses of nonaffiliated Trustees 8,320
Miscellaneous 46,481
----------------------------------------------------------------------------------
Total expenses $ 2,649,664
----------------------------------------------------------------------------------
Net investment income $ 13,197,479
----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $ (8,242,310)
----------------------------------------------------------------------------------
Change in net unrealized appreciation on investments $ 18,721,057
----------------------------------------------------------------------------------
Net gain on investments $ 10,478,747
----------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 23,676,226
==================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------
Six Months
Ended
2/28/15 Year Ended
(unaudited) 8/31/14
------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 13,197,479 $ 28,710,919
Net realized gain (loss) on investments (8,242,310) 2,409,680
Change in net unrealized appreciation (depreciation)
on investments 18,721,057 3,527,217
------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 23,676,226 $ 34,647,816
------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.20 and $0.44 per share, respectively) $ (6,504,336) $ (14,679,335)
Class C ($0.17 and $0.39 per share, respectively) (3,460,383) (8,896,752)
Class Y ($0.20 and $0.45 per share, respectively) (3,003,688) (6,197,281)
------------------------------------------------------------------------------------------
Total distributions to shareowners $ (12,968,407) $ (29,773,368)
------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 89,784,371 $ 171,100,856
Reinvestment of distributions 10,550,363 23,543,400
Cost of shares repurchased (81,580,261) (274,646,597)
------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ 18,754,473 $ (80,002,341)
------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 29,462,292 $ (75,127,893)
NET ASSETS:
Beginning of period 489,982,645 565,110,538
------------------------------------------------------------------------------------------
End of period $ 519,444,937 $ 489,982,645
------------------------------------------------------------------------------------------
Undistributed net investment income $ 8,649,352 $ 8,420,280
==========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 27
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------
'15 Shares '15 Amount
(unaudited) (unaudited) '14 Shares '14 Amount
------------------------------------------------------------------------------------------
Class A
Shares sold 5,674,000 $ 41,742,620 13,364,645 $ 95,629,792
Reinvestment of distributions 768,461 5,669,884 1,762,944 12,632,777
Less shares repurchased (6,409,377) (47,145,427) (16,892,168) (120,665,382)
------------------------------------------------------------------------------------------
Net increase (decrease) 33,084 $ 267,077 (1,764,579) $ (12,402,813)
==========================================================================================
Class C
Shares sold 1,825,535 $ 13,485,087 3,088,934 $ 22,128,792
Reinvestment of distributions 380,939 2,811,541 969,680 6,948,501
Less shares repurchased (2,101,932) (15,457,409) (10,680,691) (76,310,340)
------------------------------------------------------------------------------------------
Net increase (decrease) 104,542 $ 839,219 (6,622,077) $ (47,233,047)
==========================================================================================
Class Y
Shares sold 4,740,781 $ 34,556,664 7,547,136 $ 53,342,272
Reinvestment of distributions 283,962 2,068,938 560,257 3,962,122
Less shares repurchased (2,614,081) (18,977,425) (11,017,755) (77,670,875)
------------------------------------------------------------------------------------------
Net increase (decrease) 2,410,662 $ 17,648,177 (2,910,362) $ (20,366,481)
==========================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/15 Ended Ended Ended Ended Ended
(unaudited) 8/31/14 8/31/13 8/31/12 8/31/11 8/31/10
--------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 7.27 $ 7.19 $ 7.94 $ 7.58 $ 7.97 $ 6.84
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.20 $ 0.43 $ 0.53 $ 0.47 $ 0.53 $ 0.55
Net realized and unrealized gain (loss) on investments 0.16 0.09 (0.84) 0.34 (0.40) 1.12
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.36 $ 0.52 $ (0.31) $ 0.81 $ 0.13 $ 1.67
--------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.20) $ (0.44) $ (0.44) $ (0.45) $ (0.52) $ (0.55)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.16 $ 0.08 $ (0.75) $ 0.36 $ (0.39) $ 1.12
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.43 $ 7.27 $ 7.19 $ 7.94 $ 7.58 $ 7.97
================================================================================================================================
Total return* 4.99% 7.52% (4.26)% 11.24% 1.83% 25.15%
Ratio of net expenses to average net assets 0.88%** 0.90% 0.88% 0.89% 0.88% 0.90%
Ratio of net investment income (loss) to average net assets 5.51%** 5.97% 6.26% 6.25% 6.98% 7.08%
Portfolio turnover rate 49%** 55% 17% 54% 65% 15%
Net assets, end of period (in thousands) $245,852 $240,331 $250,163 $373,039 $378,883 $311,324
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.88%** 0.90% 0.88% 0.89% 0.88% 0.95%
Net investment income (loss) to average net assets 5.51%** 5.97% 6.26% 6.25% 6.98% 7.03%
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 29
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/15 Ended Ended Ended Ended Ended
(unaudited) 8/31/14 8/31/13 8/31/12 8/31/11 8/31/10
--------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 7.28 $ 7.19 $ 7.94 $ 7.58 $ 7.96 $ 6.83
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.17 $ 0.41 $ 0.46 $ 0.41 $ 0.47 $ 0.49
Net realized and unrealized gain (loss) on investments 0.16 0.07 (0.83) 0.35 (0.39) 1.12
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.33 $ 0.48 $ (0.37) $ 0.76 $ 0.08 $ 1.61
--------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.17) $ (0.39) $ (0.38) $ (0.40) $ (0.46) $ (0.48)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.16 $ 0.09 $ (0.75) $ 0.36 $ (0.38) $ 1.13
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.44 $ 7.28 $ 7.19 $ 7.94 $ 7.58 $ 7.96
================================================================================================================================
Total return* 4.59% 6.85% (4.98)% 10.42% 1.19% 24.11%
Ratio of Total expenses to average net assets 1.63%** 1.66% 1.63% 1.63% 1.63% 1.69%
Ratio of net investment income (loss) to average net assets 4.76%** 5.23% 5.53% 5.50% 6.24% 6.31%
Portfolio turnover rate 49%** 55% 17% 54% 65% 15%
Net assets, end of period (in thousands) $153,517 $149,453 $195,290 $265,448 $244,848 $184,068
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
30 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/15 Ended Ended Ended Ended Ended
(unaudited) 8/31/14 8/31/13 8/31/12 8/31/11 8/31/10
--------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 7.18 $ 7.10 $ 7.84 $ 7.49 $ 7.88 $ 6.80
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.19 $ 0.46 $ 0.53 $ 0.48 $ 0.53 $ 0.57
Net realized and unrealized gain (loss) on investments 0.17 0.07 (0.82) 0.33 (0.39) 1.08
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.36 $ 0.53 $ (0.29) $ 0.81 $ 0.14 $ 1.65
--------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.20) $ (0.45) $ (0.45) $ (0.46) $ (0.53) $ (0.56)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.16 $ 0.08 $ (0.74) $ 0.35 $ (0.39) $ 1.09
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.34 $ 7.18 $ 7.10 $ 7.84 $ 7.49 $ 7.88
================================================================================================================================
Total return* 5.11% 7.69% (4.05)% 11.43% 2.02% 24.73%
Ratio of Total expenses to average net assets 0.71%** 0.71% 0.72% 0.67% 0.67% 0.67%
Ratio of net investment income (loss) to average net assets 5.69%** 6.17% 6.40% 6.46% 7.21% 7.32%
Portfolio turnover rate 49%** 55% 17% 54% 65% 15%
Net assets, end of period (in thousands) $120,076 $100,199 $119,658 $176,664 $198,089 $77,757
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 31
Notes to Financial Statements | 2/28/15 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer High Income Municipal Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as an open-end management
investment company. The Fund is non-diversified. The investment objective of the
Fund is to maximize total return through a combination of income that is exempt
from regular federal income tax and capital appreciation.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board 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:
32 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
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.
Cash may include overnight time deposits at approved financial institutions.
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.
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.
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.
At February 28, 2015, there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services or broker-dealers).
B. Investment Income and Transactions
Discount and premium on purchase prices of debt securities are accreted or
amortized, respectively, daily into interest income on a yield-to-maturity
basis with a corresponding increase or decrease in the cost basis of the
security. Interest income is recorded on the accrual basis.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 33
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
C. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of August 31, 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.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
during the year ended August 31, 2014 was as follows:
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $28,444,745
Ordinary income 1,328,623
----------------------------------------------------------------------------
Total $29,773,368
============================================================================
The following shows the components of distributable earnings on a federal
income tax-basis at August 31, 2014:
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 8,677,221
Capital loss carryforward (53,648,201)
Dividend payable (551,552)
Net unrealized depreciation (5,443,840)
----------------------------------------------------------------------------
Total $(50,966,372)
============================================================================
34 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
The difference between book-basis and tax-basis net unrealized depreciation
is attributable to adjustments related to interest on defaulted bonds, the
tax treatment of premium and amortization and tax-basis adjustments on
partnerships.
D. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $33,791 in underwriting commissions on the sale of Class A shares
during the six months ended February 28, 2015.
E. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the 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.
F. 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 prospectus contains
unaudited information regarding the Fund's principal risks. Please refer to
that document when considering the Fund's principal risks.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 35
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate equal to
0.50% of the Fund's average daily net assets up to $500 million; 0.475% of the
next $500 million of the Fund's average daily net assets and 0.45% of the Fund's
average daily net assets over $1 billion. For the six months ended February 28,
2015, the effective management fee (excluding waivers and/or assumption of
expenses) was equivalent to 0.50% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses (excluding
taxes, commissions, interest and extraordinary expenses) of the Fund to the
extent required to reduce Fund expenses to 0.90% of the average daily net assets
attributable to Class A shares. Class C and Y shares do not have an expense
limitation. This expense limitation is in effect through January 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 to affiliates" reflected on the Statement of Assets and Liabilities is
$22,122 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 28, 2015.
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 six months ended February 28, 2015, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 42,273
Class C 30,786
Class Y 64,389
--------------------------------------------------------------------------------
Total $137,448
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $38,729 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2015.
36 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
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 $17,602 in distribution fees payable to
PFD at February 28, 2015.
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
six months ended February 28, 2015, CDSCs in the amount of $17,612 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 six months ended February 28, 2015, the Fund's
expenses were not reduced under such arrangements.
6. 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 as of February 11, 2015 is in the amount of $215
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
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 37
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 six months ended
February 28, 2015, the Fund had no borrowings under the credit facility.
7. Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Fund, with the approval and recommendation of the
Audit Committee, has appointed Deloitte & Touche LLP to serve as the Fund's
independent registered public accounting firm. Deloitte & Touche LLP replaced
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 August 31, 2013.
During the periods that Ernst & Young LLP served as the Fund's independent
registered public accounting firm, including the Fund's fiscal years ended
August 31, 2013 and August 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.
38 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer High Income Municipal Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in January 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.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 39
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.
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.
40 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
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
investment discipline and approach in the prevailing market conditions,
notwithstanding relatively poor peer comparisons of total return over the 1- and
3-year periods.
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 A shares was only four basis points higher than the median expense
ratio of its Morningstar peer group. The Trustees considered the impact of
transfer agency, sub-transfer agency, and other non-management fee expenses on
the expense ratios of the Fund, and noted the impact of expenses
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 41
relating to small accounts and omnibus accounts on transfer and sub-transfer
agency expenses generally. The Trustees noted that they separately review the
Fund's transfer agency, sub-transfer agency and intermediary arrangements.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Fund's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Fund is subject. The Trustees
also considered the different entrepreneurial risks associated with PIM's
management of the Fund and Pioneer's management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
42 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
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.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15 43
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
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.
* Ms. Monchak is a non-voting Advisory Trustee.
44 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/15
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 http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2015 Pioneer Investments 20563-08-0415
Pioneer Long/Short
Global Bond Fund
--------------------------------------------------------------------------------
Semiannual Report | February 28, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A LSGAX
Class C LSGCX
Class Y LSGYX
Note to shareholders: Effective June 1, 2015, the Fund will be
renamed Pioneer Long/Short Bond Fund.
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 30
Notes to Financial Statements 37
Approval of Investment Advisory Agreement 52
Trustees, Officers and Service Providers 57
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 1
President's Letter
Dear Shareowner,
Today's market environment presents numerous opportunities as well as challenges
for investors. A disparate global economic landscape has formed, with the U.S.
facing prospects for continued growth, while questions abound regarding the
outlook for other regions. Employment, household income, and corporate profits
have been rising in the U.S. and inflation pressures remain low. However, many
countries across Europe as well as Japan face muted growth. In addition, a
variety of factors have clouded the outlook for countries such as Russia and
Brazil and China's investment-driven economy continues to slow.
Monetary policies of major central banks are diverging, reflecting different
economic conditions. With the U.S. economy no longer in need of extraordinary
stimulus, the Federal Reserve Board may be closer to raising short-term interest
rates. Conversely, the European Central Bank and the Bank of Japan are likely to
be adding, not removing, stimulus.
While we anticipate continued growth for the U.S., the outlook is far from
certain, nor is the outlook for other regions necessarily dire. It remains to be
seen how weakness outside the U.S. will affect global growth and whether easing
monetary policies in other regions will spur an economic recovery.
While these economic conditions may lead to increasing volatility in 2015, we
believe the opportunity for investors to earn attractive returns will persist.
However, in an environment where interest rates remain low and equity valuations
have been buoyed by an extended bull market, we believe it is imperative
investors adhere to a disciplined investment approach that is consistent with
one's goals and objectives, being mindful of the tradeoff between risk and
return.
Since 1928 Pioneer's investment professionals have been focused on identifying
and capitalizing on investment opportunities that present themselves in a
variety of ever changing market conditions, including those we face today. We
seek returns consistent with our strategies' stated style and
2 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
objectives and consistent with our shareholders' expectations, regardless of
market conditions. We believe our shareowners benefit from the experience
and tenure of our investment teams, the insights generated from extensive
research resources and a commitment to prudent risk management that seeks
to mitigate downside and preserve returns over time.
We encourage you to work with your financial advisor to develop an overall
investment plan that addresses both your short- and long-term goals, and to
implement such a plan in a disciplined manner, as we do when deploying
strategies on behalf of our shareowners.
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 Long/Short Global Bond Fund | Semiannual Report | 2/28/15 3
Portfolio Management Discussion | 2/28/15
In the following interview, portfolio managers Thomas Swaney and Benjamin
Gord discuss the factors that influenced Pioneer Long/Short Global Bond
Fund's performance during the six-month period ended February 28, 2015, as
well as their investment approach in managing the Fund. Mr. Swaney, Head of
Alternative Fixed Income, U.S., a senior vice president, and a portfolio
manager at Pioneer (lead portfolio manager of the Fund since 2013), and Mr.
Gord, a vice president and a portfolio manager at Pioneer, are responsible
for the day-to-day management of the Fund.
Q How did the Fund perform during the six-month period ended February 28,
2015?
A Pioneer Long/Short Global Bond Fund's Class A shares returned 2.06% at net
asset value during the six-month period ended February 28, 2015, while the
Fund's benchmark, the Bank of America Merrill Lynch (BofA ML) 3-Month U.S.
Treasury-Bill Index, returned 0.01%. During the same period, the average
return of the 230 mutual funds in Lipper's Alternative Credit Focus Funds
category was -0.65%, and the average return of the 427 mutual funds in
Morningstar's Non-Traditional Bond Funds category was -0.25%.
Q Can you provide an overview of the Fund's investment approach?
A The big picture is that we seek to have the Fund produce an average annual
return that is greater than the return on 3-month Treasury bills, on an
annualized basis, with volatility that is about the same as that of the
broad fixed-income market. In pursuing this goal, we seek to have the Fund
provide positive returns over most trailing 12-month periods and to minimize
the extent of any negative returns, regardless of market conditions.
Obviously, if we are going to be successful in achieving our objective, the
Fund's returns cannot be overly dependent on the direction of one or more
financial asset categories. In seeking positive returns regardless of market
conditions, we utilize two distinct strategies. One strategy is
"directional," in that we need to be correct about whether a particular
asset price is poised to go up or down. However, we seek to have the Fund's
performance benefit from both positive and negative returns. This means that
at times we invest the portfolio in some asset categories within the broad
bond market by taking long positions, while speculating against other asset
classes by taking short positions.
The other part of the portfolio utilizes uncorrelated, relative-value-based
trading strategies, in which we do not have to take a stance on whether an
individual market is going to rise or fall overall. Instead, we need to
identify either a segment or security within a market that we believe will
outperform
4 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
versus another market segment or security. We execute these portfolio
investment strategies across several different global financial markets and
many different asset classes. We will seek to "pair" positions, meaning that
the Fund will have a long position in one segment/security of a particular
market, and a short position in another segment/security. We believe this
strategy can allow the Fund to benefit from favorable relative performance,
regardless of the overall direction of that market.
Most importantly, we closely track the risks we have assumed in both
portions of the portfolio. We operate within an overall "risk budget" for
the portfolio based on our objective of largely avoiding negative 12-month
returns.
Q Can you review the principal portfolio investment strategies you implemented
during the six-month period ended February 28, 2015? How did those
strategies help or hinder the Fund's performance?
A Let's look first at the relative value side of the portfolio, which seeks to
realize gains regardless of market direction. One relative value strategy we
used during the period was to seek to take advantage of the slope of the
yield curve for individual corporate bond issuers. For instance, the long-
term debt of companies with weaker balance sheets may react more strongly to
changes in business conditions than the short-term debt. Within this
strategy, a curve trade in retailer Radio Shack added to the Fund's
performance, while a curve trade in gaming company Caesars Entertainment
detracted. On the whole, the Fund's long/short curve trading strategies
added notably to returns over the six-month period.
Another strategy that added value to the Fund's returns during the period
was our utilization of credit index tranches. Such investments allow us to
efficiently accentuate the portfolio's exposure to index constituents that
tend to be more susceptible to overall changes in business conditions, while
shorting the overall market index. We also implemented pair trades, under
which we took opposing long and short positions in two issuers within the
same industry. We do this when we believe that the differing company
fundamentals are not reflected in their relative valuations. Our pair trades
were, on balance, modestly successful for the Fund during the six-month
period.
Another strategy we utilized during the period entailed arbitraging a
company's capital structure in anticipation of a divergence in performance.
(Arbitrage is defined as a trade that profits by exploiting price
differences of identical or similar financial instruments, on different
markets or in different forms, due to temporary inefficiencies in the
markets; this provides a mechanism to ensure prices do not deviate
substantially from fair value for long periods of time. Part of the
transaction could fail, and a sudden price movement may make it impossible
to close the trade at a
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 5
profit.) An example of arbitraging would be our buying the issuer's junior
subordinated bonds and selling short the issuer's senior secured bonds. Our
various capital arbitrage positions had mixed results for the Fund's
performance during the period.
Our management of the Fund's interest-rate exposures detracted modestly from
performance during the period as we kept the portfolio in a short-duration
stance in the United States at various points due to declines in longer-term
rates. (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 short-duration position was based on
our view that U.S. interest rates would rise as the Federal Reserve (the
Fed) solidified expectations for when it would begin to hike the benchmark
Federal funds rate. Unfortunately, the market remained sanguine with respect
to the interest-rate outlook and the yield curve flattened.
With regard to currency strategies during the period, we positioned the Fund
to benefit from the relative strengthening of the U.S. dollar. Specifically,
we went long the U.S. dollar while shorting the euro, the Japanese yen, the
Czech koruna, the Brazilian real and the Australian dollar. The currency
strategies added to the Fund's return during the period.
On the directional side of the portfolio, we will take long or short
positions in fixed-income markets and securities, based on our performance
outlook, while hedging out interest-rate risk. During the period, the Fund's
directional trading was challenged as market volatility spiked in late 2014.
We were cautious with respect to investments in credit-oriented markets, in
particular high-yield corporates, given the tightening in spreads that has
occurred (credit spreads are commonly defined as the differences in yield
between Treasuries and other types of fixed-income securities with similar
maturities). We did successfully take portfolio positions in corporate
bonds, including high-yield issues, on weakness at various points during the
six-month period. The Fund's performance benefited from long positions taken
in both commercial mortgage-backed (CMBS) and residential mortgage-backed
securities (RMBS), as the credit profiles of existing borrowers improved
along with the economic backdrop.
Finally, we took various thematic long/short positions, including those
based on U.S. dollar strength, weakness in infrastructure metal commodities,
a rebound in crude oil prices and a rise in short-term interest rates. Under
this approach, we will take opposite positions in two companies that we
believe could be affected differently by their exposures to a particular
theme (for instance, dollar strength). Our thematic long/short
6 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
trading strategies, on balance, detracted from the Fund's returns during the
period. In this vein, a long position in Hertz did not work opposite a short
position in United Rentals.
Q Could you discuss the use of derivative positions in the portfolio during
the six-month period ended February 28, 2015, and their effect on the Fund's
performance?
A Virtually all of the portfolio's strategies are implemented via derivatives,
and so the Fund's performance will always be affected by derivatives
trading. For instance, when we want to short U.S. Treasuries, we will do so
mainly by selling Treasury futures or sometimes by buying "put" options.
Similarly, in the currency sleeve of the Fund, we use forwards and options
to gain the desired exposures. With respect to credit markets, where there
are no liquid futures contracts, we may use credit default swaps to manage
the portfolio's exposures. In other situations, we utilize instruments such
as interest-rate or inflation swaps to implement our strategies.
Q What is your assessment of the current macroeconomic climate and the
opportunities it may present?
A We currently take a neutral position with respect to U.S. interest rates.
While we believe the Fed will be justified in raising rates given the
strength of the U.S. economy, weaker conditions overseas and investment
flows into the United States could keep expectations tempered with respect
to longer-term Treasury yields.
In general, asset valuations appear to be ahead of economic growth trends,
supported by zero-interest-rate policies from central banks around the
world. In this vein, credit spreads are tight by historical standards. At
the same time, corporate balance sheets are in good shape. Given this
backdrop, we see relatively few directional opportunities among fixed-income
markets. The CMBS and more credit-sensitive areas of the MBS sector appear
to be more attractively valued than corporate bonds.
The Fed's extraordinarily supportive policies have helped to underpin
conditions in recent years. While the beginning of Fed policy tightening is
anticipated to a large degree by the market, volatility and performance
dispersion could still increase as the speculation about increased rates
moves out of the realm of benign prospect and becomes a reality. Slowing
economic growth in China and the impact of oil prices on different countries
and sectors will also be closely monitored by investors.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 7
On balance, we expect an environment of heightened volatility across fixed-
income markets that could well provide opportunities for the Fund's relative
value strategies. We plan to focus on identifying investment opportunities
that emerge as market reactions overshoot developments on various
macroeconomic fronts.
Important note to shareholders: The Board of Trustees of the Fund has approved
the elimination of the Fund's current policy normally to invest at least 40% of
its net assets in securities of issuers located outside of the United States. In
connection with the elimination of this policy, the Fund will be renamed Pioneer
Long/Short Bond Fund. The changes are effective as of June 1, 2015.
Please refer to the Schedule of Investments on pages 17-28 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
The portfolio may invest in derivative securities, such as options, futures,
inverse floating-rate obligations, and swaps, among others, which can be
illiquid, may disproportionately increase losses, and have a potentially large
impact on the performance of the portfolio.
The Fund may take short positions, which involves leverage of its assets and
presents additional risks.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the Fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund employs leverage, which increases the volatility of investment returns
and subjects the Fund to magnified losses.
Investments in fixed-income securities involve interest rate, credit, inflation,
and reinvestment risks.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investments in high-yield or lower-rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
8 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The securities issued by U.S. Government sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
The 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.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund may invest in event-linked bonds and other insurance-linked securities.
The return of principal and the payment of interest on insurance-linked
securities are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude.
The Fund may invest in floating-rate loans; the value of collateral, if any,
securing a floating-rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
The Fund is subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
These risks may increase share price volatility.
There is no assurance that these and other strategies used by the Fund will be
successful. Please see the prospectus for a more complete discussion of the
Fund's risks.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 9
Portfolio Summary | 2/28/15
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 44.3%
Collateralized Mortgage Obligations 24.0%
Temporary Cash Investments 12.3%
U.S. Government Securities 4.4%
Mutual Fund 3.8%
Senior Secured Loans 3.3%
International Corporate Bonds 2.8%
Convertible Preferred Stocks 1.3%
Asset Backed Securities 1.1%
Convertible Corporate Bonds 0.9%
U.S. Corporate Bonds 0.9%
U.S. Preferred Stocks 0.9%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. United Kingdom Treasury Bill, 3/2/15 10.60%
----------------------------------------------------------------------------------------
2. United Kingdom Treasury Bill, 3/23/15 10.60
----------------------------------------------------------------------------------------
3. Canadian Treasury Bill, 3/26/15 5.69
----------------------------------------------------------------------------------------
4. Canadian Treasury Bill, 4/23/15 4.92
----------------------------------------------------------------------------------------
5. DoubleLine Opportunistic Credit Fund 4.39
----------------------------------------------------------------------------------------
6. Italy Buoni Ordinari del Tesoro BOT, 3/13/15 4.30
----------------------------------------------------------------------------------------
7. Canadian Treasury Bill, 4/9/15 4.03
----------------------------------------------------------------------------------------
8. JP Morgan Mortgage Trust 2014-1 REMICS, Floating Rate Note, 1/25/44 (144A) 3.84
----------------------------------------------------------------------------------------
9. Canadian Treasury Bill, 3/12/15 3.65
----------------------------------------------------------------------------------------
10. Sequoia Mortgage Trust 2013-7, Floating Rate Note, 6/25/43 3.57
----------------------------------------------------------------------------------------
* 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 Long/Short Global Bond Fund | Semiannual Report | 2/28/15
Prices and Distributions | 2/28/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/15 8/31/14
--------------------------------------------------------------------------------
A $ 10.04 $ 10.05
--------------------------------------------------------------------------------
C $ 10.00 $ 10.00
--------------------------------------------------------------------------------
Y $ 10.06 $ 10.07
--------------------------------------------------------------------------------
Distributions per Share: 9/1/14-2/28/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2127 $ -- $ --
--------------------------------------------------------------------------------
C $0.1634 $ -- $ --
--------------------------------------------------------------------------------
Y $0.2303 $ -- $ --
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bank of America Merrill Lynch (BofA ML) 3-Month US Treasury Bill Index is an
unmanaged market index of U.S. Treasury securities maturing in 90 days, that
assumes reinvestment of all income. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 12-14.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 11
Performance Update | 2/28/15 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Long/Short Global Bond Fund at
public offering price during the periods shown, compared to that of the Bank of
America Merrill Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
Net Public BofA ML
Asset Offering 3-Month
Value Price U.S. Treasury
Period (NAV) (POP) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 2.20% -1.75% 0.03%
1 Year 2.57 -2.03 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.83% 1.64%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month US
Global Bond Fund Treasury Bill Index
12/31/2013 $ 9,550 $ 10,000
2/28/2014 $ 9,551 $ 10,001
2/28/2015 $ 9,797 $ 10,004
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
Performance Update | 2/28/15 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Long/Short Global Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 1.43% 1.43% 0.03%
1 Year 1.77 1.77 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.57% 2.39%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month US
Global Bond Fund Treasury Bill Index
12/31/2013 $ 10,000 $ 10,000
2/28/2014 $ 9,990 $ 10,001
2/28/2015 $ 10,167 $ 10,004
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 13
Performance Update | 2/28/15 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Long/Short Global Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
Net BofA ML
Asset 3-Month
Value U.S. Treasury
Period (NAV) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 2.53% 0.03%
1 Year 2.95 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.57% 1.39%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Long/Short BofA ML 3-month US
Global Bond Fund Treasury Bill Index
12/31/2013 $ 5,000,000 $ 5,000,000
2/28/2014 $ 5,000,000 $ 5,000,363
2/28/2015 $ 5,147,724 $ 5,001,901
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
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 Long/Short Global Bond Fund
Based on actual returns from September 1, 2014, through February 28, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 9/1/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,020.60 $1,016.70 $1,022.40
on 2/28/15
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 8.07 $ 11.80 $ 6.82
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratio of the underlying funds. These combined totals were 1.61%, 2.36%, and
1.36% for Class A, Class C and Class Y shares, respectively. These combined
ratios were multiplied by the average account value over the period, and
then multiplied by 181/365 (to reflect the one-half year period).
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Long/Short Global Bond Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2014, through February 28, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 9/1/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,016.81 $1,013.09 $1,018.05
on 2/28/15
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 8.05 $ 11.78 $ 6.80
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratio of the underlying funds. These combined totals were 1.61%, 2.36%, and
1.36% for Class A, Class C and Class Y shares, respectively. These combined
ratios were multiplied by the average account value over the period, and
then multiplied by 181/365 (to reflect the one-half year period).
16 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
Schedule of Investments | 2/28/15 (unaudited)
----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
----------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 1.1%
CAPITAL GOODS -- 1.1%
Construction & Farm Machinery &
Heavy Trucks -- 1.1%
185,000 Trinity Industries, Inc., 3.875%, 6/1/36 $ 275,766
---------------
Total Capital Goods $ 275,766
----------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $276,280) $ 275,766
----------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 1.0%
BANKS -- 1.0%
Diversified Banks -- 1.0%
320,000 1.20 JPMorgan Chase Capital XXI, Floating Rate Note,
1/15/87 $ 264,800
---------------
Total Banks $ 264,800
----------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $260,276) $ 264,800
----------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.9%
BANKS -- 0.9%
Diversified Banks -- 0.9%
200 Bank of America Corp., 7.25% (Perpetual) $ 234,000
---------------
Total Banks $ 234,000
----------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $229,386) $ 234,000
----------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 1.2%
BANKS -- 0.9%
Thrifts & Mortgage Finance -- 0.9%
49,352 CAM Mortgage Trust 2014-1, 5.5%, 12/15/53
(Step) (144A) $ 49,400
41,669 1.47 First Franklin Mortgage Loan Trust 2003-FFC, Floating
Rate Note, 11/25/32 39,701
42,911 Icon Brand Holdings LLC, 4.229%, 1/26/43 (144A) 42,785
32,574 3.17 Irwin Whole Loan Home Equity Trust 2003-C, Floating
Rate Note, 6/25/28 32,564
58,207 5.47 New Century Home Equity Loan Trust, Floating Rate
Note, 8/25/34 60,130
---------------
$ 224,580
---------------
Total Banks $ 224,580
----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.3%
Other Diversified Financial Services -- 0.3%
90,000 TAL Advantage V LLC, 4.1%, 2/22/39 $ 89,370
---------------
Total Diversified Financials $ 89,370
----------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $314,604) $ 313,950
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 17
Schedule of Investments | 2/28/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
----------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 25.9%
BANKS -- 25.9%
Thrifts & Mortgage Finance -- 25.9%
300,000 1.13 Alternative Loan Trust 2005-J4, Floating Rate Note,
7/25/35 $ 269,070
185,000 2.70 BAMLL Commercial Mortgage Securities Trust
2014-INLD, Floating Rate Note, 12/17/29 (144A) 167,554
47,858 1.17 Bayview Commercial Asset Trust 2004-3, Floating Rate
Note, 1/25/35 (144A) 44,062
100,000 Bear Stearns Commercial Mortgage Securities Trust
2006-PWR14, 5.273%, 12/11/38 101,737
115,000 2.76 Carefree Portfolio Trust 2014-CARE, Floating Rate Note,
11/15/29 (144A) 106,210
3,777 Citicorp Mortgage Securities REMIC Pass-Through
Certificates Trust Series 2005-3, 5.5%, 4/25/35 3,778
175,000 5.57 COBALT Commercial Mortgage Trust 2007-C2, Floating
Rate Note, 4/15/47 (144A) 178,474
175,000 COMM 2006-C8 Mortgage Trust, 5.377%, 12/10/46 177,479
175,000 5.23 Credit Suisse First Boston Mortgage Securities Corp.,
Floating Rate Note, 12/17/40 176,124
175,000 3.27 CSMC Trust 2014-SURF, Floating Rate Note, 2/15/29
(144A) 174,778
110,000 GAHR Commercial Mortgage Trust 2015-NRF,
3.38216%, 12/15/19 (144A) 103,139
200,000 JP Morgan Chase Commercial Mortgage Securities
Trust 2006-CIBC16, 5.623%, 5/12/45 204,270
100,000 3.51 JP Morgan Chase Commercial Mortgage Securities
Trust 2013-FL3, Floating Rate Note, 4/17/28 (144A) 100,001
929,518 3.50 JP Morgan Mortgage Trust 2014-1 REMICS, Floating
Rate Note, 1/25/44 (144A) 954,994
813,323 3.97 JP Morgan Mortgage Trust 2014-1 REMICS, Floating
Rate Note, 1/25/44 (144A) 853,291
125,000 5.27 LB-UBS Commercial Mortgage Trust 2005-C2, Floating
Rate Note, 4/15/40 125,242
150,000 5.28 LB-UBS Commercial Mortgage Trust 2006-C1, Floating
Rate Note, 2/15/41 152,182
55,000 5.48 ML-CFC Commercial Mortgage Trust 2006-3, Floating
Rate Note, 7/12/46 56,128
6,239 0.95 Nomura Asset Acceptance Corp Alternative Loan Trust
Series 2004-AR2, Floating Rate Note, 10/25/34 6,215
695,133 3.50 Sequoia Mortgage Trust 2012-3, Floating Rate Note,
7/25/42 709,823
720,252 3.00 Sequoia Mortgage Trust 2013-6, Floating Rate Note,
5/26/43 710,292
901,084 3.00 Sequoia Mortgage Trust 2013-7, Floating Rate Note,
6/25/43 888,624
The accompanying notes are an integral part of these financial statements.
18 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
----------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
250,000 5.36 Wachovia Bank Commercial Mortgage Trust Series
2005-C22, Floating Rate Note, 12/15/44 $ 253,348
100,000 5.95 Wachovia Bank Commercial Mortgage Trust Series
2007-C34, Floating Rate Note, 5/15/46 103,823
200,000 3.67 Wells Fargo Commercial Mortgage Trust 2014-TISH,
Floating Rate Note, 1/15/27 (144A) 197,268
---------------
$ 6,817,906
---------------
Total Banks $ 6,817,906
----------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $6,637,318) $ 6,817,906
----------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 4.1%
DIVERSIFIED FINANCIALS -- 0.2%
Other Diversified Financial Services -- 0.2%
INR 3,700,000 European Bank for Reconstruction & Development,
6.0%, 3/3/16 $ 59,784
---------------
Total Diversified Financials $ 59,784
----------------------------------------------------------------------------------------------------------
INSURANCE -- 3.9%
Reinsurance -- 3.9%
250,000 6.87 Caelus Re, Ltd., Floating Rate Note, 4/7/17 (Cat
Bond) (144A) $ 260,900
250,000 4.15 Kilimanjaro Re, Ltd., Floating Rate Note, 4/30/18
(Cat Bond) (144A) 251,750
250,000 8.51 Mythen Re, Ltd., Floating Rate Note, 5/7/15 (Cat
Bond) (144A) 252,575
250,000 4.52 Residential Reinsurance 2012, Ltd., Floating Rate
Note, 12/6/16 (Cat Bond) (144A) 256,200
---------------
$ 1,021,425
---------------
Total Insurance $ 1,021,425
----------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $1,076,470) $ 1,081,209
----------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 4.8%
140,000 U.S. Treasury Bills, 3/5/15 (c) $ 140,000
835,000 U.S. Treasury Bills, 4/9/15 (c) 834,985
50,000 0.07 U.S. Treasury Note, Floating Rate Note, 1/31/16 49,999
125,000 0.09 U.S. Treasury Note, Floating Rate Note, 4/30/16 125,013
125,000 0.09 U.S. Treasury Note, Floating Rate Note, 7/31/16 124,993
----------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $1,275,045) $ 1,274,990
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 19
Schedule of Investments | 2/28/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
----------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 47.9%
CAD 1,136,000 Canadian Treasury Bill, 3/12/15 (c) $ 907,611
CAD 1,773,000 Canadian Treasury Bill, 3/26/15 (c) 1,416,232
CAD 1,535,000 Canadian Treasury Bill, 4/23/15 (c) 1,225,571
CAD 1,255,000 Canadian Treasury Bill, 4/9/15 (c) 1,002,275
EURO 957,000 Italy Buoni Ordinari del Tesoro BOT, 3/13/15 (c) 1,070,836
EURO 545,000 Spain Letras del Tesoro, 4/10/15 (c) 609,808
EURO 665,000 Spain Letras del Tesoro, 5/15/15 (c) 744,013
GBP 1,710,000 United Kingdom Treasury Bill, 3/2/15 (c) 2,639,385
GBP 1,710,000 United Kingdom Treasury Bill, 3/23/15 (c) 2,638,759
GBP 225,000 United Kingdom Treasury Bill, 3/9/15 (c) 347,260
----------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $12,669,773) $ 12,601,750
----------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 3.6%**
ENERGY -- 0.8%
Oil & Gas Equipment & Services -- 0.5%
98,998 3.88 Fieldwood Energy LLC, Closing Date Loan, 9/25/18 $ 94,976
49,500 5.75 FR Dixie Acquisition Corp., Term Loan, 1/23/21 41,332
---------------
$ 136,308
----------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.3%
99,000 4.00 Seadrill Operating LP, Initial Term Loan, 2/14/21 $ 80,349
---------------
Total Energy $ 216,657
----------------------------------------------------------------------------------------------------------
MATERIALS -- 0.7%
Commodity Chemicals -- 0.1%
29,700 5.00 Nexeo Solutions LLC, Term Loan B3, 9/9/17 $ 29,069
----------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.2%
49,485 5.00 Univar, Term B Loan, 2/14/17 $ 49,238
----------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.3%
25,000 8.00 Caraustar Industries, Inc., Incremental Term Loan,
6.75%, 5/1/19 $ 24,500
49,500 5.25 Coveris Holdings SA, USD Term Loan, 4/14/19 49,778
---------------
$ 74,278
----------------------------------------------------------------------------------------------------------
Steel -- 0.1%
34,825 4.50 Atkore International, Inc., Term Loan (First Lien),
3/27/21 $ 33,780
---------------
Total Materials $ 186,365
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
----------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.3%
Aerospace & Defense -- 0.3%
33,770 6.25 DynCorp International, Inc., Term Loan, 7/7/16 $ 33,616
24,937 6.50 TASC, Inc., First Lien Term Loan, 2/28/17 25,228
24,375 3.25 Wesco Aircraft Hardare Corp., Tranche B Term Loan
(First Lien), 2/24/21 24,030
---------------
$ 82,874
---------------
Total Capital Goods $ 82,874
----------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.4%
Trucking -- 0.4%
49,750 5.50 Aegis Toxicology Corp., Tranche B Term Loan (First
Lien), 2/20/21 $ 49,999
49,500 8.25 YRC Worldwide, Inc., Initial Term Loan, 2/12/19 49,252
---------------
$ 99,251
---------------
Total Transportation $ 99,251
----------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.1%
Auto Parts & Equipment -- 0.1%
29,850 4.00 Cooper Standard Intermediate Holdco 2 LLC, Term
Loan, 3/28/21 $ 29,742
---------------
Total Automobiles & Components $ 29,742
----------------------------------------------------------------------------------------------------------
MEDIA -- 0.2%
Broadcasting -- 0.1%
23,485 3.00 CBS Outdoor Americas Capital llc, Tranche B Term
Loan (First Lien), 1/15/21 $ 23,371
----------------------------------------------------------------------------------------------------------
Publishing -- 0.1%
25,000 7.00 Cengage Learning Acquisitions Inc., Term Loan, 3/6/20 $ 25,025
---------------
Total Media $ 48,396
----------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.4%
Personal Products -- 0.4%
75,000 7.75 Atrium Innovations, Inc., Tranche B Term Loan (Second
Lien), 7/29/21 $ 69,567
36,630 4.00 Party City Holdings, Inc., 2014 Replacement Term
Loan, 7/27/19 36,447
---------------
$ 106,014
---------------
Total Household & Personal Products $ 106,014
----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.4%
Other Diversified Financial Services -- 0.2%
34,738 4.50 Nord Anglia Education, Initial Term Loan, 3/31/21 $ 34,651
24,813 5.00 SBP Holdings, Ltd., Term Loan (First Lien), 3/24/21 21,773
---------------
$ 56,424
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 21
Schedule of Investments | 2/28/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
----------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.2%
34,738 4.00 Trans Union LLC, 2014 Replacement Term Loan,
4/9/21 $ 34,672
---------------
Total Diversified Financials $ 91,096
----------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.1%
Semiconductor Equipment -- 0.1%
35,552 3.50 Emtegris, Inc., Term Loan B, 3/25/21 $ 35,330
---------------
Total Semiconductors & Semiconductor Equipment $ 35,330
----------------------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Electric Utilities -- 0.2%
45,125 4.75 Atlantic Power LP, Term Loan, 2/20/21 $ 45,350
---------------
Total Utilities $ 45,350
----------------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTERESTS
(Cost $979,345) $ 941,075
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
Shares
----------------------------------------------------------------------------------------------------------
MUTUAL FUND -- 4.2%
42,432 DoubleLine Opportunistic Credit Fund $ 1,093,897
----------------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUND
(Cost $1,075,146) $ 1,093,897
----------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 13.3%
REPURCHASE AGREEMENTS -- 13.3%
3,505,000 RBC Capital Markets LLC, 0.08%, dated 2/28/15,
repurchase price of $3,505,000, plus accrued
interest on 3/2/15, collateralized by the following:
$1,191,264 Federal National Mortgage Association,
3-4%, 7/1/28- 10/1/42
$858,009 Federal National Mortgage Association
(ARM), 2.28%, 7/1/39
$1,525,828 Federal Home Loan Mortgage Corp.,
2.699%, 11/1/44 $ 3,505,000
----------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $3,505,000) $ 3,505,000
----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 108.0%
(Cost $28,298,643) (a) $ 28,404,343
----------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- (8.0)% $ (2,106,952)
----------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 26,297,391
==========================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
(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.
(Perpetual) Security with no stated maturity date.
(Step) Bond issued with an initial coupon rate which converts to a higher
rate at a later date.
REMICS Real Estate Mortgage Investment Conduits.
** 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 certificate of deposit rate 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 February 28, 2015, the value of these securities
amounted to $3,993,381 or 15.2% of total net assets.
(a) At February 28, 2015, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $28,301,718 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 286,791
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (184,166)
---------
Net unrealized appreciation $ 102,625
=========
(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.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
CAD Canadian Dollar
EURO Euro
GBP British Pound Sterling
INR Indian Rupee
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 28, 2015 aggregated $8,502,204 and $10,773,612,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 23
Schedule of Investments | 2/28/15 (unaudited) (continued)
CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
-------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Received Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Paid) (Depreciation)
-------------------------------------------------------------------------------------------------------
(749,700) Citibank NA Markit CDX North 5.00% 12/20/18 $(148,441) $ 14,498
America High
Yield Index
(250,000) Morgan Radioshack Corp. 5.00% 6/20/17 123,750 66,498
Stanley & Co.
International
plc
(250,000) Citibank NA JPMorgan Chase 1.00% 3/20/20 (3,780) (1,110)
& Co.
(125,000) J.P. Morgan Bank of America 1.00% 3/20/20 (1,525) (794)
Securities LLC Corp.
-------------------------------------------------------------------------------------------------------
$ (29,996) $79,092
=======================================================================================================
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
-------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Received Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Paid) (Depreciation)
-------------------------------------------------------------------------------------------------------
EUR (1,375,000) Intercontinental Markit iTraxx Europe 5.00% 6/20/19 $(200,148) $(31,193)
Exchange Crossover Index
(5,010,000) Chicago Markit CDX North 1.00% 12/20/19 (85,995) (13,043)
Mercantile America Investment
Exchange Grade Index
(1,515,750) Chicago Markit CDX North 5.00% 12/20/16 (90,339) (2,792)
Mercantile America High
Exchange Yield Index
-------------------------------------------------------------------------------------------------------
$(376,482) $(47,028)
=======================================================================================================
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
The accompanying notes are an integral part of these financial statements.
24 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
--------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Received Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Paid) (Depreciation)
--------------------------------------------------------------------------------------------------------------------
EUR 250,000 Barclays Bank Norske 5.00% CCC- 12/20/15 $ (52,243) $ 43,776
Plc Skogindustrier ASA
645,000 Citibank NA Markit CDX 5.00% BBB+ 12/20/17 (31,605) 6,942
North America
Investment
Grade Index
250,000 Citibank NA Parker Drilling Co. 5.00% B+ 3/20/20 (17,500) 2,439
250,000 Citibank NA Transocean Inc. 1.00% BBB- 3/20/20 (57,065) (35)
EUR 375,000 Citibank NA Markit iTraxx 5.00% BB 6/20/15 (5,154) 10,736
Europe Index
EUR 1,250,000 Citibank NA Markit iTraxx 1.00% BBB+ 6/20/19 (108,271) 68,609
Europe Index
250,000 Citibank NA MBIA, Inc. 5.00% A- 3/20/15 (625) 2,609
250,000 Citibank NA Travelport LLC 5.00% NR 3/20/15 -- 2,770
250,000 Citibank NA Sears Roebuck
Acceptance Corp. 5.00% CCC+ 3/20/15 (16,250) 16,146
300,000 Goldman Sach Claire's Stores 5.00% CCC 12/20/15 (12,000) (25,905)
International Inc.
300,000 Goldman Sach Toys R Us Inc. 5.00% CCC 12/20/15 (10,500) 4,750
International
525,000 Goldman Sach Sears Roebuck 5.00% CCC+ 12/20/15 (21,000) 10,282
International Acceptance Corp.
525,000 Goldman Sach iHeart Media, 5.00% CCC- 12/20/15 (14,437) 19,180
International Inc.
260,000 Goldman Sach Hertz Corp. 5.00% B 3/20/20 6,096 16,588
International
EUR 250,000 Goldman Sach Altice Finco SA 5.00% B- 3/20/20 (5,258) 30,451
International
EUR 250,000 JP Morgan Norske 5.00% CCC- 12/20/15 (50,506) 42,039
Chase Bank Skogindustrier ASA
NA
EUR 400,000 JP Morgan Abengoa SA 5.00% B 12/20/15 (31,981) 31,757
Chase Bank
NA
EUR 400,000 JP Morgan Abengoa SA 5.00% B 3/20/20 (117,166) 62,127
Chase Bank
NA
500,000 JP Morgan Williams 1.00% BB+ 3/20/20 (25,041) 338
Chase Bank Companies Inc.
NA
EUR 250,000 JP Morgan Norske 5.00% CCC- 3/20/15 (20,417) 21,017
Chase Bank Skogindustrier ASA
NA
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 25
Schedule of Investments | 2/28/15 (unaudited) (continued)
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION (continued)
-------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Received Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Paid) (Depreciation)
-------------------------------------------------------------------------------------------------------------------
400,000 Morgan Markit CDX 5.00% BBB+ 12/20/17 $ (14,500) $ (795)
Stanley & Co. North America
International Investment
plc Grade Index
525,000 Morgan JC Penny 5.00% CCC- 12/20/16 (15,750) 25,637
Stanley & Co. Corp., Inc.
International
plc
250,000 Morgan MBIA, Inc. 5.00% A- 12/20/15 (3,125) 12,853
Stanley & Co.
International
plc
250,000 Morgan Weatherford 1.00% BBB- 3/20/20 (32,565) 7,947
Stanley & Co. International
International Ltd.
plc
500,000 Morgan Diamond 1.00% A- 3/20/20 (63,792) 7,436
Stanley & Co. Offshore Drill
International
plc
250,000 Morgan Apache Corp. 1.00% A- 3/20/20 (14,039) 12,085
Stanley & Co.
International
plc
500,000 Morgan Nabors 1.00% BBB 3/20/20 (60,500) 473
Stanley & Co. Industries Inc.
International
plc
250,000 Morgan Canadian 1.00% BBB+ 3/20/20 (5,264) 101
Stanley & Co. Natural
International Resources Ltd.
plc
500,000 Morgan Energy Transfer 1.00% BBB- 3/20/20 (18,003) 3,512
Stanley & Co. Partners LP
International
plc
250,000 Morgan Noble Holding 1.00% BBB 3/20/20 (31,187) (1,432)
Stanley & Co. International Ltd.
International
plc
250,000 Morgan Weatherford 1.00% BBB- 3/20/20 (28,843) 4,240
Stanley & Co. International
International Ltd.
plc
The accompanying notes are an integral part of these financial statements.
26 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION (continued)
-------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Received Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Paid) (Depreciation)
-------------------------------------------------------------------------------------------------------------------
250,000 Morgan Sabine Oil & 5.00% CCC 3/20/15 $ (3,750) $ 1,991
Stanley & Co. Gas Corp.
International
plc
125,000 Morgan Sears Roebuck 5.00% CCC+ 3/20/15 (5,625) 5,573
Stanley & Co. Acceptance Corp.
International
plc
-------------------------------------------------------------------------------------------------------------------
$(887,866) $ 446,237
===================================================================================================================
(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 or the issuer of the weighted average
rating of all the underlying securities of the index.
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
INTEREST RATE SWAP AGREEMENTS
------------------------------------------------------------------------------------------------------------
Net
Annual Premiums Unrealized
Notional Pay / Floating Fixed Expiration Received Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Paid) (Depreciation)
------------------------------------------------------------------------------------------------------------
478,734 Chicago Receive LIBOR USD 1.819% 8/7/19 $ 2 $ (5,618)
Mercantile 3 Month
Exchange
1,664,879 Chicago Receive LIBOR USD 2.660% 8/7/24 13 (85,437)
Mercantile 3 Month
Exchange
2,959,079 Chicago Receive LIBOR USD 2.624% 2/12/25 13 3,731
Mercantile 3 Month
Exchange
3,026,292 Chicago Receive LIBOR USD 2.808% 2/19/25 14 (19,931)
Mercantile 3 Month
Exchange
------------------------------------------------------------------------------------------------------------
$ 42 $ (107,255)
============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 27
Schedule of Investments | 2/28/15 (unaudited) (continued)
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
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 February 28, 2015, in
valuing the Fund's assets:
-----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 275,766 $ -- $ 275,766
Preferred Stocks -- 264,800 -- 264,800
Convertible Preferred Stocks 234,000 -- -- 234,000
Asset Backed Securities -- 313,950 -- 313,950
Collateralized Mortgage
Obligations -- 6,817,906 -- 6,817,906
Corporate Bonds -- 1,081,209 -- 1,081,209
U.S. Government and
Agency Obligations -- 1,274,990 -- 1,274,990
Foreign Government Bonds -- 12,601,750 -- 12,601,750
Senior Floating Rate Loan Interests -- 941,075 -- 941,075
Mutual Fund 1,093,897 -- -- 1,093,897
Repurchase Agreements -- 3,505,000 -- 3,505,000
-----------------------------------------------------------------------------------------
Total $ 1,327,897 $27,076,446 $ -- $28,404,343
=========================================================================================
Other Financial Instruments
Net Unrealized Appreciation on
Credit Default Swaps $ -- $ 525,329 $ -- $ 525,329
Net Unrealized Depreciation on
Centrally Cleared Credit
Default Swaps -- (47,028) -- (47,028)
Net Unrealized Depreciation on
Interest Rate Swaps -- (107,255) -- (107,255)
Net Unrealized Depreciation on
Futures Contracts (1,891) -- -- (1,891)
Net Unrealized Appreciation on
Forward Foreign
Currency Contracts -- 107,294 -- 107,294
Net Unrealized Depreciation on
Forward Foreign
Currency Contracts -- (17,629) -- (17,629)
-----------------------------------------------------------------------------------------
Total Other Financial Instruments $ (1,891) $ 460,711 $ -- $ 458,820
=========================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
Transfers are calculated based on beginning period values. During the six months
ended February 28, 2015, there were no transfers between Levels 1, 2 and 3.
The following is a summary of the fair valuation of certain Portfolio's assets
as of February 28, 2015:
-----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------
Assets:
Futures collateral $174,997 $ -- $ -- $ 174,997
Centrally cleared swap collateral -- 513,330 -- 513,330
Foreign currencies -- 276,295 -- 276,295
Liabilities:
Variation margin for futures
contracts 5,385 -- -- 5,385
Variation margin for centrally
cleared swap contracts -- 2,744 -- 2,744
-----------------------------------------------------------------------------------------
Total $180,382 $ 792,369 $ -- $ 972,751
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 29
Statement of Assets and Liabilities | 2/28/15 (unaudited)
ASSETS:
Investment in securities (cost $24,793,643) $24,899,343
Repurchase agreements (cost $3,505,000) 3,505,000
-----------------------------------------------------------------------------------------
Total investment in securities (cost $28,298,643) 28,404,343
Futures collateral 174,997
Centrally cleared swap collateral 513,330
Foreign currencies, at value (cost $276,462) 276,295
Receivables --
Investment securities sold 705,990
Swap payments 65,361
Dividends 12,484
Interest 38,868
Due from Pioneer Investment Management, Inc. 26,580
Net unrealized appreciation on forward foreign currency contracts 107,294
Net unrealized appreciation on swap contracts 559,131
Other assets 56,036
-----------------------------------------------------------------------------------------
Total assets $30,940,709
=========================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 2,829,947
Trustee fees 1,127
Variation margin for futures contracts 5,385
Variation margin for centrally cleared swap contracts 2,744
Due to custodian 215,221
Net unrealized depreciation on forward foreign currency contracts 17,629
Net unrealized depreciation on swap contracts 141,057
Net unrealized depreciation on centrally cleared swap contracts 47,028
Net unrealized depreciation on futures contracts 1,891
Swap contracts, net premiums received 1,294,302
Due to affiliates 24,219
Accrued expenses 62,768
-----------------------------------------------------------------------------------------
Total liabilities $ 4,643,318
=========================================================================================
NET ASSETS:
Paid-in capital $26,194,439
Distributions in excess of net investment income (489,620)
Accumulated net realized gain on investments, futures contracts,
written swaptions, swap contracts, and foreign currency transactions 28,052
Net unrealized appreciation on investments 105,700
Net unrealized depreciation on futures contracts (1,891)
Net unrealized appreciation on swap contracts 371,046
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 89,665
-----------------------------------------------------------------------------------------
Total net assets $26,297,391
=========================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $8,861,685/882,339 shares) $ 10.04
Class C (based on $8,744,694/874,039 shares) $ 10.00
Class Y (based on $8,691,012/864,340 shares) $ 10.06
MAXIMUM OFFERING PRICE:
Class A ($10.04/95.5%) $ 10.51
=========================================================================================
The accompanying notes are an integral part of these financial statements.
30 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
Statement of Operations (unaudited)
For the Six Months Ended 2/28/15
INVESTMENT INCOME:
Dividends $ 111,337
Interest 150,239
--------------------------------------------------------------------------------------------------------
Total investment income $ 261,576
--------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 133,843
Distribution fees
Class A 10,727
Class C 42,328
Transfer Agent fees
Class A 344
Class C 176
Class Y 134
Shareholder communications expense 887
Administrative reimbursement 11,129
Custodian fees 22,319
Registration fees 29,271
Professional fees 42,812
Printing fees 11,268
Pricing fees 4,676
Fees and expenses of nonaffiliated Trustees 2,999
Miscellaneous 14,515
--------------------------------------------------------------------------------------------------------
Total expenses $ 327,428
--------------------------------------------------------------------------------------------------------
Less fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (108,663)
--------------------------------------------------------------------------------------------------------
Net expenses $ 218,765
--------------------------------------------------------------------------------------------------------
Net investment income $ 42,811
--------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS, WRITTEN OPTIONS, WRITTEN SWAPTIONS,
SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (1,356,636)
Futures contracts (308,391)
Written options 5,296
Written swaptions 4,625
Swap contracts (3,264)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 2,070,711 $ 412,341
--------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 47,022
Futures contracts 50,673
Written swaptions (38,043)
Swap contracts 402,173
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (426,894) $ 34,931
--------------------------------------------------------------------------------------------------------
Net gain on investments, futures contracts, written options, written
swaptions, swap contracts, and foreign currency transactions $ 447,272
--------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 490,083
========================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 31
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------------
Six Months
Ended 2/28/15 12/30/13 (a)
(unaudited) to 8/31/14
--------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 42,811 $ (74,108)
Net realized gain (loss) on investments, futures contracts, written
options, written swaptions, swap contracts, and foreign
currency transactions 412,341 (351,336)
Change in net unrealized appreciation (depreciation) on
investments, futures contracts, written swaptions, swap
contracts, and foreign currency transactions 34,931 529,589
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 490,083 $ 104,145
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.21 and $0.00 per share, respectively) $ (183,685) $ --
Class C ($0.16 and $0.00 per share, respectively) (139,321) --
Class Y ($0.23 and $0.00 per share, respectively) (194,215) --
--------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (517,221) $ --
--------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS: (b)
Net proceeds from sale of shares $ 705,142 $ 25,393,752
Reinvestment of distributions 194,215 --
Cost of shares repurchased (72,713) (12)
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 826,644 $ 25,393,740
--------------------------------------------------------------------------------------------------
Net increase in net assets $ 799,506 $ 25,497,885
NET ASSETS:
Beginning of period $25,497,885 $ --
--------------------------------------------------------------------------------------------------
End of period $26,297,391 $ 25,497,885
--------------------------------------------------------------------------------------------------
Undistributed (distributions in excess) of net investment income $ (489,620) $ (15,210)
==================================================================================================
(a) Class A, Class C and Class Y shares commenced operations on December 30,
2013.
(b) At February 28, 2015, PIM owned 95.1% of the value of the outstanding shares
of Pioneer Long/Short Global Bond Fund.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
---------------------------------------------------------------------------------------
'15 Shares '15 Amount
(unaudited) (unaudited) '14 Shares '14 Amount
---------------------------------------------------------------------------------------
Class A*
Shares sold 13,200 $ 139,738 855,960 $8,559,806
Reinvestment of distributions 18,673 -- -- --
Less shares repurchased (5,493) (55,086) (1) (12)
---------------------------------------------------------------------------------------
Net increase 26,380 $ 268,395 855,959 $8,559,794
=======================================================================================
Class C*
Shares sold 21,342 $ 219,936 839,743 $8,397,613
Reinvestment of distributions 14,202 -- -- --
Less shares repurchased (1,248) (12,299) -- --
---------------------------------------------------------------------------------------
Net increase 34,296 $ 346,960 839,743 $8,397,613
=======================================================================================
Class Y*
Shares sold 1,524 $ 22,402 843,613 $8,436,333
Reinvestment of distributions 19,737 194,215 -- --
Less shares repurchased (534) (5,328) -- --
---------------------------------------------------------------------------------------
Net increase 20,727 $ 211,289 843,613 $8,436,333
=======================================================================================
* Class A, Class C and Class Y shares commenced operations on December 30, 2013.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 33
Financial Highlights
--------------------------------------------------------------------------------------------
Six Months
Ended
2/28/15 12/30/13
(unaudited) to 8/31/14
--------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.05 $ 10.00
--------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.03 $ (0.02)
Net realized and unrealized gain (loss) on investments 0.17 0.07
--------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.20 $ 0.05
--------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.21) $ --
--------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.01) $ 0.05
--------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.04 $ 10.05
============================================================================================
Total return* 2.06% 0.50%***
Ratio of net expenses to average net assets 1.55%** 1.55%**
Ratio of net investment income (loss) to average net assets 0.50%** (0.27)%**
Portfolio turnover rate 133%** 65%**
Net assets, end of period (in thousands) $ 8,862 $ 8,604
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 2.41%** 2.74%**
Net investment income (loss) to average net assets (0.36)%** (1.46)%**
============================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------------
Six Months
Ended
2/28/15 12/30/13
(unaudited) to 8/31/14
--------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.00 $ 10.00
--------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01) $ (0.07)
Net realized and unrealized gain (loss) on investments 0.17 0.07
--------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.16 $ --
--------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.16) $ --
--------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ -- $ --
--------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.00 $ 10.00
============================================================================================
Total return* 1.67% 0.00%***
Ratio of net expenses to average net assets 2.30%** 2.30%**
Ratio of net investment income (loss) to average net assets (0.25)%** (1.03)%**
Portfolio turnover rate 133%** 65%**
Net assets, end of period (in thousands) $ 8,745 $ 8,399
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 3.15%** 3.48%**
Net investment income (loss) to average net assets (1.10)%** (2.21)%**
============================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 35
Financial Highlights (continued)
--------------------------------------------------------------------------------------------
Six Months
Ended
2/28/15 12/30/13
(unaudited) to 8/31/14
--------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.07 $ 10.00
--------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.04 $ (0.00)(a)
Net realized and unrealized gain (loss) on investments 0.18 0.07
--------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.22 $ 0.07
--------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.23) $ --
--------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.01) $ 0.07
--------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.06 $ 10.07
============================================================================================
Total return* 2.24% 0.70%***
Ratio of net expenses to average net assets 1.30%** 1.30%**
Ratio of net investment income (loss) to average net assets 0.75%** (0.02)%**
Portfolio turnover rate 133%** 65%**
Net assets, end of period (in thousands) $ 8,691 $ 8,494
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 2.15%** 2.48%**
Net investment income (loss) to average net assets (0.10)%** (1.20)%**
============================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
(a) Amount rounds to less than $0.01 or $(0.01) per share.
The accompanying notes are an integral part of these financial statements.
36 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
Notes to Financial Statements | 2/28/15 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Long/Short Global Bond Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a non-diversified,
open-end management investment company. The Fund's investment objective is to
seek total return.
The Fund offers three classes of shares designated as Class A, Class C, and
Class Y shares. Class A, Class C and Class Y shares commenced operations on
December 30, 2013. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has identical rights (based on relative
net asset values) to assets and liquidation proceeds. Share classes can bear
different rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 37
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. Shares of money market mutual funds are valued at such funds'
net asset value. Cash may include overnight time deposits at approved
financial institutions.
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 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.
38 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
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. 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.
At February 28, 2015, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services or broker-dealers).
B. Investment Income and Transactions
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 is recorded on the
accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 39
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in the market price of those securities but are included
with the net realized and unrealized gain or loss on investments.
D. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
February 28, 2015 was $174,997. Subsequent payments for futures contracts
("variation margin") are paid or received by the Fund, depending on the
daily fluctuation in the value of the contracts, and are recorded by the
Fund as unrealized appreciation or depreciation. When the contract is
closed, the Fund realizes a gain or loss equal to the difference between the
opening and closing value of the contract as well as any fluctuation in
foreign currency exchange rates where applicable. The use of futures
contracts involves, to varying degrees, elements of market, interest rate,
currency exchange rate and counterparty risks, which may exceed the amount
recognized by the Fund. Changes in value of the contracts may not directly
correlate to the changes in value of the underlying securities. The average
value of contracts open during the six months ended February 28, 2015 was
$12,638,471.
At February 28, 2015, open futures contracts were as follows:
-----------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation
Type Long/(Short) Month Value (Depreciation)
-----------------------------------------------------------------------------------
F/C 90-Day Euro (53) 6/17 $(12,996,925) $ 3,313
F/C U.S. 5 Year Note (6) 3/15 (719,953) (5,204)
-----------------------------------------------------------------------------------
Total $(13,716,878) $(1,891)
===================================================================================
40 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
E. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation is
recorded in the Fund's financial statements. The Fund records realized gains
and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
F. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
August 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.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. There were no distributions paid
during the fiscal year ended August 31, 2014.
The following shows the components of distributable earnings (losses) on a
federal income tax basis at August 31, 2014:
---------------------------------------------------------------------------
2014
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 517,080
Capital loss carryforward (436,853)
Unrealized appreciation 49,863
---------------------------------------------------------------------------
Total $ 130,090
===========================================================================
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 41
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses or wash sales, adjustments
relating to catastrophe bonds and the mark to market of forward, swap and
futures contracts.
G. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $41 in underwriting commissions on the sale of Class A shares during
the six months ended February 28, 2015.
H. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the 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).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
I. Risks
When interest rates rise, the prices of fixed-income securities in the Fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise. Investments in the
Fund are subject to possible loss due to the financial failure of underlying
issues and their ability to meet their debt obligations. The Fund's
prospectus contains unaudited information regarding the Fund's principal
risks. Please refer to that document when considering the Fund's principal
risks.
42 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
J. Credit Default Swaption Writing
The Fund may write put and covered call swaptions on portfolio securities in
order to attempt to hedge against changes in the value of portfolio
securities or to seek to increase total return. When a swaption is written,
the Fund receives a premium and becomes obligated to purchase or sell the
underlying security at a fixed price upon the exercise of the swaption. When
the Fund writes a swaption, an amount equal to the premium received by the
Fund is recorded as a liability and is subsequently adjusted to the current
value of the swaption written. Premiums received from writing swaptions that
expire unexercised are treated by the Fund on the expiration date as
realized gains from investments. The difference between the premium and the
amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain or, if the premium is less
than the amount paid for the closing purchase transaction, as a realized
loss. If a call swaption is exercised, the premium is added to the proceeds
from the sale of the underlying security in determining whether the Fund has
realized a gain or loss. The Fund as writer of a swaption bears the market
risk of an unfavorable change in the price of the security underlying the
written swaption. The Fund did not hold any written swaption contracts at
February 28, 2015.
The average value of contracts open during the six months ended February 28,
2015 was $2,036.
Transactions in written swaptions for the period ended February 28, 2015 are
summarized as follows:
----------------------------------------------------------------------------
Number of Premiums
Contracts Received
----------------------------------------------------------------------------
Options outstanding at beginning of period (2,500,000) $ 38,750
Options opened -- --
Options exercised -- --
Options closed -- --
Options expired 2,500,000 (38,750)
----------------------------------------------------------------------------
Options outstanding at end of period -- $ --
============================================================================
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 43
K. 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 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
44 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
instrument received by the Fund, together with the periodic payments
received, may be less than the amount the Fund pays to the protection buyer,
resulting in a loss to the Fund.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by the
Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as variation margin on
centrally cleared swaps on the Statement of Assets and Liabilities.
Open credit default swap contracts at February 28, 2015 are listed in the
Schedule of Investments. The average value of swap contracts open during the
six months ended February 28, 2015 was $563,949.
L. Interest Rate Swap Contracts
The Fund may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance its income. Pursuant to the
interest rate swap agreement, the Fund negotiates with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly basis.
Periodic payments received or paid by the Fund are recorded as realized
gains or losses in the Statement of Operations. Interest rate swap contracts
are marked-to-market daily using valuations supplied by independent sources
and the change in value, if any, is recorded as unrealized appreciation or
depreciation in the Statement of Assets and Liabilities. Interest rate swap
contracts are subject to counterparty risk and movements in interest rates.
Open interest rate swap contracts at February 28, 2015 are listed in the
Schedule of Investments. The average value of interest swap contracts open
during the six months ended February 28, 2015 was $77,701.
M. 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.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 45
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at an annual rate of 1.05% of
the average daily net assets of the Fund up to $1 billion and 0.95% of the
Fund's average daily net assets over $1 billion of the Fund. For the period
ending February 28, 2015, the effective management fee was equivalent to 1.05%
of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.55%, 2.30% and 1.30% of the average daily
net assets attributable to Class A, Class C and Class Y shares, respectively.
These expense limitations are in effect through January 1, 2016. Fees waived and
expenses reimbursed during the six months ended February 28, 2015 are reflected
on the Statement of Operations. Fees and expenses of other investment companies
in which the Fund may invest are not included in the expense limitations noted
above. There can be no assurance that PIM will extend the expense limitation
agreement for a class of shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$23,240 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 28, 2015.
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 period ended February 28, 2015, such out-of-pocket expenses by class of
shares were as follows:
-------------------------------------------------------------------------------
Shareholder Communications:
-------------------------------------------------------------------------------
Class A $424
Class C 196
Class Y 267
-------------------------------------------------------------------------------
Total $887
===============================================================================
46 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $80 in transfer agent fees and out-of-pocket reimbursements
payable from PIMSS at February 28, 2015.
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 $899 in distribution fees payable to PFD
at February 28, 2015.
In addition, redemptions of each class of shares (except
Class Y shares) may be subject to a contingent deferred sales charge (CDSC). A
CDSC of 1.00% may be imposed on redemptions of certain net asset value purchases
of Class A shares within 12 months of purchase. Redemptions of Class C shares
within 12 months of purchase are subject to a CDSC of 1.00%, based on the lower
of cost or market value of shares being redeemed. Shares purchased as part of an
exchange remain subject to any CDSC that applied to the original purchase of
those shares. There is no CDSC for Class Y shares. Proceeds from the CDSC are
paid to PFD. For the six months ended February 28, 2015, there were no CDSCs
paid to PFD.
5. Forward Foreign Currency Contracts
At February 28, 2015, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the six months ended February 28, 2015 was
$12,464,896.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 47
Open forward foreign currency contracts at February 28, 2015 were as follows:
---------------------------------------------------------------------------------------------------------
Quantity Net
Purchased/ Book Settlement US $ Value Unrealized
Currency Counterparty (Sold) Value Date at 2/28/15 Appreciation
---------------------------------------------------------------------------------------------------------
CHF (Swiss
Franc) Citibank NA (344,197) $ 364,272 5/26/15 $ (362,015) $ 2,257
EURO (European
Euro) Citibank NA (782,715) 889,693 5/26/15 (876,752) 12,941
EURO (European
Euro) Citibank NA 80,596 91,553 3/2/15 (90,183) 1,370
HUF (Hungarian
Forint) Citibank NA (22,500,316) 83,433 5/26/15 (82,919) 514
JPY (Japanese
Yen) Citibank NA (74,566,167) 626,304 5/26/15 (623,642) 2,662
THB (Thai Baht) Citibank NA 1,638,521 50,650 2/27/15 (50,619) 31
TRY (Turkish Lira) Citibank NA (491,159) 194,538 5/26/15 (191,623) 2,915
CAD (Canadian JP Morgan
Dollar) Chase Bank (5,698,646) 4,576,531 4/17/15 (4,550,791) 25,740
CZK (Czech JP Morgan
Koruna) Chase Bank (7,947,651) 328,358 5/26/15 (323,709) 4,649
EURO (European JP Morgan
Euro) Chase Bank (2,166,226) 2,472,112 4/17/15 (2,425,266) 46,846
EURO (European JP Morgan
Euro) Chase Bank (114,930) 130,436 5/26/15 (128,738) 1,698
GBP (British
Pound JP Morgan
Sterling) Chase Bank (163,281) 252,231 5/26/15 (251,875) 356
IDR (Indonesian JP Morgan
Rupiah) Chase Bank 2,112,936,713 (159,708) 5/26/15 161,072 1,364
MXN (Mexican JP Morgan
Peso) Chase Bank 4,839,832 (321,564) 5/26/15 322,270 706
SGD (Singapore JP Morgan
Dollar) Chase Bank (447,397) 328,555 5/26/15 (327,590) 965
TWD (New JP Morgan
Taiwan Dollar) Chase Bank (3,369,762) 107,557 5/26/15 (107,215) 342
ZAR (South JP Morgan
African Rand) Chase Bank (1,913,447) 163,624 5/26/15 (161,686) 1,938
---------------------------------------------------------------------------------------------------------
$ 107,294
=========================================================================================================
48 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
--------------------------------------------------------------------------------------------------------
Quantity Net
Purchased/ Book Settlement US $ Value Unrealized
Currency Counterparty (Sold) Value Date at 2/28/15 Depreciation
--------------------------------------------------------------------------------------------------------
CAD (Canadian
Dollar) Citibank NA (578,238) $ 459,581 5/26/15 $ (461,540) $ (1,959)
GBP (British
Pound
Sterling) Citibank NA (1,934,831) 2,978,187 4/17/15 (2,985,413) (7,226)
NOK (Norwegian
Krone) Citibank NA 2,504,524 (328,825) 5/26/15 325,986 (2,839)
SEK (Swedish
Krona) Citibank NA (2,769,439) 329,649 5/26/15 (332,193) (2,544)
AUD (Australian JP Morgan
Dollar) Chase Bank (592,608) 460,593 5/26/15 (460,696) (103)
CLP (Chilean JP Morgan
Peso) Chase Bank (51,945,557) 83,000 5/26/15 (83,599) (599)
INR Indian JP Morgan
Rupee Chase Bank 29,278,760 (466,222) 5/26/15 465,748 (474)
TWD (New JP Morgan
Taiwan Dollar) Chase Bank (6,032,367) 190,046 5/26/15 (191,931) (1,885)
--------------------------------------------------------------------------------------------------------
$ (17,629)
========================================================================================================
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 period ended February 28, 2015, 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 February 28, 2015.
------------------------------------------------------------------------------------------------------
Assets:
Net
Gross Amounts Gross Amounts
Amounts of Assets Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement --------------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received* Amount
------------------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $107,294 $ -- $107,294 $ -- $ -- $ 107,294
Swap contracts 559,131 (188,085) 261,046 -- -- 2 61,046
------------------------------------------------------------------------------------------------------
$666,425 $(188,085) $368,340 $ -- $ -- $ 368,340
======================================================================================================
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 49
------------------------------------------------------------------------------------------------------
Liabilities:
Net
Gross Amounts Gross Amounts
Amounts of Liabilities Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement --------------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Pledged* Amount
-------------------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 17,629 $ -- $ 17,629 $ -- $ -- $ 17,629
Swap contracts 188,085 (188,085) -- -- -- --
-------------------------------------------------------------------------------------------------------
$ 205,714 $ (188,085) $ 17,629 $ -- $ -- $ 17,629
=======================================================================================================
8. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of February 28, 2015 were as follows:
----------------------------------------------------------------------------------------------
Derivatives not
accounted for as Asset Derivatives 2015 Liabilities Derivatives 2015
hedging instruments --------------------------- --------------------------------
under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
----------------------------------------------------------------------------------------------
Forward Foreign Net unrealized Net unrealized
Currency Contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $107,294 currency contracts $ 17,629
Futures Contracts Net unrealized Net unrealized
appreciation on depreciation on
futures contracts -- futures contracts 1,891
Swap Contracts Net unrealized Net unrealized
appreciation on depreciation on
swap contracts 559,131 swap contracts 188,085
----------------------------------------------------------------------------------------------
Total $666,425 $207,605
==============================================================================================
50 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
The effect of derivative instruments on the Statement of Operations for the six
months ended February 28, 2015 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
-------------------------------------------------------------------------------------------------
Futures Contracts Net realized gain (loss) on
futures contracts $ (308,391)
Futures Contracts Change in unrealized appreciation
(depreciation) on futures contracts $ 50,673
Written Swaptions Net realized gain (loss) on
written swaptions $ 9,921
Written Swaptions Change in unrealized appreciation
(depreciation) on written swaptions $ (38,043)
Forward Foreign
Currency Contracts Net realized gain (loss) on forward
foreign currency contracts $2,158,988
Forward Foreign
Currency Contracts Change in unrealized appreciation
(depreciation) on forward foreign
currency contracts $(433,523)
Swap Contracts Net realized gain (loss) on
swap contracts $ (3,264)
Swap Contracts Change in unrealized appreciation
(depreciation) on swap contracts $ 402,173
9. Subsequent Event
The Board of Trustees of the Fund has approved the elimination of the Fund's
current policy normally to invest at least 40% of the net assets in securities
of assets located outside of the United States. In connection with the
elimination of this policy, the Fund will be renamed Pioneer Long/Short Bond
Fund. These changes are effective on June 1, 2015.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 51
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Long/Short Global Bond Fund (the Fund) pursuant to an investment
advisory agreement between PIM and the Fund. In order for PIM to remain the
investment adviser of the Fund, the Trustees of the Fund must determine annually
whether to renew the investment advisory agreement for the Fund.
The contract review process began in January 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
52 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
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 performance
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 53
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 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 investment
management expertise and resources required to implement the Fund's complex
investment strategy. The Trustees considered that the expense ratio of the
Fund's Class A shares for the twelve months ended June 30, 2014 was in the
fourth quintile relative to its Morningstar peer group and in the fifth 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
noted the Fund's relatively small asset size compared to most of the other funds
in its peer groups, and that the Fund has not been able to take advantage of the
economies of scale afforded by greater asset size. The Trustees considered the
impact of transfer agency, sub-transfer agency, and other non-management fee
expenses on the expense ratios of the Fund. The Trustees noted that they
separately review the Fund's transfer agency, sub-transfer agency and
intermediary arrangements.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
54 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Fund's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Fund is subject. The Trustees
also considered the different entrepreneurial risks associated with PIM's
management of the Fund and Pioneer's management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
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.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 55
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.
56 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
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.
* Ms. Monchak is a non-voting Advisory Trustee.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 57
This page for your notes.
58 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
This page for your notes.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15 59
This page for your notes.
60 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/15
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) 2015 Pioneer Investments 27667-01-0415
Pioneer Long/Short
Opportunistic
Credit Fund
--------------------------------------------------------------------------------
Semiannual Report | February 28, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A LRCAX
Class C LRCCX
Class Y LRCYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 30
Notes to Financial Statements 37
Approval of Investment Advisory Agreement 51
Trustees, Officers and Service Providers 56
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 1
President's Letter
Dear Shareowner,
Today's market environment presents numerous opportunities as well as challenges
for investors. A disparate global economic landscape has formed, with the U.S.
facing prospects for continued growth, while questions abound regarding the
outlook for other regions. Employment, household income, and corporate profits
have been rising in the U.S. and inflation pressures remain low. However, many
countries across Europe as well as Japan face muted growth. In addition, a
variety of factors have clouded the outlook for countries such as Russia and
Brazil and China's investment-driven economy continues to slow.
Monetary policies of major central banks are diverging, reflecting different
economic conditions. With the U.S. economy no longer in need of extraordinary
stimulus, the Federal Reserve Board may be closer to raising short-term interest
rates. Conversely, the European Central Bank and the Bank of Japan are likely to
be adding, not removing, stimulus.
While we anticipate continued growth for the U.S., the outlook is far from
certain, nor is the outlook for other regions necessarily dire. It remains to be
seen how weakness outside the U.S. will affect global growth and whether easing
monetary policies in other regions will spur an economic recovery.
While these economic conditions may lead to increasing volatility in 2015, we
believe the opportunity for investors to earn attractive returns will persist.
However, in an environment where interest rates remain low and equity valuations
have been buoyed by an extended bull market, we believe it is imperative
investors adhere to a disciplined investment approach that is consistent with
one's goals and objectives, being mindful of the tradeoff between risk and
return.
Since 1928 Pioneer's investment professionals have been focused on identifying
and capitalizing on investment opportunities that present themselves in a
variety of ever changing market conditions, including those we face today. We
seek returns consistent with our strategies' stated style and
2 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
objectives and consistent with our shareholders' expectations, regardless of
market conditions. We believe our shareowners benefit from the experience
and tenure of our investment teams, the insights generated from extensive
research resources and a commitment to prudent risk management that seeks
to mitigate downside and preserve returns over time.
We encourage you to work with your financial advisor to develop an overall
investment plan that addresses both your short- and long-term goals, and to
implement such a plan in a disciplined manner, as we do when deploying
strategies on behalf of our shareowners.
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 Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 3
Portfolio Management Discussion | 2/28/15
In the following interview, portfolio managers Thomas Swaney and Benjamin Gord
discuss the factors that influenced Pioneer Long/Short Opportunistic Credit
Fund's performance during the six-month period ended February 28, 2015, as well
as their investment approach in managing the Fund. Mr. Swaney, Head of
Alternative Fixed Income, U.S., a senior vice president, and a portfolio manager
at Pioneer (lead portfolio manager of the Fund since 2013), and Mr. Gord, a vice
president and a portfolio manager at Pioneer, are responsible for the day-to-day
management of the Fund.
Q How did the Fund perform during the six-month period ended February 28,
2015?
A Pioneer Long/Short Opportunistic Credit Fund's Class A shares returned 1.83%
at net asset value during the six-month period ended February 28, 2015,
while the Fund's benchmark, the Bank of America Merrill Lynch (BofA ML)
3-Month U.S. Treasury-Bill Index, returned 0.01%. During the same period,
the average return of the 230 mutual funds in Lipper's Alternative Credit
Focus Funds category was -0.65%, and the average return of the 427 mutual
funds in Morningstar's Non-Traditional Bond Funds category was -0.25%.
Q Can you provide an overview of the Fund's investment approach?
A The big picture is that we seek to have the Fund produce an average annual
return that is greater than the return on 3-month Treasury bills, on an
annualized basis, with volatility lower than one would experience in the
broad equity market. In pursuing this goal, we seek to have the Fund provide
positive returns over most trailing 12-month periods and to minimize the
extent of any negative returns, regardless of market conditions.
Obviously, if we are going to be successful in achieving our objective, the
Fund's returns cannot be overly dependent on the direction of one or more
financial asset categories. In seeking positive returns regardless of market
conditions, we utilize two distinct strategies. One strategy is
"directional," in that we need to be correct about whether a particular
asset price is poised to go up or down. However, we seek to have the Fund's
performance benefit from both positive and negative returns. This means that
at times we invest the portfolio in some asset categories within the broad
bond market by taking long positions, while speculating against other asset
classes by taking short positions.
4 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
The other part of the portfolio utilizes uncorrelated, relative-value-based
trading strategies, in which we do not have to take a stance on whether an
individual market is going to rise or fall overall. Instead, we need to
identify either a segment or security within a market that we believe will
outperform versus another market segment or security. We execute these
portfolio investment strategies across several different global financial
markets and many different asset classes. We will seek to "pair" positions,
meaning that the Fund will have a long position in one segment/security of a
particular market, and a short position in another segment/security. We
believe this strategy can allow the Fund to benefit from favorable relative
performance, regardless of the overall direction of that market.
Most importantly, we closely track the risks we have assumed in both
portions of the portfolio and operate within an overall "risk budget," which
is based on our goal of largely avoiding negative returns over a 12-month
period.
Q Can you review the principal portfolio investment strategies you implemented
during the six-month period ended February 28, 2015? How did those
strategies help or hinder the Fund's performance?
A Let's look first at the relative value side of the portfolio, which seeks to
realize gains regardless of market direction. One relative value strategy we
used during the period was to seek to take advantage of the slope of the
yield curve for individual corporate bond issuers. For instance, the
long-term debt of companies with weaker balance sheets may react more
strongly to changes in business conditions than the short-term debt. Within
this strategy, a curve trade in retailer Radio Shack added to the Fund's
performance, while a curve trade in gaming company Caesars Entertainment
detracted. On the whole, the Fund's long/short curve trading strategies
added notably to returns over the six-month period.
Another strategy that added value to the Fund's returns during the period
was our utilization of credit index tranches. Such investments allow us to
efficiently accentuate the portfolio's exposure to index constituents that
tend to be more susceptible to overall changes in business conditions, while
shorting the overall market index. We also implemented pair trades, under
which we took opposing long and short positions in two issuers within the
same industry. We do this when we believe that the differing company
fundamentals are not reflected in their relative valuations. Our pair trades
were, on balance, modestly successful for the Fund during the six-month
period.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 5
During the period, we also utilized the strategy of arbitraging a company's
capital structure in anticipation of a divergence in performance. (Arbitrage
is defined as a trade that profits by exploiting price differences of
identical or similar financial instruments, on different markets or in
different forms, due to temporary inefficiencies in the markets; this
provides a mechanism to ensure prices do not deviate substantially from fair
value for long periods of time. Part of the transaction could fail, and a
sudden price movement may make it impossible to close the trade at a
profit.) An example of arbitraging would be our buying the issuer's junior
subordinated bonds and selling short the issuer's senior secured bonds. Our
various capital arbitrage positions had mixed results for the Fund's
performance during the period.
On the directional side of the portfolio, we will take long or short
positions in fixed-income markets and securities, based on our performance
outlook, while hedging out interest-rate risk. During the period, the Fund's
directional trading was challenged as market volatility spiked in late 2014.
We were cautious with respect to investments in credit-oriented markets, in
particular high-yield corporates, given the tightening in spreads that has
occurred (credit spreads are commonly defined as the differences in yield
between Treasuries and other types of fixed-income securities with similar
maturities). We did successfully take portfolio positions in corporate
bonds, including high-yield issues, on weakness at various points during the
six-month period. The Fund's performance benefited from long positions
taken in both commercial mortgage-backed (CMBS) and residential mortgage-
backed securities (RMBS), as the credit profiles of existing borrowers
improved along with the economic backdrop.
Finally, we took various thematic long/short positions, including those
based on U.S. dollar strength, weakness in infrastructure metal commodities,
a rebound in crude oil prices and a rise in short-term interest rates. Under
this approach, we will take opposite positions in two companies that we
believe could be affected differently by their exposures to a particular
theme (for instance, dollar strength). Our thematic long/short trading
strategies, on balance, contributed positively to the Fund's returns during
the period. In this vein, a long position in Hertz did not work opposite a
short position in United Rentals.
6 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
Q Could you discuss the use of derivative positions in the portfolio during
the six-month period ended February 28, 2015, and their effect on the Fund's
performance?
A Virtually all of the portfolio's strategies are implemented via derivatives,
and so the Fund's performance will always be affected by derivatives
trading. For instance, when we want to short U.S. Treasuries, we will do so
mainly by selling Treasury futures or sometimes by buying "put" options.
Similarly, in the currency sleeve of the Fund, we use forwards and options
to gain the desired exposures. With respect to credit markets, where there
are no liquid futures contracts, we may use credit default swaps to manage
the portfolio's exposures. In other situations, we utilize instruments such
as interest-rate or inflation swaps to implement our strategies.
Q What is your assessment of the current macroeconomic climate and the
opportunities it may present?
A In general, asset valuations appear to be ahead of economic growth trends,
supported by zero-interest-rate policies from central banks around the
world. In this vein, credit spreads are tight by historical standards. At
the same time, corporate balance sheets are in good shape. Given this
backdrop, we see relatively few directional opportunities among fixed-income
markets. The CMBS and more credit-sensitive areas of the MBS sector appear
to be more attractively valued than corporate bonds.
The Fed's extraordinarily supportive policies have helped to underpin
conditions in recent years. While the beginning of Fed policy tightening is
anticipated to a large degree by the market, volatility and performance
dispersion could still increase as the speculation about increased rates
moves out of the realm of benign prospect and becomes a reality. Slowing
economic growth in China and the impact of oil prices on different countries
and sectors will also be closely monitored by investors.
On balance, we expect an environment of heightened volatility across
fixed-income markets that could well provide opportunities for the Fund's
relative-value strategies. We plan to focus on identifying investment
opportunities that emerge as market reactions overshoot developments on
various macroeconomic fronts.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 7
Please refer to the Schedule of Investments on pages 17-29 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
The portfolio may invest in derivative securities, such as options, futures,
inverse floating-rate obligations, and swaps, among others, which can be
illiquid, may disproportionately increase losses, and have a potentially large
impact on the performance of the portfolio.
The Fund may take short positions, which involves leverage of its assets and
presents additional risks.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the Fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund employs leverage, which increases the volatility of investment returns
and subjects the Fund to magnified losses.
Investments in fixed-income securities involve interest rate, credit, inflation,
and reinvestment risks.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investments in high-yield or lower-rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The securities issued by U.S. Government sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
The 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.
8 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund may invest in event-linked bonds and other insurance-linked securities.
The return of principal and the payment of interest on insurance-linked
securities are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude.
The Fund may invest in floating-rate loans; the value of collateral, if any,
securing a floating-rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
The Fund is subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
These risks may increase share price volatility.
There is no assurance that these and other strategies used by the Fund will be
successful. Please see the prospectus for a more complete discussion of the
Fund's risks.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 9
Portfolio Summary | 2/28/15
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Securities 36.9%
Collateralized Mortgage Obligations 32.1%
Temporary Cash Investments 14.3%
Mutual Fund 4.2%
Senior Secured Loans 3.9%
International Corporate Bonds 3.1%
Convertible Preferred Stocks 1.4%
Asset Backed Securities 1.2%
Convertible Corporate Bonds 1.0%
U.S. Preferred Stocks 1.0%
U.S. Corporate Bonds 0.9%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. U.S. Treasury Bills, 3/5/15 8.90%
----------------------------------------------------------------------------------------
2. U.S. Treasury Note, Floating Rate Note, 7/31/16 6.32
----------------------------------------------------------------------------------------
3. U.S. Treasury Bills, 3/26/15 5.74
----------------------------------------------------------------------------------------
4. U.S. Treasury Bills, 4/9/15 5.74
----------------------------------------------------------------------------------------
5. U.S. Treasury Bills, 4/16/15 5.74
----------------------------------------------------------------------------------------
6. U.S. Treasury Bills, 4/2/15 5.74
----------------------------------------------------------------------------------------
7. DoubleLine Opportunistic Credit Fund 4.92
----------------------------------------------------------------------------------------
8. JP Morgan Mortgage Trust 2014-1 REMICS, Floating Rate Note, 1/25/44 (144A) 4.25
----------------------------------------------------------------------------------------
9. Sequoia Mortgage Trust 2013-7, Floating Rate Note, 6/25/43 3.96
----------------------------------------------------------------------------------------
10. U.S. Treasury Bills, 4/23/15 3.89
----------------------------------------------------------------------------------------
* 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 Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
Prices and Distributions | 2/28/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/15 8/31/14
--------------------------------------------------------------------------------
A $9.96 $10.11
--------------------------------------------------------------------------------
C $9.93 $10.06
--------------------------------------------------------------------------------
Y $9.98 $10.13
--------------------------------------------------------------------------------
Distributions per Share: 9/1/14- 2/28/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.3284 $ -- $ --
--------------------------------------------------------------------------------
C $0.2784 $ -- $ --
--------------------------------------------------------------------------------
Y $0.3456 $ -- $ --
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bank of America Merrill Lynch (BofA ML) 3-month US Treasury Bill Index is an
unmanaged market index of U.S. Treasury securities maturing in 90 days, that
assumes reinvestment of all income. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 12-14.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 11
Performance Update | 2/28/15 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Long/Short Opportunistic Credit
Fund at public offering price during the periods shown, compared to that of the
Bank of America Merrill Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
Net Public BofA ML
Asset Offering 3-Month
Value Price U.S. Treasury
Period (NAV) (POP) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 2.53% -1.44% 0.03%
1 Year 2.95 -1.67 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.03% 1.88%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month
Opportunistic Credit Fund US Treasury Bill Index
12/31/2013 $9,550 $10,000
2/28/2014 $9,551 $10,001
2/28/2015 $9,833 $10,004
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
Performance Update | 2/28/15 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C Shares of Pioneer Long/Short Opportunistic Credit
Fund during the periods shown, compared to that of the Bank of America Merrill
Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 1.83% 1.83% 0.03%
1 Year 2.24 2.24 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.76% 2.63%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month
Opportunistic Credit Fund US Treasury Bill Index
12/31/2013 $10,000 $10,000
2/28/2014 $ 9,990 $10,001
2/28/2015 $10,214 $10,004
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 13
Performance Update | 2/28/15 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Long/Short Opportunistic Credit
Fund during the periods shown, compared to that of the Bank of America Merrill
Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Annual Total Returns
(As of February 28, 2015)
--------------------------------------------------------------------------------
Net BofA ML
Asset 3-Month
Value U.S. Treasury
Period (NAV) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 2.85% 0.03%
1 Year 3.23 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.76% 1.63%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Long/Short BofA ML 3-month
Opportunistic Credit Fund US Treasury Bill Index
12/31/2013 $5,000,000 $5,000,000
2/28/2014 $5,005,000 $5,000,363
2/28/2015 $5,166,514 $5,001,901
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
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 Long/Short Opportunistic
Credit Fund
Based on actual returns from September 1, 2014, through February 28, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 9/1/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,018.30 $1,015.30 $1,020.00
on 2/28/15
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 8.86 $ 12.59 $ 7.61
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratio of the underlying funds. These combined totals were 1.77%, 2.52%, and
1.52% for Class A, Class C and Class Y shares respectively. These combined
ratios were multiplied by the average account value over the period, and
then multiplied by 181/365 (to reflect the one-half year period).
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Long/Short Opportunistic Credit
Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2014, through February 28, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 9/1/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,016.02 $1,012.30 $1,017.26
on 2/28/15
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 8.85 $ 12.57 $ 7.60
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratio of the underlying funds. These combined totals were 1.77%, 2.52%, and
1.52% for Class A, Class C and Class Y shares respectively. These combined
ratios were multiplied by the average account value over the period, and
then multiplied by 181/365 (to reflect the one-half year period).
16 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
Schedule of Investments | 2/28/15 (unaudited)
---------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 1.0%
CAPITAL GOODS -- 1.0%
Construction & Farm Machinery & Heavy Trucks -- 1.0%
185,000 Trinity Industries, Inc., 3.875%, 6/1/36 $ 275,766
--------------
Total Capital Goods $ 275,766
---------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $276,280) $ 275,766
---------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 1.0%
BANKS -- 1.0%
Diversified Banks -- 1.0%
320,000 1.20 JPMorgan Chase Capital XXI, Floating Rate Note, 1/15/87 $ 264,800
--------------
Total Banks $ 264,800
---------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $260,276) $ 264,800
---------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.9%
BANKS -- 0.9%
Diversified Banks -- 0.9%
200 Bank of America Corp., 7.25% (Perpetual) $ 234,000
--------------
Total Banks $ 234,000
---------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $229,386) $ 234,000
---------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 1.2%
BANKS -- 0.9%
Thrifts & Mortgage Finance -- 0.9%
61,690 CAM Mortgage Trust 2014-1, 5.5%, 12/15/53
(Step) (144A) $ 61,750
41,669 1.47 First Franklin Mortgage Loan Trust 2003-FFC, Floating
Rate Note, 11/25/32 39,701
42,911 Icon Brand Holdings LLC, 4.229%, 1/26/43 (144A) 42,785
32,574 3.17 Irwin Whole Loan Home Equity Trust 2003-C, Floating
Rate Note, 6/25/28 32,564
58,207 5.47 New Century Home Equity Loan Trust, Floating Rate
Note, 8/25/34 60,130
--------------
$ 236,930
--------------
Total Banks $ 236,930
---------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.3%
Other Diversified Financial Services -- 0.3%
90,000 TAL Advantage V LLC, 4.1%, 2/22/39 $ 89,370
--------------
Total Diversified Financials $ 89,370
---------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $326,886) $ 326,300
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 17
Schedule of Investments | 2/28/15 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 31.5%
BANKS -- 31.5%
Thrifts & Mortgage Finance -- 31.5%
300,000 1.13 Alternative Loan Trust 2005-J4, Floating Rate
Note, 7/25/35 $ 269,070
180,000 2.70 BAMLL Commercial Mortgage Securities Trust
2014-INLD, Floating Rate Note, 12/17/29 (144A) 163,026
250,000 5.99 Banc of America Commercial Mortgage Trust 2007-5,
Floating Rate Note, 2/10/51 254,299
47,858 1.17 Bayview Commercial Asset Trust 2004-3, Floating
Rate Note, 1/25/35 (144A) 44,062
150,000 Bear Stearns Commercial Mortgage Securities
Trust 2006-PWR14, 5.273%, 12/11/38 152,605
152,000 4.45 CAM Mortgage Trust 2014-2, Floating Rate Note,
5/15/48 (144A) 152,760
120,000 2.76 Carefree Portfolio Trust 2014-CARE, Floating Rate
Note, 11/15/29 (144A) 110,828
3,777 Citicorp Mortgage Securities REMIC Pass-Through
Certificates Trust Series 2005-3, 5.5%, 4/25/35 3,778
155,000 5.77 COBALT CMBS Commercial Mortgage Trust 2007-C3,
Floating Rate Note, 5/15/46 146,703
47,000 5.77 COBALT CMBS Commercial Mortgage Trust 2007-C3,
Floating Rate Note, 5/15/46 41,596
175,000 5.57 COBALT Commercial Mortgage Trust 2007-C2,
Floating Rate Note, 4/15/47 (144A) 178,474
175,000 COMM 2006-C8 Mortgage Trust, 5.377%, 12/10/46 177,479
175,000 5.23 Credit Suisse First Boston Mortgage Securities Corp.,
Floating Rate Note, 12/17/40 176,124
300,000 5.10 Credit Suisse First Boston Mortgage Securities Corp.,
Floating Rate Note, 8/15/38 274,736
175,000 3.27 CSMC Trust 2014-SURF, Floating Rate Note,
2/15/29 (144A) 174,778
100,000 4.92 EQTY 2014-MZ Mezzanine Trust, Floating Rate Note,
5/9/19 (144A) 98,279
100,000 GAHR Commercial Mortgage Trust 2015-NRF,
3.38216%, 12/15/19 (144A) 93,763
250,000 5.55 GS Mortgage Securities Trust 2006-GG6, Floating
Rate Note, 4/10/38 250,194
200,000 JP Morgan Chase Commercial Mortgage Securities
Trust 2006-CIBC16, 5.623%, 5/12/45 204,270
125,000 3.51 JP Morgan Chase Commercial Mortgage Securities
Trust 2013-FL3, Floating Rate Note, 4/17/28 (144A) 125,001
929,518 3.50 JP Morgan Mortgage Trust 2014-1 REMICS, Floating
Rate Note, 1/25/44 (144A) 954,994
813,323 3.97 JP Morgan Mortgage Trust 2014-1 REMICS, Floating
Rate Note, 1/25/44 (144A) 853,291
125,000 5.27 LB-UBS Commercial Mortgage Trust 2005-C2, Floating
Rate Note, 4/15/40 125,242
The accompanying notes are an integral part of these financial statements.
18 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
---------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
187,500 5.28 LB-UBS Commercial Mortgage Trust 2006-C1, Floating
Rate Note, 2/15/41 $ 190,228
260,000 5.27 Merrill Lynch Mortgage Trust 2005-CKI1, Floating Rate
Note, 11/12/37 260,482
70,000 5.48 ML-CFC Commercial Mortgage Trust 2006-3, Floating
Rate Note, 7/12/46 71,435
6,239 0.95 Nomura Asset Acceptance Corp Alternative Loan Trust
Series 2004-AR2, Floating Rate Note, 10/25/34 6,215
695,133 3.50 Sequoia Mortgage Trust 2012-3, Floating Rate Note,
7/25/42 709,823
720,252 3.00 Sequoia Mortgage Trust 2013-6, Floating Rate Note,
5/26/43 710,292
901,084 3.00 Sequoia Mortgage Trust 2013-7, Floating Rate Note,
6/25/43 888,624
250,000 5.36 Wachovia Bank Commercial Mortgage Trust Series
2005-C22, Floating Rate Note, 12/15/44 253,348
125,000 5.95 Wachovia Bank Commercial Mortgage Trust Series
2007-C34, Floating Rate Note, 5/15/46 129,779
200,000 3.67 Wells Fargo Commercial Mortgage Trust 2014-TISH,
Floating Rate Note, 1/15/27 (144A) 197,268
--------------
$ 8,442,846
--------------
Total Banks $ 8,442,846
---------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $8,253,325) $ 8,442,846
---------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 4.0%
DIVERSIFIED FINANCIALS -- 0.2%
Other Diversified Financial Services -- 0.2%
INR3,700,000 European Bank for Reconstruction & Development,
6.0%, 3/3/16 $ 59,784
--------------
Total Diversified Financials $ 59,784
---------------------------------------------------------------------------------------------------------
INSURANCE -- 3.8%
Reinsurance -- 3.8%
250,000 6.87 Caelus Re, Ltd., Floating Rate Note, 4/7/17
(Cat Bond) (144A) $ 260,900
250,000 4.15 Kilimanjaro Re, Ltd., Floating Rate Note, 4/30/18
(Cat Bond) (144A) 251,750
250,000 8.51 Mythen Re, Ltd., Floating Rate Note, 5/7/15
(Cat Bond) (144A) 252,575
250,000 4.52 Residential Reinsurance 2012, Ltd., Floating Rate
Note, 12/6/16 (Cat Bond) (144A) 256,200
--------------
$ 1,021,425
--------------
Total Insurance $ 1,021,425
---------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $1,076,470) $ 1,081,209
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 19
Schedule of Investments | 2/28/15 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 36.3%
1,290,000 U.S. Treasury Bills, 3/26/15 (c) $ 1,289,978
2,000,000 U.S. Treasury Bills, 3/5/15 (c) 1,999,997
1,290,000 U.S. Treasury Bills, 4/16/15 (c) 1,289,972
1,290,000 U.S. Treasury Bills, 4/2/15 (c) 1,289,972
875,000 U.S. Treasury Bills, 4/23/15 (c) 874,975
1,290,000 U.S. Treasury Bills, 4/9/15 (c) 1,289,977
125,000 0.07 U.S. Treasury Note, Floating Rate Note, 1/31/16 124,997
125,000 0.09 U.S. Treasury Note, Floating Rate Note, 4/30/16 125,013
1,420,000 0.09 U.S. Treasury Note, Floating Rate Note, 7/31/16 1,419,922
---------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $9,705,420) $ 9,704,803
---------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 3.9%**
ENERGY -- 1.2%
Oil & Gas Drilling -- 0.2%
50,020 7.50 Jonah Energy LLC, Term Loan (Second Lien), 5/8/21 $ 44,518
---------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.5%
98,998 3.88 Fieldwood Energy LLC, Closing Date Loan, 9/25/18 $ 94,976
49,500 5.75 FR Dixie Acquisition Corp., Term Loan, 1/23/21 41,332
--------------
$ 136,308
---------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.5%
50,000 7.50 Chief Exploration & Development LLC, Term Loan,
6.50%, 5/16/21 $ 45,906
99,000 4.00 Seadrill Operating LP Initial Term Loan, 2/14/21
, 80,349
--------------
$ 126,255
--------------
Total Energy $ 307,081
---------------------------------------------------------------------------------------------------------
MATERIALS -- 0.7%
Commodity Chemicals -- 0.1%
29,700 5.00 Nexeo Solutions LLC, Term Loan B3, 9/9/17 $ 29,069
---------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.2%
49,485 5.00 Univar, Term B Loan, 2/14/17 $ 49,238
---------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.3%
25,000 8.00 Caraustar Industries, Inc., Incremental Term Loan,
6.75%, 5/1/19 $ 24,500
49,500 5.25 Coveris Holdings SA, USD Term Loan, 4/14/19 49,778
--------------
$ 74,278
---------------------------------------------------------------------------------------------------------
Steel -- 0.1%
34,825 4.50 Atkore International, Inc., Term Loan (First Lien), 3/27/21 $ 33,780
--------------
Total Materials $ 186,365
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
---------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.3%
Aerospace & Defense -- 0.3%
33,770 6.25 DynCorp International, Inc., Term Loan, 7/7/16 $ 33,616
24,937 6.50 TASC, Inc., First Lien Term Loan, 2/28/17 25,228
24,375 3.25 Wesco Aircraft Hardare Corp., Tranche B Term Loan
(First Lien), 2/24/21 24,030
--------------
$ 82,874
--------------
Total Capital Goods $ 82,874
---------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.4%
Trucking -- 0.4%
49,750 5.50 Aegis Toxicology Corp., Tranche B Term Loan
(First Lien), 2/20/21 $ 49,999
49,500 8.25 YRC Worldwide, Inc., Initial Term Loan, 2/12/19 49,252
--------------
$ 99,251
--------------
Total Transportation $ 99,251
---------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.1%
Auto Parts & Equipment -- 0.1%
29,850 4.00 Cooper Standard Intermediate Holdco 2 LLC,
Term Loan, 3/28/21 $ 29,742
--------------
Total Automobiles & Components $ 29,742
---------------------------------------------------------------------------------------------------------
MEDIA -- 0.2%
Broadcasting -- 0.1%
23,485 3.00 CBS Outdoor Americas Capital llc, Tranche B Term Loan
(First Lien), 1/15/21 $ 23,371
---------------------------------------------------------------------------------------------------------
Publishing -- 0.1%
25,000 7.00 Cengage Learning Acquisitions Inc, Term Loan, 3/6/20 $ 25,025
--------------
Total Media $ 48,396
---------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.4%
Personal Products -- 0.4%
75,000 7.75 Atrium Innovations, Inc., Tranche B Term Loan
(Second Lien), 7/29/21 $ 69,562
35,640 4.00 Party City Holdings, Inc., 2014 Replacement Term
Loan, 7/27/19 35,462
--------------
$ 105,024
--------------
Total Household & Personal Products $ 105,024
---------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.3%
Other Diversified Financial Services -- 0.2%
34,738 4.50 Nord Anglia Education, Initial Term Loan, 3/31/21 $ 34,651
24,813 5.00 SBP Holdings, Ltd., Term Loan (First Lien), 3/24/21 21,773
--------------
$ 56,424
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 21
Schedule of Investments | 2/28/15 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.1%
34,738 4.00 Trans Union LLC, 2014 Replacement Term Loan, 4/9/21 $ 34,672
--------------
Total Diversified Financials $ 91,096
---------------------------------------------------------------------------------------------------------
Semiconductors & Semiconductor Equipment -- 0.1%
Semiconductor Equipment -- 0.1%
35,552 3.50 Emtegris, Inc., Term Loan B, 3/25/21 $ 35,330
--------------
Total Semiconductors & Semiconductor Equipment $ 35,330
---------------------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Electric Utilities -- 0.2%
45,125 4.75 Atlantic Power LP Term Loan, 2/20/21
, $ 45,350
--------------
Total Utilities $ 45,350
---------------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTERESTS
(Cost $1,077,255) $ 1,030,509
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Shares
---------------------------------------------------------------------------------------------------------
MUTUAL FUND -- 4.1%
42,851 DoubleLine Opportunistic Credit Fund $ 1,104,699
---------------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUND
(Cost $1,085,810) $ 1,104,699
---------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 14.1%
Repurchase Agreements -- 14.1%
3,765,000 RBC Capital Markets LLC, 0.08%, dated 2/28/15,
repurchase price of $3,765,000, plus accrued interest
on 3/2/15, collateralized by the following:
$16,350 Federal Home Loan Mortgage Corp.,
2.699%, 11/1/44 $2,557,442 Federal National
Mortgage Association (ARM), 2.335%, 9/1/39
$1,266,509 Federal National Mortgage Association,
3- 4%, 7/1/28- 2/1/45 $ 3,765,000
---------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $3,765,000) $ 3,765,000
---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 98.0%
(Cost $26,056,108) (a) $ 26,229,932
---------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 2.0% $ 533,446
---------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 26,763,378
=========================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
(144A) Security is exempt from registration under Rule 144A of the
Securities Act of 1933. Such securities may be resold normally to
qualified institutional buyers in a transaction exempt from
registration. At February 28, 2015, the value of these securities
amounted to $4,272,484 or 16.0% of total net assets.
(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.
(Perpetual) Security with no stated maturity date.
(Step) Bond issued with an initial coupon rate which converts to a higher
rate at a later date.
REMICS Real Estate Mortgage Investment Conduits.
** 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 certificate of deposit or (iv) other base
lending rates used by commercial lenders. The rate shown is the
coupon rate at period end.
(a) At February 28, 2015, the net unrealized appreciation on
investments based on cost for federal income tax purposes of
$26,060,228 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 231,629
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (61,925)
-----------
Net unrealized appreciation $ 169,704
===========
(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.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
INR Indian Rupee
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 28, 2015 aggregated $10,834,694 and $14,121,986,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 23
Schedule of Investments | 2/28/15 (unaudited) (continued)
CREDIT DEFAULT SWAP AGREEMENTS - BUY PROTECTION
----------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
----------------------------------------------------------------------------------------------------------
(250,000) Citibank NA JPMorgan Chase 1.00% 3/20/20 $ (3,780) $ (1,111)
& Co.
(1,210,300) Citibank NA Markit CDX North 5.00% 12/20/18 (239,639) 23,406
America High
Yield Index
(125,000) J.P. Morgan Bank of America 1.00% 3/20/20 (1,525) (794)
Securities LLC Corp.
(250,000) Morgan Radioshack Corp. 5.00% 6/20/17 123,750 82,288
Stanley & Co.
International plc
----------------------------------------------------------------------------------------------------------
$ (121,194) $ 103,789
==========================================================================================================
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS - BUY PROTECTION
-----------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
-----------------------------------------------------------------------------------------------------------
EUR(2,750,000) Intercontinental Markit iTraxx 5.00% 6/20/19 $ (401,922) $ (60,761)
Exchange Europe Crossover
Index
(5,010,000) Chicago Markit CDX North 1.00% 12/20/19 (85,995) (13,043)
Mercantile America Investment
Exchange Grade Index
(1,539,250) Chicago Markit CDX North 5.00% 12/20/16 (91,739) (2,835)
Mercantile America High
Exchange Yield Index
-----------------------------------------------------------------------------------------------------------
$ (579,656) $ (76,639)
===========================================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
CREDIT DEFAULT SWAP AGREEMENTS - SELL PROTECTION
---------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Received Appreciation
Principal($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Paid) (Depreciation)
---------------------------------------------------------------------------------------------------------------------
EUR 250,000 Barclays Norske 5.00% CCC- 12/20/15 $ (52,243) $ 43,776
Bank Plc Skogindustrier
ASA
655,000 Citibank NA Markit CDX North 5.00% BBB+ 12/20/17 (32,096) 7,050
America
Investment
Grade Index
EUR 625,000 Citibank NA Markit iTraxx 5.00% BB 6/20/15 (8,589) 17,894
Europe Index
EUR 2,500,000 Citibank NA Markit iTraxx 1.00% BBB+ 6/20/19 (216,544) 137,217
Europe Index
250,000 Citibank NA MBIA, Inc. 5.00% A- 3/20/15 (625) 2,609
250,000 Citibank NA Parker Drilling Co. 5.00% B+ 3/20/20 (17,500) 2,440
250,000 Citibank NA Sears Roebuck 5.00% CCC+ 3/20/15 (16,250) 16,146
Acceptance Corp.
250,000 Citibank NA Transocean Inc. 1.00% BBB- 3/20/20 (57,066) (35)
250,000 Citibank NA Travelport LLC 5.00% NR 3/20/15 -- 2,770
EUR 250,000 Goldman Sach Altice Finco SA 5.00% B- 3/20/20 (5,258) 30,451
International
300,000 Goldman Sach Claire's 5.00% CCC 12/20/15 (12,000) (25,905)
International Stores Inc.
260,000 Goldman Sach Hertz Corp. 5.00% B 3/20/20 6,096 16,588
International
525,000 Goldman Sach iHeartMedia 5.00% CCC- 12/20/15 (14,437) 19,180
International Inc.
525,000 Goldman Sach Sears Roebuck 5.00% CCC+ 12/20/15 (21,000) 10,281
International Acceptance Corp.
300,000 Goldman Sach Toys R Us Inc. 5.00% CCC 12/20/15 (10,500) 4,750
International
EUR 400,000 JP Morgan Abengoa SA 5.00% B 12/20/15 (31,981) 31,757
Chase Bank
NA
EUR 400,000 JP Morgan Abengoa SA 5.00% B 3/20/15 (117,167) 62,127
Chase Bank
NA
EUR 250,000 JP Morgan Norske 5.00% CCC- 3/20/15 (20,417) 21,017
Chase Bank Skogindustrier
NA ASA
EUR 250,000 JP Morgan Norske 5.00% CCC- 12/20/15 (50,506) 42,038
Chase Bank Skogindustrier
NA ASA
500,000 JP Morgan Sears Roebuck 1.00% CCC+ 3/20/15 (25,041) 339
Chase Bank Acceptance Corp.
NA
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 25
Schedule of Investments | 2/28/15 (unaudited) (continued)
CREDIT DEFAULT SWAP AGREEMENTS - SELL PROTECTION
--------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Received Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Paid) (Depreciation)
--------------------------------------------------------------------------------------------------------------------
250,000 Morgan Apache Corp. 1.00% A- 3/20/20 $ (14,039) $ 12,085
Stanley & Co
International
plc
250,000 Morgan Canadian 1.00% BBB+ 3/20/20 (5,264) 101
Stanley & Co Natural
International Resources Ltd.
plc
500,000 Morgan Diamond 1.00% A- 3/20/20 (63,792) 7,436
Stanley & Co Offshore Drill
International
plc
500,000 Morgan Energy Transfer 1.00% BBB- 3/20/20 (18,003) 3,512
Stanley & Co Partners LP
International
plc
525,000 Morgan JC Penny 5.00% CCC- 12/20/16 (15,750) 25,637
Stanley & Co Corp., Inc.
International
plc
400,000 Morgan Markit CDX 5.00% BBB+ 12/20/17 (14,500) (795)
Stanley & Co North America
International Investment
plc Grade Index
250,000 Morgan MBIA, Inc. 5.00% A- 12/20/15 (3,125) 16,013
Stanley & Co
International
plc
500,000 Morgan Nabors 1.00% BBB 3/20/20 (60,499) 473
Stanley & Co Industries Inc.
International
plc
250,000 Morgan Noble Holding 1.00% BBB 3/20/20 (31,187) (1,432)
Stanley & Co International Ltd.
International
plc
250,000 Morgan Sabine Oil & 5.00% CCC 3/20/15 (3,750) 1,991
Stanley & Co Gas Corp.
International
plc
125,000 Morgan Sears Roebuck 5.00% CCC+ 3/20/15 (5,625) 5,573
Stanley & Co Acceptance Corp.
International
plc
The accompanying notes are an integral part of these financial statements.
26 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
CREDIT DEFAULT SWAP AGREEMENTS - SELL PROTECTION
------------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Received Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Paid) (Depreciation)
------------------------------------------------------------------------------------------------------------------------
250,000 Morgan Weatherford 1.00% BBB- 3/20/20 $ (32,564) $ 7,947
Stanley & Co International
International Ltd.
plc
250,000 Morgan Weatherford 1.00% BBB- 3/20/15 (28,843) 4,240
Stanley & Co International
International Ltd.
plc
------------------------------------------------------------------------------------------------------------------------
$(1,000,065) $ 525,271
========================================================================================================================
(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 or the issuer of the weighted average
rating of all the underlying securities of the index.
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
INTEREST RATE SWAP AGREEMENTS
------------------------------------------------------------------------------------------------------------
Net
Annual Premiums Unrealized
Notional Pay/ Floating Fixed Expiration Received Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Paid) (Depreciation)
------------------------------------------------------------------------------------------------------------
951,858 Chicago Receive LIBOR USD 1.819% 8/7/19 $ 4 $ (12,094)
Mercantile 3 Month
Exchange
1,660,004 Chicago Receive LIBOR USD 2.660% 8/7/24 13 (85,187)
Mercantile 3 Month
Exchange
2,995,260 Chicago Receive LIBOR USD 2.624% 2/12/25 13 3,777
Mercantile 3 Month
Exchange
3,074,836 Chicago Receive LIBOR USD 2.808% 2/19/25 14 (20,251)
Mercantile 3 Month
Exchange
------------------------------------------------------------------------------------------------------------
$44 $(113,755)
============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 27
Schedule of Investments | 2/28/15 (unaudited) (continued)
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
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 February 28, 2015, in
valuing the Fund's assets:
---------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 275,766 $ -- $ 275,766
Preferred Stocks -- 264,800 -- 264,800
Convertible Preferred Stocks 234,000 -- -- 234,000
Asset Backed Securities -- 326,300 -- 326,300
Collateralized Mortgage Obligations -- 8,442,846 -- 8,442,846
Corporate Bonds -- 1,081,209 -- 1,081,209
U.S. Government and
Agency Obligations -- 9,704,803 -- 9,704,803
Senior Floating Rate Loan Interests -- 1,030,509 -- 1,030,509
Mutual Fund 1,104,699 -- -- 1,104,699
Repurchase Agreements -- 3,765,000 -- 3,765,000
---------------------------------------------------------------------------------------------------
Total $ 1,338,699 $24,891,233 $ -- $26,229,932
===================================================================================================
Other Financial Instruments
Net Unrealized Appreciation on
Credit Default Swaps $ -- $ 629,060 $ -- $ 629,060
Net Unrealized Depreciation on
Centrally Cleared Credit
Default Swaps -- (76,639) -- (76,639)
Net Unrealized Depreciation on
Interest Rate Swaps -- (113,755) -- (113,755)
Net Unrealized Depreciation on
Futures Contracts (1,828) -- -- (1,828)
Net Unrealized Appreciation on
Forward Foreign Currency Contracts -- 36,830 -- 36,830
Net Unrealized Depreciation on
Forward Foreign Currency Contracts -- (10,124) -- (10,124)
---------------------------------------------------------------------------------------------------
Total Other Financial Instruments $ (1,828) $ 542,011 -- $ 540,183
===================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
The following is a summary of the fair valuation of certain Portfolio's assets
as of February 28, 2015:
---------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------------
Assets:
Futures collateral $154,995 $ -- $ -- $ 154,995
Centrally cleared swap collateral -- 572,988 -- 572,988
Foreign currencies -- 499,979 -- 499,979
Liabilities:
Variation margin for futures contracts 5,476 -- -- 5,476
Variation margin for centrally
cleared swap contracts -- 956 -- 956
---------------------------------------------------------------------------------------------------
Total $160,471 $1,073,923 $ -- $1,234,394
===================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 29
Statement of Assets and Liabilities | 2/28/15 (unaudited)
ASSETS:
Investment in securities (cost $22,291,108) $22,464,932
Repurchase agreements (cost $3,765,000) 3,765,000
---------------------------------------------------------------------------------------
Total investment in securities (cost $26,056,108) 26,229,932
Futures collateral 154,995
Centrally cleared swap collateral 572,988
Foreign currencies, at value (cost $500,236) 499,979
Receivables --
Investment securities sold 842,153
Fund shares sold 15,000
Swap payments 73,268
Dividends 12,598
Interest 46,731
Due from Pioneer Investment Management, Inc. 24,422
Net unrealized appreciation on forward foreign currency contracts 36,830
Net unrealized appreciation on swap contracts 662,909
Net unrealized appreciation on futures contracts 3,375
Other assets 40,275
---------------------------------------------------------------------------------------
Total assets $29,215,455
=======================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 321,439
Trustee fees 1,066
Variation margin for futures contracts 5,476
Variation margin for centrally cleared swap contracts 956
Due to custodian 87,567
Net unrealized depreciation on forward foreign currency contracts 10,124
Net unrealized depreciation on swap contracts 147,604
Net unrealized depreciation on centrally cleared swap contracts 76,639
Net unrealized depreciation on futures contracts 5,203
Swap contracts, net premiums received 1,700,871
Due to affiliates 30,920
Accrued expenses 64,212
---------------------------------------------------------------------------------------
Total liabilities $ 2,452,077
=======================================================================================
NET ASSETS:
Paid-in capital $26,849,105
Distributions in excess of net investment income (218,182)
Accumulated net realized loss on investments, futures contracts,
written swaptions, swap contracts, and foreign currency transactions (504,649)
Net unrealized appreciation on investments 173,824
Net unrealized depreciation on futures contracts (1,828)
Net unrealized appreciation on swap contracts 438,666
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 26,442
---------------------------------------------------------------------------------------
Total net assets $26,763,378
=======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $9,207,217/ 924,001 shares) $ 9.96
Class C (based on $8,820,028/ 888,515 shares) $ 9.93
Class Y (based on $8,736,133/ 875,613 shares) $ 9.98
MAXIMUM OFFERING PRICE:
Class A ($9.96 (divided by) 95.5%) $ 10.43
=======================================================================================
The accompanying notes are an integral part of these financial statements.
30 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
Statement of Operations (unaudited)
For the Six Months Ended 2/28/15
INVESTMENT INCOME:
Dividends $ 128,419
Interest 179,493
--------------------------------------------------------------------------------------
Total investment income $ 307,912
--------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 149,289
Distribution fees
Class A 11,239
Class C 42,336
Transfer Agent fees
Class A 417
Class C 203
Class Y 139
Shareholder communications expense 950
Administrative reimbursement 11,192
Custodian fees 20,924
Registration fees 29,633
Professional fees 45,152
Printing expense 10,868
Pricing fees 5,153
Fees and expenses of nonaffiliated Trustees 2,919
Miscellaneous 13,768
--------------------------------------------------------------------------------------
Total expenses $ 344,182
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (102,378)
--------------------------------------------------------------------------------------
Net expenses $ 241,804
--------------------------------------------------------------------------------------
Net investment income $ 66,108
--------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS, WRITTEN OPTIONS, WRITTEN SWAPTIONS,
SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (41,428)
Futures contracts (524,400)
Written options 7,988
Written swaptions 20,655
Swap contracts (53,815)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 653,238 $ 62,238
--------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 104,153
Futures contracts 84,084
Written swaptions (115,204)
Swap contracts 438,442
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (178,429) $ 333,046
--------------------------------------------------------------------------------------
Net gain on investments, futures contracts, written
swaptions, written options, written swaptions, swap
contracts, and foreign currency transactions $ 395,284
--------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 461,392
======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 31
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------------
Six Months
Ended 2/28/15 12/30/13 (a)
(unaudited) to 8/31/14
----------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 66,108 $ (53,880)
Net realized gain (loss) on investments, futures contracts,
written swaptions, written options, swap contracts, and
foreign currency transactions 62,238 (2,748)
Change in net unrealized appreciation on investments, futures
contracts, written swaptions, swap contracts, and foreign
currency transactions 333,046 304,058
----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 461,392 $ 247,430
----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.33 and $0.00 per share, respectively) $ (290,990) $ --
Class C ($0.28 and $0.00 per share, respectively) (237,127) --
Class Y ($0.35 and $0.00 per share, respectively) (292,420) --
----------------------------------------------------------------------------------------------
Total distributions to shareowners $ (820,537) $ --
----------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:(b)
Net proceeds from sale of shares $ 580,467 $ 25,836,911
Reinvestment of distributions 820,537 --
Cost of shares repurchased (313,644) (49,178)
----------------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund
share transactions $ 1,087,360 $ 25,787,733
----------------------------------------------------------------------------------------------
Net increase in net assets $ 728,215 $ 26,035,163
NET ASSETS:
Beginning of period $26,035,163 $ --
----------------------------------------------------------------------------------------------
End of period $26,763,378 $ 26,035,163
----------------------------------------------------------------------------------------------
Undistributed (distributions in excess) of net investment income $ (218,182) $ 536,247
==============================================================================================
(a) Class A, Class C, and Class Y shares commenced operations on December 30,
2013.
(b) At February 28, 2015, PIM owned 93.4% of the value of the outstanding shares
of Pioneer Long/Short Opportunistic Credit Fund.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
----------------------------------------------------------------------------------------
'15 Shares '15 Amount
(unaudited) (unaudited) '14 Shares '14 Amount
----------------------------------------------------------------------------------------
Class A*
Shares sold 27,115 $ 272,396 895,300 $8,956,897
Reinvestment of distributions 29,815 290,990 -- --
Less shares repurchased (27,238) (268,157) (991) (10,000)
----------------------------------------------------------------------------------------
Net increase 29,692 $ 295,229 894,309 $8,946,897
========================================================================================
Class C*
Shares sold 30,446 $ 305,925 836,825 $8,368,181
Reinvestment of distributions 24,346 237,127 -- --
Less shares repurchased (1,679) (16,407) (1,423) (14,178)
----------------------------------------------------------------------------------------
Net increase 53,113 $ 526,645 835,402 $8,354,003
========================================================================================
Class Y*
Shares sold -- $ 2,146 851,088 $8,511,833
Reinvestment of distributions 29,930 292,420 -- --
Less shares repurchased (2,928) (29,080) (2,477) (25,000)
----------------------------------------------------------------------------------------
Net increase 27,002 $ 265,486 848,611 $8,486,833
========================================================================================
* Class A, Class C, and Class Y shares commenced operations on December 30,
2013.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 33
Financial Highlights
------------------------------------------------------------------------------------
Six Months
Ended
2/28/15 12/30/13
(unaudited) to 8/31/14
------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.11 $ 10.00
------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.04 $ (0.01)
Net realized and unrealized gain (loss) on investments 0.14 0.12
------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.18 $ 0.11
------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.33) $ --
------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.15) $ 0.11
------------------------------------------------------------------------------------
Net asset value, end of period $ 9.96 $ 10.11
====================================================================================
Total return* 1.83% 1.10%(a)
Ratio of net expenses to average net assets 1.70%** 1.70%**
Ratio of net investment income (loss) to
average net assets 0.67%** (0.15)%**
Portfolio turnover rate 128%** 100%**
Net assets, end of period (in thousands) $ 9,207 $ 9,040
Ratios with no waiver of fees and assumption
of expenses by the Adviser and no reduction
for fees paid indirectly:
Total expenses to average net assets 2.50%** 2.85%**
Net investment income (loss) to average net assets (0.13)%** (1.30)%**
====================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) Not annualized.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
------------------------------------------------------------------------------------
Six Months
Ended
2/28/15 12/30/13
(unaudited) to 8/31/14
------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.06 $ 10.00
------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.00(a) $ (0.06)
Net realized and unrealized gain (loss) on investments 0.15 0.12
------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.15 $ 0.06
------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.28) $ --
------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.13) $ 0.06
------------------------------------------------------------------------------------
Net asset value, end of period $ 9.93 $ 10.06
====================================================================================
Total return* 1.53% 0.60%(b)
Ratio of net expenses to average net assets 2.45%** 2.45%**
Ratio of net investment income (loss) to
average net assets (0.08)%** (0.91)%**
Portfolio turnover rate 128%** 100%**
Net assets, end of period (in thousands) $ 8,820 $ 8,403
Ratios with no waiver of fees and
assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Total expenses to average net assets 3.23%** 3.58%**
Net investment income (loss) to average net assets (0.86)%** (2.04)%**
====================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) Amount rounds to less than $0.01 per share.
(b) Not annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 35
Financial Highlights (continued)
------------------------------------------------------------------------------------
Six Months
Ended
2/28/15 12/30/13
(unaudited) to 8/31/14
------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.13 $ 10.00
------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.05 $ 0.01(a)
Net realized and unrealized gain (loss) on investments 0.15 0.12
------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.20 $ 0.13
------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.35) $ --
------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.15) $ 0.13
------------------------------------------------------------------------------------
Net asset value, end of period $ 9.98 $ 10.13
====================================================================================
Total return* 2.00% 1.30%(b)
Ratio of net expenses to average net assets 1.45%** 1.45%**
Ratio of net investment income (loss)
to average net assets 0.92%** 0.10%**(a)
Portfolio turnover rate 128%** 100%**
Net assets, end of period (in thousands) $ 8,736 $ 8,592
Ratios with no waiver of fees and
assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Total expenses to average net assets 2.23%** 2.58%**
Net investment income (loss) to average net assets 0.14%** (1.03)%**
====================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) The amount shown for a share outstanding does not correspond to the Net
Investment Loss on the Statement of Operations due to the timing of sales
and repurchases of shares.
(b) Not annualized.
The accompanying notes are an integral part of these financial statements.
36 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
Notes to Financial Statements | 2/28/15 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Long/Short Opportunistic Credit Fund (the Fund) is one of five
portfolios comprising Pioneer Series Trust V, a Delaware statutory trust. The
Fund is registered under the Investment Company Act of 1940 as a diversified,
open-end management investment company. The Fund's investment objective is to
seek total return.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Class A, Class C and Class Y shares commenced operations on December
30, 2013. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 37
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 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. Shares of
money market mutual funds are valued at such funds' net asset value. Cash
may include overnight time deposits at approved financial institutions.
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 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 advisor, 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. 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.
38 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
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. 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.
At February 28, 2015, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services or broker-dealers).
B. Investment Income & Transactions
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are accreted/
amortized for financial reporting purposes over the life of the respective
securities, and such accretion/amortization is included in interest income.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income is recorded on the
accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in the market price of those securities but are included
with the net realized and unrealized gain or loss on investments.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 39
D. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
February 28, 2015 was $154,995. 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. The use of futures contracts involves, to
varying degrees, elements of market, interest rate, currency exchange rate
and counterparty risks, which may exceed the amount recognized by the Fund.
Changes in value of the contracts may not directly correlate to the changes
in value of the underlying securities. The average value of contracts open
during the six months ended February 28, 2015 was $16,556,033.
At February 28, 2015, open futures contracts were as follows:
--------------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation
Type Long/(Short) Month Value (Depreciation)
--------------------------------------------------------------------------------------
F/C 90 Day Euro Future (54) 6/17 $(13,242,150) $ 3,375
U.S. 5 Year Note (CBT) (6) 3/15 (719,953) (5,203)
--------------------------------------------------------------------------------------
$(13,962,103) $ (1,828)
======================================================================================
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).
40 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
F. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
August 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 remain subject to examination by
federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. There were no distributions paid
during the fiscal year ended August 31, 2014.
The following shows the components of distributable earnings (losses) on a
federal income tax basis at August 31, 2014:
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $820,428
Capital loss carryforward (651,754)
Unrealized appreciation 104,744
----------------------------------------------------------------------------
Total $273,418
============================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of the losses on wash sales, adjustments
relating to catastrophe bonds and credit default swaps and the mark to
market of forwards, swaps and future contracts.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 41
G. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $45 in underwriting commissions on the sale of Class A shares during
the six months ended February 28, 2015.
H. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the 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).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
I. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
J. 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 Fund securities. A credit default
swap index is used to hedge risk or take a position on a basket of credit
entities or indices. As a seller of protection, the Fund would be required
to pay the
42 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
notional (or other agreed-upon) value of the referenced debt obligation to
the counterparty in the event of a default by a U.S. or foreign corporate
issuer of a debt obligation, which would likely result in a loss to the
Fund. In return, the Fund would receive from the counterparty a periodic
stream of payments during the term of the contract provided that no event of
default occurred. The maximum exposure of loss to the seller would be the
notional value of the credit default swaps outstanding. If no default
occurs, the Fund would keep the stream of payments and would have no payment
obligation. The Fund may also buy credit default swap contracts in order to
hedge against the risk of default of debt securities, in which case the Fund
would function as the counterparty referenced above.
When the Fund enters into a credit default swap contract, the protection
buyer makes an up front payment to the protection seller in exchange for the
rights to receive a contingent payment. An up front payment made by the
Fund, as the protection buyer, is recorded as an asset in the Statement of
Assets and Liabilities. Periodic payments received or paid by the Fund are
recorded as realized gains or losses in the Statement of Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Payments received or made as a result of a credit event or upon
termination of the contract are recognized, net of the appropriate amount of
the upfront payment, as realized gains or losses in the Statement of
Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by the
Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as variation margin on
centrally cleared swaps on the Statement of Assets and Liabilities.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 43
Open credit default swap contracts at February 28, 2015 are listed in the
Schedule of Investments. The average value of credit default swap contracts
open during the six months ended February 28, 2015 was $922,659.
K. Interest Rate Swap Contracts
The Fund may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance its income. Pursuant to the
interest rate swap agreement, the Fund negotiates with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly basis.
Periodic payments received or paid by the Fund are recorded as realized
gains or losses in the Statement of Operations. Interest rate swap contracts
are marked-to-market daily using valuations supplied by independent sources
and the change in value, if any, is recorded as unrealized appreciation or
depreciation in the Statement of Assets and Liabilities. Interest rate swap
contracts are subject to counterparty risk and movements in interest rates.
Open interest rate swap contracts at February 28, 2015 are listed in the
Schedule of Investments. The average value of interest rate swap contracts
open during the six months ended February 28, 2015 was $84,669.
L. Credit Default Swaption Writing
The Fund may write put and covered call swaptions on portfolio securities in
order to attempt to hedge against changes in the value of portfolio
securities or to seek to increase total return. When a swaption is written,
the Fund receives a premium and becomes obligated to purchase or sell the
underlying security at a fixed price upon the exercise of the swaption. When
the Fund writes a swaption, an amount equal to the premium received by the
Fund is recorded as a liability and is subsequently adjusted to the current
value of the swaption written. Premiums received from writing swaptions that
expire unexercised are treated by the Fund on the expiration date as
realized gains from investments. The difference between the premium and the
amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain or, if the premium is less
than the amount paid for the closing purchase transaction, as a realized
loss. If a call swaption is exercised, the premium is added to the proceeds
from the sale of the underlying security in determining whether the Fund has
realized a gain or loss. The Fund as writer of a swaption bears the market
risk of an unfavorable change in the price of the security underlying the
written swaption.
44 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
The average value of contracts open during the six months ended February 28,
2015 was $1,494.
The Fund did not hold any written swaption contracts at February 28, 2015.
Transactions in written swaptions for the six months ended February 28, 2015
are summarized as follows:
----------------------------------------------------------------------------
Number of Premiums
Contracts Received
----------------------------------------------------------------------------
Options outstanding at beginning of period (10,200,000) $ 134,640
Options opened (482) 59,843
Options exercised 260 (33,308)
Options closed -- --
Options expired 10,200,222 (161,175)
----------------------------------------------------------------------------
Options outstanding at end of period -- $ --
============================================================================
M. 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.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at an annual rate of 1.15% of
the average daily net assets of the Fund up to $1 billion and 1.05% of the
Fund's average daily net assets over $1 Billion. For the six months ended
February 28, 2015, the annualized management fee was equivalent to 1.15% of the
Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.70%, 2.45% and 1.45% of the average daily
net assets attributable to Class A, Class C and Class Y shares, respectively.
These expense limitations are in effect through January 1, 2016. Fees waived and
expenses reimbursed during the six months ended February 28, 2015 are reflected
on the Statement of Operations. Fees and expenses of other investment companies
in which the Fund may invest are not included in the expense limitations noted
above. There can be no assurance that PIM will extend the expense limitation
agreement for a class of shares beyond the date referred to above.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 45
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
$23,455 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 28, 2015.
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 six months ended February 28, 2015, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $607
Class C 155
Class Y 188
--------------------------------------------------------------------------------
Total $950
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $258 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2015.
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 $7,207 in distribution fees payable to
PFD at February 28, 2015.
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
46 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
within 12 months of purchase. Redemptions of Class C shares within 12 months
of purchase are subject to a CDSC of 1.00%, based on the lower of cost or
market value of shares being redeemed. Shares purchased as part of an exchange
remain subject to any CDSC that applied to the original purchase of those
shares. There is no CDSC for Class Y. Proceeds from the CDSCs are paid to
PFD. For the six months ended February 28, 2015, no CDSCs were paid to PFD.
5. Forward Foreign Currency Contracts
At February 28, 2015, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the six months ended February 28, 2015 was
$4,209,384.
Open forward foreign currency contracts at February 28, 2015 were as follows:
---------------------------------------------------------------------------------------------------
Quantity Net
Purchased/ Book Settlement US $ Value Unrealized
Currency Counterparty (Sold) Value Date at 2/28/15 Appreciation
---------------------------------------------------------------------------------------------------
CHF (Swiss
Franc) Citibank NA (349,803) $ 370,206 5/26/15 $(367,912) $ 2,294
EURO (European
Euro) Citibank NA (772,121) 877,651 5/26/15 (864,885) 12,766
EURO (European
Euro) Citibank NA 195,187 221,723 5/26/15 (218,405) 3,318
HUF (Hungarian
Forint) Citibank NA (22,866,777) 84,792 5/26/15 (84,270) 522
JPY (Japanese
Yen) Citibank NA (75,780,622) 636,505 5/26/15 (633,799) 2,706
THB (Thai
Baht) Citibank NA 1,638,521 50,650 2/27/15 (50,619) 31
TRY (Turkish
Lira) Citibank NA (499,159) 197,707 5/26/15 (194,744) 2,963
CZK (Czech JP Morgan
Koruna) Chase Bank (8,077,094) 333,706 5/26/15 (328,982) 4,724
EURO (European JP Morgan
Euro) Chase Bank (142,515) 161,743 5/26/15 (159,637) 2,106
GBP (British
Pound JP Morgan
Sterling) Chase Bank (162,879) 251,609 5/26/15 (251,254) 355
IDR (Indonesian JP Morgan
Rupiah) Chase Bank 2,147,349,986 (162,309) 5/26/15 163,695 1,386
MXN (Mexican JP Morgan
Peso) Chase Bank 4,848,978 (322,171) 5/26/15 322,879 708
SGD (Singapore JP Morgan
Dollar) Chase Bank (454,684) 333,907 5/26/15 (332,926) 981
ZAR (South JP Morgan
African Rand) Chase Bank (1,944,611) 166,289 5/26/15 (164,319) 1,970
---------------------------------------------------------------------------------------------------
$ 36,830
===================================================================================================
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 47
---------------------------------------------------------------------------------------------------
Quantity Net
Purchased/ Book Settlement US $ Value Unrealized
Currency Counterparty (Sold) Value Date at 2/28/15 Depreciation
---------------------------------------------------------------------------------------------------
CAD (Canadian
Dollar) Citibank NA (569,367) $ 452,530 5/26/15 $(454,459) $ (1,929)
NOK (Norwegian
Krone) Citibank NA 2,545,315 (334,179) 5/26/15 331,295 (2,884)
SEK (Swedish
Krona) Citibank NA (2,814,545) 335,018 5/26/15 (337,604) (2,586)
AUD (Australian JP Morgan
Dollar) Chase Bank (602,260) 468,094 5/26/15 (468,199) (105)
CLP (Chilean JP Morgan
Peso) Chase Bank (52,791,592) 84,352 5/26/15 (84,961) (609)
INR Indian JP Morgan
Rupee Chase Bank 29,755,622 (473,816) 5/26/15 473,334 (482)
TWD (New JP Morgan
Taiwan Dollar) Chase Bank (9,544,776) 302,155 5/26/15 (303,684) (1,529)
---------------------------------------------------------------------------------------------------
$(10,124)
===================================================================================================
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 six months ended February 28, 2015, 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 February 28, 2015.
-------------------------------------------------------------------------------------------------
Assets:
Net
Gross Amounts Gross Amounts
Amounts of Assets Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement ------------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received* Amount
-------------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 36,830 $ -- $ 36,830 $ -- $ -- $ 36,830
Swap contracts 662,909 (224,243) 438,666 -- -- 438,666
-------------------------------------------------------------------------------------------------
$699,739 $(224,243) $475,496 $ -- $ -- $475,496
=================================================================================================
48 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
-------------------------------------------------------------------------------------------------
Liabilities:
Net
Gross Amounts of Gross Amounts
Amounts Liabilities Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement ------------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Received* Amount
-------------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 10,124 $ -- $10,124 $ -- $ -- $10,124
Swap contracts 224,243 (224,243) -- -- -- --
-------------------------------------------------------------------------------------------------
$234,367 $(224,243) $10,124 $ -- $ -- $10,124
=================================================================================================
8. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of February 28, 2015 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 Net unrealized Net unrealized
currency contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $ 36,830 currency contracts $ 10,124
Swap contracts Net unrealized Net unrealized
appreciation on depreciation on
swap contracts 662,909 swap contracts 224,243
Futures contracts Net unrealized Net unrealized
appreciation on depreciation on
futures contracts -- futures contracts 1,828
----------------------------------------------------------------------------------------------
Total $669,739 $236,195
==============================================================================================
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 49
The effect of derivative instruments on the Statement of Operations for the six
months ended February 28, 2015 was as follows:
-----------------------------------------------------------------------------------------------
Change in
Derivatives Not Realized Unrealized
Accounted for as Gain or Appreciation or
Hedging Instruments (Loss) 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
currency contracts forward foreign currency contracts $ 761,012
Forward foreign Change in unrealized appreciation
currency contracts (depreciation) on forward foreign
currency contracts $(189,588)
Written options Net realized gain (loss) on
written options $ 7,988
Written swaptions Net realized gain (loss) on
written swaptions $ 20,655
Written swaptions Change in unrealized appreciation
(depreciation) on written swaptions $(115,204)
Futures contracts Net realized gain (loss) on
futures contracts $(524,400)
Futures contracts Change in net unrealized appreciation
(depreciation) on futures contracts $ 84,084
Swap contracts Net realized gain (loss) on
swap contracts $ (53,815)
Swap contracts Change in net unrealized appreciation
(depreciation) on swap contracts $ 438,442
50 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Long/Short Opportunistic Credit Fund (the Fund) pursuant to an
investment advisory agreement between PIM and the Fund. In order for PIM to
remain the investment adviser of the Fund, the Trustees of the Fund must
determine annually whether to renew the investment advisory agreement for the
Fund.
The contract review process began in January 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,
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 51
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 performance
52 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
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 fifth quintile relative to the management fees
paid by other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoint in the management fee schedule and the
reduced fee rate above a certain asset level. The Trustees noted the investment
management expertise and resources required to implement the Fund's complex
investment strategy. The Trustees considered that the expense ratio of the
Fund's Class A shares for the twelve months ended June 30, 2014 was in the fifth
quintile relative to its Morningstar peer group and in the fifth 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
noted the Fund's relatively small asset size compared to most of the other funds
in its peer groups, and that the Fund has not been able to take advantage of the
economies of scale afforded by greater asset size. The Trustees considered the
impact of transfer agency, sub-transfer agency, and other non-management fee
expenses on the expense ratios of the Fund. The Trustees noted that they
separately review the Fund's transfer agency, sub-transfer agency and
intermediary arrangements.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 53
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Fund's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Fund is subject. The Trustees
also considered the different entrepreneurial risks associated with PIM's
management of the Fund and Pioneer's management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
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.
54 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 55
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
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.
* Ms. Monchak is a non-voting Advisory Trustee.
56 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
This page for your notes.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 57
This page for your notes.
58 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
This page for your notes.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15 59
This page for your notes.
60 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/15
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) 2015 Pioneer Investments 27687-01-0415
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
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.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust V
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date April 29, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date April 29, 2015
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date April 29, 2015
* Print the name and title of each signing officer under his or her signature.