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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 811-10455
Pioneer Global High Yield Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2004 through April 30, 2005
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
PIONEER
-----------------------
GLOBAL
HIGH YIELD
FUND
Semiannual
Report
4/30/05
[Logo] Pioneer
Investments(R)
Table of Contents
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Letter to Shareowners 1
Portfolio Summary 2
Prices and Distributions 3
Performance Update 4
Comparing Ongoing Fund Expenses 7
Portfolio Management Discussion 9
Schedule of Investments 13
Financial Statements 27
Notes to Financial Statements 34
Factors Considered by the Independent Trustees in Approving
the Management Contract 41
The Pioneer Family of Mutual Funds 46
Trustees, Officers and Service Providers 47
Pioneer Global High Yield Fund
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LETTER TO SHAREOWNERS 4/30/05
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Dear Shareowner,
- --------------------------------------------------------------------------------
U.S. stocks moved higher early in 2005, with the Standard & Poor's 500 Stock
Index and the Dow Jones Industrial Average advancing to three-year highs in
early March. But from then on, soaring prices for heating oil and gasoline, plus
the steady ratcheting up of interest rates by the Federal Reserve Board
overwhelmed sentiment and caused stocks to retrace their gains. By the end of
April, the Dow Industrials, the S&P 500 and the tech-heavy NASDAQ composite were
in negative territory for the year.
With investors less welcoming of risk and the economy giving mixed signals,
value stocks were more resilient than growth stocks. In addition,
large-capitalization stocks held up better than small- and mid-sized issues that
might be more vulnerable in an economic "soft patch," in the phrase of Federal
Reserve Board Chairman Alan Greenspan.
Determined to prevent damaging inflation, the Fed has repeatedly raised
short-term interest rates. As a result, bond returns were modestly negative in
most sectors. Fixed-income investors also became more risk-averse; high-yield
and other corporate sectors retrenched after a run of stellar performance while
Treasuries and mortgage-backed securities showed small declines, with long-term
issues showing positive. Municipal revenue bonds trended higher even against a
backdrop of heavy new issuance by states and localities.
Higher U.S. interest rates enhanced the dollar's appeal and brought at least a
pause in its long, sharp drop. But the stronger dollar muted returns for U.S.
investors in overseas markets. Globally, economies rich in metals and other
industrial commodities continued to thrive on heavy demand from China and
elsewhere. Meanwhile, growth in Japan may have stalled, and Europe's expansion
moved ahead slowly.
We believe that the U.S. economy and corporate earnings will continue to grow at
a moderate pace. Oil prices have receded from their record highs, but high
energy costs and rising interest rates may be in the headlines for a while.
Looking beyond present concerns, Pioneer's global investment experts continue to
find stocks and bonds with attractive long-term potential for our domestic and
international funds.
Expanding your opportunities
This period was like all others; different classes of investments delivered
different returns. That's why allocating your portfolio across several
investment categories is one way to seek wider opportunities. Pioneer's
disciplined approach and growing range of products are designed to help you
achieve this important objective. For thoughtful guidance on how to align your
portfolio with your goals, contact your financial professional.
Please consider a fund's investment objective, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about each fund and should be read carefully before you invest or send money. To
obtain a prospectus and for other information on any Pioneer fund, contact your
financial advisor, call 1-800-225-6292 or visit our web site at
www.pioneerfunds.com.
Respectfully,
/s/ Osbert M. Hood
Osbert M. Hood,
President
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
1
Pioneer Global High Yield Fund
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PORTFOLIO SUMMARY 4/30/05
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[The following data was represented as a pie chart in the printed material]
Corporate Bonds 89.9%
Foreign Government Bonds 4.2%
Temporary Cash Investment 3.0%
Convertible Corporate Bonds 1.0%
Municipal Bonds 1.0%
Collateralized Mortgage Obligations 0.5%
Asset Backed Securities 0.4%
10 Largest Holdings
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(As a percentage of total long-term securities)
1. Kvaerner A.S., 0.0%, 10/30/11 2.12%
2. Braskem SA, 11.75%, 1/22/14 2.03
3. CSN Islands IX Corp., 10.0%, 1/15/15 (144A) 1.88
4. Noble Group, Ltd., 6.625%, 3/17/15 (144A) 1.78
5. J Ray McDermott SA, 11.0%, 12/15/13 (144A) 1.60
6. Invista, 9.25%, 5/1/12 (144A) 1.58
7. Stanadyne Corp., 0.0%, 2/15/15 1.48
8. Continental Air, Inc., 7.568%, 12/1/06 1.41
9. Basell Finance Co., 8.1%, 3/15/27 (144A) 1.33
10. Alrosa Finance SA, 8.875%, 11/17/14 (144A) 1.26
This list excludes temporary cash and derivative instruments. The portfolio is
actively managed, and current holdings may be different.
2
Pioneer Global High Yield Fund
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PRICES AND DISTRIBUTIONS
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Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 4/30/05 10/31/04
- ------- --------- ---------
A $11.83 $11.79
B $11.80 $11.76
C $11.77 $11.74
Distributions Per Share
- --------------------------------------------------------------------------------
11/1/04 - 4/30/05
-------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.4510 $ - $ -
B $0.4035 $ - $ -
C $0.4065 $ - $ -
3
Pioneer Global High Yield Fund
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PERFORMANCE UPDATE 4/30/05 CLASS A SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund at public offering price,
compared to that of the Merrill Lynch (ML) Global High Yield and Emerging
Markets Plus Index.
Average Annual Total Returns
(As of April 30, 2005)
Net Asset Public
Value Offering
Period (NAV) Price (POP)
Life-of-Class
(8/27/01) 15.18% 13.75%
1 Year 13.42 8.32
[The following data was represented as a mountain chart in the printed
material.]
Pioneer Global ML Global High Yield and
High Yield Fund Emerging Markets Plus Index
8/01 9550 10000
10163 10158
4/03 12102 11603
14238 13335
4/30 16148 14721
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
POP returns reflect deduction of maximum 4.5% sales charge. NAV results
represent the percent change in net asset value per share. Returns would have
been lower had 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.
The Fund will charge a 2% redemption fee on proceeds from shares redeemed or
exchanged within 30 days of acquiring (either by purchasing or exchanging) Fund
shares. See the prospectus for complete details.
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.
The Fund's investment advisor, Pioneer Investment Management, Inc., reduced its
management fee and subsidized other Fund expenses; otherwise, returns would have
been lower.
Index comparison begins on August 31 2001. The ML Global High Yield and Emerging
Markets Plus Index tracks the performance of the below- and border-line
investment-grade global debt markets denominated in the major developed market
currencies. The Index includes sovereign issuers rated BBB1 and lower along with
corporate issuers rated BB1 and lower. There are no restrictions on issuer
country of domicile. However, the bonds must be publicly issued in a developed
market (i.e., investment-grade country). Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. You cannot invest directly in an Index.
4
Pioneer Global High Yield Fund
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PERFORMANCE UPDATE 4/30/05 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund, compared to that of the
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index.
Average Annual Total Returns
(As of April 30, 2005)
If If
Period Held Redeemed
Life-of-Class
(12/1/03) 11.06% 8.39%
1 Year 12.51 8.51
[The following data was represented as a mountain chart in the printed
material.]
Pioneer Global ML Global High Yield and
High Yield Fund Emerging Markets Plus Index
11/03 10000 10000
10277 10318
4/05 11163 11389
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerfunds.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
The Fund will charge a 2% redemption fee on proceeds from shares redeemed or
exchanged within 30 days of acquiring (either by purchasing or exchanging) Fund
shares. See the prospectus for complete details.
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.
During the period, the investment advisor waived or reimbursed certain expenses.
Without this waiver, returns would have been lower.
Index comparison begins November 30, 2003. The ML Global High Yield and Emerging
Markets Plus Index tracks the performance of the below- and border-line
investment-grade global debt markets denominated in the major developed market
currencies. The Index includes sovereign issuers rated BBB1 and lower along with
corporate issuers rated BB1 and lower. There are no restrictions on issuer
country of domicile. However, the bonds must be publicly issued in a developed
market (i.e., investment-grade country). Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. You cannot invest directly in an Index.
5
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/05 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund, compared to that of the
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index.
Average Annual Total Returns
(As of April 30, 2005)
If If
Period Held Redeemed
Life-of-Class
(12/1/03) 10.55% 10.55%
1 Year 12.50 12.50
[The following data was represented as a mountain chart in the printed
material.]
Pioneer Global ML Global High Yield and
High Yield Fund Emerging Markets Plus Index
11/03 10000 10000
10211 10318
4/05 11487 11389
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. 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.
The Fund will charge a 2% redemption fee on proceeds from shares redeemed or
exchanged within 30 days of acquiring (either by purchasing or exchanging) Fund
shares. See the prospectus for complete details.
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.
During the period, the investment advisor waived or reimbursed certain expenses.
Without this waiver, returns would have been lower.
Index comparison begins November 30, 2003. The ML Global High Yield and Emerging
Markets Plus Index tracks the performance of the below- and border-line
investment-grade global debt markets denominated in the major developed market
currencies. The Index includes sovereign issuers rated BBB1 and lower along with
corporate issuers rated BB1 and lower. There are no restrictions on issuer
country of domicile. However, the bonds must be publicly issued in a developed
market (i.e., investment-grade country). Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. You cannot invest directly in an Index.
6
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global High Yield Fund
Based on actual returns from November 1, 2004 through April 30, 2005
Share Class A B C
- --------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
On 11/1/04
Ending Account Value $1,041.70 $1,037.40 $1,036.80
On 4/30/05
Expenses Paid During Period* $ 4.66 $ 8.79 $ 8.43
* Expenses are equal to the Fund's annualized expense ratio of 0.92%, 1.74%
and 1.67% for Class A, Class B and Class C shares, respectively, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the partial year period).
7
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global High Yield Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from November 1, 2004 through April 30, 2005
Share Class A B C
- --------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
On 11/1/04
Ending Account Value $1,020.23 $1,016.17 $1,016.51
On 4/30/05
Expenses Paid During Period* $ 4.61 $ 8.70 $ 8.35
* Expenses are equal to the Fund's annualized expense ratio of 0.92%, 1.74%
and 1.67% for Class A, Class B and Class C shares, respectively, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the partial year period).
8
Pioneer Global High Yield Fund
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PORTFOLIO MANAGEMENT DISCUSSION 4/30/05
- --------------------------------------------------------------------------------
High-yield investments experienced two very different environments during the
six months ending April 30, 2005. During the first half of the period, the
backdrop was very favorable for high-yield investing, as economies throughout
the world continued to expand at healthy rates and corporate profits grew.
However, in the second half of the period, reports of slowing economic growth
raised anxieties, especially as the U.S. Federal Reserve continued to raise
short-term interest rates. In the following discussion, Andrew D. Feltus, a
member of the team managing Pioneer Global High Yield Fund, provides an update
on the Fund, its investment strategies and the investment environment during the
six months.
Q: How did the Fund perform?
A: The Fund continued to outdistance its benchmarks and its competitive peer
group. For the six months ended April 30, 2005, the Fund's Class A shares
returned 4.17% while Class B and Class C shares returned, respectively,
3.74% and 3.68%, all at net asset value. During the same six months, the
Merrill Lynch Global High Yield and Emerging Markets Plus Index rose 1.77%,
while the Merrill Lynch High Yield Master II Index, a benchmark for the
domestic high-yield bond market, was flat with a return of 0.00%. For the
six months, the average return of the 93 competitive funds in the Lipper
Global Income Fund category was 3.34%.
The Fund also sustained a good income stream. The 30-day SEC yield for
Class A shares on April 30, 2005, was 6.80%.
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.
Call 1-800-225-6292 or visit www.pioneerfunds.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.
9
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/05 (continued)
- --------------------------------------------------------------------------------
Q: What were the principal factors affecting performance?
A: Optimism pervaded high-yield bond markets throughout the world during the
first half of the period. The U.S. market was riding the crest of a 4%
growth rate in Gross Domestic Product during 2004. Globally, the 5% growth
rate was the highest in more than 40 years. With earnings also rising,
investor confidence in lower-rated debt - whether corporate bonds or
emerging market sovereign debt - remained high. However, beginning in
February, concerns started to re-emerge about the sustainability of the
positive environment, especially in view of the U.S. Federal Reserve
Board's continued policy to increase short-term interest rates.
In the United States, those worries were exacerbated by poor earnings
reports by auto giants General Motors and Ford. The concern was that if
debt for both GM and Ford were to be downgraded from investment-grade to
below-investment grade, the two companies would together be responsible for
15% of the domestic high-yield bond market. This feared massive technical
change in the high-yield market was enough to send high-yield indices into
a tailspin. (Note to readers: After the fiscal period ended, the Standard &
Poor's rating service downgraded the debt of GM and Ford to BB and BB+,
respectively.)
Outside the United States, there also was evidence of a slowing of growth
in Japan and in Europe, but other markets held up better than the U.S.
high-yield markets.
Q: What contributed to the Fund's strong relative performance?
A: When high-yield bonds were most in demand during the first three months of
the period, we started to sell some of our riskier positions into the
strong market, adopting a more conservative stance during the final three
months when the markets corrected. This helped performance. We tended to
sell the riskier U.S. and European high-yield bonds as well as some
emerging market debt. Within the emerging markets, we focused on those
areas that presented less risk, such as Russia and Peru, rather than
countries with greater risk, such as Venezuela and Turkey. We also reduced
our exposure to non-dollar currencies. For much of the previous two years,
our investments in non-dollar currencies had accounted for 20% or more of
Fund assets, but we reduced that to about 12%. This tactic mitigated the
effects of the strengthening of the U.S. dollar in the final weeks of the
period.
10
Pioneer Global High Yield Fund
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- --------------------------------------------------------------------------------
At the end of the six-month period, on April 30, 2005, we had allocated
approximately 62% of assets to U.S. high-yield corporate debt; 9% to
international high-yield bonds; 28% to emerging market debt, and about 1%
to cash. Average credit quality was B.
In addition, we tended to have good security selection. Several of our
holdings, for example, announced initial public stock offerings which
allowed them to pay down their outstanding high-yield debt. These companies
included Refco, a financial clearing house, and Celanese, a chemical
company.
Q: What were some of the other investments that notably influenced
performance?
A: Two of our holdings, Metro PCS, a wireless telecommunications service
provider, and Ardent Healthcare, a managed care company, bought back
existing high-yield bonds at large premiums to their current prices. The
bonds of Seabulk, an oil and shipping services company, also were tendered
as the company was taken over by Seacore Holdings.
Merger and acquisition activity played a role in Fund performance.
Securities of Bombardier, a Canadian airplane and train manufacturer, rose
as the company sold some of its assets to General Electric, while the value
of bonds issued by Mobifon Holdings, a Romanian company, appreciated on
news that the company was being acquired by Vodafone. We sold the Mobifon
securities.
Our investments in Brazilian corporate bonds were particularly successful.
Bonds that did well included those of Braskem, a chemical company, and CSN,
a steel corporation. Both companies reported strong earnings, and their
bonds paid above-average income in relation to their credit risks.
Securities issued by Ispat, a global steel company with operations in
India, Europe and the United States, also performed well before we reduced
our position because of concerns about future earnings prospects for the
steel industry as the economic cycle progressed.
We also had some disappointments, notably among investments in several
Asian high-yield corporate bonds, including: Vedanta, an Indian metal
company; Asia Aluminum, which is based in China, and Noble Group, a
Singapore-based commodity trader. The value of bonds of all three companies
declined in the final weeks of the six-month period, despite strong
fundamentals in all three firms.
11
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/05 (continued)
- --------------------------------------------------------------------------------
We continue to have confidence in these investments, however, and even
added to our positions to take advantage of the lower prices.
Q: What is your investment outlook?
A: We think high-yield bonds again offer reasonably good investment value,
especially if the Federal Reserve is nearing the conclusion of its cycle of
interest-rate hikes. We feel if the Fed stops raising rates in the coming
months, economic growth and fundamentals should continue to be positive,
and corporate credit should be good.
We expect to continue to seek investment opportunities through good
selection of companies, countries and currencies.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. When interest rates rise, the prices of fixed-income
securities in the Fund will generally fall. Conversely, when interest rates fall
the prices of fixed-income securities in the Fund will generally rise. Because
the portfolio invests in a limited number of companies a change in one
security's value may have a more significant effect on the portfolio's value.
Investments in the Fund are subject to possible loss due to the financial
failure of underlying securities and their inability to meet their debt
obligations. These risks may increase share price volatility.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
12
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/05 (unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
CONVERTIBLE CORPORATE BONDS - 1.0%
Transportation - 1.0%
Marine - 1.0%
$ 4,500,000 CP Ships, Ltd., 4.0%, 6/30/24 (144A) $ 4,201,875
1,600,000 CP Ships, Ltd., 4.0%, 6/30/24 1,494,000
------------
Total Transportation $ 5,695,875
------------
Pharmaceuticals & Biotechnology - 0.0%
Biotechnology - 0.0%
10,000 Cubist Pharmaceuticals, 5.5%, 11/1/08 $ 8,988
------------
Total Pharmaceuticals & Biotechnology $ 8,988
------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $5,855,962) $ 5,704,863
------------
ASSET BACKED SECURITIES - 0.4%
Utilities - 0.4%
Electric Utilities - 0.4%
2,331,890 FPL Energy Wind Funding, 6.876%, 6/27/17 (144A) $ 2,375,613
------------
Total Utilities $ 2,375,613
------------
TOTAL ASSET BACKED SECURITIES
(Cost $2,409,908) $ 2,375,613
------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.5%
Diversified Financials - 0.5%
2,500,000 Tower 2004-2A F 6.376%, 12/15/14 $ 2,492,810
------------
Total Diversified Financials $ 2,492,810
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $2,500,000) $ 2,492,811
------------
CORPORATE BONDS - 90.6%
Energy - 7.4%
Oil & Gas Equipment & Services - 4.9%
1,009,000 Holly Energy Partners LP, 6.25%, 3/1/15 (144A) $ 948,460
7,733,000 J Ray McDermott SA, 11.0%, 12/15/13 (144A) 8,544,965
NOK 85,428,200 Kvaerner ASA, 0.0%, 10/30/11 (d) 11,351,866
1,500,000 Seabulk International, Inc., 9.5%, 8/15/13 1,693,125
29,000,000 Sevan Marine, 9.0%, 3/31/08 4,587,591
------------
$ 27,126,007
------------
The accompanying notes are an integral part of these financial statements.
13
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
Oil & Gas Exploration & Production - 2.4%
$ 60,000 Baytex Energy, Ltd., 9.625%, 7/15/10 (144A) $ 62,550
2,600,000 Baytex Energy, Ltd., 9.625%, 7/15/10 2,710,500
3,335,000 Delta Petroleum Corp. 7.0%, 4/1/15 (144A) 3,151,575
15,000 Energy Partners, Ltd., 8.75%, 8/1/10 15,750
1,900,000 Gaz Capital SA, 8.625%, 4/28/34 (144A) 2,175,500
2,000,000 Gazprom International SA., 7.201%, 2/1/20 (144A) 2,080,000
1,525,000 Stone Energy Corp., 6.75%, 12/15/14 1,448,750
1,400,000 Tengizchevroil LLP, 6.124%, 11/15/14 (144A) 1,403,500
------------
$ 13,048,125
------------
Oil & Gas Refining Marketing & Transportation - 0.1%
300,000 Markwest Energy Partners, 6.875%, 11/1/14
(144A) $ 294,000
------------
Total Energy $ 40,468,132
------------
Materials - 22.2%
Aluminum - 1.2%
6,850,000 Asia Aluminum Holdings, 8.0%, 12/23/11 (144A) $ 6,490,375
------------
Commodity Chemicals - 2.4%
515,000 Arco Chemical Co., 9.8%, 2/1/20 $ 569,075
3,790,000 Aventine Renewable Energy, Floating Rate Note,
12/15/11 (144A) 3,448,900
780,000 Braskem SA, 11.75%, 1/22/14 (144A) 877,500
7,925,000 Invista, 9.25%, 5/1/12 (144A) 8,450,031
------------
$ 13,345,506
------------
Diversified Chemical - 0.2%
640,000 Huntsman International LLC, 10.125%, 7/1/09 $ 851,847
12,000 Huntsman International LLC, 10.125%, 7/1/09 15,972
------------
$ 867,819
------------
Diversified Metals & Mining - 1.9%
2,900,000 Freeport-McMoran Copper & Gold, 6.875%, 2/1/09 $ 2,726,000
2,550,000 Vale Overseas, Ltd., 8.25%, 1/17/34 2,658,375
5,395,000 Vedenta Resources Plc, 6.625%, 2/22/10 (144A) 5,114,298
------------
$ 10,498,673
------------
The accompanying notes are an integral part of these financial statements.
14
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
Forest Products - 1.0%
$ 5,350,000 Sino Forest Corp., 9.125%, 8/17/11 (144A) $ 5,617,500
------------
Metal & Glass Containers - 1.0%
3,885,000 Anchor Glass Container, 11.0%, 2/15/13 $ 3,146,850
2,650,000 Vitro Envases Norteamerica, 10.75%, 7/23/11
(144A) 2,583,750
------------
$ 5,730,600
------------
Paper Packaging - 1.0%
4,325,000 AEP Industries, Inc., 7.875%, 3/15/13 (144A) $ 4,291,745
1,000,000 Vitro Envases Norteamrca, 10.75%, 7/23/11 (144A) 975,000
------------
$ 5,266,745
------------
Paper Products - 2.2%
6,505,000 Graham Packaging Co., 9.875%, 10/15/14 (144A) $ 6,212,275
6,610,000 Mercer International, Inc., 9.25%, 2/15/13 6,081,200
------------
$ 12,293,475
------------
Precious Metals & Minerals - 1.2%
6,400,000 Alrosa Finance SA, 8.875%, 11/17/14 (144A) $ 6,720,000
------------
Specialty Chemicals - 7.5%
7,025,000 Basell Finance Co., 8.1%, 3/15/27 (144A) $ 7,103,898
9,670,000 Braskem SA, 11.75%, 1/22/14 10,878,750
9,605,000 Crystal US Holdings, Inc., 10.5%, 10/1/14 (144A) 6,243,250
5,000,000 Ferro Corp., 7.625%, 5/1/13 5,173,340
1,055,000 OM Group, Inc., 9.25%, 12/15/11 1,065,550
5,700,000 Resolution Performance Products, 13.5%, 11/15/10 6,170,250
1,000,000 Rhodia SA, 8.0%, 6/1/10 (144A) 1,228,132
2,480,000 Rhodia SA, 9.25%, 6/1/11 2,934,141
------------
$ 40,797,311
------------
Steel - 2.6%
1,000,000 CSN Islands VIII Corp., 9.75%, 12/16/13 (144A) $ 1,030,000
9,745,000 CSN Islands IX Corp., 10.0%, 1/15/15 (144A) 10,037,350
3,000,000 Edgen Acquisition Corp., 9.875%, 2/1/11 (144A) 2,925,000
------------
$ 13,992,350
------------
Total Materials $121,620,354
------------
The accompanying notes are an integral part of these financial statements.
15
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
Capital Goods - 5.3%
Aerospace & Defense - 1.4%
$ 1,925,000 Bombardier Capital Funding LP, 6.125%, 5/14/07 $ 2,518,875
5,050,000 Hawk Corp., 8.75%, 11/1/14 5,201,500
------------
$ 7,720,375
------------
Building Products - 0.9%
4,975,000 Builders Firstsource, Inc., Floating Rate Note,
2/15/12 $ 4,825,750
150,000 US Concrete, Inc., 8.375%, 4/1/14 145,125
------------
$ 4,970,875
------------
Construction, Farm Machinery & Heavy Trucks - 0.7%
20,000 Hines Nurseries, Inc., 10.25%, 10/1/11 $ 21,000
2,170,000 Navistar Financial Corp., 6.25%, 3/1/12 (144A) 1,909,600
1,975,000 Navistar International, 7.5%, 6/15/11 1,866,375
------------
$ 3,796,975
------------
Heavy Electrical Equipment - 0.6%
3,030,000 Altra Industrial Motion, 9.0%, 12/1/11 (144A) $ 3,007,275
------------
Trading Companies & Distributors - 1.7%
10,680,000 Noble Group, Ltd., 6.625%, 3/17/15 (144A) $ 9,520,227
------------
Total Capital Goods $ 29,015,727
------------
Commercial Services & Supplies - 6.0%
Diversified Commercial Services - 3.5%
1,500,000 Cornell Co's, Inc., 10.75%, 7/1/12 $ 1,560,000
6,880,000 Hydrochem Industrial Services, 9.25%, 2/15/13
(144A) 6,467,200
5,720,000 Park-Ohio Industries, Inc., 8.375%, 11/15/14
(144A) 5,148,000
6,275,000 United Rentals NA, Inc., 7.75%, 11/15/13 (c) 5,882,813
------------
$ 19,058,013
------------
Environmental Services - 2.1%
5,885,000 Clean Harbors, Inc., 11.25%, 7/15/12 (144A) $ 6,532,350
5,300,000 Waste Services, Inc., 9.5%, 4/15/14 (144A) 5,260,250
------------
$ 11,792,600
------------
The accompanying notes are an integral part of these financial statements.
16
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
Human Resource & Employment Services - 0.4%
$ 2,200,000 Knowledge Learning Center, 7.25%, 2/1/15
(144A) $ 2,090,000
------------
Total Commercial Services & Supplies $ 32,940,613
------------
Transportation - 9.1%
Airlines - 2.9%
1,528,044 American Airlines, 7.377%, 5/23/19 $ 1,013,165
1,888,654 American Airlines, 8.97%, 3/29/08 1,600,805
1,093,916 American Airlines, 9.71%, 1/30/07 1,006,402
810,000 AMR Corp., 9.0%, 8/1/12 603,450
3,158,000 AMR Corp., 9.0%, 9/15/16 (c) 2,321,130
275,000 AMR Corp., 9.8%, 10/1/21 169,125
9,285,000 Continental Air, Inc., 7.568%, 12/1/06 7,555,399
250,000 Northwest Airlines, Inc., 7.875%, 3/15/08 (c) 125,000
3,500,000 Northwest Airlines, Inc., 10.0%, 2/1/09 (c) 1,750,000
------------
$ 16,144,476
------------
Airport Services - 0.1%
525,000 K&F Acquisition, Inc., 7.75%, 11/15/14 (144A) $ 514,500
------------
Marine - 3.4%
5,000,000 H-Lines Finance Holding, 11.0%, 4/1/13 (144A) $ 3,862,500
5,375,000 Ship Finance International, Ltd., 8.5%, 12/15/13 5,106,250
5,460,000 Stena AB, 7.0%, 12/1/16 4,914,000
975,000 Stena AB, 7.5%, 11/1/13 943,313
3,675,000 Trailer Bridge, Inc., 9.25%, 11/15/11 (144A) 3,675,000
------------
$ 18,501,063
------------
Railroads - 2.7%
5,250 Atlantic Express Transport, 12.25%, 4/15/08 $ 5,000,625
4,600,000 Progress Rail Services Corp., 7.75%, 4/1/12
(144A) 4,577,000
4,980,000 TFM SA DE CV, 9.375%, 5/1/12 (144A) 5,004,900
------------
$ 14,582,525
------------
Total Transportation $ 49,742,564
------------
The accompanying notes are an integral part of these financial statements.
17
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
Automobiles & Components - 3.9%
Auto Parts & Equipment - 3.6%
$ 3,874,000 Delphi Corp., 6.55%, 6/15/06 (c) $ 3,622,190
13,800,000 Stanadyne Corp., Floating Rate Note, 2/15/15
(144A) 7,935,000
1,500,000 Stanadyne Corp., 10.0%, 8/15/14 1,455,000
2,450,000 Sun Sage BV, 8.25%, 3/26/09 (144A) 2,535,750
3,140,000 Tenneco Automotive, Inc., 8.625%, 11/15/14
(144A) 2,865,250
1,400,000 UGS Corp., 10.0%, 6/1/12 (144A) 1,498,000
------------
$ 19,911,190
------------
Tires & Rubber - 0.3%
1,850,000 Cooper Standard Auto, 8.375%, 12/15/14 (144A) $ 1,350,500
------------
Total Automobiles & Components $ 21,261,690
------------
Consumer Durables & Apparel - 0.9%
Apparel, Accessories & Luxury Goods - 0.5%
3,580,000 Visant Holding Corp., 0.0%, 12/1/13 (d) $ 2,595,500
------------
Homebuilding - 0.4%
2,820,000 WCI Communities, Inc., 6.625%, 3/15/15 (144A) $ 2,566,200
------------
Total Consumer Durables & Apparel $ 5,161,700
------------
Consumer Services - 0.9%
Casinos & Gaming - 0.6%
3,055,000 MTR Gaming Group, 9.75%, 4/1/10 $ 3,329,950
------------
Hotels, Resorts & Cruise Lines - 0.3%
400,000 Grupo Posadas Sa De CV, 8.75%, 10/4/11
(144A) $ 419,000
1,000,000 Grupo Posadas Sa De CV 8.75%, 10/4/11 (144A) 1,047,500
------------
$ 1,466,500
------------
Total Consumer Services $ 4,796,450
------------
The accompanying notes are an integral part of these financial statements.
18
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
Media - 2.7%
Broadcasting & Cable TV - 2.2%
$ 100,000 Atlantic Broadband Finance LLC, 9.375%,
1/15/14 $ 94,000
1,510,000 Innova S De R.L., 9.375%, 9/19/13 1,651,563
1,875,000 Kabel BW Holdings GMBH, Floating Rate Note,
2/3/15 2,230,409
1,000,000 Kabel Deutsch Holding, Floating Rate Note,
12/15/14 (144A) 1,282,787
2,000,000 Kabel Deutschland, 10.75%, 7/1/14 (144A) 2,854,924
1,060,000 Kabel Deutschland GMBH, 10.625%, 7/1/14 1,118,300
2,100,000 NTL Cable Plc, 8.75%, 4/15/14 (144A) 2,795,125
------------
$ 12,027,108
------------
Publishing - 0.5%
2,665,000 Sheridan Acquisition Corp., 10.25%, 8/15/11 $ 2,818,238
------------
Total Media $ 14,845,346
------------
Retailing - 1.3%
General Merchandise Stores - 1.2%
5,500,000 Ray Acquisition, 9.375%, 3/16/15 (144A) $ 6,542,533
------------
Specialty Stores - 0.1%
590,000 Asbury Automotive Group, 8.0%, 3/15/14 $ 539,850
------------
Total Retailing $ 7,082,383
------------
Food & Drug Retailing - 2.4%
Drug Retail - 1.1%
375,000 Duane Reade, Inc., Floating Rate Note, 12/15/10
(144A) $ 376,875
6,260,000 Duane Reade, Inc., 9.75%, 8/1/11 (c) 5,383,600
------------
$ 5,760,475
------------
Food Distributors - 1.3%
3,250,000 Doane Pet Care Co., 9.75%, 5/15/07 $ 3,201,250
4,095,000 Wornick Co., 10.875%, 7/15/11 4,176,900
------------
$ 7,378,150
------------
Total Food & Drug Retailing $ 13,138,625
------------
The accompanying notes are an integral part of these financial statements.
19
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
Food, Beverage & Tobacco - 0.8%
Brewers - 0.8%
$ 4,519,000 Argentine Beverages, 7.375%, 3/22/12 (144A) $ 4,485,108
120,000 Cia Brasileira de Bebida, 8.75%, 9/15/13 137,400
------------
$ 4,622,508
------------
Total Food, Beverage & Tobacco $ 4,622,508
------------
Health Care Equipment & Services - 2.3%
Health Care Equipment - 1.0%
5,989,000 Hanger Orthopedic Group, 10.375%, 2/15/09 (c) $ 5,689,550
------------
Health Care Facilities - 0.6%
2,515,000 Ardent Health Systems, 10.0%, 8/15/13 $ 3,045,917
------------
Health Care Services - 0.7%
1,760,000 AMR Holdco/Emcar Holdco, 10.0%, 2/15/15
(144A) $ 1,848,000
2,365,000 Rural/Metro Corp., 9.875%, 3/15/15 (144A) 2,246,750
------------
$ 4,094,750
------------
Total Health Care Equipment & Services $ 12,830,217
------------
Pharmaceuticals & Biotechnology - 2.0%
Pharmaceuticals - 2.0%
5,350,000 Mayne Group, Ltd., 5.875%, 12/1/11 (144A) $ 5,189,500
5,890,000 Warner Chilcott Corp., 8.75%, 2/1/15 (144A) 5,772,200
------------
$ 10,961,700
------------
Total Pharmaceuticals & Biotechnology $ 10,961,700
------------
Banks - 2.8%
Diversified Banks - 2.8%
4,575,000 ATF Bank JSC, 9.25%, 4/12/12 (144A) $ 4,513,695
1,250,000 Citigroup (CJSC Russian), 8.75%, 4/14/07 1,272,750
3,300,000 Halyk Savings Bk Kazaktn, 8.125%, 10/7/09
(144A) 3,374,250
6,170,000 Turanalem Finance BV, 8.5%, 2/10/15 (144A) 6,170,000
------------
Total Banks $ 15,330,695
------------
The accompanying notes are an integral part of these financial statements.
20
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
Diversified Financials - 3.1%
Investment Banking & Brokerage - 1.4%
$ 4,960,000 Refco Finance Holdings, 9.0%, 8/1/12 (144A) $ 5,356,800
2,100,000 Sistema Finance SA, 10.25%, 4/14/08 2,267,790
------------
$ 7,624,590
------------
Diversified Financial Services - 1.7%
1,625,000 Bombardier Capital, Inc., 7.09%, 3/30/07 $ 1,635,156
2,360,000 Dollar Financial Group, 9.75%, 11/15/11 2,478,000
5,250,000 Glencore Funding LLC, 6.0%, 4/15/14 (144A) 4,972,706
10,000 MDP Acquisitions Plc, 10.125%, 10/1/12 (144A) 13,567
------------
$ 9,099,429
------------
Total Diversified Financials $ 16,724,019
------------
Insurance - 0.8%
Life & Health Insurance - 0.3%
1,881,000 Presidential Life Corp., 7.875%, 2/15/09 $ 1,862,190
------------
Multi-Line Insurance - 0.1%
600,000 Allmerica Financial Corp., 7.625%, 10/15/25 $ 649,402
------------
Property & Casualty Insurance - 0.4%
2,000,000 Kingsway America, Inc., 7.5%, 2/1/14 $ 2,090,820
------------
Total Insurance $ 4,602,412
------------
Real Estate - 1.2%
Real Estate Investment Trusts - 1.2%
2,738,000 Host Marriot LP, 6.375%, 3/15/15 (144A) $ 2,604,523
10,000 Meristar Hospitality Operations Finance Corp.,
10.5%, 6/15/09 10,500
3,750,000 Trustreet Properties, Inc., 7.5%, 4/1/15 (144A) 3,759,375
------------
Total Real Estate $ 6,374,398
------------
Software & Services - 1.6%
Application Software - 1.1%
4,445,000 Riverdeep Group, Ltd., 9.25%, 4/15/11 (144A) $ 6,116,417
------------
Internet Software & Services - 0.5%
2,950,000 Hanarotelecom, Inc., 7.0%, 2/1/12 (144A) $ 2,827,133
------------
Total Software & Services $ 8,943,550
------------
The accompanying notes are an integral part of these financial statements.
21
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
Technology Hardware & Equipment - 0.9%
Electronic Equipment & Instruments - 0.0%
$ 15,000 General Cable Corp., 9.5%, 11/15/10 $ 15,900
------------
Electronic Manufacturing Services - 0.9%
5,210,000 Sanmina-Sci Corp., 6.75%, 3/1/13 (144A) $ 4,662,950
------------
Office Electronics - 0.0%
100,000 Xerox Corp., 8.0%, 2/1/27 $ 101,000
------------
Total Technology Hardware & Equipment $ 4,779,850
------------
Semiconductors - 0.3%
2,000,000 Magnachip Semiconductor, 8.0%, 12/15/14 $ 1,730,000
------------
Total Semiconductors $ 1,730,000
------------
Telecommunication Services - 8.6%
Integrated Telecommunication Services - 1.9%
2,500,000 Eschelon Operating Co., 8.375%, 3/15/10 $ 2,168,750
1,900,000 Eschelon Operating Co., 8.375%, 3/15/10 1,648,250
5,270,000 Tele Norte Leste Participacoes, 8.0%, 12/18/13 5,270,000
2,450,000 Zeus Special Sub, Ltd., Floating Rate Note,
2/1/15 (144A) 1,482,250
------------
$ 10,569,250
------------
Wireless Telecommunication Services - 6.7%
1,750,000 Alamosa Delaware, 8.5%, 1/31/12 $ 1,811,250
2,350,000 Horizon PCS, Inc., 11.375%, 7/15/12 (144A) 2,596,750
5,500,000 Inmarsat Finance Plc, Floating Rate Note,
11/15/12 4,070,000
6,400,000 Iwo Escrow Co., Floating Rate Note, 1/15/15
(144A) 4,032,000
3,315,000 MetroPCS, Inc., 10.75%, 10/1/11 (144A) 3,861,975
3,000,000 Mobile Telesystems Finance, 8.0%, 1/28/12 3,000,000
1,889,000 Mobile Telesystems Finance, 8.375%, 10/14/10
(144A) 1,936,225
10,000 Rogers Cantel, Inc., 10.5%, 6/1/06 8,452
8,200,000 Rogers Wireless, Inc., 7.625%, 12/15/11 6,643,368
2,535,000 Ubiquitel Operating Co., 9.875%, 3/1/11 2,744,138
2,000,000 UBS Vimpelcom, 8.0%, 2/11/10 (144A) 1,990,000
The accompanying notes are an integral part of these financial statements.
22
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
Wireless Telecommunication Services - continued
$ 1,850,000 UBS Vimpelcom, 8.375%, 10/22/11 (144A) $ 1,850,000
1,750,000 UBS Vimpelcom, 10.0%, 6/16/09 (144A) 1,863,750
------------
$ 36,407,908
------------
Total Telecommunication Services $ 46,977,158
------------
Utilities - 4.1%
Electric Utilities - 2.9%
5,907,000 AES Chivor, 9.75%, 12/30/14 (144A) $ 5,951,303
1,865,000 FPL Energy National Wind, 6.125%, 3/25/19
(144A) 1,807,950
2,850,000 Juniper Generation, 6.79%, 12/31/14 (144A) 2,817,339
5,435,331 Ormat Funding Corp., 8.25%, 12/30/20 5,408,154
------------
$ 15,984,746
------------
Multi-Utilities & Unregulated Power - 0.5%
2,670,000 Reliant Energy, Inc., 6.75%, 12/15/14 $ 2,362,950
------------
Water Utilities - 0.7%
2,950,000 FG4 SA, 8.375%, 4/30/15 (144A) $ 3,926,484
------------
Total Utilities $ 22,274,180
------------
TOTAL CORPORATE BONDS
(Cost $504,774,552) $496,224,270
------------
The accompanying notes are an integral part of these financial statements.
23
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
FOREIGN GOVERNMENT BONDS - 4.2%
ITL 2,100,000,000 Banco Nac De Desen Econo, 8.0%, 4/28/10 $ 1,465,223
2,405,000 Federal Republic of Brazil, 7.875%, 3/7/15 2,320,825
4,150,000 Republic of Columbia, 10.75%, 1/15/13 4,704,025
COP 10,258,000,000 Republic of Columbia, 12.0%, 10/22/15 4,244,027
285,000 Republic of Ecuador, 0.0%, 8/15/30 (d) 228,000
4,500,000 Republic of Panama, 7.25%, 3/15/15 4,668,750
3,000,000 Republic of Peru, 8.375%, 5/3/16 3,210,000
570,000 Republic of Peru, 9.875%, 2/6/15 669,038
1,000,000 United Mexican States, 5.5%, 2/17/20 1,316,866
------------
$ 22,826,754
------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $22,567,997) $ 22,826,754
------------
MUNICIPAL BONDS - 1.0%
Government - 1.0%
2,500,000 Badger Tobacco Asset Securitization Corp.,
6.375%, 6/1/32 $ 2,553,325
15,000 New Jersey Economic Development Authority
Special Facility Revenue, 7.0%, 11/15/30 13,158
500,000 Tobacco Settlement Financing Corp.,
6.125%, 6/1/32 503,820
1,100,000 Tobacco Settlement Financing Corp.,
6.25%, 6/1/42 1,108,052
1,000,000 Tobacco Settlement Financing Corp.,
7.0%, 6/1/41 1,080,550
------------
$ 5,258,905
------------
Municipal Facilities - 0.0%
250,000 East Chicago Industry Exempt Facilities,
7.0%, 1/1/14 $ 265,383
------------
Total Government $ 5,524,288
------------
TOTAL MUNICIPAL BONDS
(Cost $4,858,253) $ 5,524,288
------------
The accompanying notes are an integral part of these financial statements.
24
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
TEMPORARY CASH INVESTMENT - 3.0%
Securities Lending Collateral - 3.0%
16,610,398 Securities Lending Investment Fund, 2.88% $ 16,610,398
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $16,610,398) $ 16,610,398
------------
TOTAL INVESTMENT IN SECURITIES - 100.7%
(Cost 559,577,070) (a)(b) $551,758,995
------------
OTHER ASSETS AND LIABILITIES - (0.7)% $ (3,911,338)
------------
TOTAL NET ASSETS - 100% $547,847,659
============
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 April 30, 2005, the
value of these securities amounted to $288,994,038 or 52.8% of total net
assets.
(a) At April 30, 2005, the net unrealized gain on investments based on cost for
federal income tax purposes of $559,578,059 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $ 9,029,024
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (16,848,087)
------------
Net unrealized loss $ (7,819,064)
============
(b) Distribution of investment by country of issue, as a percentage of total
investment in securities (excluding temporary cash investments), is as
follows:
United States 69.0%
Brazil 3.7
Mexico 3.6
Norway 3.2
Columbia 3.2
France 3.2
Ecuador 2.7
Russia 2.2
Sweden 1.8
Luxembourg 1.7
Australia 1.7
United Kingdom 1.6
Ireland 1.5
Canada 0.9
-----
100.0%
=====
The accompanying notes are an integral part of these financial statements.
25
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
(c) At April 30, 2005, the following securities were out on loan:
Market
Shares Security Value
607,000 AMR Corp., 9.0%, 9/15/16 $ 446,145
2,905,500 Delphi Corp., 6.55%, 6/15/06 2,716,643
3,544,000 Duane Reade, Inc., 9.75%, 8/1/11 3,047,840
4,251,750 Hanger Orthopedic Group, 10.375% 2/15/09 4,039,163
2,625,000 Northwest Airlines, Inc., 10.0%, 2/1/09 1,312,500
187,000 Northwest Airlines, Inc., 7.875%, 3/15/08 93,500
4,368,750 United Rentals NA, Inc., 7.75%, 11/15/13 4,095,703
-----------
Total $15,751,494
===========
(d) Debt obligation initially issued at one coupon which converts to a higher
coupon at a specified date. The rate shown is the rate at period end.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 2005 aggregated $432,978,700 and $67,284,496,
respectively.
Note: Principal amounts are denominated in US dollars unless otherwise denoted:
COP Columbian Peso
ITL Italian Lira
NOK Norwegian Kroner
The accompanying notes are an integral part of these financial statements.
26
Pioneer Global High Yield Fund
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 4/30/05
- -----------------------------------------------------------------------------
ASSETS:
Investment in securities (including securities loaned of
$15,751,494) (cost $559,577,070) $551,758,995
Cash 6,167,973
Foreign currencies, at value (cost $2,843,649) 2,836,270
Receivables -
Fund shares sold 6,080,596
Interest 11,952,884
Other 119,713
------------
Total assets $578,916,431
------------
LIABILITIES:
Payables -
Investment securities purchased $ 9,807,375
Fund shares repurchased 2,234,032
Dividends 1,656,643
Upon return of securities loaned 16,610,398
Due to affiliates 737,965
Accrued expenses 22,359
------------
Total liabilities $ 31,068,772
------------
NET ASSETS:
Paid-in capital $552,091,981
Undistributed net investment income 669,666
Accumulated net realized gain on investments and foreign
currency transactions 2,820,252
Net unrealized loss on investments (7,818,075)
Net unrealized gain on forward foreign currency contracts
and other assets and liabilities denominated in foreign
currencies 83,835
------------
Total net assets $547,847,659
============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $243,039,293/20,551,594 shares) $ 11.83
============
Class B (based on $71,832,838/6,086,618 shares) $ 11.80
============
Class C (based on $232,975,528/19,791,529 shares) $ 11.77
============
MAXIMUM OFFERING PRICE:
Class A ($11.83 [divided by] 95.5%) $ 12.39
============
The accompanying notes are an integral part of these financial statements.
27
Pioneer Global High Yield Fund
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- -----------------------------------------------------------------------------
For the Six Months Ended 4/30/05 (unaudited)
INVESTMENT INCOME:
Interest $ 16,173,658
Income from securities loaned, net 82,869
------------
Total investment income $ 16,256,527
------------
EXPENSES:
Management fees $ 1,309,312
Transfer agent fees and expenses
Class A 126,155
Class B 42,412
Class C 101,861
Distribution fees
Class A 202,369
Class B 222,046
Class C 840,841
Administrative reimbursements 29,088
Custodian fees 18,317
Registration fees 82,924
Professional fees 5,814
Printing expense 11,581
Fees and expenses of nonaffiliated trustees 3,917
Miscellaneous 6,658
------------
Total expenses $ 3,003,295
Less management fees waived and expenses
reimbursed by Pioneer Investment Management, Inc. (465,983)
Less fees paid indirectly (2,748)
------------
Net expenses $ 2,534,564
------------
Net investment income $ 13,721,963
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on:
Investments $ 2,818,744
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 83,847 $ 2,902,591
------------ ------------
Change in net unrealized gain (loss) on:
Investments $(13,227,855)
Forward foreign currency contracts and other assets
and liabilities denominated in foregin currencies 94,011 $(13,133,844)
------------ ------------
Net loss on investments and foreign currency
transactions $(10,231,253)
------------
Net increase in net assets resulting from operations $ 3,490,710
============
The accompanying notes are an integral part of these financial statements.
28
Pioneer Global High Yield Fund
- -----------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------
For the Six Months Ended 4/30/05 and the Year Ended 10/31/04
Six Months
Ended
4/30/05 Year Ended
(unaudited) 10/31/04
FROM OPERATIONS:
Net investment income $ 13,721,963 6,189,994
Net realized gain (loss) on investments 2,902,591 (145,194)
Change in net unrealized gain (loss) on investments (13,133,844) 5,332,646
------------- ---------
Net increase in net assets resulting from
operations $ 3,490,710 11,377,446
------------- ----------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.46 and $0.89 per share, respectively) $ (6,029,452) (2,348,993)
Class B ($0.40 and $0.81 per share, respectively) (1,480,064) (703,070)
Class C ($0.41 and $0.76 per share, respectively) (5,619,042) (3,014,693)
Net realized gain:
Class A ($0.00 and $0.21 per share, respectively) - (15,555)
Class B ($0.00 and $0.21 per share, respectively) - (18)
Class C ($0.00 and $0.21 per share, respectively) - (18)
------------- ----------
Total distributions to shareowners $ (13,128,558) $ (6,082,347)
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 421,137,378 $ 187,814,852
Reinvestment of distributions 5,644,160 2,242,239
Cost of shares repurchased (52,268,039) (13,228,162)
------------- -------------
Net increase in net assets resulting from Fund
share transactions $ 374,513,499 $ 176,828,929
------------- -------------
Net increase in net assets $ 364,875,653 $ 182,124,028
NET ASSETS:
Beginning of period 182,972,008 847,980
------------- -------------
End of period (including undistributed net investment
income of $669,666 and $76,261, respectively) $ 547,847,659 $ 182,972,008
============= =============
The accompanying notes are an integral part of these financial statements.
29
Pioneer Global High Yield Fund
- -----------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- -----------------------------------------------------------------------------
'05 Shares '05 Amount
(unaudited) (unaudited) '04 Shares '04 Amount
CLASS A
Shares sold 16,429,129 $ 199,760,515 6,555,677 $ 74,330,596
Reinvestment of distributions 235,716 2,845,839 77,768 885,202
Less shares repurchased (2,053,780) (24,823,408) (767,916) (7,819,960)
---------- ------------- --------- ------------
Net increase 14,611,065 $ 177,782,946 5,865,529 $ 67,395,838
========== ============= ========= ============
CLASS B
Shares sold 4,496,830 $ 54,519,799 1,824,415 $ 20,850,138
Reinvestment of distributions 49,033 590,721 21,373 242,401
Less shares repurchased (194,339) (2,345,909) (110,694) (1,251,239)
---------- ------------- --------- ------------
Net increase 4,351,524 $ 52,764,611 1,735,094 $ 19,841,300
========== ============= ========= ============
CLASS C
Shares sold 13,802,809 $ 166,857,064 8,154,427 $ 92,634,118
Reinvestment of distributions 183,526 2,207,600 98,280 1,114,636
Less shares repurchased (2,076,204) (25,098,722) (371,309) (4,156,963)
---------- ------------- --------- ------------
Net increase 11,910,131 $ 143,965,942 7,881,398 $ 89,591,791
========== ============= ========= ============
The accompanying notes are an integral part of these financial statements.
30
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/05 Year Ended Year Ended Year Ended 8/27/01(a) to
(unaudited) 10/31/04 10/31/03 10/31/02 10/31/03
CLASS A
Net asset value, beginning of period $ 11.79 $ 11.31 $ 8.56 $ 9.51 $ 10.00
-------- -------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.46 $ 0.69 $ 1.00 $ 1.02 $ 0.12
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 0.03 0.89 2.75 (0.95) (0.49)
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations $ 0.49 $ 1.58 $ 3.75 $ 0.07 $ (0.37)
Distributions to shareowners:
Net investment income (0.45) (0.89) (1.00) (1.02) (0.12)
Net realized gain - (0.21) - - -
-------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ 0.04 $ 0.48 $ 2.75 $ (0.95) $ (0.49)
-------- -------- -------- -------- --------
Net asset value, end of period $ 11.83 $ 11.79 $ 11.31 $ 8.56 $ 9.51
======== ======== ======== ======== ========
Total return* 4.17% 14.82% 45.58% 0.31% (3.65)%
Ratio of net expenses to average net assets+ 0.92%** 0.75% 0.75% 0.75% 0.75%**
Ratio of net investment income to average net assets+ 7.75%** 8.02% 9.76% 10.79% 7.17%**
Portfolio turnover rate 37%** 50% 124% 47% 89%**
Net assets, end of period (in thousands) $243,039 $ 70,063 $ 848 $ 642 $ 713
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.19%** 1.41% 14.37% 18.70% 30.55%**
Net investment income (loss) 7.48%** 7.36% (3.68)% (7.16)% (22.63)%**
Ratios with waiver of management fees by PIM and reduction
for fees paid indirectly:
Net expenses 0.92%** 0.75% 0.75% 0.75% 0.75%**
Net investment income 7.75%** 8.02% 9.76% 10.79% 7.17%**
(a) The Fund commenced operations on 8/27/01 and was first publicly offered on
December 1, 2003.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
31
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/05 12/1/03(a) to
(unaudited) 10/31/04
CLASS B
Net asset value, beginning of period $ 11.76 $ 11.47
------- -------
Increase from investment operations:
Net investment income $ 0.41 $ 0.82
Net realized and unrealized gain on investments and
foreign currency transactions 0.03 0.49
------- -------
Net increase from investment operations $ 0.44 $ 1.31
Distributions to shareowners:
Net investment income (0.40) (0.81)
Net realized gain - (0.21)
------- -------
Net increase in net asset value $ 0.04 $ 0.29
------- -------
Net asset value, end of period $ 11.80 $ 11.76
======= =======
Total return* 3.74% 12.12%
Ratio of net expenses to average net assets+ 1.74%** 1.58%**
Ratio of net investment income to average net assets+ 7.01%** 7.26%**
Portfolio turnover rate 37%** 50%
Net assets, end of period (in thousands) $71,833 $20,408
Ratios with no waiver of management fees and
assumption of expenses by PIM and no reduction for
fees paid indirectly:
Net expenses 1.98%** 2.20%**
Net investment income 6.77%** 6.64%**
Ratios with waiver of management fees paid by PIM
and reduction for fees paid indirectly:
Net expenses 1.74%** 1.58%**
Net investment income 7.01%** 7.26%**
(a) Class B shares were first publicly offered December 1, 2003.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period, and no sales
charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
32
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------
Six Months
Ended
4/30/05 12/1/03(a) to
(undaudited) 10/31/04
CLASS C
Net asset value, beginning of period $ 11.74 $ 11.47
-------- --------
Increase from investment operations:
Net investment income $ 0.42 $ 0.77
Net realized and unrealized gain on investments and
foreign currency transactions 0.02 0.47
-------- --------
Net increase from investment operations $ 0.44 $ 1.24
Distributions to shareowners:
Net investment income (0.41) (0.76)
Net realized gain - (0.21)
-------- --------
Net increase in net asset value $ 0.03 $ 0.27
-------- --------
Net asset value, end of period $ 11.77 $ 11.74
======== ========
Total return* 3.68% 11.45%
Ratio of net expenses to average net assets+ 1.67%** 1.51%**
Ratio of net investment income to average net assets+ 7.01%** 7.30%**
Portfolio turnover rate 37%** 50%
Net assets, end of period (in thousands) $232,976 $ 92,501
Ratios with no waiver of management fees and
assumption of expenses by PIM and no reduction for
fees paid indirectly:
Net expenses 1.91%** 2.11%**
Net investment income 6.77%** 6.70%**
Ratios with waiver of management fees by PIM and
reduction for fees paid indirectly:
Net expenses 1.67%** 1.51%**
Net investment income 7.01%** 7.30%**
(a) Class C shares were first publicly offered on December 1,2003.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period, and no sales
charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
33
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/05 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Global High Yield Fund (the Fund), is a Delaware statutory trust,
registered under the Investment Company Act of 1940 as a non-diversified,
open-end management investment company. The Fund was organized on May 5, 2001
and commenced operations on August 27, 2001. Prior to August 27, 2001 the Fund
had no operations other than those relating to organizational matters and the
initial capitalization of the Fund by Pioneer Funds Distributor, Inc. (PFD). The
Fund's shares, including Class A Shares, were first publicly offered on December
1, 2003. Prior to December 1, 2003, the Fund shares outstanding were owned by
PFD. The investment objective of the Fund is to maximize total return through a
combination of income and capital appreciation.
The Fund offers three classes of shares - Class A, Class B, and Class C shares.
Shares of Class A, Class B, and Class C each represent an interest in the same
portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidation, except that each class of shares can
bear different transfer agent and distribution fees and have exclusive voting
rights with respect to the distribution plans that have been adopted by Class A,
Class B, and Class C shareowners, respectively.
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:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, securities are valued at the last sale price
on the principal exchange where
34
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
they are traded. Fixed income securities with remaining maturities of more
than 60 days are valued at prices supplied by independent pricing services,
which consider such factors as Treasury spreads, yields, maturities and
rating. Valuations may be supplemented by dealers and other sources, as
required. Securities for which market quotations are not readily available
are valued at their fair values as determined by, or under the direction of
the Board of Trustees and may include yield equivalents or a pricing
matrix. The Fund also may use the fair value of a security, including a
non-U.S. security, when the closing market price on the principal exchange
where the security is traded no longer reflects the value of the security.
As of April 30, 2005, there were no securities fair valued. Temporary cash
investments are valued at amortized cost.
Discounts and premiums on debt securities are accreted or amortized daily,
respectively, on a yield-to-maturity basis into interest income with a
corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis, net of unrecoverable
foreign taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
The Fund invests in below investment grade (high yield) debt securities and
preferred stocks. Some of these high yield securities may be convertible
into equity securities of the issuer. Debt securities rated below
investment grade are commonly referred to as "junk bonds" and are
considered speculative. These securities involve greater risk of loss, are
subject to greater price volatility, and are less liquid, especially during
periods of economic uncertainty or change, than higher rated debt
securities. The Fund is not diversified, which means that it can invest a
higher percentage of its assets in any one issuer than a diversified fund.
Being non-diversified may magnify the Fund's losses from adverse events
affecting a particular issuer.
The Fund's investments in foreign markets and countries with limited
developing markets may subject the Fund to a greater degree of risk than in
a developed market. These risks include disruptive political or economic
conditions and the imposition of adverse governmental laws or currency
exchange restrictions.
35
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollars actually received. Further,
the effects of changes in foreign currency exchange rates on investments
are not segregated in the statement of operations from the effects of
changes in market price of those securities but are included with the net
realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a
future date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Fund's
financial statements. The Fund records realized gains and losses at the
time a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar. At April 30, 2005, the Fund
had no outstanding portfolio or settlement hedges.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with
36
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
federal income tax rules. Therefore, the sources of the Fund's
distributions may be shown in the accompanying financial statements as
either from or in excess of net investment income or net realized gain on
investment transactions, or from paid-in capital, depending on the type of
book/tax differences that may exist.
The tax character of current year distributions paid will be determined at
the end of the current fiscal year. The tax character of distributions paid
during the year ended October 31, 2004 were as follows:
- --------------------------------------------------
2004
- --------------------------------------------------
Distributions paid from:
Ordinary income $6,066,756
Long-term capital gain 15,591
Return of capital -
----------
Total $6,082,347
==========
- --------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2004:
- --------------------------------------------------
2004
- --------------------------------------------------
Undistributed ordinary income $ 77,249
Capital loss carryforward (82,339)
Unrealized appreciation 5,398,616
----------
Total $5,393,526
==========
- --------------------------------------------------
The difference between book basis and tax basis unrealized appre ciation is
attributable to accrued interest on defaulted bonds.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. PFD,
the principal underwriter for the Fund and a wholly owned indirect
subsidiary of UniCredito Italiano S.p.A. (UniCredito Italiano), earned
$247,902 in underwriting commissions on the sale of Class A shares during
the six months ended April 30, 2005.
37
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
F. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C of the Fund, respectively (see
Note 4). Shareowners of each class share all expenses and fees paid to the
transfer agent, Pioneer Investment Management Shareholder Services, Inc.
(PIMSS), for its services, which are allocated based on the number of
accounts in each class and the ratable allocation of related out-of-pocket
expenses (see Note 3). Income, common expenses and realized and unrealized
gains and losses are calculated at the Fund level and allocated daily to
all classes of shares based on their respective percentage of adjusted net
assets at the beginning of the day.
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner, at the same time, and in the same
amount, except that Class A, Class B, and Class C shares can bear different
transfer agent and distribution fees.
G. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
payments in lieu of dividends on the securities loaned. Gain or loss on the
fair value of the loaned securities that may occur during the term of the
loan will be for the account of the Fund. The loans are secured by
collateral of at least 102%, at all times, of the fair value of the
securities loaned. The amount of collateral will be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. The
Fund has the right under the lending agreement to recover the securities
from the borrower on demand. The Fund invests cash collateral in the
Securities Lending Investment Fund, which is managed by Brown Brothers
Harriman & Co., the Fund's custodian.
38
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary of
UniCredito Italiano, the Fund's investment adviser, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.70% of
the Fund's average daily net assets up to $500 million; and 0.65% of the next
$500 million; and 0.60% on the assets over $1 billion.
Through March 1, 2005, PIM has agreed not to impose all or a portion of its
management fee and to assume other operating expenses of the Fund to the extent
necessary to limit Class A expenses to 0.75% of the average daily net assets
attributable to Class A shares; the portion of Fund expenses attributable to
Class B and Class C shares will be reduced only to the extent such expenses are
reduced for Class A shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At April 30, 2005, $322,722 was payable to PIM
related to management fees, administrative costs and certain other services and
is included in due to affiliates.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in due to affiliates is $114,732 in transfer agent
fees payable to PIMSS at April 30, 2005.
4. Distribution and Service Plans
The Fund adopted Plans of Distribution with respect to each class of shares
(Class A Plan, Class B Plan, and Class C Plan) in accordance with Rule 12b-1 of
the Investment Company Act of 1940. Pursuant to the Class A Plan, the Fund pays
PFD a service fee of up to 0.25% of the average daily net assets attributable to
Class A shares in reimbursement of its actual expenditures to finance activities
primarily intended to result in the sale of Class A shares. Pursuant to the
Class B Plan and the Class C Plan, the Fund pays PFD 1.00% of the average daily
net assets attributable to each class of shares. The fee consists of a 0.25%
service fee and a 0.75% distribution fee paid as compensation for personal
services and/or account maintenance
39
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
services or distribution services with regard to Class B and Class C shares.
Included in due to affiliates is $300,511 in distribution fees payable to PFD at
April 30, 2005.
In addition, redemptions of certain classes of shares may be subject to a
contingent deferred sales charge (CDSC). Effective February 1, 2004, a CDSC of
1.00% may be imposed on redemptions of certain net asset value purchases of
Class A shares within 18 months of purchase (12 months for shares purchased
prior to February 1, 2004). Class B shares subscribed on or after December 1,
2004 that are redeemed within five years of purchase are subject to a CDSC at
declining rates beginning at 4.00%, based on the lower of cost or market value
of shares being redeemed. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid to
PFD. The six months ended April 30, 2005, CDSCs in the amount of $74,806 were
paid to PFD.
Effective March 2, 2004, the Fund charges a 2.0% redemption fee on Class A,
Class B, and Class C shares sold within 30 days of purchase. The fee does not
apply to certain types of transactions as described in the Fund's prospectus.
For the six months ended April 30, 2005, the Fund collected $72,608 in
redemption fees, which are included in the Fund's capital account.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended April 30, 2005, the Fund's expenses
were reduced by $2,748 under such arrangements.
40
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT
- --------------------------------------------------------------------------------
The Investment Company Act of 1940 requires that both the Board of Trustees and
a majority of the Independent Trustees (collectively "the Trustees") vote
separately annually to approve the Fund's management contract (the "Management
Contract"). The Trustees have determined that the terms of the Management
Contract are fair and reasonable and that renewal of the contract will enable
the Fund to receive quality investment advisory services at a cost deemed
reasonable and in the best interests of the Fund and its shareholders. In making
such determinations, the Independent Trustees relied upon the assistance of
counsel to the Independent Trustees and counsel to the Fund.
Throughout the year, the Independent Trustees regularly met in executive session
separately from the Interested Trustees of the Fund and any officer of Pioneer
Investment Management, Inc., the Fund's adviser (the "Investment Adviser"), or
its affiliates. While the Trustees, including the Independent Trustees, act on
all major matters relating to the Fund, a significant portion of the activities
of the Board of Trustees (including certain of those described herein) is
conducted through committees, the members of which are comprised exclusively of
Independent Trustees. Such committee meetings are attended by officers of the
Fund or the Investment Adviser to the extent requested by the members of the
committee.
In evaluating the Management Contract, the Trustees conducted a review that was
specifically focused upon the renewal of the Management Contract, and relied
upon their knowledge, resulting from their meetings throughout the year, of the
Investment Adviser, its services and the Fund. Both in meetings specifically
dedicated to renewal of the Management Contract and at other meetings during the
course of the year, the Trustees, including the Independent Trustees, received
materials relating to the Investment Adviser's investment and management
services under the Management Contract. These materials included (i) information
on the investment performance of the Fund, a peer group of funds and two
indices, in each case selected by the Independent Trustees for this purpose,
(ii) sales and redemption data in respect to the Fund, (iii) the general
investment outlook in the markets in which the Fund invests, (iv) arrangements
in respect of the distribution of the Fund's shares, (v) the procedures employed
to determine the value of each of the Fund's assets, (vi) the Investment
Adviser's management of the relationships with the Fund's unaffiliated service
providers, (vii) the record of compliance with the
41
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
Fund's investment policies and restrictions and with the Fund's Code of Ethics
and the structure and responsibilities of the Investment Adviser's compliance
department, (viii) the nature, cost and character of non-investment management
services provided by the Investment Adviser and its affiliates and (ix) the
disclosures included in the Fund's prospectuses and reports to shareholders.
Specifically in connection with the Independent Trustees' review of the
Management Contract, the Independent Trustees requested and the Investment
Adviser provided additional information in order to evaluate the quality of the
Investment Adviser's services and the reasonableness of the fee under the
Management Contract. Among other items, this information included data or
analyses of (1) investment performance for one and three years and life of the
Fund periods for the Fund and a peer group selected by the Independent Trustees
for this purpose, (2) management fees incurred by a peer group of funds selected
by the Independent Trustees for this purpose, (3) the advisory fees of
comparable portfolios of other clients of the Investment Adviser, (4) expense
ratios for the Fund and a peer group of funds selected by the Independent
Trustees for this purpose, (5) the overall organization of the Investment
Adviser, (6) the Investment Adviser's financial results and condition, including
its and certain of its affiliates profitability from services performed for the
Fund, (7) transfer agency fees and administrative reimbursements paid to the
Investment Adviser or affiliates, (8) investment management staffing, and (9)
operating expenses paid to third parties. The Trustees also reviewed information
regarding the potential for the Fund and the Investment Adviser to benefit from
further economies of scale in the management of the Fund in light of reasonable
growth expectations for the Fund and certain of the Fund's expenses that are not
incurred as fees based on a percentage of net assets.
The following summarizes matters considered by the Trustees in connection with
their renewal of the Fund's Management Contract. The Trustees did not identify
any single factor as all-important or controlling, and the summary does not
detail all the matters that were considered.
A. Ancillary Benefits to Shareholders. The Trustees considered the benefits to
shareholders of investing in a Fund that is part of a large number of
investment companies offering a variety of
42
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
investment disciplines and providing for a large variety of Fund and
shareholder services.
B. Compliance and Investment Performance. The Trustees determined that the
Investment Adviser had policies and systems reasonably designed to achieve
compliance with the Fund's investment objectives and regulatory
requirements. The Trustees also reviewed the Fund's investment performance
based upon total return, as well as the Fund's performance compared to both
the performance of a peer group and an index, in each case selected by the
Independent Trustees for this purpose. The Fund's performance based upon
total return was in the first quintile of the peer group for the 12 months
ended June 30, 2004. (In all quintile rankings referred to throughout this
discussion first quintile is most favorable to the Fund's shareholders.
Thus, highest relative performance would be first quintile and lowest
relative expenses also would be first quintile.) The Trustees concluded
that the performance of the Fund supported the continuation of the
Management Contract.
C. The Investment Adviser's Personnel and Methods. The Trustees reviewed the
background of members of the team responsible for the daily management of
the Fund and the Fund's investment objective and discipline. The
Independent Trustees also have had discussions with senior management of
the Investment Adviser responsible for investment operations and the senior
management of the Investment Adviser's equities group. Among other things,
the Trustees considered the number, education and experience of the
Investment Adviser's investment staff and their use of technology and
emphasis on analytics in view of the risk profile of securities in which
the Fund invests. The Trustees concluded that the Investment Adviser had
the quality and depth of personnel and the well-developed methods essential
to performing its duties under the Management Contract.
D. Nature and Quality of Other Services. The Trustees considered the nature,
quality, cost and extent of other services provided to shareholders of the
Fund, including administrative and shareholder services performed by the
Investment Adviser under the Management Contract. The Trustees also
considered the reasonableness of the arrangements for reimbursement of the
Investment Adviser's out-of-pocket costs and expenses, including overhead,
for certain
43
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
administrative services that the Investment Adviser is not required to
provide under the Management Contract. The Trustees also considered the
nature and extent of the other services provided by the Investment
Adviser's affiliates under other contracts and its supervision of third
party service providers. Based on these considerations, the Trustees
concluded that the nature, quality, cost and extent of such services are
satisfactory and reliable and serve the shareholders of the Fund well.
E. Management Fee and Expenses. The Trustees considered the Investment
Adviser's fee under the Management Contract relative to the management fees
charged by a peer group of funds selected by the Independent Trustees for
this purpose using data provided by an independent third party. The Fund's
management fee for the 12 months ended June 30, 2004 was in the third
quintile relative to the management fees paid by the other funds in that
peer group for the comparable period. The Trustees determined that the fee
under the Management Contract was reasonable and fair in light of both the
overall nature and quality of services provided by the Investment Adviser
and the fees charged by the funds in the peer group. The Trustees also
considered the Fund's expense ratio and expense ratios of a peer group of
funds selected by the Independent Trustees for this purpose. The Fund's
expense ratio (after giving effect to the expense limitation) for the 12
months ended June 30, 2004 was in the first quintile of the applicable peer
group for the most recent fiscal year of the peer group for the comparable
period. The Trustees concluded that the Fund's overall expense ratio (after
giving effect to the expense limitation) was lower than that of comparably
sized funds.
F. Profitability. The Trustees considered the level of the Investment
Adviser's profits with respect to the management of the Pioneer Funds,
including details with respect to the Fund. This consideration included a
review of the Investment Adviser's methodology in allocating certain of its
costs to the management of each Fund. The Trustees also considered the
financial results realized by the Investment Adviser in connection with the
operation of the Fund. They further considered the profits realized by the
Investment Adviser and its affiliates from non-fund businesses that may
benefit from or be related to the Fund's business. The Trustees considered
the Investment Adviser's profit margins in comparison with the limited
available industry data. The Trustees concluded
44
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
that the Investment Adviser's profits from management of the Pioneer Funds,
including the financial results derived from the Fund, bear a reasonable
relationship to the services rendered and are fair for the management of
the Fund.
G. Economies of Scale. The Trustees considered the economies of scale with
respect to the management of the Fund, whether the Fund had appropriately
benefited from any economies of scale, and whether there was potential for
realization of any further economies of scale. Because of break points in
the management fee, the Trustees concluded that any perceived or potential
economies of scale would be shared at future asset levels in a reasonable
manner as the Fund grows in size between Fund's shareholders and the
Investment Adviser.
H. Other Benefits to the Investment Adviser. The Trustees also considered the
character and amount of fees paid by the Fund, other than under the
Management Contract, for services provided by the Investment Adviser and
affiliates, including fees for services such as shareholder services. The
Trustees also considered the receipt of sales loads and payments under Rule
12b-1 plans in respect to the Pioneer Funds (including the Fund), and
benefits to the Investment Adviser from the use of "soft" commission
dollars to pay for research and brokerage services. The Trustees further
considered the revenues and profitability of the Investment Adviser's
businesses other than the fund business, including the Investment Adviser's
institutional investment advisory business. The Trustees considered the
intangible benefits that accrue to the Investment Adviser and its
affiliates by virtue of its relationship with the Fund and the Pioneer
Funds as a group. The Trustees concluded that all these types of benefits
accruing to the Investment Adviser were reasonable in the context of the
overall relationship between the Investment Adviser and the Fund.
Conclusion. The Trustees, in light of the Investment Adviser's overall
performance, considered it appropriate to continue to retain the management
services of the Investment Adviser. Based on their evaluation of all material
factors deemed relevant and the advice of independent counsel, the Trustees
concluded that the Management Contract with the Fund is fair and reasonable and
voted to approve the continuation of the Management Contract for another year.
45
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THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
Please consider a fund's investment objectives, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about a fund and should be read carefully before you invest or send money. To
obtain a prospectus and for other information on any Pioneer fund, contact your
advisor, call 1-800-225-6292 or visit our web site at www.pioneerfunds.com.
U.S. Equity Pioneer Ibbotson Growth
Pioneer Fund Allocation Fund
Pioneer Balanced Fund Pioneer Ibbotson Aggressive
Pioneer Cullen Value Fund Allocation Fund
Pioneer Equity Income Fund Pioneer Ibbotson Conservative
Pioneer Equity Opportunity Fund Allocation Fund
Pioneer Growth Opportunities Fund
Pioneer Growth Shares International/Global Equity
Pioneer Mid Cap Growth Fund Pioneer Emerging Markets Fund
Pioneer Mid Cap Value Fund Pioneer Europe Select Fund
Pioneer Oak Ridge Large Cap Pioneer Europe Fund
Growth Fund Pioneer International Equity Fund
Pioneer Oak Ridge Small Cap Pioneer International Value Fund
Growth Fund
Pioneer AmPac Growth Fund(1) Fixed Income
Pioneer Small and Mid Cap Pioneer America Income Trust
Growth Fund(2) Pioneer Bond Fund
Pioneer Growth Leaders Fund(3) Pioneer California Tax Free
Pioneer Strategic Growth Fund(4) Income Fund
Pioneer Real Estate Shares Pioneer Global High Yield Fund
Pioneer Research Fund Pioneer High Yield Fund
Pioneer Small Cap Value Fund Pioneer Municipal Bond Fund
Pioneer Small Company Fund Pioneer Short Term Income Fund
Pioneer Value Fund Pioneer Strategic Income Fund
Pioneer Tax Free Income Fund
Asset Allocation
Pioneer Ibbotson Moderate Money Market
Allocation Fund Pioneer Cash Reserves Fund*
Pioneer Tax Free Money Market Fund
(1) Formerly Pioneer Papp America-Pacific Rim Fund
(2) Formerly Pioneer Papp Small and Mid Cap Growth Fund
(3) Formerly Pioneer Papp Stock Fund
(4) Formerly Pioneer Papp Strategic Growth Fund
* An investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund.
46
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Osbert M. Hood, Executive
Mary K. Bush Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Osbert M. Hood Dorothy E. Bourassa, Secretary
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr 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 6-month period ended August 31, 2004 is publicly available to
shareowners at www.pioneerfunds.com and the Securities and Exchange Commission's
web site at http://www.sec.gov.
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HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvest.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report is authorized for distribution only when preceded or accompanied by
a prospectus for the portfolio being offered. For more information on other
Pioneer mutual funds, including charges and expenses, call 800-225-6292 and
request a prospectus. Please read it carefully before investing or sending
money.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners 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
www.pioneerfunds.com
17627-00-0605
(C)2005 Pioneer Funds Distributor, Inc.
Underwriter of Pioneer mutual funds,
Member SIPC
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
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 accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The Fund's independent auditor, Ernst & Young
LLP ("E&Y"), has advised the Securities
and Exchange Commission, the Public Company
Accounting Oversight Board, and the Audit
Committee of the Fund's Board of Trustees that
certain non-audit work performed by E&Y's China
affiliate raised questions regarding E&Y's
independence with respect to its performance of
audit services for the Fund. In July 2004, E&Y
became aware that member firms in China ("E&Y
China") provided certain tax services to offices of
UniCredito Italiano, S.p.A. ("UCI"), a member of
the Fund's Investment Company Complex. The
services included receipt and disbursement of
monies transferred to E&Y China by UCI in
payment of individual expatriate income taxes due
on returns prepared by E&Y China for certain UCI
employees located in China from October 1998 to
May 2003. E&Y became auditors of the Fund in
May 2002. These expatriate tax services were
discontinued in May 2003. The fees received by
E&Y China for all such services totaled $3,685.
The Fund's Audit Committee and E&Y have
discussed the matter, including the nature of the
services provided, the personnel involved in
providing the services and the fees received by
E&Y for performing the services. E&Y has informed
the Audit Committee that based on its internal reviews
and the de minimis nature of the services provided and
fees received, it does not believe its independence
with respect to the Fund has been impaired.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
N/A
ITEMS 5-6. [RESERVED]
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. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer and principal financial
officer have concluded, that the registrant's disclosure controls and
procedures are effective based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Global High Yield Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date June 28, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date June 28, 2005
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date June 28, 2005
* Print the name and title of each signing officer under his or her signature.