UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21978
Pioneer Series Trust VI
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Amundi Pioneer Asset 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, 2017 through October 31, 2018
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Flexible
Opportunities Fund
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Annual Report | October 31, 2018
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Ticker Symbols:
Class A PMARX
Class C PRRCX
Class K FLEKX
Class R MUARX
Class Y PMYRX
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 17
Consolidated Schedule of Investments 19
Consolidated Financial Statements 35
Consolidated Notes to Financial Statements 44
Report of Independent Registered Public Accounting Firm 61
Additional Information 63
Approval of Investment Management Agreement 65
Trustees, Officers and Service Providers 70
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 1
President's Letter
Despite economic news that has remained generally positive throughout 2018,
market volatility has increased significantly this year compared with 2017.
October was a particularly poor month for both U.S. and global equity markets,
as every major stock market index finished the month in negative territory.
Results have been more mixed on the fixed-income side, with rising interest
rates pushing down most year-to-date returns.
On the economic front, U.S. gross domestic product (GDP) growth exceeded 4% in
the second quarter of 2018 and topped 3% once again in the third quarter. The
low unemployment rate has continued, with initial jobless claims recently
hitting a multi-decade low and consumer and small-business confidence also
achieving levels not seen in many years.
Despite the good economic news, and even though wages have been rising,
inflation expectations have not risen significantly. For its part, the U.S.
Federal Reserve System (the Fed) has continued with its tightening of monetary
policy by raising interest rates three times in 2018, while moving forward with
the tapering of its balance sheet, a process which began in October 2017.
The greater market volatility this year as compared to last year has been
driven by several factors. The aforementioned rising interest rates have been
one reason, while the uncertainty surrounding U.S. trade policy has, at times,
also led to unsettled markets. Of course, in today's global economy, risk
factors extend well beyond U.S. borders, and in recent months investors have
grappled with various issues on the international front, including questions
surrounding the United Kingdom's Brexit negotiations, concerns about the
budgetary policies of the populist Italian government, and the potential impact
of Turkey's economic challenges on European banks. Moreover, while trade
tensions between the U.S. and Europe have moderated, questions about the future
of the U.S./China trade relationship remain unresolved, and any major fracture
in that relationship could have a negative impact on China's economy and, by
extension, on its Asian trade partners.
With regard to our market outlook, over the medium term, we believe the
fundamental investment case for U.S. equities remains in place, with support
from the fairly positive economic backdrop and with an additional lift
potentially coming from the investment side as U.S. businesses consider
increasing capital expenditures. We do believe market volatility will persist
and, therefore, careful selection of investment themes, sector allocations, and
individual stocks will be increasingly relevant to overall performance, as the
2 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
maturity of the economic and market cycles could eventually become headwinds.
We believe a focus on owning shares of quality companies trading at reasonable
prices is key to navigating the current equity-market phase.
In fixed income, we have taken a more cautious approach across our core
portfolios with regard to credit-sensitive debt such as corporate bonds,
favoring quality and liquidity. As interest rates have risen, we find that
short- and intermediate-term U.S. Treasuries have become more attractive, and
that agency mortgage-backed securities (MBS) and high-quality, non-agency MBS
now also offer lower downside risk. In general, we think structured sectors
(such as asset-backed securities and MBS) are more attractive than corporate
sectors.
We believe this year's market fluctuations as well as increased risk factors
within the global economy have served to remind investors of the importance of
active management. Since 1928, active management has been the foundation of
Amundi Pioneer's investment approach. We believe active management is
especially important during periods of volatility, and that our shareowners can
benefit from the experience and tenure of our investment teams, who work
collaboratively to make active and informed decisions across our funds.
As always, and particularly during times of market uncertainty, we encourage
you to work with your financial advisor to develop an overall investment plan
that addresses both your short- and long-term goals, and to implement such a
plan in a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
October 31, 2018
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 3
Portfolio Management Discussion | 10/31/18
In the following discussion, Michele Garau and Howard Weiss review recent
market events and describe the factors that affected the performance of Pioneer
Flexible Opportunities Fund during the 12-month period ended October 31, 2018.
Mr. Garau, a senior vice president and a portfolio manager at Amundi Pioneer
Asset Management, Inc. ("Amundi Pioneer"), is responsible for the management of
the Fund, along with Mr. Weiss, CFA, a vice president and portfolio manager at
Amundi Pioneer, and Kenneth J. Taubes, Executive Vice President, Chief
Investment Officer, U.S., and a portfolio manager at Amundi Pioneer.
Q How did the Fund perform during the 12-month period ended October 31,
2018?
A Pioneer Flexible Opportunities Fund's Class A shares returned -2.08% at
net asset value during the 12-month period ended October 31, 2018, while
the Fund's benchmark, the Bloomberg Barclays U.S. Treasury TIPS 1-10 Year
Index (the Bloomberg Barclays Index), returned -0.61%. During the same
period, the average return of the 283 mutual funds in Morningstar's
Tactical Allocation Funds category was -1.82%.
Q How did the financial markets perform during the 12-month period ended
October 31, 2018?
A The equity and fixed-income markets produced mixed returns over the
period, with the strength of the U.S. economy acting as the main driver of
performance across asset classes. As of the close of the period, U.S.
gross domestic product (GDP) appeared to be on track for a greater-than 3%
expansion for 2018 as a whole, thanks to the combination of significant
tax cuts, deregulation, and stronger fixed-investment spending. In
addition, solid employment numbers and income growth supported both
consumption and housing prices. In turn, positive economic trends led to
corporate profit growth that came in well ahead of expectations. Those
factors contributed to positive performance for U.S. equities for the 12
months, as the Standard & Poor's 500 Index returned 7.4% -- even though
the headline equity indices finished well off their peaks established
earlier in the year after a market sell-off in September and October.
During the final two months of the period, investors appeared to grow
increasingly concerned about the potential for tighter U.S. Federal
Reserve (the Fed) monetary policy in the coming calendar year.
Additionally, stock market performance was hurt by worries that the Trump
administration's protectionist trade policies would result in slower
global economic growth.
4 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Although U.S. stocks ended the period with a solid gain, the story was
quite different overseas. Signs of slowing economic growth in Europe and
China led to negative returns for equities in both the developed and
emerging markets. The two asset classes came under further pressure from
weakness in foreign currencies versus the U.S. dollar (USD). Since
currencies have historically tended to perform well when interest rates
are rising, the Fed's aggressive monetary tightening -- including a number
of rate increases -- relative to other global central banks provided a
strong tailwind for the USD.
The combination of robust economic growth and tighter Fed policy led to
poor returns across the investment-grade bond market. The Fed raised
interest rates four times over the course of the year, and continued to
reduce the size of its balance sheet. What's more, the consensus
expectation was that the Fed would raise rates several more times before
the end of 2019. Emerging markets bonds, which faced the added challenges
of political turmoil in Argentina and Turkey, were particularly poor
performers during the period. However, domestic high-yield bonds, which
benefited from improving economic conditions, posted a narrow gain.
Q Could you discuss some of the investment decisions that factored into the
Fund's benchmark-relative performance during the 12-month period ended
October 31, 2018?
A The Fund's allocation to international equities was the primary reason for
its underperformance relative to the Bloomberg Barclays Index over the
12-month period. An allocation to emerging markets equities was an
especially large detractor from the Fund's benchmark-relative returns,
even though we reduced the size of the position in the latter part of the
period. The Fund's allocation to non-U.S. developed-market equities also
detracted from benchmark-relative performance, as did our decision to add
to the portfolio's weighting in the segment during the second calendar
quarter of 2018, after several months of weakness for foreign currencies.
The downturn, in fact, persisted through the end of October, so increasing
the Fund's allocation detracted even further from benchmark-relative
results by giving the portfolio greater exposure to the ongoing
underperformance of both overseas stocks and the related currencies.
On the positive side, the Fund's allocation to U.S. equities aided
benchmark-relative returns, led by a number of stocks in the health care
and information technology sectors. A portfolio underweight in Treasury
Inflation-Protected Securities (TIPS), which make up 100% of the benchmark
Bloomberg Barclays Index, was an additional positive
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 5
contributor to relative performance. Finally, a small portfolio position
in Greek government debt contributed positively to the Fund's
benchmark-relative performance, and offset the weakness of the Fund's
investments in emerging markets corporate bonds.
Q Can you discuss how you used derivatives as part of your investment
strategy and how the use of derivatives affected the Fund's
benchmark-relative performance during the 12-month period ended October
31, 2018?
A We used derivatives across a broad spectrum of asset classes to establish
specific market or issuer exposure within the portfolio, and to attempt to
hedge downside risk. The derivative instruments we used included equity,
fixed-income, and commodity futures; credit-linked securities; long or
short positions in exchange-traded funds (ETFs); forward foreign currency
contracts; Treasury futures contracts (also long or short positions); and
options on both indices and individual securities. The Fund's use of
derivatives had a positive effect on benchmark-relative results over the
12-month period.
Q Could you discuss your outlook and the Fund's current positioning?
A Our view is that while market volatility is likely to continue, the key
trends in the world economy remain largely intact. Global economic growth
appears to be decelerating somewhat, but unless the U.S. economy runs into
trouble or China falls into recession, there is no reason to believe that
the slowdown will be severe, in our opinion. The growth gap between the
United States and the rest of the world remains large, and all signs
indicate that the trend is set to continue. With that as a backdrop, we
maintained a fairly steady portfolio positioning over the course of the
Fund's fiscal year.
The Fund's asset allocation remains heavily biased toward equities, with a
total weighting of 79% in stocks at the end of October. At the regional
level, the Fund has approximately 41% of its invested assets in North
America, 26% in other developed economies, and 12% in the emerging markets
(primarily China). We have continued to tilt the portfolio toward the
United States, despite rich equity valuations, as we do not see a reason
for a meaningful compression in the country's valuation premium versus the
international markets. Additionally, domestic companies have been buying
back shares at a faster pace than their global peers. While the investment
potential in the foreign developed markets cannot be easily dismissed, we
believe the United States remains the safest option. We find most emerging
markets unattractive on a valuation basis, given that the asset class
has tended to underperform when the Fed is tightening monetary policy. As
a result, we made a sizable reduction in the Fund's weighting in the
emerging markets compared with one year ago.
6 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
At the sector level, we have a preference for investments in aerospace &
defense, U.S. health care, cybersecurity, and luxury & leisure companies.
Overseas, the Fund has positions in European insurance, European and
Singaporean real estate, and banks in Europe, Japan, and the emerging
markets. The portfolio's allocation to bank stocks is structural in
nature, as we expect the sector's fundamentals will benefit from
multi-year tailwinds.
As of period-end, the Fund retains a meaningful allocation to ETFs that
invest in high-quality, dividend-paying* stocks. The PowerShares Buyback
Achievers ETF, which invests in U.S.-listed equities that have repurchased
at least 5% or more of their shares outstanding in the trailing 12 months,
also continues to represent a substantial Fund position. We believe
dividends and share buybacks are an indication of management teams that
prioritize prudent capital allocation.
Conversely, we see little value in fixed-income investments in an
environment of healthy economic growth and tighter central-bank policies.
At present, the Fund has only a small allocation to fixed income, with the
majority held in domestic high-yield and emerging markets debt.
Throughout the course of the Fund's fiscal year, we maintained enough cash
in the portfolio to implement the aspect of our investment strategy that
reflects our desire to maintain sufficient flexibility, with the goal of
capitalizing on potentially higher market volatility in the months ahead.
We also see less of an opportunity cost for holding cash, given that
tighter Fed monetary policies have led to more compelling yields in
certain areas.
The Fund's positioning reflects our understanding of the current economic
climate. With that said, uncertainty persists with respect to how
geopolitical tensions or changes to major trade relationships could
influence fundamentals and undermine economic growth. We therefore remain
acutely focused on determining whether those external considerations may
have an impact on our core outlook, which would in turn affect our
investment orientation as well as the Fund's asset allocations.
* Dividends are not guaranteed.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 7
Please refer to the Schedule of Investments on pages 19-34 for a full listing
of Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
All investments are subject to risk, including the possible loss of principal.
The Fund has the ability to invest in a wide variety of securities and asset
classes.
The Fund may invest in underlying funds (including ETFs). In addition to the
Fund's operating expenses, you will indirectly bear the operating expenses of
investments in any underlying funds.
The Fund and some of the underlying funds employ leverage through the use of
derivatives, which increases the volatility of investment returns and subjects
the Fund to magnified losses if the Fund or an underlying fund's investments
decline in value.
The Fund and some of the underlying funds may use derivatives, such as options
and futures, which can be illiquid, may disproportionately increase losses, and
have a potentially large impact on Fund performance.
The Fund and some of the underlying funds may employ short selling, a
speculative strategy. Unlike the possible loss on a security that is purchased,
there is no limit to the amount of loss on an appreciating security that is
sold short.
The Fund may invest in inflation-linked securities. As inflationary
expectations increase, inflation-linked securities may become more attractive,
because they protect future interest payments against inflation. Conversely, as
inflationary concerns decrease, inflation-linked securities will become less
attractive and less valuable.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund may invest in subordinated securities, which may be disproportionately
adversely affected by a default or even a perceived decline in creditworthiness
of the issuer.
The Fund may invest in floating rate loans. The value of collateral, if any,
securing a floating rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
The Fund may invest in insurance-linked securities, including event-linked
bonds. The return of principal and the payment of interest on insurance-linked
bonds are contingent on the non-occurrence of a pre-defined "trigger" event,
such as a hurricane or an earthquake of a specific magnitude.
8 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
The Fund may invest in commodity-linked derivatives. The value of
commodity-linked derivatives may be affected by changes in overall market
movements, commodity index volatility, changes in interest rates, factors
affecting a particular industry or commodity, international economic, political
and regulatory developments, supply and demand, and governmental regulatory
policies.
Investments in equity securities are subject to price fluctuation.
Small- and mid-cap stocks involve greater risks and volatility than large-cap
stocks.
International investments are subject to special risks, including currency
fluctuations, and social, economic and political uncertainties, which could
increase volatility. These risks are magnified in emerging markets.
Investments in fixed-income securities involve interest rate, credit,
inflation, and reinvestment risks. As interest rates rise, the value of
fixed-income securities will generally fall.
Prepayment risk is the chance that an issuer may exercise its right to repay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The Fund may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other
fixed-income securities. Mortgage-Backed securities are also subject to
prepayments.
High-yield bonds possess greater price volatility, illiquidity, and possibility
of default.
These risks may increase share price volatility.
There is no assurance that these and other strategies used by the Fund or
underlying funds will be successful.
Please see the prospectus for a more complete discussion of the Fund's risks.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Amundi Pioneer Asset Management, Inc.,
for a prospectus or summary prospectus containing this information. Read it
carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 9
Portfolio Summary | 10/31/18
Sector Distribution
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(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 32.3%
Health Care 14.9%
Industrials 12.1%
Consumer Discretionary 7.9%
Materials 6.9%
Government 6.2%
Information Technology 6.0%
Real Estate 5.0%
Energy 3.7%
Communication Services 3.1%
Consumer Staples 1.2%
Utilities 0.7%
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Common Stocks 83.1%
Investment Companies 4.5%
Corporate Bonds 4.3%
Foreign Government Bonds 3.5%
U.S. Government and Agency Obligations 2.8%
Over The Counter (OTC) Call Options Purchased 1.3%
Exchange-Traded Call Options Purchased 0.4%
Exchange-Traded Commodity 0.1%
Exchange-Traded Put Options Purchased 0.0%+
Preferred Stocks 0.0%+
+ Amount rounds to less than 0.1%.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investments)*
1. ETFMG Prime Cyber Security ETF 3.52%
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2. Ping An Insurance Group Co. of China, Ltd., Class H 1.84
--------------------------------------------------------------------------------
3. Booz Allen Hamilton Holding Corp. 1.48
--------------------------------------------------------------------------------
4. Anthem, Inc. 1.46
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5. Indonesia Government International Bond, 3.375%, 4/15/23 (144A) 1.45
--------------------------------------------------------------------------------
6. U.S. Treasury Bills, 11/8/18 1.39
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7. Thermo Fisher Scientific, Inc. 1.38
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8. U.S. Treasury Bills, 11/23/18 1.32
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9. Microsoft Corp. 1.25
--------------------------------------------------------------------------------
10. UnitedHealth Group, Inc. 1.23
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* Excludes temporary cash investments and all derivative contracts except
for options purchased. The Fund is actively managed, and current holdings
may be different. The holdings listed should not be considered
recommendations to buy or sell any securities listed.
10 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Prices and Distributions | 10/31/18
Net Asset Value per Share
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--------------------------------------------------------------------------------
Class 10/31/18 10/31/17
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A $12.69 $14.17
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C $12.45 $13.95
--------------------------------------------------------------------------------
R $12.60 $14.11
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Y $12.74 $14.22
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--------------------------------------------------------------------------------
Class 10/31/18 6/22/18
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K* $12.69 $13.67
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Distributions per Share: 11/1/17 -- 10/31/18
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
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A $0.3462 $0.5291 $0.3551
--------------------------------------------------------------------------------
C $0.2688 $0.5291 $0.3551
--------------------------------------------------------------------------------
K $0.0430 $ -- $ --
--------------------------------------------------------------------------------
R $0.2914 $0.5291 $0.3551
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Y $0.3768 $0.5291 $0.3551
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The Bloomberg Barclays U.S. Treasury TIPS 1-10 Year Index is an unmanaged index
comprised of U.S. Treasury Inflation Protected Securities (TIPS) having a
maturity of at least 1 year and less than 10 years. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. It is not possible to
invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 12-16.
* Class K shares commenced operations on June 22, 2018
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 11
Performance Update | 10/31/18 Class A 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 Class A shares of Pioneer Flexible Opportunities Fund at
public offering price during the periods shown, compared to that of the
Bloomberg Barclays U.S. Treasury TIPS 1-10 Year Index.
Average Annual Total Returns
(As of October 31, 2018)
----------------------------------------------------------
BBG
Barclays
Net Public U.S. Treasury
Asset Offering TIPS
Value Price 1-10 Year
Period (NAV) (POP) Index
----------------------------------------------------------
Life of Class
(5/3/2010) 6.60% 6.03% 1.90%
5 years 4.16 3.21 0.69
1 year -2.08 -6.49 -0.61
----------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
----------------------------------------------------------
Gross
----------------------------------------------------------
1.22%
----------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer Flexible U.S. Treasury TIPS
Opportunities Fund 1-10 Year Index
5/10 $ 9,550 $10,000
10/10 $10,152 $10,481
10/11 $10,822 $11,217
10/12 $11,689 $11,797
10/13 $13,409 $11,351
10/14 $13,604 $11,419
10/15 $13,991 $11,277
10/16 $14,114 $11,804
10/17 $16,790 $11,821
10/18 $16,441 $11,749
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. POP
returns reflect deduction of maximum 4.50% sales charge. NAV returns would have
been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Performance Update | 10/31/18 Class C Shares
Investment Returns
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Flexible Opportunities Fund during
the periods shown, compared to that of the Bloomberg Barclays U.S. Treasury
TIPS 1-10 Year Index.
Average Annual Total Returns
(As of October 31, 2018)
----------------------------------------------------------
BBG
Barclays
U.S. Treasury
TIPS
If If 1-10 Year
Period Held Redeemed Index
----------------------------------------------------------
Life of Class
(5/3/2010) 5.79% 5.79% 1.90%
5 years 3.35 3.35 0.69
1 year -2.83 -2.83 -0.61
----------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
----------------------------------------------------------
Gross
----------------------------------------------------------
1.97%
----------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer Flexible U.S. Treasury TIPS
Opportunities Fund 1-10 Year Index
5/10 $10,000 $10,000
10/10 $10,600 $10,481
10/11 $11,203 $11,217
10/12 $12,007 $11,797
10/13 $13,680 $11,351
10/14 $13,762 $11,419
10/15 $14,053 $11,277
10/16 $14,065 $11,804
10/17 $16,599 $11,821
10/18 $16,129 $11,749
Call 1-800-225-6292 or visit www.amundipioneer.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 subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. NAV returns would have been lower had sales charges
been reflected. All results are historical and assume the reinvestment of
dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 13
Performance Update | 10/31/18 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class K shares of Pioneer Flexible Opportunities Fund during
the periods shown, compared to that of the Bloomberg Barclays U.S. Treasury
TIPS 1-10 Year Index.
Average Annual Total Returns
(As of October 31, 2018)
----------------------------------------------------------
BBG
Barclays
Net U.S. Treasury
Asset TIPS
Value 1-10 Year
Period (NAV) Index
----------------------------------------------------------
Life of Fund
(5/3/2010) 6.61% 1.90%
5 years 4.18 0.69
1 year -2.00 -0.61
----------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
----------------------------------------------------------
Gross Net
----------------------------------------------------------
0.97% 0.94%
----------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Bloomberg Barclays
Pioneer Flexible U.S. Treasury TIPS
Opportunities Fund 1-10 Year Index
5/10 $5,000,000 $5,000,000
10/10 $5,315,000 $5,240,571
10/11 $5,665,914 $5,608,620
10/12 $6,119,889 $5,898,426
10/13 $7,020,648 $5,675,619
10/14 $7,122,391 $5,709,622
10/15 $7,325,209 $5,638,580
10/16 $7,389,684 $5,902,161
10/17 $8,790,686 $5,910,714
10/18 $8,614,719 $5,874,506
Call 1-800-225-6292 or visit us.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class K shares for the period prior to the
commencement of operations of Class K shares on June 22, 2018, is the net
asset value performance of the Fund's Class A shares, which has not been
restated to reflect any differences in expenses, including Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares generally are
higher than those of Class K shares, the performance of Class K shares prior to
their inception on June 22, 2018, would have been higher than the performance
shown. For the period beginning June 22, 2018, the actual performance of Class
K shares is reflected. Class K shares are not subject to sales charges and are
available for limited groups of eligible investors, including institutional
investors. All results are historical and assume the reinvestment of dividends
and capital gains.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2019, for Class K shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus 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.
Please refer to the financial highlights for a more current expense ratio.
14 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Performance Update | 10/31/18 Class R Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer Flexible Opportunities Fund during
the periods shown, compared to that of the Bloomberg Barclays U.S. Treasury
TIPS 1-10 Year Index.
Average Annual Total Returns
(As of October 31, 2018)
----------------------------------------------------------
BBG
Barclays
Net U.S. Treasury
Asset TIPS
Value 1-10 Year
Period (NAV) Index
----------------------------------------------------------
Life of Fund
(5/3/2010) 6.24% 1.90%
5 years 3.56 0.69
1 year -2.71 -0.61
----------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
----------------------------------------------------------
Gross
----------------------------------------------------------
1.66%
----------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer Flexible U.S. Treasury TIPS
Opportunities Fund 1-10 Year Index
5/10 $10,000 $10,000
10/10 $10,630 $10,481
10/11 $11,332 $11,217
10/12 $12,240 $11,797
10/13 $14,037 $11,351
10/14 $14,204 $11,419
10/15 $14,473 $11,277
10/16 $14,522 $11,804
10/17 $17,188 $11,821
10/18 $16,722 $11,749
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class R shares for the period prior to the
commencement of operations of Class R shares on September 13, 2013, is based on
the performance of Class A shares, reduced to reflect the higher distribution
and service fees of Class R shares. For the period beginning September 13,
2013, the actual performance of Class R shares is reflected. Class R shares are
not subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 15
Performance Update | 10/31/18 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Flexible Opportunities Fund during
the periods shown, compared to that of the Bloomberg Barclays U.S. Treasury
TIPS 1-10 Year Index.
Average Annual Total Returns
(As of October 31, 2018)
----------------------------------------------------------
BBG
Barclays
Net U.S. Treasury
Asset TIPS
Value 1-10 Year
Period (NAV) Index
----------------------------------------------------------
Life of Class
(5/3/2010) 6.90% 1.90%
5 years 4.44 0.69
1 year -1.86 -0.61
----------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
----------------------------------------------------------
Gross Net
----------------------------------------------------------
0.99% 0.94%
----------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Bloomberg Barclays
Pioneer Flexible U.S. Treasury TIPS
Opportunities Fund 1-10 Year Index
5/10 $5,000,000 $5,000,000
10/10 $5,325,000 $5,240,571
10/11 $5,691,660 $5,608,620
10/12 $6,165,512 $5,898,426
10/13 $7,094,397 $5,675,619
10/14 $7,215,104 $5,709,622
10/15 $7,445,829 $5,638,580
10/16 $7,532,841 $5,902,161
10/17 $8,982,396 $5,910,714
10/18 $8,815,733 $5,874,506
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results
are historical and assume the reinvestment of dividends and capital gains.
Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2019, for Class Y shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus 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.
Please refer to the financial highlights for a more current expense ratio.
16 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
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 Flexible Opportunities Fund
Based on actual returns from May 1, 2018, through October 31, 2018.
----------------------------------------------------------------------------------------------
Share Class A C K R Y
----------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/18
----------------------------------------------------------------------------------------------
Ending Account $ 917.46 $ 913.17 $ 980.00 $ 913.35 $ 918.14
Value (after expenses)
on 10/31/18
----------------------------------------------------------------------------------------------
Expenses Paid $ 5.51 $ 9.21 $ 3.15 $ 8.78 $ 4.35
During Period*
----------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.14%,
1.91%, 0.88%, 1.82% and 0.90% for Class A, Class C, Class K, Class R and
Class Y shares, respectively, multiplied by the average account value over
the period, multiplied by 184/365 and 132/365 for Class K (to reflect the
one-half year period).
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 17
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 Flexible Opportunities Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2018, through October 31, 2018.
--------------------------------------------------------------------------------------------------
Share Class A C K R Y
--------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/18
--------------------------------------------------------------------------------------------------
Ending Account $1,019.46 $1,015.58 $1,014.90 $1,016.03 $1,020.67
Value (after expenses)
on 10/31/18
--------------------------------------------------------------------------------------------------
Expenses Paid $ 5.80 $ 9.70 $ 3.21 $ 9.25 $ 4.58
During Period*
--------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.14%,
1.91%, 0.88%, 1.82% and 0.90% for Class A, Class C, Class K, Class R and
Class Y shares, respectively, multiplied by the average account value over
the period, multiplied by 184/365 and 132/365 for Class K (to reflect the
one-half year period).
18 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Schedule of Investments | 10/31/18 (Consolidated)
-----------------------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 96.8%
COMMON STOCKS -- 78.5% of Net Assets
AUTOMOBILES & COMPONENTS -- 0.4%
Auto Parts & Equipment -- 0.4%
115,322 Dometic Group AB (144A) $ 805,655
5,490(a) Garrett Motion, Inc. 83,284
2,020,000 Xinyi Glass Holdings Ltd. 1,999,120
------------
Total Automobiles & Components $ 2,888,059
-----------------------------------------------------------------------------------------------------------------
BANKS -- 8.5%
Diversified Banks -- 7.3%
309,627 ABN AMRO Group NV (144A) $ 7,602,106
418,030 Bank for Foreign Trade of Vietnam JSC 995,587
8,238,000 China Construction Bank Corp., Class H 6,534,885
1,638,500 China Merchants Bank Co., Ltd., Class H 6,310,724
19,409 Citigroup, Inc. 1,270,513
136,100 DBS Group Holdings, Ltd. 2,303,351
352,502 FinecoBank Banca Fineco S.p.A. 3,687,660
7,858,000 Industrial & Commercial Bank of China, Ltd., Class H 5,311,457
29,558 JPMorgan Chase & Co. 3,222,413
386,700 Kasikornbank PCL 2,331,419
358,801 Sberbank of Russia PJSC (A.D.R.) 4,194,384
48,300 Sumitomo Mitsui Financial Group, Inc. 1,885,941
130,500 United Overseas Bank, Ltd. 2,295,188
------------
$ 47,945,628
-----------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.2%
344,844 Carlyle Group LP $ 6,989,988
143,054 OneSavings Bank Plc 681,842
------------
$ 7,671,830
------------
Total Banks $ 55,617,458
-----------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 9.9%
Aerospace & Defense -- 5.4%
15,267 Airbus SE $ 1,687,828
14,553 Boeing Co. 5,164,278
748,313(a) Bombardier, Inc., Class B 1,812,611
22,843 BWX Technologies, Inc. 1,335,402
33,817 L3 Technologies, Inc. 6,407,307
40,389 Raytheon Co. 7,069,690
49,251 Safran SA 6,355,441
43,047 Thales SA 5,503,725
------------
$ 35,336,282
-----------------------------------------------------------------------------------------------------------------
Building Products -- 0.0%+
8,540(a) Resideo Technologies, Inc. $ 179,767
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 19
Schedule of Investments | 10/31/18 (Consolidated) (continued)
-----------------------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.3%
14,535 Fluor Corp. $ 637,505
19,087 Vinci SA 1,703,492
------------
$ 2,340,997
-----------------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 1.0%
38,317 Rockwell Automation, Inc. $ 6,311,959
-----------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 1.7%
51,243 Honeywell International, Inc. $ 7,421,011
41,553 Rheinmetall AG 3,598,539
------------
$ 11,019,550
-----------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 1.5%
63,589 Ingersoll-Rand Plc $ 6,100,729
71,887 Interpump Group S.p.A. 2,074,082
9,021 Schindler Holding AG 1,900,382
------------
$ 10,075,193
------------
Total Capital Goods $ 65,263,748
-----------------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 0.3%
Environmental & Facilities Services -- 0.3%
24,363 Waste Management, Inc. $ 2,179,758
------------
Total Commercial & Professional Services $ 2,179,758
-----------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 4.1%
Apparel, Accessories & Luxury Goods -- 3.7%
8,899 adidas AG $ 2,094,305
40,194 Cie Financiere Richemont SA 2,938,059
14,373 Kering SA 6,400,853
23,272 LVMH Moet Hennessy Louis Vuitton SE 7,077,801
144,209 Moncler S.p.A. 5,009,174
3,029 Swatch Group AG 1,023,836
------------
$ 24,544,028
-----------------------------------------------------------------------------------------------------------------
Footwear -- 0.4%
4,919 Puma SE $ 2,526,784
------------
Total Consumer Durables & Apparel $ 27,070,812
-----------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 2.0%
Casinos & Gaming -- 0.8%
624,000 Galaxy Entertainment Group, Ltd. $ 3,374,242
16,772(a Kambi Group Plc 464,109
31,914 Kindred Group Plc 340,077
52,554 LeoVegas AB (144A) 306,914
73,933(a) Mr. Green & Co. AB 560,732
------------
$ 5,046,074
-----------------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.3%
192,542 Melia Hotels International SA $ 1,978,093
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------------------
Restaurants -- 0.9%
85,141 Aramark $ 3,058,264
146,721 Compass Group Plc 2,885,725
------------
$ 5,943,989
------------
Total Consumer Services $ 12,968,156
-----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.2%
Asset Management & Custody Banks -- 2.1%
213,615 Blackstone Group LP $ 6,912,581
195,521 KKR & Co., Inc. 4,624,072
226,193 St James's Place Plc 2,927,823
------------
$ 14,464,476
-----------------------------------------------------------------------------------------------------------------
Consumer Finance -- 2.2%
81,111 Capital One Financial Corp. $ 7,243,212
102,994 Discover Financial Services 7,175,592
------------
$ 14,418,804
-----------------------------------------------------------------------------------------------------------------
Diversified Capital Markets -- 0.3%
24,834 Macquarie Group, Ltd. $ 2,058,919
-----------------------------------------------------------------------------------------------------------------
Financial Exchanges & Data -- 0.4%
12,940 S&P Global, Inc. $ 2,359,221
-----------------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.2%
31,124 Morgan Stanley $ 1,421,122
------------
Total Diversified Financials $ 34,722,542
-----------------------------------------------------------------------------------------------------------------
ENERGY -- 3.0%
Integrated Oil & Gas -- 1.4%
51,721 LUKOIL PJSC (A.D.R.) $ 3,860,455
90,863 TOTAL SA 5,341,849
------------
$ 9,202,304
-----------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.5%
561,625(a) Saipem S.p.A. $ 3,072,404
-----------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.9%
58,540 EOG Resources, Inc. $ 6,166,603
-----------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.2%
4,650,000 China Suntien Green Energy Corp., Ltd., Class H $ 1,186,066
------------
Total Energy $ 19,627,377
-----------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.1%
Packaged Foods & Meats -- 1.1%
256,500(a) Health & Happiness H&H International Holdings, Ltd. $ 1,458,975
461,910(a) Masan Group Corp. 1,642,224
101,479 Mondelez International, Inc. 4,260,088
------------
Total Food, Beverage & Tobacco $ 7,361,287
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 21
Schedule of Investments | 10/31/18 (Consolidated) (continued)
-----------------------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 8.9%
Health Care Equipment -- 5.2%
20,323 Abbott Laboratories $ 1,401,067
29,882 Becton Dickinson and Co. 6,887,801
55,456(a) Boston Scientific Corp. 2,004,180
54,472 Danaher Corp. 5,414,517
48,460 Hill-Rom Holdings, Inc. 4,074,517
8,797(a) IDEXX Laboratories, Inc. 1,866,019
12,698(a) Intuitive Surgical, Inc. 6,617,944
35,878 Stryker Corp. 5,820,129
------------
$ 34,086,174
-----------------------------------------------------------------------------------------------------------------
Managed Health Care -- 3.7%
32,893 Anthem, Inc. $ 9,064,324
23,557 Humana, Inc. 7,547,898
29,273 UnitedHealth Group, Inc. 7,650,499
------------
$ 24,262,721
------------
Total Health Care Equipment & Services $ 58,348,895
-----------------------------------------------------------------------------------------------------------------
INSURANCE -- 9.4%
Life & Health Insurance -- 6.3%
716,255 Aegon NV $ 4,398,888
327,200 AIA Group, Ltd. 2,476,622
551,000 China Taiping Insurance Holdings Co., Ltd. 1,841,105
1,014,523 Legal & General Group Plc 3,258,681
927,700 New China Life Insurance Co., Ltd., Class H 4,336,180
160,068 NN Group NV 6,882,140
1,214,000 Ping An Insurance Group Co. of China, Ltd., Class H 11,433,915
19,116(a) Swiss Life Holding AG 7,208,434
------------
$ 41,835,965
-----------------------------------------------------------------------------------------------------------------
Multi-line Insurance -- 2.0%
40,218 Ageas $ 2,011,761
34,512 Allianz SE 7,202,124
154,546 AXA SA 3,871,424
------------
$ 13,085,309
-----------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.4%
245,384 Direct Line Insurance Group Plc $ 1,032,627
21,743 Progressive Corp. 1,515,487
------------
$ 2,548,114
-----------------------------------------------------------------------------------------------------------------
Reinsurance -- 0.7%
32,536 Hannover Rueck SE $ 4,384,411
------------
Total Insurance $ 61,853,799
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------------------
MATERIALS -- 5.0%
Copper -- 0.2%
145,244 OZ Minerals, Ltd. $ 927,793
-----------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 3.2%
202,207 Anglo American Plc $ 4,326,182
1,688,157(a) Glencore Plc 6,874,501
245,397 MMC Norilsk Nickel PJSC (A.D.R.) 4,061,320
286,320 Teck Resources, Ltd., Class B 5,915,765
------------
$ 21,177,768
-----------------------------------------------------------------------------------------------------------------
Steel -- 1.6%
266,280 ArcelorMittal $ 6,640,266
100,366 Steel Dynamics, Inc. 3,974,494
------------
$ 10,614,760
------------
Total Materials $ 32,720,321
-----------------------------------------------------------------------------------------------------------------
MEDIA & ENTERTAINMENT -- 2.3%
Advertising -- 0.3%
37,970 Stroeer SE & Co. KGaA $ 1,983,946
-----------------------------------------------------------------------------------------------------------------
Interactive Home Entertainment -- 0.4%
31,523(a) Electronic Arts, Inc. $ 2,867,963
-----------------------------------------------------------------------------------------------------------------
Interactive Media & Services -- 1.2%
37,405(a) Catena Media Plc $ 416,473
84,110(a) Momo, Inc. (A.D.R.) 2,823,573
149,222(a) Yandex NV 4,496,059
------------
$ 7,736,105
-----------------------------------------------------------------------------------------------------------------
Publishing -- 0.4%
96,385 Lagardere SCA $ 2,638,036
------------
Total Media & Entertainment $ 15,226,050
-----------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 5.2%
Biotechnology -- 1.4%
32,352(a) Alexion Pharmaceuticals, Inc. $ 3,625,689
10,645(a) Biogen, Inc. 3,238,954
6,123(a) Regeneron Pharmaceuticals, Inc. 2,077,166
------------
$ 8,941,809
-----------------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 2.3%
91,878 Agilent Technologies, Inc. $ 5,952,776
5,447(a) Charles River Laboratories International, Inc. 663,553
36,735 Thermo Fisher Scientific, Inc. 8,583,133
------------
$ 15,199,462
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 23
Schedule of Investments | 10/31/18 (Consolidated) (continued)
-----------------------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 1.5%
12,626 Johnson & Johnson $ 1,767,514
50,174 Novartis AG 4,391,127
11,361 Roche Holding AG 2,761,796
12,149 Zoetis, Inc. 1,095,233
------------
$ 10,015,670
------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 34,156,941
-----------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 4.7%
Diversified Real Estate Activities -- 0.1%
113,800 City Developments, Ltd. $ 649,371
-----------------------------------------------------------------------------------------------------------------
Diversified REIT -- 0.7%
145,212 Lar Espana Real Estate Socimi SA $ 1,437,626
263,488 Merlin Properties Socimi SA 3,303,209
------------
$ 4,740,835
-----------------------------------------------------------------------------------------------------------------
Hotel & Resort REIT -- 0.3%
26,685 Ryman Hospitality Properties, Inc. $ 2,070,489
-----------------------------------------------------------------------------------------------------------------
Real Estate Development -- 1.7%
1,096,000 China Resources Land, Ltd. $ 3,718,073
1,670,000 KWG Property Holding, Ltd. 1,275,760
916,500 Longfor Properties Co., Ltd. 2,225,488
999,000 Shimao Property Holdings, Ltd. 1,954,414
805,477(a) Vinhomes JSC (144A) 2,290,963
------------
$ 11,464,698
-----------------------------------------------------------------------------------------------------------------
Real Estate Operating Companies -- 1.7%
72,095 Deutsche Wohnen SE $ 3,298,767
114,059 Grand City Properties SA 2,759,133
108,006 Vonovia SE 4,939,461
------------
$ 10,997,361
-----------------------------------------------------------------------------------------------------------------
Real Estate Services -- 0.2%
2,802,000(a) Colour Life Services Group Co., Ltd. $ 1,347,210
------------
Total Real Estate $ 31,269,964
-----------------------------------------------------------------------------------------------------------------
RETAILING -- 1.0%
Home Improvement Retail -- 0.4%
12,913 Home Depot, Inc. $ 2,271,139
-----------------------------------------------------------------------------------------------------------------
Homefurnishing Retail -- 0.1%
28,889 Maisons du Monde SA (144A) $ 723,678
-----------------------------------------------------------------------------------------------------------------
Specialty Stores -- 0.5%
31,227 Tiffany & Co. $ 3,475,565
------------
Total Retailing $ 6,470,382
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 5.2%
Application Software -- 1.2%
10,586(a) Adobe Systems, Inc. $ 2,601,615
107,135(a) Envestnet, Inc. 5,573,162
------------
$ 8,174,777
-----------------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.9%
102,426(a) First Data Corp. $ 1,919,463
19,875 Mastercard, Inc. 3,928,692
------------
$ 5,848,155
-----------------------------------------------------------------------------------------------------------------
Internet Services & Infrastructure -- 0.2%
53,432(a) iQIYI, Inc. (A.D.R.) $ 1,049,404
-----------------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 1.7%
186,520 Booz Allen Hamilton Holding Corp. $ 9,240,201
16,484 Capgemini SE 2,014,289
------------
$ 11,254,490
-----------------------------------------------------------------------------------------------------------------
Systems Software -- 1.2%
72,583 Microsoft Corp. $ 7,752,590
------------
Total Software & Services $ 34,079,416
-----------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.5%
Communications Equipment -- 1.0%
45,080 Harris Corp. $ 6,703,847
-----------------------------------------------------------------------------------------------------------------
Electronic Components -- 0.5%
21,411 Amphenol Corp. $ 1,916,284
122,500 Sunny Optical Technology Group Co., Ltd. 1,062,358
------------
$ 2,978,642
------------
Total Technology Hardware & Equipment $ 9,682,489
-----------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
Highways & Railtracks -- 0.1%
1,092,000 Shenzhen Expressway Co., Ltd., Class H $ 1,004,115
------------
Total Transportation $ 1,004,115
-----------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.7%
Electric Utilities -- 0.3%
278,000 CK Infrastructure Holdings, Ltd. $ 2,031,539
-----------------------------------------------------------------------------------------------------------------
Renewable Electricity -- 0.4%
3,627,000 China Everbright Greentech, Ltd. (144A) $ 2,608,870
------------
Total Utilities $ 4,640,409
-----------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $532,807,783) $517,151,978
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 25
Schedule of Investments | 10/31/18 (Consolidated) (continued)
-----------------------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 0.1% of Net Assets
REAL ESTATE -- 0.1%
Retail REIT -- 0.1%
204^ Wheeler Real Estate Investment Trust, Inc. $ 143,808
------------
Total Real Estate $ 143,808
-----------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $195,245) $ 143,808
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($)
-----------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 4.1% of Net Assets
BANKS -- 1.5%
Diversified Banks -- 1.5%
2,301,000(b) Banco do Brasil SA, 3.875%, 10/10/22 $ 2,182,522
4,500,000 Industrial & Commercial Bank of China, Ltd.,
3.538%, 11/8/27 4,193,770
3,804,000(c)(d) Intesa Sanpaolo S.p.A., 7.7% (5 Year USD Swap
Rate + 546 bps) (144A) 3,447,375
------------
Total Banks $ 9,823,667
-----------------------------------------------------------------------------------------------------------------
ENERGY -- 0.6%
Integrated Oil & Gas -- 0.6%
3,798,000 Petrobras Global Finance BV, 4.375%, 5/20/23 $ 3,663,171
------------
Total Energy $ 3,663,171
-----------------------------------------------------------------------------------------------------------------
MATERIALS -- 1.4%
Commodity Chemicals -- 0.3%
2,081,000(b) Braskem Finance, Ltd., 6.45%, 2/3/24 $ 2,183,489
-----------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.7%
2,000,000 Anglo American Capital Plc, 4.75%,
4/10/27 (144A) $ 1,925,648
2,637,000 MMC Norilsk Nickel OJSC via MMC Finance,
DAC, 4.1%, 4/11/23 (144A) 2,491,965
------------
$ 4,417,613
-----------------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.4%
3,000,000 Sealed Air Corp., 5.125%, 12/1/24 (144A) $ 2,917,500
------------
Total Materials $ 9,518,602
-----------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.6%
Alternative Carriers -- 0.6%
4,400,000 CenturyLink, Inc., 7.65%, 3/15/42 $ 3,784,000
------------
Total Telecommunication Services $ 3,784,000
-----------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $27,413,249) $ 26,789,440
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS --
3.3% of Net Assets
Argentina -- 0.5%
4,500,000 Argentine Republic Government International Bond,
5.875%, 1/11/28 $ 3,465,000
-----------------------------------------------------------------------------------------------------------------
Brazil -- 0.8%
5,280,000 Brazilian Government International Bond,
4.25%, 1/7/25 $ 5,097,101
-----------------------------------------------------------------------------------------------------------------
Indonesia -- 1.4%
9,434,000 Indonesia Government International Bond,
3.375%, 4/15/23 (144A) $ 9,017,734
-----------------------------------------------------------------------------------------------------------------
Russia -- 0.5%
3,400,000 Russian Foreign Bond - Eurobond, 4.875%,
9/16/23 (144A) $ 3,476,398
-----------------------------------------------------------------------------------------------------------------
Turkey -- 0.1%
TRY 4,250,000 Turkey Government Bond, 8.5%, 7/10/19 $ 695,483
-----------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $22,142,636) $ 21,751,716
-----------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 2.6% of Net Assets
8,680,000(e) U.S. Treasury Bills, 11/8/18 $ 8,676,473
8,240,000(e) U.S. Treasury Bills, 11/23/18 8,229,167
-----------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(Cost $16,905,514) $ 16,905,640
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES -- 4.2% of Net Assets
DIVERSIFIED FINANCIALS -- 4.2%
Diversified Capital Markets -- 3.6%
607,873 ETFMG Prime Cyber Security ETF $ 21,895,586
62,296 Invesco International BuyBack Achievers ETF 1,929,307
------------
$ 23,824,893
-----------------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.3%
82,370 SPDR S&P Euro Dividend Aristocrats UCITS ETF $ 2,008,407
-----------------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.3%
120,057 VanEck Vectors Vietnam ETF $ 1,822,465
------------
Total Diversified Financials $ 27,655,765
-----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT COMPANIES
(Cost $28,799,964) $ 27,655,765
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 27
Schedule of Investments | 10/31/18 (Consolidated) (continued)
-----------------------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------------------
EXCHANGE-TRADED COMMODITY --
0.1% of Net Assets
DIVERSIFIED FINANCIALS -- 0.1%
Asset Management & Custody Banks -- 0.1%
3,411(a)(b) Xtrackers Physical Rhodium ETC $ 689,022
------------
Total Diversified Financials $ 689,022
-----------------------------------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED COMMODITY
(Cost $534,086) $ 689,022
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Notional Price Date
-----------------------------------------------------------------------------------------------------------------
EXCHANGE-TRADED CALL OPTIONS
PURCHASED -- 0.4%
2,000 Blue Apron Citigroup Global USD 266,000 USD 7 1/18/19 $ 15,000
Holdings, Inc. Markets, Inc.
8,690 Euro Stoxx Citibank NA EUR 1,383,519 EUR 170 3/15/19 245,808
600 Index
20,000 KKR & Co. LP Citigroup Global USD 1,216,400 USD 25 1/18/19 1,800,000
Markets, Inc.
10,000 Selected Citigroup Global USD 750,000 USD 27 1/18/19 660,000
Sector SPDR Markets, Inc.
------------
$ 2,720,808
-----------------------------------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED CALL
OPTIONS PURCHASED
(Premiums paid $3,615,919) $ 2,720,808
-----------------------------------------------------------------------------------------------------------------
EXCHANGE-TRADED PUT OPTION
PURCHASED -- 0.0%+
25,392 Deutsche Barclays EUR 624,600 EUR 7 12/21/18 $ 287,298
Bank AG Capital
-----------------------------------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED PUT
OPTION PURCHASED
(Premiums paid $624,600) $ 287,298
-----------------------------------------------------------------------------------------------------------------
OVER THE COUNTER (OTC) CALL
OPTIONS PURCHASED -- 1.3%
31,571 Euro Stoxx 50 Citibank NA EUR 3,001,680 EUR 3,559 6/21/19 $ 492,214
4,361 FTSE 100 Index Citibank NA GBP 766,532 GBP 7,622 1/21/19 128,402
3,270 FTSE 100 Index Citigroup Global GBP 839,711 GBP 7,697 3/15/19 130,535
Markets, Inc.
81,777 MSCI Emerging Citibank NA USD 4,999,985 USD 1,126 7/19/19 1,010,494
Markets Index
1,844,500 MSCI China Citibank NA HKD 840,134 HKD 91 12/28/18 2,283
Index
53 Nikkei 225 Index Citibank NA JPY 668,728 JPY 21,298 9/13/19 818,100
234 Nikkei 225 Index Citibank NA JPY 1,786,726 JPY 23,504 9/13/19 1,581,189
126,150 Nikkei 225 Index JPMorgan JPY 1,096,201 JPY 21,656 8/9/19 1,649,114
Chase Bank NA
The accompanying notes are an integral part of these financial statements.
28 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Notional Price Date Value
-----------------------------------------------------------------------------------------------------------------
OVER THE COUNTER (OTC) CALL
OPTIONS PURCHASED -- (continued)
10,883 S&P 500 Index Citibank NA USD 960,042 USD 2,772 4/19/19 $ 1,104,299
11,342 S&P 500 Index Citibank NA USD 989,964 USD 2,742 4/19/19 1,313,942
------------
$ 8,230,572
-----------------------------------------------------------------------------------------------------------------
TOTAL OVER THE COUNTER (OTC) CALL
OPTIONS PURCHASED
(Premiums paid $15,949,703) $ 8,230,572
-----------------------------------------------------------------------------------------------------------------
TOTAL OPTIONS PURCHASED
(Premiums paid $20,190,222) $ 11,238,678
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($)
-----------------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS --
2.2% of Net Assets
REPURCHASE AGREEMENTS -- 2.2%
1,360,000 $1,360,000 Merrill Lynch, Pierce, Fenner &
Smith Inc., 2.2%, dated 10/31/18 plus accrued
interest on 11/1/18 collateralized by $1,387,200
Government National Mortgage Association,
4.5%, 9/20/48 $ 1,360,000
6,910,000 $6,910,000 RBC Capital Markets LLC, 2.21%,
dated 10/31/18 plus accrued interest on
11/1/18 collateralized by $7,048,633 Federal
National Mortgage Association, 4.0%, 7/1/48 6,910,000
3,825,000 $3,825,000 ScotiaBank, 2.2%, dated 10/31/18
plus accrued interest on 11/1/18 collateralized
by the following:
$982,815 Freddie Mac Giant, 3.5%, 12/1/47
$2,918,924 Federal National Mortgage
Association, 3.5% - 5.0%, 3/1/47 - 7/1/78 3,825,000
1,290,000 $1,290,000 TD Securities USA LLC, 2.19%,
dated 10/31/18 plus accrued interest on 11/1/18
collateralized by $1,315,850 U.S. Treasury Notes,
2.25%, 1/31/24 1,290,000
1,290,000 $1,290,000 TD Securities USA LLC, 2.21%, dated
10/31/18 plus accrued interest on 11/1/18
collateralized by $1,315,850 U.S. Treasury Notes,
2.25%, 1/31/24 1,290,000
------------
$ 14,675,000
-----------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $14,675,000) $ 14,675,000
-----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED
ISSUERS -- 96.8%
(Cost $663,663,699) $637,001,047
-----------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 3.2% $ 21,227,458
-----------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $658,228,505
=================================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 29
Schedule of Investments | 10/31/18 (Consolidated) (continued)
bps Basis Points.
REIT Real Estate Investment Trust.
(144A) Security is exempt from registration under Rule 144A of the
Securities Act of 1933. Such securities may be resold normally to
qualified institutional buyers in a transaction exempt from
registration. At October 31, 2018, the value of these securities
amounted to $37,614,806, or 5.7% of net assets.
(A.D.R.) American Depositary Receipts.
+ Amount rounds to less than 0.1%.
^ Security is valued using fair value methods (other than prices
supplied by independent pricing services). See Notes to Financial
Statements -- Note 1A.
(a) Non-income producing security.
(b) All or a portion of this security is held by Flexible
Opportunities Commodity Fund Ltd. (formerly, Pioneer Cayman
Commodity Fund Ltd.)
(c) The interest rate is subject to change periodically. The interest
rate and/or reference index and spread shown at October 31, 2018.
(d) Security is perpetual in nature and has no stated maturity date.
(e) Security issued with a zero coupon. Income is recognized through
accretion of discount.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 2018, were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government $ 19,777,613 $ 19,907,516
Other Long-Term Securities $1,767,592,682 $1,686,074,694
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc., (the "Adviser") serves as the Fund's investment adviser, as
set forth in Rule 17a-7 under the Investment Company Act of 1940, pursuant to
procedures adopted by the Board of Trustees. Under these procedures, cross
trades are effected at current market prices. During the year ended October 31,
2018, the Fund did not engage in cross trade activity.
At October 31, 2018, the net unrealized depreciation on investments based on
cost for federal tax purposes of $676,385,677 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 39,734,752
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (68,611,109)
------------
Net unrealized depreciation $(28,876,357)
============
The accompanying notes are an integral part of these financial statements.
30 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
FUTURES CONTRACTS
CURRENCY FUTURES CONTRACTS
-------------------------------------------------------------------------------------------------
Number of
Contracts Expiration Notional Market Unrealized
Short Description Date Amount Value Appreciation
-------------------------------------------------------------------------------------------------
318 EURO 12/17/18 $ 46,629,557 $ 45,138,113 $ 1,491,444
237 Great British 12/17/18 19,485,844 18,954,075 531,769
Pound
-------------------------------------------------------------------------------------------------
$ 66,115,401 $ 64,092,188 $ 2,023,213
-------------------------------------------------------------------------------------------------
INDEX FUTURES CONTRACTS
-------------------------------------------------------------------------------------------------
Net
Number of Unrealized
Contracts Expiration Notional Market Appreciation
Short Description Date Amount Value (Depreciation)
-------------------------------------------------------------------------------------------------
1,468 Euro Stoxx 50 12/21/18 $ 55,511,079 $ 53,051,336 $ 2,459,743
634 FTSE/JSE Top 40 12/20/18 22,033,167 19,961,426 2,071,741
183 FTSE/MIB 12/21/18 19,549,549 19,654,730 (105,181)
404 MSCI China Free 12/21/18 16,692,049 14,909,620 1,782,429
847 MSCI Emerging 12/21/18 43,982,836 40,516,245 3,466,591
Market
95 Nasdaq 100 12/21/18 13,195,947 13,253,450 (57,503)
E-MINI
-------------------------------------------------------------------------------------------------
$170,964,627 $161,346,807 $ 9,617,820
-------------------------------------------------------------------------------------------------
TOTAL FUTURES CONTRACTS $237,080,028 $225,438,995 $11,641,033
=================================================================================================
SWAP CONTRACTS
OVER THE COUNTER (OTC) TOTAL RETURN SWAP CONTRACTS -- SELL PROTECTION
----------------------------------------------------------------------------------------------------------------------
Notional Obligation Pay/ Expiration Unrealized Market
Amount(1) Counterparty Reference/Index Receive(2) Coupon Date Depreciation Value
----------------------------------------------------------------------------------------------------------------------
26,483 Goldman Goldman Sachs Pay 3M LIBOR + 11/26/18 $ (397,509) $ (397,509)
Sachs Total Cash 39bps
International Return Index*
87,810 Goldman Goldman Sachs Pay 3M LIBOR + 5/1/19 (735,251) (735,251)
Sachs Total Cash 39bps
International Return Index*
----------------------------------------------------------------------------------------------------------------------
TOTAL SWAPS CONTRACTS $(1,132,760) $(1,132,760)
======================================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Pays Quarterly.
Principal amounts are denominated in U.S. dollars ("USD") unless otherwise
noted.
EUR -- Euro
GBP -- Great British Pound
HKD -- Hong Kong Dollar
JPY -- Japanese Yen
TRY -- Turkish Lira
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 31
Schedule of Investments | 10/31/18 (Consolidated) (continued)
* The following table shows the individual positions and related values of
the securities underlying each total return swap with Goldman Sachs
International, as of October 31, 2018.
--------------------------------------------------------------------------------------
Index Description Shares Value % of basket
--------------------------------------------------------------------------------------
AbbVie Inc. 306 $ (23,860) 2.11%
AES Corp. 1,787 (26,052) 2.30%
American Airlines Group, Inc. 474 (16,634) 1.47%
American International Group, Inc. 332 (13,699) 1.21%
Ameriprise Financial, Inc 158 (20,112) 1.78%
AmerisourceBergen Corp. 246 (21,674) 1.91%
Apple, Inc. 141 (30,791) 2.72%
Applied Materials, Inc. 498 (16,363) 1.44%
Archer-Daniels-Midland Co. 442 (20,872) 1.84%
Assurant, Inc. 210 (20,413) 1.80%
Boeing Co. 109 (38,801) 3.43%
Capital One Financial Corp. 251 (22,452) 1.98%
CBS Corp. 304 (17,413) 1.54%
CenturyLink, Inc. 787 (16,249) 1.43%
Corning, Inc. 700 (22,384) 1.98%
DENTSPLY SIRONA, Inc. 320 (11,067) 0.98%
Discover Financial Services 323 (22,495) 1.99%
eBay, Inc. 605 (17,560) 1.55%
Equity Residential 313 (20,328) 1.79%
Express Scripts Holding Co 329 (31,948) 2.82%
F5 Networks, Inc. 157 (27,431) 2.42%
General Electric Co. 697 (7,041) 0.62%
Gilead Sciences, Inc. 295 (20,100) 1.77%
HCA Healthcare, Inc. 240 (32,045) 2.83%
HP, Inc. 1,074 (25,922) 2.29%
LyondellBasell Industries NV 238 (21,285) 1.88%
McDonald's Corp. 144 (25,549) 2.26%
Michael Kors Holdings, Ltd. 541 (29,997) 2.65%
Monster Beverage Corp. 445 (23,536) 2.08%
Motorola Solutions, Inc. 235 (28,811) 2.54%
Navient Corp. 1,330 (15,396) 1.36%
NetApp, Inc. 507 (39,804) 3.52%
NRG Energy, Inc. 1,196 (43,276) 3.82%
ONEOK, Inc. 384 (25,199) 2.22%
Procter & Gamble Co. 231 (20,522) 1.81%
PulteGroup, Inc. 891 (21,903) 1.93%
Qorvo, Inc. 297 (21,837) 1.93%
Quest Diagnostics, Inc. 192 (18,026) 1.59%
Seagate Technology PLC 480 (19,298) 1.70%
Sysco Corp. 382 (27,266) 2.41%
Target Corp. 362 (30,261) 2.67%
TransDigm Group, Inc. 82 (27,050) 2.39%
The accompanying notes are an integral part of these financial statements.
32 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
--------------------------------------------------------------------------------------
Index Description Shares Value % of basket
--------------------------------------------------------------------------------------
Tyson Foods, Inc. 314 $ (18,845) 1.66%
United Continental Holdings, Inc. 288 (24,613) 2.17%
Valero Energy Corp. 313 (28,492) 2.52%
Western Union Co. 1,018 (18,357) 1.62%
Weyerhaeuser Co. 597 (15,889) 1.40%
Williams Cos, Inc. 660 (16,053) 1.42%
Yum! Brands, Inc. 307 (27,789) 2.45%
--------------------------------------------------------------------------------------
Totals $(1,132,760) 100.00%
======================================================================================
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments). See Notes to
Financial Statements -- Note 1A.
The following is a summary of the inputs used as of October 31, 2018, in
valuing the Fund's investments.
----------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------------------
Common Stocks $517,151,978 $ -- $ -- $517,151,978
Preferred Stock
Real Estate
Retail REIT -- -- 143,808 143,808
Corporate Bonds -- 26,789,440 -- 26,789,440
Foreign Government Bonds -- 21,751,716 -- 21,751,716
U.S. Government and Agency
Obligations -- 16,905,640 -- 16,905,640
Investment Companies 27,655,765 -- -- 27,655,765
Exchange-Traded Commodity 689,022 -- -- 689,022
Exchange-Traded Call Options
Purchased 2,720,808 -- -- 2,720,808
Exchange-Traded Put Option
Purchased 287,298 -- -- 287,298
Over The Counter (OTC) Call
Options Purchased -- 8,230,572 -- 8,230,572
Repurchase Agreements -- 14,675,000 -- 14,675,000
----------------------------------------------------------------------------------------------------------
Total Investments
in Securities $548,504,871 $88,352,368 $143,808 $637,001,047
----------------------------------------------------------------------------------------------------------
Other Financial Instruments
Net unrealized appreciation on
futures contracts 11,641,033 -- -- 11,641,033
Swap contracts, at value -- (1,132,760) -- (1,132,760)
----------------------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ 11,641,033 $(1,132,760) $ -- $ 10,508,273
==========================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 33
Schedule of Investments | 10/31/18 (Consolidated) (continued)
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
--------------------------------------------------------------------------------
Preferred
Stock
--------------------------------------------------------------------------------
Balance as of 10/31/17 $161,195
Realized gain (loss)(1) --
Changed in unrealized appreciation (depreciation)(2) (17,387)
Accrued discounts/premiums --
Purchases --
Sales --
Transfers in to Level 3* --
Transfers out of Level 3* --
--------------------------------------------------------------------------------
Balance as of 10/31/18 $143,808
================================================================================
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) on investments on the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) on investments on the
Statement of Operations.
* Transfers are calculated on the beginning of period values. During the
year ended October 31, 2018, there were no transfers between Levels 1, 2
and 3.
Net change in unrealized appreciation (depreciation) of Level 3 investments still held and
considered Level 3 at October 31, 2018: $(17,387)
--------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Statement of Assets and Liabilities | 10/31/18 (Consolidated)
ASSETS:
Investments in unaffiliated issuers, at value (cost $663,663,699) $637,001,047
Cash 3,668,806
Foreign currencies, at value (cost $14,706,609) 14,581,149
Futures collateral 15,400,500
Swap collateral 1,540,000
Net unrealized appreciation on futures contracts 11,641,033
Receivables --
Fund shares sold 740,718
Dividends 612,992
Interest 554,754
Due from the Adviser 55,460
Other assets 205,252
---------------------------------------------------------------------------------------------
Total assets $686,001,711
=============================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 5,936,239
Fund shares repurchased 2,223,989
Distributions 774
Trustees' fees 3,847
Options collateral 1,290,000
Due to broker 2,262,401
Due to broker for futures and options 11,814,926
Variation margin for futures contracts 2,694,665
Swap contracts, at value 1,132,760
Due to affiliates 84,346
Accrued expenses 329,259
---------------------------------------------------------------------------------------------
Total liabilities $ 27,773,206
=============================================================================================
NET ASSETS:
Paid-in capital $624,869,782
Distributable earnings 33,358,723
---------------------------------------------------------------------------------------------
Net assets $658,228,505
=============================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $142,760,281/11,254,259 shares) $ 12.69
Class C (based on $122,304,682/9,823,312 shares) $ 12.45
Class K (based on $69,449,042/5,474,846 shares) $ 12.69
Class R (based on $302,598/24,007 shares) $ 12.60
Class Y (based on $323,411,902/25,385,119 shares) $ 12.74
MAXIMUM OFFERING PRICE:
Class A (based on $12.69 net asset value per share/100%-4.50%
maximum sales charge) $ 13.29
=============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 35
Statement of Operations (Consolidated)
FOR THE YEAR ENDED 10/31/18
INVESTMENT INCOME:
Dividends from unaffiliated issuers (net of foreign
taxes withheld $988,342) $ 15,111,227
Interest from unaffiliated issuers 3,744,267
------------------------------------------------------------------------------------------------------
Total investment income $ 18,855,494
------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 5,206,035
Administrative expense 257,723
Transfer agent fees
Class A 75,506
Class C 99,009
Class R 1,184
Class Y 405,700
Distribution fees
Class A 384,089
Class C 1,428,522
Class R 1,652
Shareowner communications expense 55,398
Custodian fees 312,683
Registration fees 96,932
Professional fees 116,338
Printing expense 25,339
Pricing fees 5,627
Trustees' fees 32,311
Insurance expense 8,026
Miscellaneous 82,258
------------------------------------------------------------------------------------------------------
Total expenses $ 8,594,332
Less fees waived and expenses reimbursed by the Adviser (97,307)
------------------------------------------------------------------------------------------------------
Net expenses $ 8,497,025
------------------------------------------------------------------------------------------------------
Net investment income $ 10,358,469
------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $ 51,002,833
Futures contracts (5,517,234)
Swap contracts 8,742,805
Other assets and liabilities denominated
in foreign currencies (1,331,833) $ 52,896,571
------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $(94,868,422)
Futures contracts 14,644,450
Swap contracts (3,069,395)
Other assets and liabilities denominated
in foreign currencies (198,694) $(83,492,061)
------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $(30,595,490)
------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $(20,237,021)
======================================================================================================
The accompanying notes are an integral part of these financial statements.
36 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Statements of Changes in Net Assets (Consolidated)
----------------------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/18 10/31/17
----------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 10,358,469 $ 6,674,156
Net realized gain (loss) on investments 52,896,571 61,804,939
Change in net unrealized appreciation (depreciation)
on investments (83,492,061) 39,928,961
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (20,237,021) $ 108,408,056
----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:**
Class A ($1.23 and $0.12 per share, respectively) $ (12,321,509) $ (1,416,002)
Class C ($1.15 and $0.06 per share, respectively) (12,164,041) (820,498)
Class K* ($0.04 and $-- per share, respectively) (235,303) --
Class R ($1.18 and $0.08 per share, respectively) (23,045) (2,157)
Class Y ($1.26 and $0.16 per share, respectively) (34,491,439) (4,306,248)
----------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (59,235,337) $ (6,544,905)
==========================================================================================================
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales of shares $ 416,332,043 $ 127,803,029
Reinvestment of distributions 50,052,246 5,535,308
Cost of shares repurchased (387,377,293) (267,730,775)
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from Fund share transactions $ 79,006,996 $(134,392,438)
----------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (465,362) $ (32,529,287)
NET ASSETS:***
Beginning of year $ 658,693,867 $ 691,223,154
----------------------------------------------------------------------------------------------------------
End of year $ 658,228,505 $ 658,693,867
==========================================================================================================
* Class K shares commenced operations on June 22, 2018.
** For the year ended October 31, 2017 Distributions to Shareowners was presented as follows:
Net investment income:
Class A ($0.12 per share) $ (1,416,002)
Class C ($0.06 per share) (820,498)
Class K ($0.00 per share) --
Class R ($0.08 per share) (2,157)
Class Y ($0.16 per share) (4,306,248)
*** For the year ended October 31, 2017 undistributed net investment income was presented as
follows: $3,466,674
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 37
Statements of Changes in Net Assets (Consolidated) (continued)
------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/18 10/31/18 10/31/17 10/31/17
Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------
Class A
Shares sold 5,191,038 $ 71,343,681 1,560,400 $ 19,940,069
Reinvestment of distributions 815,397 10,960,003 100,053 1,248,365
Less shares repurchased (4,654,378) (63,474,073) (5,467,662) (68,177,267)
------------------------------------------------------------------------------------------------------------
Net increase
(decrease) 1,352,057 $ 18,829,611 (3,807,209) $ (46,988,833)
============================================================================================================
Class C
Shares sold 1,547,855 $ 20,844,972 727,136 $ 9,039,802
Reinvestment of distributions 754,210 9,956,786 53,726 643,644
Less shares repurchased (3,128,303) (42,138,973) (5,156,033) (64,137,045)
------------------------------------------------------------------------------------------------------------
Net decrease (826,238) $ (11,337,215) (4,375,171) $ (54,453,599)
============================================================================================================
Class K*
Shares sold 5,985,981 $ 80,532,422 -- $ --
Reinvestment of distributions -- -- -- --
Less shares repurchased (511,135) (6,893,926) -- --
------------------------------------------------------------------------------------------------------------
Net increase 5,474,846 $ 73,638,496 -- $ --
============================================================================================================
Class R
Shares sold 10,792 $ 147,330 8,525 $ 103,330
Reinvestment of distributions 538 7,201 70 841
Less shares repurchased (7,077) (94,835) (12,309) (151,715)
------------------------------------------------------------------------------------------------------------
Net increase
(decrease) 4,253 $ 59,696 (3,714) $ (47,544)
============================================================================================================
Class Y
Shares sold 17,504,887 $ 243,463,638 7,774,087 $ 98,719,828
Reinvestment of distributions 2,157,757 29,128,256 288,109 3,642,458
Less shares repurchased (20,262,452) (274,775,486) (10,856,968) (135,264,748)
------------------------------------------------------------------------------------------------------------
Net decrease (599,808) $ (2,183,592) (2,794,772) $ (32,902,462)
============================================================================================================
* Class K shares commenced operations on June 22, 2018.
The accompanying notes are an integral part of these financial statements.
38 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Financial Highlights (Consolidated)
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/18 10/31/17 10/31/16* 10/31/15* 10/31/14*
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 14.17 $ 12.03 $ 12.68 $ 12.94 $ 13.33
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.19(a) $ 0.14(a) $ 0.16(a) $ 0.17(a) $ 0.27
Net realized and unrealized gain (loss) on investments (0.44) 2.12 (0.07) 0.20 (0.09)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.25) $ 2.26 $ 0.09 $ 0.37 $ 0.18
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.35) $ (0.12) $ (0.18) $ (0.30) $ (0.08)
Net realized gain (0.88) -- (0.56) (0.33) (0.49)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.23) $ (0.12) $ (0.74) $ (0.63) $ (0.57)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.48) $ 2.14 $ (0.65) $ (0.26) $ (0.39)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.69 $ 14.17 $ 12.03 $ 12.68 $ 12.94
====================================================================================================================================
Total return (b) (2.08)% 18.96% 0.88% 2.85% 1.45%
Ratio of net expenses to average net assets (c) 1.14% 1.18% 1.19% 1.20% 1.23%
Ratio of net investment income (loss) to average net assets 1.35% 1.08% 1.38% 1.33% 1.60%
Portfolio turnover rate 255% 292% 230% 295% 383%
Net assets, end of period (in thousands) $142,760 $140,278 $164,898 $209,001 $227,251
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets (c) 1.14% 1.18% 1.19% 1.26% 1.23%
Net investment income (loss) to average net assets 1.35% 1.08% 1.38% 1.27% 1.60%
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(c) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.00% and 0.05%,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 39
Financial Highlights (Consolidated) (continued)
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/18 10/31/17 10/31/16* 10/31/15* 10/31/14*
------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 13.95 $ 11.88 $ 12.56 $ 12.78 $ 13.21
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.07(a) $ 0.04(a) $ 0.07(a) $ 0.07(a) $ 0.13
Net realized and unrealized gain (loss) on investments (0.42) 2.09 (0.07) 0.20 (0.05)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.35) $ 2.13 $ -- $ 0.27 $ 0.08
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.27) $ (0.06) $ (0.12) $ (0.16) $ (0.02)
Net realized gain (0.88) -- (0.56) (0.33) (0.49)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.15) $ (0.06) $ (0.68) $ (0.49) $ (0.51)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.50) $ 2.07 $ (0.68) $ (0.22) $ (0.43)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.45 $ 13.95 $ 11.88 $ 12.56 $ 12.78
====================================================================================================================================
Total return (b) (2.83)% 18.01% 0.09% 2.12% 0.60%
Ratio of net expenses to average net assets (c) 1.91% 1.93% 1.94% 2.01% 1.97%
Ratio of net investment income (loss) to average net assets 0.55% 0.34% 0.63% 0.52% 0.89%
Portfolio turnover rate 255% 292% 230% 295% 383%
Net assets, end of period (in thousands) $122,305 $148,591 $178,457 $218,597 $238,164
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(c) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.00% and 0.05%,
respectively.
The accompanying notes are an integral part of these financial statements.
40 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------
6/22/18* to
10/31/18
-----------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 13.67
-----------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.06(a)
Net realized and unrealized gain (loss) on investments (1.00)
-----------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.94)
-----------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.04)
Net realized gain --
-----------------------------------------------------------------------------------
Total distributions $ (0.04)
-----------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.98)
-----------------------------------------------------------------------------------
Net asset value, end of period $ 12.69
===================================================================================
Total return (b) (2.00)%(c)
Ratio of net expenses to average net assets 0.88%(d)
Ratio of net investment income (loss) to average net assets 1.28%(d)
Portfolio turnover rate 255%(c)
Net assets, end of period (in thousands) $69,449
===================================================================================
* Class K commenced operations on June 22, 2018.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
(c) Not annualized.
(d) Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 41
Financial Highlights (Consolidated) (continued)
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/18 10/31/17 10/31/16* 10/31/15* 10/31/14*
------------------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $14.11 $12.00 $12.69 $12.92 $13.32
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.10(a) $ 0.08(a) $ 0.10(a) $ 0.06(a) $ 0.15
Net realized and unrealized gain (loss) on investments (0.43) 2.11 (0.08) 0.19 0.00(b)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $(0.33) $ 2.19 $ 0.02 $ 0.25 $ 0.15
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $(0.30) $(0.08) $(0.15) $(0.15) $(0.06)
Net realized gain (0.88) -- (0.56) (0.33) (0.49)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $(1.18) $(0.08) $(0.71) $(0.48) $(0.55)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(1.51) $ 2.11 $(0.69) $(0.23) $(0.40)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.60 $14.11 $12.00 $12.69 $12.92
====================================================================================================================================
Total return (c) (2.71)% 18.35% 0.34% 1.90% 1.19%
Ratio of net expenses to average net assets (d) 1.82% 1.62% 1.71% 2.01% 1.55%
Ratio of net investment income (loss) to average net assets 0.75% 0.64% 0.86% 0.47% 1.40%
Portfolio turnover rate 255% 292% 230% 295% 383%
Net assets, end of period (in thousands) $ 303 $ 279 $ 282 $ 120 $ 74
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Amount rounds to less than $0.01 or $(0.01) per share.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
(d) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.00% and 0.05%,
respectively.
The accompanying notes are an integral part of these financial statements.
42 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/18 10/31/17 10/31/16* 10/31/15* 10/31/14*
------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 14.22 $ 12.08 $ 12.72 $ 12.97 $ 13.37
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.24(a) $ 0.18(a) $ 0.20(a) $ 0.21(a) $ 0.27
Net realized and unrealized gain (loss) on investments (0.46) 2.12 (0.08) 0.20 (0.05)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.22) $ 2.30 $ 0.12 $ 0.41 $ 0.22
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.38) $ (0.16) $ (0.20) $ (0.33) $ (0.13)
Net realized gain (0.88) -- (0.56) (0.33) (0.49)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.26) $ (0.16) $ (0.76) $ (0.66) $ (0.62)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.48) $ 2.14 $ (0.64) $ (0.25) $ (0.40)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.74 $ 14.22 $ 12.08 $ 12.72 $ 12.97
====================================================================================================================================
Total return (b) (1.86)% 19.24% 1.17% 3.20% 1.70%
Ratio of net expenses to average net assets (c) 0.90% 0.90% 0.90% 0.90% 0.95%
Ratio of net investment income (loss) to average net assets 1.71% 1.37% 1.65% 1.63% 1.92%
Portfolio turnover rate 255% 292% 230% 295% 383%
Net assets, end of period (in thousands) $323,412 $369,546 $347,586 $378,895 $401,336
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expense to average net assets (c) 0.92% 0.95% 0.96% 1.02% 1.00%
Net investment income (loss) to average net assets 1.69% 1.32% 1.59% 1.52% 1.92%
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
(c) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.00% and 0.05%,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 43
Notes to Financial Statements | 10/31/18 (Consolidated)
1. Organization and Significant Accounting Policies
Pioneer Flexible Opportunities Fund (the "Fund") is one of two portfolios
comprising Pioneer Series Trust VI (the "Trust"), a Delaware statutory trust.
The Fund is registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. The Fund's investment
objective is to seek total return.
The Fund offers six classes of shares designated as Class A, Class C, Class K,
Class R, Class T and Class Y shares. Class K commenced operations on June 22,
2018. Class T shares had not commenced operations as of October 31, 2018. Each
class of shares represents an interest in the same portfolio of investments of
the Fund and has identical rights (based on relative net asset values) to
assets and liquidation proceeds. Share classes can bear different rates of
class-specific fees and expenses such as transfer agent and distribution fees.
Differences in class-specific fees and expenses will result in differences in
net investment income and, therefore, the payment of different dividends from
net investment income earned by each class. The Amended and Restated
Declaration of Trust of the Fund gives the Board of Trustees the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class K and Class Y shares.
Amundi Pioneer Asset Management, Inc., an indirect wholly owned subsidiary of
Amundi and Amundi's wholly owned subsidiary, Amundi USA, Inc., serves as the
Fund's investment adviser (the "Adviser"). Amundi Pioneer Distributor, Inc., an
affiliate of Amundi Pioneer Asset Management, Inc., serves as the Fund's
distributor (the "Distributor").
In August 2018, the SEC released a Disclosure Update and Simplification Final
Rule. The Final Rule amends Regulation S-X disclosures requirements to conform
them to U.S. Generally Accepted Accounting Principles ("U.S. GAAP") for
investment companies. The Fund's financial statements were prepared in
compliance with the new amendments to Regulation S-X.
The consolidated financial statements of the Fund include the accounts of
Flexible Opportunities Commodity Fund Ltd. (formerly, Pioneer Cayman Commodity
Fund Ltd.) (the "Subsidiary"). All intercompany accounts and transactions have
been eliminated. The Subsidiary, a Cayman Islands exempted
44 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
company, was incorporated on February 10, 2010, and is wholly-owned and
controlled by the Fund. The Fund is the sole shareholder of the Subsidiary. It
is intended that the Fund will remain the sole shareholder and will continue to
control the Subsidiary. The Fund and the Subsidiary are both managed by the
Adviser. The Subsidiary acts as an investment vehicle for the Fund in order to
effect certain investments on behalf of the Fund. As of October 31, 2018, the
Subsidiary represented $7,635,968, or approximately 1.16%, of the net assets of
the Fund.
The Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. U.S. GAAP requires the management of the
Fund to 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:
A. Security Valuation
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.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities
for which sale prices are not available, generally are valued using the
mean between the last bid and asked prices or, if both last bid and asked
prices are not available, at the last quoted bid price. Last sale and bid
and asked prices are provided by independent third party pricing services.
In the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party
pricing source. Trading in non-U.S. equity securities is substantially
completed each day at various times prior to the close of the NYSE. The
values of such securities used in computing the net asset value of the
Fund's shares are determined as of such times. The Fund may use a fair
value model developed by an independent pricing service to value non-U.S.
equity securities.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 45
ratings, or may use a pricing matrix or other fair value methods or
techniques to provide an estimated value of the security or instrument. A
pricing matrix is a means of valuing a debt security on the basis of
current market prices for other debt securities, historical trading
patterns in the market for fixed-income securities and/or other factors.
Non-U.S. debt securities that are listed on an exchange will be valued at
the bid price obtained from an independent third party pricing service.
When independent third party pricing services are unable to supply prices,
or when prices or market quotations are considered to be unreliable, the
value of that security may be determined using quotations from one or more
broker-dealers.
Options contracts are generally valued at the mean between the last bid
and ask prices on the principal exchange where they are traded.
Over-the-counter ("OTC") options and options on swaps ("swaptions") are
valued using prices supplied by independent pricing services, which
consider such factors as market prices, market events, quotations from one
or more brokers, Treasury spreads, yields, maturities and ratings, or may
use a pricing matrix or other fair value methods or techniques to provide
an estimated value of the security or instrument.
Futures contracts are generally valued at the closing settlement price
established by the exchange on which they are traded.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealers Association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer-term forward contract positions, the
spot currency rate and the forward points on a daily basis, in each case
provided by a third party pricing service. Contracts whose forward
settlement date falls between two quoted days are valued by interpolation.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Shares of
exchange-listed closed-end funds are valued by using the last sale price
on the principal exchange where they are traded.
Repurchase agreements are valued at par. Cash may include overnight time
deposits at approved financial institutions.
Securities for which independent pricing services or broker-dealers are
unable to supply prices or for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued by a
fair valuation team comprised of certain personnel of the Adviser pursuant
to procedures adopted by the Fund's Board of Trustees. The Adviser's fair
46 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
valuation team uses fair value methods approved by the Valuation Committee
of the Board of Trustees. The Adviser's fair valuation team is responsible
for monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after
the close of the exchange or market on which the security trades and prior
to the determination of the Fund's net asset value. Examples of a
significant event might include political or economic news, corporate
restructurings, natural disasters, terrorist activity or trading halts.
Thus, the valuation of the Fund's securities may differ significantly from
exchange prices, and such differences could be material.
At October 31, 2018, one security was valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services, broker-dealers or using a third party insurance industry pricing
model) representing 0.02% of net assets. The value of this valued security
was $143,808.
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
Interest income, including interest on income-bearing cash accounts, is
recorded on the accrual basis. Dividend and interest income are reported
net of unrecoverable foreign taxes withheld at the applicable country
rates and net of income accrued on defaulted securities.
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 47
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on
foreign currency contracts, disposition of foreign currencies and the
difference between the amount of income accrued and the U.S. dollars
actually received. Further, the effects of changes in foreign currency
exchange rates on investments are not segregated on the Statement of
Operations from the effects of changes in the market prices of those
securities, but are included with the net realized and unrealized gain or
loss on investments.
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 net taxable income and net realized capital gains,
if any, to its shareowners. Therefore, no provision for federal income
taxes is required. As of October 31, 2018, the Fund did not accrue any
interest or penalties with respect to uncertain tax positions, which, if
applicable, would be recorded as an income tax expense on the Statement of
Operations. Tax returns filed within the prior three years remain subject
to examination by federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary over distributions for
financial statement purposes resulting from differences in the recognition
or classification of income or distributions for financial statement and
tax purposes. Capital accounts within the financial statements are
adjusted for permanent book/tax differences to reflect tax character, but
are not adjusted for temporary differences.
At October 31, 2018, the Fund reclassified $1,834,128 to increase
distributable earnings and $1,834,128 to decrease paid-in capital to
reflect permanent book/tax differences. These adjustments have no impact
on net assets or the results of operations.
The tax character of distributions paid during the years ended October 31,
2018 and October 31, 2017, were as follows:
--------------------------------------------------------------------------
2018 2017
--------------------------------------------------------------------------
Distributions paid from:
Ordinary income $42,775,677 $6,544,905
Long Term 16,459,660 --
--------------------------------------------------------------------------
Total $59,235,337 $6,544,905
==========================================================================
48 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2018:
--------------------------------------------------------------------------
2018
--------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 18,876,057
Undistributed long term capital gain 43,526,756
Unrealized depreciation (29,044,090)
--------------------------------------------------------------------------
Total $ 33,358,723
==========================================================================
The difference between book-basis and tax-basis net unrealized
depreciation is attributable to the tax deferral of losses on wash sales,
adjustments related to the mark-to-market of futures contracts, tax basis
adjustments on Real Estate Investment Trust ("REIT"), partnerships and
swaps contracts.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor earned $27,678 in underwriting commissions on the sale of
Class A shares during the year ended October 31, 2018.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset
value attributable to Class A, Class C and Class R shares of the Fund,
respectively (see Note 4). Class K and Class Y shares do not pay
distribution fees. All expenses and fees paid to the Fund's transfer agent
for its services are allocated among the classes of shares based on the
number of accounts in each class and the ratable allocation of related
out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, Class K, Class R and
Class Y shares can reflect different transfer agent and distribution
expense rates.
G. Risks
The value of securities held by the Fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real
or perceived adverse economic, political or regulatory conditions,
inflation, changes in interest rates, lack of liquidity in the bond
markets or adverse investor sentiment. In the past several years,
financial markets have
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 49
experienced increased volatility, depressed valuations, decreased
liquidity and heightened uncertainty. These conditions may continue,
recur, worsen or spread.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or
other risks affecting those industries and sectors. The Fund's investments
in foreign markets and countries with limited developing markets may
subject the Fund to a greater degree of risk than investments in a
developed market. These risks include disruptive political or economic
conditions and the imposition of adverse governmental laws or currency
exchange restrictions.
The Fund may gain exposure to commodities (such as oil and precious
metals) through investment in commodity-related investments, including
commodity-linked derivatives, ETFs and leveraged or unleveraged
commodity-linked notes (derivative debt instruments with principal and/or
coupon payments linked to the performance of commodity indices).The Fund
also may invest in equity securities of issuers in commodity-related
industries. The Fund's investments in commodity-related investments may
subject the Fund to greater market price volatility than investments in
traditional securities. The value of commodity-related investments may be
affected by changes in overall market movements, commodity index
volatility, changes in interest rates, or factors affecting particular
industries or commodities, such as weather, disease, embargoes, acts of
war or terrorism, or political and regulatory developments.
Commodity-related investments may be more volatile than the underlying
commodities. In addition, commodity-linked investments are subject to
counterparty risk due to there being a relatively small number of issuers.
The Fund gains exposure to commodity-related investments by investing in
the Subsidiary, a foreign entity that is treated as a controlled foreign
corporation for U.S. federal income tax purposes. The Fund may invest up
to 25% of its total assets in the Subsidiary. The Fund's ability to invest
in commodity-related investments, and the means through which any such
investments may be made, is limited by tax considerations.
The Fund may invest in REIT securities, the value of which can fall for a
variety of reasons, such as declines in rental income, fluctuating
interest rates, poor property management, environmental liabilities,
uninsured damage, increased competition, or changes in real estate tax
laws.
Interest rates in the U.S. have been historically low and have begun to
rise, so the Fund faces a heightened risk that interest rates may continue
to rise. A general rise in interest rates could adversely affect the price
and liquidity of fixed-income securities and could also result in
increased redemptions from the Fund.
50 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
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.
With the increased use of technologies such as the Internet to conduct
business, the Fund is susceptible to operational, information security and
related risks. While the Fund's Adviser has established business
continuity plans in the event of, and risk management systems to prevent,
limit or mitigate, such cyber-attacks, there are inherent limitations in
such plans and systems including the possibility that certain risks have
not been identified. Furthermore, the Fund cannot control the
cybersecurity plans and systems put in place by service providers to the
Fund such as Brown Brothers Harriman & Co., the Fund's custodian and
accounting agent, and DST Asset Manager Solutions, Inc., the Fund's
transfer agent. In addition, many beneficial owners of Fund shares hold
them through accounts at broker-dealers, retirement platforms and other
financial market participants over which neither the Fund nor Amundi
Pioneer exercises control. Each of these may in turn rely on service
providers to them, which are also subject to the risk of cyber-attacks.
Cybersecurity failures or breaches at Amundi Pioneer or the Fund's service
providers or intermediaries have the ability to cause disruptions and
impact business operations, potentially resulting in financial losses,
interference with the Fund's ability to calculate its net asset value,
impediments to trading, the inability of Fund shareowners to effect share
purchases, redemptions or exchanges or receive distributions, loss of or
unauthorized access to private shareowners information and violations of
applicable privacy and other laws, regulatory fines, penalties,
reputational damage, or additional compliance costs. Such costs and losses
may not be covered under any insurance. In addition, maintaining vigilance
against cyber-attacks may involve substantial costs over time, and system
enhancements may themselves be subject to cyber-attacks.
The Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
H. Repurchase Agreements
Repurchase agreements are arrangements under which the Fund purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Fund at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Fund. The securities purchased serve
as the Fund's collateral
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 51
for the obligation of the counterparty to repurchase the securities. The
value of the collateral, including accrued interest, is required to be
equal to or in excess of the repurchase price. The collateral for all
repurchase agreements is held in safekeeping in the customer-only account
of the Fund's custodian or a sub-custodian of the Fund. The Adviser is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price. In the event of a default by the
counterparty, the Fund is entitled to sell the securities, but the Fund
may not be able to sell them for the price at which they were purchased,
thus causing a loss to the Fund. Additionally, if the counterparty becomes
insolvent, there is some risk that the Fund will not have a right to the
securities, or the immediate right to sell the securities.
Open repurchase agreements as of October 31, 2018 are disclosed in the
Fund's Schedule of Investments.
I. Purchased Options
The Fund may purchase put and call options to seek to increase total
return. Purchased call and put options entitle the Fund to buy and sell a
specified number of shares or units of a particular security, currency or
index at a specified price at a specific date or within a specific period
of time. Upon the purchase of a call or put option, the premium paid by
the Fund is included on the Statement of Assets and Liabilities as an
investment. All premiums are marked-to-market daily, and any unrealized
appreciation or depreciation is recorded on the Fund's Statement of
Operations. As the purchaser of an index option, the Fund has the right to
receive a cash payment equal to any depreciation in the value of the index
below the strike price of the option (in the case of a put) or equal to
any appreciation in the value of the index over the strike price of the
option (in the case of a call) as of the valuation date of the option.
Premiums paid for purchased call and put options which have expired are
treated as realized losses on investments on the Statement of Operations.
Upon the exercise or closing of a purchased put option, the premium is
offset against the proceeds on the sale of the underlying security or
financial instrument in order to determine the realized gain or loss on
investments. Upon the exercise or closing of a purchased call option, the
premium is added to the cost of the security or financial instrument. The
risk associated with purchasing options is limited to the premium
originally paid.
The average market value of purchased options contracts open during the
year ended October 31, 2018 was $13,640,372. Open purchased options at
October 31, 2018 are listed in the Fund's Schedule of Investments.
J. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price,
upon the
52 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
exercise of the option. When the Fund writes an option, an amount equal to
the premium received by the Fund is recorded as "Written options
outstanding" on the Statement of Assets and Liabilities and is
subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments on the
Statement of Operations. The difference between the premium and the amount
paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain on the Statement of
Operations, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss on the Statement of
Operations. If a call option is exercised, the premium is added to the
proceeds from the sale of the underlying security in determining whether
the Fund has realized a gain or loss. The Fund as writer of an option
bears the market risk of an unfavorable change in the price of the
security underlying the written option.
The average market value of written options for the year ended October 31,
2018 was $(65,794). There were no open written options contracts at
October 31, 2018.
K. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on
a futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
October 31, 2018, is recorded as "Futures collateral" on the Statement of
Assets and Liabilities.
Subsequent payments for futures contracts ("variation margin") are paid or
received by the Fund, depending on the daily fluctuation in the value of
the contracts, and are recorded by the Fund as unrealized appreciation or
depreciation. Cash received from or paid to the broker related to previous
margin movement is held in a segregated account at the broker and is
recorded as either "Due from broker for futures" or "Due to broker for
futures" on the Statement of Assets and Liabilities. When the contract is
closed, the Fund realizes a gain or loss equal to the difference between
the opening and closing value of the contract as well as any fluctuation
in foreign currency exchange rates where applicable. Futures contracts are
subject to market risk, interest rate risk and currency exchange rate
risk. Changes in value of the contracts may not directly correlate to the
changes in value of the underlying securities. With futures, there is
reduced counterparty credit risk
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 53
to the Fund since futures are exchange-traded and the exchange's
clearinghouse, as counterparty to all exchange-traded futures, guarantees
the futures against default.
The average market value of contracts open during the year ended October
31, 2018, was $(177,698,885). Open futures contracts outstanding at
October 31, 2018 are listed in the Schedule of Investments.
L. Total Return Swap Contracts
The Fund may enter into total return swap contracts to attempt to manage
and/or gain exposure to a security or market. Pursuant to total return
swap contracts, the Fund negotiates with a counterparty to exchange a
periodic stream of payments. One party makes payments based on the total
return of a reference asset (such as a security or a basket of securities
or securities index), and in return receives fixed or floating rate
interest payments. The total return of the reference asset typically
includes appreciation or depreciation on the reference asset, plus any
interest or dividend payments. To the extent that the total return of the
reference asset exceeds or falls short of the offsetting interest rate
obligation, the Fund will receive a payment from or make a payment to the
counterparty.
Total return swap contracts are marked-to-market daily using valuations
supplied by independent sources, and the change in value, if any, is
recorded within "Swap contracts, at value" in the Statement of Assets and
Liabilities. Payments received or made are recorded as realized gains or
losses on the Statement of Operations. Total return swap contracts are
subject to counterparty risk and unanticipated movements in value of
exchange rates, interest rates, securities or the index.
The average market value of total return swap contracts open during the
year ended October 31, 2018 was $976,103. Open total return swap contracts
at October 31, 2018 are listed in the Schedule of Investments.
2. Management Agreement
The Adviser manages the Fund's portfolio. Effective October 1, 2018, management
fees are calculated daily at an annual rate of 0.70% of the Fund's average
daily net assets up to $1 billion, 0.675% of the next $1 billion and 0.65% on
average daily net assets over $2 billion. Prior to October 1, 2018, management
fees were calculated daily at an annual rate of 0.70% of the average daily net
assets of the Fund, excluding assets invested in the Subsidiary and on which
the Subsidiary pays a management fee.
54 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
The Subsidiary has entered into a separate management contract with the
Adviser, pursuant to which the Adviser manages the assets of the Subsidiary. As
compensation for its management services to the Subsidiary and expenses
incurred with respect to the Subsidiary, the Subsidiary pays the Adviser a fee
at the annual rate of 0.70% of the Subsidiary's average daily net assets.
The Adviser has contractually agreed to limit ordinary operating expenses
(ordinary operating expenses means all fund expenses other than taxes,
brokerage commissions, acquired fund fees and expenses and extraordinary
expenses, such as litigation) to the extent required to reduce Fund expenses to
1.20%, 0.90% and 0.90% of the average daily net assets attributable to Class A,
Class K and Class Y shares, respectively. These expense limitations are in
effect through March 1, 2019. Fees waived and expenses reimbursed during the
year ended October 31, 2018 are reflected on the Statement of Operations. Fees
and expenses of other investment companies in which the Fund may invest are not
included in the expense limitations noted above. There can be no assurance that
the Adviser will extend the expense limitation agreement for a class of shares
beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$62,902 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at October 31, 2018.
3. Transfer Agent
DST Asset Manager Solutions, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings, and outgoing phone calls. For the year
ended October 31, 2018, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareowner Communications
--------------------------------------------------------------------------------
Class A $18,779
Class C 19,837
Class K 200
Class R 437
Class Y 16,145
--------------------------------------------------------------------------------
Total $55,398
================================================================================
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 55
4. Distribution and Service Plans
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A, Class C and
Class R shares. Pursuant to the Plan, the Fund pays the Distributor 0.25% of
the average daily net assets attributable to Class A shares as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class A shares. Pursuant to the Plan, the Fund also pays the
Distributor 1.00% of the average daily net assets attributable to Class C
shares. The fee for Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class C shares.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $21,444 in distribution fees payable to the Distributor at
October 31, 2018.
The Fund also has adopted a separate service plan for Class R shares (the
"Service Plan"). The Service Plan authorizes the Fund to pay securities
dealers, plan administrators or other service organizations that agree to
provide certain services to retirement plans or plan participants holding
shares of the Fund a service fee of up to 0.50% of the Fund's average daily net
assets attributable to Class R shares held by such plans.
In addition, redemptions of each class of shares (except Class K, Class R and
Class Y shares) may be subject to a contingent deferred sales charge ("CDSC").
A CDSC of 1.00% may be imposed on redemptions of certain net asset value
purchases of Class A shares within 12 months of purchase. Redemptions of Class
C shares within 12 months of purchase are subject to a CDSC of 1.00%, based on
the lower of cost or market value of shares being redeemed. Shares purchased as
part of an exchange remain subject to any CDSC that applied to the original
purchase of those shares. There is no CDSC for Class K, Class R or Class Y
shares. Proceeds from the CDSCs are paid to the Distributor. For the year ended
October 31, 2018, CDSCs in the amount of $8,194 were paid to the Distributor.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
"Funds"), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act.
Effective August 1, 2018, the Fund participates in a credit facility that is in
the amount of $250 million. Prior to August 1, 2018, the credit facility that
was in the amount of $195 million. Under such credit facility, depending on the
type of loan, interest on borrowings is payable at the London Interbank Offered
Rate ("LIBOR") plus 0.90% on an annualized basis, or the Alternate Base Rate,
56 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
which is the greater of (a) the facility's administrative agent's daily
announced prime rate on the borrowing date, (b) 2% plus the Federal Funds Rate
on the borrowing date, or (c) 2% plus the overnight Eurodollar rate on the
borrowing date. The Funds pay an annual commitment fee to participate in a
credit facility. The commitment fee is allocated among participating Funds
based on an allocation schedule set forth in the credit agreement. For the year
ended October 31, 2018, the Fund had no borrowings under the credit facility.
6. Master Netting Agreements
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the
trading of certain Over the Counter ("OTC") derivatives and typically contains,
among other things, close-out and set-off provisions which apply upon the
occurrence of an event of default and/or a termination event as defined under
the relevant ISDA Master Agreement. The ISDA Master Agreement may also give a
party the right to terminate all transactions traded under such agreement if,
among other things, there is deterioration in the credit quality of the other
party.
Upon an event of default or a termination of the ISDA Master Agreement, the
non-defaulting party has the right to close out all transactions under such
agreement and to net amounts owed under each transaction to determine one net
amount payable by one party to the other. The right to close out and net
payments across all transactions under the ISDA Master Agreement could result
in a reduction of the Fund's credit risk to its counterparty equal to any
amounts payable by the Fund under the applicable transactions, if any. However,
the Fund's right to setoff may be restricted or prohibited by the bankruptcy or
insolvency laws of the particular jurisdiction to which each specific ISDA of
each counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which
may vary by counterparty. Collateral pledged for the benefit of the Fund and/or
counterparty is held in segregated accounts by the Fund's custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Fund's
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 57
collateral obligations, if any, will be reported separately on the Statement of
Assets and Liabilities as "Swaps collateral". Securities pledged by the Fund as
collateral, if any, are identified as such on the Schedule of Investments.
Financial instruments subject to an enforceable master netting agreement, such
as an ISDA Master Agreement, have been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Fund
as of October 31, 2018.
------------------------------------------------------------------------------------------------------------------
Derivative Assets Derivatives Non-Cash Cash Net Amount
Subject to Master Available for Collateral Collateral of Derivative
Counterparty Netting Agreement Offset Received (a) Received (a) Assets (b)
------------------------------------------------------------------------------------------------------------------
Citibank N.A. $6,450,923 $ -- $ -- $ -- $6,450,923
Citigroup Global
Markets, Inc. 130,535 -- -- -- 130,535
Goldman Sachs
International -- -- -- -- --
JPMorgan Chase
Bank N.A. 1,649,114 -- -- -- 1,649,114
------------------------------------------------------------------------------------------------------------------
Total $8,230,572 $ -- $ -- $ -- $8,230,572
==================================================================================================================
------------------------------------------------------------------------------------------------------------------
Derivative Liabilities Derivatives Non-Cash Cash Net Amount
Subject to Master Available for Collateral Collateral of Derivative
Counterparty Netting Agreement Offset Pledged (a) Pledged (a) Liabilities (c)
------------------------------------------------------------------------------------------------------------------
Citibank N.A. $ -- $ -- $ -- $ -- $ --
Citigroup Global
Markets, Inc. -- -- -- -- --
Goldman Sachs
International 1,132,760 -- -- (1,132,760) --
JPMorgan Chase
Bank N.A. -- -- -- -- --
------------------------------------------------------------------------------------------------------------------
Total $1,132,760 $ -- $ -- $(1,132,760) $ --
==================================================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged, as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
7. Additional Disclosures about Derivative Instruments and Hedging Activities
The Fund's use of derivatives may enhance or mitigate the Fund's exposure to
the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
58 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments
as a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange rate risk), whether caused by factors specific to
an individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at October 31,
2018 was as follows:
--------------------------------------------------------------------------------------------
Statement of Assets and Liabilities
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Rate Risk Risk Risk
--------------------------------------------------------------------------------------------
Assets
Call options
purchased* $ -- $ -- $ -- $ 8,230,572 $ --
Net unrealized
appreciation on
futures contracts $ -- $ -- $2,023,213 $ 9,617,820 $ --
--------------------------------------------------------------------------------------------
Total Value $ -- $ -- $2,023,213 $17,848,392 $ --
============================================================================================
Liabilities
Swap contracts,
at value $ -- $ -- $ -- $ 1,132,760 $ --
--------------------------------------------------------------------------------------------
Total Value $ -- $ -- $ -- $ 1,132,760 $ --
============================================================================================
* Reflects the market value of purchased option contracts (see Note 1I.).
These amounts are included in investments in unaffiliated issuers, at
value, on the statement of assets and liabilities.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 59
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at October 31, 2018 was as follows:
-----------------------------------------------------------------------------------------------------
Statement of Operations
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Rate Risk Risk Risk
-----------------------------------------------------------------------------------------------------
Net realized gain
(loss) on:
Call options
purchased** $ -- $ -- $ -- $ 16,955,273 $ --
Futures contracts (1,258,797) -- (1,127,755) (1,141,148) (1,989,534)
Swap contracts -- -- -- 8,742,805 --
-----------------------------------------------------------------------------------------------------
Total Value $(1,258,797) $ -- $(1,127,755) $ 24,556,930 $(1,989,534)
=====================================================================================================
Change in net
unrealized
appreciation
(depreciation) on:
Call options
purchased** $ -- $ -- $ -- $(11,822,728) $ --
Put options
purchased*** -- -- -- 764,533 --
Futures contracts 64,832 -- 614,831 13,964,787 --
Swap contracts -- -- -- (3,069,395) --
-----------------------------------------------------------------------------------------------------
Total Value $ 64,832 $ -- $ 614,831 $ (162,803) $ --
=====================================================================================================
** Reflects the net realized gain (loss) on purchased option contracts (see
Note 1I.). These amounts are included in net realized gain (loss) on
investments in unaffiliated issuers, on the statements of operations.
*** Reflects the change in net unrealized appreciation (depreciation) on
purchased option contracts (see Note 1I.). These amounts are included in
change in net unrealized appreciation (depreciation) on Investments in
unaffiliated issuers, on the statements of operations.
60 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VI and the Shareholders of
Pioneer Flexible Opportunities Fund:
--------------------------------------------------------------------------------
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of assets and
liabilities, including the consolidated schedule of investments, of Pioneer
Flexible Opportunities Fund (the "Fund") (one of the funds constituting Pioneer
Series Trust VI (the "Trust")) as of October 31, 2018, and the related
consolidated statements of operations, consolidated changes in net assets and
the consolidated financial highlights for the year then ended and the related
notes, and the consolidated statement of changes in net assets and financial
highlights for the year ended October 31, 2017 (collectively referred to as the
"financial statements"). The financial highlights for periods ended October 31,
2014, October 31, 2015 and October 31, 2016 were audited by another independent
registered public accounting firm whose report, dated December 23, 2016,
expressed an unqualified opinion on those financial highlights. In our opinion,
the financial statements present fairly, in all material respects, the
financial position of the Fund at October 31, 2018, the results of its
operations, the changes in its net assets, and the financial highlights for the
year ended, and the statement of changes in net assets and financial highlights
for the year ended October 31, 2017, in conformity with U.S. generally accepted
accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our
responsibility is to express an opinion on the Fund's financial statements
based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required
to be independent with respect to the Fund in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Fund is not required to have,
nor were we engaged to perform, an audit of the Fund's internal control over
financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting, but not for the
purpose of expressing an opinion on the effectiveness of the Fund's internal
control over financial reporting. Accordingly, we express no such opinion.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 61
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of October 31, 2018, by correspondence with the custodian and brokers.
Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the Fund's auditor since 2017.
Boston, Massachusetts
December 21, 2018
62 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
ADDITIONAL INFORMATION
For the year ended October 31, 2018, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth
Tax Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate
up to the maximum amount of such dividends allowable under the Act, as taxed at
a maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2018 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 35.89%.
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the "Adviser"), the
Fund's investment adviser, was an indirect, wholly owned subsidiary of
UniCredit S.p.A. ("UniCredit"). On that date, UniCredit completed the sale of
its Pioneer Investments business, which includes the Adviser, to Amundi (the
"Transaction"). As a result of the Transaction, the Adviser became an indirect,
wholly owned subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A.
Amundi is headquartered in Paris, France, and, as of September 30, 2016, had
more than $1.1 trillion in assets under management worldwide.
Deloitte & Touche LLP ("D&T"), the Fund's previous independent registered
public accounting firm, informed the Audit Committee and the Board that it
would no longer be independent with respect to the Fund upon the completion of
the Transaction as a result of certain services being provided to Amundi and
Credit Agricole, and, accordingly, that it intended to resign as the Fund's
independent registered public accounting firm upon the completion of the
Transaction. D&T's resignation was effective on July 3, 2017, when the
Transaction was completed.
During the periods as to which D&T has served as the Fund's independent
registered public accounting firm, D&T's reports on the Fund's financial
statements have not contained an adverse opinion or disclaimer of opinion and
have not been qualified or modified as to uncertainty, audit scope or
accounting principles. Further, there have been no disagreements with D&T on
any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which, if not resolved to the
satisfaction of D&T, would have caused D&T to make reference to the subject
matter of the disagreement in connection with its report on the financial
statements. In addition, there have been no reportable events of the kind
described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange
Act of 1934.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 63
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
an independent registered public accounting firm, Ernst & Young LLP ("EY").
Prior to its engagement, EY had advised the Fund's Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities and Exchange
Commission ("SEC"): (a) project management support services to UniCredit in the
Czech Republic, Germany, Italy, Serbia and Slovenia in relation to twenty-two
projects, that were determined to be inconsistent with Rule 2-01(c)(4)(vi) of
Regulation S-X (management functions); (b) two engagements for UniCredit in
Italy where fees were contingent/success based and that were determined to be
inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent fees); (c)
four engagements where legal and expert services were provided to UniCredit in
the Czech Republic and Germany, and twenty engagements where the legal advisory
services were provided to UniCredit in Austria, Czech Republic, Italy and
Poland, that were determined to be inconsistent with Rule 2-01(c)(4)(ix) and
(x) of Regulation S-X (legal and expert services); and (d) two engagements for
UniCredit in Italy involving assistance in the sale of certain assets, that
were determined to be inconsistent with Rule 2-01(c)(4)(viii) of Regulation S-X
(broker-dealer, investment adviser or investment banking services). None of the
foregoing services involved the Fund, any of the other funds in the Pioneer
Family of Funds or any other Pioneer entity sold by UniCredit in the
Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Fund under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Fund, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
64 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Approval of Investment Management Agreement
Amundi Pioneer Asset Management, Inc. ("APAM") serves as the investment adviser
to Pioneer Flexible Opportunities Fund (the "Fund") pursuant to an investment
management agreement between APAM and the Fund. In order for APAM to remain the
investment adviser of the Fund, the Trustees of the Fund must determine
annually whether to renew the investment management agreement for the Fund.
The contract review process began in January 2018 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the
process. Contract review materials were provided to the Trustees in March 2018,
July 2018 and September 2018. In addition, the Trustees reviewed and discussed
the Fund's performance at regularly scheduled meetings throughout the year, and
took into account other information related to the Fund provided to the
Trustees at regularly scheduled meetings, in connection with the review of the
Fund's investment management agreement.
In March 2018, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment management agreement, and reviewed and
discussed the qualifications of the investment management teams for the Fund,
as well as the level of investment by the Fund's portfolio managers in the
Fund. In July 2018, the Trustees, among other things, reviewed the Fund's
management fees and total expense ratios, the financial statements of APAM and
its parent companies, profitability analyses provided by APAM, and analyses
from APAM as to possible economies of scale. The Trustees also reviewed the
profitability of the institutional business of APAM and APAM's affiliate,
Amundi Pioneer Institutional Asset Management, Inc. ("APIAM" and, together with
APAM, "Amundi Pioneer"), as compared to that of APAM's fund management
business, and considered the differences between the fees and expenses of the
Fund and the fees and expenses of APAM's and APIAM's institutional accounts, as
well as the different services provided by APAM to the Fund and by APAM and
APIAM to the institutional accounts. The Trustees further considered contract
review materials, including additional materials received in response to the
Trustees' request, in September 2018.
At a meeting held on September 18, 2018, based on their evaluation of the
information provided by APAM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment management agreement for another year. In
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 65
approving the renewal of the investment management agreement, the Trustees
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
APAM also serves as the investment adviser to Flexible Opportunities Commodity
Fund Ltd. (the "Subsidiary"), a wholly-owned subsidiary of the Fund organized
under the laws of the Cayman Islands. The Trustees also approved the renewal of
the investment management agreement for the Subsidiary (the "Subsidiary
Management Agreement") at the September 18, 2018 meeting. The factors
considered by the Trustees in approving the renewal of the Subsidiary
Management Agreement were substantially the same as the factors described below
with respect to the investment management agreement for the Fund.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by APAM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed APAM's investment approach
for the Fund and its research process. The Trustees considered the resources of
APAM and the personnel of APAM who provide investment management services to
the Fund. They also reviewed the amount of non-Fund assets managed by the
portfolio managers of the Fund. They considered the non-investment resources
and personnel of APAM that are involved in APAM's services to the Fund,
including APAM's compliance, risk management, and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by APAM's senior management to the Pioneer Fund complex.
The Trustees considered that APAM supervises and monitors the performance of
the Fund's service providers and provides the Fund with personnel (including
Fund officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
APAM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to APAM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by APAM to the Fund were
satisfactory and consistent with the terms of the investment management
agreement.
66 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and
discuss throughout the year data prepared by APAM and information comparing the
Fund's performance with the performance of its peer group of funds, as
classified by Morningstar, Inc. (Morningstar), and the performance of the
Fund's benchmark index. They also discuss the Fund's performance with APAM on a
regular basis. The Trustees' regular reviews and discussions were factored into
the Trustees' deliberations concerning the renewal of the investment management
agreement.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund
in comparison to the management fees of its peer group of funds as classified
by Morningstar and also to the expense ratios of a peer group of funds selected
on the basis of criteria determined by the Independent Trustees for this
purpose using data provided by Strategic Insight Mutual Fund Research and
Consulting, LLC (Strategic Insight), an independent third party. The peer group
comparisons referred to below are organized in quintiles. Each quintile
represents one-fifth of the peer group. In all peer group comparisons referred
to below, first quintile is most favorable to the Fund's shareowners. The
Trustees noted that they separately review and consider the impact of the
Fund's transfer agency and Fund- and APAM-paid expenses for sub-transfer agency
and intermediary arrangements, and that the results of the most recent such
review were considered in the consideration of the Fund's expense ratio.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the second quintile relative to the management fees paid by
other funds in its Morningstar category for the comparable period. The Trustees
noted that although assets invested by the Fund in the Subsidiary are excluded
from the calculation of the Fund's management fee, the Fund indirectly pays a
management fee with respect to assets invested in the Subsidiary because the
Subsidiary pays a management fee pursuant to the Subsidiary Management
Agreement. The Trustees noted that the Subsidiary pays APAM a management fee at
the same rate that the Fund pays APAM. The Trustees considered that the expense
ratio of the Fund's Class A shares for the most recent fiscal year was in the
second quintile relative to its Strategic Insight peer group for the comparable
period. The Trustees considered that the expense ratio of the Fund's Class Y
shares for the most recent fiscal year was in the second quintile relative to
its Strategic Insight peer group for the comparable period. The Trustees noted
that APAM had agreed to waive fees and/or reimburse expenses in order to limit
the ordinary operating expenses of the Fund.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 67
The Trustees reviewed management fees charged by APAM and APIAM to
institutional and other clients, including publicly offered European funds
sponsored by APAM's affiliates, unaffiliated U.S. registered investment
companies (in a sub-advisory capacity), and unaffiliated foreign and domestic
separate accounts. The Trustees also considered APAM's costs in providing
services to the Fund and APAM's and APIAM's costs in providing services to the
other clients and considered the differences in management fees and profit
margins for fund and non-fund services. In evaluating the fees associated with
APAM's and APIAM's client accounts, the Trustees took into account the
respective demands, resources and complexity associated with the Fund and other
client accounts. The Trustees noted that, in some instances, the fee rates for
those clients were lower than the management fee for the Fund and considered
that, under the investment management agreement with the Fund, APAM performs
additional services for the Fund that it does not provide to those other
clients or services that are broader in scope, including oversight of the
Fund's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Fund is subject. The Trustees
also considered the entrepreneurial risks associated with APAM's management of
the Fund.
The Trustees concluded that the management fee payable by the Fund to APAM was
reasonable in relation to the nature and quality of the services provided by
APAM.
Profitability
The Trustees considered information provided by APAM regarding the
profitability of APAM with respect to the advisory services provided by APAM to
the Fund, including the methodology used by APAM in allocating certain of its
costs to the management of the Fund. The Trustees also considered APAM's profit
margin in connection with the overall operation of the Fund. They further
reviewed the financial results, including the profit margins, realized by APAM
and APIAM from non-fund businesses. The Trustees considered APAM's profit
margins in comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that APAM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered APAM's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Fund and Fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify, and that, among other factors that may be relevant, are the
following: fee levels, expense subsidization, investment by APAM in
68 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
research and analytical capabilities and APAM's commitment and resource
allocation to the Fund. The Trustees noted that profitability also may be an
indicator of the availability of any economies of scale, although profitability
may vary for other reasons including due to reductions in expenses. The
Trustees concluded that economies of scale, if any, were being appropriately
shared with the Fund.
Other Benefits
The Trustees considered the other benefits that APAM enjoys from its
relationship with the Fund. The Trustees considered the character and amount of
fees paid or to be paid by the Fund, other than under the investment management
agreement, for services provided by APAM and its affiliates. The Trustees
further considered the revenues and profitability of APAM's businesses other
than the Fund business. To the extent applicable, the Trustees also considered
the benefits to the Fund and to APAM and its affiliates from the use of "soft"
commission dollars generated by the Fund to pay for research and brokerage
services.
The Trustees considered that Amundi Pioneer is the principal U.S. asset
management business of Amundi, which is one of the largest asset managers
globally. Amundi's worldwide asset management business manages over $1.7
trillion in assets (including the Pioneer Funds). The Trustees considered that
APAM's relationship with Amundi creates potential opportunities for APAM, APIAM
and Amundi that derive from APAM's relationships with the Fund, including
Amundi's ability to market the services of APAM globally. The Trustees noted
that APAM has access to additional research and portfolio management
capabilities as a result of its relationship with Amundi and Amundi's enhanced
global presence that may contribute to an increase in the resources available
to APAM. The Trustees considered that APAM and the Fund receive reciprocal
intangible benefits from the relationship, including mutual brand recognition
and, for the Fund, direct and indirect access to the resources of a large
global asset manager. The Trustees concluded that any such benefits received by
APAM as a result of its relationship with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including the Independent Trustees, concluded that the investment
management agreement for the Fund, including the fees payable thereunder, was
fair and reasonable and voted to approve the proposed renewal of the investment
management agreement. The Trustees, including the Independent Trustees, also
concluded that the Subsidiary Management Agreement, including the fees payable
thereunder, was fair and reasonable and voted to approve the proposed renewal
of the Subsidiary Management Agreement.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 69
Trustees, Officers and Service Providers
Investment Adviser
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
DST Asset Manager Solutions, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.amundipioneer.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their
principal occupations and other directorships they have held during at least
the past five years. Trustees who are interested persons of the Fund within the
meaning of the 1940 Act are referred to as Interested Trustees. Trustees who
are not interested persons of the Fund are referred to as Independent Trustees.
Each of the Trustees serves as a Trustee of each of the 43 U.S. registered
investment portfolios for which Amundi Pioneer serves as investment adviser
(the "Pioneer Funds"). The address for all Trustees and all officers of the
Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
70 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (68) Trustee since 2010. Private investor (2004 - 2008 and 2013 - Director, Broadridge Financial
Chairman of the Serves until a present); Chairman (2008 - 2013) and Chief Solutions, Inc. (investor
Board and Trustee successor trustee is Executive Officer (2008 - 2012), Quadriserv, communications and securities
elected or earlier Inc. (technology products for securities lending processing provider for
retirement or industry); and Senior Executive Vice President, financial services industry)
removal. The Bank of New York (financial and securities (2009 - present); Director,
services) (1986 - 2004) Quadriserv, Inc. (2005 - 2013);
and Commissioner, New Jersey
State Civil Service Commission
(2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (74) Trustee since 2010. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - Trust(publicly-traded mortgage
successor trustee is 2004 and 2008 - present); Interim Chief REIT) (2004 - 2009, 2012 -
elected or earlier Executive Officer, Oxford Analytica, Inc. present); Director of The Swiss
retirement or (privately held research and consulting company) Helvetia Fund, Inc. (closed-
removal. (2010); Executive Vice President and Chief end fund) (2010 - 2017);
Financial Officer, I-trax, Inc. (publicly traded Director of Oxford Analytica,
health care services company) (2004 - 2007); and Inc. (2008 - 2015); and
Executive Vice President and Chief Financial Director of Enterprise
Officer, Pedestal Inc. (internet-based mortgage Community Investment, Inc.
trading company) (2000 - 2002); Private (privately-held affordable
Consultant (1995 - 1997); Managing Director, housing finance company) (1985
Lehman Brothers (1992 - 1995); and Executive, - 2010)
The World Bank (1979 - 1992)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (74) Trustee since 2010. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and
successor trustee is Mellon Institutional Funds
elected or earlier Master Portfolio (oversaw 17
retirement or portfolios in fund complex)
removal. (1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 71
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (71) Trustee since 2010. Founding Director, Vice-President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee is firm) (1982 - present); Desautels Faculty of
elected or earlier Management, McGill University (1999 - 2017); and
retirement or Manager of Research Operations and
removal. Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (62) Trustee since 2017. Chief Investment Officer, 1199 SEIU Funds None
Trustee (Advisory Trustee (healthcare workers union pension funds) (2001 -
from 2014 - 2017) present); Vice President - International
Serves until a Investments Group, American International Group,
successor trustee is Inc. (insurance company) (1993 - 2001); Vice
elected or earlier President - Corporate Finance and Treasury
retirement or Group, Citibank, N.A. (1980 - 1986 and 1990 -
removal. 1993); Vice President - Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer of debt
securities) (1988 - 1990); Mortgage Strategies
Group, Shearson Lehman Hutton, Inc. (investment
bank) (1987 - 1988); and Mortgage Strategies
Group, Drexel Burnham Lambert, Ltd. (investment
bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (70) Trustee since 2010. President and Chief Executive Officer, Newbury Director of New America High
Trustee Serves until a Piret Company (investment banking firm) (1981 - Income Fund, Inc. (closed-end
successor trustee is present) investment company) (2004 -
elected or earlier present); and Member, Board of
retirement or Governors, Investment Company
removal. Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (71) Trustee since 2014. Consultant (investment company services) (2012 - None
Trustee Serves until a present); Executive Vice President, BNY Mellon
successor trustee is (financial and investment company services)
elected or earlier (1969 - 2012); Director, BNY International
retirement or Financing Corp. (financial services) (2002 -
removal. 2012); and Director, Mellon Overseas Investment
Corp. (financial services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
72 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (56)* Trustee since 2017. Director, CEO and President of Amundi Pioneer None
Trustee, President and Serves until a Asset Management USA, Inc. (since September
Chief Executive Officer successor trustee is 2014); Director, CEO and President of Amundi
elected or earlier Pioneer Asset Management, Inc. (since September
retirement or 2014); Director, CEO and President of Amundi
removal Pioneer Distributor, Inc. (since September
2014); Director, CEO and President of Amundi
Pioneer Institutional Asset Management, Inc.
(since September 2014); Chair, Amundi Pioneer
Asset Management USA, Inc., Amundi Pioneer
Distributor, Inc. and Amundi Pioneer
Institutional Asset Management, Inc. (September
2014 - 2018); Managing Director, Morgan Stanley
Investment Management (2010 - 2013); and
Director of Institutional Business, CEO of
International, Eaton Vance Management (2005 -
2010)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (60)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S. (since
successor trustee is 2010) of Amundi Pioneer Asset Management USA,
elected or earlier Inc.; Executive Vice President and Chief
retirement or Investment Officer, U.S. of Amundi Pioneer
removal (since 2008); Executive Vice President of Amundi
Pioneer Institutional Asset Management, Inc.
(since 2009); and Portfolio Manager of Amundi
Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers
or directors of the Fund's investment adviser and certain of its
affiliates.
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 73
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (53) Since 2010. Serves Vice President and Associate General Counsel of None
Secretary and at the discretion of Amundi Pioneer since January 2008; Secretary and
Chief Legal Officer the Board Chief Legal Officer of all of the Pioneer Funds
since June 2010; Assistant Secretary of all of
the Pioneer Funds from September 2003 to May
2010; and Vice President and Senior Counsel of
Amundi Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (57) Since 2010. Serves Fund Governance Director of Amundi Pioneer since None
Assistant Secretary at the discretion of December 2006 and Assistant Secretary of all the
the Board Pioneer Funds since June 2010; Manager - Fund
Governance of Amundi Pioneer from December 2003
to November 2006; and Senior Paralegal of Amundi
Pioneer from January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (55) Since 2010. Serves Senior Counsel of Amundi Pioneer since May 2013 None
Assistant Secretary at the discretion of and Assistant Secretary of all the Pioneer Funds
the Board since June 2010; and Counsel of Amundi Pioneer
from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (58) Since 2010. Serves Vice President - Fund Treasury of Amundi None
Treasurer and at the discretion of Pioneer; Treasurer of all of the Pioneer Funds
Chief Financial and the Board since March 2008; Deputy Treasurer of Amundi
Accounting Officer Pioneer from March 2004 to February 2008; and
Assistant Treasurer of all of the Pioneer Funds
from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (53) Since 2010. Serves Director - Fund Treasury of Amundi Pioneer; and None
Assistant Treasurer at the discretion of Assistant Treasurer of all of the Pioneer Funds
the Board
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (60) Since 2010. Serves Senior Manager - Fund Treasury of Amundi None
Assistant Treasurer at the discretion of Pioneer; and Assistant Treasurer of all of the
the Board Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
74 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (38) Since 2010. Serves Senior Manager - Fund Treasury of Amundi Pioneer None
Assistant Treasurer at the discretion of since November 2008; Assistant Treasurer of all
the Board of the Pioneer Funds since January 2009; and
Client Service Manager - Institutional Investor
Services at State Street Bank from March 2003 to
March 2007
------------------------------------------------------------------------------------------------------------------------------------
John Malone (47) Since 2018. Serves Managing Director, Chief Compliance Officer of None
Chief Compliance Officer at the discretion of Amundi Pioneer Asset Management; Amundi Pioneer
the Board Institutional Asset Management, Inc.; and the
Pioneer Funds since September 2018; and Chief
Compliance Officer of Amundi Pioneer
Distributor, Inc. since January 2014.
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (47) Since 2010. Serves Vice President - Investor Services Group of None
Anti-Money Laundering at the discretion of Amundi Pioneer and Anti-Money Laundering Officer
Officer the Board of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18 75
This page is for your notes.
76 Pioneer Flexible Opportunities Fund | Annual Report | 10/31/18
How to Contact Amundi Pioneer
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Account Information, including existing accounts,
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and service forms 1-800-225-6292
FactFoneSM for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address us.askamundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
[C] 2018 Amundi Pioneer Asset Management 24440-08-1218
Pioneer Floating
Rate Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2018
--------------------------------------------------------------------------------
Ticker Symbols:
Class A FLARX
Class C FLRCX
Class Y FLYRX
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 54
Notes to Financial Statements 61
Report of Independent Registered Public Accounting Firm 78
Additional Information 80
Approval of Investment Management Agreement 82
Trustees, Officers and Service Providers 87
Pioneer Floating Rate Fund | Annual Report | 10/31/18 1
President's Letter
Despite economic news that has remained generally positive throughout 2018,
market volatility has increased significantly this year compared with 2017.
October was a particularly poor month for both U.S. and global equity markets,
as every major stock market index finished the month in negative territory.
Results have been more mixed on the fixed-income side, with rising interest
rates pushing down most year-to-date returns.
On the economic front, U.S. gross domestic product (GDP) growth exceeded 4% in
the second quarter of 2018 and topped 3% once again in the third quarter. The
low unemployment rate has continued, with initial jobless claims recently
hitting a multi-decade low and consumer and small-business confidence also
achieving levels not seen in many years.
Despite the good economic news, and even though wages have been rising,
inflation expectations have not risen significantly. For its part, the U.S.
Federal Reserve System (the Fed) has continued with its tightening of monetary
policy by raising interest rates three times in 2018, while moving forward with
the tapering of its balance sheet, a process which began in October 2017.
The greater market volatility this year as compared to last year has been driven
by several factors. The aforementioned rising interest rates have been one
reason, while the uncertainty surrounding U.S. trade policy has, at times, also
led to unsettled markets. Of course, in today's global economy, risk factors
extend well beyond U.S. borders, and in recent months investors have grappled
with various issues on the international front, including questions surrounding
the United Kingdom's Brexit negotiations, concerns about the budgetary policies
of the populist Italian government, and the potential impact of Turkey's
economic challenges on European banks. Moreover, while trade tensions between
the U.S. and Europe have moderated, questions about the future of the U.S./China
trade relationship remain unresolved, and any major fracture in that
relationship could have a negative impact on China's economy and, by extension,
on its Asian trade partners.
With regard to our market outlook, over the medium term, we believe the
fundamental investment case for U.S. equities remains in place, with support
from the fairly positive economic backdrop and with an additional lift
potentially coming from the investment side as U.S. businesses consider
increasing capital expenditures. We do believe market volatility will persist
and, therefore, careful selection of investment themes, sector allocations, and
individual stocks will be increasingly relevant to overall performance, as the
2 Pioneer Floating Rate Fund | Annual Report | 10/31/18
maturity of the economic and market cycles could eventually become
headwinds. We believe a focus on owning shares of quality companies trading
at reasonable prices is key to navigating the current equity-market phase.
In fixed income, we have taken a more cautious approach across our core
portfolios with regard to credit-sensitive debt such as corporate bonds,
favoring quality and liquidity. As interest rates have risen, we find that
short- and intermediate-term U.S. Treasuries have become more attractive, and
that agency mortgage-backed securities (MBS) and high-quality, non-agency MBS
now also offer lower downside risk. In general, we think structured sectors
(such as asset-backed securities and MBS) are more attractive than corporate
sectors.
We believe this year's market fluctuations as well as increased risk factors
within the global economy have served to remind investors of the importance of
active management. Since 1928, active management has been the foundation of
Amundi Pioneer's investment approach. We believe active management is especially
important during periods of volatility, and that our shareowners can benefit
from the experience and tenure of our investment teams, who work collaboratively
to make active and informed decisions across our funds.
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
October 31, 2018
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 3
Portfolio Management Discussion | 10/31/18
In the following interview, Jonathan Sharkey discusses the factors that
influenced the bank-loan market and the performance of Pioneer Floating Rate
Fund during the 12-month period ended October 31, 2018. Mr. Sharkey, a senior
vice president and a portfolio manager at Amundi Pioneer Asset Management, Inc.,
is responsible for the day-to-day management of the Fund.
Q How did the Fund perform during the 12-month period ended October 31, 2018?
A Pioneer Floating Rate Fund's Class A shares returned 2.96% at net asset
value during the 12-month period ended October 31, 2018, while the Fund's
benchmark, the Standard & Poor's/Loan Syndications & Trading Association
Leveraged Performing Loan Index (the S&P/LSTA Index), returned 4.78%.
During the same period, the average return of the 239 mutual funds in
Morningstar's Bank Loan Funds category was 3.51%.
Q How would you describe the environment for investing in bank loans during
the 12-month period ended October 31, 2018?
A Entering the 12-month period, credit-sensitive areas of the bond market -
that is, securities more susceptible to default risk rather than
interest-rate risk - including bank loans, continued to receive support
from positive economic data. Credit-market sentiment received an additional
boost as 2017 drew to a close with the passage of a U.S. tax package that
included a lowering of the corporate tax rate, a one-time opportunity for
companies to repatriate cash held overseas on favorable terms, and a window
during which companies can accelerate the expensing of capital investments.
While U.S. gross domestic product (GDP) growth for the first quarter of
2018 was tabulated at a relatively modest 2.2%, many analysts attributed
that to seasonal factors. The view was confirmed as GDP growth for the
second and third quarters came in at 4.2% and 3.5%, respectively.
Second-quarter corporate earnings results saw already robust profits
surprise to the upside for most companies, while unemployment dipped below
4% as the 12-month period drew to a close.
In addition to a strong fundamental backdrop for the credit markets, the
attractiveness of loans as an asset class benefited from a
rising-interest-rate environment over the 12 months. Four times during the
period, the Federal
4 Pioneer Floating Rate Fund | Annual Report | 10/31/18
Reserve (the Fed) increased the target range for its overnight lending rate
by 0.25%, driving the federal funds rate up to 2.25% as of period-end. The
Fed's moves, in turn, put upward pressure on the LIBOR reference rates used
to set the baselines for the yields on most bank loans (LIBOR refers to
London Interbank Offered Rate). The impact of the Fed's rate hikes on loan
yields was somewhat muted, however, as many borrowers have recently elected
to tie payments to one-month LIBOR in lieu of the traditional three-month
LIBOR. Increases in the one-month LIBOR rate have been temporarily
suppressed, at least somewhat, in recent months by reduced demand for
shorter-term investments in light of the prospect of U.S. companies
repatriating cash post-tax reform. The upward movement in loan yields was
also constrained by spread-tightening and a favorable refinancing
environment, as investor sentiment towards bank loans has been supported by
a low default rate. (Loan spreads are the interest rates over and above the
LIBOR rate charged to borrowers by banks.)
Supply-and-demand factors were generally favorable for bank loans over the
12 months. For much of the period, new issuance was below levels seen one
year ago. Loan performance also benefited from strong institutional demand
for yield, as reflected in robust formation of collateralized loan
obligations (CMOs). In addition, retail loan mutual fund flows moved from
negative in late 2017 to consistently positive as 2018 progressed, which
was another positive factor for bank loans.
Q What factors had the biggest effects on the Fund's benchmark-relative
performance during the 12-month period ended October 31, 2018?
A The Fund's absolute performance during the period was positive, though it
did lag the return of the benchmark S&P/LSTA Index. The Fund's
benchmark-relative underperformance was due in part to our maintaining a
somewhat elevated cash position in the portfolio early in the period, which
slightly constrained performance in a rising market. Given the strong
refinancing environment, we elected to take a cautious stance toward
investing new money into secondary market loans trading at a premium. In
addition, much of the new-issue loan calendar featured loans that were
either lower-quality or more highly-leveraged than the loans we preferred
to hold in the portfolio. More broadly, we have sought to maintain a
higher-quality profile in the Fund's portfolio than that of the benchmark,
which also weighed on relative returns during a period in which riskier
credits rated in the CCC or lower-B range generally outperformed
higher-rated loans.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 5
The Fund's allocation across industries was essentially a neutral factor in
its benchmark-relative performance during the period, while security
selection results were a modest detractor from relative returns. During the
12-month period, none of the issues held by the Fund were subject to
default.
In terms of individual loan names that contributed to or detracted from the
Fund's benchmark-relative returns, the portfolio's exposures to luxury
department store chain Neiman Marcus and business supply chain Staples
aided relative performance, as the deterioration in conditions for
brick-and-mortar retailers eased over the period. In addition, exposure to
the loans of grocery chain Albertsons proved beneficial for the Fund's
performance, as investor sentiment improved after a proposed merger between
Albertsons and drugstore chain Rite Aid was cancelled. A meaningful
portfolio overweight in loans to CenturyLink also helped benchmark-relative
returns, as the telecommunications company posted positive operating
results.
On the downside, the loan valuation for Catalina Marketing, a provider of
targeted marketing services to grocery stores and other retailers, declined
during the period as the company experienced client losses and weaker
operating results. The Fund's exposure to Catalina's loans detracted from
benchmark-relative returns. Another detractor from benchmark-relative
performance was Revlon, as the loan prices declined on poor results and
questions about the level of protection creditors would be afforded should
the beauty company be taken private. Another Fund holding, point-of-sale
technology solutions provider and ATM (automated teller) manufacturer
Deibold Nixdorf, saw its loan price decline during the period on a
softening in demand. Finally, the Fund's out-of-benchmark exposure to the
high-yield bonds of Community Health Systems weighed on benchmark-relative
returns, as results for the acute-care hospital operator continued to
slide.
One other positive contributor to the Fund's benchmark-relative performance
during the period was an out-of-benchmark position in "catastrophe" bonds,
which are insurance-linked securities (ILS) issued by insurers to mitigate
the effects of claims payouts in the wake of a natural disaster. The Fund's
ILS exposure more than offset the negative effects on
6 Pioneer Floating Rate Fund | Annual Report | 10/31/18
performance of the portfolio's out-of-benchmark position in high-yield
corporates, as high yield lagged the returns of bank loans over the
12-month period.
Q Did the Fund have any investments in derivative securities during the
12-month period ended October 31, 2018? If so, did the derivatives have any
material effect on results?
A Yes. We invested the Fund in high-yield bond and investment-grade bond
credit-default swaps during the period, principally to maintain liquidity
in the portfolio. The derivatives had no material impact on the Fund's
performance.
Q Did the Fund's distributions to shareholders change during the 12-month
period ended October 31, 2018?
A The Fund's distributions* increased during the period, in part due to the
Fed's interest-rate hikes, which resulted in higher LIBOR reference rates
for bank loans. In addition, we took advantage of improved loan valuations
late in the period and reduced the proportion of cash held in the
portfolio, thus providing more income for shareholder distributions.
Q What is your investment outlook?
A The default rate on loans for the 12-month period ended October 31, 2018,
stood at 1.92% by loan volume, which was below the historical average of
slightly more than 3%. The default rate by number of issuers was 1.79%,
also below the long-term average. We view loan fundamentals as positive and
expect default rates to remain manageable.
We continue to maintain an up-in-quality bias in the portfolio as compared
with the S&P/LSTA Index. The loan market has recently seen an uptick in the
amount of leverage utilized in buyout activity, and so we have refrained
from having the Fund participate in a number of the more-levered deals. We
are emphasizing owning the loans of borrowers with strong cash flows, which
could help ensure that those borrowers can pay their obligations in the
event interest rates rise meaningfully from here, or if conditions
deteriorate. We have focused our recent loan purchases within the
broadcast, oil & gas, and financial intermediary loan-market segments.
* Distributions are not guaranteed.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 7
We are maintaining only modest out-of-benchmark exposure in the portfolio
to high-yield corporates, as we view the interest-rate environment as more
favorable for bank loans. We are also maintaining a modest Fund position in
ILS, based on the diversification** effect they can provide.
We believe bank loans have demonstrated their investment value in the
current rising-rate environment, as they substantially outperformed both
high-yield and investment-grade corporate bonds over the 12-month period.
With the current U.S. economic recovery in its 10th year, we regard a
portfolio emphasis on the higher-quality tier of the loan market as
appropriate, even if the positioning has acted as a constraint on the
Fund's recent benchmark-relative performance.
** Diversification does not assure a profit nor protect against loss.
8 Pioneer Floating Rate Fund | Annual Report | 10/31/18
Please refer to the Schedule of Investments on pages 17-53 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Debt securities rated below investment grade are commonly referred to as "junk
bonds" and are considered speculative. Below-investment-grade debt 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 may invest in high-yield securities of
any rating, including securities that are in default at the time of purchase.
Securities with floating interest rates generally are less sensitive to interest
rate changes but may decline in value if their interest rates do not rise as
much, or as quickly, as prevailing interest rates. Unlike fixed-rate securities,
floating-rate securities generally will not increase in value if interest rates
decline. Changes in interest rates also will affect the amount of interest
income the Fund earns on its floating-rate investments.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Amundi Pioneer Asset Management, Inc., for
a prospectus or summary prospectus containing this information. Read it
carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 9
Portfolio Summary | 10/31/18
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Senior Secured Floating Rate Loan Interests 85.1%
U.S. Government and Agency Obligations 8.6%
Corporate Bonds 3.1%
Insurance-Linked Securities 1.6%
Investment Companies 0.9%
Collateralized Mortgage Obligations 0.4%
Asset Backed Securities 0.3%
Preferred Stock 0.0%+
Common Stock 0.0%+
+ Amount rounds to less than 0.1%.
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investments)*
1. United States Treasury Bills, 11/1/18 3.41%
-------------------------------------------------------------------------------------------------
2. United States Treasury Bills, 11/29/18 2.81
-------------------------------------------------------------------------------------------------
3. United States Treasury Bills, 11/8/18 1.44
-------------------------------------------------------------------------------------------------
4. Charter Communications Operating LLC (aka CCO Safari LLC), Term B Loan,
4.31% (LIBOR + 200 bps), 3/31/23 0.74
-------------------------------------------------------------------------------------------------
5. Asurion LLC (fka Asurion Corp.), New Term Loan B7, 5.302%
(LIBOR + 300 bps), 11/3/24 0.59
-------------------------------------------------------------------------------------------------
6. CenturyLink, Inc., Initial Term B Loan, 5.052% (LIBOR + 275 bps), 1/31/25 0.58
-------------------------------------------------------------------------------------------------
7. Bausch Health Cos., Inc. (fka Valeant Pharmaceuticals International,
Inc.), Initial Term Loan, 5.274% (LIBOR + 300 bps), 6/2/25 0.55
-------------------------------------------------------------------------------------------------
8. Scientific Games International, Inc., Initial Term B-5 Loan, 5.046%
(LIBOR + 275 bps), 8/14/24 0.51
-------------------------------------------------------------------------------------------------
9. Sprint Communications, Inc., Initial Term Loan, 4.813% (LIBOR + 250 bps), 2/2/24 0.49
-------------------------------------------------------------------------------------------------
10. United States Treasury Bills, 1/24/19 0.49
-------------------------------------------------------------------------------------------------
* Excludes temporary cash investments and all derivative contracts except for
options purchased. The Fund is actively managed, and current holdings may
be different. The holdings listed should not be considered recommendations
to buy or sell any securities listed.
10 Pioneer Floating Rate Fund | Annual Report | 10/31/18
Prices and Distributions | 10/31/18
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/18 10/31/17
--------------------------------------------------------------------------------
A $6.73 $6.80
--------------------------------------------------------------------------------
C $6.74 $6.80
--------------------------------------------------------------------------------
Y $6.75 $6.82
--------------------------------------------------------------------------------
Distributions per Share: 11/1/17-10/31/18
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2674 $ -- $ --
--------------------------------------------------------------------------------
C $0.2171 $ -- $ --
--------------------------------------------------------------------------------
Y $0.2888 $ -- $ --
--------------------------------------------------------------------------------
The S&P/LSTA Leveraged Performing Loan Index provides broad and comprehensive
total return metrics of the U.S. universe of syndicated term loans. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Fund returns, do not reflect any fees, expenses or sales charges. It is not
possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 12-14.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 11
Performance Update | 10/31/18 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Floating Rate Fund at public
offering price during the periods shown, compared to that of the S&P/LSTA
Leveraged Performing Loan Index.
Cumulative Total Returns
(As of October 31, 2018)
--------------------------------------------------------------------------------
Net Public S&P/LSTA
Asset Offering Leveraged
Value Price Performing
Period (NAV) (POP) Loan Index
--------------------------------------------------------------------------------
10 years 6.08% 5.59% 7.91%
5 years 2.97 2.02 4.30
1 year 2.96 -1.67 4.78
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.03%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Floating S&P/LSTA Leveraged
Rate Fund Performing Loan Index
10/08 $ 9,550 $ 10,000
10/09 $ 11,794 $ 13,162
10/10 $ 12,907 $ 14,664
10/11 $ 13,292 $ 15,136
10/12 $ 14,279 $ 16,446
10/13 $ 14,885 $ 17,345
10/14 $ 15,208 $ 17,939
10/15 $ 15,441 $ 18,213
10/16 $ 16,134 $ 19,417
10/17 $ 16,733 $ 20,436
10/18 $ 17,228 $ 21,413
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. POP
returns reflect deduction of maximum 4.50% sales charge. NAV returns would have
been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer Floating Rate Fund | Annual Report | 10/31/18
Performance Update | 10/31/18 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Floating Rate Fund during the
periods shown, compared to that of the S&P/LSTA Leveraged Performing Loan Index.
Cumulative Total Returns
(As of October 31, 2018)
--------------------------------------------------------------------------------
S&P/LSTA
Leveraged
If If Performing
Period Held Redeemed Loan Index
--------------------------------------------------------------------------------
10 years 5.30% 5.30% 7.91%
5 years 2.22 2.22 4.30
1 year 2.35 2.35 4.78
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.78%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Floating S&P/LSTA Leveraged
Rate Fund Performing Loan Index
10/08 $ 10,000 $ 10,000
10/09 $ 12,263 $ 13,162
10/10 $ 13,302 $ 14,664
10/11 $ 13,612 $ 15,136
10/12 $ 14,496 $ 16,446
10/13 $ 15,020 $ 17,345
10/14 $ 15,235 $ 17,939
10/15 $ 15,359 $ 18,213
10/16 $ 15,909 $ 19,417
10/17 $ 16,375 $ 20,436
10/18 $ 16,759 $ 21,413
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. NAV returns would have been lower had sales charges
been reflected. All results are historical and assume the reinvestment of
dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 13
Performance Update | 10/31/18 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Floating Rate Fund during the
periods shown, compared to that of the S&P/LSTA Leveraged Performing Loan Index.
Cumulative Total Returns
(As of October 31, 2018)
--------------------------------------------------------------------------------
Net S&P/LSTA
Asset Leveraged
Value Performing
Period (NAV) Loan Index
--------------------------------------------------------------------------------
10 years 6.40% 7.91%
5 years 3.31 4.30
1 year 3.27 4.78
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.80% 0.71%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Floating S&P/LSTA Leveraged
Rate Fund Performing Loan Index
10/08 $ 5,000,000 $ 5,000,000
10/09 $ 6,184,750 $ 6,581,070
10/10 $ 6,785,591 $ 7,332,074
10/11 $ 6,996,417 $ 7,567,868
10/12 $ 7,540,632 $ 8,222,918
10/13 $ 7,900,036 $ 8,672,551
10/14 $ 8,097,913 $ 8,969,654
10/15 $ 8,253,484 $ 9,106,721
10/16 $ 8,653,792 $ 9,708,458
10/17 $ 9,004,105 $ 10,217,784
10/18 $ 9,298,987 $ 10,706,254
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2019, for Class Y shares. There can be no assurance that
Amundi Pioneer will extend the expense limitation beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
14 Pioneer Floating Rate Fund | Annual Report | 10/31/18
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Floating Rate Fund
Based on actual returns from May 1, 2018, through October 31, 2018.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 5/1/18
--------------------------------------------------------------------------------
Ending Account $1,012.49 $1,010.37 $1,014.04
Value (after expenses)
on 10/31/18
--------------------------------------------------------------------------------
Expenses Paid $ 5.12 $ 8.92 $ 3.55
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.01%, 1.76%
and 0.70% multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the partial year period).
Pioneer Floating Rate Fund | Annual Report | 10/31/18 15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Floating Rate Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2018, through October 31, 2018.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 5/1/18
--------------------------------------------------------------------------------
Ending Account $1,020.11 $1,016.33 $1,021.68
Value (after expenses)
on 10/31/18
--------------------------------------------------------------------------------
Expenses Paid $ 5.14 $ 8.94 $ 3.57
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.01%, 1.76%
and 0.70% multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the partial year period).
16 Pioneer Floating Rate Fund | Annual Report | 10/31/18
Schedule of Investments | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 105.6%
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 89.9% of Net Assets*(a)
AUTOMOBILES & COMPONENTS -- 2.4%
Auto Parts & Equipment -- 1.6%
1,135,793 Allison Transmission, Inc., New Term Loan, 4.04%
(LIBOR + 175 bps), 9/23/22 $ 1,142,448
1,474,477 American Axle & Manufacturing, Inc., Tranche B Term Loan,
4.621% (LIBOR + 225 bps), 4/6/24 1,474,477
1,528,297 Cooper-Standard Automotive, Inc., Additional Term B-1
Loan, 4.302% (LIBOR + 200 bps), 11/2/23 1,532,836
1,156,940 Energy Acquisition LP, First Lien Initial Term Loan, 6.636%
(LIBOR + 425 bps), 6/26/25 1,165,617
1,477,500 Innovative Xcessories & Services LLC, Term Loan, 7.04%
(LIBOR + 475 bps), 11/29/22 1,485,811
1,579,287 Superior Industries International, Inc., Replacement Term
Loan, 6.302% (LIBOR + 400 bps), 5/22/24 1,585,210
2,538,689 TI Group Automotive Systems LLC, Initial US Term Loan,
4.802% (LIBOR + 250 bps), 6/30/22 2,529,169
2,439,937 Tower Automotive Holdings USA LLC, Initial Term Loan,
5.063% (LIBOR + 275 bps), 3/7/24 2,440,955
1,807,917 Visteon Corp., New Term Loan, 4.049% (LIBOR +
175 bps), 3/25/24 1,796,617
---------------
$ 15,153,140
------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.4%
1,526,286 FCA US LLC (fka Chrysler Group LLC), Tranche B Term
Loan, 4.3% (LIBOR + 200 bps), 12/31/18 $ 1,529,385
1,000,000 Honeywell Technologies S.a r.l., Dollar Tranche B Term
Loan, 4.89% (LIBOR + 250 bps), 9/27/25 999,375
1,213,333 Octavius Corp., (Winnebago Industries) New Tranche B
Term Loan, 5.811% (LIBOR + 350 bps), 11/8/23 1,219,400
---------------
$ 3,748,160
------------------------------------------------------------------------------------------------------
Tires & Rubber -- 0.4%
3,325,000 Goodyear Tire & Rubber Co., Second Lien Term Loan,
4.32% (LIBOR + 200 bps), 3/3/25 $ 3,308,392
---------------
Total Automobiles & Components $ 22,209,692
------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 11.4%
Aerospace & Defense -- 2.4%
1,341,591 Accudyne Industries Borrower SCA/Accudyne Industries
LLC (fka Silver II US Holdings LLC), Initial Term Loan,
5.302% (LIBOR + 300 bps), 8/18/24 $ 1,338,478
3,105,978 Alion Science and Technology Corp., First Lien Term
Loan, 6.802% (LIBOR + 450 bps), 8/19/21 3,125,390
3,217,583 Constellis Holdings LLC, First Lien Term B Loan,
7.386% (LIBOR + 500 bps), 4/21/24 3,210,881
2,534,928 DAE Aviation Holdings, Inc., Initial Term Loan,
6.05% (LIBOR + 375 bps), 7/7/22 2,548,962
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 17
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Aerospace & Defense -- (continued)
1,068,157 DynCorp International, Inc., Term Loan B2, 8.282%
(LIBOR + 600 bps), 7/7/20 $ 1,072,162
289,319 Engility Corp. (fka TASC, Inc.), Term B2 Loan, 5.052%
(LIBOR + 275 bps), 8/14/23 290,103
1,270,816 Leidos Innovations Corp., Term Loan B, 4.063%
(LIBOR + 175 bps), 8/22/25 1,277,571
2,612,707 MacDonald, Dettwiler and Associates, Ltd., Initial Term B
Loan, 5.148% (LIBOR + 275 bps), 10/4/24 2,548,204
992,500 MRO Holdings, Inc., Initial Term Loan, 7.636%
(LIBOR + 525 bps), 10/25/23 999,944
2,705,337 Transdigm, Inc., New Tranche F Term Loan, 4.802%
(LIBOR + 250 bps), 6/9/23 2,696,423
1,417,749 Transdigm, Inc., New Tranche G Term Loan, 4.802%
(LIBOR + 250 bps), 8/22/24 1,413,230
2,350,000 WP CPP Holdings, LLC, First Lien Initial Term Loan, 6.279%
(LIBOR + 375 bps), 4/30/25 2,360,648
---------------
$ 22,881,996
------------------------------------------------------------------------------------------------------
Building Products -- 3.0%
2,145,000 Armstrong World Industries, Inc., Term Loan B, 5.087%
(LIBOR + 275 bps), 3/31/23 $ 2,147,681
2,248,076 Atkore International, Inc., First Lien Initial Incremental
Term Loan, 5.14% (LIBOR + 275 bps), 12/22/23 2,252,291
3,733,120 Beacon Roofing Supply, Inc., Initial Term Loan, 4.527%
(LIBOR + 225 bps), 1/2/25 3,705,454
3,238,865 Builders FirstSource, Inc., Refinancing Term Loan, 5.386%
(LIBOR + 300 bps), 2/29/24 3,213,900
2,244,375 Hamilton Holdco LLC (Reece International Pty, Ltd.),
Term Loan, 4.4% (LIBOR + 200 bps), 7/2/25 2,246,480
1,666,625 Janus International Group LLC, Initial First Lien Term Loan,
5.302% (LIBOR + 300 bps), 2/12/25 1,643,709
2,686,500 NCI Building Systems, Inc., Initial Term Loan, 4.302%
(LIBOR + 200 bps), 2/7/25 2,685,380
2,635,746 Quikrete Holdings, Inc., First Lien Initial Term Loan,
5.052% (LIBOR + 275 bps), 11/15/23 2,629,863
1,312,584 Siteone Landscape Supply LLC, Tranche E Term Loan,
5.03% (LIBOR + 275 bps), 10/29/24 1,314,634
1,246,875 SRS Distribution, Inc., Initial Term Loan, 5.552%
(LIBOR + 325 bps), 5/23/25 1,222,890
3,595,246 Summit Materials LLC, New Term Loan, 4.302%
(LIBOR + 200 bps), 11/21/24 3,583,450
1,481,287 Unifrax I LLC, Initial Dollar Term Loan, 5.886%
(LIBOR + 350 bps), 4/4/24 1,485,917
---------------
$ 28,131,649
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.3%
1,832,377 Installed Building Products, Inc., Tranche B-2 Term Loan,
4.802% (LIBOR + 250 bps), 4/15/25 $ 1,821,689
996,250 Verra Mobility Corporation (aka American Traffic
Solutions), First Lien Initial Term Loan, 6.045%
(LIBOR + 375 bps), 2/28/25 1,002,974
---------------
$ 2,824,663
------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.8%
1,960,522 Clark Equipment Co. (aka Doosan Bobcat, Inc.), Repriced
Term Loan, 4.377% (LIBOR + 200 bps), 5/18/24 $ 1,956,846
968,750 Commercial Vehicle Group, Inc., (CVG) Initial Term Loan,
8.302% (LIBOR + 600 bps), 4/12/23 974,805
4,163,703 Navistar, Inc., Tranche B Term Loan, 5.78%
(LIBOR + 350 bps), 11/6/24 4,174,112
355,967 Terex Corp., Incremental US Term Loan, 4.294%
(LIBOR + 200 bps), 1/31/24 355,522
---------------
$ 7,461,285
------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 1.5%
1,543,936 Convergint Technologies LLC, First Lien Initial Term Loan,
5.302% (LIBOR + 300 bps), 2/3/25 $ 1,534,286
2,565,543 Dell International LLC, Refinancing Term B Loan, 4.31%
(LIBOR + 200 bps), 9/7/23 2,565,010
951,825 Diebold Nixdorf, Inc. (fka Diebold, Inc.), New Dollar
Term B Loan, 5.063% (LIBOR + 275 bps), 11/6/23 828,087
1,750,000 GoodRx, Inc., First Lien Initial Term Loan, 5.283%
(LIBOR + 300 bps), 10/10/25 1,759,844
1,406,475 Pelican Products, Inc., First Lien Term Loan, 5.774%
(LIBOR + 350 bps), 5/1/25 1,409,405
2,543,625 Southwire Co., Initial Term Loan, 4.29% (LIBOR +
200 bps), 5/19/25 2,553,481
3,010,185 WireCo WorldGroup, Inc., First Lien Initial Term Loan,
7.302% (LIBOR + 500 bps), 9/29/23 3,038,406
---------------
$ 13,688,519
------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 1.8%
1,676,603 AVSC Holding Corp., First Lien Initial Term Loan,
5.566% (LIBOR + 325 bps), 3/3/25 $ 1,676,603
2,014,253 Blount International, Inc., New Refinancing Term Loan,
6.052% (LIBOR + 375 bps), 4/12/23 2,034,396
2,319,472 DTI Holdco, Inc., Replacement B-1 Term Loan, 7.276%
(LIBOR + 475 bps), 9/29/23 2,232,492
748,125 EaglePicher Technologies LLC, First Lien Initial Term
Loan, 5.552% (LIBOR + 325 bps), 3/8/25 749,683
2,047,197 Filtration Group Corp., Initial Dollar Term Loan, 5.302%
(LIBOR + 300 bps), 3/29/25 2,058,286
1,584,794 Gates Global LLC, Initial B-2 Dollar Term Loan, 5.052%
(LIBOR + 275 bps), 4/1/24 1,589,321
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 19
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- (continued)
843,750 Hyster-Yale Group, Inc., Term Loan, 5.552%
(LIBOR + 325 bps), 5/30/23 $ 846,914
1,821,605 Milacron LLC, Term B Loan, 4.802% (LIBOR +
250 bps), 9/28/23 1,825,021
1,732,635 ProAmpac PG Borrower LLC, First Lien Initial Term Loan,
5.841% (LIBOR + 350 bps), 11/20/23 1,737,689
2,035,483 Shape Technologies Group, Inc., Initial Term Loan,
5.305% (LIBOR + 300 bps), 4/20/25 2,034,210
440,250 Thermon Industries, Inc., Term Loan B, 6.006%
(LIBOR + 375 bps), 10/30/24 443,552
---------------
$ 17,228,167
------------------------------------------------------------------------------------------------------
Industrial Machinery -- 1.0%
1,985,000 Circor International, Inc., Initial Term Loan, 5.783%
(LIBOR + 350 bps), 12/11/24 $ 1,986,241
1,400,289 Columbus McKinnon Corp., Repriced Term Loan,
4.886% (LIBOR + 250 bps), 1/31/24 1,403,789
1,895,253 Gardner Denver, Inc., Tranche B-1 Dollar Term Loan,
5.052% (LIBOR + 275 bps), 7/30/24 1,902,529
699,836 NN, Inc., Tranche B Term Loan, 6.052% (LIBOR +
375 bps), 10/19/22 701,914
1,763,877 Tank Holding Corp., Replacement Term Loan, 5.811%
(LIBOR + 350 bps), 3/16/22 1,769,665
2,049,201 Welbilt, Inc. (fka Manitowoc Foodservice, Inc.), Term B
Loan, 4.782% (LIBOR + 250 bps), 10/23/25 2,049,201
---------------
$ 9,813,339
------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.6%
1,200,000 HD Supply, Inc., Term B-5 Loan, 4.03% (LIBOR +
175 bps), 10/17/23 $ 1,201,000
1,000,000(b) Hertz Corp., Tranche Term B-1 Loan, 6/30/23 996,328
1,857,558 Nexeo Solutions LLC, Term B-1 Loan, 5.659%
(LIBOR + 325 bps), 6/9/23 1,863,749
1,000,000(b) United Rentals, Inc., Term Loan B, 10/3/25 1,005,625
182,720 WESCO Distribution, Inc., Tranche B-1 Term Loan,
5.302% (LIBOR + 300 bps), 12/12/19 182,948
---------------
$ 5,249,650
---------------
Total Capital Goods $ 107,279,268
------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 1.9%
Diversified Support Services -- 0.4%
1,017,477 Access CIG LLC, First Lien Term B Loan, 6.052%
(LIBOR + 375 bps), 2/27/25 $ 1,022,193
1,412,694 Aristocrat Leisure, Ltd., Term B-3 Loan, 4.219%
(LIBOR + 175 bps), 10/19/24 1,409,402
976,933 Patriot Container Corp., First Lien Closing Date Term
Loan, 5.787% (LIBOR + 350 bps), 3/20/25 982,734
---------------
$ 3,414,329
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 1.2%
4,001,770 Albany Molecular Research, Inc., First Lien Initial Term
Loan, 5.552% (LIBOR + 325 bps), 8/30/24 $ 4,008,272
220,995 GFL Environmental, Inc., Delayed Draw Term Loan,
7.0% (PRIME + 175 bps), 5/30/25 218,301
2,374,558 GFL Environmental, Inc., Effective Date Incremental Term
Loan, 5.136% (LIBOR + 275 bps), 5/30/25 2,345,617
1,866,037 Infiltrator Water Technologies LLC, First Lien Term B-2
Loan, 5.386% (LIBOR + 300 bps), 5/27/22 1,875,367
1,000,000(b) Tunnel Hill Partners LP, Cov-Lite Term Loan B, 10/1/25 1,005,000
2,001,461 Wrangler Buyer Corp. (aka Waste Industries USA, Inc.),
Initial Term Loan, 5.006% (LIBOR + 275 bps), 9/27/24 2,004,798
---------------
$ 11,457,355
------------------------------------------------------------------------------------------------------
Human Resource & Employment Services -- 0.3%
750,805 On Assignment, Inc., Initial Term B-1 Loan, 4.302%
(LIBOR + 200 bps), 6/3/22 $ 754,793
191,484 On Assignment, Inc., Initial Term B-2 Loan, 4.302%
(LIBOR + 200 bps), 4/2/25 192,043
2,118,115 STG-Fairway Acquisitions, Inc., First Lien Term Loan,
7.777% (LIBOR + 525 bps), 6/30/22 2,120,762
---------------
$ 3,067,598
---------------
Total Commercial & Professional Services $ 17,939,282
------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 1.8%
Diversified Support Services -- 0.9%
5,891,602 Asurion LLC (fka Asurion Corp.), New Term Loan B7,
5.302% (LIBOR + 300 bps), 11/3/24 $ 5,907,804
575,155 Asurion LLC (fka Asurion Corp.), Replacement B-6 Term
Loan, 5.302% (LIBOR + 300 bps), 11/3/23 576,593
243,965 IAP Worldwide Services, Inc., Second Lien Term Loan,
8.886% (LIBOR + 650 bps), 7/18/19 241,525
1,953,056 KAR Auction Services, Inc., Tranche B-5 Term Loan,
4.938% (LIBOR + 250 bps), 3/9/23 1,957,303
---------------
$ 8,683,225
------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.6%
2,347,032 Advanced Disposal Services, Inc. (fka ADS Waste
Holdings, Inc.), Additional Term Loan, 4.46% (LIBOR +
225 bps), 11/10/23 $ 2,349,966
1,786,278 Clean Harbors, Inc., Initial Term Loan, 4.052%
(LIBOR + 175 bps), 6/30/24 1,791,583
1,693,108 WCA Waste Systems, Inc., Initial Term Loan, 4.802%
(LIBOR + 250 bps), 8/11/23 1,688,875
---------------
$ 5,830,424
------------------------------------------------------------------------------------------------------
Office Services & Supplies -- 0.1%
496,250 Diamond (BC) BV Initial USD Term Loan, 5.526%
(LIBOR + 300 bps), 9/6/24 $ 490,667
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 21
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Security & Alarm Services -- 0.2%
2,277,764 GW Honos Security Corp. (Garda World Security Corp.),
Term B Loan, 5.821% (LIBOR + 350 bps), 5/24/24 $ 2,288,085
---------------
Total Commercial Services & Supplies $ 17,292,401
------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.3%
Apparel, Accessories & Luxury Goods -- 0.1%
992,500 Hanesbrands Inc., New Term Loan B, 4.052%
(LIBOR + 175 bps), 12/16/24 $ 994,155
------------------------------------------------------------------------------------------------------
Homebuilding -- 0.2%
2,250,000 Interior Logic Group Holdings IV LLC, Initial Term Loan,
6.391% (LIBOR + 400 bps), 5/30/25 $ 2,248,594
------------------------------------------------------------------------------------------------------
Household Appliances -- 0.3%
1,981,870 Global Appliance, Inc., Tranche B Term Loan, 6.31%
(LIBOR + 400 bps), 9/29/24 $ 1,969,483
645,124 Ring Container Technologies Group, LLC, First Lien Initial
Term Loan, 5.052% (LIBOR + 275 bps), 10/31/24 645,931
---------------
$ 2,615,414
------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 0.5%
505,452 Prestige Brands, Inc., Term B-4 Loan, 4.302%
(LIBOR + 200 bps), 1/26/24 $ 506,580
2,304,751 Reynolds Group Holdings, Inc., Incremental US Term
Loan, 5.052% (LIBOR + 275 bps), 2/5/23 2,309,612
1,995,000 SIWF Holdings, Inc., First Lien Initial Term Loan, 6.54%
(LIBOR + 425 bps), 6/15/25 2,013,703
---------------
$ 4,829,895
------------------------------------------------------------------------------------------------------
Leisure Products -- 0.2%
1,372,126 Bombardier Recreational Products, Inc., Term B Loan,
4.3% (LIBOR + 200 bps), 5/23/25 $ 1,370,696
---------------
Total Consumer Durables & Apparel $ 12,058,754
------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 8.0%
Casinos & Gaming -- 2.5%
4,561,960 Boyd Gaming Corp., Refinancing Term B Loan, 4.467%
(LIBOR + 225 bps), 9/15/23 $ 4,575,400
496,250 Churchill Downs Inc., Term B Facility Loan, 4.31%
(LIBOR + 200 bps), 12/27/24 498,111
2,962,500 CityCenter Holdings LLC, Term B Loan, 4.552%
(LIBOR + 225 bps), 4/18/24 2,960,186
2,018,360 Eldorado Resorts, Inc., Term Loan, 4.563%
(LIBOR + 225 bps), 4/17/24 2,023,406
2,230,155 Golden Nugget, Inc. (aka Landry's Inc.), Initial Term
Loan B, 5.23% (LIBOR + 275 bps), 10/4/23 2,235,563
2,500,000 Penn National Gaming, Inc., Term B-1 Facility Loan,
4.581% (LIBOR + 225 bps), 10/15/25 2,510,353
5,158,757 Scientific Games International, Inc., Initial Term B-5
Loan, 5.046% (LIBOR + 275 bps), 8/14/24 5,117,915
The accompanying notes are an integral part of these financial statements.
22 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Casinos & Gaming -- (continued)
1,995,000 Stars Group Holdings BV, USD Term Loan, 5.886%
(LIBOR + 350 bps), 7/10/25 $ 2,003,728
1,949,016 Station Casinos LLC, Term B Facility Loan, 4.81%
(LIBOR + 250 bps), 6/8/23 1,950,561
---------------
$ 23,875,223
------------------------------------------------------------------------------------------------------
Education Services -- 1.0%
3,913,857 Bright Horizons Family Solutions LLC (fka Bright Horizons
Family Solutions, Inc.), Term B Loan, 4.052%
(LIBOR + 175 bps), 11/7/23 $ 3,920,585
2,713,755 Laureate Education, Inc., Series 2024 Term Loan,
6.027% (LIBOR + 350 bps), 4/26/24 2,722,574
2,754,710 McGraw-Hill Global Education Holdings LLC, First Lien
Term B Loan, 6.302% (LIBOR + 400 bps), 5/4/22 2,642,555
---------------
$ 9,285,714
------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.8%
2,063,250 Four Seasons Holdings, Inc., 2013 First Lien Term Loan,
4.302% (LIBOR + 200 bps), 11/30/23 $ 2,065,185
953,274 Hilton Worldwide Finance LLC, Series B-2 Term Loan,
4.031% (LIBOR + 175 bps), 10/25/23 955,127
1,200,000 Marriott Ownership Resorts, Inc., Initial Term Loan,
4.552% (LIBOR + 225 bps), 8/29/25 1,206,000
2,395,843 Sabre GLBL, Inc., (fka Sabre, Inc.), 2018 Other Term B
Loan, 4.302% (LIBOR + 200 bps), 2/22/24 2,398,195
700,000 Wyndham Hotels & Resorts, Inc., Term Loan B, 4.052%
(LIBOR + 175 bps), 5/30/25 700,613
---------------
$ 7,325,120
------------------------------------------------------------------------------------------------------
Leisure Facilities -- 1.2%
1,770,563 24 Hour Fitness Worldwide, Inc., Term Loan, 5.802%
(LIBOR + 350 bps), 5/30/25 $ 1,777,202
1,568,000 Cedar Fair LP, US Term B Loan, 4.052% (LIBOR +
175 bps), 4/13/24 1,577,800
4,649,392 Fitness International LLC, Term B Loan, 5.552%
(LIBOR + 325 bps), 4/18/25 4,663,438
1,692,292 Life Time Fitness, Inc., 2017 Refinancing Term Loan,
5.063% (LIBOR + 275 bps), 6/10/22 1,695,201
1,457,976 Six Flags Theme Parks, Inc., Tranche B Term Loan,
4.26% (LIBOR + 175 bps), 6/30/22 1,463,808
---------------
$ 11,177,449
------------------------------------------------------------------------------------------------------
Restaurants -- 1.0%
3,362,816 1011778 BC Unlimited Liability Co. (New Red Finance,
Inc.) (aka Burger King/Tim Hortons), Term B-3 Loan,
4.552% (LIBOR + 225 bps), 2/16/24 $ 3,353,360
1,995,000 Arby's Restaurant Group, Inc., Term B Loan, 5.46%
(LIBOR + 325 bps), 2/5/25 1,995,712
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 23
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Restaurants -- (continued)
696,750 Dhanani Group, Inc., Term Loan, 6.052% (LIBOR +
375 bps), 7/20/25 $ 694,137
3,192,601 KFC Holdings Co. (aka Yum! Brands), 2018 Term Loan B,
4.037% (LIBOR + 175 bps), 4/3/25 3,197,090
740,625 NPC International, Inc., First Lien Initial Term Loan,
5.802% (LIBOR + 350 bps), 4/19/24 744,328
---------------
$ 9,984,627
------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 1.5%
1,566,056 Allied Universal Holdco LLC (fka USAGM Holdco LLC),
First Lien Initial Term Loan, 6.136% (LIBOR +
375 bps), 7/28/22 $ 1,561,652
1,250,000 Allied Universal Holdco LLC (fka USAGM Holdco LLC),
Incremental Term Loan, 6.641% (LIBOR + 425 bps), 7/28/22 1,244,791
2,554,941 Creative Artists Agency LLC, Refinancing Term Loan,
5.29% (LIBOR + 300 bps), 2/15/24 2,564,921
1,000,000 frontdoor, Inc., Initial Term Loan, 4.813% (LIBOR +
250 bps), 8/16/25 1,007,500
4,771,385 KUEHG Corp. (fka KC MergerSub, Inc.), Term B-3 Loan,
6.136% (LIBOR + 375 bps), 2/21/25 4,801,631
2,795,765 Prime Security Services Borrower LLC, First Lien 2016-2
Refinancing Term B-1 Loan, 5.052% (LIBOR +
275 bps), 5/2/22 2,801,008
---------------
$ 13,981,503
---------------
Total Consumer Services $ 75,629,636
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.6%
Asset Management & Custody Banks -- 0.3%
2,527,216 Baring Private Equity Asia VI Holdings, Ltd., First Lien Initial
Dollar Term Loan, 5.302% (LIBOR + 300 bps), 10/26/22 $ 2,536,693
------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.2%
1,895,250 Blackhawk Network Holdings, Inc., First Lien Term Loan,
5.386% (LIBOR + 300 bps), 6/15/25 $ 1,901,409
------------------------------------------------------------------------------------------------------
Diversified Capital Markets -- 1.1%
4,596,093 Avolon TLB Borrower 1 (US) LLC, Term B-3 Loan, 4.28%
(LIBOR + 200 bps), 1/15/25 $ 4,589,392
868,438 Clipper Acquisitions Corp. (aka TCW Group, Inc.),
Term B-1 Loan, 4.029% (LIBOR + 175 bps), 12/27/24 869,516
831,599 FinCo I LLC (aka Fortress Investment Group), 2018
Replacement Term Loan, 4.302% (LIBOR +
200 bps), 12/27/22 832,327
1,617,228 Freedom Mortgage Corp., Initial Term Loan, 7.052%
(LIBOR + 475 bps), 2/23/22 1,631,378
1,307,438 Pre-Paid Legal Services, Inc. (aka Legal/shield), First
Lien Initial Term Loan, 5.552% (LIBOR + 325 bps), 5/1/25 1,316,426
1,416,250 Trico Group LLC, First Lien Initial Term Loan, 8.813%
(LIBOR + 650 bps), 2/2/24 1,419,791
---------------
$ 10,658,830
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.5%
1,238,750 Duff & Phelps Investment Management Co., Initial Term
Loan, 5.552% (LIBOR + 325 bps), 2/13/25 $ 1,239,414
1,768,875 Guggenheim Partners Investment Management
Holdings LLC, Term B Loan, 5.052% (LIBOR +
275 bps), 7/21/23 1,782,142
1,777,050 LPL Holdings, Inc., Tranche B Term Loan, 4.53%
(LIBOR + 225 bps), 9/23/24 1,782,603
---------------
$ 4,804,159
------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.8%
673,724 Delos Finance S.a r.l., New Term Loan, 4.136%
(LIBOR + 175 bps), 10/6/23 $ 675,529
4,194,053 Fly Funding II S.a r.l., Term Loan, 4.34%
(LIBOR + 200 bps), 2/9/23 4,193,181
2,416,986 Livingston International Inc., First Lien Refinancing
Term B-3 Loan, 8.136% (LIBOR + 575 bps), 3/20/20 2,416,986
---------------
$ 7,285,696
------------------------------------------------------------------------------------------------------
Specialized Finance -- 2.5%
1,828,571 CTC AcquiCo GmbH, Facility B2, 5.565% (LIBOR +
325 bps), 3/7/25 $ 1,824,000
1,462,121 DBRS, Ltd., Initial Term Loan, 7.563% (LIBOR +
525 bps), 3/4/22 1,465,776
3,000,000(b) Encino Acquisition Partners Holdings LLC, Second Lien
Term Loan, 9/26/25 3,060,000
500,000 GBT Group Services B.V. (aka Amex GBT), Initial Term
Loan, 4.838% (LIBOR + 250 bps), 8/13/25 503,750
1,050,000 Globallogic Holdings, Inc., Term B Loan, 5.552%
(LIBOR + 325 bps), 8/1/25 1,058,531
650,000 Herbalife Nutrition Ltd., Term Loan B, 5.552%
(LIBOR + 325 bps), 8/18/25 653,250
2,145,000 LTI Holdings, Inc., First Lien Initial Term Loan,
5.802% (LIBOR + 350 bps), 9/6/25 2,146,341
3,967,537 Parfums Holding Co., Inc., First Lien Initial Term Loan,
6.529% (LIBOR + 425 bps), 6/30/24 3,989,030
1,728,125 Peraton Corp. (fka MHVC Acquisition Corp.), First Lien
Initial Term Loan, 7.64% (LIBOR + 525 bps), 4/29/24 1,721,645
1,050,000 Sigma Holdco BV (aka Flora Foods), Facility B2,
5.398% (LIBOR + 300 bps), 7/2/25 1,048,195
2,263,320 Trans Union LLC, 2017 Replacement Term B-3 Loan,
4.302% (LIBOR + 200 bps), 4/10/23 2,262,754
498,750 Trans Union LLC, 2018 Incremental Term B-4 Loan,
4.302% (LIBOR + 200 bps), 6/19/25 498,616
3,931,818 VICI Properties 1 LLC, Term B Loan, 4.28% (LIBOR +
200 bps), 12/20/24 3,927,517
---------------
$ 24,159,405
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 25
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Systems Software -- 0.2%
1,703,337 Avast Software BV, 2018 Refinancing Dollar Term
Loan, 4.886% (LIBOR + 250 bps), 9/29/23 $ 1,711,853
---------------
Total Diversified Financials $ 53,058,045
------------------------------------------------------------------------------------------------------
ENERGY -- 2.4%
Integrated Oil & Gas -- 0.5%
1,400,000(b) BCP Raptor II LLC, Term Loan B, 10/22/25 $ 1,398,250
1,736,875 Medallion Midland Acquisition LLC, Initial Term Loan,
5.552% (LIBOR + 325 bps), 10/30/24 1,724,934
1,375,000 NorthRiver Midstream Finance LP, Initial Term B Loan,
5.646% (LIBOR + 325 bps), 10/1/25 1,384,110
---------------
$ 4,507,294
------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.5%
1,000,000 Gavilan Resources LLC, Second Lien Initial Term Loan,
8.28% (LIBOR + 600 bps), 3/1/24 $ 941,250
3,950,000 Traverse Midstream Partners LLC, Advance Term Loan,
6.6% (LIBOR + 400 bps), 9/27/24 3,983,946
---------------
$ 4,925,196
------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.4%
1,142,169 Apergy Corp., Initial Term Loan, 4.813% (LIBOR +
250 bps), 5/9/25 $ 1,144,548
1,436,468 Keane Group Holdings LLC, Initial Term Loan, 6.063%
(LIBOR + 375 bps), 5/25/25 1,396,965
1,492,500 McDermott International, Inc., Term Loan, 7.302%
(LIBOR + 500 bps), 5/12/25 1,482,052
---------------
$ 4,023,565
------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.2%
750,000 California Resources Corp., Term Loan, 12.67%
(LIBOR + 1,038 bps), 12/31/21 $ 836,250
497,500 Lucid Energy Group II Borrower LLC, Initial Term Loan,
5.28% (LIBOR + 300 bps), 2/17/25 496,561
111,325 MEG Energy Corp., Initial Term Loan, 5.81% (LIBOR +
350 bps), 12/31/23 111,720
---------------
$ 1,444,531
------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.3%
2,686,500 Delek US Holdings, Inc., Initial Term Loan, 4.552%
(LIBOR + 225 bps), 3/31/25 $ 2,689,299
------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.5%
2,857,896 Energy Transfer Equity LP, Refinanced Term Loan, 4.302%
(LIBOR + 200 bps), 2/2/24 $ 2,861,292
2,118,195 Gulf Finance LLC, Tranche B Term Loan, 7.64%
(LIBOR + 525 bps), 8/25/23 1,752,806
The accompanying notes are an integral part of these financial statements.
26 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- (continued)
555,333 Summit Midstream Partners Holdings LLC, Term Loan
Credit Facility, 8.302% (LIBOR + 600 bps), 5/13/22 $ 558,804
---------------
$ 5,172,902
---------------
Total Energy $ 22,762,787
------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 1.1%
Drug Retail -- 0.1%
1,320,688 H-Food Holdings LLC (aka Hearthside Food Solutions LLC),
Initial Term Loan, 5.302% (LIBOR + 300 bps), 5/23/25 $ 1,300,465
------------------------------------------------------------------------------------------------------
Food Distributors -- 0.3%
1,776,076 CSM Bakery Solutions, Ltd., First Lien Term Loan, 6.41%
(LIBOR + 400 bps), 7/3/20 $ 1,713,913
1,600,000 United Natural Foods, Inc., Initial Term Loan, 6.552%
(LIBOR + 425 bps), 10/22/25 1,502,000
---------------
$ 3,215,913
------------------------------------------------------------------------------------------------------
Food Retail -- 0.7%
985,031 Albertson's LLC, 2017-1 Term B-5 Loan, 5.381%
(LIBOR + 300 bps), 12/21/22 $ 984,724
2,993,881 Albertson's LLC, 2017-1 Term B-6 Loan, 5.311%
(LIBOR + 300 bps), 6/22/23 2,980,316
1,250,000(b) Albertson's LLC, Term Loan B7, 10/29/25 1,241,931
967,688 Packers Holdings LLC, Initial Term Loan, 5.277%
(LIBOR + 300 bps), 12/4/24 969,199
---------------
$ 6,176,170
---------------
Total Food & Staples Retailing $ 10,692,548
------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 2.6%
Agricultural Products -- 0.2%
1,657,857 Darling Ingredients, Inc. (fka Darling International, Inc.),
Term B Loan, 4.31% (LIBOR + 200 bps), 12/18/24 $ 1,672,364
------------------------------------------------------------------------------------------------------
Distillers & Vintners -- 0.1%
739,984 Arterra Wines Canada, Inc. (fka 9941762 Canada, Inc.),
First Lien USD Term B-1 Loan, 5.088% (LIBOR +
275 bps), 12/15/23 $ 742,990
------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 2.2%
500,000 8th Avenue Food & Provisions, Inc., First Lien Term Loan,
6.006% (LIBOR + 375 bps), 10/1/25 $ 505,312
3,819,056 Chobani LLC, First Lien New Term Loan, 5.802%
(LIBOR + 350 bps), 10/10/23 3,739,092
2,253,639 CTI Foods Holding Co., LLC, First Lien Term Loan, 6.1%
(LIBOR + 350 bps), 6/29/20 1,825,448
1,682,284 Dole Food Co., Inc., Tranche B Term Loan, 5.049%
(LIBOR + 275bps/PRIME + 175 bps), 4/6/24 1,680,312
2,163,150 Give and Go Prepared Foods Corp., First Lien 2017 Term
Loan, 6.636% (LIBOR + 425 bps), 7/29/23 1,917,092
4,124,393 JBS USA Lux SA (fka JBS USA LLC), Initial Term Loan,
4.844% (LIBOR + 250 bps), 10/30/22 4,129,227
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 27
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- (continued)
2,739,248 Post Holdings, Inc., Series A, Incremental Term Loan,
4.29% (LIBOR + 200 bps), 5/24/24 $ 2,739,494
1,510,338 Shearer's Foods LLC, First Lien Term Loan, 6.552%
(LIBOR + 425 bps), 6/30/21 1,507,506
2,488,731 Utz Quality Foods LLC, First Lien Initial Term Loan,
5.802% (LIBOR + 350 bps), 11/21/24 2,501,175
---------------
$ 20,544,658
------------------------------------------------------------------------------------------------------
Soft Drinks -- 0.1%
1,200,000 Refresco Group NV, Facility B 3, 5.564% (LIBOR +
325 bps), 3/28/25 $ 1,201,470
---------------
Total Food, Beverage & Tobacco $ 24,161,482
------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 8.1%
Health Care Distributors -- 0.1%
995,000 PharMerica Corp., First Lien Initial Term Loan, 5.78%
(LIBOR + 350 bps), 12/6/24 $ 999,975
------------------------------------------------------------------------------------------------------
Health Care Equipment -- 0.2%
591,000 Cidron Healthcare, Ltd. (aka ConvaTec, Inc.), Term B
Loan, 4.636% (LIBOR + 225 bps), 10/25/23 $ 595,248
1,444,000(b) NMN Holdings III Corp., Closing Date Term Loan, 11/13/25 1,447,610
---------------
$ 2,042,858
------------------------------------------------------------------------------------------------------
Health Care Facilities -- 2.6%
3,152,966 Acadia Healthcare Co., Inc., Tranche B-4 Term Loan,
4.802% (LIBOR + 250 bps), 2/16/23 $ 3,164,790
2,798,399 ATI Holdings Acquisition, Inc., First Lien Initial Term
Loan, 5.78% (LIBOR + 350 bps), 5/10/23 2,804,228
1,840,000(b) Auris LuxCo (aka Sivantos Group), First Lien Term B
Loan, 7/24/25 1,855,526
1,564,250 CHS/Community Health Systems, Inc., Incremental 2021
Term H Loan, 5.563% (LIBOR + 325 bps), 1/27/21 1,535,572
2,773,345 Concentra, Inc., First Lien Tranche B-1 Term Loan, 5.03%
(LIBOR + 275 bps), 6/1/22 2,783,746
796,000 HCA, Inc., Tranche B-10 Term Loan, 4.302% (LIBOR +
200 bps), 3/13/25 800,699
1,750,000 Kindred Healthcare LLC, Closing Date Term Loan, 7.313%
(LIBOR + 500 bps), 7/2/25 1,753,281
4,273,329 NVA Holdings, Inc., First Lien Term B3 Loan, 5.052%
(LIBOR + 275 bps), 2/2/25 4,247,509
1,050,547 Quorum Health Corp., Term Loan, 9.052% (LIBOR +
675 bps), 4/29/22 1,063,460
2,696,344 Select Medical Corp., Tranche B Term Loan, 4.78%
(LIBOR + 275 bps), 3/6/25 2,708,477
1,365,000(b) Universal Hospital Services, Inc., Term Loan B, 10/18/25 1,375,238
634,096 Vizient, Inc., Term B-4 Loan, 5.052% (LIBOR +
275 bps), 2/13/23 637,663
---------------
$ 24,730,189
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Health Care Services -- 3.1%
1,934,729 Alliance HealthCare Services, Inc., First Lien Initial Term
Loan, 6.802% (LIBOR + 450 bps), 10/24/23 $ 1,948,030
500,000 Alliance HealthCare Services, Inc., Second Lien Initial Term
Loan, 12.302% (LIBOR + 1,000 bps), 4/24/24 501,250
2,103,064 DaVita, Inc. (fka DaVita HealthCare Partners, Inc.), Tranche B
Term Loan, 5.052% (LIBOR + 275 bps), 6/24/21 2,110,122
807,500 Diplomat Pharmacy, Inc., Initial Term B Loan, 6.81%
(LIBOR + 450 bps), 12/20/24 811,537
1,500,000 Envision Healthcare Corp., Initial Term Loan, 6.052%
(LIBOR + 375 bps), 10/10/25 1,471,979
2,355,869 ExamWorks Group, Inc. (fka Gold Merger Co., Inc.),
Term B-1 Loan, 5.552% (LIBOR + 325 bps), 7/27/23 2,367,158
1,850,549 Gentiva Health Services, Inc., First Lien Closing Date Initial
Term Loan, 6.063% (LIBOR + 375 bps), 7/2/25 1,857,443
2,498,979 GHX Ultimate Parent Corp., First Lien Initial Term Loan,
5.636% (LIBOR + 325 bps), 6/28/24 2,498,979
2,617,976 HC Group Holdings III, Inc., First Lien Refinancing Term Loan,
6.052% (LIBOR + 375 bps), 4/7/22 2,626,158
1,855,278 Jaguar Holding Co. I LLC (aka Pharmaceutical Product
Development LLC), 2018 Term Loan, 4.802% (LIBOR +
250 bps), 8/18/22 1,851,944
872,671 MPH Acquisition Holdings LLC, Initial Term Loan, 5.136%
(LIBOR + 275 bps), 6/7/23 871,921
2,535,525 National Mentor Holdings, Inc., Tranche B Term Loan,
5.386% (LIBOR + 300 bps), 1/31/21 2,535,525
1,664,691 nThrive, Inc. (fka Precyse Acquisition Corp.), Additional
Term B-2 Loan, 6.802% (LIBOR + 450 bps), 10/20/22 1,675,095
500,000 Surgery Center Holdings, Inc., Initial Term Loan, 5.57%
(LIBOR + 325 bps), 9/2/24 499,687
2,955,000 Team Health Holdings, Inc., Initial Term Loan, 5.052%
(LIBOR + 275 bps), 2/6/24 2,803,556
2,869,852 US Renal Care, Inc., First Lien Initial Term Loan, 6.636%
(LIBOR + 425 bps), 12/30/22 2,792,128
---------------
$ 29,222,512
------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.7%
1,143,916 Greatbatch, Ltd., New Term B Loan, 5.28% (LIBOR +
300 bps), 10/27/22 $ 1,149,755
1,535,563 Kinetic Concepts, Inc., Dollar Term Loan, 5.636%
(LIBOR + 325 bps), 2/2/24 1,543,081
4,030,817 Sterigenics-Nordion Holdings LLC, Incremental Term
Loan, 5.302% (LIBOR + 300 bps), 5/15/22 4,038,375
---------------
$ 6,731,211
------------------------------------------------------------------------------------------------------
Health Care Technology -- 1.2%
3,258,238 Change Healthcare Holdings, Inc. (fka Emdeon, Inc.),
Closing Date Term Loan, 5.173% (LIBOR + 275 bps), 3/1/24 $ 3,258,463
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 29
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Health Care Technology -- (continued)
1,496,250 Iqvia, Inc. (Quintiles IMS), Term B-3 Dollar Loan, 4.136%
(LIBOR + 175 bps), 6/11/25 $ 1,494,006
3,152,124 Press Ganey Holdings, Inc., 2018 First Lien Replacement
Term Loan, 5.052% (LIBOR + 275 bps), 10/23/23 3,159,348
314,783 Quintiles IMS, Inc., Term B-1 Dollar Loan, 4.386%
(LIBOR + 200 bps), 3/7/24 315,718
1,995,000 Sound Inpatient Physicians, Inc., First Lien Initial Term
Loan, 5.302% (LIBOR + 300 bps), 6/27/25 1,999,987
500,000 Sound Inpatient Physicians, Inc., Second Lien Initial Term
Loan, 9.052% (LIBOR + 675 bps), 6/26/26 505,000
---------------
$ 10,732,522
------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.2%
1,960,150 Prospect Medical Holdings, Inc., Term B-1 Loan, 7.813%
(LIBOR + 550 bps), 2/22/24 $ 1,971,176
---------------
Total Health Care Equipment & Services $ 76,430,443
------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.6%
Household Products -- 1.0%
2,499,750 Alphabet Holding Co., Inc. (aka Nature's Bounty), First Lien
Initial Term Loan, 5.802% (LIBOR + 350 bps), 9/26/24 $ 2,392,731
1,880,000(b) Energizer Holdings, Inc., Term B Loan, 6/20/25 1,890,951
483,750 Energizer Holdings, Inc., Term Loan, 4.313% (LIBOR +
200 bps), 6/30/22 484,802
1,000,000 Resideo Funding Inc., Tranche B Term Loan, 4.49%
(LIBOR + 200 bps), 10/24/25 1,005,000
1,998,637 Spectrum Brands, Inc., 2017 Refinanced USD Term Loan,
4.354% (LIBOR + 200 bps), 6/23/22 2,003,218
2,271,250 WKI Holding Co., Inc., Initial Term Loan, 6.343%
(LIBOR + 400 bps), 5/1/24 2,245,698
---------------
$ 10,022,400
------------------------------------------------------------------------------------------------------
Personal Products -- 0.6%
2,475,063 Albea Beauty Holdings SA, Facility B2, 5.195%
(LIBOR + 275 bps), 4/22/24 $ 2,470,422
1,521,188 Coty, Inc., USD Term Loan B, 4.531% (LIBOR +
225 bps), 4/7/25 1,493,140
299,262 Party City Holdings, Inc., 2018 Replacement Term Loan,
5.06% (LIBOR + 275 bps), 8/19/22 300,759
1,771,246 Revlon Consumer Products Corp., Initial Term B Loan,
5.813% (LIBOR + 350 bps), 9/7/23 1,300,537
---------------
$ 5,564,858
---------------
Total Household & Personal Products $ 15,587,258
------------------------------------------------------------------------------------------------------
INSURANCE -- 1.1%
Insurance Brokers -- 0.1%
500,000 NFP Corp., Term B Loan, 5.302% (LIBOR + 300 bps), 1/8/24 $ 499,125
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Life & Health Insurance -- 0.2%
2,055,197 Integro Parent, Inc., First Lien Initial Term Loan, 8.068%
(LIBOR + 575 bps), 10/31/22 $ 2,060,335
------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.8%
2,031,672 Alliant Holdings Intermediate LLC, Initial Term Loan,
5.28% (LIBOR + 300 bps), 5/9/25 $ 2,032,148
1,221,891 AmWINS Group, Inc., First Lien Term Loan, 5.047%
(LIBOR + 275 bps), 1/25/24 1,226,473
2,286,121 Confie Seguros Holding II Co., Term B Loan, 7.552%
(LIBOR + 525 bps), 4/19/22 2,290,408
1,881,000 USI, Inc. (fka Compass Investors Inc.), 2017 New Term
Loan, 5.386% (LIBOR + 300 bps), 5/16/24 1,872,535
---------------
$ 7,421,564
---------------
Total Insurance $ 9,981,024
------------------------------------------------------------------------------------------------------
MATERIALS -- 9.4%
Construction Materials -- 0.9%
1,500,000 84 Lumber Co., Term B-1 Loan, 7.531% (LIBOR +
525 bps), 10/25/23 $ 1,512,499
1,938,612 American Bath Group LLC, First Lien Replacement Term
Loan, 6.636% (LIBOR + 425 bps), 9/30/23 1,950,728
493,036 Associated Asphalt Partners LLC, Tranche B Term Loan,
7.552% (LIBOR + 525 bps), 4/5/24 492,625
2,475,000 HD Supply Waterworks, Ltd., Initial Term Loan, 5.317%
(LIBOR + 300 bps), 8/1/24 2,477,062
1,545,438 Penn Engineering & Manufacturing Corp., Tranche B Term
Loan, 5.045% (LIBOR + 275 bps), 6/27/24 1,550,267
---------------
$ 7,983,181
------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 2.0%
496,250 Avantor, Inc., Initial Dollar Term Loan, 6.302% (LIBOR +
400 bps), 11/21/24 $ 500,205
1,703,408 Azelis Finance SA (Azelis US Holding, Inc.), 2017
Refinancing Dollar Term Loan, 5.976% (LIBOR +
375 bps), 12/16/22 1,716,184
3,977,671 Chemours Co., Tranche B-2 US Dollar Term Loan,
4.05% (LIBOR + 175 bps), 4/3/25 3,960,269
992,500 Ineos US Finance LLC, New 2024 Dollar Term Loan,
4.302% (LIBOR + 200 bps), 4/1/24 993,120
1,012,500(b) Natgasoline LLC, Term Loan B, 10/31/25 1,016,297
1,016,772 Orion Engineered Carbons GmbH, Initial Dollar Term Loan,
4.386% (LIBOR + 200 bps), 7/25/24 1,017,412
3,088,827 Plaskolite LLC, First Lien Term Loan, 5.802% (LIBOR +
350 bps), 11/3/22 3,092,688
2,586,312 Tata Chemicals North America, Term Loan, 5.188%
(LIBOR + 275 bps), 8/7/20 2,579,846
750,145 Tronox, Ltd., First Lien Blocked Dollar Term Loan, 5.302%
(LIBOR + 300 bps), 9/23/24 749,676
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 31
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Diversified Chemicals -- (continued)
1,731,105 Tronox, Ltd., First Lien Initial Dollar Term Loan, 5.302%
(LIBOR + 300 bps), 9/23/24 $ 1,730,023
1,527,228 Univar USA, Inc., Term B-3 Loan, 4.552% (LIBOR +
225 bps), 7/1/24 1,528,341
---------------
$ 18,884,061
------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.9%
997,500 Aleris International, Inc., Initial Term Loan, 7.052%
(LIBOR + 475 bps), 2/27/23 $ 1,008,306
1,206,975 Ball Metalpack Finco LLC, First Lien Initial Term Loan,
6.802% (LIBOR + 450 bps), 7/31/25 1,220,553
3,994,938 Global Brass and Copper, Inc., Initial Term Loan, 4.813%
(LIBOR + 250 bps), 5/29/25 4,004,925
1,443,750 Oxbow Calcining LLC, First Lien Tranche B Term Loan,
5.802% (LIBOR + 350 bps), 1/4/23 1,449,164
773,115 Phoenix Services International LLC, Term Loan B, 6.031%
(LIBOR + 375 bps), 3/1/25 780,363
434,049 US Silica Co., Term Loan, 6.313% (LIBOR +
400 bps), 5/1/25 395,745
---------------
$ 8,859,056
------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.8%
1,764,203 BWay Holding Co., Initial Term Loan, 5.658% (LIBOR +
325 bps), 4/3/24 $ 1,756,485
1,895,886 Consolidated Container Co., LLC, First Lien Initial Term
Loan, 5.052% (LIBOR + 275 bps), 5/22/24 1,900,389
703,114 Crown Holdings, Inc., Dollar Term B Loan, 4.283%
(LIBOR + 200 bps), 4/3/25 705,531
1,547,225 IBC Capital I, Ltd. (aka Goodpack, Ltd.), First Lien
Tranche B-1 Term Loan, 6.087% (LIBOR + 375 bps), 9/11/23 1,547,225
1,935,375 Trident TPI Holdings, Inc., Tranche B-1 Term Loan,
5.552% (LIBOR + 325 bps), 10/17/24 1,923,279
---------------
$ 7,832,909
------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.7%
1,746,797 Berry Global, Inc. (fka Berry Plastics Corp.), Term Q Loan,
4.277% (LIBOR + 200 bps), 10/1/22 $ 1,748,161
492,500 Berry Global, Inc. (fka Berry Plastics Corp.), Term R Loan,
4.277% (LIBOR + 200 bps), 1/19/24 492,346
1,510,351 Caraustar Industries, Inc., Refinancing Term Loan, 7.886%
(LIBOR + 550 bps), 3/14/22 1,519,036
3,135,000 Plastipak Holdings, Inc., Tranche B Term Loan, 4.81%
(LIBOR + 250 bps), 10/14/24 3,132,257
---------------
$ 6,891,800
------------------------------------------------------------------------------------------------------
Paper Products -- 0.2%
1,633,752 Ranpak Corp., Tranche B-1 USD Term Loan, 5.552%
(LIBOR + 325 bps), 10/1/21 $ 1,633,752
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 2.8%
2,381,477 Allnex (Luxembourg) & Cy SCA (fka AI Chem & Cy SCA),
Tranche B-2 Term Loan, 5.567% (LIBOR +
325 bps), 9/13/23 $ 2,384,454
1,794,256 Allnex (Luxembourg) & Cy SCA (fka AI Chem & Cy SCA),
Tranche B-3 Term Loan, 5.567% (LIBOR +
325 bps), 9/13/23 1,796,499
1,802,188 Ashland LLC, Term B Loan, 4.037% (LIBOR +
175 bps), 5/17/24 1,808,757
2,395,921 Axalta Coating Systems Dutch Holding B BV (Axalta
Coating Systems US Holdings, Inc.), Term B-3 Dollar
Loan, 4.136% (LIBOR + 175 bps), 6/1/24 2,393,091
164,238 Ferro Corporation, Tranche B-1 Term Loan, 4.636%
(LIBOR + 225 bps), 2/14/24 164,444
402,280 Ferro Corporation, Tranche B-2 Term Loan, 4.636%
(LIBOR + 225 bps), 2/14/24 402,782
393,720 Ferro Corporation, Tranche B-3 Term Loan, 4.636%
(LIBOR + 225 bps), 2/14/24 394,213
338,483 H.B. Fuller Co., Commitment, 4.28% (LIBOR +
200 bps), 10/20/24 337,706
3,145,559 MacDermid, Inc. (Platform Specialty Products Corp.),
Tranche B-6 Term Loan, 5.302% (LIBOR + 300 bps), 6/7/23 3,145,559
2,560,235 Omnova Solutions, Inc., Term B-2 Loan, 5.552%
(LIBOR + 325 bps), 8/25/23 2,566,636
4,115,864 Polyone Corp., Term B-4 Loan, 4.03% (LIBOR +
175 bps), 11/11/22 4,118,436
2,076,914 PQ Corp., Third Amendment Tranche B-1 Term Loan,
5.027% (LIBOR + 250 bps), 2/8/25 2,077,780
1,175,000 Starfruit Finco BV, Initial Dollar Term Loan, 5.506%
(LIBOR + 325 bps), 10/1/25 1,174,449
2,790,240 Versum Materials, Inc. (fka Versum Materials LLC), Term
Loan, 4.386% (LIBOR + 200 bps), 9/29/23 2,798,379
313,650 W.R. Grace & Co-CONN, Term B-1 Loan, 4.136%
(LIBOR + 175 bps), 4/3/25 314,663
537,686 W.R. Grace & Co-CONN, Term B-2 Loan, 4.136%
(LIBOR + 175 bps), 4/3/25 539,422
---------------
$ 26,417,270
------------------------------------------------------------------------------------------------------
Steel -- 1.1%
2,231,651 American Builders & Contractors Supply Co., Inc.,
Term B-2 Loan, 4.302% (LIBOR + 200 bps), 10/31/23 $ 2,214,117
1,786,975 Big River Steel LLC, Closing Date Term Loan, 7.386%
(LIBOR + 500 bps), 8/23/23 1,811,546
1,977,259 TMS International Corp. (aka Tube City IMS Corp.),
Term B-2 Loan, 5.187% (LIBOR + 275 bps), 8/14/24 1,977,259
4,163,509 Zekelman Industries, Inc. (fka JMC Steel Group, Inc.),
Term Loan, 4.623% (LIBOR + 225 bps), 6/14/21 4,162,218
---------------
$ 10,165,140
---------------
Total Materials $ 88,667,169
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 33
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
MEDIA & ENTERTAINMENT -- 7.9%
Advertising -- 0.7%
2,431,074 CB Poly Investments LLC, First Lien Closing Date Term
Loan, 6.052% (LIBOR + 375 bps), 8/16/23 $ 2,443,229
995,000 Lamar Media Corp., Term B Loan, 4.063% (LIBOR +
175 bps), 3/14/25 998,316
1,865,702 Outfront Media Capital LLC (Outfront Media Capital Corp.),
Term Loan, 4.256% (LIBOR + 200 bps), 3/18/24 1,872,233
1,635,000 Red Ventures LLC, First Lien Term Loan, 6.302%
(LIBOR + 400 bps), 11/8/24 1,641,813
---------------
$ 6,955,591
------------------------------------------------------------------------------------------------------
Broadcasting -- 3.9%
1,024,278 A-L Parent LLC (aka Learfield Communications), First
Lien Initial Term Loan, 5.56% (LIBOR + 325 bps), 12/1/23 $ 1,028,119
395,640(b) A-L Parent LLC (aka Learfield Communications), Incremental
Term Loan, 12/1/23 399,349
2,419,031 CBS Radio, Inc., Additional Term B-1 Loan, 5.037%
(LIBOR + 275 bps), 11/18/24 2,410,715
348,250 CSC Holdings LLC (fka CSC Holdings, Inc. (Cablevision)),
January 2018 Incremental Term Loan, 4.78% (LIBOR +
250 bps), 1/25/26 349,382
3,767,937 CSC Holdings LLC (fka CSC Holdings, Inc. (Cablevision)),
March 2017 Refinancing Term Loan, 4.53% (LIBOR +
225 bps), 7/17/25 3,753,762
2,628,905(b) CSC Holdings, LLC (fka CSC Holdings Inc. (Cablevision)),
October 2018 Incremental Term Loan, 1/15/26 2,625,619
990,000 E.W. Scripps Co., Tranche B Term Loan, 4.302% (LIBOR +
200 bps), 10/2/24 990,206
3,081,456 Gray Television, Inc., Term B-2 Loan, 4.515% (LIBOR +
225 bps), 2/7/24 3,086,593
1,759,887 Hubbard Radio LLC, Term Loan, 5.31% (LIBOR +
300 bps), 3/28/25 1,762,087
943,625 MCC Iowa LLC, Tranche M Term Loan, 4.22% (LIBOR +
200 bps), 1/15/25 944,805
1,085,576 MediArena Acquisition BV (fka AP NMT Acquisition BV),
First Lien Dollar Term B Loan, 8.148% (LIBOR +
575 bps), 8/13/21 1,087,611
2,513,553 Nielsen Finance LLC (VNU, Inc.), Class B-4 Term Loan,
4.281% (LIBOR + 200 bps), 10/4/23 2,504,127
3,406,912 Quebecor Media, Inc., Facility B-1 Tranche, 4.564%
(LIBOR + 225 bps), 8/17/20 3,416,138
1,559,250 Raycom TV Broadcasting LLC, Tranche B-1 Term Loan,
4.552% (LIBOR + 225 bps), 8/23/24 1,562,173
4,683,647 Sinclair Television Group, Inc., Tranche B Term Loan,
4.56% (LIBOR + 225 bps), 1/3/24 4,686,574
1,992,898 Townsquare Media, Inc., Additional Term B Loan, 5.294%
(LIBOR + 300 bps), 4/1/22 1,995,389
The accompanying notes are an integral part of these financial statements.
34 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Broadcasting -- (continued)
171,023 Tribune Media Co., Term B Loan, 5.302% (LIBOR +
300 bps), 12/27/20 $ 171,610
2,131,585 Tribune Media Co., Term C Loan, 5.302% (LIBOR +
300 bps), 1/26/24 2,138,898
1,683,707 Univision Communications, Inc., 2017 Replacement
Repriced First Lien Term Loan, 5.052% (LIBOR +
275 bps), 3/15/24 1,618,113
---------------
$ 36,531,270
------------------------------------------------------------------------------------------------------
Cable & Satellite -- 1.6%
1,382,500 Cable One, Inc., Incremental Term B-1 Loan, 4.14%
(LIBOR + 175 bps), 5/1/24 $ 1,388,261
7,398,506 Charter Communications Operating LLC (aka CCO Safari
LLC), Term B Loan, 4.31% (LIBOR + 200 bps), 3/31/23 7,407,754
450,000 Unitymedia Finance LLC, Facility E Term Loan, 4.28%
(LIBOR + 200 bps), 6/1/23 449,919
1,200,000 Unitymedia Hessen GmbH & Co. KG, Facility B, 4.53%
(LIBOR + 225 bps), 9/30/25 1,199,906
1,803,253 UPC Financing Partnership , Facility AR, 4.78% (LIBOR +
250 bps), 1/15/26 1,798,464
2,600,000 Ziggo Secured Finance Partnership, Term Loan E Facility,
4.78% (LIBOR + 250 bps), 4/15/25 2,553,018
---------------
$ 14,797,322
------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 1.0%
835,125 AMC Entertainment Holdings, Inc., 2016 Incremental
Term Loan, 4.53% (LIBOR + 225 bps), 12/15/23 $ 836,482
2,066,774 AMC Entertainment, Inc., Initial Term Loan, 4.53%
(LIBOR + 225 bps), 12/15/22 2,070,133
378,188 Kasima LLC, Term Loan, 4.852% (LIBOR + 250 bps), 5/17/21 380,237
1,489,714 Live Nation Entertainment, Inc., Term B-3 Loan, 4.063%
(LIBOR + 175 bps), 10/31/23 1,493,671
1,000,000 NAI Entertainment Holdings LLC, Tranche B Term Loan,
4.81% (LIBOR + 250 bps), 5/8/25 1,000,625
1,215,288 Rovi Solutions Corp./Rovi Guides, Inc., Term B Loan,
4.81% (LIBOR + 250 bps), 7/2/21 1,214,148
1,895,000 Seminole Hard Rock Entertainment, Inc., Term Loan,
5.146% (LIBOR + 275 bps), 5/14/20 1,901,712
---------------
$ 8,897,008
------------------------------------------------------------------------------------------------------
Publishing -- 0.7%
1,711,617 DH Publishing LP, Term B-6 Loan, 4.53% (LIBOR +
225 bps), 3/24/24 $ 1,713,757
1,552,247 Quincy Newspapers, Inc., Term Loan B, 5.311% (LIBOR +
300bps/PRIME + 200 bps), 11/2/22 1,558,068
3,149,888 Trader Corp., First Lien 2017 Refinancing Term Loan,
5.295% (LIBOR + 300 bps), 9/28/23 3,149,888
---------------
$ 6,421,713
---------------
Total Media & Entertainment $ 73,602,904
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 35
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 2.7%
Biotechnology -- 0.5%
3,372,741 Alkermes, Inc., 2023 Term Loan, 4.54% (LIBOR +
225 bps), 3/27/23 $ 3,387,497
837,250 Lantheus Medical Imaging, Inc., Replacement Term Loan,
6.052% (LIBOR + 375 bps), 6/30/22 837,250
---------------
$ 4,224,747
------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.3%
1,298,820 Catalent Pharma Solutions, Inc. (fka Cardinal Health
409, Inc.), Dollar Term Loan, 4.552% (LIBOR +
225 bps), 5/20/24 $ 1,306,010
987,374 Explorer Holdings, Inc., Initial Term Loan, 6.136%
(LIBOR + 375 bps), 5/2/23 996,013
781,875 Syneos Health, Inc. (fka INC Research Holdings, Inc.),
Replacement Term B Loan, 4.302% (LIBOR +
200 bps), 8/1/24 781,666
---------------
$ 3,083,689
------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 1.9%
1,353,391 Akorn, Inc., Term Loan, 7.813% (LIBOR + 550 bps), 4/16/21 $ 1,256,116
5,447,140 Bausch Health Cos., Inc. (fka Valeant Pharmaceuticals
International, Inc.), Initial Term Loan, 5.274% (LIBOR +
300 bps), 6/2/25 5,460,382
4,280,912 Endo Luxembourg Finance Co. I S.a r.l., Initial Term Loan,
6.563% (LIBOR + 425 bps), 4/29/24 4,300,497
1,182,000 Grifols Worldwide Operations, Ltd., Tranche B Term Loan,
4.467% (LIBOR + 225 bps), 1/31/25 1,184,290
2,917,376 Horizon Pharma, Inc., Fourth Amendment Refinanced Term
Loan, 5.313% (LIBOR + 300 bps), 3/29/24 2,924,670
2,653,082 RPI Finance Trust, Initial Term Loan B-6, 4.386%
(LIBOR + 200 bps), 3/27/23 2,658,678
---------------
$ 17,784,633
---------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 25,093,069
------------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.2%
Diversified REIT -- 0.1%
747,473 ESH Hospitality, Inc., Third Repriced Term Loan, 4.302%
(LIBOR + 200 bps), 8/30/23 $ 747,998
------------------------------------------------------------------------------------------------------
Hotel & Resort REIT -- 0.3%
2,666,625 MGM Growth Properties Operating Partnership LP, Term B
Loan, 4.302% (LIBOR + 200 bps), 3/21/25 $ 2,661,625
------------------------------------------------------------------------------------------------------
Real Estate Development -- 0.0%+
450,000 Hanjin International Corp. (aka Wilshire Grand Center),
Initial Term Loan, 4.945% (LIBOR + 250 bps), 10/19/20 $ 450,000
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Retail REITs -- 0.3%
2,390,000 DTZ US Borrower LLC, Closing Date Term Loan, 5.552%
(LIBOR + 325 bps), 8/21/25 $ 2,392,765
------------------------------------------------------------------------------------------------------
Specialized REIT -- 0.5%
3,219,363 Communications Sales & Leasing, Inc. (CSL Capital LLC),
Shortfall Term Loan, 5.302% (LIBOR + 300 bps), 10/24/22 $ 3,050,346
2,089,500 Iron Mountain, Inc., Incremental Term Loan B, 4.052%
(LIBOR + 175 bps), 1/2/26 2,065,122
---------------
$ 5,115,468
---------------
Total Real Estate $ 11,367,856
------------------------------------------------------------------------------------------------------
RETAILING -- 2.6%
Apparel Retail -- 0.2%
656,682 Hudson's Bay Co., Initial Term Loan, 5.545% (LIBOR +
325 bps), 9/30/22 $ 646,011
1,134,964 Men's Wearhouse, Inc., Tranche B-2 Term Loan, 5.506%
(LIBOR + 325 bps), 4/9/25 1,141,112
---------------
$ 1,787,123
------------------------------------------------------------------------------------------------------
Automotive Retail -- 0.3%
791,362 Avis Budget Car Rental LLC, Tranche B Term Loan,
4.31% (LIBOR + 200 bps), 2/13/25 $ 789,868
2,524,494 CWGS Group LLC, Term Loan, 5.029% (LIBOR +
275 bps), 11/8/23 2,440,345
---------------
$ 3,230,213
------------------------------------------------------------------------------------------------------
Department Stores -- 0.6%
891,000 Archroma Finance S.a r.l., Facility B2, 6.67% (LIBOR +
425 bps), 8/12/24 $ 893,228
1,600,000 Dynatrace LLC, First Lien Term Loan, 5.552% (LIBOR +
325 bps), 8/22/25 1,608,750
480,892 JC Penney Corp., Inc., Term Loan, 6.567% (LIBOR +
425 bps), 6/23/23 433,203
2,612,584 Neiman Marcus Group, Ltd., LLC, Other Term Loan,
5.531% (LIBOR + 325 bps), 10/25/20 2,383,440
---------------
$ 5,318,621
------------------------------------------------------------------------------------------------------
Homefurnishing Retail -- 0.2%
2,566,201 Serta Simmons Bedding LLC, First Lien Initial Term Loan,
5.775% (LIBOR + 350 bps), 11/8/23 $ 2,333,318
------------------------------------------------------------------------------------------------------
Internet & Direct Marketing Retail -- 0.3%
990,025 NAB Holdings, LLC, 2018 Refinancing Term Loan, 5.386%
(LIBOR + 300 bps), 7/1/24 $ 980,125
548,625 Shutterfly, Inc., Incremental Term Loan, 5.06% (LIBOR +
275 bps), 8/17/24 549,882
1,240,648 Shutterfly, Inc., Initial Term B Loan, 4.78% (LIBOR +
250 bps), 8/19/24 1,244,784
---------------
$ 2,774,791
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 37
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Specialty Stores -- 1.0%
1,732,500 Bass Pro Group LLC, Initial Term Loan, 7.302% (LIBOR +
500 bps), 9/25/24 $ 1,735,206
1,672,789 Michaels Stores, Inc., 2018 New Replacement Term B
Loan, 4.794% (LIBOR + 250 bps), 1/30/23 1,664,007
4,326,238 PetSmart, Inc., Tranche B-2 Term Loan, 5.28% (LIBOR +
300 bps), 3/11/22 3,680,006
2,481,250 Staples, Inc., Closing Date Term Loan, 6.343% (LIBOR +
400 bps), 9/12/24 2,476,598
---------------
$ 9,555,817
---------------
Total Retailing $ 24,999,883
------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 1.6%
Semiconductor Equipment -- 0.5%
1,000,000 Cohu, Inc., Term Loan B, 5.396% (LIBOR + 300 bps), 9/19/25 $ 1,001,875
884,526 Entegris, Inc., New Tranche B Term Loan, 4.552% (LIBOR +
225 bps), 4/30/21 887,843
818,323 MKS Instruments, Inc., Tranche B-3 Term Loan, 4.052%
(LIBOR + 175 bps), 5/1/23 821,137
445,263 Sensata Technologies BV, Sixth Amendment Term Loan,
4.03% (LIBOR + 175 bps), 10/14/21 447,490
1,925,000 Ultra Clean Holdings, Inc., Term Loan B, 6.802% (LIBOR +
450 bps), 8/27/25 1,893,719
---------------
$ 5,052,064
------------------------------------------------------------------------------------------------------
Semiconductors -- 1.1%
987,538 Bright Bidco BV (aka Lumileds LLC), 2018 Refinancing
Term B Loan, 5.859% (LIBOR + 350 bps), 6/30/24 $ 969,638
2,197,580 MACOM Technology Solutions Holdings, Inc. (fka M/A-COM
Technology Solutions Holdings, Inc.), Initial Term Loan,
4.552% (LIBOR + 225 bps), 5/17/24 2,131,652
2,215,617 Microchip Technology, Inc., Initial Term Loan, 4.31%
(LIBOR + 200 bps), 5/29/25 2,209,524
3,486,285 Micron Technology, Inc., Term Loan, 4.06% (LIBOR +
175 bps), 4/26/22 3,495,001
1,237,540 ON Semiconductor Corp., 2018 New Replacement
Term B-3 Loan, 4.052% (LIBOR + 175 bps), 3/31/23 1,237,076
---------------
$ 10,042,891
---------------
Total Semiconductors & Semiconductor Equipment $ 15,094,955
------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 5.6%
Application Software -- 0.7%
2,981,222 Applied Systems, Inc., First Lien Initial Term Loan,
5.386% (LIBOR + 300 bps), 9/19/24 $ 2,991,572
1,604,582 Infor (US), Inc. (fka Lawson Software, Inc.), Tranche B-6
Term Loan, 5.136% (LIBOR + 275 bps), 2/1/22 1,601,072
1,613,614 Verint System, Inc., Refinancing Term Loan, 4.274%
(LIBOR + 200 bps), 6/28/24 1,618,656
---------------
$ 6,211,300
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 1.3%
982,500 Conduent, Inc., Term B Loan, 4.802% (LIBOR +
250 bps), 12/7/23 $ 986,798
3,185,413 Everi Payments Inc., Term B Loan, 5.302% (LIBOR +
300 bps), 5/9/24 3,205,985
2,542,227 First Data Corp., 2022D New Dollar Term Loan, 4.287%
(LIBOR + 200 bps), 7/8/22 2,539,453
2,841,078 First Data Corp., 2024A New Dollar Term Loan, 4.287%
(LIBOR + 200 bps), 4/26/24 2,837,978
765,206 Global Payments Inc., Term B-3 Loan, 4.052% (LIBOR +
175 bps), 4/21/23 766,401
1,000,000 Global Payments Inc., Term B-4 Loan, 4.086% (LIBOR +
175 bps), 10/17/25 1,000,000
1,398,497 WEX, Inc., Term B-2 Loan, 4.552% (LIBOR + 225 bps), 6/30/23 1,402,868
---------------
$ 12,739,483
------------------------------------------------------------------------------------------------------
Internet Services & Infrastructure -- 0.6%
1,427,973 Rackspace Hosting, Inc., First Lien Term B Loan, 5.348%
(LIBOR + 300 bps), 11/3/23 $ 1,391,560
591,266 Vantiv LLC (fka Fifth Third Processing Solutions LLC), New
Term B-3 Loan, 4.03% (LIBOR + 175 bps), 10/14/23 590,978
991,020 Vantiv LLC (fka Fifth Third Processing Solutions LLC), New
Term B-4 Loan, 4.03% (LIBOR + 175 bps), 8/9/24 990,676
2,295,129 Zayo Group LLC (Zayo Capital, Inc.), 2017 Incremental
Refinancing B-2 Term Loan, 4.552% (LIBOR +
225 bps), 1/19/24 2,301,225
---------------
$ 5,274,439
------------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.2%
1,488,061 Match Group, Inc. (fka The Match Group, Inc.), Additional
Term B-1 Loan, 4.78% (LIBOR + 250 bps), 11/16/22 $ 1,499,221
------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 2.3%
322,628 4L Technologies, Inc. (fka Clover Holdings, Inc.), Term Loan,
6.795% (LIBOR + 450 bps), 5/8/20 $ 315,773
945,250 Altran Technologies, Facility B, 4.588% (LIBOR +
225 bps), 3/20/25 948,204
655,129 Booz Allen Hamilton, Inc., New Refinancing Tranche B Term
Loan, 4.302% (LIBOR + 200 bps), 6/30/23 658,241
3,730,539 CDW LLC (aka AP Exhaust Acquisition LLC) (fka CDW Corp.),
Term Loan, 4.06% (LIBOR + 175 bps), 8/17/23 3,740,500
2,825,000 Financial & Risk US Holdings, Inc., Initial Dollar Term Loan,
6.052% (LIBOR + 375 bps), 10/1/25 2,803,813
995,000 Flexera Software LLC (fka Flexera Software, Inc.), First Lien
Initial Term Loan, 5.56% (LIBOR + 325 bps), 2/26/25 998,524
1,972,853 Go Daddy Operating Co., LLC (GD Finance Co., Inc.),
Tranche B-1 Term Loan, 4.552% (LIBOR + 225 bps), 2/15/24 1,977,323
763,428 Kronos, Inc., First Lien Incremental Term Loan, 5.343%
(LIBOR + 300 bps), 11/1/23 765,535
1,000,000(b) Mitchell International, Inc., First Lien Initial Term
Loan, 11/29/24 997,265
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 39
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- (continued)
2,550,651 Rocket Software, Inc., First Lien Term Loan, 6.136%
(LIBOR + 375 bps), 10/14/23 $ 2,560,535
1,000,000(b) Science Applications International Corp., Term
Loan B, 11/5/25 1,001,406
2,543,431 Tempo Acquisition LLC, Initial Term Loan, 5.302%
(LIBOR + 300 bps), 5/1/24 2,547,007
2,600,000 Verscend Holding Corp., Term B Loan, 6.802%
(LIBOR + 450 bps), 8/27/25 2,621,125
---------------
$ 21,935,251
------------------------------------------------------------------------------------------------------
Systems Software -- 0.5%
616,139 Ivanti Software, Inc. (fka LANDesk Group, Inc.), First Lien
Term Loan, 6.51% (LIBOR + 425 bps), 1/20/24 $ 617,679
967,575 West Corp., Incremental Term B-1 Loan, 6.026%
(LIBOR + 350 bps), 10/10/24 958,201
3,492,281 West Corp., Initial Term B Loan, 6.526% (LIBOR +
400 bps), 10/10/24 3,483,114
---------------
$ 5,058,994
---------------
Total Software & Services $ 52,718,688
------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.9%
Communications Equipment -- 0.7%
2,300,000 Ciena Corp., Refinancing Term Loan, 4.28% (LIBOR +
200 bps), 9/26/25 $ 2,306,468
579,708 Commscope, Inc., Tranche 5 Term Loan, 4.302% (LIBOR +
200 bps), 12/29/22 581,881
1,000,000(b) Lumentum Holdings Inc., Term Loan, 8/8/25 1,005,000
2,250,000 Plantronics, Inc., Initial Term B Loan, 4.802% (LIBOR +
250 bps), 7/2/25 2,247,539
---------------
$ 6,140,888
------------------------------------------------------------------------------------------------------
Electronic Components -- 0.2%
2,245,898 Mirion Technologies (Finance) LLC (Mirion
Technologies, Inc.), First Lien Initial Term Loan, 7.136%
(LIBOR + 475 bps), 3/31/22 $ 2,240,283
------------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.1%
969,649 Zebra Technologies Corp. (Zebra Diamond Holdings, Ltd.),
Tranche B Term Loan, 4.063% (LIBOR +
175 bps), 10/27/21 $ 974,618
------------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.2%
997,500 Celestica, Inc., Term B Loan, 4.295% (LIBOR +
200 bps), 6/27/25 $ 991,889
1,187,074 TTM Technologies, Inc., Term Loan B, 4.756% (LIBOR +
250 bps), 9/28/24 1,187,816
---------------
$ 2,179,705
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
40 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Technology Distributors -- 0.3%
582,112 SS&C Technologies Holdings, Inc., 2017 Refinancing New
Term B-1 Loan, 4.552% (LIBOR + 225 bps), 7/8/22 $ 583,308
735,541 SS&C Technologies Holdings, Inc., Term B-3 Loan, 4.552%
(LIBOR + 225 bps), 4/16/25 732,840
285,096 SS&C Technologies Holdings, Inc., Term B-4 Loan, 4.552%
(LIBOR + 225 bps), 4/16/25 284,049
1,000,000 SS&C Technologies Holdings, Inc., Term B-5 Loan, 4.552%
(LIBOR + 225 bps), 4/16/25 997,875
---------------
$ 2,598,072
------------------------------------------------------------------------------------------------------
Technology Hardware, Storage & Peripherals -- 0.4%
3,851,989 Western Digital Corp., US Term B-4 Loan, 4.044%
(LIBOR + 175 bps), 4/29/23 $ 3,834,656
---------------
Total Technology Hardware & Equipment $ 17,968,222
------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 3.4%
Integrated Telecommunication Services -- 2.2%
1,319,000 Altice France SA, USD Incremental Term B13 Loan, 6.28%
(LIBOR + 400 bps), 8/14/26 $ 1,303,172
5,869,689 CenturyLink, Inc., Initial Term B Loan, 5.052% (LIBOR +
275 bps), 1/31/25 5,809,524
3,157,537 Frontier Communications Corp., Term B-1 Loan, 6.06%
(LIBOR + 375 bps), 6/15/24 3,062,811
586,789 General Communications, Inc., New Term B Loan, 4.552%
(LIBOR + 225 bps), 2/2/22 587,706
3,667,027 Level 3 Financing, Inc., Tranche B 2024 Term Loan, 4.53%
(LIBOR + 225 bps), 2/22/24 3,673,903
1,526,750 Numericable US LLC, USD TLB-11 Term Loan, 5.052%
(LIBOR + 275 bps), 7/31/25 1,486,673
496,250 Securus Technologies Holdings, Inc., First Lien Initial Term
Loan, 6.802% (LIBOR + 450 bps), 11/1/24 498,855
1,980,000 SFR Group SA, USD Term Loan B-12, 5.967% (LIBOR +
369 bps), 1/31/26 1,944,113
1,305,384 Windstream Services LLC (fka Windstream Corp.),
Tranche B-6 Term Loan, 6.29% (LIBOR + 400 bps), 3/29/21 1,222,982
950,780 Windstream Services LLC (fka Windstream Corp.),
Tranche B-7 Term Loan, 5.54% (LIBOR + 325 bps), 2/17/24 828,763
---------------
$ 20,418,502
------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.2%
1,980,000 Altice Financing SA, October 2017 USD Term Loan, 5.04%
(LIBOR + 275 bps), 1/31/26 $ 1,949,047
2,338,167 Altice US Finance I Corp., March 2017 Refinancing Term
Loan, 4.552% (LIBOR + 225 bps), 7/28/25 2,336,219
1,472,037 SBA Senior Finance II LLC, Initial Term Loan, 4.31%
(LIBOR + 200 bps), 4/11/25 1,470,810
4,926,269 Sprint Communications, Inc., Initial Term Loan, 4.813%
(LIBOR + 250 bps), 2/2/24 4,923,150
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 41
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- (continued)
1,045,876 Virgin Media Bristol LLC, Facility K, 4.78% (LIBOR +
250 bps), 1/15/26 $ 1,046,437
---------------
$ 11,725,663
---------------
Total Telecommunication Services $ 32,144,165
------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.7%
Air Freight & Logistics -- 0.2%
1,619,250 Syncreon Global Finance, Inc., Term Loan, 6.777%
(LIBOR + 425 bps), 10/28/20 $ 1,500,506
------------------------------------------------------------------------------------------------------
Airlines -- 1.1%
3,935,250 Air Canada, Replacement Term Loan, 4.295% (LIBOR +
200 bps), 10/6/23 $ 3,948,366
871,987 American Airlines, Inc., 2017 Class B Term Loan, 4.28%
(LIBOR + 200 bps), 12/14/23 867,286
490,000 American Airlines, Inc., 2017 Class B Term Loan, 4.295%
(LIBOR + 200 bps), 4/28/23 487,397
3,879,991 American Airlines, Inc., 2018 Replacement Term Loan,
4.045% (LIBOR + 175 bps), 6/27/25 3,806,333
1,659,109 United AirLines, Inc., Refinanced Term Loan, 4.052%
(LIBOR + 175 bps), 4/1/24 1,673,627
---------------
$ 10,783,009
------------------------------------------------------------------------------------------------------
Highways & Railtracks -- 0.0%+
500,000 Deck Chassis Acquisition Inc., Second Lien Initial Term Loan,
8.527% (LIBOR + 600 bps), 6/15/23 $ 504,375
------------------------------------------------------------------------------------------------------
Marine -- 0.2%
810,643 Commercial Barge Line Co., Initial Term Loan, 11.052%
(LIBOR + 875 bps), 11/12/20 $ 626,222
936,710 Navios Maritime Partners LP, Initial Term Loan, 7.34%
(LIBOR + 500 bps), 9/14/20 938,271
---------------
$ 1,564,493
------------------------------------------------------------------------------------------------------
Trucking -- 0.2%
108,236 Kenan Advantage Group Holdings Corp., Initial Canadian
Term Loan, 5.302% (LIBOR + 300 bps), 7/29/22 $ 108,259
355,924 Kenan Advantage Group Holdings Corp., Initial US Term
Loan, 5.302% (LIBOR + 300 bps), 7/29/22 355,998
969,537 YRC Worldwide, Inc., Tranche B-1 Term Loan, 10.802%
(LIBOR + 850 bps), 7/26/22 982,868
---------------
$ 1,447,125
---------------
Total Transportation $ 15,799,508
------------------------------------------------------------------------------------------------------
UTILITIES -- 2.6%
Electric Utilities -- 1.4%
2,206,024 APLP Holdings, Ltd., Partnership, Term Loan, 5.302%
(LIBOR + 300 bps), 4/13/23 $ 2,213,194
1,736,875 Calpine Construction Finance Co., LP, Term B Loan, 4.802%
(LIBOR + 250 bps), 1/15/25 1,736,196
The accompanying notes are an integral part of these financial statements.
42 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Electric Utilities -- (continued)
1,243,305 Dayton Power & Light Co., Term Loan, 4.31% (LIBOR +
200 bps), 8/24/22 $ 1,247,967
490,350 Exgen Renewables IV LLC, Term Loan, 5.32% (LIBOR +
300 bps), 11/28/24 495,253
396,045 Helix Gen Funding LLC, Term Loan, 6.052% (LIBOR +
375 bps), 6/3/24 372,365
984,970 St. Joseph Energy Centre, LLC, Advance Term B Loan, 5.8%
(LIBOR + 350 bps), 4/10/25 994,204
2,715,441 TPF II Power LLC (TPF II Convert Midco LLC), Term Loan,
6.052% (LIBOR + 375 bps), 10/2/23 2,714,382
3,296,058 Vistra Operations Co., LLC (fka Tex Operations Co., LLC),
Initial Term Loan, 4.302% (LIBOR + 200 bps), 8/4/23 3,292,614
---------------
$ 13,066,175
------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.2%
2,000,000 Centurion Pipeline Co. LLC, Initial Term Loan, 5.636%
(LIBOR + 325 bps), 9/29/25 $ 2,017,500
------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Traders -- 0.5%
1,010,167 Calpine Corp., Term Loan, 4.89% (LIBOR +
250 bps), 1/15/24 $ 1,007,992
1,444,850 NRG Energy, Inc., Term Loan, 4.136% (LIBOR +
175 bps), 6/30/23 1,440,696
1,270,482 TerraForm AP Acquisition Holdings LLC, Term Loan, 6.636%
(LIBOR + 425 bps), 6/27/22 1,270,482
1,269,303 TerraForm Power Operating LLC, Specified Refinancing
Term Loan, 4.302% (LIBOR + 200 bps), 11/8/22 1,269,303
---------------
$ 4,988,473
------------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.2%
1,917,653 Compass Power Generation LLC, Tranche B-1 Term Loan,
5.802% (LIBOR + 350 bps), 12/20/24 $ 1,930,837
------------------------------------------------------------------------------------------------------
Water Utilities -- 0.3%
911,790 Culligan NewCo., Ltd., First Lien Tranche B-1 Term Loan,
5.552% (LIBOR + 325 bps), 12/13/23 $ 910,367
1,865,650 EWT Holdings III Corp., Refinancing 2017-2 First Lien Term
Loan, 5.302% (LIBOR + 300 bps), 12/20/24 1,863,318
---------------
$ 2,773,685
---------------
Total Utilities $ 24,776,670
------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $849,090,696) $ 847,315,709
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 43
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------------
COMMON STOCK -- 0.0%+ of Net Assets
RETAILING -- 0.0%+
Computer & Electronics Retail -- 0.0%+
54,675^(c) Targus Cayman SubCo., Ltd. $ 113,724
---------------
Total Retailing $ 113,724
------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost $191,363) $ 113,724
------------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 0.1% of Net Assets
DIVERSIFIED FINANCIALS -- 0.1%
Consumer Finance -- 0.1%
10,902(d) GMAC Capital Trust I, 8.099% (3 Month USD LIBOR +
579 bps), 2/15/40 $ 286,287
---------------
Total Diversified Financials $ 286,287
------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $286,177) $ 286,287
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($)
------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 0.4% of Net Assets
BANKS -- 0.4%
Thrifts & Mortgage Finance -- 0.4%
1,000,000(a) Hertz Fleet Lease Funding LP, Series 2016-1, Class E,
5.784% (1 Month USD LIBOR + 350 bps), 4/10/30 (144A) $ 1,002,593
1,500,000(a) Home Partners of America Trust, Series 2016-2,
Class E, 6.07% (1 Month USD LIBOR + 378 bps),
10/17/33 (144A) 1,502,623
875,000(a) Palmer Square Loan Funding, Ltd., Series 2018-1A,
Class D, 6.386% (3 Month USD LIBOR + 395 bps),
4/15/26 (144A) 860,110
---------------
Total Banks $ 3,365,326
------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $3,384,781) $ 3,365,326
------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS --
0.4% of Net Assets
BANKS -- 0.4%
Thrifts & Mortgage Finance -- 0.4%
1,000,000(a) Citigroup Commercial Mortgage Trust, Series 2015-SHP2,
Class D, 5.58% (1 Month USD LIBOR + 330 bps),
7/15/27 (144A) $ 1,009,835
1,400,000(a) Commercial Mortgage Trust, Series 2014-FL5, Class D,
6.28% (1 Month USD LIBOR + 400 bps), 10/15/31 (144A) 1,363,610
1,035,770(a) GS Mortgage Securities Trust, Series 2014-GSFL,
Class D, 5.582% (1 Month USD LIBOR + 390 bps),
7/15/31 (144A) 1,041,613
---------------
Total Banks $ 3,415,058
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
44 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.0%+
Other Diversified Financial Services -- 0.0%+
69,390(a) Velocity Commercial Capital Loan Trust, Series 2011-1,
6.216% (1 Month USD LIBOR + 400 bps), 8/25/40 (144A) $ 69,791
---------------
Total Diversified Financials $ 69,791
------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $3,359,622) $ 3,484,849
------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 3.2% of Net Assets
BANKS -- 0.3%
Diversified Banks -- 0.3%
1,000,000(d)(e) Bank of America Corp., 6.3% (3 Month USD
LIBOR + 455 bps) $ 1,053,750
1,550,000(d)(e) BNP Paribas SA, 7.625% (5 Year USD Swap Rate +
631 bps) (144A) 1,610,062
---------------
Total Banks $ 2,663,812
------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Construction & Engineering -- 0.1%
750,000 MasTec, Inc., 4.875%, 3/15/23 $ 731,250
---------------
Total Capital Goods $ 731,250
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.4%
Diversified Capital Markets -- 0.1%
1,000,000 Avation Capital SA, 6.5%, 5/15/21 (144A) $ 1,002,500
------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.2%
1,500,000(a) Goldman Sachs Group, Inc., 4.081% (3 Month USD
LIBOR + 177 bps), 2/25/21 $ 1,541,220
------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.1%
1,000,000 Nationstar Mortgage LLC/Nationstar Capital Corp.,
6.5%, 7/1/21 $ 999,470
---------------
Total Diversified Financials $ 3,543,190
------------------------------------------------------------------------------------------------------
ENERGY -- 0.8%
Oil & Gas Equipment & Services -- 0.2%
1,000,000 Archrock Partners LP/Archrock Partners Finance Corp.,
6.0%, 10/1/22 $ 990,000
1,000,000 FTS International, Inc., 6.25%, 5/1/22 953,750
---------------
$ 1,943,750
------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.4%
485,000 Gulfport Energy Corp., 6.625%, 5/1/23 $ 485,000
947,000 Oasis Petroleum, Inc., 6.875%, 3/15/22 952,919
2,750,000 Resolute Energy Corp., 8.5%, 5/1/20 2,743,125
---------------
$ 4,181,044
------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.2%
1,400,000(a) Golar LNG Partners LP, 8.564% (3 Month USD LIBOR +
625 bps), 5/18/21 (144A) $ 1,403,510
---------------
Total Energy $ 7,528,304
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 45
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.1%
Distillers & Vintners -- 0.0%+
359,000 Pernod Ricard SA, 4.45%, 1/15/22 (144A) $ 365,697
------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 0.1%
400,000(a) Tyson Foods, Inc., 2.871% (3 Month USD LIBOR +
55 bps), 6/2/20 $ 400,814
---------------
Total Food, Beverage & Tobacco $ 766,511
------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.5%
Health Care Facilities -- 0.3%
600,000 CHS/Community Health Systems, Inc., 6.25%, 3/31/23 $ 551,820
96,000 CHS/Community Health Systems, Inc., 8.125%,
6/30/24 (144A) 75,840
2,000,000 HCA, Inc., 5.375%, 2/1/25 2,012,500
310,000 RegionalCare Hospital Partners Holdings, Inc., 8.25%,
5/1/23 (144A) 327,438
---------------
$ 2,967,598
------------------------------------------------------------------------------------------------------
Health Care Services -- 0.0%+
269,000 Universal Hospital Services, Inc., 7.625%, 8/15/20 $ 269,336
------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.2%
1,000,000 Centene Corp., 5.625%, 2/15/21 $ 1,015,000
1,000,000 Molina Healthcare, Inc., 5.375%, 11/15/22 1,000,000
---------------
$ 2,015,000
---------------
Total Health Care Equipment & Services $ 5,251,934
------------------------------------------------------------------------------------------------------
MATERIALS -- 0.2%
Diversified Metals & Mining -- 0.1%
376,000 Rain CII Carbon LLC/CII Carbon Corp., 7.25%,
4/1/25 (144A) $ 378,820
------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.1%
1,150,000(a) Reynolds Group Issuer, Inc./Reynolds Group Issuer
LLC/Reynolds Group Issuer Lu, 5.936% (3 Month USD
LIBOR + 350 bps), 7/15/21 (144A) $ 1,161,500
---------------
Total Materials $ 1,540,320
------------------------------------------------------------------------------------------------------
MEDIA & ENTERTAINMENT -- 0.3%
Advertising -- 0.1%
370,000 MDC Partners, Inc., 6.5%, 5/1/24 (144A) $ 303,400
------------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.2%
1,250,000 Hughes Satellite Systems Corp., 5.25%, 8/1/26 $ 1,187,500
1,000,000 Sirius XM Radio, Inc., 3.875%, 8/1/22 (144A) 962,500
---------------
$ 2,150,000
---------------
Total Media & Entertainment $ 2,453,400
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
46 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.1%
Pharmaceuticals -- 0.1%
1,000,000 Valeant Pharmaceuticals International, Inc., 5.5%,
11/1/25 (144A) $ 980,000
---------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 980,000
------------------------------------------------------------------------------------------------------
RETAILING -- 0.3%
Automotive Retail -- 0.0%+
391,000 Penske Automotive Group, Inc., 3.75%, 8/15/20 $ 387,090
------------------------------------------------------------------------------------------------------
Internet Retail -- 0.3%
1,500,000 Booking Holdings, Inc., 3.6%, 6/1/26 $ 1,432,559
1,500,000 Expedia Group, Inc., 4.5%, 8/15/24 1,478,290
---------------
$ 2,910,849
---------------
Total Retailing $ 3,297,939
------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.0%+
Wireless Telecommunication Services -- 0.0%+
500,000 Intelsat Jackson Holdings SA, 8.0%, 2/15/24 (144A) $ 523,125
---------------
Total Telecommunication Services $ 523,125
------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
Airlines -- 0.1%
932,357 Air Canada 2013-1 Class B Pass Through Trust, 5.375%,
5/15/21 (144A) $ 949,839
360,000 Air Canada 2015-1 Class C Pass Through Trust, 5.0%,
3/15/20 (144A) 361,800
---------------
Total Transportation $ 1,311,639
------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $ 30,858,385) $ 30,591,424
------------------------------------------------------------------------------------------------------
INSURANCE-LINKED SECURITIES -- 1.7% of Net Assets(1)
CATASTROPHE LINKED BONDS -- 0.8%
Earthquakes - California -- 0.1%
500,000(a) Ursa Re, 3.5% (ZERO + 350 bps), 5/27/20 (144A) $ 500,750
------------------------------------------------------------------------------------------------------
Multiperil - U.S. -- 0.5%
350,000(a) Kilimanjaro Re, 6.858% (3 Month USD LIBOR +
465 bps), 5/6/22 (144A) $ 349,650
500,000(a) Kilimanjaro Re, 9.08% (3 Month U.S. Treasury Bill +
675 bps), 12/6/19 (144A) 505,300
250,000(a) Kilimanjaro Re, 11.58% (3 Month U.S. Treasury Bill +
925 bps), 12/6/19 (144A) 255,025
600,000(a) Kilimanjaro II Re, 8.021% (6 Month USD LIBOR +
572 bps), 4/20/21 (144A) 601,800
300,000+(a) Panthera Re 2018-1, 5.83% (3 Month U.S. Treasury Bill +
350 bps), 3/9/20 (144A) 303,120
500,000(a) PennUnion Re, 6.83% (3 Month U.S. Treasury Bill +
450 bps), 12/7/18 (144A) 501,300
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 47
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Multiperil - U.S. -- (continued)
250,000(a) Residential Reinsurance 2015, 9.105% (3 Month
U.S. Treasury Bill + 678 bps), 12/6/19 (144A) $ 254,475
350,000(a) Residential Reinsurance 2016, 6.145% (3 Month
U.S. Treasury Bill + 382 bps), 12/6/20 (144A) 354,375
500,000(a) Residential Reinsurance 2017, 7.865% (3 Month
U.S. Treasury Bill + 554 bps), 12/6/21 (144A) 492,350
300,000(a) Sanders Re, 5.253% (6 Month USD LIBOR + 307 bps),
12/6/21 (144A) 293,130
350,000(a) Tailwind Re 2017-1, 9.58% (3 Month U.S. Treasury Bill +
725 bps), 1/8/22 (144A) 355,390
---------------
$ 4,265,915
------------------------------------------------------------------------------------------------------
Multiperil - Worldwide -- 0.2%
400,000(a) Galilei Re, 6.84% (6 Month USD LIBOR + 466 bps),
1/8/20 (144A) $ 403,200
250,000(a) Galilei Re, 6.86% (6 Month USD LIBOR + 466 bps),
1/8/21 (144A) 250,200
300,000(a) Galilei Re, 7.63% (6 Month USD LIBOR + 545 bps),
1/8/20 (144A) 300,990
300,000(a) Galilei Re, 7.65% (6 Month USD LIBOR + 545 bps),
1/8/21 (144A) 300,840
300,000(a) Galilei Re, 8.71% (6 Month USD LIBOR + 653 bps),
1/8/20 (144A) 299,940
600,000(a) Galilei Re, 8.73% (6 Month USD LIBOR + 653 bps),
1/8/21 (144A) 601,020
---------------
$ 2,156,190
---------------
Total Catastrophe Linked Bonds $ 6,922,855
------------------------------------------------------------------------------------------------------
COLLATERALIZED REINSURANCE -- 0.2%
Earthquakes - California -- 0.1%
500,000+(f) Resilience Re, Variable Rate Notes, 1/8/19 (144A) $ 500,000
400,000+(f) Resilience Re, Variable Rate Notes, 10/15/19 420,680
---------------
$ 920,680
------------------------------------------------------------------------------------------------------
Multiperil - Worldwide -- 0.1%
326,836+(f) Kilarney Re 2018, Variable Rate Notes, 4/15/19 $ 310,984
250,000+(f) Limestone Re 2016-1, Variable Rate Notes, 8/31/21 248,025
250,000+(f) Resilience Re, Variable Rate Notes, 4/8/19 248,975
300,000+(f) Resilience Re, Variable Rate Notes, 5/1/19 3,000
---------------
$ 810,984
------------------------------------------------------------------------------------------------------
Windstorm - Florida -- 0.0%+
300,000+(f) Formby Re 2018, Variable Rate Notes, 6/15/19 $ 307,410
102,242+(f) Formby Re 2018-2, Variable Rate Notes, 12/31/18 100,003
---------------
$ 407,413
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
48 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
------------------------------------------------------------------------------------------------------
Windstorm - U.S. Regional -- 0.0%+
300,000+(f) Promissum Re 2018, Variable Rate Notes, 6/15/19 $ 292,890
---------------
Total Collateralized Reinsurance $ 2,431,967
------------------------------------------------------------------------------------------------------
INDUSTRY LOSS WARRANTIES -- 0.1%
Multiperil - U.S. -- 0.1%
800,000+(f) Pinehurst Re 2018, Variable Rate Notes, 1/15/19 $ 797,840
---------------
Total Industry Loss Warranties $ 797,840
------------------------------------------------------------------------------------------------------
REINSURANCE SIDECARS -- 0.6%
Multiperil - U.S. -- 0.0%+
600,000+(f) Carnoustie Re 2016, Variable Rate Notes, 11/30/20 $ 16,200
600,000+(f) Carnoustie Re 2017, Variable Rate Notes, 11/30/21 152,520
400,000+(f) Harambee Re 2018, Variable Rate Notes, 12/31/21 429,080
---------------
$ 597,800
------------------------------------------------------------------------------------------------------
Multiperil - Worldwide -- 0.6%
1,635,886+(f) Berwick Re 2018-1, Variable Rate Notes, 12/31/21 $ 1,601,205
600,000+(f) Eden Re II, Variable Rate Notes, 3/22/22 (144A) 626,520
350,000+(f) Gleneagles Re 2016, Variable Rate Notes, 11/30/20 21,700
400,000+(f) Limestone Re 2018, Variable Rate Notes, 3/1/22 412,760
700,000+(f) Lorenz Re 2018, Variable Rate Notes, 7/1/21 692,230
250,000+(f) Madison Re 2016, Variable Rate Notes, 3/31/19 6,950
400,000+(f) Merion Re 2018-2, Variable Rate Notes, 12/31/21 431,360
600,000+(f) Pangaea Re 2016-1, Variable Rate Notes, 11/30/20 3,480
600,000+(f) Pangaea Re 2018-1, Variable Rate Notes, 12/31/21 612,780
600,000+(f) Pangaea Re 2018-3, Variable Rate Notes, 7/1/22 548,760
600,000+(f) St. Andrews Re 2017-1, Variable Rate Notes, 2/1/19 40,680
695,194+(f) St. Andrews Re 2017-4, Variable Rate Notes, 6/1/19 68,407
253,645+(f) Woburn Re 2018, Variable Rate Notes, 12/31/21 265,389
---------------
$ 5,332,221
---------------
Total Reinsurance Sidecars $ 5,930,021
------------------------------------------------------------------------------------------------------
TOTAL INSURANCE-LINKED SECURITIES
(Cost $15,967,150) $ 16,082,683
------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS --
9.1% of Net Assets
34,000,000(g) United States Treasury Bills, 11/1/18 $ 34,000,000
14,350,000(g) United States Treasury Bills, 11/8/18 14,344,168
4,785,000(g) United States Treasury Bills, 11/15/18 4,781,069
28,000,000(g) United States Treasury Bills, 11/29/18 27,952,933
4,865,000(g) United States Treasury Bills, 1/24/19 4,839,388
------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $85,917,229) $ 85,917,558
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 49
Schedule of Investments | 10/31/18 (continued)
------------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES -- 0.8% of Net Assets
BANKS -- 0.0%+
Diversified Banks -- 0.0%+
100,000 Invesco Senior Income Trust $ 414,000
---------------
Total Banks $ 414,000
------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.8%
Asset Management & Custody Banks -- 0.4%
100,000 BlackRock Floating Rate Income Strategies Fund, Inc. $ 1,297,000
100,000 Eaton Vance Floating-Rate Income Trust 1,374,000
100,000 First Trust Senior Floating Rate Income Fund II 1,204,000
---------------
$ 3,875,000
------------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.1%
50,000 Invesco Senior Loan ETF $ 1,150,500
------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.3%
36,000 iShares iBoxx $ High Yield Corporate Bond ETF $ 3,036,600
---------------
Total Diversified Financials $ 8,062,100
------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT COMPANIES
(Cost $8,864,754) $ 8,476,100
------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS -- 105.6%
(Cost $997,920,157) $ 995,633,660
------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (5.6)% $ (53,033,278)
------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 942,600,382
======================================================================================================
(1) Securities are restricted as to resale.
bps Basis Points.
LIBOR London Interbank Offered Rate.
PRIME U.S. Federal Funds Rate.
REIT Real Estate Investment Trust.
ZERO Zero Constant Index.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
October 31, 2018, the value of these securities amounted to $25,305,581,
or 2.7% of net assets.
+ Amount rounds to less than 0.1%.
* Senior secured floating rate loan interests in which the Fund invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending rate plus a premium. These base lending
rates are generally (i) the lending rate offered by one or more major
European banks, such as LIBOR, (ii) the prime rate offered by one or
more major United States banks, (iii) the rate of a certificate of
deposit or (iv) other base lending rates used by commercial lenders. The
interest rate shown is the rate accruing at October 31, 2018.
+ Securities that used significant unobservable inputs to determine their
value.
^ Security is valued using fair value methods (other than prices supplied
by independent pricing services). See Notes to Financial Statements --
Note 1A.
The accompanying notes are an integral part of these financial statements.
50 Pioneer Floating Rate Fund | Annual Report | 10/31/18
(a) Floating rate note. Coupon rate, reference index and spread shown at
October 31, 2018.
(b) This term loan will settle after October 31, 2018, at which time the
interest rate will be determined.
(c) Non-income producing security.
(d) The interest rate is subject to change periodically. The interest rate
and/or reference index and spread shown at October 31, 2018.
(e) Security is perpetual in nature and has no stated maturity date.
(f) Rate to be determined.
(g) Security issued with a zero coupon. Income is recognized through
accretion of discount.
FORWARD FOREIGN CURRENCY CONTRACT
------------------------------------------------------------------------------------------------------
Currency In Currency Settlement Unrealized
Purchased Exchange for Sold Deliver Counterparty Date Appreciation
------------------------------------------------------------------------------------------------------
USD 2,279,652 EUR (1,985,002) JPMorgan 1/31/19 $14,211
Chase Bank NA
------------------------------------------------------------------------------------------------------
TOTAL FORWARD FOREIGN CURRENCY CONTRACT $14,211
======================================================================================================
SWAP CONTRACTS
CENTRALLY CLEARED CREDIT DEFAULT SWAP CONTRACTS -- SELL PROTECTION
------------------------------------------------------------------------------------------------------
Net
Obligation Annual Unrealized
Notional Reference/ Pay/ Fixed Expiration Premiums Appreciation Market
Amount ($)(1) Index Receive(2) Rate Date Paid (Depreciation) Value
------------------------------------------------------------------------------------------------------
1,306,250 Markit CDX North Receive 5.00% 6/20/20 $ 69,761 $ (503) $ 69,258
America High Yield
Index Series 24
3,000,000 Markit CDX North Receive 1.00% 12/20/20 54,248 (10,329) 43,919
America High Yield
Index Series 25
1,468,800 Markit CDX North Receive 5.00% 12/20/20 81,453 7,505 88,958
America High Yield
Index Series 25
7,389,200 Markit CDX North Receive 5.00% 12/20/21 521,831 1,666 523,497
America High Yield
Index Series 27
------------------------------------------------------------------------------------------------------
TOTAL SWAP CONTRACTS $727,293 $ (1,661) $725,632
======================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Receives Quarterly.
Principal amounts are denominated in U.S. dollars ("USD") unless otherwise
noted.
EUR -- Euro
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 51
Schedule of Investments | 10/31/18 (continued)
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2018 were as follows:
------------------------------------------------------------------------------------------------------
Purchases Sales
------------------------------------------------------------------------------------------------------
Long-Term U.S. Government $ -- $ 47,816,605
Other Long-Term Securities $419,333,742 $307,012,184
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc., (the "Adviser"), serves as the Fund's investment adviser, as
set forth in Rule 17a-7 under the Investment Company Act of 1940, pursuant to
procedures adopted by the Board of Trustees. Under these procedures, cross
trades are effected at current market prices. During the year ended October 31,
2018, the Fund engaged in purchases of $2,075,645 and sales of $0 pursuant to
these procedures, which resulted in a net realized gain/loss of $0.
At October 31, 2018, the net unrealized depreciation on investments based on
cost for federal tax purposes of $999,032,198 was as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 4,738,183
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (7,396,878)
-----------
Net unrealized depreciation $(2,658,695)
===========
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of October 31, 2018, in valuing
the Fund's investments.
------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------
Senior Secured Floating
Rate Loan Interests $ -- $ 847,315,709 $ -- $ 847,315,709
Common Stock -- -- 113,724 113,724
Preferred Stock 286,287 -- -- 286,287
Asset Backed Securities -- 3,365,326 -- 3,365,326
Collateralized Mortgage
Obligations -- 3,484,849 -- 3,484,849
Corporate Bonds -- 30,591,424 -- 30,591,424
Insurance-Linked Securities
Catastrophe Linked Bonds
Multiperil - U.S. -- 3,962,795 303,120 4,265,915
Collateralized Reinsurance
Earthquakes - California -- -- 920,680 920,680
Multiperil - Worldwide -- -- 810,984 810,984
Windstorm - Florida -- -- 407,413 407,413
Windstorm -
U.S. Regional -- -- 292,890 292,890
The accompanying notes are an integral part of these financial statements.
52 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------
Industry Loss Warranties
Multiperil - U.S. $ -- $ -- $ 797,840 $ 797,840
Reinsurance Sidecars
Multiperil - U.S. -- -- 597,800 597,800
Multiperil - Worldwide -- -- 5,332,221 5,332,221
All Other Insurance-Linked
Securities -- 2,656,940 -- 2,656,940
U.S. Government and
Agency Obligations -- 85,917,558 -- 85,917,558
Investment Companies 8,476,100 -- -- 8,476,100
------------------------------------------------------------------------------------------
Total Investments
in Securities $ 8,762,387 $ 977,294,601 $ 9,576,672 $ 995,633,660
==========================================================================================
Other Financial Instruments
Unrealized appreciation
on forward foreign
currency contracts $ -- $ 14,211 $ -- $ 14,211
Swap contracts, at value -- 725,632 -- 725,632
------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ -- $ 739,843 $ -- $ 739,843
==========================================================================================
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
-------------------------------------------------------------------------------
Insurance-
Common Linked
Stocks Securities Loans Total
-------------------------------------------------------------------------------
Balance as of 10/31/17 $107,710 $ 5,431,036(a) $ 1,066,938 $ 6,605,684
Realized gain (loss)(1) -- (16,858) 28,549 11,691
Change in unrealized
appreciation
(depreciation)(2) 6,014 (112,030) (8,936) (114,952)
Accrued discounts/
premiums -- -- 1,564 1,564
Purchases -- 8,539,444 -- 8,539,444
Sales -- (4,378,644) (1,088,115) (5,466,759)
Transfers in to Level 3* -- -- -- --
Transfers out of Level 3* -- -- -- --
-------------------------------------------------------------------------------
Balance as of 10/31/18 $113,724 $ 9,462,948 $ -- $ 9,576,672
===============================================================================
(a) Securities were classified as Corporate Bonds on October 31, 2017
financial statements.
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) from investments on the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) from investments on
the Statement of Operations.
* Transfers are calculated on the beginning of period value. For the year
ended October 31, 2018, there were no transfers between levels 1, 2 and 3.
Net change in unrealized appreciation (depreciation) of Level 3 investments
still held and considered Level 3 at October 31, 2018: $94,141
-------
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 53
Statement of Assets and Liabilities | 10/31/18
ASSETS:
Investments in unaffiliated issuers, at value (cost $997,920,157) $ 995,633,660
Cash 1,512,083
Foreign currencies, at value (cost $17,375) 17,349
Swaps collateral 567,668
Variation margin for centrally cleared swap contracts 13,306
Swap contracts, at value (net premiums paid $727,293) 725,632
Unrealized appreciation on forward foreign currency contracts 14,211
Unrealized appreciation on unfunded loan commitments 9,648
Receivables --
Investment securities sold 10,396,034
Fund shares sold 2,990,858
Interest 2,297,286
Due from the Adviser 168,161
Other assets 52,071
-----------------------------------------------------------------------------------------
Total assets $1,014,397,967
=========================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 67,453,332
Fund shares repurchased 2,708,654
Distributions 389,999
Trustees' fees 3,501
Due to broker for swap contracts 722,510
Due to affiliates 91,199
Accrued expenses 428,390
-----------------------------------------------------------------------------------------
Total liabilities $ 71,797,585
=========================================================================================
NET ASSETS:
Paid-in capital $ 964,367,897
Distributable earnings (loss) (21,767,515)
-----------------------------------------------------------------------------------------
Net assets $ 942,600,382
=========================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $161,020,273/23,910,337 shares) $ 6.73
Class C (based on $68,364,349/10,145,263 shares) $ 6.74
Class Y (based on $713,215,760/105,637,861 shares) $ 6.75
MAXIMUM OFFERING PRICE PER SHARE:
Class A (based on $6.73 net asset value per share/
100%-4.50% maximum sales charge) $ 7.05
=========================================================================================
The accompanying notes are an integral part of these financial statements.
54 Pioneer Floating Rate Fund | Annual Report | 10/31/18
Statement of Operations
For the Year Ended 10/31/18
INVESTMENT INCOME:
Interest from unaffiliated issuers $ 43,056,449
Dividends from unaffiliated issuers (net of foreign taxes
withheld $238) 477,781
-------------------------------------------------------------------------------------------------
Total investment income $ 43,534,230
=================================================================================================
EXPENSES:
Management fees $ 5,115,220
Administrative expense 274,428
Transfer agent fees
Class A 126,632
Class C 54,297
Class Y 484,517
Distribution fees
Class A 441,693
Class C 744,266
Shareowner communications expense 38,026
Custodian fees 73,995
Registration fees 92,611
Professional fees 102,737
Printing expense 36,183
Pricing fees 65,922
Trustees' fees 35,727
Insurance expense 10,201
Miscellaneous 262,205
-------------------------------------------------------------------------------------------------
Total expenses $ 7,958,660
Less fees waived and expenses reimbursed by the Adviser (425,907)
-------------------------------------------------------------------------------------------------
Net expenses $ 7,532,753
-------------------------------------------------------------------------------------------------
Net investment income $ 36,001,477
-------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $ (3,004,866)
Forward foreign currency contracts 228,862
Swap contracts 713,659
Other assets and liabilities denominated in
foreign currencies (53,786) $ (2,116,131)
-------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $ (5,613,908)
Forward foreign currency contracts 14,211
Swap contracts (477,988)
Unfunded loan commitments 9,648
Other assets and liabilities denominated in foreign currencies (55,434) $ (6,123,471)
-------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ (8,239,602)
-------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 27,761,875
=================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 55
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------
Year Year
Ended Ended
10/31/18 10/31/17
------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 36,001,477 $ 30,827,302
Net realized gain (loss) on investments (2,116,131) (803,351)
Change in net unrealized appreciation
(depreciation) on investments (6,123,471) 1,636,548
------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 27,761,875 $ 31,660,499
------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Class A ($0.27 and $0.24 per share, respectively) $ (6,978,239) $ (6,923,555)***
Class C ($0.22 and $0.19 per share, respectively) (2,383,910) (2,336,352)***
Class K* ($-- and $0.24 per share, respectively) -- (12,368)***
Class Y ($0.29 and $0.26 per share, respectively) (26,910,705) (21,158,154)***
------------------------------------------------------------------------------------------
Total distributions to shareowners $ (36,272,854) $ (30,430,429)
------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales of shares $ 414,179,477 $ 391,242,498
Reinvestment of distributions 32,093,449 27,914,969
Cost of shares repurchased (361,051,827) (288,319,155)
------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 85,221,099 $ 130,838,312
------------------------------------------------------------------------------------------
Net increase in net assets $ 76,710,120 $ 132,068,382
NET ASSETS:**
Beginning of year $ 865,890,262 $ 733,821,880
------------------------------------------------------------------------------------------
End of year $ 942,600,382 $ 865,890,262
==========================================================================================
* Class K shares had no assets or shareowners for periods after October 4,
2017.
** For the year ended October 31, 2017 undistributed net investment income was
presented as follows: $821,591.
*** For the year ended October 31, 2017 distributions to shareowners were
presented as net investment income.
The accompanying notes are an integral part of these financial statements.
56 Pioneer Floating Rate Fund | Annual Report | 10/31/18
-------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/18 10/31/18 10/31/17 10/31/17
Shares Amount Shares Amount
-------------------------------------------------------------------------------------
Class A
Shares sold 9,683,451 $ 65,540,109 8,672,241 $ 58,946,960
Reinvestment of
distributions 975,066 6,596,289 974,592 6,624,723
Less shares repurchased (15,163,284) (102,659,897) (9,869,591) (67,079,839)
-------------------------------------------------------------------------------------
Net decrease (4,504,767) $ (30,523,499) (222,758) $ (1,508,156)
=====================================================================================
Class C
Shares sold 2,506,138 $ 16,969,718 2,570,564 $ 17,480,458
Reinvestment of
distributions 325,208 2,201,908 318,001 2,163,592
Less shares repurchased (4,306,823) (29,161,062) (3,864,560) (26,287,345)
-------------------------------------------------------------------------------------
Net decrease (1,475,477) $ (9,989,436) (975,995) $ (6,643,295)
=====================================================================================
Class K*
Shares sold -- $ -- -- $ --
Reinvestment of
distributions -- -- -- --
Less shares repurchased -- -- (102,850) (699,035)
-------------------------------------------------------------------------------------
Net decrease -- $ -- (102,850) $ (699,035)
=====================================================================================
Class Y
Shares sold 48,878,516 $ 331,669,650 46,208,677 $ 314,815,080
Reinvestment of
distributions 3,435,561 23,295,252 2,806,943 19,126,654
Less shares repurchased (33,777,903) (229,230,868) (28,499,823) (194,252,936)
-------------------------------------------------------------------------------------
Net increase 18,536,174 $ 125,734,034 20,515,797 $ 139,688,798
=====================================================================================
* Class K shares had no assets or shareowners for periods after October 4,
2017.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 57
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/18 10/31/17 10/31/16* 10/31/15* 10/31/14*
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 6.80 $ 6.79 $ 6.73 $ 6.86 $ 6.95
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.26(a) $ 0.24(a) $ 0.24(a) $ 0.24(a) $ 0.24
Net realized and unrealized gain (loss) on investments (0.06) 0.01 0.05 (0.14) (0.09)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.20 $ 0.25 $ 0.29 $ 0.10 $ 0.15
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.27) $ (0.24) $ (0.23) $ (0.23) $ (0.24)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.07) $ 0.01 $ 0.06 $ (0.13) $ (0.09)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.73 $ 6.80 $ 6.79 $ 6.73 $ 6.86
====================================================================================================================================
Total return (b) 2.96% 3.71% 4.49% 1.53% 2.17%
Ratio of net expenses to average net assets 1.01% 1.02% 1.01% 1.08% 1.07%
Ratio of net investment income (loss) to average net assets 3.89% 3.54% 3.66% 3.48% 3.49%
Portfolio turnover rate 42% 69% 51% 24% 43%
Net assets, end of period (in thousands) $161,020 $193,193 $194,408 $174,979 $238,764
Ratios with no waiver of fees and assumption of
expense by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.01% 1.02% 1.04% 1.10% 1.07%
Net investment income (loss) to average net assets 3.89% 3.54% 3.63% 3.46% 3.49%
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
The accompanying notes are an integral part of these financial statements.
58 Pioneer Floating Rate Fund | Annual Report | 10/31/18
--------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/18 10/31/17 10/31/16* 10/31/15* 10/31/14*
--------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 6.80 $ 6.79 $ 6.74 $ 6.87 $ 6.96
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.21(a) $ 0.19(a) $ 0.19(a) $ 0.19(a) $ 0.19
Net realized and unrealized gain (loss) on investments (0.05) 0.01 0.05 (0.13) (0.09)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.16 $ 0.20 $ 0.24 $ 0.06 $ 0.10
--------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.22) $ (0.19) $ (0.19) $ (0.19) $ (0.19)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.06) $ 0.01 $ 0.05 $ (0.13) $ (0.09)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.74 $ 6.80 $ 6.79 $ 6.74 $ 6.87
================================================================================================================================
Total return (b) 2.35% 2.93% 3.58% 0.81% 1.43%
Ratio of net expenses to average net assets 1.76% 1.77% 1.79% 1.81% 1.78%
Ratio of net investment income (loss) to average net assets 3.15% 2.78% 2.89% 2.74% 2.79%
Portfolio turnover rate 42% 69% 51% 24% 43%
Net assets, end of period (in thousands) $68,364 $79,057 $85,563 $92,924 $112,117
Ratios with no waiver of fees and assumption of
expense by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.76% 1.77% 1.81% 1.84% 1.78%
Net investment income (loss) to average net assets 3.15% 2.78% 2.87% 2.71% 2.79%
================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
The accompanying notes are an integral part of these financial statements.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 59
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/18 10/31/17 10/31/16* 10/31/15* 10/31/14*
------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 6.82 $ 6.81 $ 6.75 $ 6.88 $ 6.97
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.29(a) $ 0.26(a) $ 0.27(a) $ 0.26(a) $ 0.27
Net realized and unrealized gain (loss) on investments (0.07) 0.01 0.05 (0.13) (0.10)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.22 $ 0.27 $ 0.32 $ 0.13 $ 0.17
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.29) $ (0.26) $ (0.26) $ (0.26) $ (0.26)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.07) $ 0.01 $ 0.06 $ (0.13) $ (0.09)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.75 $ 6.82 $ 6.81 $ 6.75 $ 6.88
====================================================================================================================================
Total return (b) 3.27% 4.05% 4.85% 1.92% 2.50%
Ratio of net expenses to average net assets 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net investment income (loss) to average net assets 4.22% 3.86% 3.97% 3.84% 3.86%
Portfolio turnover rate 42% 69% 51% 24% 43%
Net assets, end of period (in thousands) $713,216 $593,640 $453,152 $323,812 $352,115
Ratios with no waiver of fees and assumption of
expense by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.77% 0.79% 0.82% 0.82% 0.82%
Net investment income (loss) to average net assets 4.15% 3.77% 3.85% 3.72% 3.74%
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
The accompanying notes are an integral part of these financial statements.
60 Pioneer Floating Rate Fund | Annual Report | 10/31/18
Notes to Financial Statements | 10/31/18
1. Organization and Significant Accounting Policies
Pioneer Floating Rate Fund (the "Fund") is one of three portfolios comprising
Pioneer Series Trust VI, a Delaware statutory trust. The Fund is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is to produce a high
level of current income.
The Fund offers five classes of shares designated as Class A, Class C, Class K,
Class T and Class Y shares. Class K shares did not have assets or shareholders
as of October 31, 2018. Class T shares had not commenced operations as of
October 31, 2018. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has identical rights (based on relative
net asset values) to assets and liquidation proceeds. Share classes can bear
different rates of class-specific fees and expenses, such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board of Trustees the
flexibility to specify either per-share voting or dollar-weighted voting when
submitting matters for shareowner approval. Under per-share voting, each share
of a class of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareowner's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
Amundi Pioneer Asset Management, Inc., an indirect wholly owned subsidiary of
Amundi and Amundi's wholly owned subsidiary, Amundi USA, Inc., serves as the
Fund's investment adviser (the "Adviser"). Amundi Pioneer Distributor, Inc., an
affiliate of Amundi Pioneer Asset Management, Inc., serves as the Fund's
distributor (the "Distributor").
In August 2018, the SEC released a Disclosure Update and Simplification Final
Rule. The Final Rule amends Regulation S-X disclosures requirements to conform
them to U.S. Generally Accepted Accounting Principles ("U.S. GAAP") for
investment companies. The Fund's financial statements were prepared in
compliance with the new amendments to Regulation S-X.
The Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. U.S. GAAP requires the management of the
Fund to make estimates and assumptions that affect the
Pioneer Floating Rate Fund | Annual Report | 10/31/18 61
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:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the New
York Stock Exchange ("NYSE") is open, as of the close of regular trading on
the NYSE.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to supply
prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Loan interests are valued in accordance with guidelines established by the
Board of Trustees at the mean between the last available bid and asked
prices from one or more brokers or dealers as obtained from Loan Pricing
Corporation, an independent third party pricing service. If price
information is not available from Loan Pricing Corporation, or if the price
information is deemed to be unreliable, price information will be obtained
from an alternative loan interest pricing service. If no reliable price
quotes are available from either the primary or alternative pricing
service, broker quotes will be solicited.
Event-linked bonds or catastrophe bonds are valued at the bid price
obtained from an independent third party pricing service. Other
insurance-linked securities (including sidecars, collateralized reinsurance
and industry loss warranties) may be valued at the bid price obtained from
an independent pricing service, or through a third party using a pricing
matrix, insurance industry valuation models, or other fair value methods or
techniques to provide an estimated value of the instrument.
62 Pioneer Floating Rate Fund | Annual Report | 10/31/18
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party pricing
source. Trading in non-U.S. equity securities is substantially completed
each day at various times prior to the close of the NYSE. The values of
such securities used in computing the net asset value of the Fund's shares
are determined as of such times. The Fund may use a fair value model
developed by an independent pricing service to value non-U.S. equity
securities.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate and the forward points on a daily basis, in each case
provided by a third party pricing service. Contracts whose forward
settlement date falls between two quoted days are valued by interpolation.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealers Association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Shares of
exchange-listed closed-end funds are valued by using the last sale price on
the principal exchange where they are traded.
Repurchase agreements are valued at par. Cash may include overnight time
deposits at approved financial institutions.
Securities or loan interests for which independent pricing services or
broker-dealers are unable to supply prices or for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued by a fair valuation team comprised of certain
personnel of the Adviser pursuant to procedures adopted by the Fund's Board
of Trustees. The Adviser's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. The Adviser's
fair valuation
Pioneer Floating Rate Fund | Annual Report | 10/31/18 63
team is responsible for monitoring developments that may impact fair valued
securities and for discussing and assessing fair values on an ongoing
basis, and at least quarterly, with the Valuation Committee of the Board of
Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices, and
such differences could be material.
At October 31, 2018, one security was valued using fair value methods (in
addition to securities valued using prices supplied by independent pricing
services, broker-dealers or using a third party insurance pricing model)
representing 0.01% of net assets. The value of this fair valued security
was $113,724.
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
Interest income, including interest on income-bearing cash accounts, is
recorded on the accrual basis. Dividend and interest income are reported
net of unrecoverable foreign taxes withheld at the applicable country rates
and net of income accrued on defaulted securities.
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
64 Pioneer Floating Rate Fund | Annual Report | 10/31/18
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated on the Statement of Operations from
the effects of changes in the market prices of those securities, but are
included with the net realized and unrealized gain or loss on investments.
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 net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no provision for federal income taxes is
required. As of October 31, 2018, the Fund did not accrue any interest or
penalties with respect to uncertain tax positions, which, if applicable,
would be recorded as an income tax expense on the Statement of Operations.
Tax returns filed within the prior three years remain subject to
examination by federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary over distributions for financial
statement purposes resulting from differences in the recognition or
classification of income or distributions for financial statement and tax
purposes. Capital accounts within the financial statements are adjusted for
permanent book/tax differences to reflect tax character, but are not
adjusted for temporary differences.
At October 31, 2018, the Fund was permitted to carry forward $1,652,256 of
short-term capital losses and $19,074,878 of long-term capital losses
without limitation. Additionally, at October 31, 2018, the Fund had a net
capital loss carryforward of $574,533, which will expire in 2019 if not
utilized. Since unlimited losses are required to be used first, loss
carryforwards that are subject to expiration may be more likely to expire
unused.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 65
The tax character of distributions paid during the years ended October 31,
2018 and October 31, 2017, were as follows:
---------------------------------------------------------------------------
2018 2017
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $36,272,854 $30,430,429
---------------------------------------------------------------------------
Total $36,272,854 $30,430,429
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2018:
---------------------------------------------------------------------------
2018
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 2,628,633
Capital loss carryforward (21,301,667)
Dividend payable (389,999)
Net unrealized depreciation (2,704,482)
---------------------------------------------------------------------------
Total $(21,767,515)
===========================================================================
The difference between book basis and tax basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales, the mark to
market of swap contracts, the tax treatment of premium and amortization,
adjustments relating to catastrophe bonds, the tax adjustments relating to
credit default swaps, preferred stocks and other holdings.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor earned $13,285 in underwriting commissions on the sale of Class
A shares during the year ended October 31, 2018.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the Fund's transfer agent for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
66 Pioneer Floating Rate Fund | Annual Report | 10/31/18
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
G. Risks
The value of securities held by the Fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's investments in
foreign markets and countries with limited developing markets may subject
the Fund to a greater degree of risk than investments in a developed
market. These risks include disruptive political or economic conditions and
the imposition of adverse governmental laws or currency exchange
restrictions.
Interest rates in the U.S. have been historically low and have begun to
rise, so the Fund faces a heightened risk that interest rates may continue
to rise. A general rise in interest rates could adversely affect the price
and liquidity of fixed-income securities and could also result in increased
redemptions from the Fund.
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.
With the increased use of technologies such as the Internet to conduct
business, the Fund is susceptible to operational, information security and
related risks. While the Fund's Adviser has established business continuity
Pioneer Floating Rate Fund | Annual Report | 10/31/18 67
plans in the event of, and risk management systems to prevent, limit or
mitigate, such cyber-attacks, there are inherent limitations in such plans
and systems including the possibility that certain risks have not been
identified. Furthermore, the Fund cannot control the cybersecurity plans
and systems put in place by service providers to the Fund such as Brown
Brothers Harriman & Co., the Fund's custodian and accounting agent, and DST
Asset Manager Solutions, Inc., the Fund's transfer agent. In addition, many
beneficial owners of Fund shares hold them through accounts at broker-
dealers, retirement platforms and other financial market participants over
which neither the Fund nor Amundi Pioneer exercises control. Each of these
may in turn rely on service providers to them, which are also subject to
the risk of cyber-attacks. Cybersecurity failures or breaches at Amundi
Pioneer or the Fund's service providers or intermediaries have the ability
to cause disruptions and impact business operations, potentially resulting
in financial losses, interference with the Fund's ability to calculate its
net asset value, impediments to trading, the inability of Fund shareowners
to effect share purchases, redemptions or exchanges or receive
distributions, loss of or unauthorized access to private shareowners
information and violations of applicable privacy and other laws, regulatory
fines, penalties, reputational damage, or additional compliance costs. Such
costs and losses may not be covered under any insurance. In addition,
maintaining vigilance against cyber-attacks may involve substantial costs
over time, and system enhancements may themselves be subject to
cyber-attacks.
The Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
H. Insurance-Linked Securities ("ILS")
The Fund invests in event-linked bonds and other ILS. The Fund could lose a
portion or all of the principal it has invested in an ILS, and the right to
additional interest payments with respect to the security, upon the
occurrence of one or more trigger events, as defined within the terms of an
insurance-linked security. Trigger events, generally, are hurricanes,
earthquakes, or other natural events of a specific size or magnitude that
occur in a designated geographic region during a specified time period,
and/or that involve losses or other metrics that exceed a specific amount.
There is no way to accurately predict whether a trigger event will occur
and, accordingly, ILS carry significant risk. The Fund is entitled to
receive principal and interest payments so long as no trigger event occurs
of the description and magnitude specified by the instrument. In addition
to the specified trigger events, ILS may expose the Fund to other risks,
including but not limited to issuer (credit) default, adverse regulatory or
jurisdictional interpretations and adverse tax consequences.
68 Pioneer Floating Rate Fund | Annual Report | 10/31/18
The Fund's investments in ILS may include special purpose vehicles ("SPVs")
or similar instruments structured to comprise a portion of a reinsurer's
catastrophe-oriented business, known as quota share instruments (sometimes
referred to as reinsurance sidecars), or to provide reinsurance relating to
specific risks to insurance or reinsurance companies through a
collateralized instrument, known as collateralized reinsurance. Structured
reinsurance investments also may include industry loss warranties ("ILWs").
A traditional ILW takes the form of a bilateral reinsurance contract, but
there are also products that take the form of derivatives, collateralized
structures, or exchange-traded instruments.
Where the ILS are based on the performance of underlying reinsurance
contracts, the Fund has limited transparency into the individual underlying
contracts, and therefore must rely upon the risk assessment and sound
underwriting practices of the issuer. Accordingly, it may be more difficult
for the Adviser to fully evaluate the underlying risk profile of the Fund's
structured reinsurance investments, and therefore the Fund's assets are
placed at greater risk of loss than if the Adviser had more complete
information. Structured reinsurance instruments generally will be
considered illiquid securities by the Fund. These securities may be
difficult to purchase, sell or unwind. Illiquid securities also may be
difficult to value. If the Fund is forced to sell an illiquid asset, the
Fund may be forced to sell at a loss.
Additionally, the Fund may gain exposure to ILS by investing in a closed
end interval fund, Pioneer ILS Interval Fund, an affiliate of the Adviser.
I. Repurchase Agreements
Repurchase agreements are arrangements under which the Fund purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Fund at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Fund. The securities purchased serve as
the Fund's collateral for the obligation of the counterparty to repurchase
the securities. The value of the collateral, including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian or a sub-custodian of the
Fund. The Adviser is responsible for determining that the value of the
collateral remains at least equal to the repurchase price. In the event of
a default by the counterparty, the Fund is entitled to sell the securities,
but the Fund may not be able to sell them for the price at which they were
purchased, thus causing a loss to the Fund. Additionally, if the
counterparty becomes insolvent, there is some risk that the Fund will not
have a right to the securities, or the immediate right to sell the
securities.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 69
As of and for the year ended October 31, 2018, the Fund had no open
repurchase agreements.
J. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts ("contracts")
for the purchase or sale of a specific foreign currency at a fixed price on
a future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
is recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 6).
At October 31, 2018, the Fund had entered into various forward foreign
currency contracts that obligated the Fund to deliver or take delivery of
currencies at specified future maturity dates. Alternatively, prior to the
settlement date of a forward foreign currency contract, the Fund may close
out such contract by entering into an offsetting contract.
The average market value of forward foreign currency contracts open during
the year ended October 31, 2018, was $(2,008,502). Forward foreign currency
contracts outstanding at October 31, 2018, are listed in the Schedule of
Investments.
K. Credit Default Swap Contracts
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event or an underlying
reference obligation, which may be a single security or a basket or index
of securities. The Fund may buy or sell credit default swap contracts to
seek to increase the Fund's income, or to attempt to hedge the risk of
default on portfolio securities. A credit default swap index is used to
hedge risk or take a position on a basket of credit entities or indices.
As a seller of protection, the Fund would be required to pay the notional
(or other agreed-upon) value of the referenced debt obligation to the
counterparty in the event of a default by a U.S. or foreign corporate
issuer of a debt obligation, which would likely result in a loss to the
Fund. In return, the Fund would receive from the counterparty a periodic
stream of payments during the term of the contract, provided that no event
of default occurred. The maximum exposure of loss to the seller would be
the notional value of the credit default swaps outstanding. If no default
occurs, the Fund would
70 Pioneer Floating Rate Fund | Annual Report | 10/31/18
keep the stream of payments and would have no payment obligation. The Fund
may also buy credit default swap contracts in order to hedge against the
risk of default of debt securities, in which case the Fund would function
as the counterparty referenced above.
As a buyer of protection, the Fund makes an upfront or periodic payment to
the protection seller in exchange for the right to receive a contingent
payment. An upfront payment made by the Fund, as the protection buyer, is
recorded within the "Swap contracts, at value" line item on the Statement
of Assets and Liabilities. Periodic payments received or paid by the Fund
are recorded as realized gains or losses on the Statement of Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded within the "Swap contracts, at value" line item on the Statement
of Assets and Liabilities. Payments received or made as a result of a
credit event or upon termination of the contract are recognized, net of the
appropriate amount of the upfront payment, as realized gains or losses on
the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund. In addition,
obligations under sell protection credit default swaps may be partially
offset by net amounts received from settlement of buy protection credit
default swaps entered into by the Fund for the same reference obligation
with the same counterparty.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as "Variation margin for
centrally cleared swaps" on the Statement of Assets and Liabilities. Cash
received from or paid to the broker related to previous margin movement is
held in a segregated account at the broker and is recorded as either "Due
from broker for swaps" or "Due to broker for swaps" on the Statement of
Assets and
Pioneer Floating Rate Fund | Annual Report | 10/31/18 71
Liabilities. The amount of cash deposited with a broker as collateral at
October 31, 2018, is recorded as "Swaps collateral" on the Statement of
Assets and Liabilities.
The average market value of credit default swap contracts open during the
year ended October 31, 2018 was $798,222. Open credit default swap
contracts at October 31, 2018 are listed in the Schedule of Investments.
2. Management Agreement
The Adviser manages the Fund's portfolio. Effective October 1, 2018, Management
fees are calculated daily at the annual rate of 0.60% of the Fund's average
daily net assets up to $500 million, 0.55% of the next $1.5 billion of the
Fund's average daily net assets, and 0.50% of the Fund's average daily net
assets over $2 billion. Prior to August 1, 2018, Management fees were calculated
daily at the annual rate of 0.60% of the Fund's average daily net assets up to
$500 million and 0.55% on assets over $500 million. For the year ended October
31, 2018, the effective management fee (excluding waivers and/or assumption of
expenses) was equivalent to 0.58% of the Fund's average daily net assets.
The Adviser has contractually agreed to limit ordinary operating expenses
(ordinary operating expenses means all fund expenses other than extraordinary
expenses, such as litigation, taxes, brokerage commissions and acquired fund
fees and expenses) of the Fund to the extent required to reduce Fund expenses to
0.70% of the average daily net assets attributable to Class Y shares. Fees
waived and expenses reimbursed during the year ended October 31, 2018, are
reflected on the Statement of Operations. These expense limitations are in
effect through March 1, 2019. There can be no assurance that the Adviser will
extend the expense limitation agreement for a class of shares beyond the date
referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$76,363 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at October 31, 2018.
3. Transfer Agent
DST Asset Manager Solutions, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
72 Pioneer Floating Rate Fund | Annual Report | 10/31/18
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings, and outgoing phone calls. For the year
ended October 31, 2018, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareowner Communications
--------------------------------------------------------------------------------
Class A $ 7,410
Class Y 30,616
--------------------------------------------------------------------------------
Total $38,026
================================================================================
4. Distribution Plan
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A and Class C
shares. Pursuant to the Plan, the Fund pays the Distributor 0.25% of the average
daily net assets attributable to Class A shares as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class A shares. Pursuant to the Plan, the Fund also pays the
Distributor 1.00% of the average daily net assets attributable to Class C
shares. The fee for Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class C shares.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $14,836 in distribution fees payable to the Distributor at
October 31, 2018.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge ("CDSC"). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to the
Distributor. For the year ended October 31, 2018, CDSCs in the amount of $9,551
were paid to the Distributor.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
"Funds"), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. Up until
July 31, 2018, the Fund participated in a credit facility that was in the
Pioneer Floating Rate Fund | Annual Report | 10/31/18 73
amount of $195 million. Effective August 1, 2018, the Fund participates in a
credit facility that is in the amount of 250 million. Under such credit
facility, depending on the type of loan, interest on borrowings is payable at
the London Interbank Offered Rate ("LIBOR") plus 0.90% on an annualized basis,
or the Alternate Base Rate, which is the greater of (a) the facility's
administrative agent's daily announced prime rate on the borrowing date, (b) 2%
plus the Federal Funds Rate on the borrowing date, or (c) 2% plus the overnight
Eurodollar rate on the borrowing date. The Funds pay an annual commitment fee to
participate in a credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the year ended October 31, 2018, the Fund had no borrowings under
the credit facility.
6. Master Netting Agreements
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the trading
of certain Over the Counter ("OTC") derivatives and typically contains, among
other things, close-out and set-off provisions which apply upon the occurrence
of an event of default and/or a termination event as defined under the relevant
ISDA Master Agreement. The ISDA Master Agreement may also give a party the right
to terminate all transactions traded under such agreement if, among other
things, there is deterioration in the credit quality of the other party. Upon an
event of default or a termination of the ISDA Master Agreement, the
non-defaulting party has the right to close out all transactions under such
agreement and to net amounts owed under each transaction to determine one net
amount payable by one party to the other. The right to close out and net
payments across all transactions under the ISDA Master Agreement could result in
a reduction of the Fund's credit risk to its counterparty equal to any amounts
payable by the Fund under the applicable transactions, if any. However, the
Fund's right to setoff may be restricted or prohibited by the bankruptcy or
insolvency laws of the particular jurisdiction to which each specific ISDA of
each counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collateral pledged for
74 Pioneer Floating Rate Fund | Annual Report | 10/31/18
the benefit of the Fund and/or counterparty is held in segregated accounts by
the Fund's custodian and cannot be sold, re-pledged, assigned or otherwise used
while pledged. Cash that has been segregated to cover the Fund's collateral
obligations, if any, will be reported separately on the Statement of Assets and
Liabilities as "Forwards collateral" and/or "Swaps collateral". Securities
pledged by the Fund as collateral, if any, are identified as such in the
Schedule of Investments.
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have been offset on the Statement of Assets and
Liabilities. The following chart shows gross assets of the Fund as of October
31, 2018.
--------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
--------------------------------------------------------------------------------------------
JPMorgan
Chase Bank NA $14,211 $ -- $ -- $ -- $14,211
--------------------------------------------------------------------------------------------
Total $14,211 $ -- $ -- $ -- $14,211
============================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
7. Additional Disclosures about Derivative Instruments and Hedging Activities
The Fund's use of derivatives may enhance or mitigate the Fund's exposure to the
following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange rate risk), whether caused by factors specific to
an individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 75
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at October 31,
2018 was as follows:
-----------------------------------------------------------------------------------
Statement of Assets and Liabilities
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Rate Risk Risk Risk
-----------------------------------------------------------------------------------
Assets
Unrealized
appreciation on
forward foreign
currency contracts $ -- $ -- $ 14,211 $ -- $ --
Swap contracts,
at value -- 725,632 -- -- --
-----------------------------------------------------------------------------------
Total Value $ -- $ 725,632 $ 14,211 $ -- $ --
===================================================================================
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at October 31, 2018, was as follows:
-----------------------------------------------------------------------------------
Statement of Operations
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Rate Risk Risk Risk
-----------------------------------------------------------------------------------
Net realized gain
(loss) on:
Forward foreign
currency contracts $ -- $ -- $ 228,862 $ -- $ --
Swap contracts -- 713,659 -- -- --
-----------------------------------------------------------------------------------
Total Value $ -- $ 713,659 $ 228,862 $ -- $ --
===================================================================================
Change in net
unrealized
appreciation
(depreciation) on:
Forward foreign
currency contracts $ -- $ $ 14,211 $ -- $ --
Swap contracts -- (477,987) -- --
-----------------------------------------------------------------------------------
Total Value $ -- $ (477,987) $ 14,211 $ -- $ --
===================================================================================
76 Pioneer Floating Rate Fund | Annual Report | 10/31/18
8. Unfunded Loan Commitments
The Fund may enter into unfunded loan commitments. Unfunded loan commitments may
be partially or wholly unfunded. During the contractual period, the Fund is
obliged to provide funding to the borrower upon demand. A fee is earned by the
Fund on the unfunded commitment and is recorded as interest income on the
Statement of Operations.
As of October 31, 2018, the Fund had the following unfunded loan commitments
outstanding:
-----------------------------------------------------------------------------------
Unrealized
Loan Principal Cost Value Appreciation
-----------------------------------------------------------------------------------
Access CIG, LLC $ 127,410 $ 126,825 $ 128,000 $1,175
Globallogic Holdings Inc. 150,000 149,276 151,219 1,943
NMN Holdings III Corp. 306,000 305,235 306,765 1,530
Universal Health Services Inc. 1,000,000 1,000,000 1,005,000 5,000
-----------------------------------------------------------------------------------
Total Value $1,583,410 $1,581,336 $1,590,984 $9,648
===================================================================================
Pioneer Floating Rate Fund | Annual Report | 10/31/18 77
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VI and the Shareholders of
Pioneer Floating Rate Fund:
--------------------------------------------------------------------------------
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Floating Rate Fund (the "Fund") (one of
the funds constituting Pioneer Series Trust VI (the "Trust")) as of October 31,
2018, and the related statements of operations, changes in net assets and the
financial highlights for the year then ended and the related notes, and the
statement of changes in net assets and financial highlights for the year ended
October 31, 2017 (collectively referred to as the "financial statements"). The
financial highlights for periods ended October 31, 2014, October 31, 2015 and
October 31, 2016 were audited by another independent registered public
accounting firm whose report, dated December 23, 2016, expressed an unqualified
opinion on those financial highlights. In our opinion, the financial statements
present fairly, in all material respects, the financial position of the Fund at
October 31, 2018, the results of its operations, the changes in its net assets,
and the financial highlights for the year ended, and the statement of changes in
net assets and financial highlights for the year ended October 31, 2017, in
conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our
responsibility is to express an opinion on the Fund's financial statements based
on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required to
be independent with respect to the Fund in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Fund is not required to have,
nor were we engaged to perform, an audit of the Fund's internal control over
financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting, but not for the
purpose of expressing an opinion on the effectiveness of the Fund's internal
control over financial reporting. Accordingly, we express no such opinion.
78 Pioneer Floating Rate Fund | Annual Report | 10/31/18
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of October 31, 2018, by correspondence with the custodian and brokers.
Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the Fund's auditor since 2017.
Boston, Massachusetts
December 21, 2018
Pioneer Floating Rate Fund | Annual Report | 10/31/18 79
ADDITIONAL INFORMATION (unaudited)
Qualified interest income is exempt from nonresident alien (NRA) tax
withholding. The percentage of the Fund's ordinary income distributions derived
from qualified interest income was 98.21%.
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the "Adviser"), the
Fund's investment adviser, was an indirect, wholly owned subsidiary of UniCredit
S.p.A. ("UniCredit"). On that date, UniCredit completed the sale of its Pioneer
Investments business, which includes the Adviser, to Amundi (the "Transaction").
As a result of the Transaction, the Adviser became an indirect, wholly owned
subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A. Amundi is
headquartered in Paris, France, and, as of September 30, 2016, had more than
$1.1 trillion in assets under management worldwide.
Deloitte & Touche LLP ("D&T"), the Fund's previous independent registered public
accounting firm, informed the Audit Committee and the Board that it would no
longer be independent with respect to the Fund upon the completion of the
Transaction as a result of certain services being provided to Amundi and Credit
Agricole, and, accordingly, that it intended to resign as the Fund's independent
registered public accounting firm upon the completion of the Transaction. D&T's
resignation was effective on July 3, 2017, when the Transaction was completed.
During the periods as to which D&T has served as the Fund's independent
registered public accounting firm, D&T's reports on the Fund's financial
statements have not contained an adverse opinion or disclaimer of opinion and
have not been qualified or modified as to uncertainty, audit scope or accounting
principles. Further, there have been no disagreements with D&T on any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedure, which, if not resolved to the satisfaction of D&T, would
have caused D&T to make reference to the subject matter of the disagreement in
connection with its report on the financial statements. In addition, there have
been no reportable events of the kind described in Item 304(a)(1)(v) of
Regulation S-K under the Securities Exchange Act of 1934.
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
an independent registered public accounting firm, Ernst & Young LLP ("EY").
80 Pioneer Floating Rate Fund | Annual Report | 10/31/18
Prior to its engagement, EY had advised the Fund's Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities and Exchange
Commission ("SEC"): (a) project management support services to UniCredit in the
Czech Republic, Germany, Italy, Serbia and Slovenia in relation to twenty-two
projects, that were determined to be inconsistent with Rule 2-01(c)(4)(vi) of
Regulation S-X (management functions); (b) two engagements for UniCredit in
Italy where fees were contingent/success based and that were determined to be
inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent fees); (c) four
engagements where legal and expert services were provided to UniCredit in the
Czech Republic and Germany, and twenty engagements where the legal advisory
services were provided to UniCredit in Austria, Czech Republic, Italy and
Poland, that were determined to be inconsistent with Rule 2-01(c)(4)(ix) and (x)
of Regulation S-X (legal and expert services); and (d) two engagements for
UniCredit in Italy involving assistance in the sale of certain assets, that were
determined to be inconsistent with Rule 2-01(c)(4)(viii) of Regulation S-X
(broker-dealer, investment adviser or investment banking services). None of the
foregoing services involved the Fund, any of the other funds in the Pioneer
Family of Funds or any other Pioneer entity sold by UniCredit in the
Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Fund under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Fund, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 81
Approval of Investment Management Agreement
Amundi Pioneer Asset Management, Inc. ("APAM") serves as the investment adviser
to Pioneer Floating Rate Fund (the "Fund") pursuant to an investment management
agreement between APAM and the Fund. In order for APAM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment management agreement for the Fund.
The contract review process began in January 2018 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2018, July 2018
and September 2018. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year, and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings, in connection with the review of the Fund's
investment management agreement.
In March 2018, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment management agreement, and reviewed and
discussed the qualifications of the investment management teams for the Fund, as
well as the level of investment by the Fund's portfolio managers in the Fund. In
July 2018, the Trustees, among other things, reviewed the Fund's management fees
and total expense ratios, the financial statements of APAM and its parent
companies, profitability analyses provided by APAM, and analyses from APAM as to
possible economies of scale. The Trustees also reviewed the profitability of the
institutional business of APAM and APAM's affiliate, Amundi Pioneer
Institutional Asset Management, Inc. ("APIAM" and, together with APAM, "Amundi
Pioneer"), as compared to that of APAM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of APAM's and APIAM's institutional accounts, as well as the
different services provided by APAM to the Fund and by APAM and APIAM to the
institutional accounts. The Trustees further considered contract review
materials, including additional materials received in response to the Trustees'
request, in September 2018.
At a meeting held on September 18, 2018, based on their evaluation of the
information provided by APAM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment management agreement for another year. In
82 Pioneer Floating Rate Fund | Annual Report | 10/31/18
approving the renewal of the investment management agreement, the Trustees
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by APAM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed APAM's investment approach
for the Fund and its research process. The Trustees considered the resources of
APAM and the personnel of APAM who provide investment management services to the
Fund. They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. They considered the non-investment resources and personnel
of APAM that are involved in APAM's services to the Fund, including APAM's
compliance, risk management, and legal resources and personnel. The Trustees
noted the substantial attention and high priority given by APAM's senior
management to the Pioneer Fund complex.
The Trustees considered that APAM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
APAM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to APAM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by APAM to the Fund were
satisfactory and consistent with the terms of the investment management
agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by APAM and information comparing the Fund's
performance with the performance of its peer group of funds, as classified by
Morningstar, Inc. (Morningstar), and the performance of the Fund's benchmark
index. They also discuss the Fund's performance with APAM on a regular basis.
The Trustees' regular reviews and discussions were factored into the Trustees'
deliberations concerning the renewal of the investment management agreement.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 83
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees of its peer group of funds as classified by
Morningstar and also to the expense ratios of a peer group of funds selected on
the basis of criteria determined by the Independent Trustees for this purpose
using data provided by Strategic Insight Mutual Fund Research and Consulting,
LLC (Strategic Insight), an independent third party. The peer group comparisons
referred to below are organized in quintiles. Each quintile represents one-fifth
of the peer group. In all peer group comparisons referred to below, first
quintile is most favorable to the Fund's shareowners. The Trustees noted that
they separately review and consider the impact of the Fund's transfer agency and
Fund- and APAM-paid expenses for sub-transfer agency and intermediary
arrangements, and that the results of the most recent such review were
considered in the consideration of the Fund's expense ratio.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the second quintile relative to the management fees paid by
other funds in its Morningstar category for the comparable period. The Trustees
also considered the breakpoints in the management fee schedule and the reduced
fee rates above certain asset levels. The Trustees considered that the expense
ratio of the Fund's Class A shares for the most recent fiscal year was in the
third quintile relative to its Strategic Insight peer group for the comparable
period. The Trustees considered that the expense ratio of the Fund's Class Y
shares for the most recent fiscal year was in the first quintile relative to its
Strategic Insight peer group for the comparable period.
The Trustees reviewed management fees charged by APAM and APIAM to institutional
and other clients, including publicly offered European funds sponsored by APAM's
affiliates, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered APAM's costs in providing services to the Fund and APAM's and
APIAM's costs in providing services to the other clients and considered the
differences in management fees and profit margins for fund and non-fund
services. In evaluating the fees associated with APAM's and APIAM's client
accounts, the Trustees took into account the respective demands, resources and
complexity associated with the Fund and other client accounts. The Trustees
noted that, in some instances, the fee rates for those clients were lower than
the management fee for the Fund and considered that, under the investment
management agreement with the Fund, APAM performs additional services for the
Fund that it does not provide to those other clients or services that are
broader in scope, including oversight of the Fund's other service providers and
activities related to compliance and the extensive regulatory and tax regimes to
which the Fund is subject. The Trustees also considered the entrepreneurial
risks associated with APAM's management of the Fund.
84 Pioneer Floating Rate Fund | Annual Report | 10/31/18
The Trustees concluded that the management fee payable by the Fund to APAM was
reasonable in relation to the nature and quality of the services provided by
APAM.
Profitability
The Trustees considered information provided by APAM regarding the profitability
of APAM with respect to the advisory services provided by APAM to the Fund,
including the methodology used by APAM in allocating certain of its costs to the
management of the Fund. The Trustees also considered APAM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results, including the profit margins, realized by APAM and APIAM from
non-fund businesses. The Trustees considered APAM's profit margins in comparison
to the limited industry data available and noted that the profitability of any
adviser was affected by numerous factors, including its organizational structure
and method for allocating expenses. The Trustees concluded that APAM's
profitability with respect to the management of the Fund was not unreasonable.
Economies of Scale
The Trustees considered APAM's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Fund and Fund shareholders. The
Trustees noted the breakpoints in the management fee schedule. The Trustees
recognize that economies of scale are difficult to identify and quantify, and
that, among other factors that may be relevant, are the following: fee levels,
expense subsidization, investment by APAM in research and analytical
capabilities and APAM's commitment and resource allocation to the Fund. The
Trustees noted that profitability also may be an indicator of the availability
of any economies of scale, although profitability may vary for other reasons
including due to reductions in expenses. The Trustees concluded that economies
of scale, if any, were being appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits that APAM enjoys from its
relationship with the Fund. The Trustees considered the character and amount of
fees paid or to be paid by the Fund, other than under the investment management
agreement, for services provided by APAM and its affiliates. The Trustees
further considered the revenues and profitability of APAM's businesses other
than the Fund business. To the extent applicable, the Trustees also considered
the benefits to the Fund and to APAM and its affiliates from the use of "soft"
commission dollars generated by the Fund to pay for research and brokerage
services.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 85
The Trustees considered that Amundi Pioneer is the principal U.S. asset
management business of Amundi, which is one of the largest asset managers
globally. Amundi's worldwide asset management business manages over $1.7
trillion in assets (including the Pioneer Funds). The Trustees considered that
APAM's relationship with Amundi creates potential opportunities for APAM, APIAM
and Amundi that derive from APAM's relationships with the Fund, including
Amundi's ability to market the services of APAM globally. The Trustees noted
that APAM has access to additional research and portfolio management
capabilities as a result of its relationship with Amundi and Amundi's enhanced
global presence that may contribute to an increase in the resources available to
APAM. The Trustees considered that APAM and the Fund receive reciprocal
intangible benefits from the relationship, including mutual brand recognition
and, for the Fund, direct and indirect access to the resources of a large global
asset manager. The Trustees concluded that any such benefits received by APAM as
a result of its relationship with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including the Independent Trustees, concluded that the investment
management agreement for the Fund, including the fees payable thereunder, was
fair and reasonable and voted to approve the proposed renewal of the investment
management agreement.
86 Pioneer Floating Rate Fund | Annual Report | 10/31/18
Trustees, Officers and Service Providers
Investment Adviser
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
DST Asset Manager Solutions, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at www.amundipioneer.com. This information is also available on the Securities
and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations and other directorships they have held during at least the past five
years. Trustees who are interested persons of the Fund within the meaning of the
1940 Act are referred to as Interested Trustees. Trustees who are not interested
persons of the Fund are referred to as Independent Trustees. Each of the
Trustees serves as a Trustee of each of the 43 U.S. registered investment
portfolios for which Amundi Pioneer serves as investment adviser (the "Pioneer
Funds"). The address for all Trustees and all officers of the Fund is 60 State
Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Floating Rate Fund | Annual Report | 10/31/18 87
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (68) Trustee since 2007. Private investor (2004 - 2008 and 2013 - Director, Broadridge Financial
Chairman of the Serves until a present); Chairman (2008 - 2013) and Chief Solutions, Inc. (investor
Board and Trustee successor trustee is Executive Officer (2008 - 2012), Quadriserv, communications and securities
elected or earlier Inc. (technology products for securities lending processing provider for
retirement or industry); and Senior Executive Vice President, financial services industry)
removal. The Bank of New York (financial and securities (2009 - present); Director,
services) (1986 - 2004) Quadriserv, Inc. (2005 - 2013);
and Commissioner, New Jersey
State Civil Service Commission
(2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (74) Trustee since 2007. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - Trust(publicly-traded mortgage
successor trustee is 2004 and 2008 - present); Interim Chief REIT) (2004 - 2009, 2012 -
elected or earlier Executive Officer, Oxford Analytica, Inc. present); Director of The Swiss
retirement or (privately held research and consulting company) Helvetia Fund, Inc. (closed-
removal. (2010); Executive Vice President and Chief end fund) (2010 - 2017);
Financial Officer, I-trax, Inc. (publicly traded Director of Oxford Analytica,
health care services company) (2004 - 2007); and Inc. (2008 - 2015); and
Executive Vice President and Chief Financial Director of Enterprise
Officer, Pedestal Inc. (internet-based mortgage Community Investment, Inc.
trading company) (2000 - 2002); Private (privately-held affordable
Consultant (1995 - 1997); Managing Director, housing finance company) (1985
Lehman Brothers (1992 - 1995); and Executive, - 2010)
The World Bank (1979 - 1992)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (74) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and
successor trustee is Mellon Institutional Funds
elected or earlier Master Portfolio (oversaw 17
retirement or portfolios in fund complex)
removal. (1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
88 Pioneer Floating Rate Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (71) Trustee since 2007. Founding Director, Vice-President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee is firm) (1982 - present); Desautels Faculty of
elected or earlier Management, McGill University (1999 - 2017); and
retirement or Manager of Research Operations and
removal. Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (62) Trustee since 2017. Chief Investment Officer, 1199 SEIU Funds None
Trustee (Advisory Trustee (healthcare workers union pension funds) (2001 -
from 2014 - 2017) present); Vice President - International
Serves until a Investments Group, American International Group,
successor trustee is Inc. (insurance company) (1993 - 2001); Vice
elected or earlier President - Corporate Finance and Treasury
retirement or Group, Citibank, N.A. (1980 - 1986 and 1990 -
removal. 1993); Vice President - Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer of debt
securities) (1988 - 1990); Mortgage Strategies
Group, Shearson Lehman Hutton, Inc. (investment
bank) (1987 - 1988); and Mortgage Strategies
Group, Drexel Burnham Lambert, Ltd. (investment
bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (70) Trustee since 2007. President and Chief Executive Officer, Newbury Director of New America High
Trustee Serves until a Piret Company (investment banking firm) (1981 - Income Fund, Inc. (closed-end
successor trustee is present) investment company) (2004 -
elected or earlier present); and Member, Board of
retirement or Governors, Investment Company
removal. Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (71) Trustee since 2014. Consultant (investment company services) (2012 - None
Trustee Serves until a present); Executive Vice President, BNY Mellon
successor trustee is (financial and investment company services)
elected or earlier (1969 - 2012); Director, BNY International
retirement or Financing Corp. (financial services) (2002 -
removal. 2012); and Director, Mellon Overseas Investment
Corp. (financial services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Floating Rate Fund | Annual Report | 10/31/18 89
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (56)* Trustee since 2017. Director, CEO and President of Amundi Pioneer None
Trustee, President and Serves until a Asset Management USA, Inc. (since September
Chief Executive Officer successor trustee is 2014); Director, CEO and President of Amundi
elected or earlier Pioneer Asset Management, Inc. (since September
retirement or 2014); Director, CEO and President of Amundi
removal Pioneer Distributor, Inc. (since September
2014); Director, CEO and President of Amundi
Pioneer Institutional Asset Management, Inc.
(since September 2014); Chair, Amundi Pioneer
Asset Management USA, Inc., Amundi Pioneer
Distributor, Inc. and Amundi Pioneer
Institutional Asset Management, Inc. (September
2014 - 2018); Managing Director, Morgan Stanley
Investment Management (2010 - 2013); and
Director of Institutional Business, CEO of
International, Eaton Vance Management (2005 -
2010)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (60)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S. (since
successor trustee is 2010) of Amundi Pioneer Asset Management USA,
elected or earlier Inc.; Executive Vice President and Chief
retirement or Investment Officer, U.S. of Amundi Pioneer
removal (since 2008); Executive Vice President of Amundi
Pioneer Institutional Asset Management, Inc.
(since 2009); and Portfolio Manager of Amundi
Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers
or directors of the Fund's investment adviser and certain of its
affiliates.
90 Pioneer Floating Rate Fund | Annual Report | 10/31/18
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (53) Since 2007. Serves Vice President and Associate General Counsel of None
Secretary and at the discretion of Amundi Pioneer since January 2008; Secretary and
Chief Legal Officer the Board Chief Legal Officer of all of the Pioneer Funds
since June 2010; Assistant Secretary of all of
the Pioneer Funds from September 2003 to May
2010; and Vice President and Senior Counsel of
Amundi Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (57) Since 2010. Serves Fund Governance Director of Amundi Pioneer since None
Assistant Secretary at the discretion of December 2006 and Assistant Secretary of all the
the Board Pioneer Funds since June 2010; Manager - Fund
Governance of Amundi Pioneer from December 2003
to November 2006; and Senior Paralegal of Amundi
Pioneer from January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (55) Since 2010. Serves Senior Counsel of Amundi Pioneer since May 2013 None
Assistant Secretary at the discretion of and Assistant Secretary of all the Pioneer Funds
the Board since June 2010; and Counsel of Amundi Pioneer
from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (58) Since 2008. Serves Vice President - Fund Treasury of Amundi None
Treasurer and at the discretion of Pioneer; Treasurer of all of the Pioneer Funds
Chief Financial and the Board since March 2008; Deputy Treasurer of Amundi
Accounting Officer Pioneer from March 2004 to February 2008; and
Assistant Treasurer of all of the Pioneer Funds
from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (53) Since 2007. Serves Director - Fund Treasury of Amundi Pioneer; and None
Assistant Treasurer at the discretion of Assistant Treasurer of all of the Pioneer Funds
the Board
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (60) Since 2007. Serves Senior Manager - Fund Treasury of Amundi None
Assistant Treasurer at the discretion of Pioneer; and Assistant Treasurer of all of the
the Board Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Floating Rate Fund | Annual Report | 10/31/18 91
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (38) Since 2009. Serves Senior Manager - Fund Treasury of Amundi Pioneer None
Assistant Treasurer at the discretion of since November 2008; Assistant Treasurer of all
the Board of the Pioneer Funds since January 2009; and
Client Service Manager - Institutional Investor
Services at State Street Bank from March 2003 to
March 2007
------------------------------------------------------------------------------------------------------------------------------------
John Malone (47) Since 2018. Serves Managing Director, Chief Compliance Officer of None
Chief Compliance Officer at the discretion of Amundi Pioneer Asset Management; Amundi Pioneer
the Board Institutional Asset Management, Inc.; and the
Pioneer Funds since September 2018; and Chief
Compliance Officer of Amundi Pioneer
Distributor, Inc. since January 2014.
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (47) Since 2007. Serves Vice President - Investor Services Group of None
Anti-Money Laundering at the discretion of Amundi Pioneer and Anti-Money Laundering Officer
Officer the Board of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
92 Pioneer Floating Rate Fund | Annual Report | 10/31/18
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address us.askamundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2018 Amundi Pioneer Asset Management 21401-11-1218
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
The audit fees for the Trust were $95,000
payable to Ernst & Young LLP for the year ended
October 31, 2018 and $95,000
for the year ended October 31, 2017.
(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.
There were no audit-related services in 2018 or 2017.
(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.
The tax fees for the Trust were $25,189
payable to Ernst & Young LLP for the year ended
October 31, 2018 and $21,630
for the year ended October 31, 2017.
(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.
There were no other fees in 2018 or 2017.
(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 Amudi Pioneer Asset Management, Inc, the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Trust's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Trust. For the
years ended October 31 2018 and 2017, there were no
services provided to an affiliate that required the
Trust's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Trust were $25,189
payable to Ernst & Young LLP for the year ended
October 31, 2018 and $21,630 for the year
ended October 31, 2017.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
Item 12. Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies.
(a) If the registrant is a closed-end management investment company,
provide the following dollar amounts of income and compensation related
to the securities lending activities of the registrant during its most
recent fiscal year:
N/A
(1) Gross income from securities lending activities;
N/A
(2) All fees and/or compensation for each of the following securities
lending activities and related services: any share of revenue generated
by the securities lending program paid to the securities lending agent(s)
(revenue split); fees paid for cash collateral management services
(including fees deducted from a pooled cash collateral reinvestment
vehicle) that are not included in the revenue split; administrative
fees that are not included in the revenue split; fees for
indemnification that are not included in the revenue split; rebates
paid to borrowers; and any other fees relating to the securities lending
program that are not included in the revenue split, including a description
of those other fees;
N/A
(3) The aggregate fees/compensation disclosed pursuant to paragraph (2); and
N/A
(4) Net income from securities lending activities (i.e., the dollar amount in
paragraph (1) minus the dollar amount in paragraph (3)).
If a fee for a service is included in the revenue split, state that the fee
is included in the revenue split.
N/A
(b) If the registrant is a closed-end management investment company, describe
the services provided to the registrant by the securities lending agent in
the registrants most recent fiscal year.
N/A
ITEM 13. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust VI
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 28, 2018
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 28, 2018
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 28, 2018
* Print the name and title of each signing officer under his or her signature.