OMB APPROVAL
OMB Number: 3235-0570
Expires: September 30, 2007
Estimated average burden
hours per response.....19.4
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, 2005 through April 30, 2006
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PIONEER
-----------------------
GLOBAL
HIGH YIELD
FUND
Semiannual
Report
4/30/06
[LOGO] PIONEER
Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 31
Notes to Financial Statements 39
Factors Considered by the Independent Trustees in Approving
the Management Contract 47
Trustees, Officers and Service Providers 53
President's
Dear Shareowners,
- --------------------------------------------------------------------------------
The six and 12 months ending April 30, 2006, have been characterized by strong
global growth, rising commodity and stock prices, and rising interest rates.
While markets reversed in May (U.S. Treasury bond yields, stock markets, and
commodity prices all turned down), we believe the basic fundamental pattern of
strong global economic growth remains intact.
According to the International Monetary Fund, global economic growth in 2004-5
was the fastest of any two-year period in more than 30 years, and 2006 growth
is projected to match 2005 levels. Growth has been broad-based, with Europe,
Japan, and emerging market economies all showing strength. The result has been
rising prices across a broad range of commodities, rising corporate profits,
and rising interest rates. These have been the basic ingredients of the equity
bull market and relatively weak bond market over the six months ending April
30, 2006.
The bond markets' concern has been that strong economic growth would spark
inflation - we have already seen commodity prices rise, and U.S. labor costs
are threatening to rise as the economy reaches full employment. In this
environment, strong economic growth may lead to inflation and higher interest
rates, while slowing economic growth is welcomed by the markets.
While first quarter economic growth was strong, it looks as if the slowdown in
the U.S. economy that we have been anticipating for the second half of the year
may be starting to unfold. The U.S. unemployment rate reached a five-year low
of 4.6 percent in May, but employment growth slowed to only 75,000 new jobs,
the smallest increase since the Katrina-distorted result of October 2005. The
housing market is cooling, as is non-essential consumer spending.
The U.S. Federal Reserve has not yet paused in its program of measured
increases in short-term interest rates, and it appears likely that the Fed will
raise rates again at the end of June. Global stock markets declined in May
after the Fed warned that the central bank remains determined to keep inflation
low. Fed vigilance against inflation and resolve to hike interest rates as
necessary to keep inflation pressures well-contained puts short-term pressure
on markets, but is investor-friendly over the intermediate-to-longer term. By
restraining inflation,
2
Letter
the Fed may limit upward pressure on longer-maturity bond yields and downward
pressure on stocks' price/earnings ratios.
In summary, we believe a desirable moderate slowing of U.S. economic growth
appears likely, with beneficial impacts on inflation and interest rates, while
global growth prospects remain strong. We think security market valuations
remain reasonable. However, there are no guarantees in investing. We know from
a long-view of history that sudden shifts in investor sentiment can occur with
little warning. This unpredictability reinforces the importance of Pioneer's
message that investors should remain diversified, take a long-term view, and
base investment decisions on economic and market fundamentals, rather than on
emotion. Our investment philosophy and approach continue to be based on the use
of fundamental research to identify a range of opportunities that offer an
attractive balance of risk and reward to help Fund shareowners work toward
their long-term goals.
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.
Please consider the Fund's investment objectives, risks, charges and expenses.
Contact your advisor or Pioneer investments for a prospectus containing this
information. Please read the information carefully.
3
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/06
- --------------------------------------------------------------------------------
High-yielding securities performed well throughout the global markets during
the six months ended April 30, 2006. With a backdrop of sustained economic
growth and improving corporate fundamentals, investors felt confident in taking
on credit risk and sought out bonds offering a yield advantage over
higher-quality securities. The persistent recovery of the world economy and
strong results from high-yielding bonds came despite the continued efforts of
the U.S. Federal Reserve Board and other central banks to restrain growth by
raising short-term interest rates. In the following discussion, Andrew D.
Feltus, leader of the team managing Pioneer Global High Yield Fund, provides an
update on the Fund, its investment strategies and the investment environment
for the six months ended April 30, 2006.
Q: How did the Fund perform?
A: In a favorable environment, the Fund's performance surpassed its benchmarks
and competitive averages. Pioneer Global High Yield Fund Class A shares had
a total return of 7.13%, at net asset value, for the six months ended April
30, 2006. In comparison, the Merrill Lynch Global High Yield and Emerging
Markets Plus Index returned 5.76%, while the Merrill Lynch High Yield
Master II Index gained 4.98%. The average return of the 457 funds in
Lipper's High Current Yield category was 5.10% for the same six months.
The Fund also produced an attractive stream of income for shareholders. The
30-day SEC yield for Class A shares, for example, was 6.54% on April 30,
2006.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher
than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
Q: What were the principal factors affecting Fund performance?
A: The sustained economic recovery remained the driving influence on
high-yield bond performance for the period. In this environment of strong
growth and rising corporate profits, default rates of high-yield corporate
debt remained relatively low. Investors showed
4
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
their willingness to accept the credit risks associated with lower-rated,
high-yielding investments and high-yield corporate bonds outperformed
high-grade bonds.
Economies throughout the world continued to expand in the face of the
tightening monetary policies of the U.S. Federal Reserve and other central
banks. By the end of the period on April 30, 2006, the Fed had raised the
Fed funds rate 15 times since June 2004, hiking the rate from 1.00% to
4.75%, with more rate increases anticipated. While some signs were
beginning to emerge that the pace of economic growth was slowing, other
evidence remained that economies still were growing strongly and that the
potential for increased inflation might be building. Gross Domestic Product
(GDP) in the United States, for example, grew at an annualized rate of
5.50% in the first quarter of 2006, while rising commodity and energy
prices appeared to be adding to inflationary pressures. The fear of rising
inflation added a measure of volatility to the fixed-income markets,
especially affecting Treasuries and other high-quality, interest-rate
sensitive sectors. The volatility intensified late in the fiscal year, as
Treasury rates rose. At the same time, the U.S. dollar weakened against
most major foreign currencies. In the first four months of 2006, for
example, the dollar lost 6% of its value relative to the euro.
Emerging market debt outperformed domestic high-yield bonds, based upon the
fundamental improvement in the economies of many developing nations that
benefited from high commodity prices and the global economic expansion.
High-yield corporate debt in foreign developed nations also did well,
helped by weakness in the U.S. dollar and the growing investor appetite for
higher yields.
Q: How did you position the Fund in this environment?
A: We emphasized domestic high-yield bonds over both emerging market debt and
international high-yield debt. Although emerging market securities were
performing well, we were concerned about their tight yield advantages over
other fixed-income securities, and we did not believe investors were
adequately compensated for the risks. Political risks were especially
prominent in Latin America, where several countries were preparing for
national elections that could affect the capital markets. We also believed
that the sovereign debt of many emerging nations was over-valued. We tended
to focus our emerging markets investments on good high-yield
5
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/06 (continued)
- --------------------------------------------------------------------------------
companies whose debt was selling at discounts to the debt of comparable
high-yield companies in the United States and Europe. We also emphasized
investments in Asia, especially nations that were affected by the dynamic
growth in China.
At the end of the six-month period, 55.4% of Fund assets were invested in
the domestic high-yield market, with 29.8% in emerging markets and 11.6% in
international high yield. Average credit quality was B, as measured by
credit rating agency Standard & Poor's, on April 30, 2006.
Q: What strategies and investments had the greatest impact on investment
results?
A: Good security selection was the primary driver of performance, helping the
Fund outperform its benchmarks despite our de-emphasis of the
better-performing emerging market and foreign high-yield areas. Within our
foreign allocations, we overweighted Norway, with a special emphasis on oil
services companies that were positioned to benefit from the strong energy
market. Bonds of oil services companies, such as Kvaerner, Sevan Marine and
Thule Drilling all performed particularly well. Our heavier relative
position in the bonds of basic materials companies in general also helped
Fund results as these companies gained with rising commodity markets.
We also had established positions in the bonds of several companies that
subsequently announced that they were being acquired or restructuring their
finances by issuing initial public stock offerings. Bonds that appreciated
in value as companies announced they were being acquired included
securities of: Indo Coal, an Indonesian coal company; Doane Pet Care, a pet
food company; and Stone Energy, an oil and gas producer. Hexion Specialty
Chemicals (Resolution Performance), another company whose bonds we held,
announced it intended to issue a new stock offering and bought back its
bonds. Performance also received a boost when Navistar, the truck
manufacturer, was forced to buy back its debt because it was late in filing
financial statements.
Our holdings in airline industry bonds helped Fund performance, as
securities issued by Continental and AMR, parent of American Airlines,
appreciated as the industry gained improved pricing power. Other successful
investments included securities of chemical
6
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
company Celanese and of Pegasus Solutions, which provides an automated
reservations system for the hospitality industry.
Our underweight position in foreign currencies held back performance during
a period in which the dollar weakened. Also detracting from results were
our positions in several companies that ran into difficulties, although
none defaulted on their debt. Mandra Forestry, a Chinese company, had
disappointing results because of greater-than-expected harvesting costs.
School bus operator Atlantic Express, another disappointment, was affected
by rising fuel costs. While many holdings benefited from the growing
economy, Stanadyne was an exception. This manufacturer of filters for
construction machinery and tractors had difficulty keeping up with growing
demand for its products. As it spent more money to increase its production,
its profit margins declined.
Q: What is your investment outlook?
A: As a consequence of the combination of higher interest rates and rising
commodity prices, we anticipate a slowing from the relatively torrid pace
of global economic growth that we have witnessed during the past two years.
As rates have risen, we have become more cautious and reduced the Fund's
sensitivity to interest rates by shortening duration, a measure of a bond's
price sensitivity to changes in interest rates. On April 30, 2006, for
example, the Fund's effective duration was 4.2 years. This short duration
also gives us the flexibility to re-invest in attractive opportunities as
they appear.
We anticipate that we shall continue to be underweighted in emerging
markets, where we think valuations do not justify the risks of the asset
class. Although we are concerned about weakness in the dollar, we have not
found many foreign bonds with valuations that would justify our investment.
We expect to maintain an emphasis on the U.S. high-yield market, where
corporations are in generally solid financial shape. In the domestic
market, we seek to find the most attractive yields and values relative to
other fixed-income asset classes.
7
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/06 (continued)
- --------------------------------------------------------------------------------
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.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
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. Prepayment risk is the chance that mortgage-backed bonds will be
paid off early if falling interest rates prompt homeowners to refinance their
mortgages. Forced to reinvest the unanticipated proceeds at lower interest
rates, the Fund would experience a decline in income and lose the opportunity
for additional price appreciation associated with falling interest rates. At
times, the Fund's investments may represent industries or industry sectors that
are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. These risks may increase share price volatility.
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.
8
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 4/30/06
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(as a percentage of total investment portfolio)
[The following data was represented as a pie chart in the printed material]
Corporate Bonds 92.8%
Asset Backed Securities 3.2%
Temporary Cash Investment 1.2%
Covertible Corporate Bonds 1.1%
Foreign Government Bonds 0.8%
U.S. Government Agency Obligations 0.6%
Collateralized Mortgage Obligations 0.3%
10 Largest Holdings
- --------------------------------------------------------------------------------
(as a percentage of total long-term securities)*
1. Kvaerner ASA, 0.0%, 10/30/11 1.50%
2. Asia Aluminum Holdings, 8.0%, 12/23/11 (144A) 1.29
3. J. Ray McDermott SA, 11.0%, 12/15/13 (144A) 1.28
4. Warner Chilcott Corp., 9.0%, 2/1/15 (144A) 1.25
5. DDI Holding AS, 9.3%, 1/19/12 1.25
6. Braskem SA, 11.75%, 1/22/14 1.24
7. Noble Group, Ltd., 6.625%, 3/17/15 (144A) 1.21
8. Corp Interamer De Entret, 8.875%, 6/14/15 (144A) 1.20
9. Invista, 9.25%, 5/1/12 (144A) 1.14
10. Crystal US Holdings, Inc., Floating Rate Note, 10/1/14 (c) 1.11
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different.
9
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 4/30/06 4/30/05
----- ------- -------
A $12.24 $ 11.88
B $12.22 $ 11.85
C $12.18 $ 11.82
Y $12.03 $ - *
Distributions Per Share
- --------------------------------------------------------------------------------
5/1/05 - 4/30/06
-------------------------------------
Class Dividends Short-Term Long-Term
----- --------- ---------- ---------
A $0.4390 $ - $ 0.0336
B $0.3901 $ - $ 0.0336
C $0.3909 $ - $ 0.0336
Y $0.2870 $ - $ - *
- --------------------------------------------------------------------------------
INDEX DEFINITIONS
- --------------------------------------------------------------------------------
The Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index tracks
the performance of the below and border-line investment-grade global debt
markets denominated in the major developed market currencies. The Index includes
sovereign issuers rated BBB1 and lower along with corporate issuers rated BB1
and lower. There are no restrictions on issuer country of domicile. However, the
bonds must be publicly issued in a developed market (i.e., investment-grade
country). Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in an Index.
The Index defined here pertains to the Value of $10,000 Investment charts
appearing on pages 11-14.
* N/A - Inception date for Class Y shares was December 28, 2005.
10
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/06 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund at public offering price,
compared to that of the Merrill Lynch (ML) Global High Yield and Emerging
Markets Plus Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of April 30, 2006)
Net Asset Public
Value Offering
Period (NAV) Price (POP)
Life-of-Fund
(8/23/01) 14.44% 13.32%
1 Year 11.60 6.55
- --------------------------------------------------------------------------------
[The following data was represented as a line chart in the printed material]
Pioneer ML Global High Yield
Global High and Emerging Markets
Yield Fund Plus Index
8/01 $ 9,550 $ 10,000
4/02 10,163 10,157
4/04 14,238 13,332
4/06 18,021 16,199
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had charges been reflected. 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.
The Fund will charge a 2% redemption fee on proceeds from shares redeemed or
exchanged within 30 days of investing in funds (either by purchasing or
exchanging) Fund shares. See the prospectus for complete details.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Fund's investment advisor, Pioneer Investment Management, Inc., reduced its
management fee and subsidized other Fund expenses; otherwise, returns would have
been lower.
11
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/06 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund compared to that of the
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of April 30, 2006)
If If
Period Held Redeemed
Life-of-Class
(11/21/03) 10.95% 9.88%
1 Year 10.80 6.80
- --------------------------------------------------------------------------------
[The following data was represented as a line chart in the printed material]
Pioneer ML Global High Yield
Global High and Emerging Markets
Yield Fund Plus Index
11/03 $ 10,000 $ 10,000
4/04 10,277 10,318
4/05 11,563 11,390
4/06 12,511 12,536
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
The Fund will charge a 2% redemption fee on proceeds from shares redeemed or
exchanged within 30 days of acquiring (either by purchasing or exchanging) Fund
shares. See the prospectus for complete details.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
During the period, the investment advisor waived or reimbursed certain expenses.
Without this waiver, returns would have been lower.
12
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/06 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund compared to that of the
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of April 30, 2006)
If If
Period Held Redeemed
Life-of-Class
(11/21/03) 10.64% 10.64%
1 Year 10.77 10.77
- --------------------------------------------------------------------------------
[The following data was represented as a line chart in the printed material]
Pioneer ML Global High Yield
Global High and Emerging Markets
Yield Fund Plus Index
11/03 $ 10,000 $ 10,000
4/04 10,211 10,318
4/05 11,487 11,390
4/06 12,724 12,536
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. Returns would
have been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
The Fund will charge a 2% redemption fee on proceeds from shares redeemed or
exchanged within 30 days of acquiring (either by purchasing or exchanging) Fund
shares. See the prospectus for complete details.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
During the period, the investment advisor waived or reimbursed certain expenses.
Without this waiver, returns would have been lower.
13
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/06 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund compared to that of the
Merrill Lynch (ML) Global High Yield and Emerging Markets Plus Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of April 30, 2006)
If If
Period Held Redeemed
Life-of-Class
(8/27/01) 14.01% 14.01%
1 Year 9.68 9.68
- --------------------------------------------------------------------------------
[The following data was represented as a line chart in the printed material]
Pioneer ML Global High Yield
Global High and Emerging Markets
Yield Fund Plus Index
8/01 $ 10,000 $ 10,000
4/02 10,643 10,157
4/03 12,674 11,601
4/04 14,910 13,332
4/05 16,911 14,717
4/06 18,547 16,199
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance for periods prior to the inception of Y shares reflects the NAV
performance of the Fund's A shares. The performance does not reflect differences
in expenses, including the Rule 12b-1 fees applicable to A shares. Since fees
for A shares are generally higher than those of Y shares, the performance shown
for Y shares prior to their inception would have been higher. Class A shares are
used as a proxy through December 28, 2005, the inception date of Class Y shares.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
During the period, the investment advisor waived or reimbursed certain expenses.
Without this waiver, returns would have been lower.
14
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global High Yield Fund
Based on actual returns from November 1, 2005 through April 30, 2006.
Share Class A B C Y**
- ---------------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 11/01/05
Ending Account Value $1,071.30 $1,068.00 $1,067.40 $1,052.80
On 4/30/06
Expenses Paid During Period* $ 5.65 $ 9.64 $ 9.53 $ 21.69
* Expenses are equal to the Fund's annualized expense ratio of 1.10%, 1.88%,
1.86% and 6.22% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one half year period).
** Class Y Shares are multiplied by the average account value over the period,
multiplied by 124/365 (to reflect the period since inception).
15
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global High Yield Fund
Based on a hypothetical 5% per year return before expenses, reflect
ing the period from November 1, 2005 through April 30, 2006
Share Class A B C Y**
- -----------------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 11/01/05
Ending Account Value $1,019.34 $1,015.47 $1,015.57 $ 995.86
On 4/30/06
Expenses Paid During Period* $ 5.51 $ 9.39 $ 9.30 $ 21.09
* Expenses are equal to the Fund's annualized expense ratio of 1.10%, 1.88%,
1.86% and 6.22% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one half year period).
** Class Y shares are multiplied by the average account value over the period,
multiplied by 124/365 (to reflect the period since inception).
16
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/06 (unaudited)
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
CONVERTIBLE CORPORATE BONDS - 1.1%
Pharmaceuticals & Biotechnology - 0.9%
Biotechnology - 0.0%
$ 10,000 Cubist Pharmaceuticals, 5.5%, 11/1/08 $ 9,688
------------
Pharmaceuticals - 0.9%
9,860,000 Pharm Resources, 2.875%, 9/30/10 $ 8,183,800
------------
Total Pharmaceuticals & Biotechnology $ 8,193,488
------------
Software & Services - 0.2%
Data Processing & Outsourced Services - 0.2%
1,600,000 Pegasus Solutions, Inc., 3.875%, 7/15/23 $ 1,584,000
------------
Total Software & Services $ 1,584,000
------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $9,594,084) $ 9,777,488
------------
ASSET BACKED SECURITIES - 3.1%
Transportation - 1.1%
Airlines - 1.1%
1,371,726 American Airlines, Inc, 7.377%, 5/23/19 $ 1,261,988
602,222 American Airlines, Inc., 9.71%, 1/30/07 601,469
6,211,983 American Airlines, Inc., 7.379%, 5/23/16 5,621,844
2,494,099 Continental Airline, Inc., 8.499%, 5/1/11 2,396,255
135,964 Continental Airlines, Inc., 8.312%, 4/2/11 129,441
------------
$ 10,010,997
------------
Total Transportation $ 10,010,997
------------
Retailing - 0.6%
Distributors - 0.6%
5,720,000 NTComex, Inc., 11.75%, 1/15/11 (144A) $ 5,777,200
------------
Total Retailing $ 5,777,200
------------
Utilities - 1.4%
Electric Utilities - 1.4%
2,147,015 FPL Energy Wind Funding, 6.876%,
6/27/17 (144A) $ 2,149,699
1,756,644 FPL Energy National Wind, 6.125%,
3/25/19 (144A) 1,700,519
8,696,961 Ormat Funding Corp., 8.25%, 12/30/20 9,044,839
------------
$ 12,895,057
------------
Total Utilities $ 12,895,057
------------
TOTAL ASSET BACKED SECURITIES
(Cost $27,519,848) $ 28,683,254
------------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/06 (continued)
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.3%
Diversified Financials - 0.3%
Diversified Financial Services - 0.3%
$ 2,500,000 Tower 2004-2A F, 6.376%, 12/15/14 $ 2,456,465
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $2,500,000) $ 2,456,465
------------
CORPORATE BONDS - 90.6%
Energy - 10.2%
Coal & Consumable Fuels - 0.6%
5,800,000 Adaro Finance B.V., 8.5%, 12/8/10 (144A) $ 5,988,500
------------
Oil & Gas Drilling - 1.6%
1,890,000 Copano Energy LLC, 8.125%, 3/1/16 (144A) $ 1,941,975
11,000,000 DDI Holding AS, 9.3%, 1/19/12 11,110,000
------------
$ 13,051,975
------------
Oil & Gas Equipment & Services - 3.8%
9,793,000 J. Ray McDermott SA, 11.0%, 12/15/13 (144A) $ 11,372,121
3,765,000 Pipe Acquisition Finance, Floating Rate Note,
12/15/10 (144A) 3,727,350
4,000,000 Semgroup LP, 8.75%, 11/15/15 (144A) 4,080,000
6,400,000 Sevan Marine ASA, 9.75%, 1/31/11 6,470,400
NOK 40,000,000 Sevan Marine, 9.0%, 3/31/08 6,773,070
NOK 22,000,000 Thule Drilling, 10.0%, 5/10/07 4,010,371
------------
$ 36,433,312
------------
Oil & Gas Exploration & Production - 3.7%
60,000 Baytex Energy, Ltd., 9.625%, 7/15/10 (144A) $ 63,300
4,735,000 Baytex Energy, Ltd., 9.625%, 7/15/10 4,995,425
6,395,000 Clayton Williams Energy, 7.75%, 8/1/13 6,027,288
2,000,000 Gazprom International SA, 7.201%,
2/1/20 (144A) 2,087,500
4,270,000 Harvest Operations Corp., 7.875%, 10/15/11 4,184,600
3,400,000 Mariner Energy, Inc., 7.5%, 4/15/13 (144A) 3,366,000
5,950,000 Petroquest Energy, Inc., 10.375%, 5/15/12 6,321,875
3,815,000 Quicksilver Resources, Inc., 7.125%, 4/1/16 3,757,775
3,115,000 Stone Energy Corp., 6.75%, 12/15/14 3,130,575
------------
$ 33,934,338
------------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
Oil & Gas Storage & Transportation - 0.5%
$ 960,000 Inergy LP, 8.25%, 3/1/16 (144A) $ 986,400
1,865,000 Targa Resources, Inc., 8.5%, 11/1/13 (144A) 1,888,313
1,210,000 Transmontaigne, Inc., 9.125%, 6/1/10 1,303,775
------------
$ 4,178,488
------------
Total Energy $ 93,586,613
------------
Materials - 21.1%
Aluminum - 1.8%
12,095,000 Asia Aluminum Holdings, 8.0%, 12/23/11 (144A) $ 11,429,775
4,850,000 Indalex Holding, 11.5%, 2/1/14 (144A) 4,813,625
------------
$ 16,243,400
------------
Commodity Chemicals - 3.2%
515,000 Arco Chemical Co., 9.8%, 2/1/20 $ 576,800
5,620,000 Aventine Renewable Energy, Floating Rate Note,
12/15/11 5,901,000
5,525,000 Basell Finance Co., 8.1%, 3/15/27 (144A) 5,262,563
9,465,000 Invista, 9.25%, 5/1/12 (144A) 10,103,888
6,980,000 Verasun Energy Corp., 9.875%, 12/15/12 (144A) 7,433,700
------------
$ 29,277,951
------------
Construction Materials - 1.2%
3,750,000 RMCC Acquisition Co., 9.5%, 11/1/12 (144A) $ 3,918,750
6,900,000 U.S. Concrete, Inc., 8.375%, 4/1/14 7,089,750
------------
$ 11,008,500
------------
Diversified Chemical - 4.0%
2,640,000 Braskem International, Ltd., 9.375%,
6/1/15 (144A) $ 2,890,800
9,070,000 Braskem SA, 11.75%, 1/22/14 11,020,050
755,000 Braskem SA, 11.75%, 1/22/14 (144A) 917,325
EURO 640,000 Huntsman International LLC., 10.125%, 7/1/09 827,348
3,045,000 Ineos Group Holdings Plc, 7.875%, 2/15/16 (144A) 3,686,743
5,650,000 LPG International, Inc., 7.25%, 12/20/15 (144A) 5,494,625
EURO 5,515,000 Nell AF Sarl, 8.375%, 8/15/15 (144A) 7,138,106
2,250,000 Resolution Perform Production, 8.0%, 12/15/09 2,368,125
EURO 1,647,000 Rhodia SA, 9.25%, 6/1/11 2,227,795
------------
$ 36,570,917
------------
Diversified Metals & Mining - 0.9%
2,550,000 Vale Overseas, Ltd., 8.25%, 1/17/34 $ 2,830,500
5,795,000 Vedenta Resources Plc, 6.625%, 2/22/10 (144A) 5,684,663
------------
$ 8,515,163
------------
The accompanying notes are an integral part of these financial statements. 19
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
Forest Products - 1.4%
$ 4,170,000 Ainsworth Lumber, 6.75%, 3/15/14 $ 3,554,925
450,000 Ainsworth Lumber, 6.75%, 3/15/14 383,625
4,175,000 Mandra Foresty, 12.0%, 5/15/13 (144A) 3,590,500
EURO 10,000 MDP Acquisitions Plc., 10.125%, 10/1/12 (144A) 14,031
5,125,000 Sino Forest Corp., 9.125%, 8/17/11 (144A) 5,515,781
------------
$ 13,058,862
------------
Metal & Glass Containers - 0.3%
2,885,000 Vitro Envases Norteamerica, 10.75%,
7/23/11 (144A) $ 3,043,675
------------
Paper Packaging - 2.7%
6,425,000 AEP Industries, Inc., 7.875%, 3/15/13 $ 6,569,563
8,605,000 Graham Packaging Co., 9.875%, 10/15/14 (c) 8,841,638
9,280,000 Graphic Packaging Co., 9.5%, 8/15/13 (c) 9,001,600
------------
$ 24,412,801
------------
Paper Products - 0.9%
6,600,000 Exopac Holding Corp., 11.25%, 2/1/14 (144A) $ 6,699,000
1,720,000 P.H. Glatfelter, 7.125%, 5/1/16 (144A) 1,726,809
------------
$ 8,425,809
------------
Precious Metals & Minerals - 0.3%
2,625,000 Alrosa Finance SA, 8.875%, 11/17/14 (144A) $ 2,976,094
------------
Specialty Chemicals - 3.0%
12,455,000 Crystal US Holdings, Inc., Floating Rate Note,
10/1/14 (c) $ 9,839,450
3,330,000 Ferro Corp., 7.625%, 5/1/13 3,271,725
950,000 Kronos International, Inc., 6.5%, 4/15/13 (144A) 1,186,160
5,570,000 Polyone Corp., 8.875%, 5/1/12 (c) 5,653,550
7,050,000 Resolution Performance, 13.5%, 11/15/10 7,543,500
------------
$ 27,494,385
------------
Steel - 1.4%
6,210,000 CSN Islands IX Corp., 10.5%, 1/15/15 (144A) $ 7,141,500
2,765,000 CSN Islands IX Corp., 9.5%, 7/1/49 (144A) 2,834,125
3,160,000 Edgen Acquisition Corp., 9.875%, 2/1/11 3,152,100
------------
$ 13,127,725
------------
Total Materials $194,155,282
------------
20 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
Capital Goods - 9.2%
Building Products - 2.7%
$ 6,715,000 Builders Firstsource Inc., Floating Rate Note,
2/15/12 $ 6,966,813
2,790,000 Caue Finance, Ltd., 8.875%, 8/1/15 (144A) 3,023,663
5,780,000 Desarrolladora Homex SA, 7.5%, 9/28/15 5,571,920
4,675,000 Loma Negra C.I.A.S.A., 7.25%, 3/15/13 (144A) 4,558,125
3,500,000 Ray Acquisition, 9.375%, 3/16/15 (144A) 4,767,340
------------
$ 24,887,861
------------
Construction & Engineering - 1.4%
NOK 85,428,200 Kvaerner ASA, 0.0%, 10/30/11 $ 13,288,677
------------
Construction & Farm Machinery & Heavy Trucks - 1.9%
3,430,000 Accuride Corp., 8.5%, 2/1/15 $ 3,387,125
1,200,000 Commercial Vehicle Group, 8.0%, 7/1/13 1,200,000
2,450,000 Greenbrier Co., Inc., 8.375%, 5/15/15 2,563,313
13,800,000 Stanadyne Corp., Floating Rate Note, 2/15/15 7,038,000
3,340,000 Stanadyne Corp., 10.0%, 8/15/14 3,072,800
------------
$ 17,261,238
------------
Electrical Component & Equipment - 0.3%
1,975,000 Vac Finanzierung BMGH, 9.25%, 4/15/16 (144A) $ 2,590,507
------------
Heavy Electrical Equipment - 1.2%
3,030,000 Altra Industrial Motion, 9.0%, 12/1/11 $ 3,045,150
1,750,000 Altra Industrial Motion, Inc., 11.25%,
2/15/13 (144A) 3,251,562
4,750,000 Hawk Corp., 8.75%, 11/1/14 4,773,750
------------
$ 11,070,462
------------
Trading Companies & Distributors - 1.7%
5,125,000 Glencore Funding LLC, 6.0%, 4/15/14 (144A) $ 4,832,880
12,200,000 Noble Group, Ltd., 6.625%, 3/17/15 (144A) 10,772,990
------------
$ 15,605,870
------------
Total Capital Goods $ 84,704,615
------------
Commercial Services & Supplies - 6.7%
Diversified Commercial Services - 3.1%
1,115,000 Ashtead Holdings Plc, 8.625%, 8/1/15 (144A) $ 1,154,025
7,055,000 Cardtronics, Inc., 9.25%, 8/15/13 (144A) 7,002,088
1,500,000 Cornell Co's, Inc., 10.75%, 7/1/12 1,567,500
7,200,000 FS Funding AS, Floating Rate Note, 5/15/16 (144A) 9,080,648
2,930,000 FTI Consulting, 7.625%, 6/15/13 3,083,825
The accompanying notes are an integral part of these financial statements. 21
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/06 (continued)
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
Diversified Commercial Services - continued
$ 3,420,000 Park-Ohio Industries, Inc., 8.375%, 11/15/14 $ 3,231,900
3,675,000 United Rentals NA, Inc., 7.75%, 11/15/13 (c) 3,693,375
------------
$ 28,813,361
------------
Environmental & Facilities Services - 2.6%
3,570,000 Clean Harbors, Inc., 11.25%, 7/15/12 (144A) $ 4,034,100
7,330,000 Hydrochem Industrial Service, 9.25%,
2/15/13 (144A) 7,275,025
5,250,000 New Reclamation Group, 8.125%, 2/1/13 (144A) 6,737,178
5,300,000 Waste Services, Inc., 9.5%, 4/15/14 5,485,500
------------
$ 23,531,803
------------
Human Resource & Employment Services - 0.4%
4,185,000 Knowledge Learning Center, 7.25%, 2/1/15
(144A) $ 3,970,519
------------
Office Services & Supplies - 0.6%
5,485,000 Nutro Products, Inc., 10.75%, 4/15/14 (144A) $ 5,676,975
------------
Total Commercial Services & Supplies $ 61,992,658
------------
Transportation - 4.4%
Airlines - 1.6%
870,000 AMR Corp, 10.2%, 3/15/20 (c) $ 772,125
810,000 AMR Corp., 9.0%, 8/1/12 779,625
6,910,000 Continental Air, Inc., 7.568%, 12/1/06 6,867,969
5,250,000 Gol Finance, 8.75%, 4/29/49 (144A) 5,092,500
3,100,000 Northwest Airlines, Inc., 10.0%, 2/1/09 1,302,000
------------
$ 14,814,219
------------
Highways & Railtrack - 0.4%
4,250,000 Atlantic Express Transport, 12.0%, 4/15/08 $ 3,596,563
------------
Marine - 2.0%
1,615,000 CMA CGM SA, 7.25%, 2/1/13 (144A) $ 1,587,070
3,251,000 H-Lines Finance Holding, Floating Rate Note,
4/1/13 2,763,350
1,500,000 Seabulk International, Inc., 9.5%, 8/15/13 1,665,000
3,750,000 Ship Finance International, Ltd., 8.5%, 12/15/13 3,515,625
6,920,000 Stena AB, 7.0%, 12/1/16 6,539,400
2,660,000 Trailer Bridge, Inc., 9.25%, 11/15/11 2,729,825
------------
$ 18,800,270
------------
Railroads - 0.4%
3,855,000 TFM SA De CV, 9.375%, 5/1/12 $ 4,144,125
------------
Total Transportation $ 41,355,177
------------
22 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
Automobiles & Components - 3.0%
Auto Parts & Equipment - 0.3%
$ 3,790,000 Cooper Standard Auto, 8.375%, 12/15/14 $ 3,088,850
------------
Automobile Manufacturers - 1.7%
6,955,000 Ford Motor Credit Corp., 7.375%, 10/28/09 $ 6,426,253
EURO 5,020,000 General Motors, 7.25%, 7/3/13 4,869,348
4,250,000 General Motors Acceptance Corp., 6.75%,
12/1/14 (c) 3,873,556
------------
$ 15,169,157
------------
Tires & Rubber - 1.0%
8,715,000 Goodyear Tire & Rubber, 9.0%, 7/1/15 $ 8,976,450
------------
Total Automobiles & Components $ 27,234,457
------------
Consumer Durables & Apparel - 1.7%
Homebuilding - 1.7%
4,120,000 Urbi Desarrollos Urbanos, 8.5%, 4/19/16 (144A) $ 4,161,200
5,100,000 WCI Communities, Inc., 6.625%, 3/15/15 (c) 4,449,750
1,695,000 WCI Communities, Inc., 7.875%, 10/1/13 1,614,488
3,750,000 William Lyon Homes, 7.5%, 2/15/14 3,215,625
2,480,000 William Lyon Homes, 7.625%, 12/15/12 2,139,000
------------
$ 15,580,063
------------
Total Consumer Durables & Apparel $ 15,580,063
------------
Consumer Services - 3.8%
Casinos & Gaming - 2.1%
3,450,000 Codere Finance Luxembourg SA., 8.25%, 6/15/15 $ 4,655,724
6,260,000 Little Traverse Bay Odawa Inn, 10.25%,
2/15/14 (144A) 6,166,100
1,705,000 MTR Gaming Group, 9.75%, 4/1/10 1,811,563
1,855,000 San Pasqual Casino, 8.0%, 9/15/13 (144A) 1,873,550
------------
$ 14,506,937
------------
Hotels, Resorts & Cruise Lines - 1.2%
6,490,000 Galaxy Entertainment Financial, 9.875%,
12/15/12 (144A) $ 6,717,150
1,000,000 HRP Myrtle Beach, Floating Rate Note,
4/1/12 (144A) 1,005,000
2,725,000 Station Casinos, Inc., 6.625%, 3/15/18 (144A) 2,592,156
6,125,000 Trump Entertainment Resorts, 8.5%, 6/1/15 6,033,125
------------
$ 16,347,431
------------
Specialized Consumer Services - 0.5%
3,450,000 Tui AG, Floating Rate Note, 12/10/10 (144A) $ 4,318,510
------------
Total Consumer Services $ 35,172,878
------------
The accompanying notes are an integral part of these financial statements. 23
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
Media - 6.2%
Broadcasting & Cable TV - 4.4%
$ 8,840,000 C&M Finance, Ltd., 8.1%, 2/1/16 (144A) $ 8,739,551
7,000,000 Cablemas SA de CV, 9.375%, 11/15/15 (144A) 7,507,500
8,040,000 Huges Network System, 9.5%, 4/15/14 (144A) 8,190,750
EURO 1,875,000 Kabel BW Holdings GMBH, Floating Rate Note,
2/3/15 2,447,518
EURO 4,112,435 Kabel Deutsch Holding, Floating Rate Note,
12/15/14 (144A) 5,510,770
EURO 7,200,000 Kabel Deutschland GMBH, 10.625%, 7/1/14 7,776,000
------------
$ 40,172,089
------------
Movies & Entertainment - 1.2%
10,770,000 Corp Interamer De Entret, 8.875%,
6/14/15 (144A) $ 10,678,455
------------
Publishing - 0.6%
2,665,000 Sheridan Acquisition Corp. 10.25%, 8/15/11 $ 2,744,950
3,580,000 Visant Holding Corp., Step Coupon, 12/1/13 2,783,450
------------
$ 5,528,400
------------
Total Media $ 56,378,944
------------
Retailing - 0.7%
Computer & Electronics Retail - 0.4%
3,835,000 GSC Holdings Corp., 8.0%, 10/1/12 (144A) $ 3,839,794
------------
Distributors - 0.3%
EURO 2,150,000 Central Eur Distribution Corp., 8.0%,
7/25/12 (144A) $ 2,969,183
------------
Specialty Stores - 0.0%
20,000 Hines Nurseries, Inc., 10.25%, 10/1/11 $ 19,800
------------
Total Retailing $ 6,828,777
------------
Food & Drug Retailing - 1.7%
Drug Retail - 0.5%
4,685,000 Duane Reade, Inc., 9.75%, 8/1/11 $ 3,759,713
375,000 Duane Reade, Inc., Floating Rate Note,
12/15/10 (c) 373,125
------------
$ 4,132,838
------------
Food Distributors - 1.2%
5,650,000 Doane Pet Care Co., 10.625%, 11/15/15 $ 6,893,000
4,095,000 Wornick Co., 10.875%, 7/15/11 4,238,325
------------
$ 11,131,325
------------
Total Food & Drug Retailing $ 15,264,163
------------
24 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
Food, Beverage & Tobacco - 1.4%
Agricultural Products - 0.9%
$ 9,080,000 Cosan SA Industria, 8.25%, 12/1/49 (144A) $ 8,762,200
------------
Brewers - 0.5%
4,269,000 Argentine Beverages, 7.375%, 3/22/12 (144A) $ 4,285,009
120,000 Cia Brasileira de Bebida, 8.75%, 9/15/13 136,500
------------
$ 4,421,509
------------
Total Food, Beverage & Tobacco $ 13,183,709
------------
Health Care Equipment & Services - 2.8%
Health Care Equipment - 1.1%
2,800,000 Accellent, Inc., 10.5%, 12/1/13 $ 3,010,000
7,119,000 Hanger Orthopedic Group, 10.375%, 2/15/09 (c) 7,368,165
------------
$ 10,378,165
------------
Health Care Services - 0.9%
1,760,000 AMR Holdco/Emcar Holdco, 10.0%, 2/15/15 $ 1,883,200
2,900,000 Medical Services Co., Floating Rate Note,
10/15/11 (144A) 2,508,500
3,665,000 Rural/Metro Corp., 9.875%, 3/15/15 3,944,456
------------
$ 8,336,156
------------
Managed Health Care - 0.8%
6,600,000 Multiplan, Inc., 10.375% 4/15/16 (144A) $ 6,707,250
------------
Total Health Care Equipment & Services $ 25,421,571
------------
Pharmaceuticals & Biotechnology - 1.4%
Biotechnology - 0.1%
1,615,000 Angiotech Pharmaceutical, 7.75%, 4/1/14 (144A) $ 1,623,075
------------
Pharmaceuticals - 1.2%
11,200,000 Warner Chilcott Corp., 9.0%, 2/1/15 (144A) $ 11,144,000
------------
Total Pharmaceuticals & Biotechnology $ 12,767,075
------------
Banks - 2.5%
Diversified Banks - 2.5%
6,575,000 ATF Bank JSC, 9.25%, 4/12/12 (144A) $ 6,766,990
3,750,000 Kazkommerts Finance 2 BV, Floating Rate Note,
11/29/49 3,871,875
1,650,000 Kazkommerts International BV, 8.0%, 11/3/15 1,650,000
3,495,000 Russian Stand Bank, 7.5%, 10/7/10 (144A) 3,363,938
7,070,000 Turanalem Finance BV, 8.5%, 2/10/15 (144A) 7,158,375
------------
$ 22,811,178
------------
Total Banks $ 22,811,178
------------
The accompanying notes are an integral part of these financial statements. 25
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
Diversified Financials - 1.9%
Investment Banking & Brokerage - 0.2%
$ 2,000,000 Sistema Finance SA, 10.25%, 4/14/08 $ 2,115,600
------------
Diversified Financial Services - 0.2%
1,625,000 Bombardier Capital, Inc., 7.09%, 3/30/07 $ 1,631,175
------------
Specialized Finance - 1.5%
6,640,000 Dollar Financial Group, 9.75%, 11/15/11 $ 6,988,600
6,125,000 Da-Lite Screen Co., Inc., 9.5%, 5/15/11 6,507,813
------------
$ 13,496,413
------------
Total Diversified Financials $ 17,243,188
------------
Insurance - 1.4%
Life & Health Insurance - 0.5%
4,191,000 Presidential Life Corp., 7.875%, 2/15/09 $ 4,191,000
------------
Multi-Line Insurance - 0.0%
300,000 Hanover Insurance Group, 7.625%, 10/15/25 $ 297,284
------------
Property & Casualty Insurance - 0.2%
2,000,000 Kingsway America, Inc., 7.5%, 2/1/14 $ 1,991,426
------------
Reinsurance - 0.7%
500,000 Odyssey Re Holdings, 7.65%, 11/1/13 $ 496,600
5,755,000 Platinum Underwriters HD, 7.5%, 6/1/17 5,619,631
------------
$ 6,116,231
------------
Total Insurance $ 12,595,941
------------
Real Estate - 0.5%
Real Estate Investment Trust - 0.5%
5,025,000 Trustreet Properties Inc., 7.5%, 4/1/15 $ 5,037,563
------------
Total Real Estate $ 5,037,563
------------
Software & Services - 0.1%
Application Software - 0.1%
1,000,000 Serena Software, 10.375%, 3/15/16 (144A) $ 1,065,000
------------
Total Software & Services $ 1,065,000
------------
Technology Hardware & Equipment - 0.5%
Electronic Manufacturing Services - 0.5%
4,460,000 Sanmina-Sci Corp., 6.75%, 3/1/13 (c) $ 4,270,450
------------
Total Technology Hardware & Equipment $ 4,270,450
------------
Semiconductors - 0.1%
1,475,000 Magnachip Semiconductor, 8.0%, 12/15/14 $ 1,375,438
------------
Total Semiconductors $ 1,375,438
------------
26 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
Telecommunication Services - 7.8%
Integrated Telecommunication Services - 1.6%
$ 3,950,000 Dycom Industries, 8.125%, 10/15/15 $ 4,068,500
7,310,000 Eschelon Operating Co, 8.375%, 3/15/10 7,017,600
2,000,000 Nordic Telephone Co., Holdings, Floating Rate
Note, 5/1/16 (144A) 2,598,074
500,000 Nordic Telephone Co., Holdings, Floating Rate
Note, 5/1/16 649,519
630,000 Tele Norte Leste Participacoes , 8.0%, 12/18/13 670,950
------------
$ 15,004,643
------------
Wireless Telecommunication Services - 6.2%
EURO 6,475,000 Cell C Pty, Ltd., 11.0%, 7/1/15 (144A) $ 6,993,000
EURO 1,885,000 Cell C Pty, Ltd., 8.625%, 7/1/12 (144A) 2,573,496
4,885,000 Cleveland Unlimited, Inc., Floating Rate Note,
12/15/10 (144A) 5,080,400
3,300,000 Digicel, Ltd., 9.25%, 9/1/12 (144A) 3,489,750
2,350,000 Horizon PCS Inc., 11.375%, 7/15/12 2,667,250
6,870,000 Inmarsat Finance Plc, Floating Rate Note,
11/15/12 5,908,200
4,980,000 Mobile Telesystems Finance, 8.0%, 1/28/12 5,048,475
1,889,000 Mobile Telesystems Finance, 8.375%,
10/14/10 (144A) 1,948,031
CAD 10,000 Rogers Cantel, Inc., 10.5%, 6/1/06 8,977
CAD 5,700,000 Rogers Wireless, Inc., 7.625%, 12/15/11 5,423,479
5,700,000 Stratos Global Corp., 9.875%, 2/15/13 (144A) 5,721,375
850,000 UBS Vimpelcom, 10.0%, 6/16/09 917,830
900,000 UBS Vimpelcom, 10.0%, 6/16/09 (144A) 972,000
2,000,000 UBS Vimpelcom, 8.375%, 10/22/11 (144A) 2,072,500
10,940,000 Zeus Special Sub, Ltd., Floating Rate Note,
2/1/15 (144A) (c) 7,931,500
------------
$ 56,756,263
------------
Total Telecommunication Services $ 71,760,906
------------
Utilities - 1.3%
Electric Utilities - 1.2%
6,507,000 AES Chivor, 9.75%, 12/30/14 (144A) $ 7,320,370
2,553,126 Juniper Generation, 6.79%, 12/31/14 (144A) 2,449,440
1,960,000 Light Servicos Eletricidade, Floating Rate Note,
7/25/13 1,925,700
------------
$ 11,695,510
------------
The accompanying notes are an integral part of these financial statements. 27
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
Multi-Utilities - 0.0%
$ 460,000 Reliant Energy, Inc., 6.75%, 12/15/14 $ 418,600
------------
Total Utilities $ 12,114,110
------------
TOTAL CORPORATE BONDS
(Cost $818,422,524) $831,899,756
------------
FOREIGN GOVERNMENT BONDS - 1.6%
ITL 2,100,000,000 Banco Nac De Desen Econo, 8.0%, 4/28/10 $ 1,518,250
BRL 4,950,000 Federal Republic of Brazil, 12.5%, 1/5/16 2,361,772
BRL 2,405,000 Federal Republic of Brazil, 7.875%, 3/7/15 2,590,185
COP 1,650,000 Republic of Colombia, 10.75%, 1/15/13 2,050,125
COP 2,510,000,000 Republic of Columbia, 11.75%, 3/1/10 1,173,089
COP 10,258,000,000 Republic of Columbia, 12.0%, 10/22/15 5,087,923
285,000 Republic of Ecuador, Floating Rate Note,
8/15/30 (d) 294,262
------------
$ 15,075,606
------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $13,623,394) $ 15,075,606
------------
MUNICIPAL BONDS - 0.0%
Government - 0.0%
Municipal Airport - 0.0%
15,000 New Jersey Economic Development Authority
Special Facility Revenue, 7.0%, 11/15/30 $ 15,197
------------
Municipal Facilities - 0.0%
250,000 East Chicago Exempt Facilities, 7.0%, 1/1/14 $ 262,973
------------
TOTAL MUNICIPAL BONDS
(Cost $229,929) $ 278,170
------------
WARRANTS - 0.0%
Materials - 0.0%
Forest Products - 0.0%
3,250 Mandra Forestry-CW13, Warrants, Exp. 5/15/13* $ -
------------
Total Materials $ -
------------
Capital Goods - 0.0%
Building Products - 0.0%
133,000 Thule Drilling ASA-CW07* $ -
------------
Total Capital Goods $ -
------------
28 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
Transportation - 0.0%
Railroads - 0.0%
$ 5,250 Atlantic Express Transportation, Exp. 4/15/08 ** $ -
------------
TOTAL WARRANTS
(Cost $0) $ -
------------
TEMPORARY CASH INVESTMENTS - 4.6%
Repurchase Agreement - 1.2%
11,000,000 UBS Warburg, Inc., 4.6%, dated 4/28/06,
repurchase price of of $11,000,000 plus
accrued interest on 5/1/06, collateralized by
$11,305,000 U.S. Treasury Bill, 4.545%,
6/22/06 $ 11,000,000
------------
Shares
SECURITY LENDING COLLATERAL - 3.4%
31,168,665 Securities Lending Investment Fund, 4.75% $ 31,168,665
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $42,168,665) $ 42,168,665
------------
TOTAL INVESTMENT IN SECURITIES - 101.3%
(Cost $914,058,444) (a)(b) $930,339,404
------------
OTHER ASSETS AND LIABILITIES - (1.3)% $(11,710,766)
------------
TOTAL NET ASSETS - 100.0% $918,628,638
============
* Non-income producing security
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, 2006, the
value of these securities amounted to $410,842,252 or 44.7% of total net
assets.
STEP Debt obligation initially issued at one coupon which converts to another
couple at a specific date. The rate shown is the rate at the end of the
period.
(a) At April 30, 2006, the net unrealized gain on investments based on cost
for federal income tax purposes of $914,227,979 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $ 29,265,279
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (13,153,854)
------------
Net unrealized gain $ 16,111,425
============
The accompanying notes are an integral part of these financial statements. 29
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
(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 56.3%
Norway 4.8
Brazil 4.6
Mexico 4.0
Canada 3.5
Luxembourg 3.5
Bermuda 3.5
Netherlands 2.7
Germany 2.5
United Kingdom 2.3
Cayman Islands 2.1
Columbia 1.8
South Africa 1.8
Denmark 1.4
Panama 1.3
Argentina 1.0
France 1.0
South Korea 1.0
Other (Individually less than 1%) 1.9
----
100%
====
(c) At April 30, 2006, the following securities were out on loan:
Principal
Amount
USD ($) Description Value
$ 607,000 AMR Corp, 10.2%, 3/15/20 $ 610,035
3,603,250 Graham Packaging Co., 9.875%, 10/15/14 3,817,630
3,112,900 General Motors Acceptance Corp., 6.75%, 12/1/14 2,969,707
7,410,000 Graphic Packaging Co., 9.5%, 8/15/13 7,454,460
4,716,000 Hanger Orthopedic Group, 10.375%, 2/15/09 5,057,910
508,000 Polyone Corp., 8.875%, 5/1/12 548,140
4,319,000 Sanmina-Sci Corp., 6.75%, 3/1/13 4,275,810
2,697,000 United Rentals NA, Inc., 7.75%, 11/15/13 2,865,563
3,095,400 WCI Communities, Inc., 6.625%, 3/15/15 2,773,941
1,097,200 Zeus Special Sub, Ltd., Floating Rate Note, 2/1/15 (144A) 795,470
-----------
Total $31,168,666
===========
(d) Debt obligation initially issued at on 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
denoted:
EURO Euro
COP Columbian Peso
ITL Italian Lira
NOK Norwegian Kroner
CAD Canadian Dollar
BRL Brazilian Lira
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 2006 aggregated $304,853,142 and $163,333,527,
respectively.
30 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 4/30/06 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (including securities loaned of
$31,168,666) (cost $914,058,444) $930,339,404
Cash 10,662,010
Foreign currencies, at value (cost $3,878,831) 4,175,947
Receivables -
Investment securities sold 1,998,182
Fund shares sold 6,669,606
Interest 19,793,789
Due from Pioneer Investment Management, Inc. 7,406
Other 35,711
------------
Total assets $973,682,055
------------
LIABILITIES:
Payables -
Investment securities purchased $ 18,760,966
Fund shares repurchased 2,364,512
Dividends 2,406,042
Upon return of securities loaned 31,168,665
Due to affiliates 322,868
Accrued expenses 30,365
------------
Total liabilities $ 55,053,418
------------
NET ASSETS:
Paid-in capital $898,654,838
Undistributed net investment income 657,961
Accumulated net realized gain on investments and foreign
currency transactions 2,767,002
Net unrealized gain on investments 16,280,960
Net unrealized gain on other assets and liabilities
denominated in foreign currencies 267,877
------------
Total net assets $918,628,638
============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $463,650,512/37,877,934 shares) $ 12.24
============
Class B (based on $114,755,134/9,394,533 shares) $ 12.22
============
Class C (based on $340,212,921/27,930,603 shares) $ 12.18
============
Class Y (based on $10,071/837 shares) $ 12.03
============
MAXIMUM OFFERING PRICE:
Class A ($12.24 [divided by] 95.5%) $ 12.82
============
The accompanying notes are an integral part of these financial statements. 31
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/06
INVESTMENT INCOME:
Interest $33,733,452
Income from securities loaned, net 122,603
-----------
Total investment income $33,856,055
-----------
EXPENSES:
Management fees $ 2,729,412
Transfer agent fees and expenses
Class A 251,361
Class B 78,514
Class C 189,309
Class Y 246
Distribution fees
Class A 486,706
Class B 528,991
Class C 1,545,982
Administrative reimbursements 70,501
Custodian fees 19,367
Registration fees 41,250
Professional fees 46,686
Printing expense 25,883
Fees and expenses of nonaffiliated trustees 7,783
Miscellaneous 6,898
-----------
Total expenses $ 6,028,889
Less management fees waived and expenses
reimbursed by Pioneer Investment Management, Inc. (28,524)
Less fees paid indirectly (9,370)
-----------
Net expenses $ 5,990,995
-----------
Net investment income $27,865,060
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on:
Investments $ 2,624,877
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 143,267 $ 2,768,144
----------- -----------
Change in net unrealized gain on:
Investments $23,010,770
Other assets and liabilities denominated in
foreign currencies 289,351 $23,300,121
----------- -----------
Net gain on investments $26,068,265
-----------
Net increase in net assets resulting from operations $53,933,325
===========
32 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/06 and the Year Ended 10/31/05
Six Months
Ended Year
4/30/06 Ended
(unaudited) 10/31/05
FROM OPERATIONS:
Net investment income $ 27,865,060 $ 35,968,778
Net realized gain on investments 2,768,144 2,360,771
Change in net unrealized gain (loss) on investments 23,300,121 (12,150,887)
-------------- --------------
Net increase in net assets resulting
from operations $ 53,933,325 $ 26,178,662
-------------- --------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.44 and $0.90 per share, respectively) $ (14,137,769) $ (17,088,531)
Class B ($0.39 and $0.80 per share, respectively) (3,456,055) (4,312,340)
Class C ($0.39 and $0.80 per share, respectively) (10,140,327) (14,293,466)
Class Y ($0.29 and $0.00 per share, respectively) (240)
Net realized gain:
Class A ($0.03 and $0.00 per share, respectively) (987,789) -
Class B ($0.03 and $0.00 per share, respectively) (283,524) -
Class C ($0.03 and $0.00 per share, respectively) (831,672) -
-------------- --------------
Total distributions to shareowners $ (29,837,376) $ (35,694,337)
-------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 275,868,837 $ 674,647,326
Reinvestment of distributions 14,959,852 16,405,125
Cost of shares repurchased (126,973,657) (133,942,624)
Redemption Fees 15,585 95,912
-------------- --------------
Net increase in net assets resulting from
Fund share transactions $ 163,870,617 $ 557,205,739
-------------- --------------
Net increase in net assets $ 187,966,566 $ 547,690,064
NET ASSETS:
Beginning of period 730,662,072 182,972,008
-------------- --------------
End of period (including undistributed net investment
income of $657,961 and $527,291 respectively) $ 918,628,638 $ 730,662,072
============== ==============
The accompanying notes are an integral part of these financial statements. 33
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
'06 Shares '06 Amount '05 Shares '05 Amount
CLASS A (unaudited) (unaudited)
Shares sold 14,481,360 $ 174,908,204 28,487,580 $ 344,805,683
Reinvestment of distributions 711,099 8,593,580 725,075 8,745,645
Less shares repurchased (6,255,087) (75,308,078) (6,212,612) (74,793,960)
---------- ------------- ---------- -------------
Net increase 8,937,372 $ 108,193,706 23,000,043 $ 278,757,368
========== ============= ========== =============
CLASS B
Shares sold 1,881,538 $ 22,621,804 7,207,460 $ 87,051,659
Reinvestment of distributions 130,994 1,579,351 148,205 1,783,405
Less shares repurchased (923,650) (11,110,600) (785,108) (9,433,668)
---------- ------------- ---------- -------------
Net increase 1,088,882 $ 13,090,555 6,570,557 $ 79,401,396
========== ============= ========== =============
CLASS C
Shares sold 6,528,301 $ 78,328,841 20,153,947 $ 242,885,896
Reinvestment of distributions 398,499 4,786,921 489,403 5,876,075
Less shares repurchased (3,382,496) (40,554,979) (4,138,449) (49,714,996)
---------- ------------- ---------- -------------
Net increase 3,544,304 $ 42,560,783 16,504,901 $ 199,046,975
========== ============= ========== =============
CLASS Y*
Shares sold 837 $ 9,988
Reinvestment of distributions - -
Less shares repurchased - -
---------- -------------
Net increase 837 $ 9,988
========== =============
* Class Y Shares were first publicly offered on December 28, 2005
34 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/06 Year Ended Year Ended Year Ended Year Ended 8/27/01 to
(unaudited) 10/31/05 10/31/04 10/31/03 10/31/02 10/31/03
CLASS A
Net asset value, beginning of period $ 11.88 $ 11.79 $ 11.31 $ 8.56 $ 9.51 $ 10.00
--------- --------- --------- --------- --------- ---------
Increase (decrease) from investment operations:
Net investment income $ 0.44 $ 0.90 $ 0.69 $ 1.00 $ 1.02 $ 0.12
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.39 0.09 0.89 2.75 (0.95) (0.49)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) from investment
operations $ 0.83 $ 0.99 $ 1.58 $ 3.75 $ 0.07 $ (0.37)
Distributions to shareowners:
Net investment income (0.44) (0.90) (0.89) (1.00) (1.02) (0.12)
Net realized gain (0.03) - (0.21) - - -
--------- --------- --------- --------- --------- ---------
Total distributions $ (0.47) $ (0.90) $ (1.10) $ (1.00) $ (1.02) $ (0.12)
--------- --------- --------- --------- --------- ---------
Redemption Fee $ -(b) $ -(b) $ - $ - $ - $ -
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net asset value $ 0.36 $ 0.09 $ 0.48 $ 2.75 $ (0.95) $ (0.49)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 12.24 $ 11.88 $ 11.79 $ 11.31 $ 8.56 $ 9.51
========= ========= ========= ========= ========= =========
Total return* 7.13% 8.52% 14.82% 45.58% 0.31% (3.65)%
Ratio of net expenses to average net assets+ 1.10%** 1.04% 0.75% 0.75% 0.75% 0.75%**
Ratio of net investment income to average net
asets+ 7.34%** 7.40% 8.02% 9.76% 10.79% 7.17%**
Portfolio turnover rate 42%** 36% 50% 124% 47% 89%**
Net assets, end of period (in thousands) $ 463,651 $ 343,886 $ 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 1.12%** 1.18% 1.41% 14.37% 18.70% 30.55%**
Net investment income (loss) 7.32%** 7.26% 7.36% (3.68)% (7.16)% (22.63)%**
Ratios with waiver of management fees by PIM and
reduction for fees paid indirectly:
Net expenses 1.10%** 1.04% 0.75% 0.75% 0.75% 0.75%**
Net investment income 7.34%** 7.40% 8.02% 9.76% 10.79% 7.17%**
* 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.
(a) The Fund Commenced operations on 8/27/01 and was first publicly offered on
December 1, 2003.
(b) Amount rounds to less than one cent per share.
The accompanying notes are an integral part of these financial statements.
35
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended 12/1/03 (a)
4/30/06 Year Ended to
(unaudited) 10/31/05 10/31/04
CLASS B
Net asset value, beginning of period $ 11.85 $ 11.76 $ 11.47
--------- --------- ---------
Increase from investment operations:
Net investment income $ 0.39 $ 0.80 $ 0.82
Net realized and unrealized gain on
investments and foreign currency
transactions 0.39 0.09 0.49
--------- --------- ---------
Net increase from investment operations $ 0.78 $ 0.89 $ 1.31
Distributions to shareowners:
Net investment income (0.38) (0.80) (0.81)
Net realized gain (0.03) - (0.21)
--------- --------- ---------
Total distributioons $ (0.41) $ (0.80) $ (1.02)
--------- --------- ---------
Redemption Fee $ -(b) $ -(b) $ -
--------- --------- ---------
Net increase in net asset value $ 0.37 $ 0.09 $ 0.29
--------- --------- ---------
Net asset value, end of period $ 12.23 $ 11.85 $ 11.76
========= ========= =========
Total return* 6.80% 7.62% 12.12%
Ratio of net expenses to average net assets+ 1.88%** 1.91% 1.58%**
Ratio of net investment income to average
net assets+ 6.57%** 6.57% 7.26%**
Portfolio turnover rate 42%** 36% 50%
Net assets, end of period (in thousands) $ 114,755 $ 98,462 $ 20,408
Ratios with no waiver of management fees and
assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 1.88%** 1.97% 2.20%**
Net investment income 6.57%** 6.51% 6.64%**
Ratios with waiver of management fees paid by
PIM and reduction for fees paid indirectly:
Net expenses 1.88%** 1.91% 1.58%**
Net investment income 6.57%** 6.57% 7.26%**
* 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.
(a) Class B shares were first publicly offered on December 1, 2003.
(b) Amount rounds to less than one cent per share.
36 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended 12/1/03 (a)
4/30/06 Year Ended to
(unaudited) 10/31/05 10/31/04
CLASS C
Net asset value, beginning of period $ 11.82 $ 11.74 $ 11.47
--------- --------- ---------
Increase from investment operations:
Net investment income $ 0.39 $ 0.80 $ 0.77
Net realized and unrealized gain on
investments and foreign currency
transactions 0.39 0.08 0.47
--------- --------- ---------
Net increase from investment operations $ 0.78 $ 0.88 $ 1.24
Distributions to shareowners:
Net investment income (0.39) (0.80) (0.76)
Net realized gain (0.03) - (0.21)
--------- --------- ---------
Total distributions $ (0.42) $ (0.80) $ (0.97)
--------- --------- ---------
Redemption Fee $ -(b) $ -(b) $ -
--------- --------- ---------
Net increase in net asset value $ 0.36 $ 0.08 $ 0.27
--------- --------- ---------
Net asset value, end of period $ 12.18 $ 11.82 $ 11.74
========= ========= =========
Total return* 6.74% 7.60% 11.45%
Ratio of net expenses to average net assets+ 1.86%** 1.84% 1.51%**
Ratio of net investment income to average
net assets+ 6.59%** 6.63% 7.30%**
Portfolio turnover rate 42%** 36% 50%
Net assets, end of period (in thousands) $ 340,213 $ 288,314 $ 92,501
Ratios with no waiver of management fees and
assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 1.86%** 1.91% 2.11%**
Net investment income 6.59%** 6.56% 6.70%**
Ratios with waiver of management fees by PIM
and reduction for fees paid indirectly:
Net expenses 1.86%** 1.84% 1.51%**
Net investment income 6.59%** 6.63% 7.30%**
* 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.
(a) Class C shares were first publicly offered on December 1, 2003.
(b) Amount rounds to less than one cent per share.
The accompanying notes are an integral part of these financial statements. 37
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
12/28/05 (a) to
4/30/06
(unaudited)
CLASS Y
Net asset value, beginning of period $ 11.95
---------
Increase from investment operations:
Net investment income $ 0.09
Net realized and unrealized gain on investments and
foreign currency transactions 0.28
---------
Net increase from investment operations $ 0.37
Distributions to shareowners:
Net investment income (0.29)
---------
Total distributions $ (0.29)
---------
Redemption Fee -(b)
---------
Net increase in net asset value $ 0.08
---------
Net asset value, end of period $ 12.03
=========
Total return* 5.28%
Ratio of net expenses to average net assets+ 6.22%**
Ratio of net investment income to average net assets+ 2.36%**
Portfolio turnover rate 42%**
Net assets, end of period (in thousands) $ 10
Ratios with no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly:
Net expenses 8.06%**
Net investment income 0.51%**
Ratios with waiver of management fees by PIM and reduction
for fees paid indirectly:
Net expenses 6.22%**
Net investment income 2.36%**
* 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.
(a) Class Y shares were first publicly offered on December 28, 2005
(b) Amount rounds to less than one cent per share.
38 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/06 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Global High Yield Fund (the Fund) is a Delaware statutory trust
registered under the Investment Company Act of 1940 as a non-diversified,
open-end management investment company. The Fund was organized on May 5, 2001
and commenced operations on August 27, 2001. Prior to August 27, 2001 the Fund
had no operations other than those relating to organizational matters and the
initial capitalization of the Fund by Pioneer Funds Distributor, Inc. (PFD). The
Fund's shares, including Class A Shares, were first publicly offered on December
1, 2003. Prior to December 1, 2003, the Fund shares outstanding were owned by
PFD. The investment objective of the Fund is to maximize total return through a
combination of income and capital appreciation.
The Fund offers four classes of shares - Class A, Class B, Class C shares and
Class Y shares. Class Y shares were first publicly offered on December 28, 2005.
Each class of shares represents an interest in the same portfolio of investments
of the Fund and has 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, Class C, and
Class Y shareowners, respectively. There is no distribution plan for Class Y
shares. Class B shares convert to Class A shares eight years after the date of
purchase.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting period.
Actual results could differ from those estimates. The following is a summary of
significant accounting policies followed by the Fund in the preparation of its
financial statements, which are consistent with those policies generally
accepted in the investment company industry:
39
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
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 traded. Fixed income securities
with remaining maturity of more than 60 days 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 there are no
other readily available valuation methods 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 accurately reflects the value of the security. Temporary cash
investments are valued at amortized cost.
All 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
40
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making it more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. Information regarding the
Fund's principal risk is contained in the Fund's prospectus. Please refer
to these documents when considering the Fund's risks. 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.
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.
41
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
The Fund records realized gains and losses at the time a portfolio hedge
is offset by entry into a closing transaction or extinguished by delivery
of the currency. Risks may arise upon entering into these contracts from
the potential inability of counterparties to meet the terms of the
contract and from unanticipated movements in the value of foreign
currencies relative to the U.S. dollar. At April 30, 2006, the Fund had no
outstanding portfolio or settlement hedges.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as either from or in excess
of net investment income or net realized gain on investment transactions,
or from paid-in capital, depending on the type of book/tax differences that
may exist.
The tax character of current year distributions paid will be determined at
the end of the current fiscal year. The tax character of distributions paid
during the year ended October 31, 2005 was as follows:
- --------------------------------------------------------------------------------
2005
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 35,694,337
Long-term capital gain -
------------
Total $ 35,694,337
============
- --------------------------------------------------------------------------------
42
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2005:
- --------------------------------------------------------------------------------
2005
- --------------------------------------------------------------------------------
Undistributed ordinary income $ 2,825,576
Undistributed long-term gain 2,101,843
Dividend payable (2,128,749)
Unrealized appreciation (6,920,819)
-----------
Total $(4,122,149)
===========
- --------------------------------------------------------------------------------
The difference between book-basis and tax-basis unrealized appre ciation is
attributable to accrued interest on defaulted bonds.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. PFD,
the principal underwriter for the Fund and a wholly owned indirect
subsidiary of UniCredito Italiano S.p.A. (UniCredito Italiano), earned
$139,146 in underwriting commissions on the sale of Class A shares during
the year ended April 30, 2006.
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
43
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
same time, and in the same amount, except that Class A, Class B, and Class
C shares can bear different transfer agent and distribution fees.
G. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
payments in lieu of dividends on the securities loaned. Gain or loss on the
fair value of the loaned securities that may occur during the term of the
loan will be for the account of the Fund. The loans are secured by
collateral of at least 102%, at all times, of the fair value of the
securities loaned. The amount of collateral will be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. The
Fund has the right under the lending agreement to recover the securities
from the borrower on demand. The Fund invests cash collateral in the
Securities Lending Investment Fund, which is sponsored 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; and 0.65% of the next
$500 million; and 0.60% on the assets over $1 billion.
Effective 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 the Fund expenses to 1.10%, 2.00% and 2.00% of the average
daily net assets attributable to Class A, Class B and Class C shares,
respectively. These expense limitations are in effect through March 1, 2008 for
Class A shares and through March 1, 2006 for Class B and Class C shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At April 30,
44
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2006, $49,331 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 $28,028 in transfer agent
fees receivable from PIMSS at April 30, 2006.
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 $301,566
in distribution fees payable to PFD at April 30, 2006.
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 subscribed on or after December 1, 2004 that are
redeemed within five years of purchase are subject to a CDSC at declining rates
beginning at 4.00%, based on the lower of cost or market value of shares being
redeemed. Shares purchased prior to December 1, 2004, remain subject to the CDSC
in effect at the time those shares were purchased. Shares purchased as part of
an exchange or acquired as a result of a reorganization of another fund into the
Fund remain subject to any contingent deferred sales charge that applied to the
shares you originally purchased. Redemptions of
45
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/06 (unaudited) (continued)
- --------------------------------------------------------------------------------
Class C shares within one year of purchase are subject to a CDSC of 1.00%.
Proceeds from the CDSCs are paid to PFD. For the year ended April 30, 2006,
CDSCs in the amount of $221,989 were paid to PFD.
Effective March 2, 2004, the Fund charges a 2.00% redemption fee on Class A,
Class B, and Class C shares redeemed 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 April 30, 2006, the Fund collected $15,584 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 April 30, 2006, the Fund's expenses were
reduced by $9,370 under such arrangements.
46
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT
- --------------------------------------------------------------------------------
The Investment Company Act of 1940 requires that both the Board of Trustees and
a majority of the Independent Trustees (collectively "the Trustees") vote
separately annually to approve the Fund's management contract (the "Management
Contract"). The Trustees have determined that the terms of the Management
Contract are fair and reasonable and that renewal of the contract will enable
the Fund to receive quality investment advisory services at a cost deemed
reasonable and in the best interests of the Fund and its shareholders. In making
such determinations, the Independent Trustees relied upon the assistance of
counsel to the Independent Trustees and counsel to the Fund.
Throughout the year, the Independent Trustees regularly met in executive session
separately from the Interested Trustees of the Fund and any officer of Pioneer
Investment Management, Inc., the Fund's adviser (the "Investment Adviser"), or
its affiliates. While the Trustees, including the Independent Trustees, act on
all major matters relating to the Fund, a significant portion of the activities
of the Board of Trustees (including certain of those described herein) is
conducted through committees, the members of which are comprised exclusively of
Independent Trustees. Such committee meetings are attended by officers of the
Fund or the Investment Adviser to the extent requested by the members of the
committee.
In evaluating the Management Contract, the Trustees conducted a review that was
specifically focused upon the renewal of the Management Contract, and relied
upon their knowledge, resulting from their meetings throughout the year, of the
Investment Adviser, its services and the Fund. Both in meetings specifically
dedicated to renewal of the Management Contract and at other meetings during the
course of the year, the Trustees, including the Independent Trustees, received
materials relating to the Investment Adviser's investment and management
services under the Management Contract. These materials included (i) information
on the investment performance of the Fund, a peer group of funds and an index,
in each case selected by the Independent Trustees for this purpose, (ii) sales
and redemption data in respect to the Fund, (iii) the general investment outlook
in the markets in which the Fund invests, (iv) arrangements in respect of the
distribution of the Fund's shares, (v) the procedures employed to determine the
value of each of the Fund's assets, (vi) the Investment Adviser's management of
the relationships with the Fund's unaffiliated service providers, (vii) the
record of compliance with the Fund's investment policies and
47
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
restrictions and with the Fund's Code of Ethics and the structure and
responsibilities of the Investment Adviser's compliance department, (viii) the
nature, cost and character of non-investment management services provided by the
Investment Adviser and its affiliates and (ix) the disclosures included in the
Fund's prospectuses and reports to shareholders.
Specifically in connection with the Independent Trustees' review of the
Management Contract, the Independent Trustees requested and the Investment
Adviser provided additional information in order to evaluate the quality of the
Investment Adviser's services and the reasonableness of the fee under the
Management Contract. Among other items, this information included data or
analyses of (1) investment performance for one and three year periods for the
Fund and a peer group selected by the Independent Trustees for this purpose, (2)
management fees incurred by a peer group of funds selected by the Independent
Trustees for this purpose, (3) the advisory fees of comparable portfolios of
other clients of the Investment Adviser, (4) expense ratios for the Fund and a
peer group of funds selected by the Independent Trustees for this purpose, (5)
the overall organization of the Investment Adviser, (6) the Investment Adviser's
financial results and condition, including its and certain of its affiliates
profitability from services performed for the Fund, (7) transfer agency fees and
administrative reimbursements paid to the Investment Adviser or affiliates, (8)
investment management staffing, and (9) operating expenses paid to third
parties. The Trustees also reviewed information regarding the potential for the
Fund and the Investment Adviser to benefit from further economies of scale in
the management of the Fund in light of reasonable growth expectations for the
Fund, break points in the management fee for the Fund and a peer group selected
by the Independent Trustees for this purpose and certain of the Fund's expenses
that are not incurred as fees based on a percentage of net assets.
The following summarizes factors considered by the Trustees in connection with
reviewing the information described above and their renewal of the Fund's
Management Contract. The Trustees did not identify any single factor as
all-important or controlling, and the summary does not detail all the matters
that were considered.
A. Ancillary Benefits to Shareholders. The Trustees considered the benefits to
shareholders of investing in a Fund that is part of a
48
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
large number of investment companies offering a variety of investment
disciplines and providing for a large variety of Fund and shareholder
services.
B. Compliance and Investment Performance. The Trustees determined that the
Investment Adviser had policies and systems reasonably designed to achieve
compliance with the Fund's investment objectives and regulatory
requirements. The Trustees also reviewed the Fund's investment performance
based upon total return, as well as the Fund's performance compared to both
the performance of a peer group and an index, in each case selected by the
Independent Trustees for this purpose. The Fund's performance based upon
total return was in the first quintile of the peer group for the 12 months
ended June 30, 2005 and the first quintile for the three years ended June
30, 2005. (In all quintile rankings referred to throughout this discussion
first quintile is most favorable to the Fund's shareholders. Thus, highest
relative performance would be first quintile and lowest relative expenses
also would be first quintile.) The Trustees also considered the yield
(gross of expenses) on the class A shares of the Fund relative to the yield
(as of June 30, 2005) on the Merrill Lynch Global High Yield and EMP Index.
The Trustees concluded that the performance of the Fund supported the
continuation of the Management Contract.
C. The Investment Adviser's Personnel and Methods. The Trustees reviewed the
background of members of the team responsible for the daily management of
the Fund and the Fund's investment objective and discipline. The
Independent Trustees also have had discussions with senior management of
the Investment Adviser responsible for investment operations and the senior
management of the Investment Adviser's fixed income group. Among other
things, the Trustees considered the number, education and experience of the
Investment Adviser's investment staff and their use of technology and
emphasis on analytics in view of the risk profile of securities in which
the Fund invests. The Trustees concluded that the Investment Adviser had
the quality and depth of personnel and the well-developed methods essential
to performing its duties under the Management Contract.
49
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
D. Nature and Quality of Other Services. The Trustees considered the nature,
quality, cost and extent of other services provided to shareholders of the
Fund, including administrative and shareholder services performed by the
Investment Adviser under the Management Contract. The Trustees also
considered the reasonableness of the arrangements for reimbursement of the
Investment Adviser's out-of-pocket costs and expenses, including overhead,
for certain administrative services that the Investment Adviser is not
required to provide under the Management Contract. The Trustees also
considered the nature and extent of the other services provided by the
Investment Adviser's affiliates under other contracts and its supervision
of third party service providers. Based on these considerations, the
Trustees concluded that the nature, quality, cost and extent of such
services are satisfactory and reliable and serve the shareholders of the
Fund well.
E. Management Fee and Expenses. The Trustees considered the Investment
Adviser's fee under the Management Contract relative to the management fees
charged by a peer group of funds selected by the Independent Trustees for
this purpose using data provided by an independent third party. The Fund's
management fee for the 12 months ended June 30, 2005 was in the fourth
quintile relative to the management fees paid by the other funds in that
peer group for the comparable period. The Trustees determined that the fee
under the Management Contract was reasonable and fair in light of both the
overall nature and quality of services provided by the Investment Adviser
and the fees charged by the funds in the peer group. The Trustees also
considered the Fund's expense ratio and expense ratios of a peer group of
funds selected by the Independent Trustees for this purpose. The Fund's
expense ratio for the 12 months ended June 30, 2005 was in the first
quintile (after expense limitations) relative to the expense ratios paid by
other funds in that peer group for that comparable period. The Trustees
concluded that the Fund's overall expense ratio was reasonable compared to
the expense ratios of similar funds.
F. Profitability. The Trustees considered the level of the Investment
Adviser's profits with respect to the management of the Pioneer Funds,
including details with respect to the Fund. This
50
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
consideration included a review of the Investment Adviser's methodology in
allocating certain of its costs to the management of each Fund. The
Trustees also considered the financial results realized by the Investment
Adviser in connection with the operation of the Fund. They further
considered the profits realized by the Investment Adviser and its
affiliates from non-fund businesses that may benefit from or be related to
the Fund's business. The Trustees considered the Investment Adviser's
profit margins in comparison with the limited available industry data. The
Trustees concluded that the Investment Adviser's profits from management of
the Pioneer Funds, including the financial results derived from the Fund,
bear a reasonable relationship to the services rendered and are fair for
the management of the Fund.
G. Economies of Scale. The Trustees considered the economies of scale with
respect to the management of the Fund, whether the Fund had appropriately
benefited from any economies of scale, and whether there was potential for
realization of any further economies of scale. Because of break points in
the management fee, the Trustees concluded that any perceived or potential
economies of scale would be shared at future asset levels in a reasonable
manner as the Fund grows in size between Fund's shareholders and the
Investment Adviser.
H. Other Benefits to the Investment Adviser. The Trustees also considered the
character and amount of fees paid by the Fund, other than under the
Management Contract, for services provided by the Investment Adviser and
affiliates, including fees for services such as shareholder services. The
Trustees also considered the receipt of sales loads and payments under Rule
12b-1 plans in respect to the Pioneer Funds (including the Fund). The
Trustees further considered the revenues and profitability of the
Investment Adviser's businesses other than the fund business, including the
Investment Adviser's institutional investment advisory business. The
Trustees considered the intangible benefits that accrue to the Investment
Adviser and its affiliates by virtue of its relationship with the Fund and
the Pioneer Funds as a group. The Trustees concluded that all these types
of benefits accruing to the Investment Adviser were reasonable in the
context of the overall relationship between the Investment Adviser and the
Fund.
51
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
Conclusion. The Trustees, in light of the Investment Adviser's overall
performance, considered it appropriate to continue to retain the management
services of the Investment Adviser. Based on their evaluation of all material
factors deemed relevant and the advice of independent counsel, the Trustees
concluded that the Management Contract with the Fund is fair and reasonable and
voted to approve the continuation of the Management Contract for another year.
52
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Osbert M. Hood, Executive
Mary K. Bush Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Osbert M. Hood Dorothy E. Bourassa, Secretary
Thomas J. Perna
Marguerite A. Piret
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll-free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at pioneerinvestments.com. This information is also available on the Securities
and Exchange Commission's web site at http://www.sec.gov.
53
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
54
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
55
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
56
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
57
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
58
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
59
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
60
- --------------------------------------------------------------------------------
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@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
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. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's independent auditor, Ernst &
Young LLP ("E&Y"), has advised the Audit
Committee of the Fund's Board of Trustees that
E&Ys Spanish affiliate (E&Y Spain) performed
certain non-audit work for Pioneer Global
Investments Limited ("PGIL"), an affiliate of the
Funds investment adviser. The services involved
the receipt and disbursement of monies transferred
to E&Y Spain by PGIL in payment of individual
payroll and related income tax withholdings due on
returns prepared by E&Y Spain for certain PGIL
employees located in Spain from February 2001 to
October 2005. E&Y became auditors of the Fund in
May 2002. These payroll and tax services were
discontinued in November 2005. The annual fee
received by E&Y Spain for all such services totaled
approximately 9,000 Euro per year. E&Y has informed
the Audit Committee that based on its internal
reviews and the de minimus nature of the services
provided and fees received, E&Y does not believe
its independence with respect to the Fund has been
impaired or that it is disqualified from acting as
independent auditors to the Fund.
N/A
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive 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 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Global High Yield Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date June 30, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date June 30, 2006
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date June 30, 2006
* Print the name and title of each signing officer under his or her signature.