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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 811-0001140157
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)
Joseph P. Barri, Hale and Dorr LLP, 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: April 30
Date of reporting period: November 1, 2002 through April 30, 2003
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.
PIONEER
------------
GLOBAL
HIGH YIELD
FUND
Semiannual
Report
4/30/03
[LOGO]
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 4
Schedule of Investments 7
Financial Statements 12
Notes to Financial Statements 16
Trustees, Officers and Service Providers 20
Pioneer Global High Yield Fund
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LETTER TO SHAREOWNERS 4/30/03
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Dear Shareowner,
- --------------------------------------------------------------------------------
World events drove markets early this year. Uncertainty over war in Iraq brought
steep declines in equities and a continued flight to bonds, especially
government issues. Stocks rallied when the war began, sagged for a time, then
rose modestly as the successful military campaign wound down.
Investors soon turned their attention to domestic concerns, not all of them tied
to the war: sagging consumer confidence, rising unemployment made worse by
call-ups of reservists and the uncertain outlook for corporate earnings. In
addition, a long, harsh winter hampered economic activity, as did the high
prices Americans were paying to power their cars, homes and businesses.
The Federal Reserve Board appears committed to keeping interest rates low to
prevent the economy from slumping further. A weaker U.S. dollar may also act as
a stimulus, as American export goods become more affordable for overseas buyers.
Independent research remains the key
Pioneer is not in the business of forecasting economic trends or predicting
geopolitical events. Our focus remains, as it has for over 75 years, on
intensive analysis of hundreds of companies to find the best values for our
shareowners; this slow economic period has brought many valuations to what we
believe are attractive levels. Our managers and analysts are concentrating on
companies with demonstrably strong finances and positive prospects. Financially
strong companies have greater potential to prosper when the economy eventually
rights itself. Pioneer's fixed-income experts are also finding bonds, both here
and overseas, that offer good current yields and the potential for higher
prices.
Consult a trusted advisor
It's tempting to change course in turbulent times while world news dominates our
consciousness. But timing the market - moving in and out with short-term factors
- - can be costly in terms of lost opportunities; there's no predicting when a
rebound might begin. You can temper that risk by relying on dispassionate
professional advice. So invest the time it takes to meet with a trusted
financial advisor who brings the dual advantages of knowledge and experience to
the table.
All of us at Pioneer thank you for your continued business.
Respectfully,
/s/ John A. Carey
John A. Carey
Executive Vice President, Pioneer Investment Management, Inc.
Director of Portfolio Management U.S.
1
Pioneer Global High Yield Fund
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PORTFOLIO SUMMARY 4/30/03
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Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[Data below is represented by a pie chart in the original report]
Corporate Bonds 66.4%
Convertible Corporate Bonds 17.3%
Foreign Government Bonds 15.8%
Municipal Bonds 0.5%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
- -------------------------------------------------------------------
1 Republic of Columbia, 11.375%, 1/31/08 3.92%
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2 Freeport-McMoRan Copper & Gold, 10.125%, 2/1/10 3.41
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3 NMHG Holding Co., 10.0%, 5/15/09 3.37
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4 Kinross Gold, 5.5%, 12/5/06 3.19
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5 Dominican Republic, 9.04%, 1/23/13 3.17
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6 BF Saul Real Estate Investment Trust, 9.75%, 4/1/08 3.17
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7 Rogers Cantel, Inc., 10.5%, 6/1/06 2.78
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8 Huntsman ICI Chemicals LLC, 10.125%, 7/1/09 2.74
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9 Chiquita Brands International, 10.56%, 3/15/09 2.73
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10 Xerox Corp., 8.0%, 2/1/27 2.73
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This list excludes money market instruments. Fund holdings will vary for other
periods.
2
Pioneer Global High Yield Fund
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PERFORMANCE UPDATE 4/30/03 CLASS A SHARES
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Share Prices and Distributions
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Net Asset Value
per Share 10/31/02 4/30/03
$8.56 $10.60
Distributions per Share Income Short-Term Long-Term
(11/1/02 - 4/30/03) Dividends Capital Gains Capital Gains
$0.509 $ - $ -
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 April 30, 2003)
Net Asset Public Offering
Period Value Price*
Life-of-Class
(8/27/01) 14.72% 11.65%
1 Year 19.08 13.70
- --------------------------------------------------------------------------------
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
[Data below is represented by a mountain chart in the original report]
Value of $10,000+ Investment
ML Global
High Yield
& Emerging Pioneer Global
Markets Plus High Yield
Index Fund*
8/31/2001 $10,000 $9,550
$9,591 $9,244
10/31/2002 $9,429 $9,272
4/30/2003 $12,292 $12,100
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 8/31/01. 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.
Past performance does not guarantee future results. Returns and principal
value fluctuate and your shares, when redeemed, may be worth more or less
than their original cost.
The performance table and graph do not reflect the deduction of taxes that
a shareowner would pay on Fund distributions or the redemption of Fund
shares.
3
Pioneer Global High Yield Fund
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PORTFOLIO MANAGEMENT DISCUSSION 4/30/03
- --------------------------------------------------------------------------------
Investors enjoyed soaring returns from high-yield markets throughout the world.
These markets for lower-rated bonds were spurred by a significant interest rate
cut by the U.S. Federal Reserve and improving conditions in Europe and in
emerging markets. In the following discussion, Andrew D. Feltus, a member of
the team managing Pioneer Global High Yield Fund, provides an update on the
Fund, its investment strategies and the economic environment during the
six-month period.
Q: How did the Fund perform?
A: The Fund had extremely strong performance. For the six-month period ended
April 30, 2003, the Fund's Class A shares had a total return of 30.50% at
net asset value. During the same period, the Merrill Lynch Global High
Yield and Emerging Markets Plus Index returned 30.36%. The Merrill Lynch
High Yield Master Index, which reflects the performance only of the U.S.
high-yield market, rose 22.21%.
Q: What factors led to such strong performance?
A: Virtually all the markets in which we invested performed very well,
underscoring the types of opportunities that can be offered by a global
high-yield strategy. These markets had just finished a difficult period
caused by rising geopolitical risks and sluggish economic growth throughout
the world as well as corporate governance and accounting controversies in
the United States. That challenging environment changed in November 2002,
however, starting with the decision of the U.S. Federal Reserve to lower
short-term interest rates by a surprising one-half of one percentage point.
That helped inject new liquidity into credit markets, and high-yield bond
prices began to recover. The relatively quick resolution of the war in Iraq
later in the period added to the sense of increased confidence in corporate
bond markets.
Other factors contributed to growing confidence in overseas high-yield
markets. In Europe, highly competitive yields and a strengthening currency
combined to attract investors. In many instances, one could find a bond in
Europe identical to a bond in the United States, but with a significant
yield premium over the U.S. security. The European market, the world's
fastest growing high-yield market, has emerged as an area where careful
credit analysis can lead to the discovery of mispriced and undervalued
bonds.
4
Pioneer Global High Yield Fund
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- --------------------------------------------------------------------------------
Emerging markets continued to recover during the period. One factor in the
improving environment was the emergence of a new government in Brazil, an
influential market that had been a concern earlier. Investors had worried
that the new president would be ideologically anti-business. However, after
he took office, President Lula Da Silva continued the previous
administration's pro-market policies.
Q: How did your strategies affect performance during the period?
A: As a global investment company specializing in independent analysis of
different securities, Pioneer was able to find bonds of many good companies
trading at extremely attractive prices. Our emphasis on foreign currencies
and the U.S. high-yield market gave substantial support to performance
during the period. We had slightly overweighted the euro, significantly
overweighted the Canadian dollar, and also emphasized the South African
rand. All three currencies gained significantly against the U.S. dollar. We
also had emphasized domestic high-yield bonds over emerging market debt,
based on our analysis of relative values. In addition, we found the bonds
of many U.S. corporations trading at extremely attractive values, and they
appreciated strongly over the period.
Later in the period, we began to take advantage of the strong performance
of many holdings to take profits and upgrade the overall credit quality of
the portfolio. We looked for opportunities to move from riskier to less
risky assets where valuations make sense. In addition, while we thought the
U.S. dollar might continue to be weak relative to other currencies, we
started to decrease our overweight positions in non-dollar currencies such
as the euro and the South African rand. We also have reduced our holdings
in Russian securities, which had been our largest emerging market position
at the beginning of the period. Our Russian holdings had appreciated
strongly during the period, and we saw less potential for future gains in
those investments.
Over the full six months, our regional allocations did not change
significantly. On April 30, 2003, 63% of Fund assets were invested in the
United States and Canada, 23% in emerging markets, and 14% in other foreign
high-yield bonds, mostly in Europe.
5
Pioneer Global High Yield Fund
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PORTFOLIO MANAGEMENT DISCUSSION 4/30/03 (continued)
- --------------------------------------------------------------------------------
Q: What specific investments most significantly influenced Fund performance?
A: Our Russian investments turned in very favorable performance. The prices of
Russian sovereign bonds rose from $76 to $90 (based on $100 price at face
value). MTS, a Russian cell phone operator in the Moscow area, also
performed well. In Canada, the bonds of Kinross Gold appreciated
significantly, helped both by the rising price of gold and the strength of
the Canadian dollar. Other significant non-U.S. investments that helped
performance were the European bonds of Huntsman International and the
securities of PTC Financial, a Polish cell phone company that is rapidly
paying down debt.
Among the better-performing U.S. investments were: Xerox, whose bonds
gained after a new management team restructured the company's finances;
Freeport-McMoRan, a copper and mining company with an extraordinarily
productive mine property; Juniper Networks, the developer of equipment for
communications networks; and Tesoro, a refiner that benefited both from
higher energy prices and improving prospects of its customers in the
chemical industry.
Even in a very good performance period, we did have some disappointments,
however. The bonds of Durango, a Mexican paper company, fell late in 2002
when inventory problems caused them to miss a December debt payment and
later default on their outstanding debt. In the United States, Indianapolis
Airport Facility Bonds fell when United Airlines, a major tenant at the
airport, filed for bankruptcy and indicated it no longer planned to use a
repair facility in Indianapolis.
Q: What is your investment outlook?
A: Using our value-oriented discipline, we are continuing to find many
opportunities. In Europe, for example, we have discovered a number of
mispriced bonds that offer very strong performance potential. Looking at
broad macroeconomic trends, we also believe the markets should be less
volatile than they have been in recent months. As the general growth
environment stabilizes, high-yield investments should stand to benefit. At
the same time, returns from those investments are likely to be less
impressive than they were over the past six months.
6
Pioneer Global High Yield Fund
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SCHEDULE OF INVESTMENTS 4/30/03 (unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
CONVERTIBLE CORPORATE BONDS - 17.3%
Materials - 3.2%
Precious Metals & Minerals - 3.2%
$ 40,000 Kinross Gold, 5.5%, 12/5/06 $ 25,314
--------
Total Materials $ 25,314
--------
Consumer Durables & Apparel - 1.7%
Leisure Products - 1.7%
15,000 Aristocrat Leisure, Ltd., 5.0%, 5/31/06 $ 13,519
--------
Total Consumer Durables & Apparel $ 13,519
--------
Pharmaceuticals & Biotechnology - 5.2%
Biotechnology - 1.0%
10,000 Human Genome, 3.75%, 3/15/07 $ 7,712
--------
Pharmaceuticals - 4.2%
10,000 Cubist Pharmaceuticals, 5.5%, 11/1/08 $ 7,113
20,000 IVAX Corp., 4.5%, 5/15/08 18,525
10,000 Vertex Pharmaceuticals Inc., 5.0%, 9/19/07 8,137
--------
$ 33,775
--------
Total Pharmaceuticals & Biotechnology $ 41,487
--------
Technology Hardware & Equipment - 3.3%
Networking Equipment - 2.3%
20,000 Juniper Networks Inc., 4.75%, 3/15/07 $ 18,100
--------
Semiconductors - 1.0%
10,000 Triquint Semiconductor, 4.0%, 3/1/07 $ 8,325
--------
Total Technology Hardware & Equipment $ 26,425
--------
Telecommunication Services - 3.9%
Integrated Telecommunication Services - 1.3%
22,000 Colt Telecom Group, 2.0%, 8/6/05 $ 9,810
--------
Wireless Telecommunication Services - 2.6%
25,000 Nortel Networks, 4.25%, 9/1/08 $ 20,844
--------
Total Telecommunication Services $ 30,654
--------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $121,901) $137,399
--------
The accompanying notes are an integral part of these financial statements. 7
Pioneer Global High Yield Fund
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SCHEDULE OF INVESTMENTS 4/30/03 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
CORPORATE BONDS - 66.4%
Materials - 18.6%
Construction Materials - 2.7%
$ 20,000 Hexcel Corp., 9.875%, 10/1/08 (144A) $ 21,400
--------
Diversified Chemicals - 2.7%
20,000 Huntsman ICI Chemicals LLC, 10.125%, 7/1/09 $ 21,698
--------
Diversified Metals & Mining - 3.4%
25,000 Freeport-McMoRan Copper & Gold, 10.125%,
2/1/10 (144A) $ 27,062
--------
Metal & Glass Containers - 1.5%
10,000 Crown Euro Holdings SA, 10.25%, 3/1/11 (144A) $ 11,632
--------
Paper Packaging - 1.9%
15,000 FiberMark Inc., 10.75%, 4/15/11 (144A) $ 15,150
--------
Paper Products - 0.6%
10,000 Corp Durango SA de CV, 13.125%, 8/1/06 (d) $ 4,950
--------
Specialty Chemicals - 5.8%
15,000 Arco Chemical Co., 9.8%, 2/1/20 $ 14,250
15,000 Ethyl Corp., 8.875%, 5/1/10 (144A) 15,600
15,000 United Industries Co., 9.875%, 4/1/09 (144A) 15,900
--------
$ 45,750
--------
Total Materials $147,642
--------
Capital Goods - 3.4%
Industrial Machinery - 3.4%
25,000 NMHG Holding Co., 10.0%, 5/15/09 $ 26,750
--------
Total Capital Goods $ 26,750
--------
Commercial Services & Supplies - 3.7%
Diversified Commercial Services - 1.1%
10,000 Wesco Distribution Inc., 9.125%, 6/1/08 $ 9,000
--------
Environmental Services - 2.6%
20,000 IESI Corp., 10.25%, 6/15/12 $ 20,700
--------
Total Commercial Services & Supplies $ 29,700
--------
Automobiles & Components - 1.3%
Auto Parts & Equipment - 1.3%
10,000 Collins & Aikman Products, 10.75%, 12/31/11 $ 10,250
--------
Total Automobiles & Components $ 10,250
--------
8 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
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Principal
Amount Value
Consumer Durables & Apparel - 7.8%
Apparel & Accessories - 5.1%
$ 20,000 Phillips Van-Heusen, 8.125%, 5/1/13 $20,000
25,000 Vicap SA, 11.375%, 5/15/07 20,250
-------
$40,250
-------
Photographic Products - 2.7%
25,000 Xerox Corp., 8.0%, 2/1/27 $21,625
-------
Total Consumer Durables & Apparel $61,875
-------
Hotels, Restaurants & Leisure - 1.4%
Casinos & Gaming - 1.4%
10,000 Wynn Las Vegas LLC Corp., 12.0%, 11/1/10 $10,825
-------
Total Hotels, Restaurants & Leisure $10,825
-------
Retailing - 2.5%
Department Stores - 2.5%
20,000 J.C. Penney, Co., 8.25%, 8/15/22 $19,700
-------
Total Retailing $19,700
-------
Food, Beverage & Tobacco - 5.4%
Food, Beverage & Tobacco - 2.7%
20,000 Chiquita Brands International, 10.56%, 3/15/09 $21,625
-------
Brewers - 2.7%
20,000 CIA Brasileira de Bebidas, 10.5%, 12/15/11 $21,500
-------
Total Food, Beverage & Tobacco $43,125
-------
Health Care Equipment & Services - 2.0%
Health Care Facilities - 2.0%
15,000 NDC Health Corp., 10.5%, 12/1/12 (144A) $15,900
-------
Total Health Care Equipment & Services $15,900
-------
Diversified Financials - 1.5%
Diversified Financial Services - 1.5%
10,000 MDP Acquisitions Plc, 10.125%, 10/1/12 (144A) $11,967
-------
Total Diversified Financials $11,967
-------
Real Estate - 4.4%
Real Estate Investment Trusts - 4.4%
25,000 BF Saul Real Estate Investment Trust, 9.75%, 4/1/08 $25,125
10,000 Meristar Hospitality Operation Fianance Corp., 10.5%,
6/15/09 9,750
-------
Total Real Estate $34,875
-------
The accompanying notes are an integral part of these financial statements. 9
Pioneer Global High Yield Fund
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SCHEDULE OF INVESTMENTS 4/30/03 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
Technology Hardware & Equipment - 2.4%
Electronic Equipment & Instruments - 2.4%
$ 20,000 Vestel Electronics Finance, 11.5%, 5/14/07 (144A) $ 19,100
--------
Total Technology Hardware & Equipment $ 19,100
--------
Telecommunication Services - 12.0%
Integrated Telecommunications Services - 2.5%
20,000 TSI Telecommunication Services, 12.75%, 2/1/09 $ 19,600
--------
Wireless Telecommunications Services - 9.5%
20,000 Crown Castle International, 9.375%, 8/1/11 $ 19,650
20,000 Mobile Telesystems Finance, 9.75%, 1/30/08 (144A) 21,300
10,000 PTC International Finance, 11.25%, 12/1/09 12,541
30,000 Rogers Cantel, Inc., 10.5%, 6/1/06 22,019
--------
$ 75,510
--------
Total Telecommunication Services $ 95,110
--------
TOTAL CORPORATE BONDS
(Cost $492,024) $526,819
--------
FOREIGN GOVERNMENT BONDS - 15.8%
Government - 15.8%
25,000 Dominican Republic, 9.04%, 1/23/13 $ 25,156
20,000 Federal Republic of Brazil, 11.0%, 1/11/12 19,350
25,000 Republic of Columbia, 11.375%, 1/31/08 31,121
35,000 Republic of Ecuador, 5.0%, 8/15/30 21,000
75,000 Republic of South Africa, 12.5%, 12/21/06 10,859
20,000 Russia Regs., 5.0%, 3/31/30 18,000
--------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $100,172) $125,486
--------
MUNICIPAL BONDS - 0.5%
Government - 0.5%
10,000 Indianapolis Industry Airport Authority Revenue,
6.5%, 11/15/31(d) $ 3,545
--------
TOTAL MUNICIPAL BONDS
(Cost $7,197) $ 3,545
--------
TOTAL INVESTMENT IN SECURITIES
(Cost $721,294)(a)(b)(c) $793,249
========
10 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At April 30, 2003, the
value of these securities amounted to $175,011 or 22.0% of total net
assets.
(a) At April 30, 2003, the net unrealized gain on investments based on cost
for federal income tax purposes of $721,294 was a follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 84,807
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (12,852)
--------
Net unrealized gain $ 71,955
========
(b) At October 31, 2002, the Fund had a capital loss carryforward of $21,435,
which will expire between 2009 and 2010 if not utilized.
(c) Distribution of investment by country of issue, as a percentage of total
investment in securities, is as follows:
United States 65.4%
Canada 8.6%
Luxemborg 4.3%
Columbia 3.9%
Mexico 3.2%
Ecuador 2.6%
Brazil 2.4%
Russia 2.3%
Australia 1.7%
Ireland 1.5%
France 1.5%
South Africa 1.4%
United Kingdom 1.2%
-----
100.0%
(d) Security is in default and is non-income producing.
Purchases and sales of securities (excluding temporary cash investments)
for the six months ended April 30, 2003 aggregated $413,559 and $420,519,
respectively.
The accompanying notes are an integral part of these financial statements. 11
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
BALANCE SHEET 4/30/03 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (cost $721,294) $793,249
Foreign currency, at value (cost $1,587) 1,680
Receivables -
Investment securities sold 28,191
Dividends, interest and foreign taxes withheld 19,635
Due from Pioneer Investment Management, Inc. 10,293
Other 1,368
--------
Total assets $854,416
--------
LIABILITIES:
Payables -
Investment securities purchased $ 20,000
Dividends 5,991
Due to custodian 3,213
Due to affiliates 3,512
Accrued expenses 26,334
--------
Total liabilities $ 59,050
--------
NET ASSETS:
Paid-in capital $749,553
Distributions in excess of net investment income (2,127)
Accumulated net realized loss on investments and foreign
currency transactions (24,345)
Net unrealized gain on investments 71,955
Net unrealized gain on forward foreign currency contracts
and other assets and liabilities denominated in foreign
currencies 330
--------
Total net assets $795,366
--------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $795,366/75,000 shares) $ 10.60
========
MAXIMUM OFFERING PRICE:
Class A ($10.60 [divided by] 95.50%) $ 11.10
========
12 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/03
INVESTMENT INCOME:
Interest $ 40,417
Dividends 413
--------
Total investment income $ 40,830
--------
EXPENSES:
Management fees $ 2,480
Transfer agent fees 256
Distribution fees 885
Administrative fees 19,061
Custodian fees 5,973
Registration fees 4,997
Professional fees 7,649
Fees and expenses of nonaffiliated trustees 3,448
Miscellaneous 1,249
--------
Total expenses $ 45,998
Less management fees waived and expenses
assumed by Pioneer Investment Management, Inc. (43,341)
--------
Net expenses $ 2,657
--------
Net investment income $ 38,173
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments $ (2,121)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (789) $ (2,910)
-------- --------
Change in net unrealized loss from:
Investments $156,188
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 245 $156,433
-------- --------
Net gain on investments and foreign currency transactions $153,523
--------
Net increase in net assets resulting from operations $191,696
========
The accompanying notes are an integral part of these financial statements. 13
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/03 and the Year Ended 10/31/02
Six Months
Ended Year
4/30/03 Ended
(unaudited) 10/31/02
FROM OPERATIONS:
Net investment income $ 38,173 $ 76,155
Net realized loss on investments and foreign currency
transactions (2,910) (17,160)
Change in net unrealized gain (loss) on investments
and foreign currency transactions 156,433 (54,489)
-------- --------
Net increase in net assets resulting
from operations $191,696 $ 4,506
-------- --------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income ($0.51 and $1.02 per share,
respectively) $(38,173) $(76,147)
-------- --------
Total distributions to shareowners $(38,173) $(76,147)
-------- --------
Net increase (decrease) in net assets $153,523 $(71,641)
NET ASSETS:
Beginning of period 641,843 713,484
-------- --------
End of period (including distributions in excess of
net investment income of $2,127 and $2,127,
respectively) $795,366 $641,843
======== ========
14 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year 8/27/01
4/30/03 Ended to
(unaudited) 10/31/02 10/31/01
CLASS A
Net asset value, beginning of period $ 8.56 $ 9.51 $ 10.00
-------- ------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.51 $ 1.02 $ 0.12
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 2.04 (0.95) (0.49)
-------- ------- --------
Net increase (decrease) from investment operations $ 2.55 $ 0.07 $ (0.37)
Distributions to shareowners:
Net investment income (0.51) (1.02) (0.12)
-------- ------- --------
Net increase (decrease) in net asset value $ 2.04 $ (0.95) $ (0.49)
-------- ------- --------
Net asset value, end of period $ 10.60 $ 8.56 $ 9.51
-------- ------- --------
Total return* 30.50% 0.31% (3.65)%
Ratio of net expenses to average net assets+ 0.75%** 0.75% 0.75%**
Ratio of net investment income to average net assets+ 10.76%** 10.79% 7.17%**
Portfolio turnover rate 57%** 47% 89%**
Net assets, end of period (in thousands) $ 795 $ 642 $ 713
Ratios with no waiver of management fees and
assumption of expenses by PIM:
Net expenses 12.97%** 18.70% 30.55%**
Net investment loss (1.46)%** (7.16)% (22.63)%**
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period, 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. 15
Pioneer Global High Yield Fund
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NOTES TO FINANCIAL STATEMENTS 4/30/03 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Global High Yield Fund (the Fund), is a Delaware business 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). To
date, no shares have been offered to the public. The Fund shares outstanding at
April 30, 2003 are owned by PFD. The investment objective of the Fund is to
maximize total return through a combination of income and capital appreciation.
The Fund's financial statements have been prepared in conformity with
accounting principles generally accepted in the United States of America 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 revenues and expenses during the
reporting periods. Actual results could differ from those estimates. The
following is a summary of significant accounting policies consistently followed
by the Fund, which are in conformity with those generally accepted in the
investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Securities are valued at
prices supplied by independent pricing services, which consider such factors
as Treasury spreads, yields, maturities and ratings. 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. Market discounts and premiums
are accreted or amortized daily on a yield-to-maturity basis. Original issue
discount is accreted daily into interest income on a yield-to-maturity basis
with a corresponding increase in the cost basis of the security. Interest
income, including interest on income bearing cash accounts, is recorded on
the accrual basis, net of unrecoverable foreign taxes withheld at the
applicable country rates. Temporary cash investments are valued at amortized
cost.
16
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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. 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.
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. dollar 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
17
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/03/03 (unaudited) (continued)
- --------------------------------------------------------------------------------
offset by entry into a closing transaction or extinguished by delivery of the
currency. Risks may arise upon entering into these contracts from the
potential inability of counterparties to meet the terms of the contract and
from unanticipated movements in the value of foreign currencies relative to
the U.S. dollar. At April 30, 2003, the Fund had no outstanding portfolio or
settlement hedges.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
The characterization of distributions to shareowners for financial reporting
purposes is determined in accordance with federal income tax rules.
Therefore, the source 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.
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 no underwriting
commissions on the sale of Fund shares during the six months ended April 30,
2003.
F. Security 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 dividends on
the securities loaned, and gain or loss in the fair value of the loaned
securities that may occur during the term of the loan will be for account of
the Fund. The loans are secured by collateral of at least 102%, at all times,
of the fair value of the securities loaned. The fair value of collateral will
be adjusted daily to
18
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
reflect any price fluctuation in the value of the loaned securities. The
value of loaned securities and cash collateral at period end are disclosed on
the balance sheet. 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), the Fund's investment adviser,
manages the Fund's portfolio and is a wholly owned indirect subsidiary of
UniCredito Italiano. 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.
PIM has agreed not to impose all or portion of its management fee and to assume
other operating expenses of the Fund to the extent necessary to limit expenses
to 0.75% of the Fund's average daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At April 30, 2003, $2,954 was payable to PIM
related to management fees, administrative fees and certain other services.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (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 $385 in transfer agent fees payable to PIMSS
at April 30, 2003.
4. Distribution Plans
The Fund adopted a plan of distribution for Class A shares in accordance with
Rule 12b-1 under 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. Included in due to affiliates is $173 in distribution fees
payable to PFD at April 30, 2003.
19
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
Mary K. Bush Osbert M. Hood, Executive
Richard H. Egdahl, M.D. Vice President*
Osbert M. Hood* Vincent Nave, Treasurer
Margaret B.W. Graham Joseph P. Barri, Secretary
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
* Mr. Hood was elected Trustee and Executive Vice President on June 3, 2003.
Daniel T. Geraci resigned as Executive Vice President and Trustee of the Fund
on 4/30/03.
20
- --------------------------------------------------------------------------------
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.
[LOGO]
Pioneer Investment Management, Inc.
60 State Street 13704-00-0603
Boston, Massachusetts 02109 (C) 2003 Pioneer Funds Distributor, Inc.
www.pioneerfunds.com Underwriter of Pioneer mutual funds, Member SIPC
ITEM 1 insert annual report
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.
Not applicable for semiannual reports; to be answered on annual submissions
after July 15, 2003.
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.
(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)).
(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 for semiannual reports; to be answered on annual submissions
after July 15, 2003.
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.
(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.
(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.
(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.
(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.
(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.
(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.
(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.
(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.
Not applicable for semiannual reports; to be answered on annual submissions
after December 15, 2003.
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.
Not applicable for semiannual reports; to be answered on annual submissions
after July 15, 2003.
(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.
Not applicable.
(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 July 8, 2003
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 July 8, 2003
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date July 8, 2003
* Print the name and title of each signing officer under his or her signature.