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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-10455
Pioneer Global High Yield Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2003 through October 31, 2004
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1.REPORTS TO SHAREOWNERS.
PIONEER
-----------------------
GLOBAL
HIGH YIELD
FUND
Annual
Report
10/31/04
[LOGO] PIONEER
INVESTMENTS(R)
Table of Contents
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Letter to Shareowners 1
Portfolio Summary 2
Performance Update 3
Comparing Ongoing Fund Expenses 6
Portfolio Management Discussion 8
Schedule of Investments 11
Financial Statements 20
Notes to Financial Statements 27
Report of Independent Registered Public Accounting Firm 34
The Pioneer Family of Mutual Funds 35
Trustees, Officers and Service Providers 36
Pioneer Global High Yield Fund
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LETTER TO SHAREOWNERS 10/31/04
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Dear Shareowner,
- --------------------------------------------------------------------------------
High energy prices and rising interest rates caused concern among investors
during the third quarter of 2004. As oil prices touched $50 per barrel for the
first time, many consumers, faced with high priced gasoline and anticipating a
winter of hefty heating bills, responded by holding back on spending. Consumers
account for the bulk of the nation's economic activity, and retail sales over
the summer were erratic. Beyond soaring energy costs, which have the effect of a
tax increase on individuals and businesses, the slack job creation data of the
last few months also undermined confidence in the economic outlook. The markets
in general fell during the third quarter. Continued unsettled conditions in Iraq
and the ever present specter of terrorism also weighed on investors' minds.
Overseas, global markets were fairly stable, after stumbling earlier in the
year.
But the fuzzy economic picture was good news for bond investors. Despite three
hikes in short-term interest rates, the first increases in four years, bond
prices rose and yields fell over the period. Longer-term Treasury securities
were the strongest performers, with corporate bonds, including high-yield
issues, also delivering favorable returns. Lower long-term rates were also
beneficial to the housing and mortgage industries. Behind the rally in bonds
lies investor skepticism about the strength and durability of the current
economic recovery. A slowing recovery leading to an easing of inflationary
pressures may convince the Federal Reserve Board to slow the pace of future rate
increases. Less inflation would also mean better real returns for bond holders.
Pioneer believes that the economy will continue to expand in 2005, but at a more
measured tempo. After an extended period of cutting costs and bolstering balance
sheets, many corporations are financially stronger than they have been in some
time. And although short-term interest rates have risen, they are still
relatively low and do not appear to be a barrier for companies needing to borrow
for expansion. Equity valuations now appear better aligned with earnings
prospects than was the case a year ago, when prices ran ahead of profit
expectations. Therefore, steady but moderate expansion in corporate profits has
the potential to drive stock prices higher.
A one-step approach to portfolio allocation
Building and maintaining a long-term strategy for your portfolio means deciding
on an appropriate mix of investments, then adjusting the weightings as time
passes and your goals change. The Pioneer Ibbotson Asset Allocation Series is a
family of three portfolios - moderate, growth and aggressive - each comprising a
select group of Pioneer funds. Ibbotson Associates, a leading authority on
investing and asset allocation, diversifies, reallocates and automatically
rebalances the portfolios periodically. By rebalancing the portfolio as rates of
return on stocks, bonds and other investments vary, Ibbotson seeks to manage
risk and to keep your holdings in line with the Fund's stated goals.
Please consider a fund's investment objective, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about each fund and should be read carefully before you invest or send money. To
obtain a prospectus and for other information on any Pioneer fund, contact your
financial advisor, call 1-800-225-6292 or visit our web site at
www.pioneerfunds.com.
Respectfully,
/s/ Osbert M. Hood
Osbert M. Hood, President
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
1
Pioneer Global High Yield Fund
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PORTFOLIO SUMMARY 10/31/04
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[TABULAR REPRESENTATION OF PIE CHART]
U.S. Corporate Bonds 88.3%
Foreign Government Bonds 4.8%
Temporary Cash Investment 3.8%
Municipal Bonds 3.1%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of total long-term holdings)
1. Ormat Funding Corp., 8.25%, 12/30/20 2.92%
2. Kvaerner A.S., 0.0%, 10/30/11 2.82
3. NTL Cable Plc, 8.75%, 4/15/14 (144A) 2.37
4. United Rentals North America, Inc., 7.75%, 11/15/13 1.98
5. Tele Norte Leste Participacoes SA, 8.0%, 12/18/13 1.96
6. Halyk Savings Bank, 8.125%, 10/7/09 (144A) 1.90
7. Invista, 9.25%, 5/1/12 (144A) 1.85
8. Gaz Capital SA, 8.625%, 4/28/34 (144A) 1.80
9. Shaw Group, Inc., 10.75%, 3/15/10 1.78
10. Ship Finance International, Ltd., 8.5%, 12/15/13 1.69
This list excludes money market and derivative investments. The portfolio is
actively managed, and current holdings may be different.
2
Pioneer Global High Yield Fund
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PERFORMANCE UPDATE 10/31/04 CLASS A SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
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Net Asset Value
per Share 10/31/04 10/31/03
$11.79 $11.31
Net
Distributions per Share Investment Short-Term Long-Term
(11/1/03 - 10/31/04) Income Capital Gains Capital Gains
$0.8938 $ - $0.2074
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund at public offering price,
compared to that of the Merrill Lynch (ML) Global High Yield & Emerging Markets
Plus Index.
Average Annual Total Returns
(As of October 31, 2004)
Net Asset Public Offering
Period Value Price (POP)
Life-of-Class
(8/27/01) 16.24% 14.57%
1 Year 14.82 9.68
[TABULAR REPRESENTATION OF MOUNTAIN CHART]
ML Global
Pioneer High Yield &
Global Emerging
High Yield Markets Plus
Fund Index
8/01 $9,550 $10,000
$9,244 $9,591
10/02 $9,272 $9,430
$13,499 $12,702
10/04 $15,499 $14,462
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
POP returns reflect deduction of maximum 4.5% sales charge. 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 and can be rescinded at any time. See the
prospectus and financial statements for complete details.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Fund's investment advisor, Pioneer Investment Management, Inc., reduced its
management fee and subsidized other Fund expenses; otherwise, returns would have
been lower.
Index comparison begins on August 31 2001. The ML Global High Yield & Emerging
Markets Plus Index tracks the performance of the below- and border-line
investment-grade global debt markets denominated in the major developed market
currencies. The Index includes sovereign issuers rated BBB1 and lower along with
corporate issuers rated BB1 and lower. There are no restrictions on issuer
country of domicile. However, the bonds must be publicly issued in a developed
market (i.e., investment-grade country). Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. You cannot invest directly in the Index.
3
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 10/31/04 CLASS B SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 10/31/04 12/1/03
$11.76 $11.47
Net
Distributions per Share Investment Short-Term Long-Term
(12/1/03 - 10/31/04) Income Capital Gains Capital Gains
$0.8098 $ - $0.2074
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund, compared to that of the
Merrill Lynch (ML) Global High Yield & Emerging Markets Plus Index.
Average Annual Total Returns
(As of October 31, 2004)
If If
Period Held Redeemed
Life-of-Class
(12/1/03) 12.12% 8.12%
Value of $10,000 Investment
[TABULAR REPRESENTATION OF MOUNTAIN CHART]
ML Global
Pioneer High Yield &
Global Emerging
High Yield Markets Plus
Fund Index
11/03 $10,000 $10,000
10/04 $11,146 $11,192
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If redeemed" returns reflect deduction of applicable contingent deferred sales
charge (CDSC). The maximum CDSC is 4% and declines over six years. 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 and can be rescinded at any time. See the
prospectus and financial statements for complete details.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
During the period, the investment advisor waived or reimbursed certain expenses.
Without this waiver, returns would have been lower.
Index comparison begins November 30, 2003. The ML Global High Yield & Emerging
Markets Plus Index tracks the performance of the below- and border-line
investment-grade global debt markets denominated in the major developed market
currencies. The Index includes sovereign issuers rated BBB1 and lower along with
corporate issuers rated BB1 and lower. There are no restrictions on issuer
country of domicile. However, the bonds must be publicly issued in a developed
market (i.e., investment-grade country). Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. You cannot invest directly in the Index.
4
Pioneer Global High Yield Fund
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PERFORMANCE UPDATE 10/31/04 CLASS C SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 10/31/04 12/1/03
$11.74 $11.47
Net
Distributions per Share Investment Short-Term Long-Term
(12/1/03 - 10/31/04) Income Capital Gains Capital Gains
$0.7582 $ - $0.2074
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund, compared to that of the
Merrill Lynch (ML) Global High Yield & Emerging Markets Plus Index.
Average Annual Total Returns
(As of October 31, 2004)
If If
Period Held Redeemed
Life-of-Class
(12/1/03) 11.45% 10.45%
Value of $10,000 Investment
[TABULAR REPRESENTATION OF MOUNTAIN CHART]
ML Global
Pioneer High Yield &
Global Emerging
High Yield Markets Plus
Fund Index
11/03 $10,000 $10,000
10/04 $11,079 $11,192
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. 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 and can be rescinded at any time. See the
prospectus and financial statements for complete details.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
During the period, the investment advisor waived or reimbursed certain expenses.
Without this waiver, returns would have been lower.
Index comparison begins November 30, 2003. The ML Global High Yield & Emerging
Markets Plus Index tracks the performance of the below- and border-line
investment-grade global debt markets denominated in the major developed market
currencies. The Index includes sovereign issuers rated BBB1 and lower along with
corporate issuers rated BB1 and lower. There are no restrictions on issuer
country of domicile. However, the bonds must be publicly issued in a developed
market (i.e., investment-grade country). Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. You cannot invest directly in the Index.
5
Pioneer Global High Yield Fund
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COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments and
redemption fees.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global High Yield Fund
Based on actual returns from May 1, 2004 through October 31, 2004
Share Class A B C
- --------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
On 5/1/04
Ending Account Value $1,088.75 $1,084.54 $1,084.99
On 10/31/04
Expenses Paid During Period* $ 3.92 $ 7.96 $ 7.85
* Expenses are equal to the Fund's annualized expense ratio of 0.75%, 1.52%,
and 1.50%, for Class A, Class B and Class C shares, respectively, multiplied
by the average account value over the period, multiplied by 184/366 (to
reflect the one-half year period).
6
Pioneer Global High Yield Fund
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Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads), or redemption fees. Therefore, the table below is useful in
comparing ongoing costs only and will not help you determine the relative total
costs of owning different funds. In addition, if these transaction costs were
included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global High Yield Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2004 through October 31, 2004
Share Class A B C
- --------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
On 5/1/04
Ending Account Value $1,021.37 $1,017.19 $1,017.55
On 10/31/04
Expenses Paid During Period* $ 3.80 $ 7.70 $ 7.60
* Expenses are equal to the Fund's annualized expense ratio of 0.75%, 1.52%,
and 1.50%, for Class A, Class B and Class C shares, respectively, multiplied
by the average account value over the period, multiplied by 184/366 (to
reflect the one-half year period).
7
Pioneer Global High Yield Fund
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PORTFOLIO MANAGEMENT DISCUSSION 10/31/04
- --------------------------------------------------------------------------------
Buoyed by a strengthening global economy, high-yield corporate bonds in North
America and Europe outperformed high-grade securities during the 12-months ended
October 31, 2004. After suffering a correction early in the period, emerging
market debt also regained strength to deliver strong performance also. Over the
12 months, the U.S. dollar fell in value, helping to support the performance of
foreign-denominated investments. In the following discussion, Andrew D. Feltus,
CFA, who is responsible for the day-to-day management of Pioneer Global High
Yield Fund, provides an update on the Fund, its investment strategies and the
investment environment during the 12 months.
Q: How did the Fund perform?
A: The Fund performed very well, outperforming its benchmarks, as well as its
competitive fund average. For the 12 months ended October 31, 2004, the
Fund's Class A shares had a total return of 14.82% at net asset value.
During the same 12 months, the Merrill Lynch Global High Yield and Emerging
Markets Plus Index returned 13.67%, while the Merrill Lynch High Yield
Master II Index, a benchmark for the domestic high-yield bond market, had a
return of 12.19%. For the fiscal year, the average return of the 97
competitive funds in the Lipper Global Income Fund category was 8.81%.
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 Fund also continued to deliver good income. The 30-day SEC yield for
Class A shares on October 31, 2004, was 6.42%. This yield reflects the
waiver of certain expenses by the investment advisor; without the waiver,
the 30-day SEC yield for Class A shares would have been 5.73%.
Q: What were the principal factors affecting performance?
A: We had a favorable environment for high-yield bonds as economies throughout
the world expanded, helped by the accommodative policies of the major
central banks, including the U.S. Federal Reserve, which kept short-term
lending rates low. Within the United States, strong consumer spending drove
the economic rebound early in the period. However, steady improvement in
capital spending became the dominant force as the fiscal year progressed and
corporations began rebuilding depleted inventories and investing for
expansion. Gross domestic product in the United States grew at a healthy
rate of 4.9% during 2003 and annualized rates of 4.5% and 3.3% during the
first two quarters of 2004.
8
Pioneer Global High Yield Fund
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Elsewhere, strong growth in China helped stimulate other Asian economies.
Emerging markets in regions such as Latin America also benefited, as
rising demand lifted the prices of the raw materials that they exported.
The prices of commodities such as oil, iron ore and copper all rose
sharply. European economies also expanded, but not at the rates of the
United States, Asia and Latin America. The U.S. currency depreciated
against other major currencies during the fiscal year, helping the
performance realized by U.S.-based investors in bonds denominated in many
foreign currencies. The euro, for example, gained about 10.4% against the
U.S. dollar during the period.
Our decisions to emphasize foreign currencies and to add to our
emerging-market investments in the final months of the fiscal year both
helped performance. In the beginning of 2004, we reduced our investments
in dollar-denominated securities as we saw improving opportunities outside
the U.S. We concentrated our investments in bonds denominated in the euro
and euro-linked currencies such as the Swedish kroner and the Norwegian
kroner.
Early in 2004, we reduced our investments in emerging market debt from
about 40% of Fund assets to about 15%, taking profits following the strong
rally of the previous year. This helped protect the Fund against the full
impact of the slump in emerging market bonds during the first five months
of 2004. However, we took advantage of the attractive values created by
that slump, and we rebuilt our position in the emerging markets, bringing
our investments in the sector back up to about 30% of Fund assets. This
also helped support performance as emerging market bonds again started to
appreciate in value.
Q: What were some of the investments that helped support performance?
A: Bonds of Kvaerner, a Norwegian engineering, construction and ship-building
company, were strong contributors. Our focus on the more cyclical industries
within the high-yield bond market also helped substantially. Securities
issued by chemical companies Lyondell, Celanese (BCP Caylux Holdings), and
Huntsman International, all added to returns. We also were successful in
several steel companies, such as Ispat Inland. Bonds issued by emerging
market materials companies, such as CSN and Vale Overseas (CRVD), both of
Brazil, also posted strong gains.
Several investments in financial services industry bonds also helped
performance, as they benefited from the strengthening economy. Leading
performers included Dollar Financial Group, Refco Financial Holdings and
Allmerica.
9
Pioneer Global High Yield Fund
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PORTFOLIO MANAGEMENT DISCUSSION 10/31/04 (continued)
- --------------------------------------------------------------------------------
Q: What were some of the investments that detracted from performance?
A: Our airline holdings were disappointing. We invested in airline industry
bonds because of their potential to do well in an improving economy,
particularly after many companies had restructured themselves. While
business tended to increase, airlines had difficulty absorbing rapidly
rising fuel costs, and their bonds tended to perform poorly. We had invested
in bonds issued by American Airlines, Continental and Northwest.
Another disappointment was the investment in Primus Telecommunications, an
alternative long-distance provider that was hurt by the intense price
competition in the industry.
Q: What is your investment outlook?
A: We expect economies around the world to remain strong, although growth in
2005 may not be as strong as in 2004. Growth in gross domestic product (GDP)
may be between 2.5% and 3.0% in the United States, and somewhat greater in
foreign economies, especially in the emerging markets. In this environment,
we anticipate that high-yield securities should continue to outperform
high-grade securities, although we may not see the significant price
appreciation of the past two years. We also anticipate that the U.S. dollar
may continue to weaken, although not by as much as during the past year.
This should be a good environment for the high-yield bond market. Overall,
we think high-yield bonds have the potential to produce returns in line
with their yields, with the possibility of some price gains among selected
securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions
Investments in high yield or lower-rated securities are subject to
greater-than-average risk. When interest rates rise, the prices of fixed income
securities in the fund will generally fall. Conversely, when interest rates fall
the prices of fixed income securities in the fund will generally rise. Because
the portfolio invests in a limited number of companies a change in one
security's value may have a more significant effect on the portfolio's value.
Investments in the fund are subject to possible loss due to the financial
failure of underlying securities and their inability to meet their debt
obligations.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
10
Pioneer Global High Yield Fund
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SCHEDULE OF INVESTMENTS 10/31/04
- --------------------------------------------------------------------------------
Principal
Amount Value
CONVERTIBLE CORPORATE BONDS - 0.0%
Pharmaceuticals & Biotechnology - 0.0%
Biotechnology - 0.0%
$ 10,000 Cubist Pharmaceuticals, 5.5%, 11/1/08 $ 9,225
------------
Total Pharmaceuticals & Biotechnology $ 9,225
------------
Semiconductors - 0.0%
10,000 Triquint Semiconductor, 4.0%, 3/1/07 $ 9,638
------------
Total Semiconductors $ 9,638
------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $15,817) $ 18,863
------------
CORPORATE BONDS - 89.7%
Energy - 6.0%
Oil & Gas Drilling - 0.2%
60,000 Baytex Energy, 9.625%, 7/15/10 (144A) $ 65,100
325,000 Parker Drilling Co., 9.625%, 10/1/13 361,563
------------
$ 426,663
------------
Oil & Gas Equipment And Services - 0.9%
1,500,000 Seabulk International, Inc., 9.5%, 8/15/13 $ 1,597,500
------------
Oil & Gas Exploration & Production - 4.7%
2,600,000 Baytex Energy, Ltd., 9.625%, 7/15/10 $ 2,821,000
15,000 Energy Partners, Ltd., 8.75%, 8/1/10 16,275
2,900,000 Gaz Capital SA, 8.625%, 4/28/34 (144A) 3,226,250
500,000 Paramount Resources, Ltd., 7.875%, 11/1/10 550,000
1,300,000 Paramount Resources, Ltd., 8.875%, 7/15/14 1,498,250
500,000 Petro Stopping, 9.0%, 2/15/12 535,000
------------
$ 8,646,775
------------
Oil & Gas Refining Marketing & Transportation - 0.2%
300,000 Markwest Energy Partners, 6.875%, 11/1/14 (144A) $ 306,000
------------
Total Energy $ 10,976,938
------------
Materials - 16.5%
Aluminum - 0.2%
595,000 Imco Recycling Escrow, 9.0%, 11/15/14 (144A) $ 611,938
------------
Commodity Chemicals - 0.3%
515,000 Arco Chemical Co., 9.8%, 2/1/20 $ 571,650
------------
Construction Materials - 2.8%
43,678,200 Kvaerner AS, 0.0%, 10/30/11 (d) $ 5,036,235
------------
The accompanying notes are an integral part of these financial statements. 11
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/04 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
Diversified Chemical - 0.8%
$ 1,095,000 Huntsman ICI Chemicals LLC, 10.125%, 7/1/09 $ 1,470,186
-----------
Diversified Metals & Mining - 1.3%
900,000 Freeport-McMoran Copper & Gold, 6.875%, 2/1/09 $ 877,500
25,000 Freeport-McMoran Copper & Gold, 10.125%, 2/1/10 28,063
1,600,000 Vale Overseas, Ltd., 8.25%, 1/17/34 1,564,000
-----------
$ 2,469,563
-----------
Forest Products - 1.6%
2,750,000 Sino Forest Corp., 9.125%, 8/17/11 (144A) $ 2,853,125
-----------
Metal & Glass Containers - 1.1%
10,000 Crown Holdings, 10.25%, 3/1/11 $ 14,641
2,000,000 Vitro Envases Norteamrca, 10.75%, 7/23/11 (144A) 1,980,000
-----------
$ 1,994,641
-----------
Paper Products - 0.1%
200,000 Graham Packaging Co., 9.875%, 10/15/14 (144A) $ 212,000
-----------
Specialty Chemicals - 5.5%
1,600,000 Basell Finance Co., 8.1%, 3/15/27 (144A) $ 1,391,990
1,972,000 Braskem SA, 11.75%, 1/22/14 2,198,780
1,650,000 OM Group, Inc., 9.25%, 12/15/11 1,726,313
2,700,000 Resolution Performance Products, 13.5%, 11/15/10 (c) 2,673,000
1,545,000 Rhodia SA, 9.25%, 6/1/11 1,837,301
-----------
$ 9,827,384
-----------
Steel - 2.8%
2,010,000 CSN Islands VIII Corp., 9.75%, 12/16/13 (144A) $ 2,040,150
2,440,000 CSN Islands IX Corp., 10.0%, 1/15/15 (144A) 2,479,650
500,000 Ispat Inland ULC, 0.0%, 4/1/10 548,750
-----------
$ 5,068,550
-----------
Total Materials $30,115,272
-----------
Capital Goods - 8.7%
Aerospace & Defense - 1.3%
2,250,000 Hawk Corp., 8.75%, 11/1/14 (144A) $ 2,311,875
-----------
Building Products - 0.1%
150,000 US Concrete, Inc., 8.375%, 4/1/14 $ 160,313
-----------
Construction, Farm Machinery & Heavy Trucks - 0.0%
20,000 Hines Nurseries, Inc., 10.25%, 10/1/11 $ 21,400
-----------
12 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
Construction & Engineering - 2.2%
$ 1,115,000 North American Energy Partners, 8.75%, 12/1/11 (144A) $ 1,078,763
2,975,000 Shaw Group, Inc., 10.75%, 3/15/10 (c) 3,175,813
------------
$ 4,254,576
------------
Heavy Electrical Equipment - 2.9%
5,248,017 Ormat Funding Corp., 8.25%, 12/30/20 $ 5,221,777
------------
Industrial Machinery - 2.2%
1,900,000 Dresser-Rand Group, Inc., 7.375%, 11/1/14 (144A) $ 1,990,250
2,000,000 Sun Sage BV, 8.25%, 3/26/09 (144A) 2,050,000
------------
$ 4,040,250
------------
Total Capital Goods $ 16,010,191
------------
Commercial Services & Supplies - 5.6%
Commercial Printing - 0.4%
600,000 Sheridan Group, 10.25%, 8/15/11 (144A) $ 651,000
------------
Diversified Commercial Services - 2.8%
1,500,000 Cornell Companies, Inc., 10.75%, 7/1/12 $ 1,563,750
3,650,000 United Rentals NA, Inc., 7.75%, 11/15/13 (c) 3,531,375
------------
$ 5,095,125
------------
Environmental Services - 2.4%
1,800,000 Clean Harbors, Inc., 11.25%, 7/15/12 (144A) $ 1,926,000
20,000 IESI Corp., 10.25%, 6/15/12 21,600
2,800,000 Waste Services, Inc., 9.5%, 4/15/14 (144A) 2,632,000
------------
$ 4,579,600
------------
Total Commercial Services & Supplies $ 10,325,725
------------
Transportation - 7.0%
Airlines - 4.1%
3,158,000 AMR Corp., 9.0%, 9/15/16 (c) $ 1,831,640
275,000 AMR Corp., 9.8%, 10/1/21 151,250
310,000 AMR Corp., 9.0%, 8/1/12 189,100
3,905,000 Continental Air, Inc., 7.568%, 12/1/06 2,791,060
250,000 Northwest Airlines, Inc., 7.875%, 3/15/08 (c) 167,500
3,500,000 Northwest Airlines, Inc., 10.0%, 2/1/09 (c) 2,397,500
------------
$ 7,528,050
------------
Marine - 1.8%
250,000 Horizon Lines LLC., 9.0%, 11/1/12 (144A) $ 270,313
2,975,000 Ship Finance International, Ltd., 8.5%, 12/15/13 3,019,625
------------
$ 3,289,938
------------
The accompanying notes are an integral part of these financial statements. 13
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/04 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
Railroads - 1.1%
$ 2,000,000 Atlantic Express Transport, 12.0%, 4/15/08 $ 1,982,500
------------
Total Transportation $ 12,800,488
------------
Consumer Durables & Apparel - 2.5%
Apparel, Accessories & Luxury Goods - 0.7%
2,000,000 Jostens, Inc, 0.0%, 12/1/13 (d) $ 1,395,000
------------
Textiles - 1.8%
3,000,000 Invista, 9.25%, 5/1/12 (144A) $ 3,300,000
------------
Total Consumer Durables & Apparel $ 4,695,000
------------
Hotels, Restaurants & Leisure - 1.0%
Casinos & Gaming - 0.8%
500,000 Pinnacle Entertainment, 8.25%, 3/15/12 $ 516,250
765,000 Pinnacle Entertainment, 8.75%, 10/1/13 812,813
------------
$ 1,329,063
------------
Hotels, Resorts & Cruise Lines - 0.2%
400,000 Grupo Posadas Sa De CV, 8.75%, 10/4/11 (144A) $ 410,000
------------
Total Hotels, Restaurants & Leisure $ 1,739,063
------------
Media - 2.3%
Broadcasting & Cable TV - 2.3%
100,000 Atlantic Broadband Finance LLC, 9.375%, 1/15/14 $ 93,625
1,060,000 Kabel Deutschland GMBH, 10.625%, 7/1/14 1,187,200
2,000,000 Kabel Deutschland, 10.75%, 7/1/14 (144A) 2,889,863
------------
$ 4,170,688
------------
Total Media $ 4,170,688
------------
Retailing - 0.3%
Specialty Stores - 0.3%
590,000 Asbury Automotive Group, 8.0%, 3/15/14 $ 575,250
------------
Total Retailing $ 575,250
------------
Food & Drug Retailing - 4.0%
Drug Retail - 1.3%
2,550,000 Duane Reade, Inc., 9.75%, 8/1/11 (144A) $ 2,448,000
------------
Food Distributors - 2.7%
2,250,000 Doane Pet Care Co., 9.75%, 5/15/07 $ 2,238,750
2,420,000 Wornick Co., 10.875%, 7/15/11 2,613,600
------------
$ 4,852,350
------------
Total Food & Drug Retailing $ 7,300,350
------------
14 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
Food, Beverage & Tobacco - 0.1%
Brewers - 0.1%
$ 120,000 Cia Brasileira De Bebida, 8.75%, 9/15/13 (144A) $ 136,200
------------
Total Food, Beverage & Tobacco $ 136,200
------------
Household & Personal Products - 0.7%
Household Products - 0.7%
1,235,000 Solo Cup Co., 8.5%, 2/15/14 $ 1,213,388
------------
Total Household & Personal Products $ 1,213,388
------------
Health Care Equipment & Services - 3.6%
Health Care Equipment - 1.2%
2,250,000 Hanger Orthopedic Group, 10.375%, 2/15/09 (c) $ 2,261,250
------------
Health Care Facilities - 1.8%
1,515,000 Ardent Health Systems, 10.0%, 8/15/13 $ 1,549,088
2,000,000 Curative Health Services, 10.75%, 5/1/11 1,780,000
------------
$ 3,329,088
------------
Health Care Services - 0.6%
15,000 NDC Health Corp., 10.5%, 12/1/12 $ 15,900
1,000,000 Team Health, Inc., 9.0%, 4/1/12 (144A) 990,000
------------
$ 1,005,900
------------
Total Health Care Equipment & Services $ 6,596,238
------------
Banks - 2.6%
Diversified Banks - 2.6%
1,250,000 Citigroup (CJSC Russian) 8.75%, 4/14/07 $ 1,276,375
3,300,000 Halyk Savings Bk Kazaktn, 8.125%, 10/7/09 (144A) 3,390,750
------------
Total Banks $ 4,667,125
------------
Diversified Financials - 9.2%
Diversified Financials - 0.8%
1,315,000 Sheridan Group, 10.25%, 8/15/11 $ 1,426,775
------------
Investment Banking & Brokerage - 3.7%
1,400,000 BCP Caylux Holding Lux Sca., 10.375%, 6/15/14, (144A) $ 2,009,478
800,000 BCP Caylux Holding Lux Sca., 9.625%, 6/15/14, (144A) 896,000
1,475,000 Refco Financial Holdings, 9.0%, 8/1/12 (144A) 1,593,000
2,100,000 Sistema Finance SA, 10.25%, 4/14/08 2,250,213
------------
$ 6,748,691
------------
Diversified Financial Services - 4.3%
908,000 Alamosa Delaware, Inc., 0.0%, 7/31/09 (d) $ 967,020
1,500,000 Aries Vermogensverwaltng, 9.6%, 10/25/14 (144A) 1,751,250
2,360,000 Dollar Financial Group, 9.75%, 11/15/11 2,519,300
2,500,000 Glencore Funding LLC, 6.0%, 4/15/14 (144A) 2,373,430
The accompanying notes are an integral part of these financial statements. 15
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/04 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
Diversified Financial Services (continued)
$ 10,000 MDP Acquisitions Plc., 10.125%, 10/1/12 (144A) $ 14,513
750,000 Tabletop Holdings, Inc., 12.25%, 5/15/14 (144A) 405,000
------------
$ 8,030,513
------------
Specialized Finance - 0.3%
520,000 UGS Corp., 10.0%, 6/1/12 (144A) 582,400
------------
Total Diversified Financials $ 16,788,379
------------
Insurance - 2.4%
Life & Health Insurance - 1.0%
1,730,000 Presidential Life Corp., 7.875%, 2/15/09 $ 1,730,000
------------
Multi-Line Insurance - 0.3%
600,000 Allmerica Financial Corp., 7.625%, 10/15/25 $ 613,774
------------
Property & Casualty Insurance - 1.1%
2,000,000 Kingsway America, Inc., 7.5%, 2/1/14 $ 2,072,136
------------
Total Insurance $ 4,415,910
------------
Real Estate - 0.0%
Real Estate Investment Trust - 0.0%
10,000 Meristar Hospitality Operations Finance Corp.,
10.5%, 6/15/09 $ 11,000
------------
Total Real Estate $ 11,000
------------
Software & Services - 1.8%
Application Software - 1.6%
2,250,000 Riverdeep Group, Ltd., 9.25%, 4/15/11 (144A) $ 2,992,159
------------
IT Consulting & Other Services - 0.2%
320,000 Stratus Technologies, Inc., 10.375% 12/1/08 $ 272,000
------------
Total Software & Services $ 3,264,159
------------
Technology Hardware & Equipment - 1.2%
Communications Equipment - 1.1%
2,500,000 Eschelon Operating Co., 8.375%, 3/15/10 $ 2,000,000
------------
Electronic Equipment & Instruments - 0.0%
15,000 General Cable Corp., 9.5%, 11/15/10 $ 16,950
------------
Office Electronics - 0.1%
100,000 Xerox Corp., 8.0%, 2/1/27 $ 100,000
------------
Total Technology Hardware & Equipment $ 2,116,950
------------
Telecommunication Services - 12.7%
Integrated Telecommunication Services - 6.4%
1,660,000 Innova S De R.L., 9.375%, 9/19/13 $ 1,846,750
3,150,000 NTL Cable Plc, 8.75%, 4/15/14 (144A) 4,229,302
16 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
Integrated Telecommunication Services (continued)
$1,500,000 Primus Telecommunication Group, 8.0%, 1/15/14 $ 1,076,250
3,530,000 Tele Norte Leste Participacoes SA, 8.0%,
12/18/13 (144A) 3,494,700
1,050,000 TSI Telecommunication Services, 12.75%, 2/1/09 1,176,000
------------
$ 11,823,002
------------
Wireless Telecommunications Services - 6.3%
400,000 Airgate PCS, Inc., 5.85% Floating Rate, 10/15/11 (144A) $ 410,000
350,000 Horizon PCS, Inc., 11.375%, 7/15/12 (144A) 371,000
2,115,000 MetroPCS, Inc., 10.75%, 10/1/11 (144A) 2,199,600
1,730,000 Mobifon Holdings, 12.5%, 7/31/10 (144A) 2,050,050
889,000 Mobile Telesystems Finance, 8.375%, 10/14/10 (144A) 909,003
10,000 Rogers Cantel, Inc., 10.5%, 6/1/06 8,737
2,535,000 Ubiquitel Operating Co., 9.875%, 3/1/11 2,744,138
1,750,000 UBS Vimpelcom, 10.0%, 6/16/09 (144A) 1,903,125
900,000 UBS Vimpelcom, 8.375%, 10/22/11 (144A) 906,750
------------
$ 11,502,403
------------
Total Telecommunication Services $ 23,325,405
------------
Utilities - 1.5%
Electric Utilities - 1.0%
1,750,000 Alamosa Delaware, 8.5%, 1/31/12 $ 1,855,000
------------
Multi-Utilities & Unregulated Power - 0.5%
850,000 Reliant Energy, Inc., 9.5%, 7/15/13 $ 956,250
------------
Total Utilities $ 2,811,250
------------
TOTAL CORPORATE BONDS
(Cost $159,683,862) $164,054,969
------------
FOREIGN GOVERNMENT BONDS - 4.8%
ITL 2,100,000,000 Banco Nac De Desen Econo, 8.0%, 4/28/10 $ 1,373,011
25,000 Dominican Republic, 9.04%, 1/23/13 (144A) 20,281
1,400,000 Republic of Columbia, 8.25%, 12/22/14 1,400,000
398,264 Republic of Columbia, 9.75%, 4/9/11 459,994
750,000 Republic of Columbia, 10.75% 1/15/13 868,500
285,000 Republic of Ecuador, 8.0%, 8/15/30 (d) 238,688
2,000,000 Republic of Peru, 8.375%, 5/3/16 2,085,000
1,210,000 Republic of Peru, 9.875%, 2/6/15 1,400,575
1,000,000 Republic of Turkey, 7.25%, 3/15/15 1,000,000
20,000 Russia Regs., 5.0%, 3/31/30 (d) 20,000
------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $8,493,616) $ 8,866,049
------------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/04 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
MUNICIPAL BONDS - 3.2%
Government - 2.2%
$ 2,500,000 Badger Tobacco Asset Securitization Corp.,
6.375%, 6/1/32 $ 2,312,900
15,000 New Jersey Economic Development Authority Special
Facility Revenue, 7.0%, 11/15/30 11,842
1,000,000 Tobacco Settlement Financing Corp., 7.0%, 6/1/41 998,600
500,000 Tobacco Settlement Financing Corp., 6.125%, 6/1/32 457,020
------------
$ 3,780,362
------------
Municipal Development - 0.6%
1,250,000 Indiana State Development Finance, 5.75%, 10/1/11 $ 1,249,300
------------
Municipal Facilities - 0.1%
250,000 East Chicago Industry Exempt Facilities, 7.0%, 1/1/14 $ 261,064
------------
Municipal Pollution - 0.3%
500,000 Indiana State Development. Finanace Authority Pollution
Control, 7.25%, 11/1/11 $ 521,030
------------
TOTAL MUNICIPAL BONDS
(Cost $5,148,562) $ 5,811,756
------------
Shares TEMPORARY CASH INVESTMENT - 3.9%
Security Lending Collateral - 3.9%
7,100,666 Securities Lending Investment Fund, 1.76% $ 7,100,666
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $7,100,666) $ 7,100,666
------------
TOTAL INVESTMENT IN SECURITIES - 101.6%
(Cost $180,442,523) (a)(b) $185,852,303
------------
OTHER ASSETS AND LIABILITIES - (1.6)% $ (2,880,295)
------------
TOTAL NET ASSETS - 100% $182,972,008
------------
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, 2004, the
value of these securities amounted to $70,752,258 or 38.7% of total net
assets.
(a) At October 31, 2004, the net unrealized gain on investments based on cost
for federal income tax purposes of $180,443,511 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 7,872,192
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (2,463,400)
-----------
Net unrealized gain $ 5,408,792
-----------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(b) Distribution of investment by country of issue, as a percentage of total
investment in securities (excluding temporary cash investments), is as
follows:
United States 55.8%
Luxembourg 6.8
Canada 4.9
Brazil 4.0
Germany 4.0
Cayman Islands 3.4
Netherlands 3.1
Norway 2.9
Mexico 2.4
United Kingdom 2.4
Peru 1.9
Bermuda 1.7
Ireland 1.7
Columbia 1.5
France 1.0
Turkey 0.6
Ecuador 0.1
Kazakhstan 1.8
----
100.0%
-----
(c) At October 31, 2004, the following securities were out on loan:
Principal Market
Amount Description Value
$ 232,000 AMR Corp., 9.0%, 9/15/16 $ 134,560
187,000 Hanger Orthopedic Group, 10.375%, 2/15/09 187,935
150,000 Northwest Airlines, Inc., 7.875%, 3/15/08 100,500
250,000 Northwest Airlines, Inc., 10.0%, 2/1/09 171,250
562,500 Northwest Airlines, Inc., 9.875%, 3/15/07+ 336,686
1,874,500 Resolution Performance Products, 13.5%, 11/15/10 1,855,755
1,480,750 Shaw Group, Inc., 10.75%, 3/15/10 1,580,701
2,362,500 United Rentals NA, Inc., 7.75%, 11/15/13 2,285,719
----------
Total $6,653,106
----------
+ Indicates unsettled sale as of 10/31/04.
(d) Debt obligation initially issued at one coupon which converts to a higher
coupon at a specified date. The rate shown is the rate at period end.
NOTE: Principal amounts are denominated in U.S. dollars unless otherwise noted.
ITL Italian Lira
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 2004 aggregated $213,113,254 and $40,873,280,
respectively.
The accompanying notes are an integral part of these financial statements. 19
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 10/31/04
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (including securities loaned of
$6,653,106) (Cost $180,442,523) $ 185,852,303
Cash 4,040,793
Foreign currencies, at value (Cost $860,183) 864,013
Receivables -
Investment securities sold 2,812,373
Fund shares sold 8,219,695
Interest 3,802,391
-------------
Total assets $ 205,591,568
-------------
LIABILITIES:
Payables -
Investment securities purchased $ 14,628,513
Fund shares repurchased 127,105
Dividends 573,492
Upon return of securities loaned 7,100,666
Due to affiliates 126,493
Accrued expenses 63,291
-------------
Total liabilities $ 22,619,560
-------------
NET ASSETS:
Paid-in capital $ 177,578,482
Undistributed net investment income 76,261
Accumulated net realized loss on investments and foreign
currency transactions (82,339)
Net unrealized gain on investments 5,409,780
Net unrealized loss on other assets and liabilities
denominated in foreign currencies (10,176)
-------------
Total net assets $ 182,972,008
-------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $70,063,111/5,940,529 shares) $ 11.79
-------------
Class B (based on $20,408,086/1,735,094 shares) $ 11.76
-------------
Class C (based on $92,500,811/7,881,398 shares) $ 11.74
-------------
MAXIMUM OFFERING PRICE:
Class A ($11.79 [divided by] 95.5%) $ 12.35
-------------
20 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 10/31/04
INVESTMENT INCOME:
Interest $ 7,200,775
Income from securities loaned, net 3,705
-----------
Total investment income $ 7,204,480
------------
EXPENSES:
Management fees $ 573,073
Transfer agent fees and expenses
Class A 40,023
Class B 20,885
Class C 59,181
Distribution fees
Class A 74,600
Class B 98,796
Class C 421,480
Administrative reimbursements 23,343
Custodian fees 18,449
Registration fees 126,127
Professional fees 51,350
Printing expense 10,089
Fees and expenses of nonaffiliated trustees 5,355
Miscellaneous 5,442
-----------
Total expenses $ 1,528,193
Less management fees waived and expenses reim-
bursed by Pioneer Investment Management, Inc. (512,066)
Less fees paid indirectly (1,641)
------------
Net expenses $ 1,014,486
------------
Net investment income $ 6,189,994
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on:
Investments $ (104,468)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (40,726) $ (145,194)
----------- ------------
Change in net unrealized gain (loss) on:
Investments $ 5,342,835
Other assets and liabilities denominated in
foreign currencies (10,189) $ 5,332,646
----------- ------------
Net gain on investments and foreign currency transactions $ 5,187,452
------------
Net increase in net assets resulting from operations $ 11,377,446
------------
The accompanying notes are an integral part of these financial statements. 21
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 10/31/04 and 10/31/03, respectively
Year Ended Year Ended
10/31/04 10/31/03
FROM OPERATIONS:
Net investment income $ 6,189,994 $ 74,902
Net realized gain (loss) on investments and foreign
currency transactions (145,194) 55,038
Change in net unrealized gain (loss) on investments
and foreign currency transactions 5,332,646 151,106
------------- ----------
Net increase in net assets resulting
from operations $ 11,377,446 $ 281,046
------------- ----------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.89 and $1.00 per share, respectively) $ (2,348,993) $ (74,909)
Class B ($0.81 and $0.00 per share, respectively) (703,070) -
Class C ($0.76 and $0.00 per share, respectively) (3,014,693) -
Net realized gain:
Class A ($0.21 and $0.00 per share, respectively) (15,555) -
Class B ($0.21 and $0.00 per share, respectively) (18) -
Class C ($0.21 and $0.00 per share, respectively) (18) -
------------- ----------
Total distributions to shareowners $ (6,082,347) $ (74,909)
------------- ----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 187,814,852 $ -
Reinvestment of distributions 2,242,239 -
Cost of shares repurchased (13,228,162) -
------------- ----------
Net increase in net assets resulting from Fund
share transactions $ 176,828,929 $ -
------------- ----------
Net increase in net assets $ 182,124,028 $ 206,137
NET ASSETS:
Beginning of year 847,980 641,843
------------- ----------
End of year (including undistributed net investment
income of $76,261 and $15,883, respectively) $ 182,972,008 $ 847,980
------------- ----------
22 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For the Years Ended 10/31/04 and 10/31/03, respectively
'04 Shares '04 Amount '03 Shares '03 Amount
CLASS A
Shares sold 6,555,677 $ 74,330,596 75,000 $ 860,202
Reinvestment of distributions 77,768 885,202 - -
Less shares repurchased (767,916) (7,819,960) - -
--------- ------------ ------ ---------
Net increase 5,865,529 $ 67,395,838 75,000 $ 860,202
--------- ------------ ------ ---------
CLASS B*
Shares sold 1,824,415 $ 20,850,138
Reinvestment of distributions 21,373 242,401
Less shares repurchased (110,694) (1,251,239)
--------- ------------
Net increase 1,735,094 $ 19,841,300
--------- ------------
CLASS C**
Shares sold 8,154,427 $ 92,634,118
Reinvestment of distributions 98,280 1,114,636
Less shares repurchased (371,309) (4,156,963)
--------- ------------
Net increase 7,881,398 $ 89,591,791
--------- ------------
* Class B shares were first publicly offered on December 1, 2003.
** Class C shares were first publicly offered on December 1, 2003.
The accompanying notes are an integral part of these financial statements. 23
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended 8/27/01 to (a)
CLASS A 10/31/04 10/31/03 10/31/02 10/31/01
Net asset value, beginning of period $ 11.31 $ 8.56 $ 9.51 $ 10.00
-------- ------- ------- ------------
Increase (decrease) from investment operations:
Net investment income $ 0.69 $ 1.00 $ 1.02 $ 0.12
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 0.89 2.75 (0.95) (0.49)
-------- ------- ------- ------------
Net increase (decrease) from investment operations $ 1.58 $ 3.75 $ 0.07 $ (0.37)
Distributions to shareowners:
Net investment income (0.89) (1.00) (1.02) (0.12)
Net realized gain (0.21) - - -
-------- ------- ------- ------------
Net increase (decrease) in net asset value $ 0.48 $ 2.75 $ (0.95) $ (0.49)
-------- ------- ------- ------------
Net asset value, end of period $ 11.79 $ 11.31 $ 8.56 $ 9.51
-------- ------- ------- ------------
Total return* 14.82% 45.58% 0.31% (3.65)%
Ratio of net expenses to average net assets+ 0.75% 0.75% 0.75% 0.75%**
Ratio of net investment income to average net assets+ 8.02% 9.76% 10.79% 7.17%**
Portfolio turnover rate 50% 124% 47% 89%**
Net assets, end of period (in thousands) $ 70,063 $ 848 $ 642 $ 713
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.41% 14.37% 18.70% 30.55%**
Net investment income (loss) 7.36% (3.68)% (7.16)% (22.63)%**
Ratios with waiver of management fees by PIM and reduction
for fees paid indirectly:
Net expenses 0.75% 0.75% 0.75% 0.75%
Net investment income 8.02% 9.76% 10.79% 7.17%
(a) The Fund commenced operations on 8/27/01 and was first publicly offered on
December 1, 2003.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized
+ Ratios with no reduction for fees paid indirectly.
24 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
12/1/03 to (a)
10/31/04
CLASS B
Net asset value, beginning of period $ 11.47
-------
Increase from investment operations:
Net investment income $ 0.82
Net realized and unrealized gain on investments and foreign
currency transactions 0.49
-------
Net increase from investment operations $ 1.31
Distributions to shareowners:
Net investment income (0.81)
Net realized gain (0.21)
-------
Net increase in net asset value $ 0.29
-------
Net asset value, end of period $ 11.76
-------
Total return* 12.12%
Ratio of net expenses to average net assets+ 1.58%**
Ratio of net investment income to average net assets+ 7.26%**
Portfolio turnover rate 50%
Net assets, end of period (in thousands) $ 20,408
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.20%**
Net investment income 6.64%**
Ratios with waiver of management fees by PIM and reduction
for fees paid indirectly:
Net expenses 1.58%**
Net investment income 7.26%**
(a) Class B shares were first publicly offered on December 1, 2003.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 25
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
12/1/03 to (a)
10/31/04
CLASS C
Net asset value, beginning of period $ 11.47
-------
Increase from investment operations:
Net investment income $ 0.77
Net realized and unrealized gain on investments and foreign
currency transactions 0.47
-------
Net increase from investment operations $ 1.24
Distributions to shareowners:
Net investment income (0.76)
Net realized gain (0.21)
-------
Net increase in net asset value $ 0.27
-------
Net asset value, end of period $ 11.74
-------
Total return* 11.45%
Ratio of net expenses to average net assets+ 1.51%**
Ratio of net investment income to average net assets+ 7.30%**
Portfolio turnover rate 50%
Net assets, end of period (in thousands) $ 92,501
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.11%**
Net investment income 6.70%**
Ratios with waiver of management fees by PIM and reduction
for fees paid indirectly:
Net expenses 1.51%**
Net investment income 7.30%**
(a) Class C shares were first publicly offered on December 1, 2003.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
26 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/04
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Global High Yield Fund (the Fund), is a Delaware statutory trust,
registered under the Investment Company Act of 1940 as a non-diversified,
open-end management investment company. The Fund was organized on May 5, 2001
and commenced operations on August 27, 2001. Prior to August 27, 2001 the Fund
had no operations other than those relating to organizational matters and the
initial capitalization of the Fund by Pioneer Funds Distributor, Inc. (PFD). The
Fund's shares, including Class A Shares, were first publicly offered on December
1, 2003. Prior to December 1, 2003, the Fund shares outstanding were owned by
PFD. The investment objective of the Fund is to maximize total return through a
combination of income and capital appreciation.
The Fund offers three classes of shares - Class A, Class B, and Class C shares.
Shares of Class A, Class B, and Class C each represent an interest in the same
portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidation, except that each class of shares can
bear different transfer agent and distribution fees and have exclusive voting
rights with respect to the distribution plans that have been adopted by Class A,
Class B, and Class C shareowners, respectively.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting year.
Actual results could differ from those estimates. The following is a summary of
significant accounting policies followed by the Fund in the preparation of its
financial statements, which are consistent with those policies generally
accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities are valued at the last sale price on the
principal exchange where they are
27
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/04 (continued)
- --------------------------------------------------------------------------------
traded. Fixed income securities with remaining maturities of more than 60
days are valued at prices supplied by independent pricing services, which
consider such factors as Treasury spreads, yields, maturities and rating.
Valuations may be supplemented by dealers and other sources, as required.
Securities for which market quotations are not readily available are valued
at their fair values as determined by, or under the direction of the Board
of Trustees and may include yield equivalents or a pricing matrix. The Fund
also may use the fair value of a security, including a non-U.S. security,
when the closing market price on the principal exchange where the security
is traded no longer reflects the value of the security. As of October 31,
2004, there were no securities fair valued. Temporary cash investments are
valued at amortized cost.
Discounts and premiums on debt securities are accreted or amortized daily,
respectively, on a yield-to-maturity basis into interest income with a
corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis, net of unrecoverable
foreign taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
The Fund invests in below investment grade (high yield) debt securities and
preferred stocks. Some of these high yield securities may be convertible
into equity securities of the issuer. Debt securities rated below investment
grade are commonly referred to as "junk bonds" and are considered
speculative. These securities involve greater risk of loss, are subject to
greater price volatility, and are less liquid, especially during periods of
economic uncertainty or change, than higher rated debt securities. The Fund
is not diversified, which means that it can invest a higher percentage of
its assets in any one issuer than a diversified fund. Being non-diversified
may magnify the Fund's losses from adverse events affecting a particular
issuer.
The Fund's investments in foreign markets and countries with limited
developing markets may subject the Fund to a greater degree of risk than in
a developed market. These risks include disruptive political or economic
conditions and the imposition of adverse governmental laws or currency
exchange restrictions.
28
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollars actually received. Further,
the effects of changes in foreign currency exchange rates on investments are
not segregated in the statement of operations from the effects of changes in
market price of those securities but are included with the net realized and
unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a future
date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Fund's
financial statements. The Fund records realized gains and losses at the time
a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the
terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar. At October 31, 2004, the
Fund had no outstanding portfolio or settlement hedges.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
29
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/04 (continued)
- --------------------------------------------------------------------------------
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as either from or in excess
of net investment income or net realized gain on investment transactions, or
from paid-in capital, depending on the type of book/tax differences that may
exist.
At October 31, 2004, the Fund had a net capital loss carryforward of
$82,339, which will expire in 2012 if not utilized.
The tax character of distributions paid during the years ended October 31,
2004 and October 31, 2003 were as follows:
- --------------------------------------------------------------------------------
2004 2003
------------- ----------
Distributions paid from:
Ordinary income $6,066,756 $74,909
Long-term capital gain 15,591 -
Return of capital - -
---------- -------
Total $6,082,347 $74,909
---------- -------
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal income
tax basis at October 31, 2004:
- --------------------------------------------------------------------------------
2004
--------------
Undistributed ordinary income $ 77,249
Capital loss carryforward (82,339)
Unrealized appreciation 5,398,616
----------
Total $5,393,526
----------
- --------------------------------------------------------------------------------
The difference between book basis and tax basis unrealized appre ciation is
attributable to accrued interest on defaulted bonds.
At October 31, 2004, the Fund reclassified $62,860 to decrease undistributed net
investment income and $62,860 to decrease accumulated net realized loss on
investments and foreign currency transactions to reflect permanent book/tax
differences. The reclassification has no impact on the net assets of the Fund
and presents the Fund's capital accounts on a tax basis.
30
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. PFD,
the principal underwriter for the Fund and a wholly owned indirect
subsidiary of UniCredito Italiano S.p.A. (UniCredito Italiano), earned
$145,508 in underwriting commissions on the sale of Class A shares during
the year ended October 31, 2004.
F. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C of the Fund, respectively (see
Note 4). Shareowners of each class share all expenses and fees paid to the
transfer agent, Pioneer Investment Management Shareholder Services, Inc.
(PIMSS), for its services, which are allocated based on the number of
accounts in each class and the ratable allocation of related out-of-pocket
expenses (see Note 3). Income, common expenses and realized and unrealized
gains and losses are calculated at the Fund level and allocated daily to all
classes of shares based on their respective percentage of adjusted net
assets at the beginning of the day.
The Fund declares as daily dividends substantially all of its net investment
income. All dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B, and Class C shares can bear different transfer
agent and distribution fees.
G. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
payments in lieu of dividends on the securities loaned. Gain or loss on the
fair value of the loaned securities that may occur during the term of the
loan will be for the account of the Fund. The loans are secured by
collateral of at least 102%, at all
31
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/04 (continued)
- --------------------------------------------------------------------------------
times, of the fair value of the securities loaned. The amount of collateral
will be adjusted daily to reflect any price fluctuation in the value of the
loaned securities. The Fund has the right under the lending agreement to
recover the securities from the borrower on demand. The Fund invests cash
collateral in the Securities Lending Investment Fund, which is managed by
Brown Brothers Harriman & Co., the Fund's custodian.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary of
UniCredito Italiano, the Fund's investment adviser, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.70% of
the Fund's average daily net assets up to $500 million; 0.65% of the next $500
million; and 0.60% on the assets over $1 billion.
Through March 1, 2005, PIM has agreed not to impose all or a portion of its
management fee and to assume other operating expenses of the Fund to the extent
necessary to limit Class A expenses to 0.75% of the average daily net assets
attributable to Class A shares; the portion of Fund expenses attributable to
Class B and Class C shares will be reduced only to the extent such expenses are
reduced for Class A shares. PIM may subsequently recover reimbursed expenses
within three years of being incurred from the Fund, if the expense ratio of the
Class A shares is less than the expense limitation of the Class A shares. As of
October 31, 2004, PIM may recover up to $742,093 of previously waived and
reimbursed expenses from the Fund under the expense limitation agreement.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At October 31, 2004, $5,071 was payable to PIM
related to management fees, administrative costs and certain other services and
is included in due to affiliates.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in due to affiliates is $19,722 in transfer agent
fees payable to PIMSS at October 31, 2004.
32
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. Distribution and Service Plans
The Fund adopted Plans of Distribution with respect to each class of shares
(Class A Plan, Class B Plan, and Class C Plan) in accordance with Rule 12b-1 of
the Investment Company Act of 1940. Pursuant to the Class A Plan, the Fund pays
PFD a service fee of up to 0.25% of the average daily net assets attributable to
Class A shares in reimbursement of its actual expenditures to finance activities
primarily intended to result in the sale of Class A shares. Pursuant to the
Class B Plan and the Class C Plan, the Fund pays PFD 1.00% of the average daily
net assets attributable to each class of shares. The fee consists of a 0.25%
service fee and a 0.75% distribution fee paid as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class B and Class C shares. Included in due to affiliates is $101,700
in distribution fees payable to PFD at October 31, 2004.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). Effective February 1, 2004, a CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase (12 months for shares purchased prior to February
1, 2004). Class B shares that are redeemed within six years of purchase are
subject to a CDSC at declining rates beginning at 4.00%, based on the lower of
cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%. Proceeds from the
CDSCs are paid to PFD. The year ended October 31, 2004, CDSCs in the amount of
$35,796 were paid to PFD.
Effective March 2, 2004, the Fund charges a 2.0% redemption fee on Class A,
Class B, and Class C shares sold within 30 days of purchase. The fee does not
apply to certain types of transactions as described in the Fund's prospectus.
For the year ended October 31, 2004, the Fund collected $4,086 in redemption
fees, which are included in the Fund's capital account.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended October 31, 2004, the Fund's expenses
were reduced by $1,641 under such arrangements.
33
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer Global High Yield Fund:
We have audited the statement of assets and liabilities, including the schedule
of investments, of Pioneer Global High Yield Fund (the "Fund") as of October 31,
2004, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the three years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights for the period ended October 31, 2001 were
audited by other auditors who have ceased operations and whose report, dated
December 7, 2001, expressed an unqualified opinion on those financial
highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of October 31, 2004, by
correspondence with the custodian and brokers or by other appropriate auditing
procedures where replies from brokers were not received. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global High Yield Fund at October 31, 2004, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the three years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 10, 2004
34
THE PIONEER FAMILY OF MUTUAL FUNDS
Please consider a fund's investment objective, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about a fund and should be read carefully before you invest or send money. To
obtain a prospectus and for other information on any Pioneer fund, contact your
advisor, call 1-800-225-6292 or visit our web site at www.pioneerfunds.com.
U.S. Equity Asset Allocation
Pioneer Fund Pioneer Ibbotson Moderate
Pioneer Balanced Fund Allocation Fund
Pioneer Equity Income Fund Pioneer Ibbotson Growth
Pioneer Equity Opportunities Fund Allocation Fund
Pioneer Growth Shares Pioneer Ibbotson Aggressive
Pioneer Mid Cap Growth Fund Allocation Fund
Pioneer Mid Cap Value Fund
Pioneer Oak Ridge Large Cap International/Global Equity
Growth Fund Pioneer Emerging Markets Fund
Pioneer Oak Ridge Small Cap Pioneer Europe Select Fund
Growth Fund Pioneer Europe Fund
Pioneer Papp America-Pacific Pioneer International Equity Fund
Rim Fund Pioneer International Value Fund
Pioneer Papp Small and Mid Cap
Growth Fund Fixed Income
Pioneer Papp Stock Fund Pioneer America Income Trust
Pioneer Papp Strategic Pioneer Bond Fund
Growth Fund Pioneer Global High Yield Fund
Pioneer Real Estate Shares Pioneer High Yield Fund
Pioneer Research Fund* Pioneer Short Term Income Fund
Pioneer Small Cap Value Fund Pioneer Strategic Income Fund
Pioneer Small Company Fund Pioneer Tax Free Income Fund
Pioneer Value Fund
Money Market
Pioneer Cash Reserves Fund**
* Name change effective December 11, 2003. Formerly known as Pioneer Core
Equity Fund.
** An investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund.
35
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's affairs.
The officers of the Fund are responsible for the Fund's operations. The Fund's
Trustees and officers are listed below, together with their principal
occupations during the past five years. Trustees who are interested persons of
the Fund within the meaning of the Investment Company Act of 1940 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 65 U.S. registered investment portfolios for which
Pioneer Investment Management, Inc. ("Pioneer") serves as investment adviser
(the "Pioneer Funds"). The address for all Interested Trustees and all officers
of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Fund's statement of additional information provides more detailed
information regarding the Fund's Trustees and is available upon request, without
charge, by calling 1-800-225-6292.
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.pioneerfunds.com and on the SEC's website at http://www.sec.gov.
36
- -----------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES
- -----------------------------------------------------------------------------------------------------------------------------------
Positions Held Term of Office and Principal Occupation During Other Directorships Held
Name and Age With the Fund Length of Service Past Five Years by this Trustee
John F. Cogan, Jr. (78)* Chairman of the Board, Since 1999. Deputy Chairman and a Director Director of Harbor Global
Trustee and President Serves until of Pioneer Global Asset Company, Ltd.
retirement or Management S.p.A. ("PGAM");
removal Non-Executive Chairman and a
Director of Pioneer Investment
Management USA Inc.
("PIM-USA"); Chairman and a
Director of Pioneer; Director
of Pioneer Alternative
Investment Management Limited
(Dublin); President and a
Director of Pioneer
Alternative Investment
Management (Bermuda) Limited
and affiliated funds;
President and Director of
Pioneer Funds Distributor,
Inc. ("PFD"); President of all
of the Pioneer Funds; and Of
Counsel (since 2000, partner
prior to 2000), Wilmer Cutler
Pickering Hale and Dorr LLP
(counsel to PIM-USA and the
Pioneer Funds)
*Mr. Cogan is an Interested Trustee because he is an officer or director of Pioneer and certain of its affiliates.
- -----------------------------------------------------------------------------------------------------------------------------------
Osbert M. Hood (52)** Trustee and Since June, 2003. President and Chief Executive None
Executive Vice Serves until Officer, PIM-USA since May
President retirement or 2003 (Director since January
removal 2001); President and Director
of Pioneer since May 2003;
Chairman and Director of
Pioneer Investment Management
Shareholder Services, Inc.
("PIMSS") since May 2003;
Executive Vice President of
all of the Pioneer Funds since
June 2003; Executive Vice
President and Chief Operating
Officer of PIM-USA, November
2000 to May 2003; Executive
Vice President, Chief
Financial Officer and
Treasurer, John Hancock
Advisers, L.L.C., Boston, MA,
November 1999 to November
2000; Senior Vice President
and Chief Financial Officer,
John Hancock Advisers, L.L.C.,
April 1997 to November 1999
**Mr. Hood is an Interested Trustee because he is an officer or director of Pioneer and certain of its affiliates. affiliates.
- -----------------------------------------------------------------------------------------------------------------------------------
37
- -----------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- -----------------------------------------------------------------------------------------------------------------------------------
Positions Held Term of Office and Principal Occupation During Other Directorships Held
Name, Age and Address With the Fund Length of Service Past Five Years by this Trustee
Mary K. Bush (56) Trustee Since 1999. President, Bush International Director of Brady
3509 Woodbine Street, Serves until (international financial Corporation (industrial
Chevy Chase, MD 20815 retirement or advisory firm) Other identification and
removal Directorships Held Principal specialty coated material
Occupation During Past Five products manufacturer),
Years by this Trustee Millennium Chemicals,
Inc. (commodity
chemicals), Mortgage
Guaranty Insurance
Corporation, and R.J.
Reynolds Tobacco
Holdings, Inc. (tobacco)
- -----------------------------------------------------------------------------------------------------------------------------------
Richard H. Egdahl, M.D. (77) Trustee Since 1999. Alexander Graham Bell None
Boston University Healthcare Serves until Professor of Health Care
Entrepreneurship Program, retirement or Entrepreneurship, Boston
53 Bay State Road, removal University; Professor of
Boston, MA 02215 Management, Boston University
School of Management;
Professor of Public Health,
Boston University School of
Public Health; Professor of
Surgery, Boston University
School of Medicine; and
University Professor, Boston
University
- -----------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (57) Trustee Since 1999. Founding Director, The None
1001 Sherbrooke Street West, Serves until Winthrop Group, Inc.
Montreal, Quebec, Canada retirement or (consulting firm); Professor
H3A 1G5 removal of Management, Faculty of
Management, McGill University
- -----------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (56) Trustee Since 1999. President and Chief Executive Director of New America
One Boston Place, 28th Floor, Serves until Officer, Newbury, Piret & High Income Fund, Inc.
Boston, MA 02108 retirement or Company, Inc. (investment (closed-end investment
removal banking firm) company)
- -----------------------------------------------------------------------------------------------------------------------------------
38
- ----------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES (continued)
- ----------------------------------------------------------------------------------------------------------------------------
Positions Held Term of Office and Principal Occupation During Other Directorships Held
Name, Age and Address With the Fund Length of Service Past Five Years by this Trustee
Stephen K. West (76) Trustee Since 1999. Senior Counsel, Sullivan & Director, The Swiss
125 Broad Street, Serves until Cromwell (law firm) Helvetia Fund, Inc.
New York, NY 10004 retirement or (closed-end investment
removal company) and
AMVESCAP PLC
(investment managers)
- ----------------------------------------------------------------------------------------------------------------------------
John Winthrop (68) Trustee Since 1999. President, John Winthrop & None
One North Adgers Wharf, Serves until Co., Inc. (private investment
Charleston, SC 29401 retirement or firm)
removal
- ----------------------------------------------------------------------------------------------------------------------------
39
- -----------------------------------------------------------------------------------------------------------------------------------
TRUST OFFICERS
- -----------------------------------------------------------------------------------------------------------------------------------
Positions Held Term of Office and Principal Occupation During Other Directorships
Name, Age and Address With the Fund Length of Service Past Five Years Held by this Officer
Dorothy E. Bourassa (56) Secretary Since September, 2003. Secretary of PIM-USA; Senior None
Serves at the discretion Vice President-Legal of
of board. Pioneer; and Secretary/Clerk
of most of PIM-USA's
subsidiaries since October
2000; Secretary of all of the
Pioneer Funds since September
2003 (Assistant Secretary from
November 2000 to September
2003); and Senior Counsel,
Assistant Vice President and
Director of Compliance of
PIM-USA from April 1998
through October 2000
- -----------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (39) Assistant Secretary Since September, 2003. Assistant Vice President and None
Serves at the discretion Senior Counsel of Pioneer
of board. since July 2002; Vice
President and Senior Counsel
of BISYS Fund Services, Inc.
(April 2001 to June 2002);
Senior Vice President and
Deputy General Counsel of
Funds Distributor, Inc. (July
2000 to April 2001; Vice
President and Associate
General Counsel from July 1996
to July 2000); Assistant
Secretary of all of the
Pioneer Funds since September
2003
- -----------------------------------------------------------------------------------------------------------------------------------
David C. Phelan (47) Assistant Secretary Since September, 2003. Partner, William Cutler None
Serves at the discretion Pickering Hale and Dorr LLP;
of board. Assistant Secretary of all of
Pioneer Funds since September
2003
- -----------------------------------------------------------------------------------------------------------------------------------
Vincent Nave (59) Treasurer Since November, 2000. Vice President-Fund None
Serves at the discretion Accounting, Administration and
of board. Custody Services of Pioneer
(Manager from September 1996
Other Directorships Held to February 1999); and
by this Officer Treasurer of all of the
Pioneer Funds (Assistant
Treasurer from June 1999 to
November 2000)
- -----------------------------------------------------------------------------------------------------------------------------------
40
- -----------------------------------------------------------------------------------------------------------------------------------
TRUST OFFICERS (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
Positions Held Term of Office and Principal Occupation During Other Directorships
Name, Age and Address With the Fund Length of Service Past Five Years Held by this Officer
Mark E. Bradley (45) Assistant Treasurer Since November 2004. Deputy Treasurer of Pioneer None
Serves at the discretion since 2004; Treasurer and
of the board. Senior Vice President, CDC
IXIS Asset Management Services
from 2002 to 2003; Assistant
Treasurer and Vice President,
MFS Investment Management from
1997 to 2002; and Assistant
Treasurer of all of the Pioneer
Funds since November 2004
- -----------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (39) Assistant Treasurer Since November, 2000. Assistant Vice President-Fund None
Serves at the discretion Accounting, Administration and
of board. Custody Services of Pioneer
(Fund Accounting Manager from
1994 to 1999); and Assistant
Treasurer of all of the Pioneer
Funds since November 2000
- -----------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (46) Assistant Treasurer Since May, 2002. Fund Accounting Manager-Fund None
Serves at the discretion Accounting, Administration and
of board. Custody Services of Pioneer;
and Assistant Treasurer of all
of the Pioneer Funds since
May 2002
- -----------------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (30) Assistant Treasurer Since September, 2003. Fund Administration Manager-Fund None
Serves at the discretion Accounting, Administration and
of board. Custody Services since June
2003; Assistant Vice
President-Mutual Fund Operations
of State Street Corporation from
June 2002 to June 2003 (formerly
Deutsche Bank Asset Management);
Pioneer Fund Accounting,
Administration and Custody
Services (Fund Accounting
Manager from August 1999 to May
2002, Fund Accounting Supervisor
from 1997 to July 1999);
Assistant Treasurer of all of
the Pioneer Funds since
September 2003
- -----------------------------------------------------------------------------------------------------------------------------------
41
- -----------------------------------------------------------------------------------------------------------------------------------
TRUST OFFICERS (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
Positions Held Term of Office and Principal Occupation During Other Directorships
Name, Age and Address With the Fund Length of Service Past Five Years Held by this Officer
Martin J. Wolin (37) Chief Compliance Since October 2004. Chief Compliance Officer of None
Officer Serves at the discretion Pioneer (Director of Compliance
of the board. and Senior Counsel from November
2000 to September 2004); Vice
President and Associate General
Counsel of UAM Fund Services,
Inc. (mutual fund administration
company) from February 1998 to
November 2000; and Chief
Compliance Officer of all of the
Pioneer Funds.
- -----------------------------------------------------------------------------------------------------------------------------------
42
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our Internet e-mail address ask.pioneer@pioneerinvest.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current Fund prospectus. For
more information on other Pioneer mutual funds, including charges and
expenses, call 800-225-6292 and request a prospectus. Please read it carefully
before investing or sending money.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
website at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information
regarding the operations of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
www.pioneerfunds.com
16548-00-1204
(C) 2004 Pioneer Funds Distributor, Inc.
Underwriter of Pioneer mutual funds
Member SIPC
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Audit Fees
Fees for audit services provided to the Fund,
including fees associated with the routine
filings of its Form N-1A, totaled
approximately $20,900 in 2004 and
approximately $20,700 in 2003.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
Fees for audit-related services provided to the
Fund during the fiscal years ended October 31,
2004 and 2003 totaled $10,000 in each year
and were for the reviews of the Funds semi
annual financial statements.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees
Fees for tax compliance services, primarily for
tax returns, and tax advisory services totaled
$6,000 in 2004 and $3,600 in 2003.
Additionally, there were fees for tax
compliance services in 2003 that totaled
approximately $4,100 for the 2002 tax returns.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
Audit-Related and Other Fees
There were no audit-related and other services
provided to the Fund during the fiscal years ended
October 31, 2004 and 2003.
(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 recognizes the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognizes that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The Fund's independent auditor, Ernst & Young
LLP ("E&Y"), recently has advised the Securities
and Exchange Commission, the Public Company
Accounting Oversight Board, and the Audit
Committee of the Fund's Board of Trustees that
certain non-audit work performed by E&Y's China
affiliate has raised questions regarding E&Y's
independence with respect to its performance of
audit services for the Fund. In July 2004, E&Y
became aware that member firms in China ("E&Y
China") provided certain tax services to offices of
UniCredito Italiano, S.p.A. ("UCI"), a member of
the Fund's Investment Company Complex. The
services included receipt and disbursement of
monies transferred to E&Y China by UCI in
payment of individual expatriate income taxes due
on returns prepared by E&Y China for certain UCI
employees located in China from October 1998 to
May 2003. E&Y became auditors of the Fund in
May 2002. These expatriate tax services were
discontinued in May 2003. The fees received by
E&Y China for all such services totaled $3,685.
The Fund's Audit Committee and E&Y have
discussed the matter, including the nature of the
services provided, the personnel involved in
providing the services and the fees received by
E&Y for performing the services. The Committee
continues to review the facts and circumstances
surrounding the matter, including the issue of
whether the monies transferred for employees' taxes
were de facto monies due the employees for tax
payments rather than monies belonging to UCI.
E&Y has informed the Audit Committee that based
on its internal reviews and the de minimis nature of
the services provided and fees received, it does not
believe its independence with respect to the Fund
has been impaired.
Aggregate Non-Audit Fees
The aggregate non-audit fees for the Fund and
affiliates, as previously defined, totaled
$16,000 in 2004 and $41,000 in 2003. These
fees include services provided prior to May 6,
2003, the effective date of the pre-approval
process
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
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 Funds audit committee is required
to pre-approve services to affiliates defined by
SEC rules to the extent that the services are
determined to have a direct impact on the
operations or financial reporting of the Fund.
For the years ended October 31, 2004 and
2003, there were no services provided to an
affiliate that required the Funds audit
committee pre-approval.
The Funds 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
accountants independence.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer and principal financial
officer have concluded, that the registrant's disclosure controls and
procedures are effective based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Global High Yield Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date December 28, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date December 28, 2004
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date December 28, 2004
* Print the name and title of each signing officer under his or her signature.