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 811-10395
Pioneer Series Trust VII
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Amundi Pioneer Asset Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2016 through October 31, 2017
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Global Multisector
Income Fund
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Annual Report | October 31, 2017
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Ticker Symbols:
Class A PGABX
Class C PGCBX
Class Y PGYBX
[LOGO] Amundi Pioneer
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ASSET MANAGEMENT
visit us: www.amundipioneer.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 43
Notes to Financial Statements 50
Report of Independent Registered Public Accounting Firm 67
Additional Information 68
Trustees, Officers and Service Providers 71
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 1
President's Letter
Robust, synchronized global economic growth and rising corporate profits have
continued to drive strong performance in both the credit and equity markets for
most of 2017. U.S. stocks, as measured by the Standard & Poor's 500 Index,
returned 14.23% through the end of the third quarter. Fixed-income markets,
while not generating the same dazzling returns as equities, held their own, led
by high-yield securities, which produced a return of 7.05% in the U.S., as
measured by the Bank of America Merrill Lynch U.S. High Yield Index. Meanwhile,
the Bloomberg Barclays U.S. Aggregate Bond Index returned 3.14% over the first
three quarters of the calendar year.
Continued strong employment numbers and higher consumer confidence, together
with solid global economic growth and a depreciating U.S. dollar contributed to
better-than-expected U.S. gross domestic product (GDP) growth of more than 3% in
both the second and third quarters. Outside the U.S., economic growth in the
second quarter also surprised to the upside across the Euro zone, China, and
Japan. Meanwhile, despite higher oil and commodities prices, inflation continued
to be moderate, both in the U.S. and globally, enabling major non-U.S. central
banks to maintain their easy monetary policies. As expected, however, the U.S.
Federal Reserve System (the Fed) recently announced that it would commence
tapering its balance sheet this October. The Fed also appears primed to raise
interest rates one more time before the end of this year, which would be the
fourth rate increase since December of 2016.
As we move into the final months of 2017, we believe the U.S. economy will
experience modest growth in the short term, depending on the mix of economic
policies enacted as the country moves away from monetary stimulus (driven by the
Fed) and toward fiscal stimulus (potentially including tax reform) as well as
lighter regulatory burdens. Meanwhile, corporate earnings remain solid and we
think they will improve even further, despite the possibility of some pressure
from wage increases. In addition, it is our view that the economy will continue
to grow and that we may begin to see a modest upturn in inflation. In that
scenario, we anticipate that the Fed will continue to raise interest rates.
While economic and market conditions appear solid, there are always risks to
consider that could dampen the outlook. Geopolitical concerns, such as increased
tensions with North Korea, and continued political gridlock in Washington are
just some of the risks that could lead to increased market volatility.
2 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
It is for those reasons that we at Amundi Pioneer continue to believe that
investors can benefit from the experience and tenure of our investment teams who
make active and informed decisions across our funds.
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
October 31, 2017
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 3
Portfolio Management Discussion | 10/31/17
Domestic and global economic growth trends remained solid, while inflationary
pressures stayed largely under control during the 12 months ended October 31,
2017, providing a firm investment foundation for credit-linked debt in world
fixed-income markets. At the same time, the bull market for the U.S. dollar
(USD) ended its four-year run due to growing expectations of a convergence of
monetary policy among the world's major central banks, with some, including the
European Central Bank (ECB), the Bank of Japan, and the Bank of England
beginning to tighten monetary policy and/or taper their quantitative easing
efforts. In the following interview, Charles Melchreit, Andrew Feltus, and
Paresh Upadhyaya discuss the factors that affected the performance of Pioneer
Global Multisector Income Fund during the 12-month period. Mr. Melchreit, Deputy
Head of Fixed Income, Director of Multisector Fixed Income, a senior vice
president, and a portfolio manager at Amundi Pioneer Asset Management, Inc.
("Amundi Pioneer"), Mr. Feltus, Co-Director of High Yield, a senior vice
president, and a portfolio manager at Amundi Pioneer, and Mr. Upadhyaya,
Director of Currency Strategy, a senior vice president, and a portfolio manager
at Amundi Pioneer, are responsible for the day-to -day management of the Fund,
along with Kenneth J. Taubes, Executive Vice President, Director of U.S.
Investment Management, Head of Fixed Income, and a portfolio manager at Amundi
Pioneer.
Q How did the Fund perform during the 12-month period ended October 31, 2017?
A Pioneer Global Multisector Income Fund's Class A shares returned 3.75% at
net asset value during the 12-month period ended October 31, 2017, while
the Fund's benchmark, the Bloomberg Barclays Global Aggregate Bond Index
(the Bloomberg Barclays Index), returned 1.18%. During the same period, the
average return of the 206 mutual funds in Lipper's Global Income Funds
category was 2.80%, and the average return of the 312 mutual funds in
Morningstar's World Bond Funds category was 3.12%.
Q How would you describe the investment environment for fixed-income
securities during the 12 months ended October 31, 2017?
A The period was marked by generally uninterrupted optimism about economic
growth, highly accommodative financial conditions, and the prospects for
continued corporate earnings gains, both globally and in the United States.
High-yield corporates, emerging markets debt, and other sectors with higher
credit risk continued to outperform groups more sensitive to interest-rate
changes, such as U.S. Treasuries and other higher-quality debt instruments.
The sustained rally in credit-sensitive debt
4 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
actually began after the high-yield market bottomed in February 2016, seven
months before the start of the period. In the subsequent, extended rally, U.S.
and international high-yield corporate bonds, emerging markets debt, and other
asset classes that tend to be more affected by the state of the global economy
performed well. Although the market surge did experience brief pauses and even
temporary reversals, most often related to political uncertainties in the United
States or in Europe, the positive environment generally continued unabated as
investors maintained an optimistic outlook for both the domestic and global
economies.
In the United States, after a slow start in the first calendar quarter of 2017,
the economy generally expanded at an impressive, above-trend growth rate of 3%
or higher in the second and third quarters, and the nation's unemployment rate
fell from 4.8% to 4.1% between October 2016 and October 2017. The election of
Republican Donald Trump as U.S. president in November 2016 only briefly
interrupted a rally in the credit market as investors ultimately came to
interpret the results as a victory for pro-growth economic policies. In Europe,
despite some evidence of increasing political nationalism and anti-European
Union sentiment in advance of national elections in several countries, the
eventual election results seemed to calm worries about anti-global trends. The
European economy, meanwhile, continued to improve over the full 12-month period,
while the euro, too, strengthened on currency markets. While European corporate
high-yield bonds performed similarly to U.S. high-yield corporates during the
period, emerging markets securities performed even better, helped significantly
by rallies in commodity markets spurred by increased worldwide demand.
U.S. monetary policy continued to tighten during the period, but the Federal
Reserve (the Fed) acted cautiously, raising short-term interest rates three
times over the 12 months, while carefully assessing economic trends. The rate
increases were widely expected, and their gradual implementation showed no
evidence of dampening the improvements in global economic growth. Late in the
period, the Fed began reducing the rather large balance sheet it had accumulated
through its multiple quantitative easing bond-buying programs from 2008 through
2014, but also at a gradual pace. In fact, U.S. financial conditions are easier
now than at the start of the Fed's tightening cycle - a highly unusual event. In
addition, other major G-4 central banks began the gradual process of moving away
from their very accommodative monetary policies.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 5
Q What were the principal factors that either contributed to or detracted
from the Fund's benchmark-relative returns during the 12-month period ended
October 31, 2017?
A Sector allocations made a substantial contribution to the Fund's
performance relative to the Bloomberg Barclays Index during the period,
while security selection also aided relative returns, especially in the
emerging markets and in financials and industrial corporate bonds, where we
tended to emphasize lower-rated, higher-yielding debt. With regard to
sector allocations, the portfolio's underweighting of Treasuries and the
sovereign debt of other major industrial nations lent significant support
to the Fund's benchmark-relative performance. Another group that fared
particularly well for the Fund was an allocation to the subordinated debt
of several European banking institutions, which outperformed during the
period as the European economy continued to gain momentum.
A sector allocation that did not help the Fund's benchmark-relative
returns, however, was the portfolio's small, out-of-benchmark exposure to
so-called "catastrophe" bonds, which are insurance-linked securities. The
allocation to catastrophe bonds held back the Fund's performance as late in
the fiscal year three severe hurricanes hit the U.S. mainland or its
territories, while two major earthquakes shook western Mexico. In addition,
California suffered through its worst period of forest fires on record.
Those events resulted in a 12-year high in natural-disaster-related
property damage claims in the global insurance industry, thus eroding the
values of catastrophe bonds in general.
The Fund maintained a short-duration position relative to the Bloomberg
Barclays Index during the 12 months, and the short-duration position helped
benchmark-relative performance when interest rates began to rise, partly
due to the moves by major central banks to tighten their monetary policies.
(Duration is a measure of the sensitivity of the price, or the value of
principal, of a fixed-income investment to a change in interest rates,
expressed as a number of years. Shorter-duration portfolios tend to be less
sensitive to changes in interest rates than longer-duration portfolios.) As
of October 31, 2017, the average effective duration of the Fund's portfolio
was 5.66 years.
The one significant detractor from the Fund's benchmark-relative returns
during the period was the portfolio's overweight USD currency positioning,
as the USD lagged the euro and the Japanese yen. That negative was offset
in part by the portfolio's long exposures to some euro-linked currencies,
including the currencies of Sweden, Norway, and the Czech Republic, all of
which held up well against the USD, although they
6 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
did underperform the euro. The Fund's Mexican peso position also detracted
from relative performance. At first, the election of Donald Trump as U.S.
President resulted in a weakening of the peso, as he had campaigned against
undocumented immigration from Mexico as well as the North American Free
Trade Agreement (NAFTA). But the peso subsequently rebounded after the
Mexican central bank raised interest rates to combat inflation and rolled
out an aggressive currency intervention program to prop up the country's
softening currency. In addition, President Trump signaled that no
anti-trade steps were likely to occur in the short run. As the peso
strengthened, the Fund's underweight to the peso hurt relative results.
At the end of the fiscal year, the Fund's portfolio had just over 51%
exposure to the USD, and just over 48% in foreign-exchange exposure. This
represents a sharp reduction in the Fund's USD position compared with one
year ago.
Q Did the Fund invest in any derivative securities during the 12-month period
ended October 31, 2017? If so, did the derivatives have a material impact
on benchmark-relative performance?
A The Fund invested in three types of derivatives during the 12 months:
forward foreign currency transactions (forwards), Treasury futures, and
credit default swaps. We invested in the forwards to help manage the risks
to the portfolio of changes in relative currency values. The forwards had a
slight negative effect on relative performance. We invested in the Treasury
futures to help manage interest-rate risk. The Treasury futures helped
performance significantly, as the Fund's short-duration stance contributed
to relative returns at a time when Treasury yields rose and prices were
pressured. The Fund had only a very small exposure to credit default swaps,
and they did not have a material impact on results.
Q Were there any changes in the Fund's distributions to shareholders during
the 12-month period ended October 31, 2017?
A The Fund's distributions to shareholders rose during the second half of the
fiscal year, due to increases in the yields of Treasury and government-
related securities.
Q What is your investment outlook, and how is the Fund positioned as of
period end?
A We think economic fundamentals, such as stronger global growth and
continued easy financial conditions, should support the high-yield market.
In an environment where corporations have the financial health to pay their
bond obligations, we believe default rates should remain low. Nevertheless,
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 7
we are somewhat concerned about the elevated pricing levels to which
sovereign and high-yield bonds have risen, and so we are maintaining a
cautious outlook.
The Fund now has a small overweight currency position in the USD, as we
anticipate that we may see some near-term dollar strengthening, especially
if the Fed tightens monetary policy more than the market currently
anticipates. However, beyond the near term, we think the USD may weaken,
and so we have been reducing, gradually, the Fund's long-USD exposure in
anticipation that the ECB and other foreign central banks may begin raising
interest rates, potentially weakening the relative attractiveness of the
USD.
We continue to position the Fund for rising interest rates in the U.S., and
solid, if modest, economic growth. As time goes on, we will carefully
evaluate the relative values offered by different asset classes and
sectors. For example, after the recent outperformance of mortgage-backed
securities, we have begun to favor owning investment-grade corporates in
the portfolio, but on a highly selective basis. As noted earlier, the Fund
continues to be overweight to the USD relative to the benchmark Bloomberg
Barclays Index, although we recently have increased the Fund's euro and
Japanese yen exposures. Overall, we may look to continue to reduce the
portfolio's modest USD overweight.
Geographically, North America remains the Fund's leading country/regional
allocation, while the portfolio is significantly underweight to the
low-yielding euro-based market, and is also underweight in developed Asian
nations. Based on recent strong performance, we have modestly reduced the
Fund's exposure to the emerging markets. By sector, the portfolio remains
significantly underweight to U.S. Treasuries and developed government
bonds, and is overweight to corporates and securitized issues.
Please refer to the Schedule of Investments on pages 17-42 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, and economic and political
conditions.
8 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
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.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investments in high-yield or lower rated securities are subject to
greater-than-average price volatility, illiquidity and possibility of default.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The Fund may invest in mortgage-backed securities, which during times of fluctu-
ating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
The securities issued by U.S. Government-sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
Floating rate loans and similar instruments may be illiquid or less liquid than
other instruments, and the value of any collateral can decline or be
insufficient to meet the issuer's obligations.
The value of municipal securities can be adversely affected by changes in
financial condition of municipal issuers, lower revenues, and regulatory and
political developments.
The Fund is subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Amundi Pioneer Asset Management, Inc., for
a prospectus or summary prospectus containing this information. Read it
carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 9
Portfolio Summary | 10/31/17
Portfolio Diversification*
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Foreign Government Bonds 37.2%
U.S. Government and Agency Obligations 17.8%
International Corporate Bonds 17.7%
U.S. Corporate Bonds 15.2%
Collateralized Mortgage Obligations 4.8%
Senior Secured Floating Rate Loan Interests 3.2%
Closed End Fund 1.5%
Asset Backed Securities 1.0%
Municipal Bonds 1.0%
Convertible Preferred Stocks 0.5%
Convertible Corporate Bond 0.1%
U.S. Preferred Stock 0.0%+
* Includes investments in Insurance Linked Securities totaling 0.2% of total
investment portfolio.
+ Amount rounds to less than 0.1%.
Geographical Distribution
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(As a percentage of long-term holdings based on country of domicile)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 43.5%
United Kingdom 6.4%
Canada 5.7%
Netherlands 4.0%
Argentina 3.9%
Australia 3.7%
New Zealand 3.6%
Japan 3.2%
Germany 3.1%
Egypt 2.2%
France 2.0%
Norway 1.5%
Mexico 1.4%
Nigeria 1.4%
Cote D'Ivoire 1.2%
Luxembourg 1.1%
Italy 1.1%
Other (individually less than 1%) 11.0%
10 Largest Holdings
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(As a percentage of total long-term holdings)**
1. New Zealand Government Bond, 5.5%, 4/15/23 3.56%
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2. Australia Government Bond, 4.75%, 4/21/27 3.30
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3. Bundesrepublik Deutschland, 0.25%, 2/15/27 3.08
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4. International Finance Corp., 6.3%, 11/25/24 2.70
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5. Canadian Government Bond, 2.25%, 6/1/25 2.54
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6. Canadian Government Bond, 1.75%, 9/1/19 2.48
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7. Japan Government Ten Year Bond, 0.1%, 9/20/26 2.25
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8. United Kingdom Gilt, 3.5%, 1/22/45 1.69
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9. Norway Government Bond, 4.5%, 5/22/19 (144A) 1.52
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10. Pioneer ILS Interval Fund (l) 1.48
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** This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any securities listed.
(l) Affiliated fund managed by Amundi Pioneer Asset Management, Inc., formerly
Pioneer Investment Management, Inc. (the Adviser).
10 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
Prices and Distributions | 10/31/17
Net Asset Value per Share
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Class 10/31/17 10/31/16
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A $10.70 $10.60
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C $10.73 $10.63
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Y $10.80 $10.69
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Distributions per Share: 11/1/16-10/31/17
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Net Investment Short-Term Long-Term Tax Return
Class Income Capital Gains Capital Gains of Capital
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A $0.1939 $0.0246 $0.0328 $0.0387
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C $0.1061 $0.0246 $0.0328 $0.0387
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Y $0.2231 $0.0246 $0.0328 $0.0387
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Index Definitions
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The Bloomberg Barclays Global Aggregate Bond Index is an unmanaged index that
provides a broad-based measure of the global investment-grade fixed-income
markets. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges. It
is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 12-14.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 11
Performance Update | 10/31/17 Class A Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Global Multisector Income Fund at
public offering price during the periods shown, compared to that of the
Bloomberg Barclays Global Aggregate Bond Index.
Average Annual Total Returns
(As of October 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net Public Global
Asset Offering Aggregate
Value Price Bond
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life of Class
(12/27/2007) 4.25% 3.76% 2.99%
5 years 2.18 1.25 0.43
1 year 3.75 -0.92 1.18
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2017)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.69% 1.02%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Bloomberg Barclays Global
Multisector Income Fund Aggregate Bond Index
12/07 $ 9,550 $10,000
10/08 $ 9,100 $ 9,589
10/09 $11,064 $11,354
10/10 $11,861 $12,136
10/11 $12,243 $12,630
10/12 $12,975 $13,078
10/13 $12,918 $12,876
10/14 $13,326 $12,905
10/15 $13,193 $12,508
10/16 $13,931 $13,207
10/17 $14,453 $13,363
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2018, for Class A shares. There can be no assurance that
Amundi Pioneer will extend the expense limitation beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
Performance Update | 10/31/17 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Global Multisector Income Fund
during the periods shown, compared to that of the Bloomberg Barclays Global
Aggregate Bond Index.
Average Annual Total Returns
(As of October 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Global
Aggregate
If If Bond
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life of Class
(12/27/2007) 3.37% 3.37% 2.99%
5 years 1.30 1.30 0.43
1 year 2.88 2.88 1.18
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2017)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.55% 1.92%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Bloomberg Barclays Global
Multisector Income Fund Aggregate Bond Index
12/07 $10,000 $10,000
10/08 $ 9,452 $ 9,589
10/09 $11,395 $11,354
10/10 $12,130 $12,136
10/11 $12,420 $12,630
10/12 $13,053 $13,078
10/13 $12,891 $12,876
10/14 $13,179 $12,905
10/15 $12,932 $12,508
10/16 $13,536 $13,207
10/17 $13,926 $13,363
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2018, for Class C shares. There can be no assurance that
Amundi Pioneer will extend the expense limitation beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 13
Performance Update | 10/31/17 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Global Multisector Income Fund
during the periods shown, compared to that of the Bloomberg Barclays Global
Aggregate Bond Index.
Average Annual Total Returns
(As of October 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net Global
Asset Aggregate
Value Bond
Period (NAV) Index
--------------------------------------------------------------------------------
Life of Class
(12/27/2007) 4.50% 2.99%
5 years 2.44 0.43
1 year 4.10 1.18
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2017)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.43% 0.77%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global Bloomberg Barclays Global
Multisector Income Fund Aggregate Bond Index
12/07 $5,000,000 $5,000,000
10/08 $4,767,893 $4,794,284
10/09 $5,801,982 $5,677,007
10/10 $6,235,980 $6,067,959
10/11 $6,464,208 $6,315,241
10/12 $6,867,704 $6,538,878
10/13 $6,850,412 $6,438,144
10/14 $7,084,387 $6,452,339
10/15 $7,040,336 $6,253,991
10/16 $7,444,084 $6,603,621
10/17 $7,748,921 $6,681,289
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2018, for Class Y shares. There can be no assurance that
Amundi Pioneer will extend the expense limitation beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
14 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
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 Multisector Income Fund
Based on actual returns from May 1, 2017, through October 31, 2017.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 5/1/17 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,027.94 $1,023.68 $1,030.08
on 10/31/17
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.11 $ 9.23 $ 3.84
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.00%,
1.81% and 0.75% for Class A, Class C and Class Y shares respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with
the 5% hypothetical examples that appear in the shareholder reports of the
other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global Multisector Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2017, through October 31, 2017.
-----------------------------------------------------------------------------------
Share Class A C Y
-----------------------------------------------------------------------------------
Beginning Account Value on 5/1/17 $1,000.00 $1,000.00 $1,000.00
-----------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,020.16 $1,016.08 $1,021.42
on 10/31/17
-----------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.09 $ 9.20 $ 3.82
-----------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.00%,
1.81% and 0.75% for Class A, Class C and Class Y shares respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
16 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
Schedule of Investments | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 96.9%
CONVERTIBLE CORPORATE BOND --
0.0%+ of Net Assets
CAPITAL GOODS -- 0.0%+
Electrical Components & Equipment -- 0.0%+
31,000(a) General Cable Corp., 4.5%, 11/15/29 $ 29,779
--------------
Total Capital Goods $ 29,779
-----------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BOND
(Cost $30,802) $ 29,779
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 0.0%+ of Net Assets
DIVERSIFIED FINANCIALS -- 0.0%+
Consumer Finance -- 0.0%+
231(b) GMAC Capital Trust I, 7.1% (3 Month USD LIBOR +
579 bps), 2/15/40 $ 6,066
--------------
Total Diversified Financials $ 6,066
-----------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $4,505) $ 6,066
-----------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.5% of Net Assets
BANKS -- 0.5%
Diversified Banks -- 0.5%
94(c) Bank of America Corp., 7.25% $ 121,914
95(c) Wells Fargo & Co., 7.5% 124,450
--------------
Total Banks $ 246,364
-----------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $220,127) $ 246,364
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($)
-----------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 0.9% of Net Assets
BANKS -- 0.8%
Thrifts & Mortgage Finance -- 0.8%
6,172(b) New Century Home Equity Loan Trust, Series 2005-1,
Class A2C, 1.938% (1 Month USD LIBOR + 70 bps),
3/25/35 $ 6,178
100,000 Progress Residential Trust, Series 2017-SFR1, Class E,
4.261%, 8/17/34 (144A) 100,775
95,821(a) RCO Mortgage LLC, Series 2017-1, Class A1, 3.375%,
8/25/22 (144A) 96,246
381(a) Structured Asset Securities Corp., Series 2004-19XS,
Class A6B, 5.052%, 10/25/34 390
18,067(a) Terwin Mortgage Trust, Series 2005-16HE, Class AF2,
4.761%, 9/25/36 18,178
121,153(d) Towd Point Mortgage Trust, Series 2017-4, Class A1,
2.75%, 6/25/57 (144A) 121,446
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 17
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
62,686(a) VOLT LVIII LLC, Series 2017-NPL5, Class A1, 3.375%,
5/28/47 (144A) $ 63,112
--------------
Total Banks $ 406,325
-----------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.1%
Food Retail -- 0.1%
44,491 CKE Restaurant Holdings, Inc., Series 2013-1A, Class A2,
4.474%, 3/20/43 (144A) $ 44,818
--------------
Total Food & Staples Retailing $ 44,818
-----------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $448,992) $ 451,143
-----------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS --
4.8% of Net Assets
BANKS -- 4.5%
Thrifts & Mortgage Finance -- 4.5%
53,454(d) Agate Bay Mortgage Trust, Series 2015-1, Class A13,
3.5%, 1/25/45 (144A) $ 54,083
43,192(d) Agate Bay Mortgage Trust, Series 2015-5, Class A3,
3.5%, 7/25/45 (144A) 43,943
1,676(b) Alternative Loan Trust, Series 2003-14T1, Class A9,
1.688% (1 Month USD LIBOR + 45 bps), 8/25/18 1,268
100,000(b) Arbor Realty Commercial Real Estate Notes, Ltd.,
Series 2017-FL1, Class B, 3.739% (1 Month USD
LIBOR + 250 bps), 4/15/27 (144A) 100,500
100,000(b) BAMLL Commercial Mortgage Securities Trust,
Series 2014-FL1, Class B, 3.439% (1 Month USD
LIBOR + 220 bps), 12/15/31 (144A) 100,193
80,000 BANK, Series 2017-BNK5, Class AS, 3.624%, 6/15/60 81,369
50,000 BANK, Series 2017-BNK4, Class B, 3.931%, 11/15/50 51,496
70,908(a)(e) Bayview Commercial Asset Trust, Series 2007-2A,
Class IO, 7/25/37 (144A) --
3,394(d) CHL Mortgage Pass-Through Trust, Series 2003-56,
Class 4A2, 3.646%, 12/25/33 3,454
100,000 Citigroup Commercial Mortgage Trust, Series 2015-GC27,
Class A5, 3.137%, 2/10/48 101,277
75,000(d) Citigroup Commercial Mortgage Trust, Series 2014-GC25,
Class B, 4.345%, 10/10/47 78,260
100,000(d) Citigroup Commercial Mortgage Trust, Series 2014-GC19,
Class B, 4.805%, 3/10/47 106,793
100,000(b) CLNS Trust, Series 2017-IKPR, Class C, 2.337% (1 Month
USD LIBOR + 110 bps), 6/11/32 (144A) 100,000
100,000(b) Cold Storage Trust, Series 2017-ICE3, Class C, 2.584%
(1 Month USD LIBOR + 135 bps), 4/15/36 (144A) 100,407
50,000 COMM Mortgage Trust, Series 2013-LC6, Class A4,
2.941%, 1/10/46 50,851
100,000(d) COMM Mortgage Trust, Series 2015-CR25, Class B,
4.546%, 8/10/48 106,660
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
90,000 Commercial Mortgage Pass Through Certificates,
Series 2012-CR3, Class A3, 2.822%, 10/15/45 $ 91,173
100,000 CSAIL Commercial Mortgage Trust, Series 2016-C7,
Class A5, 3.502%, 11/15/49 103,444
50,000(d) CSAIL Commercial Mortgage Trust, Series 2016-C5,
Class C, 4.536%, 11/15/48 51,162
25,000 GS Mortgage Securities Corp. II, Series 2013-GC10,
Class B, 3.682%, 2/10/46 (144A) 25,531
150,000(d) GS Mortgage Securities RE-Remic Trust, Series 2015-FRR1,
Class K3A, 3.496%, 6/27/41 149,259
100,000(b) IMT Trust, Series 2017-APTS, Class BFL, 2.189%
(1 Month USD LIBOR + 95 bps), 6/15/34 (144A) 100,000
61,793(b) Interstar Millennium Trust, Series 2003-3G, Class A2,
1.83% (3 Month USD LIBOR + 50 bps), 9/27/35 58,831
75,000 JP Morgan Chase Commercial Mortgage Securities Trust,
Series 2012-LC9, Class A5, 2.84%, 12/15/47 76,067
28,985 JP Morgan Chase Commercial Mortgage Securities Trust,
Series 2011-C5, Class A3, 4.171%, 8/15/46 30,567
84,360(d) JP Morgan Mortgage Trust, Series 2016-3, Class 2A1,
3.0%, 10/25/46 (144A) 85,441
50,000 JPMBB Commercial Mortgage Securities Trust,
Series 2014-C22, Class A4, 3.801%, 9/15/47 52,751
35,895(d) NRP Mortgage Trust, Series 2013-1, Class A1, 3.25%,
7/25/43 (144A) 36,062
GBP 38,736(b) Paragon Secured Finance No. 1 Plc, Series PSF 1A,
Class A, 0.68% (3 Month GBP LIBOR + 40 bps), 11/15/35 51,180
23,971(d) Sequoia Mortgage Trust, Series 2013-4, Class A2,
2.5%, 4/25/43 23,362
85,615(d) Sequoia Mortgage Trust, Series 2012-3, Class A1, 3.5%,
7/25/42 87,337
--------------
Total Banks $ 2,102,721
-----------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.3%
Government -- 0.3%
6,335 Fannie Mae REMICS, Series 2009-36, Class HX,
4.5%, 6/25/29 $ 6,709
45,000(d) FREMF Mortgage Trust, Series 2010-K9, Class B, 5.206%,
9/25/45 (144A) 48,043
50,000(d) FREMF Mortgage Trust, Series 2015-K51, Class B, 3.953%,
10/25/48 (144A) 51,357
18,915 Government National Mortgage Association, Series
2005-61, Class UZ, 5.25%, 8/16/35 20,577
23,548 Government National Mortgage Association, Series
2009-83, Class EB, 4.5%, 9/20/39 25,179
--------------
Total Government $ 151,865
-----------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $2,273,908) $ 2,254,586
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 19
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 32.2% of Net Assets
AUTOMOBILES & COMPONENTS -- 0.2%
Automobile Manufacturers -- 0.2%
35,000 Ford Motor Co., 4.346%, 12/8/26 $ 36,472
35,000 General Motors Co., 6.6%, 4/1/36 41,884
--------------
Total Automobiles & Components $ 78,356
-----------------------------------------------------------------------------------------------------
BANKS -- 7.6%
Diversified Banks -- 7.2%
200,000 Access Bank Plc, 10.5%, 10/19/21 (144A) $ 226,044
INR 2,160,000 Asian Development Bank, 5.9%, 12/20/22 33,230
INR 2,100,000 Asian Development Bank, 6.2%, 10/6/26 32,654
INR 1,740,000 Asian Development Bank, 6.45%, 8/8/21 27,438
EUR 200,000(d) Barclays Plc, 2.625% (5 Year EUR Swap Rate + 245 bps),
11/11/25 242,628
EUR 150,000 BNP Paribas SA, 2.375%, 2/17/25 186,591
EUR 200,000 BPCE SA, 2.875%, 4/22/26 257,290
75,000 Cooperatieve Rabobank UA, 3.875%, 2/8/22 79,610
EUR 200,000(c)(d) Erste Group Bank AG, 8.875% (5 Year EUR Swap
Rate + 902 bps) 288,920
ARS 1,280,000(f) European Bank for Reconstruction & Development, 2/1/19 57,910
INR 11,500,000 European Bank for Reconstruction & Development,
6.0%, 5/4/20 179,568
200,000 Finansbank AS, 4.875%, 5/19/22 (144A) 197,282
EUR 200,000(d) ING Groep NV, 3.0% (5 Year EUR Swap Rate + 285 bps),
4/11/28 256,309
NZD 505,000 International Bank for Reconstruction & Development,
3.5%, 1/22/21 354,476
NZD 45,000 International Bank for Reconstruction & Development,
4.625%, 10/6/21 32,879
AUD 185,000 International Bank for Reconstruction & Development,
5.75%, 10/21/19 151,688
INR 1,350,000 International Bank for Reconstruction & Development,
5.75%, 10/28/19 20,936
EUR 200,000(c)(d) Lloyds Banking Group Plc, 6.375% (5 Year EUR Swap
Rate + 529 bps) 258,873
100,000 Macquarie Bank, Ltd., 6.625%, 4/7/21 (144A) 112,034
200,000(c)(d) Royal Bank of Scotland Group Plc, 8.0% (5 Year USD
Swap Rate + 572 bps) 228,640
EUR 200,000 UBS Group Funding Switzerland AG, 1.75%, 11/16/22 247,696
--------------
$ 3,472,696
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.4%
GBP 125,000 Nationwide Building Society, 3.0%, 5/6/26 $ 176,807
--------------
Total Banks $ 3,649,503
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.8%
Aerospace & Defense -- 0.5%
50,000 Embraer Netherlands Finance BV, 5.4%, 2/1/27 $ 53,575
65,000 Rockwell Collins, Inc., 3.2%, 3/15/24 66,265
EUR 100,000 TA MFG., Ltd., 3.625%, 4/15/23 (144A) 120,318
--------------
$ 240,158
-----------------------------------------------------------------------------------------------------
Building Products -- 0.3%
30,000 Masco Corp., 4.375%, 4/1/26 $ 31,899
19,000 Masco Corp., 5.95%, 3/15/22 21,314
35,000 Owens Corning, 3.4%, 8/15/26 34,404
35,000 Owens Corning, 4.2%, 12/1/24 36,809
30,000 Standard Industries, Inc., 5.375%, 11/15/24 (144A) 31,647
--------------
$ 156,073
--------------
Total Capital Goods $ 396,231
-----------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.4%
Casinos & Gaming -- 0.1%
50,000 Scientific Games International, Inc., 10.0%, 12/1/22 $ 55,309
-----------------------------------------------------------------------------------------------------
Education Services -- 0.3%
25,000 Massachusetts Institute of Technology, 5.6%, 7/1/11 $ 33,524
75,000 Tufts University, 5.017%, 4/15/12 84,332
--------------
$ 117,856
--------------
Total Consumer Services $ 173,165
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 6.1%
Consumer Finance -- 3.5%
40,000 Capital One Financial Corp., 3.75%, 7/28/26 $ 39,777
INR 81,420,000 International Finance Corp., 6.3%, 11/25/24 1,273,992
INR 20,750,000 International Finance Corp., 8.25%, 6/10/21 344,497
--------------
$ 1,658,266
-----------------------------------------------------------------------------------------------------
Diversified Capital Markets -- 0.6%
EUR 200,000(c)(d) Intesa Sanpaolo S.p.A., 7.75% (5 Year EUR Swap
Rate + 719 bps) $ 282,925
10,000 Macquarie Group, Ltd., 6.0%, 1/14/20 (144A) 10,768
--------------
$ 293,693
-----------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.3%
75,000 Morgan Stanley, 4.1%, 5/22/23 $ 78,961
50,000 Morgan Stanley, 4.875%, 11/1/22 54,144
--------------
$ 133,105
-----------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.5%
IDR 2,440,000,000 European Investment Bank, 7.2%, 7/9/19 (144A) $ 181,586
NZD 100,000 JPMorgan Chase & Co., 4.25%, 11/2/18 69,505
--------------
$ 251,091
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 21
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Specialized Finance -- 1.2%
56,000 Cantor Fitzgerald LP, 7.875%, 10/15/19 (144A) $ 61,216
200,000 Gerdau Trade, Inc., 4.875%, 10/24/27 (144A) 200,650
EUR 100,000 Holcim Finance Luxembourg SA, 2.25%, 5/26/28 125,841
200,000 MassMutual Global Funding II, 2.75%, 6/22/24 (144A) 199,042
--------------
$ 586,749
--------------
Total Diversified Financials $ 2,922,904
-----------------------------------------------------------------------------------------------------
ENERGY -- 5.7%
Integrated Oil & Gas -- 2.6%
EUR 175,000 BP Capital Markets Plc, 1.373%, 3/3/22 $ 215,121
240,000 Petrobras Global Finance BV, 5.299%, 1/27/25 (144A) 240,780
240,000 Petrobras Global Finance BV, 5.375%, 1/27/21 252,300
155,000 Petroleos Mexicanos, 3.5%, 1/30/23 151,327
EUR 200,000(d) Repsol International Finance BV, 4.5% (EUR Swap
Rate + 420 bps), 3/25/75 259,769
ARS 2,154,200 YPF SA, 16.5%, 5/9/22 (144A) 114,809
--------------
$ 1,234,106
-----------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.3%
35,000 Freeport-McMoRan, Inc., 6.75%, 2/1/22 $ 36,400
100,000 Rowan Cos., Inc., 4.75%, 1/15/24 88,750
--------------
$ 125,150
-----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.7%
75,000 Antero Resources Corp., 5.625%, 6/1/23 $ 78,562
35,000 Canadian Natural Resources, Ltd., 6.25%, 3/15/38 43,269
100,000 Hilcorp Energy I LP / Hilcorp Finance Co., 5.75%,
10/1/25 (144A) 102,375
100,000 Range Resources Corp., 5.0%, 3/15/23 98,998
--------------
$ 323,204
-----------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.4%
125,000 Phillips 66 Partners LP, 3.75%, 3/1/28 $ 125,475
29,000 Valero Energy Corp., 6.625%, 6/15/37 37,225
21,000 Valero Energy Corp., 9.375%, 3/15/19 23,035
--------------
$ 185,735
-----------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.7%
50,000 Boardwalk Pipelines LP, 4.95%, 12/15/24 $ 53,341
55,000 Cheniere Energy Partners LP, 5.25%, 10/1/25 (144A) 56,650
25,000 DCP Midstream Operating LP, 9.75%, 3/15/19 (144A) 27,250
75,000 Enable Midstream Partners LP, 3.9%, 5/15/24 75,617
100,000 Energy Transfer Equity LP, 5.875%, 1/15/24 108,500
125,000 Kinder Morgan, Inc., 5.55%, 6/1/45 135,862
40,000 MPLX LP, 4.875%, 12/1/24 43,502
75,000 Plains All American Pipeline LP / PAA Finance Corp.,
4.65%, 10/15/25 77,720
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- (continued)
60,000 Sabine Pass Liquefaction LLC, 5.0%, 3/15/27 $ 64,553
10,000 Spectra Energy Capital LLC, 6.75%, 7/15/18 10,309
60,000 Sunoco Logistics Partners Operations LP, 6.1%, 2/15/42 64,340
75,000 Williams Cos., Inc., 5.75%, 6/24/44 79,500
13,000 Williams Cos., Inc., 7.75%, 6/15/31 15,860
15,000 Williams Partners LP, 5.1%, 9/15/45 16,070
--------------
$ 829,074
--------------
Total Energy $ 2,697,269
-----------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.1%
Drug Retail -- 0.0%+
12,186 CVS Pass-Through Trust, 5.773%, 1/10/33 (144A) $ 13,656
-----------------------------------------------------------------------------------------------------
Food Retail -- 0.1%
40,000 Alimentation Couche-Tard, Inc., 3.55%, 7/26/27 (144A) $ 40,135
--------------
Total Food & Staples Retailing $ 53,791
-----------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.0%
Packaged Foods & Meats -- 1.0%
GBP 100,000 Boparan Finance Plc, 5.5%, 7/15/21 (144A) $ 125,693
70,000 Kraft Heinz Foods Co., 3.95%, 7/15/25 72,635
200,000 Marfrig Holdings Europe BV, 8.0%, 6/8/23 (144A) 209,000
90,000 Post Holdings, Inc., 5.0%, 8/15/26 (144A) 90,450
--------------
Total Food, Beverage & Tobacco $ 497,778
-----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.7%
Health Care Distributors -- 0.1%
41,000 Cardinal Health, Inc., 3.079%, 6/15/24 $ 40,729
-----------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.2%
70,000 CHS/Community Health Systems, Inc., 6.875%, 2/1/22 $ 50,662
50,000 Kindred Healthcare, Inc., 6.375%, 4/15/22 46,275
--------------
$ 96,937
-----------------------------------------------------------------------------------------------------
Health Care Technology -- 0.2%
EUR 100,000 Quintiles IMS, Inc., 2.875%, 9/15/25 (144A) $ 118,248
-----------------------------------------------------------------------------------------------------
Managed Health Care -- 0.2%
30,000 Centene Corp., 5.625%, 2/15/21 $ 31,125
25,000 Centene Corp., 6.125%, 2/15/24 26,875
20,000 Humana, Inc., 3.95%, 3/15/27 20,655
--------------
$ 78,655
--------------
Total Health Care Equipment & Services $ 334,569
-----------------------------------------------------------------------------------------------------
INSURANCE -- 1.0%
Insurance Brokers -- 0.2%
100,000 Brown & Brown, Inc., 4.2%, 9/15/24 $ 105,103
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 23
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Life & Health Insurance -- 0.1%
45,000 Protective Life Corp., 7.375%, 10/15/19 $ 49,334
-----------------------------------------------------------------------------------------------------
Multi-line Insurance -- 0.2%
60,000 AXA SA, 8.6%, 12/15/30 $ 86,400
-----------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.3%
35,000 Delphi Financial Group, Inc., 7.875%, 1/31/20 $ 38,982
100,000(d) Farmers Insurance Exchange, 4.747% (3 Month USD
LIBOR + 323 bps), 11/1/57 (144A) 100,200
--------------
$ 139,182
-----------------------------------------------------------------------------------------------------
Reinsurance -- 0.2%
30,000+(g)(h) Gullane Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/20 $ 654
30,000+(g)(h) Gullane Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/21 29,406
30,000+(g)(h) Lorenz Re, Ltd. (Prime, Ltd.), Variable Rate Notes, 3/31/19 1,680
30,000+(g)(h) Lorenz Re, Ltd. (Prime, Ltd.), Variable Rate Notes, 3/31/20 27,027
30,000+(g)(h) Pangaea Re Segregated Account (Artex SAC, Ltd.), Series
2015-2, Variable Rate Notes, 7/1/19 312
30,000+(g)(h) Pangaea Re Segregated Account (Artex SAC, Ltd.), Series
2016-1, Variable Rate Notes, 2/1/20 1,983
50,000+(g)(h) Pangaea Re Segregated Account (Artex SAC, Ltd.), Series
2017-1, Variable Rate Notes, 11/30/21 41,960
--------------
$ 103,022
--------------
Total Insurance $ 483,041
-----------------------------------------------------------------------------------------------------
MATERIALS -- 1.1%
Construction Materials -- 0.3%
EUR 125,000 CRH Finance, DAC, 3.125%, 4/3/23 $ 166,546
-----------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.2%
85,000 CF Industries, Inc., 3.45%, 6/1/23 $ 83,938
-----------------------------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.2%
85,000 Agrium, Inc., 5.25%, 1/15/45 $ 98,144
-----------------------------------------------------------------------------------------------------
Paper Packaging -- 0.4%
50,000 International Paper Co., 4.8%, 6/15/44 $ 54,466
5,000 International Paper Co., 6.0%, 11/15/41 6,230
EUR 100,000 SIG Combibloc Holdings SCA, 7.75%, 2/15/23 (144A) 122,907
--------------
$ 183,603
--------------
Total Materials $ 532,231
-----------------------------------------------------------------------------------------------------
MEDIA -- 1.0%
Cable & Satellite -- 0.7%
100,000 Charter Communications Operating LLC / Charter
Communications Operating Capital, 6.384%, 10/23/35 $ 115,248
60,000 Cox Communications, Inc., 3.35%, 9/15/26 (144A) 58,883
EUR 150,000 Sky Plc, 1.5%, 9/15/21 182,722
--------------
$ 356,853
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.3%
EUR 100,000 WMG Acquisition Corp., 4.125%, 11/1/24 (144A) $ 123,537
--------------
Total Media $ 480,390
-----------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.4%
Biotechnology -- 0.2%
80,000 AbbVie, Inc., 3.2%, 5/14/26 $ 79,445
-----------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.2%
EUR 100,000 Valeant Pharmaceuticals International, Inc, 4.5%, 5/15/23 $ 98,956
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 178,401
-----------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.0%
Diversified REITs -- 0.4%
EUR 100,000(c)(d) ATF Netherlands BV, 3.75% (5 Year EUR Swap
Rate + 438 bps) $ 123,257
55,000 Essex Portfolio LP, 3.625%, 5/1/27 55,426
--------------
$ 178,683
-----------------------------------------------------------------------------------------------------
Health Care REIT -- 0.1%
60,000 Healthcare Trust of America Holdings LP, 3.75%, 7/1/27 $ 60,013
-----------------------------------------------------------------------------------------------------
Office REITs -- 0.2%
25,000 Alexandria Real Estate Equities, Inc., 3.9%, 6/15/23 $ 25,904
40,000 Alexandria Real Estate Equities, Inc., 4.6%, 4/1/22 42,671
35,000 Highwoods Realty LP, 3.625%, 1/15/23 35,489
--------------
$ 104,064
-----------------------------------------------------------------------------------------------------
Residential REIT -- 0.1%
50,000 UDR, Inc., 4.0%, 10/1/25 $ 52,124
-----------------------------------------------------------------------------------------------------
Specialized REIT -- 0.2%
100,000 Uniti Group LP / Uniti Group Finance, Inc. / CSL Capital
LLC, 6.0%, 4/15/23 (144A) $ 100,125
--------------
Total Real Estate $ 495,009
-----------------------------------------------------------------------------------------------------
RETAILING -- 0.1%
Internet & Direct Marketing Retail -- 0.1%
50,000 Expedia, Inc., 3.8%, 2/15/28 (144A) $ 48,645
15,000 Priceline Group, Inc., 3.55%, 3/15/28 15,120
--------------
Total Retailing $ 63,765
-----------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.1%
Semiconductor Equipment -- 0.0%+
25,000 Entegris, Inc., 6.0%, 4/1/22 (144A) $ 26,125
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 25
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Semiconductors -- 0.1%
25,000 Broadcom Corp. / Broadcom Cayman Finance, Ltd.,
3.125%, 1/15/25 (144A) $ 24,792
15,000 Broadcom Corp. / Broadcom Cayman Finance, Ltd.,
3.625%, 1/15/24 (144A) 15,492
--------------
$ 40,284
--------------
Total Semiconductors & Semiconductor Equipment $ 66,409
-----------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.5%
Electronic Components -- 0.3%
41,000 Amphenol Corp., 3.2%, 4/1/24 $ 41,322
EUR 100,000 Belden, Inc., 2.875%, 9/15/25 (144A) 116,787
--------------
$ 158,109
-----------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.2%
100,000 Flex, Ltd., 4.625%, 2/15/20 $ 104,352
--------------
Total Technology Hardware & Equipment $ 262,461
-----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.0%
Integrated Telecommunication Services -- 0.8%
40,000 Frontier Communications Corp., 7.125%, 1/15/23 $ 30,712
7,000 Frontier Communications Corp., 8.5%, 4/15/20 6,921
GBP 100,000 Koninklijke KPN NV, 5.0%, 11/18/26 156,999
EUR 125,000(c)(d) Orange SA, 5.0% (5 Year EUR Swap Rate + 399 bps) 171,911
25,000 Unison Ground Lease Funding LLC, 2.981%, 3/15/20 (144A) 24,550
--------------
$ 391,093
-----------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.2%
30,000 Crown Castle Towers LLC, 4.883%, 8/15/20 (144A) $ 31,678
200,000 Digicel, Ltd., 6.0%, 4/15/21 (144A) 196,732
200,000 MTN Mauritius Investment, Ltd., 6.5%, 10/13/26 (144A) 216,000
50,000 SBA Tower Trust, 2.877%, 7/9/21 (144A) 49,625
50,000 Sprint Corp., 7.25%, 9/15/21 54,500
--------------
$ 548,535
--------------
Total Telecommunication Services $ 939,628
-----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.0%+
Airlines -- 0.0% +
6,114 Delta Air Lines 2010-2 Class A Pass Through Trust,
4.95%, 5/23/19 $ 6,304
15,000 Delta Air Lines, Inc., 2.875%, 3/13/20 15,148
--------------
Total Transportation $ 21,452
-----------------------------------------------------------------------------------------------------
UTILITIES -- 2.4%
Electric Utilities -- 1.8%
EUR 100,000 EDP Finance BV, 1.875%, 9/29/23 $ 124,802
EUR 100,000(c)(d) Electricite de France SA, 4.25% (EUR Swap Rate + 302 bps) 124,224
100,000 Electricite de France SA, 6.0%, 1/22/14 (144A) 111,154
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Electric Utilities -- (continued)
200,000(d) Enel S.p.A., 8.75% (5 Year USD Swap Rate + 588 bps),
9/24/73 (144A) $ 247,000
GBP 75,000 innogy Finance BV, 5.625%, 12/6/23 120,425
85,000 NextEra Energy Capital Holdings, Inc., 3.55%, 5/1/27 87,547
50,000(c)(d) Southern California Edison Co., 6.25% (3 Month USD
LIBOR + 420 bps) 56,437
10,000 West Penn Power Co., 5.95%, 12/15/17 (144A) 10,048
--------------
$ 881,637
-----------------------------------------------------------------------------------------------------
Gas Utilities -- 0.6%
15,000 Boston Gas Co., 3.15%, 8/1/27 (144A) $ 14,989
GBP 125,000 Cadent Finance Plc, 2.125%, 9/22/28 160,284
83,420 Nakilat, Inc., 6.267%, 12/31/33 (144A) 97,602
--------------
$ 272,875
--------------
Total Utilities $ 1,154,512
-----------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $14,502,088) $ 15,480,865
-----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 17.5% of Net Assets
25,680 Fannie Mae, 3.0%, 5/1/31 $ 26,385
45,068 Fannie Mae, 3.0%, 2/1/43 45,387
28,856 Fannie Mae, 3.0%, 3/1/43 29,061
33,601 Fannie Mae, 3.0%, 5/1/43 33,801
29,535 Fannie Mae, 3.0%, 5/1/43 29,773
32,891 Fannie Mae, 3.0%, 6/1/45 33,058
23,259 Fannie Mae, 3.0%, 9/1/46 23,285
46,699 Fannie Mae, 3.0%, 10/1/46 46,752
65,903 Fannie Mae, 3.0%, 11/1/46 65,978
47,504 Fannie Mae, 3.0%, 1/1/47 47,762
34,512 Fannie Mae, 3.0%, 3/1/47 34,551
31,573 Fannie Mae, 3.5%, 2/1/29 32,812
52,581 Fannie Mae, 3.5%, 6/1/42 54,415
143,778 Fannie Mae, 3.5%, 9/1/42 148,480
150,140 Fannie Mae, 3.5%, 5/1/44 155,037
91,661 Fannie Mae, 3.5%, 2/1/45 95,034
34,691 Fannie Mae, 3.5%, 2/1/45 35,902
23,327 Fannie Mae, 3.5%, 6/1/45 24,065
46,997 Fannie Mae, 3.5%, 8/1/45 48,346
20,442 Fannie Mae, 3.5%, 8/1/45 21,029
67,244 Fannie Mae, 3.5%, 9/1/45 69,246
22,090 Fannie Mae, 3.5%, 9/1/45 22,873
103,630 Fannie Mae, 3.5%, 10/1/45 106,902
23,482 Fannie Mae, 3.5%, 1/1/46 24,156
25,491 Fannie Mae, 3.5%, 7/1/46 26,222
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 27
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
37,828 Fannie Mae, 3.5%, 9/1/46 $ 38,913
71,380 Fannie Mae, 3.5%, 12/1/46 73,429
49,001 Fannie Mae, 3.5%, 1/1/47 50,407
48,066 Fannie Mae, 3.5%, 1/1/47 49,743
38,131 Fannie Mae, 3.5%, 1/1/47 39,342
119,362 Fannie Mae, 3.5%, 2/1/47 122,788
92,730 Fannie Mae, 3.5%, 5/1/47 95,392
86,352 Fannie Mae, 3.5%, 5/1/47 88,831
72,667 Fannie Mae, 3.5%, 7/1/47 74,753
44,469 Fannie Mae, 3.5%, 7/1/47 45,745
141,570 Fannie Mae, 3.5%, 8/1/47 145,633
234,115 Fannie Mae, 3.5%, 10/1/47 240,835
40,877 Fannie Mae, 4.0%, 10/1/40 43,684
88,132 Fannie Mae, 4.0%, 1/1/42 92,877
16,672 Fannie Mae, 4.0%, 2/1/42 17,569
130,872 Fannie Mae, 4.0%, 10/1/43 138,503
44,736 Fannie Mae, 4.0%, 11/1/43 47,444
19,869 Fannie Mae, 4.0%, 10/1/44 20,878
95,155 Fannie Mae, 4.0%, 11/1/44 99,958
79,750 Fannie Mae, 4.0%, 10/1/45 83,734
108,908 Fannie Mae, 4.0%, 11/1/45 115,558
57,216 Fannie Mae, 4.0%, 12/1/45 60,070
44,744 Fannie Mae, 4.0%, 6/1/46 46,976
43,166 Fannie Mae, 4.0%, 8/1/46 45,324
24,533 Fannie Mae, 4.0%, 11/1/46 25,766
22,559 Fannie Mae, 4.0%, 11/1/46 23,696
163,651 Fannie Mae, 4.0%, 1/1/47 171,978
42,395 Fannie Mae, 4.0%, 4/1/47 44,774
38,823 Fannie Mae, 4.0%, 4/1/47 40,805
24,038 Fannie Mae, 4.0%, 4/1/47 25,391
72,982 Fannie Mae, 4.0%, 6/1/47 76,723
24,857 Fannie Mae, 4.0%, 6/1/47 26,130
23,544 Fannie Mae, 4.0%, 7/1/47 24,744
40,831 Fannie Mae, 4.0%, 8/1/47 42,937
25,000 Fannie Mae, 4.0%, 11/1/47 (TBA) 26,240
7,702 Fannie Mae, 4.5%, 11/1/40 8,326
15,724 Fannie Mae, 4.5%, 12/1/40 17,004
15,189 Fannie Mae, 4.5%, 4/1/41 16,346
10,779 Fannie Mae, 4.5%, 5/1/41 11,706
36,365 Fannie Mae, 4.5%, 11/1/43 38,940
47,946 Fannie Mae, 4.5%, 2/1/44 51,324
39,501 Fannie Mae, 4.5%, 2/1/44 42,294
40,534 Fannie Mae, 4.5%, 5/1/46 43,348
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
42,803 Fannie Mae, 4.5%, 2/1/47 $ 45,780
40,546 Fannie Mae, 5.0%, 8/1/31 44,051
16,881 Fannie Mae, 5.0%, 6/1/40 18,344
11,405 Fannie Mae, 5.5%, 10/1/35 12,663
14,567 Federal Home Loan Mortgage Corp., 3.0%, 9/1/42 14,666
16,791 Federal Home Loan Mortgage Corp., 3.0%, 1/1/43 16,905
32,790 Federal Home Loan Mortgage Corp., 3.0%, 2/1/43 33,015
62,980 Federal Home Loan Mortgage Corp., 3.0%, 4/1/43 63,411
38,332 Federal Home Loan Mortgage Corp., 3.0%, 4/1/43 38,592
18,049 Federal Home Loan Mortgage Corp., 3.0%, 5/1/43 18,158
23,620 Federal Home Loan Mortgage Corp., 3.0%, 9/1/46 23,678
24,627 Federal Home Loan Mortgage Corp., 3.0%, 12/1/46 24,681
69,843 Federal Home Loan Mortgage Corp., 3.0%, 2/1/47 70,004
18,348 Federal Home Loan Mortgage Corp., 3.5%, 10/1/42 18,986
95,859 Federal Home Loan Mortgage Corp., 3.5%, 6/1/45 99,222
116,229 Federal Home Loan Mortgage Corp., 3.5%, 11/1/45 119,849
20,109 Federal Home Loan Mortgage Corp., 3.5%, 3/1/46 20,687
83,963 Federal Home Loan Mortgage Corp., 3.5%, 7/1/46 87,059
117,167 Federal Home Loan Mortgage Corp., 3.5%, 8/1/46 121,241
94,371 Federal Home Loan Mortgage Corp., 3.5%, 8/1/46 97,490
36,046 Federal Home Loan Mortgage Corp., 3.5%, 8/1/46 37,233
70,208 Federal Home Loan Mortgage Corp., 3.5%, 12/1/46 72,650
24,849 Federal Home Loan Mortgage Corp., 3.5%, 6/1/47 25,563
59,085 Federal Home Loan Mortgage Corp., 3.5%, 7/1/47 60,781
58,914 Federal Home Loan Mortgage Corp., 3.5%, 8/1/47 60,605
115,990 Federal Home Loan Mortgage Corp., 4.0%, 1/1/44 121,898
34,779 Federal Home Loan Mortgage Corp., 4.0%, 2/1/44 36,833
199,604 Federal Home Loan Mortgage Corp., 4.0%, 5/1/44 209,585
13,509 Federal Home Loan Mortgage Corp., 4.0%, 12/1/44 14,179
22,107 Federal Home Loan Mortgage Corp., 4.0%, 1/1/46 23,205
37,772 Federal Home Loan Mortgage Corp., 4.0%, 2/1/46 39,648
111,890 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 117,446
48,545 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 51,309
48,582 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 50,994
24,752 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 26,161
24,378 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 25,766
119,855 Federal Home Loan Mortgage Corp., 4.0%, 5/1/47 125,806
224,249 Federal Home Loan Mortgage Corp., 4.0%, 10/1/47 235,384
45,383 Federal Home Loan Mortgage Corp., 4.5%, 6/1/41 48,658
80,860 Federal Home Loan Mortgage Corp., 4.5%, 5/1/47 86,380
23,973 Federal Home Loan Mortgage Corp., 5.0%, 9/1/38 26,172
27,892 Federal Home Loan Mortgage Corp., 5.0%, 10/1/38 30,451
4,376 Federal Home Loan Mortgage Corp., 5.0%, 5/1/39 4,805
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 29
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
7,211 Federal Home Loan Mortgage Corp., 5.0%, 12/1/39 $ 7,929
18,192 Federal Home Loan Mortgage Corp., 6.0%, 8/1/37 20,645
16,106 Federal Home Loan Mortgage Corp., 6.5%, 1/1/38 18,320
35,965 Federal Home Loan Mortgage Corp., 6.5%, 4/1/38 39,931
59,388 Government National Mortgage Association I,
3.5%, 11/15/41 61,846
10,547 Government National Mortgage Association I, 3.5%,
10/15/42 11,003
33,953 Government National Mortgage Association I, 3.5%,
8/15/46 35,304
44,088 Government National Mortgage Association I, 4.0%,
4/15/45 46,380
62,576 Government National Mortgage Association I, 4.0%,
6/15/45 65,806
30,243 Government National Mortgage Association I, 4.5%,
1/15/40 32,692
24,509 Government National Mortgage Association I, 4.5%,
9/15/40 26,451
12,059 Government National Mortgage Association I, 4.5%,
10/15/40 12,903
21,935 Government National Mortgage Association I, 4.5%,
7/15/41 23,596
36,678 Government National Mortgage Association II, 3.0%,
9/20/46 37,146
35,108 Government National Mortgage Association II, 4.5%,
9/20/41 37,743
23,366 Government National Mortgage Association II, 4.5%,
10/20/44 24,796
50,099 Government National Mortgage Association II, 4.5%,
11/20/44 53,163
172,000 Government National Mortgage Association II, 4.5%,
10/20/47 182,868
300,000(f) U.S. Treasury Bill, 11/24/17 299,814
427,478 U.S. Treasury Inflation Indexed Bonds, 0.75%, 2/15/45 408,677
203,418 U.S. Treasury Inflation Indexed Bonds, 0.875%, 2/15/47 200,793
233,143 U.S. Treasury Inflation Indexed Bonds, 1.0%, 2/15/46 237,015
75,000 U.S. Treasury Note, 2.25%, 8/15/27 74,174
--------------
$ 8,396,159
-----------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $8,346,112) $ 8,396,159
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 36.8% of Net Assets
Argentina -- 3.6%
100,000 Argentine Republic Government International Bond,
6.875%, 1/26/27 $ 109,000
300,000 Argentine Republic Government International Bond,
7.5%, 4/22/26 339,000
250,000 City of Buenos Aires Argentina, 7.5%, 6/1/27 (144A) 279,283
ARS 1,349,000(f) Letras del Banco Central de la Republica Argentina, 4/18/18 67,583
300,000 Provincia de Buenos Aires, 9.125%, 3/16/24 (144A) 349,500
300,000 Provincia de Buenos Aires, 9.95%, 6/9/21 (144A) 348,795
210,000 Provincia de Entre Rios Argentina, 8.75%, 2/8/25 (144A) 227,325
--------------
$ 1,720,486
-----------------------------------------------------------------------------------------------------
Australia -- 3.2%
AUD 1,725,000 Australia Government Bond, 4.75%, 4/21/27 $ 1,553,625
-----------------------------------------------------------------------------------------------------
Austria -- 0.2%
EUR 50,000 Republic of Austria Government Bond, 4.15%, 3/15/37
(144A) $ 88,682
-----------------------------------------------------------------------------------------------------
Bahrain -- 0.4%
200,000 Bahrain Government International Bond, 7.0%,
10/12/28 (144A) $ 205,512
-----------------------------------------------------------------------------------------------------
Brazil -- 0.5%
228,000 Brazil Minas SPE via State of Minas Gerais, 5.333%,
2/15/28 (144A) $ 231,990
-----------------------------------------------------------------------------------------------------
Canada -- 4.9%
CAD 1,500,000 Canadian Government Bond, 1.75%, 9/1/19 $ 1,171,185
CAD 1,500,000 Canadian Government Bond, 2.25%, 6/1/25 1,197,755
--------------
$ 2,368,940
-----------------------------------------------------------------------------------------------------
Cote D'Ivoire -- 1.2%
EUR 100,000 Ivory Coast Government International Bond, 5.125%,
6/15/25 (144A) $ 123,056
415,000 Ivory Coast Government International Bond, 6.375%,
3/3/28 (144A) 430,893
--------------
$ 553,949
-----------------------------------------------------------------------------------------------------
Ecuador -- 0.7%
200,000 Ecuador Government International Bond, 8.875%,
10/23/27 (144A) $ 204,622
105,263(b) EP PetroEcuador via Noble Sovereign Funding I, Ltd.,
6.961% (3 Month USD LIBOR + 563 bps), 9/24/19 107,158
--------------
$ 311,780
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 31
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Egypt -- 2.2%
220,000 Egypt Government International Bond, 7.5%, 1/31/27
(144A) $ 243,890
EGP 10,750,000(f) Egypt Treasury Bills, 3/6/18 573,103
EGP 4,700,000(f) Egypt Treasury Bills, 5/15/18 242,510
--------------
$ 1,059,503
-----------------------------------------------------------------------------------------------------
Gabon -- 0.8%
400,000 Gabon Government International Bond, 6.375%,
12/12/24 (144A) $ 392,064
-----------------------------------------------------------------------------------------------------
Germany -- 3.0%
EUR 1,250,000 Bundesrepublik Deutschland, 0.25%, 2/15/27 $ 1,451,299
-----------------------------------------------------------------------------------------------------
Honduras -- 0.7%
315,000 Honduras Government International Bond, 6.25%,
1/19/27 (144A) $ 339,687
-----------------------------------------------------------------------------------------------------
Japan -- 3.2%
JPY 120,000,000 Japan Government Ten Year Bond, 0.1%, 9/20/26 $ 1,061,557
JPY 50,000,000 Japan Government Ten Year Bond, 1.0%, 12/20/21 459,725
--------------
$ 1,521,282
-----------------------------------------------------------------------------------------------------
Mexico -- 1.1%
MXN 3,830,000 Mexican Bonos, 4.75%, 6/14/18 $ 196,961
MXN 2,400,000 Mexican Bonos, 6.5%, 6/9/22 122,616
MXN 300,000 Mexican Bonos, 7.5%, 6/3/27 15,893
MXN 3,353,592 Mexican Udibonos, 2.0%, 6/9/22 165,905
--------------
$ 501,375
-----------------------------------------------------------------------------------------------------
New Zealand -- 3.5%
NZD 2,125,000 New Zealand Government Bond, 5.5%, 4/15/23 $ 1,678,476
-----------------------------------------------------------------------------------------------------
Nigeria -- 0.9%
408,000 Africa Finance Corp., 4.375%, 4/29/20 (144A) $ 421,891
-----------------------------------------------------------------------------------------------------
Norway -- 1.5%
NOK 5,500,000 Norway Government Bond, 4.5%, 5/22/19 (144A) $ 714,162
-----------------------------------------------------------------------------------------------------
Oman -- 0.4%
200,000 Oman Government International Bond, 5.375%,
3/8/27 (144A) $ 205,277
-----------------------------------------------------------------------------------------------------
Paraguay -- 0.4%
200,000 Paraguay Government International Bond, 4.7%,
3/27/27 (144A) $ 210,000
-----------------------------------------------------------------------------------------------------
Senegal -- 0.4%
200,000 Senegal Government International Bond, 6.25%,
5/23/33 (144A) $ 206,730
-----------------------------------------------------------------------------------------------------
Sri Lanka -- 0.5%
200,000 Sri Lanka Government International Bond, 6.2%,
5/11/27 (144A) $ 212,550
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Sweden -- 0.7%
SEK 2,300,000 Sweden Government Bond, 2.5%, 5/12/25 $ 318,978
-----------------------------------------------------------------------------------------------------
Turkey -- 0.3%
140,000 Hazine Mustesarligi Varlik Kiralama AS, 5.004%,
4/6/23 (144A) $ 142,552
-----------------------------------------------------------------------------------------------------
United Kingdom -- 2.3%
GBP 450,000 United Kingdom Gilt, 3.5%, 1/22/45 $ 794,317
GBP 150,000 United Kingdom Gilt, 4.25%, 9/7/39 282,632
--------------
$ 1,076,949
-----------------------------------------------------------------------------------------------------
Uruguay -- 0.2%
UYU 2,910,000 Uruguay Government International Bond, 9.875%,
6/20/22 (144A) $ 105,939
-----------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $17,706,800) $ 17,593,678
-----------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 1.0% of Net Assets (i)
Municipal Higher Education -- 0.2%
25,000 Baylor University, Series A, 4.313%, 3/1/42 $ 26,029
25,000 California Educational Facilities Authority, Stanford
University, Series U-7, 5.0%, 6/1/46 33,500
15,000 Massachusetts Development Finance Agency, Harvard
University, Series A, 5.0%, 7/15/40 19,797
50,000 University of Virginia, Refunding General Green,
Series A-2, 5.0%, 4/1/45 57,570
--------------
$ 136,896
-----------------------------------------------------------------------------------------------------
Municipal General -- 0.4%
70,000 JobsOhio Beverage System, Series B, 3.985%, 1/1/29 $ 74,297
20,000 JobsOhio Beverage System, Series B, 4.532%, 1/1/35 21,920
30,000 Virginia Commonwealth Transportation Board,
Transportation Capital Projects, 4.0%, 5/15/31 32,416
30,000 Virginia Commonwealth Transportation Board,
Transportation Capital Projects, 4.0%, 5/15/32 32,229
--------------
$ 160,862
-----------------------------------------------------------------------------------------------------
Municipal Obligation -- 0.2%
50,000(j) State of Texas, Transportation Commission Mobility Fund,
Series A, 4.0%, 10/1/44 $ 52,812
50,000(j) State of Washington, Series R-2015D, 5.0%, 7/1/30 59,304
--------------
$ 112,116
-----------------------------------------------------------------------------------------------------
Municipal School District -- 0.2%
25,000(j) Frisco Independent School District, 4.0%, 8/15/40 $ 26,440
25,000(j) Frisco Independent School District, 4.0%, 8/15/45 $ 26,323
--------------
$ 52,763
-----------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $447,887) $ 462,637
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 33
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 3.2% of Net Assets*(b)
AUTOMOBILES & COMPONENTS -- 0.2%
Auto Parts & Equipment -- 0.2%
49,375 American Axle & Manufacturing, Inc., Tranche B Term
Loan, 3.556% (LIBOR + 225 bps), 4/6/24 $ 49,463
49,389 Electrical Components International, Inc., Term Loan,
6.085% (LIBOR + 475 bps), 5/28/21 49,806
--------------
Total Automobiles & Components $ 99,269
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.2%
Aerospace & Defense -- 0.1%
50,000(k) MacDonald, Dettwiler and Associates, Ltd., Initial Term B
Loan, 10/4/24 $ 50,357
-----------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.1%
49,625 Milacron LLC, Term B Loan, 4.242% (LIBOR + 300 bps),
9/28/23 $ 49,956
--------------
Total Capital Goods $ 100,313
-----------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.1%
Footwear -- 0.1%
49,750 Regal Cinemas Corp., New Term Loan, 3.242%
(LIBOR + 200 bps), 4/1/22 $ 49,795
--------------
Total Consumer Durables & Apparel $ 49,795
-----------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.1%
Specialized Consumer Services -- 0.1%
49,624 KUEHG Corp. (fka KC MergerSub, Inc.), Term B-2 Loan,
5.083% (LIBOR + 375 bps), 8/12/22 $ 49,847
--------------
Total Consumer Services $ 49,847
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.6%
Other Diversified Financial Services -- 0.5%
235,000 Commonwealth of The Bahamas, First Lien Term Loan,
5.266% (LIBOR + 375 bps), 9/30/19 $ 235,000
-----------------------------------------------------------------------------------------------------
Specialized Finance -- 0.1%
49,646 1011778 BC Unlimited Liability Co. (New Red Finance, Inc.)
(aka Burger King/Tim Hortons), Term B-3 Loan,
3.528% (LIBOR + 225 bps), 2/16/24 $ 49,718
--------------
Total Diversified Financials $ 284,718
-----------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.1%
Packaged Foods & Meats -- 0.1%
25,000 Give and Go Prepared Foods Corp., First Lien 2017 Term
Loan, 5.564% (LIBOR + 425 bps), 7/29/23 $ 25,336
--------------
Total Food, Beverage & Tobacco $ 25,336
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.2%
Health Care Facilities -- 0.1%
49,112 Kindred Healthcare, Inc., New Term Loan, 4.875%
(LIBOR + 350 bps), 4/9/21 $ 49,348
-----------------------------------------------------------------------------------------------------
Health Care Technology -- 0.1%
24,875 Change Healthcare Holdings, Inc. (fka Emdeon, Inc.),
Closing Date Term Loan, 3.992% (LIBOR + 275 bps),
3/1/24 $ 25,037
--------------
Total Health Care Equipment & Services $ 74,385
-----------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.2%
Personal Products -- 0.2%
99,497 Revlon Consumer Products Corp., Initial Term Loan B,
4.742% (LIBOR + 350 bps), 9/7/23 $ 86,252
--------------
Total Household & Personal Products $ 86,252
-----------------------------------------------------------------------------------------------------
INSURANCE -- 0.1%
Life & Health Insurance -- 0.1%
49,873 Integro Parent, Inc., First Lien Initial Term Loan, 7.113%
(LIBOR + 575 bps), 10/31/22 $ 49,873
--------------
Total Insurance $ 49,873
-----------------------------------------------------------------------------------------------------
MATERIALS -- 0.1%
Steel -- 0.1%
49,625 Zekelman Industries, Inc. (fka JMC Steel Group, Inc.),
Term Loan, 4.073% (LIBOR + 275 bps), 6/14/21 $ 49,953
--------------
Total Materials $ 49,953
-----------------------------------------------------------------------------------------------------
MEDIA -- 0.1%
Cable & Satellite -- 0.1%
49,000(k) UPC Financing Partnership, Facility AR, 1/15/26 $ 49,221
--------------
Total Media $ 49,221
-----------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 0.3%
Pharmaceuticals -- 0.3%
99,750 Endo Luxembourg Finance Company I S.a.r.l., Initial Term
Loan, 5.5% (LIBOR + 425 bps), 4/29/24 $ 101,172
49,598 RPI Finance Trust, Initial Term Loan B-6, 3.333%
(LIBOR + 200 bps), 3/27/23 49,843
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 151,015
-----------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.2%
Retail REIT -- 0.2%
98,987 DTZ US Borrower LLC, First Lien 2015-1 Additional Term
Loan, 4.586% (LIBOR + 325 bps), 11/4/21 $ 99,621
--------------
Total Real Estate $ 99,621
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 35
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
RETAILING -- 0.2%
Automotive Retail -- 0.1%
49,625 CWGS Group LLC, Term Loan, 4.238% (LIBOR +
300-375 bps), 11/8/23 $ 50,131
-----------------------------------------------------------------------------------------------------
Specialty Stores -- 0.1%
50,000 Staples, Inc., Closing Date Term Loan, 5.31% (LIBOR +
400 bps), 9/12/24 $ 47,290
--------------
Total Retailing $ 97,421
-----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.2%
Internet Software & Services -- 0.0%+
24,875 Rackspace Hosting, Inc., First Lien 2017 Refinancing
Term B Loan, 4.311% (LIBOR + 300 bps), 11/3/23 $ 24,873
-----------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.1%
24,911 Go Daddy Operating Co., LLC (GD Finance Co., Inc.),
Initial Term Loan, 3.742% (LIBOR + 250 bps), 2/15/24 $ 25,049
-----------------------------------------------------------------------------------------------------
Systems Software -- 0.1%
6,000 MA FinanceCo., LLC (aka Micro Focus International Plc),
Tranche B-3 Term Loan, 3.989% (LIBOR + 275 bps),
6/21/24 $ 6,012
44,000 Seattle Spinco, Inc. (aka Micro Focus International Plc),
Initial Term Loan, 3.988% (LIBOR + 275 bps), 6/21/24 44,091
--------------
$ 50,103
--------------
Total Software & Services $ 100,025
-----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICE -- 0.3%
Integrated Telecommunication Services -- 0.2%
100,000 CenturyLink, Inc., Initial Term B Loan, 2.75% (Ticking
Fee + 275 bps), 1/31/25 $ 98,802
-----------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.1%
49,750 Sprint Communications, Inc., Initial Term Loan, 3.75%
(LIBOR + 250 bps), 2/2/24 $ 49,954
--------------
Total Telecommunication Service $ 148,756
-----------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE LOAN INTERESTS
(Cost $1,518,496) $ 1,515,800
-----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS -- 96.9%
(Cost $45,499,717) $ 46,437,077
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Net Change in Net
Realized Unrealized
Gain Appreciation
Shares Income (Loss) (Depreciation) Value
-----------------------------------------------------------------------------------------------------
AFFILIATED ISSUER -- 1.5%
CLOSED-END FUND --
1.5% of Net Assets
INSURANCE -- 1.5%
Property & Casualty
Insurance -- 1.5%
72,732 Pioneer ILS Interval
Fund(l) 46,809 (338) (80,092) $ 699,686
--------------
Total Insurance $ 699,686
-----------------------------------------------------------------------------------------------------
TOTAL CLOSED-END FUND
(Cost $758,052) $ 699,686
-----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED ISSUER -- 1.5%
(Cost -- $758,052) $ 699,686
-----------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.6% $ 784,038
-----------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 47,920,801
=====================================================================================================
BPS Basis Point.
LIBOR London Interbank Offered Rate.
REIT Real Estate Investment Trust.
REMICS Real Estate Mortgage Investment Conduits.
FREMF Freddie Mac Multifamily Fixed-Rate Mortgage Loans.
(TBA) "To Be Announced" Securities.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
October 31, 2017, the value of these securities amounted to
$11,172,861, or 23.3% of total net assets.
+ Amount rounds to less than 0.1%.
* Senior secured floating rate loan interests in which the Fund invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending rate plus a premium. These base lending
rates are generally (i) the lending rate offered by one or more major
European banks, such as LIBOR, (ii) the prime rate offered by one or
more major United States banks, (iii) the rate of a certificate of
deposit or (iv) other base lending rates used by commercial lenders.
The interest rate shown is the rate accruing at October 31, 2017.
+ Securities that used significant unobservable inputs to determine
their value.
(a) Debt obligation initially issued at one coupon which converts to a
higher coupon at a specific date. The rate shown is the rate at
October 31, 2017.
(b) Floating rate note. The Coupon rate, reference index and spread shown
at October 31, 2017.
(c) Security is perpetual in nature and has no stated maturity date.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 37
Schedule of Investments | 10/31/17 (continued)
(d) The interest rate is subject to change periodically. The interest
rate, reference index and spread shown at October 31, 2017.
(e) Security represents the interest-only portion payments on a pool of
underlying mortgages or mortgage-backed securities.
(f) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(g) Structured reinsurance investment. At October 31, 2017, the value of
these securities amounted to $103,022, or 0.2% of total net assets.
See Notes to Financial Statements -- Note 1I.
(h) Rate to be determined.
(i) Consists of Revenue Bonds unless otherwise indicated.
(j) Represents a General Obligation Bond.
(k) This term loan will settle after October 31, 2017, at which time the
interest rate will be determined.
(l) Affiliated fund managed by Amundi Pioneer Asset Management, Inc.,
formerly Pioneer Investment Management, Inc. (the "Adviser").
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
SWAP CONTRACTS
CENTRALLY CLEARED DEFAULT SWAP CONTRACT - SELL PROTECTION
----------------------------------------------------------------------------------------------------------------
Obligation Annual
Notional Reference/ Pay/ Fixed Expiration Premiums Unrealized Market
Amount ($)(1) Index Receive(2) Rate Date Paid Appreciation Value
----------------------------------------------------------------------------------------------------------------
336,253 Markit CDX North Pay 5.00% 12/20/19 $18,246 $5,411 $23,657
America High Yield
Index Series 23
----------------------------------------------------------------------------------------------------------------
CREDIT DEFAULT SWAP CONTRACT - SELL PROTECTION
OVER THE COUNTER (OTC)
----------------------------------------------------------------------------------------------------------------------------
Obligation Annual
Notional Reference/ Pay/ Fixed Expiration Premiums Unrealized Market
Amount ($)(1) Counterparty Index Receive(2) Rate Date (Received) Appreciation Value
----------------------------------------------------------------------------------------------------------------------------
50,000 Morgan Stanley Diamond Pay 1.00% 12/20/19 $(1,873) $2,605 $ 732
Capital Offshore
Services LLC Drilling, Inc.
----------------------------------------------------------------------------------------------------------------------------
TOTAL SWAP CONTRACTS $16,373 $8,016 $ 24,389
============================================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Pays Quarterly
FUTURES CONTRACTS
FIXED INCOME INDEX FUTURES CONTRACTS
----------------------------------------------------------------------------------------------------------------------------
Number of Net Unrealized
Contracts Expiration Notional Market Appreciation
Long Description Date Amount Value (Depreciation)
----------------------------------------------------------------------------------------------------------------------------
2 Euro-Bund 12/07/2017 $ 378,369 $ 379,208 $ 839
5 Euro BUXL 12/07/2017 968,698 967,649 (1,049)
30 Year Bond
2 U.S. 2 Year 12/29/2017 432,500 430,719 (1,781)
Note (CBT)
10 U.S. Ultra 12/19/2017 1,662,890 1,647,813 (15,077)
Bond (CBT)
----------------------------------------------------------------------------------------------------------------------------
$ 3,442,457 $ 3,425,389 $ (17,068)
============================================================================================================================
----------------------------------------------------------------------------------------------------------------------------
Number of Net Unrealized
Contracts Expiration Notional Market Appreciation
(Short) Description Date Amount Value (Depreciation)
----------------------------------------------------------------------------------------------------------------------------
17 Euro-BOBL 12/07/2017 $ 2,608,120 $ 2,609,903 $ (1,783)
22 U.S. 5 Year 12/29/2017 2,603,237 2,578,125 25,112
Note (CBT)
43 U.S. 10 Year 12/19/2017 5,444,165 5,372,312 71,853
Note (CBT)
2 U.S. 10 Year Ultra 12/19/2017 271,995 267,844 4,151
----------------------------------------------------------------------------------------------------------------------------
$ 10,927,517 $10,828,184 $ 99,333
----------------------------------------------------------------------------------------------------------------------------
TOTAL FUTURES CONTRACTS $ 7,485,060 $ 7,402,795 $ 82,265
============================================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 39
Schedule of Investments | 10/31/17 (continued)
FORWARD FOREIGN CURRENCY CONTRACTS
--------------------------------------------------------------------------------------------------------------
Net Unrealized
Currency Currency Settlement Appreciation
Purchased In Exchange for Sold Deliver Counterparty Date (Depreciation)
--------------------------------------------------------------------------------------------------------------
USD 346,369 INR 22,302,702 Bank of America NA 11/09/17 $ 2,245
USD 475,172 NZD 677,035 Bank of America NA 11/24/17 12,148
IDR 1,481,876,069 USD 110,107 Bank of America NA 11/09/17 (905)
CZK 12,685,636 EUR 492,447 Citibank NA 11/20/17 2,051
JPY 272,076,654 NZD 3,390,000 Citibank NA 11/17/17 75,623
EUR 755,582 USD 890,883 Citibank NA 11/21/17 (9,718)
EUR 1,334,197 USD 1,570,586 Citibank NA 11/21/17 (14,635)
NOK 3,000,000 USD 377,134 Citibank NA 11/20/17 (9,856)
USD 262,388 ZAR 3,572,651 Citibank NA 11/13/17 10,314
CHF 525,000 EUR 455,974 Goldman Sachs 11/20/17 (5,051)
International
JPY 290,296,853 KRW 2,963,945,790 Goldman Sachs 11/10/17 (96,513)
International
BRL 1,580,501 USD 477,926 Goldman Sachs 1/31/18 (549)
International
PHP 12,715,000 USD 251,384 Goldman Sachs 11/03/17 (4,964)
International
USD 1,710,882 AUD 2,187,278 JP Morgan Chase 11/06/17 36,586
Bank NA
USD 249,045 PHP 12,715,000 JP Morgan Chase 11/03/17 2,626
Bank NA
IDR 6,382,915,845 THB 15,839,000 JP Morgan Chase 11/27/17 (7,118)
Bank NA
EUR 1,400,000 USD 1,692,031 JP Morgan Chase 12/11/17 (57,363)
Bank NA
USD 1,205,090 CAD 1,527,315 State Street Bank 11/10/17 20,538
& Trust Co.
GBP 175,000 EUR 196,139 State Street Bank 11/20/17 3,847
& Trust Co.
SEK 8,644,563 EUR 898,723 State Street Bank 11/13/17 (13,946)
& Trust Co.
EUR 100,268 GBP 89,565 State Street Bank 11/20/17 (2,104)
& Trust Co.
USD 236,435 GBP 179,138 State Street Bank 11/21/17 (1,644)
& Trust Co.
USD 582,819 HUF 152,026,473 State Street Bank 1/25/18 11,518
& Trust Co.
USD 156,582 NZD 218,968 State Street Bank 11/06/17 6,777
& Trust Co.
USD 194,272 NZD 270,521 State Street Bank 11/17/17 9,237
& Trust Co.
EUR 207,000 USD 240,358 State Street Bank 11/30/17 1,170
& Trust Co.
GBP 425,000 USD 560,693 State Street Bank 11/21/17 4,143
& Trust Co.
SEK 10,429,816 USD 1,247,280 State Street Bank 11/30/17 1,109
& Trust Co.
ZAR 3,575,155 USD 251,792 State Street Bank 11/13/17 459
& Trust Co.
--------------------------------------------------------------------------------------------------------------
TOTAL FORWARD FOREIGN CURRENCY CONTRACTS $(23,975)
==============================================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
Principal amounts are denominated in U.S. dollars unless otherwise noted.
ARS Argentine Peso
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
CHF Swiss Franc
CZK Czech Koruna
EGP Egyptian Pound
EUR Euro
GBP Great British Pound
HUF Hungarian Forint
IDR Indonesian Rupiah
INR Indian Rupee
JPY Japanese Yen
KRW South Korean Won
MXN Mexican Peso
NOK Norwegian Krone
NZD New Zealand Dollar
PHP Philippine Peso
SEK Swedish Krona
THB Thai Baht
UYU Uruguayan Peso
ZAR South African Rand
At October 31, 2017, the net unrealized appreciation on investments based on
cost for federal tax purposes of $46,346,307 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 2,247,195
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (1,374,060)
-----------
Net unrealized appreciation $ 873,135
===========
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2017 were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government $15,664,288 $11,093,098
Other Long-Term Securities $35,311,090 $18,893,503
The Fund is permitted to engage in purchase and sale transactions (cross trades)
with certain funds and accounts for which the Adviser serves as the investment
adviser, as set forth in Rule 17a-7 under the Investment Company Act of 1940,
pursuant to procedures adopted by the Board of Trustees. Under these procedures,
cross trades are effected at current market prices. During the year ended
October 31, 2017, the Fund engaged in purchases and sales pursuant to these
procedures amounting to $0 and $51,082, respectively, which resulted in a net
realized gain of $3,645.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 -- quoted prices in active markets for identical securities.
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 41
Schedule of Investments | 10/31/17 (continued)
The following is a summary of the inputs used as of October 31, 2017, in valuing
the Fund's investments.
-------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------
Convertible Corporate Bond $ -- $ 29,779 $ -- $ 29,779
Preferred Stock 6,066 -- -- 6,066
Convertible Preferred Stocks 246,364 -- -- 246,364
Asset Backed Securities -- 451,143 -- 451,143
Collateralized Mortgage Obligations -- 2,254,586 -- 2,254,586
Corporate Bonds
Insurance
Reinsurance -- -- 103,022 103,022
All Other Corporate Bonds -- 15,377,843 -- 15,377,843
U.S. Government and Agency Obligations -- 8,396,159 -- 8,396,159
Foreign Government Bonds -- 17,593,678 -- 17,593,678
Municipal Bonds -- 462,637 -- 462,637
Senior Secured Floating Rate
Loan Interests -- 1,515,800 -- 1,515,800
Closed-End Fund 699,686 -- -- 699,686
------------------------------------------------------------------------------------
Total Investments in Securities $952,116 $46,081,625 $103,022 $47,136,763
====================================================================================
--------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------
Other Financial Instruments
Net unrealized appreciation
on futures contracts $ 82,265 $ -- $ -- $ 82,265
Net unrealized depreciation
on forward foreign currency contracts -- (23,975) -- (23,975)
Swap contracts, at value -- $ 24,389 -- $ 24,389
--------------------------------------------------------------------------------------------
Total Other Financial Instruments $ 82,265 $ 414 $ -- $ 82,679
============================================================================================
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
--------------------------------------------------------------------------------
Corporate
Bonds
--------------------------------------------------------------------------------
Balance as of 10/31/16 $ 126,790
Realized gain (loss)(1) 2,747
Change In unrealized appreciation (depreciation)(2) (23,409)
Accrued discounts/premiums (79)
Purchases 110,000
Sales (113,027)
Transfers in to Level 3* --
Transfers out of Level 3* --
--------------------------------------------------------------------------------
Balance as of 10/31/17 $ 103,022
================================================================================
(1) Realized gain (loss) on these securities is included in net realized gain
(loss) on investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
change in unrealized appreciation (depreciation) on investments in the
Statement of Operations.
* Transfers are calculated on the beginning of period values. During the year
ended October 31, 2017, there were no transfers between Levels 1, 2 and 3.
Net change in unrealized depreciation of Level 3 investments still
held and considered Level 3 at October 31, 2017: $(17,253)
--------
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
Statement of Assets and Liabilities | 10/31/17
ASSETS:
Investment in unaffiliated issuers, at value (cost $45,499,717) $46,437,077
Investment in affiliated issuers, at value (cost $758,052) 699,686
Cash 26,478
Foreign currencies, at value (cost $445,430) 436,742
Swap contracts, at value (net premiums paid $16,373) 24,389
Variation margin for centrally cleared swap contracts 185
Variation margin for futures contracts 12,225
Swaps collateral 25,084
Futures collateral 161,550
Net unrealized appreciation on futures contracts 82,265
Receivables --
Investment securities sold 296,815
Fund shares sold 27,041
Interest 403,540
Due from the Adviser 29,458
Other assets 27,975
--------------------------------------------------------------------------------
Total assets $48,690,510
================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 367,562
Fund shares repurchased 67,902
Distributions 71,961
Professional fees 46,626
Transfer Agent fees 49,063
Trustees' fees 650
Due to broker for futures 82,371
Due to broker for swaps 23,936
Net unrealized depreciation on forward foreign currency contracts 23,975
Due to affiliates 6,460
Accrued expenses 29,203
--------------------------------------------------------------------------------
Total liabilities $ 769,709
================================================================================
NET ASSETS:
Paid-in capital $47,126,509
Distributions in excess of net investment income (61,861)
Accumulated net realized gain on investments (82,265)
Net unrealized appreciation on investments 938,418
--------------------------------------------------------------------------------
Net assets $47,920,801
================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $23,251,698/2,173,349 shares) $ 10.70
Class C (based on $10,024,476/934,101 shares) $ 10.73
Class Y (based on $14,644,627/1,356,169 shares) $ 10.80
MAXIMUM OFFERING PRICE:
Class A ($10.70 (divided by) 95.5%) $ 11.20
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 43
Statement of Operations
For the Year Ended 10/31/17
INVESTMENT INCOME:
Interest from unaffiliated issuers $1,662,231
Dividends from unaffiliated issuers 11,680
Dividends from affiliated issuers 46,809
-----------------------------------------------------------------------------------------------
Total investment income $1,720,720
-----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 210,356
Administrative expense 33,678
Transfer agent fees
Class A 151,896
Class C 3,627
Class Y 2,175
Distribution fees
Class A 53,317
Class C 85,090
Shareholder communications expense 6,016
Custodian fees 63,402
Registration fees 52,588
Professional fees 56,361
Printing expense 36,274
Pricing expense 38,371
Trustees' fees 7,175
Miscellaneous 18,311
-----------------------------------------------------------------------------------------------
Total expenses $ 818,637
Less fees waived and expenses reimbursed
by the Adviser (338,112)
-----------------------------------------------------------------------------------------------
Net expenses $ 480,525
-----------------------------------------------------------------------------------------------
Net investment income $1,240,195
-----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $ (498,259)
Investments in affiliated issuers (338)
Futures contracts 46,453
Swap contracts 11,816
Forward foreign currency contracts 239,485
Other assets and liabilities denominated in
foreign currencies 33,414 $ (167,429)
-----------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $1,153,278
Investments in affiliated issuers (80,092)
Futures contracts 54,777
Swap contracts 4,146
Forward foreign currency contracts (115,907)
Other assets and liabilities denominated in foreign currencies (2,807) $1,013,395
-----------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 845,966
-----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $2,086,161
===============================================================================================
The accompanying notes are an integral part of these financial statements.
44 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/17 10/31/16*
----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 1,240,195 $ 847,139
Net realized (loss) on investments (167,429) (526,527)
Change in net unrealized appreciation on investments 1,013,395 1,196,933
----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 2,086,161 $ 1,517,545
========================================================================================
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.19 and $0.28 per share, respectively) $ (379,152) (353,498)
Class C ($0.10 and $0.19 per share, respectively) (77,730) (80,543)
Class Y ($0.22 and $0.31 per share, respectively) (311,287) (343,125)
Tax return of capital:
Class A ($0.04 and $0.08 per share, respectively) (83,787) (104,457)
Class C ($0.04 and $0.08 per share, respectively) (34,110) (34,504)
Class Y ($0.04 and $0.08 per share, respectively) (58,205) (88,241)
Net realized gain:
Class A ($0.06 and $0.00 per share, respectively) (124,161) --
Class C ($0.06 and $0.00 per share, respectively) (52,182) --
Class Y ($0.06 and $0.00 per share, respectively) (82,869) --
----------------------------------------------------------------------------------------
Total distributions to shareowners $ (1,203,483) $ (1,004,368)
========================================================================================
FROM TRUST SHARE TRANSACTIONS:
Net proceeds from sales of shares $ 32,624,032 $ 4,445,955
Reinvestment of distributions 425,141 501,412
Cost of shares repurchased (14,727,405) (5,772,331)
----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ 18,321,768 $ (824,964)
----------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 19,204,446 $ (311,787)
NET ASSETS:
Beginning of year $ 28,716,355 $ 29,028,142
----------------------------------------------------------------------------------------
End of year $ 47,920,801 $ 28,716,355
----------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (61,861) $ (136,437)
========================================================================================
* The Fund was audited by an independent registered public accounting
firm other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 45
Statements of Changes in Net Assets (continued)
-------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/17 10/31/17 10/31/16* 10/31/16*
Shares Amount Shares Amount
-------------------------------------------------------------------------------------
Class A
Shares sold 1,332,849 $13,903,813 252,692 $ 2,632,483
Reinvestment of distributions 30,403 321,073 38,692 401,821
Less shares repurchased (471,394) (4,975,818) (234,361) (2,430,066)
-------------------------------------------------------------------------------------
Net increase 891,858 $ 9,249,068 57,023 $ 604,238
=====================================================================================
Class C
Shares sold 621,101 $ 6,507,819 112,725 $ 1,164,736
Reinvestment of distributions 5,130 54,428 6,441 67,019
Less shares repurchased (103,349) (1,099,330) (102,171) (1,056,421)
-------------------------------------------------------------------------------------
Net increase 522,882 $ 5,462,917 16,995 $ 175,334
=====================================================================================
Class Y
Shares sold 1,159,480 $12,212,400 62,209 $ 648,736
Reinvestment of distributions 4,636 49,640 3,104 32,572
Less shares repurchased (815,102) (8,652,257) (218,162) (2,285,844)
-------------------------------------------------------------------------------------
Net increase
(decrease) 349,014 $ 3,609,783 (152,849) $ (1,604,536)
=====================================================================================
* The Fund was audited by an independent registered public accounting
firm other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
46 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/17 10/31/16* 10/31/15* 10/31/14* 10/31/13
-----------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.60 $ 10.40 $ 10.91 $ 10.98 $ 11.49
-----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.30(a) $ 0.31(a) $ 0.31(a) $ 0.38 $ 0.30
Net realized and unrealized gain (loss) on investments 0.09 0.25 (0.41) (0.04) (0.35)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.39 $ 0.56 $ (0.10) $ 0.34 $ (0.05)
-----------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.19) $ (0.28) $ (0.31) $ (0.35) $ (0.29)
Net realized gain (0.06) -- (0.10) (0.06) (0.17)
Tax return of capital (0.04) (0.08) -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.29) $ (0.36) $ (0.41) $ (0.41) $ (0.46)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.10 $ 0.20 $ (0.51) $ (0.07) $ (0.51)
-----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.70 $ 10.60 $ 10.40 $ 10.91 $ 10.98
=======================================================================================================================
Total return(b) 3.75% 5.59% (1.00)% 3.16% (0.45)%
Ratio of net expenses to average net assets (c) 1.00% 1.00% 1.00% 1.01% 1.00%
Ratio of net investment income (loss) to average net assets 2.83% 2.99% 2.87% 3.57% 3.36%
Portfolio turnover rate 70% 37% 34% 51% 33%
Net assets, end of period (in thousands) $23,252 $13,579 $12,737 $11,601 $ 6,888
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets (c) 2.13% 2.67% 2.67% 2.52% 2.05%
Net investment income (loss) to average net assets 1.70% 1.32% 1.20% 2.06% 2.31%
=======================================================================================================================
* The Fund was audited by an independent registered public accounting
firm other than Ernst & Young LLP.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(c) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.00% and 0.01%,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 47
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/17 10/31/16* 10/31/15* 10/31/14* 10/31/13
-----------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.63 $ 10.43 $ 10.94 $ 11.01 $ 11.51
-----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.21(a) $ 0.22(a) $ 0.21(a) $ 0.29 $ 0.20
Net realized and unrealized gain (loss) on investments 0.09 0.25 (0.41) (0.05) (0.34)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.30 $ 0.47 $ (0.20) $ 0.24 $ (0.14)
-----------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.10) $ (0.19) $ (0.21) $ (0.25) $ (0.19)
Net realized gain (0.06) -- (0.10) (0.06) (0.17)
Tax return of capital (0.04) (0.08) -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.20) $ (0.27) $ (0.31) $ (0.31) $ (0.36)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.10 $ 0.20 $ (0.51) $ (0.07) $ (0.50)
-----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.73 $ 10.63 $ 10.43 $ 10.94 $ 11.01
=======================================================================================================================
Total return (b) 2.88% 4.67% (1.87)% 2.24% (1.24)%
Ratio of net expenses to average net assets (c) 1.81% 1.90% 1.90% 1.91% 1.90%
Ratio of net investment income (loss) to average net assets 2.00% 2.10% 1.96% 2.67% 2.46%
Portfolio turnover rate 70% 37% 34% 51% 33%
Net assets, end of period (in thousands) $10,024 $ 4,370 $ 4,113 $ 4,156 $ 3,847
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets (c) 2.21% 2.53% 2.56% 2.71% 2.75%
Net investment income (loss) to average net assets 1.60% 1.46% 1.30% 1.87% 1.61%
=======================================================================================================================
* The Fund was audited by an independent registered public accounting
firm other than Ernst & Young LLP.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(c) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.00% and 0.01%,
respectively.
The accompanying notes are an integral part of these financial statements.
48 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/17 10/31/16* 10/31/15* 10/31/14* 10/31/13
-----------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.69 $ 10.50 $ 11.00 $ 11.07 $ 11.59
-----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.33(a) $ 0.34(a) $ 0.33(a) $ 0.42 $ 0.33
Net realized and unrealized gain (loss) on investments 0.10 0.24 (0.39) (0.05) (0.36)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.43 $ 0.58 $ (0.06) $ 0.37 $ (0.03)
-----------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.22) $ (0.31) $ (0.34) $ (0.38) $ (0.32)
Net realized gain (0.06) -- (0.10) (0.06) (0.17)
Tax return of capital (0.04) (0.08) -- -- --
-----------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.32) $ (0.39) $ (0.44) $ (0.44) $ (0.49)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.11 $ 0.19 $ (0.50) $ (0.07) $ (0.52)
-----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.80 $ 10.69 $ 10.50 $ 11.00 $ 11.07
=======================================================================================================================
Total return (b) 4.10% 5.73% (0.62)% 3.42% (0.25)%
Ratio of net expenses to average net assets (c) 0.75% 0.75% 0.75% 0.76% 0.75%
Ratio of net investment income (loss) to average net assets 3.10% 3.24% 3.12% 3.81% 3.58%
Portfolio turnover rate 70% 37% 34% 51% 33%
Net assets, end of period (in thousands) $14,645 $10,767 $12,178 $12,525 $17,438
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets (c) 1.17% 1.41% 1.39% 1.50% 1.57%
Net investment income (loss) to average net assets 2.68% 2.59% 2.48% 3.07% 2.76%
=======================================================================================================================
* The Fund was audited by an independent registered public accounting
firm other than Ernst & Young LLP.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(c) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.00% and 0.01%,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 49
Notes to Financial Statements | 10/31/17
1. Organization and Significant Accounting Policies
Pioneer Global Multisector Income Fund (the Fund) is a series of Pioneer Series
Trust VII, a Delaware statutory trust. The Fund is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The investment objective of the Fund is to provide a high level of
current income.
The Fund offers three classes of shares designated as Class A, Class C, and
Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has identical rights (based on relative
net asset values) to assets and liquidation proceeds. Share classes can bear
different rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board of Trustees the
flexibility to specify either per-share voting or dollar-weighted voting when
submitting matters for shareholder approval. Under per-share voting, each share
of a class of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world. Amundi, one of the world's
largest asset managers, is headquartered in Paris, France. As a result of the
transaction, Pioneer Investment Management, Inc., the Fund's investment adviser,
became an indirect wholly owned subsidiary of Amundi and Amundi's wholly owned
subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer Investments was
owned by Pioneer Global Asset Management S.p.A., a wholly owned subsidiary of
UniCredit S.p.A.
In connection with the transaction, the names of the Fund's investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc.
(the "Adviser") and the name of Pioneer Funds Distributor, Inc. changed to
Amundi Pioneer Distributor, Inc. (the "Distributor").
50 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
In October 2016, the Securities and Exchange Commission (SEC) released its Final
Rule on Investment Company Reporting Modernization. In addition to introducing
two new regulatory reporting forms (Form N-PORT and Form N-CEN), the Final Rule
amends Regulation S-X, which impacts financial statement presentation,
particularly related to the presentation of derivative investments. The Fund's
financial statements were prepared in compliance with the amendments to
Regulation S-X.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles (U.S. GAAP) that require the management
of the Fund to make estimates and assumptions that affect the reported amounts
of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the financial statements, and the reported amounts of income,
expenses and gain or loss on investments during the reporting period. Actual
results could differ from those estimates.
The Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the
New York Stock Exchange (NYSE) is open, as of the close of regular
trading on the NYSE.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
The value of foreign securities is translated into U.S. dollars based
on foreign currency exchange rate quotations supplied by a third party
pricing source. Trading in non-U.S. equity securities is substantially
completed each day at various times prior to the close of the NYSE. The
values of such securities
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 51
used in computing the net asset value of the Fund's shares are determined
as of such times. The fund may use a fair value model developed by an
independent pricing service to value non-U.S. equity securities.
Loan interests are valued in accordance with guidelines established by the
Board of Trustees at the mean between the last available bid and asked
prices from one or more brokers or dealers as obtained from Loan Pricing
Corporation, an independent third party pricing service. If price
information is not available from Loan Pricing Corporation, or if the price
information is deemed to be unreliable, price information will be obtained
from an alternative loan interest pricing service. If no reliable price
quotes are available from either the primary or alternative pricing
service, broker quotes will be solicited.
Event-linked bonds or catastrophe bonds are valued at the bid price
obtained from an independent third party pricing service. Other insurance
linked securities (including sidecars, collateralized reinsurance and
industry loss warranties) may be valued at the bid price obtained from an
independent pricing service, or through a third party using a pricing
matrix, insurance industry valuation models, or other fair value methods or
techniques to provide an estimated value of the instrument.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealers Association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Futures contracts are generally valued at the closing settlement price
established by the exchange on which they are traded.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate and the forward points on a daily basis, in each case
provided by a third party pricing service. Contracts whose forward
settlement date falls between two quoted days are valued by interpolation.
52 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
Securities or loan interests for which independent pricing services or
broker dealers are unable to supply prices or for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued by a fair valuation team comprised of certain
personnel of the Adviser, pursuant to procedures adopted by the Fund's
Board of Trustees. The Adviser's fair valuation team uses fair value
methods approved by the Valuation Committee of the Board of Trustees. The
Adviser's fair valuation team is responsible for monitoring developments
that may impact fair valued securities and for discussing and assessing
fair values on an ongoing basis, and at least quarterly, with the Valuation
Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
At October 31, 2017, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services, broker-dealers or using a third party insurance industry pricing
model).
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income-bearing cash accounts, is recorded on the accrual basis,
net of unrecoverable foreign taxes withheld at the applicable country rates
and net of income accrued on defaulted securities. Interest and dividend
income payable by delivery of additional shares is reclassified as PIK
(payment-in-kind) income upon receipt and is included in interest and
dividend income, respectively. Principal amounts of mortgage-backed
securities are adjusted for monthly paydowns. Premiums and discounts
related to certain mortgage-backed securities are amortized or accreted in
proportion to the monthly paydowns. All discounts/premiums on purchase
prices of debt securities are accreted/amortized for financial reporting
purposes over the life of the respective securities, and such
accretion/amortization is included in interest income.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 53
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the statement of operations from
the effects of changes in the market prices of those securities but are
included with the net realized and unrealized gain or loss on investments.
D. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
is recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar.
At October 31, 2017, the Fund had entered into various forward foreign
currency contracts that obligate the Fund to deliver or take delivery of
currencies at specified future maturity dates. Alternatively, prior to the
settlement date of a forward foreign currency contract, the Fund may close
out such contract by entering into an offsetting contract. The average
value of forward foreign currency contracts open during the year ended
October 31, 2017 was $(4,409,568).
Forward foreign currency contracts outstanding at October 31, 2017, are
listed in the Schedule of Investments.
54 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no provision for federal income taxes is
required. As of October 31, 2017, the Fund did not accrue any interest or
penalties with respect to uncertain tax positions, which, if applicable,
would be recorded as an income tax expense in the Statement of Operations.
Tax returns filed within the prior three years remain subject to
examination by federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary over distributions for financial
statement purposes resulting from differences in the recognition or
classification of income or distributions for financial statement and tax
purposes. Capital accounts within the financial statements are adjusted for
permanent book/tax differences to reflect tax character, but are not
adjusted for temporary differences.
At October 31, 2017, the Fund reclassified $397,450 to increase
distributions in excess of net investment income and $397,450 to increase
accumulated net realized gain on investments to reflect permanent book/tax
differences. These adjustments have no impact on net assets or the results
of operations.
During the year ended October 31, 2017, a capital loss carryforward of
$25,586 was utilized to offset net realized gains by the Fund.
The tax character of distributions paid during the years ended October 31,
2017 and October 31, 2016, were as follows:
---------------------------------------------------------------------------
2017 2016
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 881,209 $ 777,166
Long-term capital gain 146,172 --
Return of capital 176,102 227,202
---------------------------------------------------------------------------
Total $1,203,483 $1,004,368
===========================================================================
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 55
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2017:
---------------------------------------------------------------------------
2017
---------------------------------------------------------------------------
Distributable earnings:
Current year dividend payable $ (71,961)
Unrealized appreciation 866,253
---------------------------------------------------------------------------
Total $ 794,292
===========================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the adjustments related to sidecars, the mark-to-market
of forward, swaps and futures contracts, and interest accruals on preferred
stock.
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor, the principal underwriter for the Fund and a wholly-owned
indirect subsidiary of UniCredit, earned $4,818 in underwriting commissions
on the sale of Class A shares during the year ended October 31, 2017.
G. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the Fund's transfer agent, for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
H. Risks
The value of securities held by the fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
56 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's investments in
foreign markets and countries with limited developing markets may subject
the Fund to a greater degree of risk than investments in a developed
market. These risks include disruptive political or economic conditions
and the imposition of adverse governmental laws or currency exchange
restrictions. The Fund's prospectus contains unaudited information
regarding the Fund's principal risks. Please refer to that document when
considering the Fund's principal risks.
Interest rates in the U.S. recently have been historically low, so the Fund
faces a heightened risk that interest rates may rise. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions from
the Fund.
The Fund invests in below investment grade (high yield) debt securities and
preferred stocks. Some of these high yield securities may be convertible
into equity securities of the issuer. Debt securities rated below
investment grade are commonly referred to as "junk bonds" and are
considered speculative. These securities involve greater risk of loss, are
subject to greater price volatility, and are less liquid, especially during
periods of economic uncertainty or change, than higher rated debt
securities.
I. Insurance-Linked Securities (ILS)
The Fund invests in event-linked bonds. Event-linked bonds are floating
rate debt obligations for which the return of principal and the payment of
interest are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude. The
trigger event's magnitude may be based on losses to a company or industry,
industry indexes or readings of scientific instruments, or may be based on
specified actual losses. If a trigger event occurs, as defined within the
terms of an event-linked bond, the Fund may lose a portion or all of its
accrued interest and/or principal invested in such event-linked bond. The
Fund is entitled to receive principal and interest payments so long as no
trigger event occurs of the description and magnitude specified by the
instrument. In addition to the specified trigger events, event-linked bonds
may expose the Fund to other risks, including but not limited to issuer
(credit) default, adverse regulatory or jurisdictional interpretations and
adverse tax consequences.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 57
The Fund's investments in ILS may include special purpose vehicles ("SPVs")
or similar instruments structured to comprise a portion of a reinsurer's
catastrophe-oriented business, known as quota share instruments (sometimes
referred to as reinsurance sidecars), or to provide reinsurance relating to
specific risks to insurance or reinsurance companies through a
collateralized instrument, known as collateralized reinsurance. Structured
reinsurance investments also may include industry loss warranties ("ILWs").
A traditional ILW takes the form of a bilateral reinsurance contract, but
there are also products that take the form of derivatives, collateralized
structures, or exchange traded instruments.
Structured reinsurance investments, including quota share instruments,
collateralized reinsurance investments and ILWs, generally are subject to
the same risks as event-linked bonds. In addition, where the instruments
are based on the performance of underlying reinsurance contracts, the Fund
has limited transparency into the individual underlying contracts and
therefore must rely upon the risk assessment and sound underwriting
practices of the issuer. Accordingly, it may be more difficult for the
Adviser to fully evaluate the underlying risk profile of the Fund's
structured reinsurance investments, and therefore the Fund's assets are
placed at greater risk of loss than if the Adviser had more complete
information. Structured reinsurance instruments generally will be
considered illiquid securities by the Fund. These securities may be
difficult to purchase, sell or unwind. Illiquid securities also may be
difficult to value. If the Fund is forced to sell an illiquid asset, the
Fund may be forced to sell at a loss.
J. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on
a futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
October 31, 2017, is recorded as "Futures collateral" in the Statement of
Assets and Liabilities.
Subsequent payments for futures contracts (variation margin) are paid or
received by the Fund, depending on the daily fluctuation in the value of
the contracts, and are recorded by the Fund as unrealized appreciation or
depreciation. When the contract is closed, the Fund realizes a gain or loss
equal to the difference between the opening and closing value of the
contract as well as any fluctuation in foreign currency exchange rates
where applicable. Futures contracts are subject to market risk, interest
rate risk and currency exchange rate risk. Changes in value of the
contracts may not directly
58 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
correlate to the changes in value of the underlying securities. With
futures, there is minimal counterparty credit risk to the Fund since
futures are exchange-traded and the exchange's clearinghouse, as
counterparty to all exchange-traded futures, guarantees the futures against
default. The average value of contracts open during the year ended October
31, 2017, was $(4,598,307).
At October 31, 2017, open futures contracts are listed in the Schedule of
Investments.
K. Repurchase Agreements
Repurchase agreements are arrangements under which the Fund purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Fund at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Fund. The securities purchased serve as
the Fund's collateral for the obligation of the counterparty to repurchase
the securities. The value of the collateral, including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian or a subcustodian of the
Fund. The Adviser is responsible for determining that the value of the
collateral remains at least equal to the repurchase price. In the event of
a default by the counterparty, the Fund is entitled to sell the securities,
but the Fund may not be able to sell them for the price at which they were
purchased, thus causing a loss to the Fund. Additionally, if the
counterparty becomes insolvent, there is some risk that the Fund will not
have a right to the securities, or the immediate right to sell the
securities. As of and for the year ended October 31, 2017, the Fund had no
open repurchase agreements.
L. Credit Default Swap Contracts
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may sell
or buy credit default swap contracts to seek to increase the Fund's income,
or to attempt to hedge the risk of default on portfolio securities. A
credit default swap index is used to hedge risk or take a position on a
basket of credit entities or indices. As a seller of protection, the Fund
would be required to pay the notional (or other agreed-upon) value of the
referenced debt obligation to the counterparty in the event of a default by
a U.S. or foreign corporate issuer of a debt obligation, which would likely
result in a loss to the Fund. In return, the Fund would receive from the
counterparty a periodic stream of payments during the term of the contract,
provided that no event of default occurred. The maximum exposure of loss to
the seller would be the notional value of the credit default swaps
outstanding. If no default occurs,
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 59
the Fund would keep the stream of payments and would have no payment
obligation. The Fund may also buy credit default swap contracts in order to
hedge against the risk of default of debt securities, in which case the
Fund would function as the counterparty referenced above.
When the Fund enters into a credit default swap contract, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the right to receive a contingent payment. An upfront payment
made by the Fund, as the protection buyer, is recorded as a component of
unrealized appreciation/depreciation on open swap contracts in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded within "Swap contracts, at value" line item in the Statement of
Assets and Liabilities. Payments received or made as a result of a credit
event or upon termination of the contract are recognized, net of the
appropriate amount of the upfront payment, as realized gains or losses in
the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as variation margin on
centrally cleared swaps in the Statement of Assets and Liabilities.
The amount of cash deposited with a broker as collateral at October 31,
2017 is recorded as "Swaps Collateral" in the Statement of Assets and
Liabilities.
Open credit default swap contracts at October 31, 2017, are listed in the
Schedule of Investments. The average value of swap contracts open during
the year ended October 31, 2017 was $23,890.
60 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
2. Management Agreement
The Adviser manages the Fund's portfolio. Management fees are calculated daily
at the annual rate of 0.50% of the Fund's average daily net assets.
The Adviser has contractually agreed to limit ordinary operating expenses
(ordinary operating expenses means all fund expenses other than extraordinary
expenses, such as litigation, taxes, brokerage commissions and acquired fund
fees and expenses) of the Fund to the extent required to reduce Fund expenses to
1.00%, 1.90% and 0.75% of the average daily net assets attributable to Class A,
Class C and Class Y shares, respectively. Fees waived and expenses reimbursed
during the year ended October 31, 2017, are reflected on the Statement of
Operations. These expense limitations are in effect through March 1, 2018. There
can be no assurance that the Adviser will extend the expense limitation
agreement for a class of shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due from affiliates" reflected on the Statement of Assets and Liabilities is
$3,422 in management fees, administrative costs and certain other reimbursements
due to the Adviser at October 31, 2017.
3. Transfer Agent
Boston Financial Data Services serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings, outgoing phone calls and omnibus
relationship contracts. For the year ended October 31, 2017, such out-of-pocket
expenses by class of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $3,144
Class C 2,194
Class Y 678
--------------------------------------------------------------------------------
Total $6,016
================================================================================
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 61
4. Distribution Plan
The Fund has adopted a distribution plan (the Plan) pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A and Class C
shares. Pursuant to the Plan, the Fund pays the Distributor 0.25% of the average
daily net assets attributable to Class A shares as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class A shares. Pursuant to the Plan, the Fund also pays the
Distributor 1.00% of the average daily net assets attributable to Class C
shares. The fee for Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class C shares.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $3,038 in distribution fees payable to the Distributor at October
31, 2017.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to the
Distributor. For the year ended October 31, 2017, CDSCs in the amount of $412
were paid to the Distributor.
5. Assets and Liabilities Offsetting
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the trading
of certain OTC derivatives and typically contains, among other things, close-out
and set-off provisions which apply upon the occurrence of an event of default
and/or a termination event as defined under the relevant ISDA Master Agreement.
The ISDA Master Agreement may also give a party the right to terminate all
transactions traded under such agreement if, among other things, there is
deterioration in the credit quality of the other party. Upon an event of
default or a termination of the ISDA Master Agreement, the non-defaulting party
has the right to close out all transactions under such agreement and to net
amounts owed under each transaction to determine one net amount payable by one
party to the other. The right to close out and net
62 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
payments across all transactions under the ISDA Master Agreement could result in
a reduction of the Fund's credit risk to its counterparty equal to any amounts
payable by the Fund under the applicable transactions, if any. However, the
Fund's right to setoff may be restricted or prohibited by the bankruptcy or
insolvency laws of the particular jurisdiction to which each specific ISDA of
each counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collateral pledged for the benefit of the Fund and/or
counterparty is held in segregated accounts by the Fund's custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Fund's collateral obligations, if any, will be
reported separately in the Statement of Assets and Liabilities as "Swaps
collateral." Securities pledged by the Fund as collateral, if any, are
identified as such in the Schedule of Investments.
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have not been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Fund
as of October 31, 2017.
------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
------------------------------------------------------------------------------------------
Bank of America $ 14,393 $ (905) $ -- $ -- $ 13,488
Citibank NA 87,988 (34,209) -- -- 53,779
JPMorgan Chase
Bank NA 39,212 (39,212) -- -- --
Morgan Stanley
& Co. 732 -- -- -- 732
State Street
Bank & Trust Co. 58,798 (17,694) -- -- 41,104
------------------------------------------------------------------------------------------
Total $201,123 $ (92,020) $ -- $ -- $109,103
==========================================================================================
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 63
------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
------------------------------------------------------------------------------------------
Bank of America $ 905 $ (905) $ -- $ -- $ --
Citibank NA 34,209 (34,209) -- -- --
Goldman Sachs
International 107,077 -- -- -- 107,077
JPMorgan Chase
Bank NA 64,481 (39,212) -- -- 25,269
State Street
Bank & Trust Co. 17,694 (17,694) -- -- --
------------------------------------------------------------------------------------------
Total $224,366 $(92,020) $ -- $ -- $132,346
==========================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
6. Additional Disclosures about Derivative Instruments and Hedging
Activities
The Fund's use of derivatives subjects it to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
64 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at October 31,
2017 was as follows:
----------------------------------------------------------------------------------
Foreign
Statement of Assets Interest Credit Exchange Equity Commodity
and Liabilities Rate Risk Risk Rate Risk Risk Risk
----------------------------------------------------------------------------------
Assets
Net unrealized appreciation on
futures contracts $82,265 $ -- $ -- $ -- $ --
Swap contracts, at value -- 24,389 -- -- --
----------------------------------------------------------------------------------
Total Value $82,265 $24,389 $ -- $ -- $ --
==================================================================================
----------------------------------------------------------------------------------
Foreign
Statement of Assets Interest Credit Exchange Equity Commodity
and Liabilities Rate Risk Risk Rate Risk Risk Risk
----------------------------------------------------------------------------------
Liabilities
Net unrealized depreciation on
forward foreign
currency contracts $ -- $ -- $23,975 $ -- $ --
----------------------------------------------------------------------------------
Total Value $ -- $ -- $23,975 $ -- $ --
==================================================================================
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at October 31, 2017 was as follows:
----------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Operations Rate Risk Risk Rate Risk Risk Risk
----------------------------------------------------------------------------------
Net realized gain (loss) on:
Futures contracts $46,453 $ -- $ -- $ -- $ --
Swap contracts -- 11,816 -- -- --
Forward foreign
currency contracts -- -- 239,485 -- --
----------------------------------------------------------------------------------
Total Value $46,453 $11,816 $ 239,485 $ -- $ --
==================================================================================
Change in net unrealized
appreciation (depreciation) on:
Futures contracts $54,777 $ -- $ -- $ -- $ --
Swap contracts -- 4,146 -- -- --
Forward foreign
currency contracts -- -- (115,907) -- --
----------------------------------------------------------------------------------
Total Value $54,777 $ 4,146 $(115,907) $ -- $ --
==================================================================================
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 65
may borrow up to the lesser of the amount available under the facility or the
limits set for borrowing by the Fund's prospectus and the 1940 Act. The credit
facility in which the Fund participated until February 9, 2016 was in the
amount of $240 million. The credit facility in which the Fund participated
until February 7, 2017, was in the amount of $220 million. Effective
February 8, 2017, the Fund participates in a facility that is in the amount of
$13.9 million. Under such facility, depending on the type of loan, interest on
borrowings is payable at the London Interbank Offered Rate (LIBOR) plus
0.85% on an annualized basis, or the Alternate Base Rate, which is the greater
of (a) the facility's administrative agent's daily announced prime rate on the
borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing date or
(c) 2% plus the overnight Eurodollar rate on the borrowing date. The Funds
pay an annual commitment fee to participate in a credit facility. The
commitment fee is allocated among participating Funds based on an allocation
schedule set forth in the credit agreement. For the year ended October 31,
2017, the Fund had no borrowings under the credit facility.
8. Unfunded Loan Commitments
The Fund may enter into unfunded loan commitments. Unfunded loan commitments may
be partially or wholly unfunded. During the contractual period, the Fund is
obliged to provide funding to the borrower upon demand. A fee is earned by the
Fund on the unfunded commitment and is recorded as interest income in the
Statement of Operations.
As of October 31, 2017, the Fund had the following unfunded loan commitments
commitments outstanding:
--------------------------------------------------------------------------------
Unrealized
Appreciation/
Loan Principal Cost Value Depreciation
--------------------------------------------------------------------------------
Beacon Roofing Supply, Inc.,
Bridge Loan $ 60,000 $ 60,000 $ 60,000 $ --
Centene Corp., Bridge Loan 85,000 85,000 85,000 --
--------------------------------------------------------------------------------
Total Value $145,000 $145,000 $145,000 $ --
================================================================================
66 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII and the Shareowners of
Pioneer Global Multisector Income Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Global Multisector Income Fund (the
"Fund"), one of the funds constituting the Pioneer Series Trust VII (the
"Trust"), as of October 31, 2017, and the related statements of operations,
changes in net assets and the financial highlights for the year then ended and
the financial highlights for the year ended October 31, 2013. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The statement of
changes in net assets for the year ended October 31, 2016 and the financial
highlights for periods ended October 31, 2014, October 31, 2015 and October 31,
2016 were audited by another independent registered public accounting firm whose
report, dated December 23, 2016, expressed an unqualified opinion on the
statement of changes in net assets and those financial highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
We were not engaged to perform audits of the Fund's internal control over
financial reporting. Our audits included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of October 31, 2017, by correspondence with the
custodian, brokers and others or by other appropriate auditing procedures where
replies from brokers and others were not received. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global Multisector Income Fund at October 31, 2017, the results of its
operations, the changes in its net assets, and the financial highlights for the
year then ended and the financial highlights for the year ended October 31,
2013, in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 26, 2017
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 67
ADDITIONAL INFORMATION
The percentages of the Fund's ordinary income distributions that are exempt from
nonresident alien (NRA) tax withholding resulting from qualified interest income
was 51.83%.
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the Adviser), the
Funds' investment adviser, was an indirect, wholly owned subsidiary of UniCredit
S.p.A. (UniCredit). On that date, UniCredit completed the sale of its Pioneer
Investments business, which includes the Adviser, to Amundi (the Transaction).
As a result of the Transaction, the Adviser became an indirect, wholly-owned
subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A. Amundi is
headquartered in Paris, France, and, as of September 30, 2016, had more than
$1.1 trillion in assets under management worldwide.
Deloitte & Touche LLP (D&T), the Fund's previous independent registered public
accounting firm, informed the Audit Committee and the Board that it would no
longer be independent with respect to the Funds upon the completion of the
Transaction as a result of certain services being provided to Amundi and Credit
Agricole, and, accordingly, that it intended to resign as the Funds' independent
registered public accounting firm upon the completion of the Transaction. D&T's
resignation was effective on July 3, 2017, when the Transaction was completed.
During the periods as to which D&T has served as the Funds' independent
registered public accounting firm, including the Funds' two most recent fiscal
years, D&T's reports on the Funds' financial statements have not contained an
adverse opinion or disclaimer of opinion and have not been qualified or modified
as to uncertainty, audit scope or accounting principles. Further, there have
been no disagreements with D&T on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or procedure,
which, if not resolved to the satisfaction of D&T, would have caused D&T to make
reference to the subject matter of the disagreement in connection with its
report on the financial statements. In addition, there have been no reportable
events of the kind described in Item 304(a)(1)(v) of Regulation S-K under the
Securities Exchange Act of 1934.
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
a new independent registered public accounting firm, Ernst & Young LLP (EY), for
the Fund's fiscal year ended October 31, 2017.
68 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
Prior to its engagement, EY had advised the Funds' Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities and Exchange
Commission (SEC): (a) project management support services to UniCredit in the
Czech Republic, Germany, Italy, Serbia and Slovenia in relation to twenty-two
projects, that were determined to be inconsistent with Rule 2-01(c)(4)(vi) of
Regulation S-X (management functions); (b) two engagements for UniCredit in
Italy where fees were contingent/success based and that were determined to be
inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent fees); (c) four
engagements where legal and expert services were provided to UniCredit in the
Czech Republic and Germany, and twenty engagements where the legal advisory
services were provided to UniCredit in Austria, Czech Republic, Italy and
Poland, that were determined to be inconsistent with Rule 2-01(c)(4)(ix) and (x)
of Regulation S-X (legal and expert services); and (d) two engagements for
UniCredit in Italy involving assistance in the sale of certain assets, that were
determined to be inconsistent with Rule 2-01(c)(4)(viii) of Regulation S-X
(broker-dealer, investment advisor or investment banking services). None of the
foregoing services involved the Funds, any of the other funds in the Pioneer
Family of Funds or any other Pioneer entity sold by UniCredit in the
Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Funds under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Funds, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 69
Results of Shareholder Meeting
At a special meeting held on June 13, 2017, shareholders of the Fund were asked
to consider the proposals described below. A report of the total votes cast by
the Fund's shareholders (or, with respect to Proposal 2, by shareholders of
Pioneer Series Trust VII, as noted below) follows:
--------------------------------------------------------------------------------
For Against Abstain Broker Non-Votes
--------------------------------------------------------------------------------
Proposal 1 - To approve 3,417,810.633 6,929.560 7,810.058 357,253.200
a New Management
Agreement with
the Adviser
--------------------------------------------------------------------------------
For Against
--------------------------------------------------------------------------------
Proposal 2 - To elect Trustees*
--------------------------------------------------------------------------------
David R. Bock 46,356,571.403 1,941,738.750
--------------------------------------------------------------------------------
Benjamin M. Friedman 46,347,916.283 1,950,393.870
--------------------------------------------------------------------------------
Margaret B.W. Graham 46,178,367.969 2,119,942.184
--------------------------------------------------------------------------------
Lisa M. Jones 46,169,721.329 2,128,588.824
--------------------------------------------------------------------------------
Lorraine H. Monchak 46,201,867.234 2,096,442.919
--------------------------------------------------------------------------------
Thomas J. Perna 46,378,862.453 1,919,447.700
--------------------------------------------------------------------------------
Marguerite A. Piret 46,203,924.961 2,094,385.192
--------------------------------------------------------------------------------
Fred J. Ricciardi 46,378,634.184 1,919,675.969
--------------------------------------------------------------------------------
Kenneth J. Taubes 46,386,579.585 1,911,730.568
--------------------------------------------------------------------------------
* Proposal 2 was voted on and approved by all series of Pioneer Series Trust
VII. Results reported above reflect the combined votes of all series of
the Trust.
70 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
Trustees, Officers and Service Providers
Investment Adviser
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data 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 July 31 is publicly available to shareowners
at www.amundipioneer.com. This information is also available on the Securities
and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations and other directorships they have held during at least the past five
years. Trustees who are interested persons of the Fund within the meaning of the
1940 Act are referred to as Interested Trustees. Trustees who are not interested
persons of the Fund are referred to as Independent Trustees. Each of the
Trustees serves as a Trustee of each of the 46 U.S. registered investment
portfolios for which Amundi Pioneer serves as investment adviser (the
"Pioneer Funds"). The address for all Trustees and all officers of the Fund is
60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 71
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (67) Trustee since 2007. Private investor (2004 - 2008 and 2013 - Director, Broadridge Financial
Chairman of the Board Serves until a present); Chairman (2008 - 2013) and Chief Solutions, Inc. (investor
and Trustee successor trustee is Executive Officer (2008 - 2012), Quadriserv, communications and securities
elected or earlier Inc. (technology products for securities lending processing provider for
retirement or industry); and Senior Executive Vice President, financial services industry)
removal. The Bank of New York (financial and securities (2009 - present); Director,
services) (1986 - 2004) Quadriserv, Inc. (2005 - 2013);
and Commissioner, New Jersey
State Civil Service Commission
(2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (73) Trustee since 2007. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - Trust (publicly-traded mortgage
successor trustee is 2004 and 2008 - present); Interim Chief REIT) (2004 - 2009, 2012 -
elected or earlier Executive Officer, Oxford Analytica, Inc. present); Director of The Swiss
retirement or (privately held research and consulting company) Helvetia Fund, Inc. (closed-end
removal. (2010); Executive Vice President and Chief fund) (2010 - present);
Financial Officer, I-trax, Inc. (publicly traded Director of Oxford Analytica,
health care services company) (2004 - 2007); and Inc. (2008 - present); and
Executive Vice President and Chief Financial Director of Enterprise
Officer, Pedestal Inc. (internet-based mortgage Community Investment, Inc.
trading company) (2000 - 2002); Private (privately-held affordable
Consultant (1995 - 1997); Managing Director, housing finance company) (1985 -
Lehman Brothers (1992 - 1995); Executive, The 2010)
World Bank (1979 - 1992)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (73) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and
successor trustee is Mellon Institutional Funds
elected or earlier Master Portfolio (oversaw 17
retirement or portfolios in fund complex)
removal. (1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
72 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (70) Trustee since 2007. Founding Director, Vice-President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee is firm) (1982 - present); Desautels Faculty of
elected or earlier Management, McGill University (1999 - present);
retirement or and Manager of Research Operations and
removal. Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (61) Trustee since 2017. Chief Investment Officer, 1199 SEIU Funds None
Trustee (Advisory Trustee (healthcare workers union pension funds) (2001 -
from 2014 - 2017). present); Vice President - International
Serves until a Investments Group, American International Group,
successor trustee is Inc. (insurance company) (1993 - 2001); Vice
elected or earlier President, Corporate Finance and Treasury Group,
retirement or Citibank, N.A. (1980 - 1986 and 1990 - 1993);
removal. Vice President - Asset/Liability Management
Group, Federal Farm Funding Corporation
(government-sponsored issuer of debt securities)
(1988 - 1990); Mortgage Strategies Group,
Shearson Lehman Hutton, Inc. (investment bank)
(1987 - 1988); Mortgage Strategies Group, Drexel
Burnham Lambert, Ltd. (investment bank) (1986 -
1987)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (69) Trustee since 2007. President and Chief Executive Officer, Newbury Director of New America High
Trustee Serves until a Piret Company (investment banking firm) (1981 - Income Fund, Inc. (closed-end
successor trustee is present) investment company) (2004 -
elected or earlier present); and Member, Board of
retirement or Governors, Investment Company
removal. Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (70) Trustee since 2014. Consultant (investment company services) (2012 - None
Trustee Serves until a present); Executive Vice President, BNY Mellon
successor trustee is (financial and investment company services) (1969
elected or earlier - 2012); Director, BNY International Financing
retirement or Corp. (financial services) (2002 - 2012);
removal. Director, Mellon Overseas Investment Corp.
(financial services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 73
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (55)* Trustee since 2017. Chair, Director, CEO and President of Amundi None
Trustee, President and Serves until a Pioneer Asset Management USA, Inc. (since
Chief Executive Officer successor trustee is September 2014); Chair, Director and CEO of
elected or earlier Amundi Pioneer Asset Management, Inc. (since
retirement or removal September 2014); Chair, Director and CEO of
Amundi Pioneer Distributor, Inc. (since
September 2014); Chair, Director, CEO and
President of Amundi Pioneer Institutional Asset
Management, Inc. (since September 2014);
Managing Director, Morgan Stanley Investment
Management (2010 - 2013); Director of
Institutional Business, CEO of International,
Eaton Vance Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (59)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S. (since
successor trustee is 2010) of Amundi Pioneer Asset Management USA,
elected or earlier Inc.; Executive Vice President and Chief
retirement or removal Investment Officer, U.S. of Amundi Pioneer
(since 2008); Executive Vice President of Amundi
Pioneer Institutional Asset Management, Inc.
(since 2009); Portfolio Manager of Amundi
Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers
or directors of the Fund's investment adviser and certain of its
affiliates.
74 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (52) Since 2007. Serves at Vice President and Associate General Counsel of None
Secretary and Chief Legal the discretion of the Amundi Pioneer since January 2008; Secretary and
Officer Board Chief Legal Officer of all of the Pioneer Funds
since June 2010; Assistant Secretary of all of
the Pioneer Funds from September 2003 to May
2010; Vice President and Senior Counsel of
Amundi Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (56) Since 2010. Serves at Fund Governance Director of Amundi Pioneer since None
Assistant Secretary the discretion of the December 2006 and Assistant Secretary of all the
Board Pioneer Funds since June 2010; Manager - Fund
Governance of Amundi Pioneer from December 2003
to November 2006; and Senior Paralegal of Amundi
Pioneer from January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (54) Since 2010. Serves at Senior Counsel of Amundi Pioneer since May 2013 None
Assistant Secretary the discretion of the and Assistant Secretary of all the Pioneer Funds
Board since June 2010; Counsel of Amundi Pioneer from
June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (57) Since 2008. Serves at Vice President - Fund Treasury of Amundi None
Treasurer and Chief the discretion of the Pioneer; Treasurer of all of the Pioneer Funds
Financial Board since March 2008; Deputy Treasurer of Amundi
and Accounting Officer Pioneer from March 2004 to February 2008; and
Assistant Treasurer of all of the Pioneer Funds
from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (52) Since 2007. Serves at Director - Fund Treasury of Amundi Pioneer; and None
Assistant Treasurer the discretion of the Assistant Treasurer of all of the Pioneer Funds
Board
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (59) Since 2007. Serves at Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Amundi Pioneer; and Assistant Treasurer of all
Board of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (37) Since 2009. Serves at Fund Administration Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Amundi Pioneer since November 2008; Assistant
Board Treasurer of all of the Pioneer Funds since
January 2009; Client Service Manager -
Institutional Investor Services at State Street
Bank from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund | Annual Report | 10/31/17 75
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (65) Since 2010. Serves at Chief Compliance Officer of Amundi Pioneer and None
Chief Compliance Officer the discretion of the of all the Pioneer Funds since March 2010; Chief
Board Compliance Officer of Amundi Pioneer
Institutional Asset Management, Inc. since
January 2012; Chief Compliance Officer of
Vanderbilt Capital Advisors, LLC since July
2012: Director of Adviser and Portfolio
Compliance at Amundi Pioneer since October 2005;
Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to
October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (46) Since 2007. Serves at Director - Transfer Agency Compliance of Amundi None
Anti-Money Laundering the discretion of the Pioneer and Anti-Money Laundering Officer of all
Officer Board the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
76 Pioneer Global Multisector Income Fund | Annual Report | 10/31/17
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address us.askamundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2017 Amundi Pioneer Asset Management 22520-09-1217
Pioneer Global High
Yield Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2017
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PGHYX
Class C PGYCX
Class Y GHYYX
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 46
Notes to Financial Statements 53
Report of Independent Registered Public Accounting Firm 69
Additional Information 70
Trustees, Officers and Service Providers 73
Pioneer Global High Yield Fund | Annual Report | 10/31/17 1
President's Letter
Robust, synchronized global economic growth and rising corporate profits have
continued to drive strong performance in both the credit and equity markets for
most of 2017. U.S. stocks, as measured by the Standard & Poor's 500 Index,
returned 14.23% through the end of the third quarter. Fixed-income markets,
while not generating the same dazzling returns as equities, held their own, led
by high-yield securities, which produced a return of 7.05% in the U.S., as
measured by the Bank of America Merrill Lynch U.S. High Yield Index. Meanwhile,
the Bloomberg Barclays U.S. Aggregate Bond Index returned 3.14% over the first
three quarters of the calendar year.
Continued strong employment numbers and higher consumer confidence, together
with solid global economic growth and a depreciating U.S. dollar contributed to
better-than-expected U.S. gross domestic product (GDP) growth of more than 3% in
both the second and third quarters. Outside the U.S., economic growth in the
second quarter also surprised to the upside across the Euro zone, China, and
Japan. Meanwhile, despite higher oil and commodities prices, inflation continued
to be moderate, both in the U.S. and globally, enabling major non-U.S. central
banks to maintain their easy monetary policies. As expected, however, the U.S.
Federal Reserve System (the Fed) recently announced that it would commence
tapering its balance sheet this October. The Fed also appears primed to raise
interest rates one more time before the end of this year, which would be the
fourth rate increase since December of 2016.
As we move into the final months of 2017, we believe the U.S. economy will
experience modest growth in the short term, depending on the mix of economic
policies enacted as the country moves away from monetary stimulus (driven by the
Fed) and toward fiscal stimulus (potentially including tax reform) as well as
lighter regulatory burdens. Meanwhile, corporate earnings remain solid and we
think they will improve even further, despite the possibility of some pressure
from wage increases. In addition, it is our view that the economy will continue
to grow and that we may begin to see a modest upturn in inflation. In that
scenario, we anticipate that the Fed will continue to raise interest rates.
While economic and market conditions appear solid, there are always risks to
consider that could dampen the outlook. Geopolitical concerns, such as increased
tensions with North Korea, and continued political gridlock in Washington are
just some of the risks that could lead to increased market volatility.
2 Pioneer Global High Yield Fund | Annual Report | 10/31/17
It is for those reasons that we at Amundi Pioneer continue to believe that
investors can benefit from the experience and tenure of our investment teams who
make active and informed decisions across our funds.
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
October 31, 2017
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 3
Portfolio Management Discussion | 10/31/17
High-yield corporate bonds and other credit-sensitive debt produced solid
results during the 12-month period ended October 31, 2017, as investors remained
optimistic about both the global and domestic economies. In the following
interview, Andrew Feltus discusses the market environment and the performance of
Pioneer Global High Yield Fund during the 12-month period. Mr. Feltus,
Co-Director of High Yield, a senior vice president, and a portfolio manager at
Amundi Pioneer Asset Management, Inc. ("Amundi Pioneer"), is lead manager of the
Fund, which is co-managed by Tracy Wright, a senior vice president and a
portfolio manager at Amundi Pioneer, and Kenneth J. Monaghan, Co-Director of
High Yield of Amundi Pioneer and Managing Director of Amundi Smith Breeden. (Mr.
Monaghan became a portfolio manager of the Fund effective October 1, 2017).
Q How did the Fund perform during the 12-month period ended October 31, 2017?
A Pioneer Global High Yield Fund's Class A shares returned 10.33% at net
asset value during the 12-month period ended October 31, 2017, while the
Fund's benchmarks, the Bloomberg Barclays Global High Yield Index (the
Bloomberg Barclays Index) and the ICE Bank of America Merrill Lynch (BofA
ML) U.S. High Yield Index, returned 10.04% and 9.14%, respectively. During
the same period, the average return of the 665 mutual funds in Lipper's
High Yield Funds category was 7.94%, and the average return of the 698
mutual funds in Morningstar's High Yield Bond Funds category was 7.93%.
Q Could you please describe the market environment for global high-yield
investors during the 12-month period ended October 31, 2017?
A The period was characterized by generally uninterrupted optimism about the
economy and the prospects for continued corporate earnings gains. The
sustained rally in highly credit-sensitive debt actually began after the
high-yield market bottomed in February 2016, seven months before the start
of the period. In the subsequent rally, U.S. and international high-yield
corporate bonds, emerging markets debt, and other asset classes sensitive
to global economic cycles performed well. Although the market surge did
experience brief pauses and even temporary reversals, most often related to
political uncertainties in the United States or in Europe, the positive
environment generally continued unabated as investors maintained an
optimistic outlook for both the domestic and global economies.
4 Pioneer Global High Yield Fund | Annual Report | 10/31/17
In the United States, the economy expanded at a steady, if unspectacular,
pace, although the annual rate of gross domestic product (GDP) growth did
accelerate to better than 3% in both the second and third calendar quarters
of 2017, while the nation's unemployment rate fell from 4.8% to 4.1%
between October 2016 and October 2017. The election of Republican Donald
Trump as U.S. president in November 2016 only briefly interrupted a rally
in the credit market as investors ultimately came to interpret the results
as a victory for pro-growth economic policies. In Europe, despite some
evidence of increasing political nationalism and anti-European Union
sentiment in advance of national elections in several countries, the
eventual election results seemed to calm worries about anti-global trends.
The European economy, meanwhile, continued to improve over the full
12-month period, while the euro, too, strengthened on currency markets.
While European corporate high-yield bonds performed similarly to U.S.
high-yield corporates during the period, emerging markets securities
performed even better, helped significantly by rallies in commodity markets
spurred by increased worldwide demand.
U.S. monetary policy continued to tighten during the period, but the
Federal Reserve (the Fed) acted cautiously, raising short-term interest
rates three times over the 12 months, while carefully assessing economic
trends. The rate increases were widely expected, and their gradual
implementation showed no evidence of dampening the improvements in global
economic growth. Late in the period, the Fed began reducing the rather
large balance sheet it had accumulated through its multiple quantitative
easing bond-buying programs from 2008 through 2014, but also at a gradual
pace. As the period progressed, other central banks also began to consider
moving away from their highly accommodative policies.
Q What were the principal factors that influenced the Fund's benchmark-
relative performance over the 12-month period ended October 31, 2017?
A The main factor contributing to the Fund's benchmark-relative
outperformance during the period was security selection across all markets
and sectors. Other factors contributing to relative performance included
our emphasis on holding U.S. high-yield corporates and emerging markets
debt, both corporate and sovereign, in the portfolio, which helped
significantly. The portfolio's short-duration position relative to the
benchmark also supported results as the yields of U.S. Treasuries and other
higher-quality debt moved higher over the 12 months, thus eroding the
prices of high-quality, long-maturity debt. (Duration is a measure of the
sensitivity of the price, or the value of principal, of a fixed-income
investment to a change in interest rates, expressed as a number of years.)
Pioneer Global High Yield Fund | Annual Report | 10/31/17 5
Individual portfolio holdings that performed notably well during the period
included two securities exposed to the rising value of the fishing grounds
in Peruvian waters: debt issued by China Fish Group and by Pesquera
Exalmar. The latter was one of the Fund's larger benchmark-relative
overweights. Scientific Games International, a company that produces
equipment and services for gambling enterprises across the globe, was the
most significant contributor to performance among the Fund's domestic
high-yield holdings, while the most noteworthy European contributor was the
debt of the Boing Group, a company operating car washes, principally in
Europe. Holdings in the subordinated debt of several European banking
corporations also performed quite well.
On the negative side, during a period in which the euro strengthened
against other currencies, we increased the Fund's euro exposure, but
relatively lower exposure to the European currency versus the benchmark was
a slight drag on performance. In general, the Fund's allocations to
non-high-yield corporates also held back relative results, as groups such
as bank loans and event-linked insurance industry securities, especially
so-called "catastrophe bonds," lagged the performance of high-yield bonds.
The Fund's investments in bonds issued by retailers also produced
disappointing results. One negative performer from that group was the debt
of national pet supply chain Pet Smart. The bonds of telecommunication
services providers, especially landline-based companies such as Frontier
and Windstream, also underperformed and detracted from the Fund's relative
returns.
At the end of the period, the Fund had significant exposure to corporate
bonds, both U.S. and international, which together accounted for roughly
81% of the Fund's total investment portfolio. Foreign government bonds (7%)
and senior secured floating-rate loans (3%) accounted for another 10% of
the Fund's total investment portfolio as of October 31, 2017.
Q Did the Fund have any investments in derivative securities during the
12-month period ended October 31, 2017?
A Yes, we invested in some credit-default swaps to manage the portfolio's
exposure to the high-yield corporate sector during periods of asset flows
into or out of the Fund. The investments had no material influence on the
Fund's results.
6 Pioneer Global High Yield Fund | Annual Report | 10/31/17
Q Did the Fund's distributions to shareholders change during the 12-month
period ended October 31, 2017?
A The Fund's distributions did decline during the 12 months, as high-yield
bonds outperformed other sectors on a total return basis and yield, or
credit spreads, compressed. (Credit spreads, are commonly defined as the
differences in yield between Treasuries and other types of fixed-income
securities with similar maturities.) Essentially, as high-yield bond prices
rose during the period, their yields declined. In addition, newer portfolio
holdings usually paid lower yields than older debt that had been issued
when market rates were higher.
Q What is your investment outlook?
A In an environment where corporations have the financial health to pay their
bond obligations, we believe high-yield default rates should remain low.
Nevertheless, we are somewhat concerned about the elevated pricing levels
to which high-yield bonds have risen, which have resulted in tighter credit
spreads. In effect, higher-yielding securities are priced at levels that
imply no problems or concerns. Therefore, if the economy should falter or
the rate of economic growth starts to slow, high-yield bond prices could be
pressured.
However, we do expect the economy to continue to perform well, leading to
continued gains in corporate earnings, which would in turn support
high-yield bond performance. We feel current economic fundamentals should
continue to support higher-yielding, more cyclically sensitive debt. In
recent months, however, we have sold some of the Fund's higher-yielding
bonds, as we have attempted to reduce overall portfolio risk and invest
more cautiously. We have, for example, reduced the portfolio's positions in
the subordinated debt of European banking institutions. Overall, we
continue to like the outlook for high-yield bonds, but we are more cautious
because of their higher prices.
Please refer to the Schedule of Investments on pages 16-45 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 7
Investments in high-yield or lower-rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
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.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, and economic and political
conditions.
Prepayment risk is the chance that an issuer may exercise its right to repay its
security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The Fund may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
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.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Amundi Pioneer Asset Management, Inc. for
a prospectus or summary prospectus containing this information. Read it
carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
8 Pioneer Global High Yield Fund | Annual Report | 10/31/17
Portfolio Summary | 10/31/17
Portfolio Diversification*
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Corporate Bonds 43.1%
International Corporate Bonds 37.8%
Foreign Government Bonds 6.9%
Senior Secured Floating Rate Loan Interests 3.1%
U.S. Government and Agency Obligations 2.7%
Convertible Corporate Bonds 1.7%
Temporary Cash Investments 1.3%
Collateralized Mortgage Obligations 1.3%
Convertible Preferred Stocks 0.8%
International Common Stocks 0.6%
U.S. Preferred Stocks 0.4%
Asset Backed Securities 0.1%
Rights/Warrants 0.0%+
+ Amount rounds to less than 0.1%.
* Includes investments in Insurance Linked Securities totaling 2.2% of total
investment portfolio.
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings based on country of domicile)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
United States 53.2%
Other (individually less than 1%) 12.2%
Netherlands 5.8%
Luxembourg 5.5%
United Kingdom 3.1%
Argentina 3.1%
Mexico 2.6%
Ireland 2.3%
Bermuda 2.2%
Turkey 1.8%
France 1.7%
Canada 1.2%
Italy 1.2%
Cayman Islands 1.1%
Egypt 1.0%
Peru 1.0%
India 1.0%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)**
1. Minerva Luxembourg SA, 7.75%, 1/31/23 1.13%
--------------------------------------------------------------------------------
2. U.S. Treasury Bill, 11/16/17 1.03
--------------------------------------------------------------------------------
3. Petrobras Global Finance BV, 5.299%, 1/27/25 (144A) 0.95
--------------------------------------------------------------------------------
4. Nationstar Mortgage LLC / Nationstar Capital Corp., 6.5%, 6/1/22 0.83
--------------------------------------------------------------------------------
5. MTN Mauritius Investment, Ltd., 5.373%, 2/13/22 (144A) 0.82
--------------------------------------------------------------------------------
6. Petrobras Global Finance BV, 5.375%, 1/27/21 0.81
--------------------------------------------------------------------------------
7. Pesquera Exalmar SAA, 7.375%, 1/31/20 (144A) 0.81
--------------------------------------------------------------------------------
8. Sprint Corp., 7.25%, 9/15/21 0.76
--------------------------------------------------------------------------------
9. TA MFG., Ltd., 3.625%, 4/15/23 (144A) 0.72
--------------------------------------------------------------------------------
10. Scientific Games International, Inc., 10.0%, 12/1/22 0.70
--------------------------------------------------------------------------------
** This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 9
Prices and Distributions | 10/31/17
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/17 10/31/16
--------------------------------------------------------------------------------
A $9.12 $8.71
--------------------------------------------------------------------------------
C $9.09 $8.69
--------------------------------------------------------------------------------
Y $8.95 $8.55
--------------------------------------------------------------------------------
Distributions per Share: 11/1/16-10/31/17
--------------------------------------------------------------------------------
Short-Term Long-Term Tax Return
Class Dividends Capital Gains Capital Gains of Capital
--------------------------------------------------------------------------------
A $0.4215 $-- $-- $0.0455
--------------------------------------------------------------------------------
C $0.3585 $-- $-- $0.0455
--------------------------------------------------------------------------------
Y $0.4378 $-- $-- $0.0455
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bloomberg Barclays Global High Yield Index is an unmanaged index that
provides a broad-based measure of the global high-yield fixed-income markets.
The index represents the union of the Barclays U.S. High-Yield, Barclays
Pan-European High-Yield, Barclays U.S. Emerging Markets High-Yield, and Barclays
Pan-European Emerging Markets High-Yield Indices. The ICE BofA ML U.S. High
Yield Index is an unmanaged, commonly accepted measure of the performance of
high-yield securities. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. It is not possible to invest directly in an index.
The indices defined here pertain to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 11-13.
10 Pioneer Global High Yield Fund | Annual Report | 10/31/17
Performance Update | 10/31/17 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Global High Yield Fund at public
offering price during the periods shown, compared to that of the ICE Bank of
America (BofA) Merrill Lynch (ML) U.S. High Yield Index and the Bloomberg
Barclays Global High Yield Index.
Average Annual Total Returns
(As of October 31, 2017)
--------------------------------------------------------------------------------
BBG ICE
Barclays BofA
Net Public Global ML U.S.
Asset Offering High High
Value Price Yield Yield
Period (NAV) (POP) Index Index
--------------------------------------------------------------------------------
10 years 5.05% 4.57% 7.85% 7.69%
5 years 4.08 3.12 6.26 6.29
1 year 10.33 5.37 10.04 9.14
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2017)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.19%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Bloomberg Barclays ICE BofA ML U.S.
High Yield Fund Global High Yield Index High Yield Index
10/07 $ 9,550 $10,000 $10,000
10/08 $ 6,546 $ 7,163 $ 7,348
10/09 $ 9,398 $11,117 $10,934
10/10 $11,386 $13,280 $13,039
10/11 $11,442 $13,744 $13,667
10/12 $12,803 $15,720 $15,468
10/13 $13,694 $17,205 $16,834
10/14 $14,127 $17,989 $17,818
10/15 $13,228 $17,619 $17,453
10/16 $14,172 $19,351 $19,227
10/17 $15,635 $21,294 $20,984
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had charges been reflected. POP returns reflect deduction
of maximum 4.50% sales charge. All results are historical and assume the
reinvestment of dividends and capital gains. Other share classes are available
for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 11
Performance Update | 10/31/17 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Global High Yield Fund during the
periods shown, compared to that of the ICE Bank of America (BofA) Merrill Lynch
(ML) U.S. High Yield Index and the Bloomberg Barclays Global High Yield Index.
Average Annual Total Returns
(As of October 31, 2017)
--------------------------------------------------------------------------------
BBG ICE
Barclays BofA
Global ML U.S.
High High
If If Yield Yield
Period Held Redeemed Index Index
--------------------------------------------------------------------------------
10 years 4.32% 4.32% 7.85% 7.69%
5 years 3.35 3.35 6.26 6.29
1 year 9.46 9.46 10.04 9.14
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2017)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Bloomberg Barclays ICE BofA ML U.S.
High Yield Fund Global High Yield Index High Yield Index
10/07 $10,000 $10,000 $10,000
10/08 $ 6,792 $ 7,163 $ 7,348
10/09 $ 9,682 $11,117 $10,934
10/10 $11,661 $13,280 $13,039
10/11 $11,646 $13,744 $13,667
10/12 $12,947 $15,720 $15,468
10/13 $13,753 $17,205 $16,834
10/14 $14,088 $17,989 $17,818
10/15 $13,108 $17,619 $17,453
10/16 $13,946 $19,351 $19,227
10/17 $15,265 $21,294 $20,984
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer Global High Yield Fund | Annual Report | 10/31/17
Performance Update | 10/31/17 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Global High Yield Fund during the
periods shown, compared to that of the ICE Bank of America (BofA) Merrill Lynch
(ML) U.S. High Yield Index and the Bloomberg Barclays Global High Yield Index.
Average Annual Total Returns
(As of October 31, 2017)
--------------------------------------------------------------------------------
BBG ICE
Barclays BofA
Net Global ML U.S.
Asset High High
Value Yield Yield
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 5.37% 7.85% 7.69%
5 years 4.34 6.26 6.29
1 year 10.60 10.04 9.14
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2017)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global Bloomberg Barclays ICE BofA ML U.S.
High Yield Fund Global High Yield Index High Yield Index
10/07 $5,000,000 $ 5,000,000 $ 5,000,000
10/08 $3,451,771 $ 3,581,359 $ 3,674,145
10/09 $4,962,819 $ 5,558,651 $ 5,466,802
10/10 $6,022,187 $ 6,640,191 $ 6,519,651
10/11 $6,073,094 $ 6,871,805 $ 6,833,448
10/12 $6,823,118 $ 7,859,893 $ 7,734,126
10/13 $7,319,400 $ 8,602,701 $ 8,416,815
10/14 $7,568,347 $ 8,994,399 $ 8,909,224
10/15 $7,108,487 $ 8,809,655 $ 8,726,439
10/16 $7,630,267 $ 9,675,665 $ 9,613,446
10/17 $8,439,528 $10,647,027 $10,492,190
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 13
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 May 1, 2017, through October 31, 2017.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 5/1/17
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,047.27 $1,042.58 $1,047.94
on 10/31/17
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 6.09 $ 9.73 $ 4.70
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.18%,
1.89% and 0.91% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
14 Pioneer Global High Yield Fund | Annual Report | 10/31/17
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global High Yield Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2017, through October 31, 2017.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 5/1/17
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,019.26 $1,015.68 $1,020.62
on 10/31/17
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 6.01 $ 9.60 $ 4.63
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.18%,
1.89% and 0.91% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
Pioneer Global High Yield Fund | Annual Report | 10/31/17 15
Schedule of Investments | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 98.7%
CONVERTIBLE CORPORATE BONDS --
1.7% of Net Assets
CAPITAL GOODS -- 0.1%
Electrical Components & Equipment -- 0.1%
575,000(a) General Cable Corp., 4.5%, 11/15/29 $ 552,359
-------------
Total Capital Goods $ 552,359
-----------------------------------------------------------------------------------------------------
ENERGY -- 0.5%
Oil & Gas Exploration & Production -- 0.3%
1,785,000 Whiting Petroleum Corp., 1.25%, 4/1/20 $ 1,600,922
-----------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.2%
1,375,000 Golar LNG, Ltd., 2.75%, 2/15/22 (144A) $ 1,257,266
-------------
Total Energy $ 2,858,188
-----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Equipment -- 0.3%
875,000 NuVasive, Inc., 2.25%, 3/15/21 $ 1,012,812
575,000 Wright Medical Group, Inc., 2.0%, 2/15/20 622,438
-------------
Total Health Care Equipment & Services $ 1,635,250
-----------------------------------------------------------------------------------------------------
MATERIALS -- 0.1%
Construction Materials -- 0.1%
850,000 Cemex SAB de CV, 3.72%, 3/15/20 $ 900,469
-----------------------------------------------------------------------------------------------------
Steel -- 0.0%+
EUR 276,548(b) New World Resources NV, 4.0% (8.0% PIK 4.0% cash),
10/7/20 (144A) $ 32
-------------
Total Materials $ 900,501
-----------------------------------------------------------------------------------------------------
MEDIA -- 0.3%
Cable & Satellite -- 0.3%
2,148,000 DISH Network Corp., 2.375%, 3/15/24 (144A) $ 2,063,423
-------------
Total Media $ 2,063,423
-----------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.1%
Pharmaceuticals -- 0.1%
300,000 Jazz Investments I, Ltd., 1.875%, 8/15/21 $ 308,625
600,000 Medicines Co., 2.75%, 7/15/23 562,125
-------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 870,750
-----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.3%
Application Software -- 0.3%
1,258,000 Citrix Systems, Inc., 0.5%, 4/15/19 $ 1,542,622
-------------
Total Software & Services $ 1,542,622
-----------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BOND
(Cost $10,806,171) $ 10,423,093
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Global High Yield Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Shares Value
PREFERRED STOCK -- 0.4% of Net Assets
DIVERSIFIED FINANCIALS -- 0.4%
Consumer Finance -- 0.4%
96,924(c)(d) GMAC Capital Trust I, 7.1% (3 Month USD
LIBOR + 579 bps), 2/15/40 $ 2,545,224
-------------
Total Diversified Financials $ 2,545,224
-----------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $2,307,205) $ 2,545,224
-----------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.8% of Net Assets
BANKS -- 0.8%
Diversified Banks -- 0.8%
2,650(d)(e) Bank of America Corp., 7.25% $ 3,436,944
1,000(d)(e) Wells Fargo & Co., 7.5% 1,310,000
-------------
Total Banks $ 4,746,944
-----------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $4,521,835) $ 4,746,944
-----------------------------------------------------------------------------------------------------
COMMON STOCKS -- 0.8% of Net Assets
AUTOMOBILES & COMPONENTS -- 0.0%+
Automobile Manufacturers -- 0.0%+
16,820(d) Ford Motor Co. $ 206,382
-------------
Total Automobiles & Components $ 206,382
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.0%+
Construction & Engineering -- 0.0%+
530,321(d) Abengoa SA, Class A $ 20,388
5,483,653(d) Abengoa SA, Class B 76,662
-------------
$ 97,050
-----------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.0%+
156,027(d)(f) Liberty Tire Recycling LLC $ 1,560
-------------
Total Capital Goods $ 98,610
-----------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.0%+
Homebuilding -- 0.0%+
1,443,476(d) Desarrolladora Homex SAB de CV $ 59,560
-------------
Total Consumer Durables & Apparel $ 59,560
-----------------------------------------------------------------------------------------------------
ENERGY -- 0.4%
Coal & Consumable Fuels -- 0.0%+
49(d) Alpha Natural Resources Holdings, Inc. $ 196
37(d) Contura Energy, Inc. 2,187
-------------
$ 2,383
-----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.4%
5,735,146(d)(f) Ascent CNR Corp. $ 1,233,056
39,631(d) Frontera Energy Corp. 1,184,896
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 17
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production (continued)
1,046(d) Midstates Petroleum Co., Inc. $ 15,951
203(d) SilverBow Resources, Inc. 4,565
-------------
$ 2,438,468
-------------
Total Energy $ 2,440,851
-----------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.1%
Distillers & Vintners -- 0.1%
18,811(d) Marie Brizard Wine & Spirits SA $ 281,605
-------------
Total Food, Beverage & Tobacco $ 281,605
-----------------------------------------------------------------------------------------------------
MATERIALS -- 0.0%+
Steel -- 0.0%+
49(d) ANR, Inc., Class C $ 1,029
-------------
Total Materials $ 1,029
-----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.3%
Air Freight & Logistics -- 0.3%
5,012+(d) CEVA Holdings LLC $ 2,029,787
-------------
Total Transportation $ 2,029,787
-----------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost $18,091,947) $ 5,117,824
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($)
-----------------------------------------------------------------------------------------------------
ASSET BACKED SECURITY -- 0.1% of Net Assets
BANKS -- 0.1%
Thrifts & Mortgage Finance -- 0.1%
450,000 InSite Issuer LLC, Series 2016-1A, Class C, 6.414%,
11/15/46 (144A) $ 460,345
-------------
Total Banks $ 460,345
-----------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITY
(Cost $450,000) $ 460,345
-----------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS --
1.2% of Net Assets
BANKS -- 1.2%
Diversified Banks -- 0.1%
850,000(g) Wells Fargo Commercial Mortgage Trust, Series 2014-LC18,
Class D, 3.957%, 12/15/47 (144A) $ 713,859
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.1%
630,000(g) BAMLL Commercial Mortgage Securities Trust, Series
2016-FR14, Class C, 1.388%, 2/27/48 (144A) $ 554,400
1,500,000(g) Banc of America Commercial Mortgage Trust, Series 2007-4,
Class D, 5.907%, 2/10/51 (144A) 1,500,000
1,500,000(g) Citigroup Commercial Mortgage Trust, Series 2014-GC23,
Class E, 3.208%, 7/10/47 (144A) 970,198
1,480,000(g) COBALT CMBS Commercial Mortgage Trust, Series 2007-C3,
Class B, 5.842%, 5/15/46 1,477,247
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global High Yield Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance (continued)
455,000(g) COBALT CMBS Commercial Mortgage Trust, Series 2007-C3,
Class C, 5.842%, 5/15/46 $ 322,281
750,000(c) Commercial Mortgage Trust, Series 2014-FL5, Class D,
5.239% (1 Month USD LIBOR + 400 bps), 10/15/31 (144A) 712,725
375,000(g) Commercial Mortgage Trust, Series 2014-UBS4, Class D,
4.687%, 8/10/47 (144A) 333,736
256,362 Homeowner Assistance Program Reverse Mortgage Loan
Trust, Series 2013-RM1, Class A, 4.0%, 5/26/53 (144A) 255,721
500,000(g) JPMBB Commercial Mortgage Securities Trust, Series
2014-C25, Class D, 3.946%, 11/15/47 (144A) 386,334
500,000(g) Wachovia Bank Commercial Mortgage Trust, Series
2006-C27, Class B, 5.865%, 7/15/45 505,227
-------------
$ 7,017,869
-------------
Total Banks $ 7,731,728
-----------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATION
(Cost $7,770,854) $ 7,731,728
-----------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 79.9% of Net Assets
AUTOMOBILES & COMPONENTS -- 0.8%
Auto Parts & Equipment -- 0.8%
375,000 Allison Transmission, Inc., 4.75%, 10/1/27 (144A) $ 378,750
2,035,000 Dana Financing Luxembourg S.a.r.l., 6.5%, 6/1/26 (144A) 2,213,063
EUR 1,350,000(b) IHO Verwaltungs GmbH, 3.75% (4.5% PIK 0.0% cash),
9/15/26 (144A) 1,682,842
877,000 TI Group Automotive Systems LLC, 8.75%, 7/15/23 (144A) 947,160
-------------
Total Automobiles & Components $ 5,221,815
-----------------------------------------------------------------------------------------------------
BANKS -- 7.0%
Diversified Banks -- 5.3%
800,000 Access Bank Plc, 10.5%, 10/19/21 (144A) $ 904,176
1,600,000 Akbank Turk AS, 5.125%, 3/31/25 1,549,542
2,000,000(e)(g) Alfa Bank AO Via Alfa Bond Issuance Plc, 8.0% (5 Year USD
Swap Rate + 666 bps) 2,129,660
1,175,000(e)(g) Banco do Brasil SA, 9.0% (5 Year CMT Index + 636 bps) 1,289,563
295,000(g) Banco Nacional de Comercio Exterior SNC, 3.8% (5 Year
CMT Index + 300 bps), 8/11/26 (144A) 293,525
700,000 BBVA Bancomer SA, 6.75%, 9/30/22 (144A) 794,850
2,114,000(e)(g) BNP Paribas SA, 7.625% (5 Year USD Swap
Rate + 631 bps) (144A) 2,370,322
1,200,000(e)(g) Danske Bank A/S, 6.125% (USD Swap Rate + 390 bps) 1,302,245
2,971,000 Finansbank AS, 4.875%, 5/19/22 (144A) 2,930,624
1,299,000(e)(g) HSBC Holdings Plc, 6.0% (5 Year USD 1100 Run ICE
Swap Rate + 375 bps) 1,380,187
1,685,000(e)(g) ING Groep NV, 6.5% (5 Year USD Swap Rate + 445 bps) 1,849,456
INR 31,450,000 International Bank for Reconstruction & Development,
5.75%, 10/28/19 487,733
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 19
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Diversified Banks (continued)
ARS 17,443,000 Letras del Banco Central de la Republica Argentina,
0.0%, 4/18/18 $ 873,864
EUR 970,000(e)(g) Lloyds Banking Group Plc, 6.375% (5 Year EUR Swap
Rate + 529 bps) 1,255,533
1,773,000(e)(g) Royal Bank of Scotland Group Plc, 8.0% (5 Year USD
Swap Rate + 572 bps) 2,026,894
1,570,000(e)(g) Royal Bank of Scotland Group Plc, 8.625% (5 Year USD
Swap Rate + 760 bps) 1,777,868
750,000 Sberbank of Russia Via SB Capital SA, 5.25%,
5/23/23 (144A) 783,435
2,140,000(e)(g) Societe Generale SA, 7.375% (5 Year USD Swap
Rate + 624 bps) (144A) 2,359,350
1,840,000 Turkiye Is Bankasi, 5.375%, 10/6/21 (144A) 1,842,767
1,500,000 Turkiye Is Bankasi, 5.5%, 4/21/22 (144A) 1,494,747
350,000 Turkiye Is Bankasi, 6.125%, 4/25/24 (144A) 348,837
1,860,000 Turkiye Vakiflar Bankasi TAO, 5.625%, 5/30/22 (144A) 1,855,350
759,000(g) Turkiye Vakiflar Bankasi TAO, 8.0% (5 Year USD Swap
Rate + 585 bps), 11/1/27 (144A) 779,721
-------------
$ 32,680,249
-----------------------------------------------------------------------------------------------------
Supranational -- 1.3%
INR 28,480,000 Asian Development Bank, 5.9%, 12/20/22 $ 438,144
INR 134,290,000 Asian Development Bank, 6.2%, 10/6/26 2,088,146
INR 108,160,000 Asian Development Bank, 6.45%, 8/8/21 1,705,591
290,000 Banque Ouest Africaine de Developpement, 5.0%,
7/27/27 (144A) 301,600
2,386,000 Banque Ouest Africaine de Developpement, 5.5%,
5/6/21 (144A) 2,543,934
ARS 16,270,000(k) European Bank for Reconstruction & Development, 2/1/19 736,098
250,000(c) International Bank for Reconstruction & Development,
12.557% (6 Month USD LIBOR + 1,150 bps),
7/15/20 (144A) 249,855
-------------
$ 8,063,368
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.4%
2,615,000 Financiera Independencia SAB de CV SOFOM ENR, 8.0%,
7/19/24 (144A) $ 2,706,786
-------------
Total Banks $ 43,450,403
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 3.9%
Aerospace & Defense -- 0.7%
EUR 3,615,000 TA MFG., Ltd., 3.625%, 4/15/23 (144A) $ 4,349,489
-----------------------------------------------------------------------------------------------------
Construction & Engineering -- 0.2%
1,475,000 Amsted Industries, Inc., 5.375%, 9/15/24 (144A) $ 1,548,750
-----------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.3%
EUR 735,000 Loxam SAS, 4.25%, 4/15/24 (144A) $ 917,998
EUR 705,000 Loxam SAS, 6.0%, 4/15/25 (144A) 897,421
-------------
$ 1,815,419
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global High Yield Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.5%
920,000 Exterran Energy Solutions LP / EES Finance Corp.,
8.125%, 5/1/25 (144A) $ 968,300
2,000,000 General Cable Corp., 5.75%, 10/1/22 2,050,000
-------------
$ 3,018,300
-----------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.5%
2,388,000 JB Poindexter & Co., Inc., 9.0%, 4/1/22 (144A) $ 2,498,445
485,000 Park-Ohio Industries, Inc., 6.625%, 4/15/27 526,225
-------------
$ 3,024,670
-----------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.7%
1,315,000 Apex Tool Group LLC, 7.0%, 2/1/21 (144A) $ 1,245,963
EUR 2,365,000 Colfax Corp., 3.25%, 5/15/25 (144A) 2,887,751
-------------
$ 4,133,714
-----------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 1.0%
1,174,000 H&E Equipment Services, Inc., 5.625%, 9/1/25 (144A) $ 1,240,038
1,500,000 United Rentals North America, Inc., 4.625%, 10/15/25 1,534,725
1,500,000 United Rentals North America, Inc., 4.875%, 1/15/28 1,507,500
1,690,000 WESCO Distribution, Inc., 5.375%, 12/15/21 1,741,714
-------------
$ 6,023,977
-------------
Total Capital Goods $ 23,914,319
-----------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.1%
Environmental & Facilities Services -- 0.1%
745,000 Clean Harbors, Inc., 5.125%, 6/1/21 $ 755,244
-------------
Total Commercial Services & Supplies $ 755,244
-----------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 2.0%
Homebuilding -- 2.0%
2,237,897(b) Abengoa Abenewco 2 SAU, 1.5% (1.25% PIK 0.25% cash),
3/31/23 (144A) $ 106,300
1,000,000 Beazer Homes USA, Inc., 5.875%, 10/15/27 (144A) 998,750
1,984,000 Beazer Homes USA, Inc., 6.75%, 3/15/25 2,098,675
460,000 Beazer Homes USA, Inc., 8.75%, 3/15/22 511,152
1,345,000 KB Home, 7.0%, 12/15/21 1,516,487
2,079,000 Lennar Corp., 4.75%, 11/15/22 2,195,944
2,200,000 Rialto Holdings LLC / Rialto Corp., 7.0%, 12/1/18 (144A) 2,205,500
1,625,000 Taylor Morrison Communities, Inc / Taylor Morrison
Holdings II, Inc., 5.875%, 4/15/23 (144A) 1,739,758
1,150,000 TRI Pointe Group, Inc., 5.25%, 6/1/27 1,175,875
-------------
Total Consumer Durables & Apparel $ 12,548,441
-----------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 2.6%
Casinos & Gaming -- 2.0%
EUR 1,870,000 Codere Finance 2 Luxembourg SA, 6.75%, 11/1/21 (144A) $ 2,276,672
1,370,000 Golden Nugget, Inc., 8.75%, 10/1/25 (144A) 1,407,675
EUR 2,125,000 Intralot Capital Luxembourg SA, 5.25%, 9/15/24 (144A) 2,525,137
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 21
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Casinos & Gaming (continued)
EUR 1,275,000 Intralot Capital Luxembourg SA, 6.75%, 9/15/21 (144A) $ 1,594,476
91,432(b)(h) Mashantucket Western Pequot Tribe, 6.5% (5.5% PIK
1.0% cash), 7/1/36 457
3,831,000 Scientific Games International, Inc., 10.0%, 12/1/22 4,237,776
-------------
$ 12,042,193
-----------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.2%
1,502,000 Viking Cruises, Ltd., 5.875%, 9/15/27 (144A) $ 1,513,265
-----------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.4%
1,350,000 Aegea Finance S.a.r.l., 5.75%, 10/10/24 (144A) $ 1,386,720
1,140,000 Ashtead Capital, Inc., 4.125%, 8/15/25 (144A) 1,148,550
-------------
$ 2,535,270
-------------
Total Consumer Services $ 16,090,728
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.0%
Consumer Finance -- 1.4%
155,000 Ally Financial, Inc., 4.625%, 3/30/25 $ 164,881
913,000 Ally Financial, Inc., 5.75%, 11/20/25 1,007,724
1,925,000 Credito Real SAB de CV SOFOM ER, 7.25%,
7/20/23 (144A) 2,027,025
INR 94,350,000 International Finance Corp., 6.3%, 11/25/24 1,476,310
INR 240,670,000 International Finance Corp., 8.25%, 6/10/21 3,995,661
-------------
$ 8,671,601
-----------------------------------------------------------------------------------------------------
Diversified Capital Markets -- 0.5%
759,000(e)(g) Credit Suisse Group AG, 7.125% (5 Year USD Swap
Rate + 511 bps) $ 831,105
1,775,000(e)(g) UBS Group AG, 7.125% (5 Year USD Swap Rate + 588 bps) 1,948,062
-------------
$ 2,779,167
-----------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.4%
2,028,000 UBS AG, 7.625%, 8/17/22 $ 2,393,040
-----------------------------------------------------------------------------------------------------
Specialized Finance -- 2.7%
1,992,872(b) AAF Holdings LLC / AAF Finance Co., 12.0% (12.75% PIK
12.0% cash), 7/1/19 (144A) $ 2,092,516
3,000,000 Cantor Fitzgerald LP, 7.875%, 10/15/19 (144A) 3,279,447
1,925,000 Gerdau Trade, Inc., 4.875%, 10/24/27 (144A) 1,931,256
1,185,000 Nationstar Mortgage LLC / Nationstar Capital Corp.,
6.5%, 7/1/21 1,202,775
4,870,000 Nationstar Mortgage LLC / Nationstar Capital Corp.,
6.5%, 6/1/22 4,991,750
3,300,000 Nova Austral SA, 8.25%, 5/26/21 (144A) 3,381,801
-------------
$ 16,879,545
-------------
Total Diversified Financials $ 30,723,353
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global High Yield Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
ENERGY -- 13.5%
Integrated Oil & Gas -- 3.3%
445,000 Ascent Resources Utica Holdings LLC / ARU Finance
Corp., 10.0%, 4/1/22 (144A) $ 482,825
5,725,000 Petrobras Global Finance BV, 5.299%, 1/27/25 (144A) 5,743,606
4,665,000 Petrobras Global Finance BV, 5.375%, 1/27/21 4,904,081
1,256,000 Petrobras Global Finance BV, 6.25%, 3/17/24 1,346,872
1,250,000 Petrobras Global Finance BV, 7.375%, 1/17/27 1,388,125
700,000(c) Petroleos Mexicanos, 4.967% (3 Month USD
LIBOR + 365 bps), 3/11/22 (144A) 763,000
1,600,000 Petroleos Mexicanos, 6.5%, 3/13/27 (144A) 1,747,200
MXN 8,650,000 Petroleos Mexicanos, 7.19%, 9/12/24 (144A) 404,761
2,475,000 YPF SA, 6.95%, 7/21/27 (144A) 2,653,200
ARS 22,125,000 YPF SA, 16.5%, 5/9/22 (144A) 1,179,158
-------------
$ 20,612,828
-----------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.6%
2,306,000 Rowan Cos., Inc., 5.4%, 12/1/42 $ 1,752,560
417,000 Rowan Cos., Inc., 5.85%, 1/15/44 335,685
455,000 Transocean, Inc., 7.5%, 1/15/26 (144A) 468,650
1,170,000 Trinidad Drilling, Ltd., 6.625%, 2/15/25 (144A) 1,137,825
-------------
$ 3,694,720
-----------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.4%
1,117,000 Archrock Partners LP / Archrock Partners Finance
Corp., 6.0%, 4/1/21 $ 1,111,415
1,000,000 Archrock Partners LP / Archrock Partners Finance Corp.,
6.0%, 10/1/22 993,750
505,000 SESI LLC, 7.75%, 9/15/24 (144A) 522,675
-------------
$ 2,627,840
-----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 5.5%
1,285,000 Antero Resources Corp., 5.0%, 3/1/25 $ 1,304,275
300,000 California Resources Corp., 8.0%, 12/15/22 (144A) 198,000
1,245,000 Carrizo Oil & Gas, Inc., 6.25%, 4/15/23 1,266,787
167,000 Chesapeake Energy Corp., 8.0%, 12/15/22 (144A) 179,682
718,000 Cobalt International Energy, Inc., 7.75%, 12/1/23 (144A) 442,467
1,826,000 Cobalt International Energy, Inc., 10.75%, 12/1/21 (144A) 1,876,215
1,385,000 Continental Resources, Inc., 3.8%, 6/1/24 1,345,181
965,000 Covey Park Energy LLC / Covey Park Finance Corp.,
7.5%, 5/15/25 (144A) 1,001,188
850,000 Extraction Oil & Gas, Inc., 7.375%, 5/15/24 (144A) 905,250
1,920,000 Geopark, Ltd., 6.5%, 9/21/24 (144A) 1,968,960
1,380,000 Great Western Petroleum LLC / Great Western Finance, Inc.,
9.0%, 9/30/21 (144A) 1,414,500
1,055,000 Gulfport Energy Corp., 6.0%, 10/15/24 1,055,000
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 23
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production (continued)
2,000,000 Gulfport Energy Corp., 6.375%, 5/15/25 $ 2,030,000
212,000 Halcon Resources Corp., 6.75%, 2/15/25 (144A) 216,770
2,390,000 Hilcorp Energy I LP / Hilcorp Finance Co., 5.0%,
12/1/24 (144A) 2,378,050
575,000 MEG Energy Corp., 6.5%, 1/15/25 (144A) 572,125
1,460,000 MEG Energy Corp., 7.0%, 3/31/24 (144A) 1,324,950
425,000 Newfield Exploration Co., 5.625%, 7/1/24 459,531
2,915,000 Nostrum Oil & Gas Finance BV, 8.0%, 7/25/22 (144A) 3,033,058
1,455,000 Novatek OAO via Novatek Finance DAC, 4.422%,
12/13/22 (144A) 1,495,304
1,515,000 Oasis Petroleum, Inc., 6.875%, 3/15/22 1,552,875
320,000 Parsley Energy LLC / Parsley Finance Corp., 5.25%,
8/15/25 (144A) 323,200
1,460,000 Parsley Energy LLC / Parsley Finance Corp., 5.375%,
1/15/25 (144A) 1,481,900
600,000 Parsley Energy LLC / Parsley Finance Corp., 5.625%,
10/15/27 (144A) 619,128
250,000 Parsley Energy LLC / Parsley Finance Corp., 6.25%,
6/1/24 (144A) 265,000
1,560,000 Rice Energy, Inc., 6.25%, 5/1/22 1,632,384
2,727,000 Sanchez Energy Corp., 6.125%, 1/15/23 2,277,045
200,000 SM Energy Co., 6.125%, 11/15/22 201,000
945,000 SM Energy Co., 6.75%, 9/15/26 969,806
-------------
$ 33,789,631
-----------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.8%
1,790,000 Calumet Specialty Products Partners LP / Calumet
Finance Corp., 6.5%, 4/15/21 $ 1,751,963
448,000 EnLink Midstream Partners LP, 5.05%, 4/1/45 438,654
1,299,000 EnLink Midstream Partners LP, 5.6%, 4/1/44 1,351,029
1,056,842(c) EP PetroEcuador via Noble Sovereign Funding I, Ltd.,
6.961% (3 Month USD LIBOR + 563 bps), 9/24/19 1,075,865
415,000 PBF Holding Co., LLC / PBF Finance Corp., 7.0%, 11/15/23 431,600
-------------
$ 5,049,111
-----------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 2.9%
2,447,000 Cheniere Corpus Christi Holdings LLC, 5.125%,
6/30/27 (144A) $ 2,523,469
1,730,000 Cheniere Energy Partners LP, 5.25%, 10/1/25 (144A) 1,781,900
1,500,000 Delek Logistics Partners LP, 6.75%, 5/15/25 (144A) 1,528,125
1,085,000 Energy Transfer Equity LP, 5.875%, 1/15/24 1,177,225
1,090,000 Genesis Energy LP / Genesis Energy Finance Corp.,
5.75%, 2/15/21 1,106,786
1,395,000 Genesis Energy LP / Genesis Energy Finance Corp.,
6.5%, 10/1/25 1,412,437
1,820,000 Global Partners LP / GLP Finance Corp., 7.0%, 6/15/23 1,847,300
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global High Yield Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation (continued)
1,000,000(c) Golar LNG Partners LP, 7.565% (3 Month USD
LIBOR + 625 bps), 5/18/21 (144A) $ 987,511
500,000 Sabine Pass Liquefaction LLC, 5.0%, 3/15/27 537,945
710,000 Sabine Pass Liquefaction LLC, 5.875%, 6/30/26 803,242
2,150,000 Targa Resources Partners LP / Targa Resources Partners
Finance Corp., 4.25%, 11/15/23 2,139,250
559,000 Targa Resources Partners LP / Targa Resources Partners
Finance Corp., 5.0%, 1/15/28 (144A) 560,398
1,375,000 Williams Cos., Inc., 4.55%, 6/24/24 1,436,875
-------------
$ 17,842,463
-------------
Total Energy $ 83,616,593
-----------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.2%
Food Retail -- 0.2%
1,285,000 C&S Group Enterprises LLC, 5.375%, 7/15/22 (144A) $ 1,246,450
-------------
Total Food & Staples Retailing $ 1,246,450
-----------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 6.0%
Packaged Foods & Meats -- 5.6%
GBP 1,170,000 Boparan Finance Plc, 5.5%, 7/15/21 (144A) $ 1,470,615
1,335,000(h) CFG Investment SAC, 9.75%, 7/30/19 (144A) 1,365,037
EUR 1,353,000 Darling Global Finance BV, 4.75%, 5/30/22 (144A) 1,647,176
950,000 JBS Investments GmbH, 7.25%, 4/3/24 (144A) 938,125
3,135,000 JBS USA LUX SA / JBS USA Finance, Inc., 5.75%,
6/15/25 (144A) 3,040,950
525,000 Lamb Weston Holdings, Inc., 4.625%, 11/1/24 (144A) 548,625
525,000 Lamb Weston Holdings, Inc., 4.875%, 11/1/26 (144A) 551,906
1,335,000 MARB BondCo Plc, 7.0%, 3/15/24 (144A) 1,345,012
3,015,000 Marfrig Holdings Europe BV, 6.875%, 6/24/19 (144A) 3,116,756
3,923,000 Marfrig Holdings Europe BV, 8.0%, 6/8/23 (144A) 4,099,535
1,425,000 MHP SE, 8.25%, 4/2/20 (144A) 1,539,000
1,560,000 Minerva Luxembourg SA, 6.5%, 9/20/26 (144A) 1,617,720
6,530,000 Minerva Luxembourg SA, 7.75%, 1/31/23 (144A) 6,832,013
5,000,000 Pesquera Exalmar SAA, 7.375%, 1/31/20 (144A) 4,875,000
830,000 Pilgrim's Pride Corp., 5.875%, 9/30/27 (144A) 863,200
255,000 Post Holdings, Inc., 5.5%, 3/1/25 (144A) 265,838
1,226,687(h) Tonon Luxembourg SA, 10.5%, 5/14/24 (144A) 502,942
-------------
$ 34,619,450
-----------------------------------------------------------------------------------------------------
Tobacco -- 0.4%
535,000 Alliance One International, Inc., 8.5%, 4/15/21 (144A) $ 560,413
2,125,000 Alliance One International, Inc., 9.875%, 7/15/21 1,872,656
-------------
$ 2,433,069
-------------
Total Food, Beverage & Tobacco $ 37,052,519
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 25
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.6%
Health Care Facilities -- 1.2%
495,000 CHS/Community Health Systems, Inc., 6.25%, 3/31/23 $ 476,437
3,915,000 CHS/Community Health Systems, Inc., 6.875%, 2/1/22 2,833,481
1,725,000 Kindred Healthcare, Inc., 6.375%, 4/15/22 1,596,488
1,320,000 Kindred Healthcare, Inc., 8.0%, 1/15/20 1,333,200
1,175,000 RegionalCare Hospital Partners Holdings, Inc., 8.25%,
5/1/23 (144A) 1,233,750
-------------
$ 7,473,356
-----------------------------------------------------------------------------------------------------
Health Care Services -- 0.3%
1,430,000 Team Health Holdings, Inc., 6.375%, 2/1/25 (144A) $ 1,315,600
595,000 Universal Hospital Services, Inc., 7.625%, 8/15/20 602,438
-------------
$ 1,918,038
-----------------------------------------------------------------------------------------------------
Health Care Technology -- 0.7%
EUR 1,300,000 Quintiles IMS, Inc., 2.875%, 9/15/25 (144A) $ 1,537,218
EUR 2,200,000 Quintiles IMS, Inc., 3.25%, 3/15/25 (144A) 2,653,089
-------------
$ 4,190,307
-----------------------------------------------------------------------------------------------------
Managed Health Care -- 1.4%
1,840,000 Centene Corp., 4.75%, 5/15/22 $ 1,927,400
245,000 Centene Corp., 4.75%, 1/15/25 252,962
1,550,000 Centene Corp., 5.625%, 2/15/21 1,608,125
1,500,000 Molina Healthcare, Inc., 5.375%, 11/15/22 1,560,750
3,155,000 WellCare Health Plans, Inc., 5.25%, 4/1/25 3,320,638
-------------
$ 8,669,875
-------------
Total Health Care Equipment & Services $ 22,251,576
-----------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.5%
Household Cleaning Supplies -- 0.3%
EUR 1,400,000 Diamond BC BV, 5.625%, 8/15/25 (144A) $ 1,685,097
-----------------------------------------------------------------------------------------------------
Personal Products -- 0.2%
375,000 Revlon Consumer Products Corp., 5.75%, 2/15/21 $ 321,562
1,200,000 Revlon Consumer Products Corp., 6.25%, 8/1/24 885,000
-------------
$ 1,206,562
-------------
Total Household & Personal Products $ 2,891,659
-----------------------------------------------------------------------------------------------------
INSURANCE -- 2.2%
Reinsurance -- 2.2%
450,000(c) Alamo Re, Ltd., 5.944% (3 Month Treasury Bill + 481 bps),
6/7/18 (144A) (Cat Bond) $ 456,210
1,300,000+(i)(j) Arlington Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 8/1/18 63,180
1,000,000+(i)(j) Berwick Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 12/31/17 30,000
800,000+(i)(j) Berwick Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 2/1/18 38,000
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global High Yield Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Reinsurance (continued)
500,000(c) Caelus Re V, Ltd., Series D, 10.381% (3 Month Treasury
Bill + 925 bps), 6/5/20 (144A) (Cat Bond) $ 236,150
3,900,000+(i)(j) Carnoustie Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 12/31/17 79,560
2,600,000+(i)(j) Carnoustie Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/20 281,320
800,000+(i)(j) Carnoustie Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/21 720,000
600,000+(i)(j) Cyprus Segregated Account (Artex SAC, Ltd.), Series 2017,
Variable Rate Notes, 1/10/18 517,260
2,646+(i)(j) Eden Re II, Ltd., Variable Rate Notes, 4/23/19 (144A) 45,428
600,000+(i)(j) Eden Re II, Ltd., Variable Rate Notes, 3/22/21 (144A) 577,080
300,000(c) Galilei Re, Ltd., 6.375% (6 Month USD LIBOR + 525 bps),
1/8/20 (144A) (Cat Bond) 292,410
300,000(c) Galilei Re, Ltd., 7.375% (6 Month USD LIBOR + 625 bps),
1/8/20 (144A) (Cat Bond) 282,720
300,000(c) Galilei Re, Ltd., 7.395% (6 Month USD LIBOR + 625 bps),
1/8/21 (144A) (Cat Bond) 276,330
250,000(c) Galilei Re, Ltd., 9.125% (6 Month USD LIBOR + 800 bps),
1/8/20 (144A) (Cat Bond) 217,150
1,600,000+(i)(j) Gleneagles Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/20 187,520
3,500,000+(i)(j) Gullane Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/20 76,300
800,000+(i)(j) Gullane Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 11/30/21 784,160
500,000(c) Kilimanjaro II Re, Ltd., 11.209% (6 Month USD
LIBOR + 1,000 bps), 4/20/21 (144A) (Cat Bond) 309,150
300,000+(i)(j) Kingsbarns Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 5/1/18 277,860
250,000+(i)(j) Limestone Re, Ltd., Series 1, Class A Non Voting, Variable
Rate Notes, 8/31/21 231,250
250,000+(i)(j) Limestone Re, Ltd., Series 1, Class A Voting, Variable Rate
Notes, 8/31/21 231,250
1,100,000+(i)(j) Lorenz Re, Ltd. (Prime, Ltd.), Variable Rate Notes, 3/31/19 61,600
450,000+(i)(j) Lorenz Re, Ltd. (Prime, Ltd.), Variable Rate Notes, 3/31/20 405,405
490,000+(i)(j) Madison Re, Variable Rate Notes, 3/31/19 31,115
300,000+(i)(j) Madison Re, Variable Rate Notes, 3/31/20 214,890
400,000(c) Northshore Re II, Ltd., 8.376% (3 Month Treasury
Bill + 725 bps), 7/6/20 (144A) (Cat Bond) 405,400
250,000+(i)(j) Oakmont 2017 Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 4/1/18 228,725
3,900,000+(i)(j) Pangaea Re Segregated Account (Artex SAC, Ltd.), Series
2015-1, Variable Rate Notes, 2/1/19 17,550
3,500,000+(i)(j) Pangaea Re Segregated Account (Artex SAC, Ltd.), Series
2016-1, Variable Rate Notes, 2/1/20 231,350
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 27
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Reinsurance (continued)
1,000,000+(i)(j) Pangaea Re Segregated Account (Artex SAC, Ltd.),
Series 2016-2, Variable Rate Notes, 11/30/20 $ 65,800
300,000+(i)(j) Pinehurst Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 1/16/18 297,150
300,000+(i)(j) Portrush 2017 Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 6/15/18 280,470
1,300,000+(i)(j) Prestwick Segregated Account (Artex SAC Ltd.), Variable
Rate Notes, 12/31/17 22,100
250,000(k) Residential Reinsurance 2016, Ltd., 12/6/17
(144A) (Cat Bond) 248,425
500,000(c) Residential Reinsurance 2016, Ltd., 6.501% (3 Month
Treasury Bill + 537 bps), 12/6/20 (144A) (Cat Bond) 495,050
400,000+(i)(j) Resilience Re, Ltd., Variable Rate Notes, 1/8/19 (144A) 400,000
400,000+(i)(j) Resilience Re, Ltd., Variable Rate Notes, 4/6/18 347,520
AUD 300,000+(i)(j) Rewire Securities LLC, Variable Rate Notes, 1/10/18 7,595
5,450+(i)(j) Sector Re V, Ltd., Variable Rate Notes, 12/1/20 (144A) 34,041
2,600,000+(i)(j) St. Andrews Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 12/31/17 51,220
1,750,000+(i)(j) St. Andrews Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 2/1/18 246,050
500,000+(i)(j) St. Andrews Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 2/1/19 517,950
521,395+(i)(j) St. Andrews Segregated Account (Artex SAC, Ltd.), Variable
Rate Notes, 6/1/19 535,838
500,000+(i)(j) Sunningdale 2017 Segregated Account (Artex SAC, Ltd.),
Variable Rate Notes, 1/16/18 490,750
600,000(c) Ursa Re, Ltd., 6.0% (ZERO + 600 bps), 5/27/20
(144A) (Cat Bond) 603,900
3,000,000+(i)(j) Versutus, Ltd. (MMC Securities), Series 2016-A, Variable
Rate Notes, 11/30/20 127,800
600,000+(i)(j) Versutus, Ltd. (MMC Securities), Series 2017-A, Variable
Rate Notes, 11/30/21 587,580
250,000+(i)(j) Wentworth 2017, Variable Rate Notes, 7/13/18 230,350
-------------
Total Insurance $ 13,395,912
-----------------------------------------------------------------------------------------------------
MATERIALS -- 8.3%
Aluminum -- 0.6%
680,000 Constellium NV, 7.875%, 4/1/21 (144A) $ 722,704
3,025,000 Rusal Capital, DAC, 5.125%, 2/2/22 (144A) 3,080,367
-------------
$ 3,803,071
-----------------------------------------------------------------------------------------------------
Commodity Chemicals -- 0.3%
755,000 Evolution Escrow Issuer LLC, 7.5%, 3/15/22 (144A) $ 791,806
1,000,000 Hexion US Finance Corp., 6.625%, 4/15/20 890,000
-------------
$ 1,681,806
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global High Yield Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Construction Materials -- 0.5%
1,900,000 Beacon Escrow Corp., 4.875%, 11/1/25 (144A) $ 1,923,180
EUR 1,200,000 Cemex SAB de CV, 4.75%, 1/11/22 (144A) 1,441,743
-------------
$ 3,364,923
-----------------------------------------------------------------------------------------------------
Copper -- 0.2%
1,150,000 Freeport-McMoRan, Inc., 3.55%, 3/1/22 $ 1,138,500
-----------------------------------------------------------------------------------------------------
Diversified Chemicals -- 1.9%
EUR 625,000 Avantor, Inc., 4.75%, 10/1/24 $ 742,694
EUR 2,015,000 Axalta Coating Systems LLC, 4.25%, 8/15/24 (144A) 2,529,944
460,000 Blue Cube Spinco, Inc., 9.75%, 10/15/23 546,250
3,365,000 CF Industries, Inc., 3.45%, 6/1/23 3,322,938
EUR 1,138,000 INEOS Finance Plc, 4.0%, 5/1/23 (144A) 1,371,859
2,840,000 Koks OAO Via Koks Finance DAC, 7.5%, 5/4/22 (144A) 3,061,088
-------------
$ 11,574,773
-----------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.0%
810,000 Ausdrill Finance Pty, Ltd., 6.875%, 11/1/19 (144A) $ 823,162
1,100,000 MMC Norilsk Nickel OJSC via MMC Finance DAC, 5.55%,
10/28/20 (144A) 1,168,420
2,580,000 Nexa Resources SA, 5.375%, 5/4/27 (144A) 2,724,996
860,000 Prince Mineral Holding Corp., 11.5%, 12/15/19 (144A) 887,950
1,218,000 Rain CII Carbon LLC / CII Carbon Corp., 7.25%,
4/1/25 (144A) 1,318,485
1,150,000 Vedanta Resources Plc, 6.375%, 7/30/22 (144A) 1,203,130
500,000 Vedanta Resources Plc, 7.125%, 5/31/23 539,250
3,645,000 Vedanta Resources Plc, 8.25%, 6/7/21 (144A) 4,073,288
-------------
$ 12,738,681
-----------------------------------------------------------------------------------------------------
Forest Products -- 0.3%
2,155,000 Eldorado Intl. Finance GmbH, 8.625%, 6/16/21 (144A) $ 2,203,488
-----------------------------------------------------------------------------------------------------
Gold -- 0.2%
1,150,000 Kinross Gold Corp., 4.5%, 7/15/27 (144A) $ 1,164,375
-----------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.9%
EUR 700,000(b) ARD Finance SA, 6.625% (7.375% PIK
0.0% cash), 9/15/23 $ 876,344
700,000(b) ARD Finance SA, 7.125% (7.875% PIK 0.0% cash), 9/15/23 745,500
590,000 Ardagh Packaging Finance Plc / Ardagh Holdings USA, Inc.,
4.625%, 5/15/23 (144A) 606,225
EUR 410,000 Ardagh Packaging Finance Plc / Ardagh Holdings USA, Inc.,
6.75%, 5/15/24 (144A) 534,321
630,000 Ardagh Packaging Finance Plc / Ardagh Holdings USA, Inc.,
7.25%, 5/15/24 (144A) 692,213
EUR 725,000 Horizon Holdings I SAS, 7.25%, 8/1/23 (144A) 899,526
EUR 950,000 Verallia Packaging SASU, 5.125%, 8/1/22 (144A) 1,169,695
-------------
$ 5,523,824
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 29
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Silver -- 0.2%
1,040,000 Coeur Mining, Inc., 5.875%, 6/1/24 $ 1,040,000
-----------------------------------------------------------------------------------------------------
Steel -- 1.2%
1,258,000 AK Steel Corp., 6.375%, 10/15/25 $ 1,239,130
715,000 ArcelorMittal, 6.125%, 6/1/25 824,731
2,066,000 BlueScope Steel Finance, Ltd. / BlueScope Steel Finance
USA LLC, 6.5%, 5/15/21 (144A) 2,158,970
770,000 Commercial Metals Co., 5.375%, 7/15/27 795,025
1,635,000(h) Samarco Mineracao SA, 4.125%, 11/1/22 (144A) 960,562
670,000 SunCoke Energy Partners LP / SunCoke Energy Partners
Finance Corp., 7.5%, 6/15/25 (144A) 701,825
588,000 United States Steel Corp., 6.875%, 8/15/25 596,453
-------------
$ 7,276,696
-------------
Total Materials $ 51,510,137
-----------------------------------------------------------------------------------------------------
MEDIA -- 3.7%
Advertising -- 0.2%
1,125,000 MDC Partners, Inc., 6.5%, 5/1/24 (144A) $ 1,147,500
-----------------------------------------------------------------------------------------------------
Broadcasting -- 0.8%
1,650,000 Gray Television, Inc., 5.125%, 10/15/24 (144A) $ 1,645,380
1,970,000 Gray Television, Inc., 5.875%, 7/15/26 (144A) 2,019,250
1,600,000 Sinclair Television Group, Inc., 5.125%, 2/15/27 (144A) 1,522,000
-------------
$ 5,186,630
-----------------------------------------------------------------------------------------------------
Cable & Satellite -- 2.0%
320,000 Altice Financing SA, 6.625%, 2/15/23 (144A) $ 337,312
1,900,000 CCO Holdings LLC / CCO Holdings Capital Corp., 5.125%,
5/1/27 (144A) 1,919,000
1,615,000 CCO Holdings LLC / CCO Holdings Capital Corp., 5.75%,
2/15/26 (144A) 1,688,482
1,075,000 CSC Holdings LLC, 5.5%, 4/15/27 (144A) 1,107,250
2,140,000 DISH DBS Corp., 5.875%, 7/15/22 2,152,048
283,000 Intelsat Connect Finance SA, 12.5%, 4/1/22 (144A) 268,142
186,000 Sirius XM Radio, Inc., 3.875%, 8/1/22 (144A) 189,488
372,000 Sirius XM Radio, Inc., 5.0%, 8/1/27 (144A) 375,255
595,000 Videotron, Ltd., 5.125%, 4/15/27 (144A) 625,494
1,000,000 Videotron, Ltd., 5.375%, 6/15/24 (144A) 1,080,000
EUR 2,300,000 Ziggo Secured Finance BV, 4.25%, 1/15/27 (144A) 2,866,473
-------------
$ 12,608,944
-----------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.7%
GBP 900,000 AMC Entertainment Holdings, Inc., 6.375%, 11/15/24 $ 1,227,748
1,575,000 Netflix, Inc., 4.375%, 11/15/26 (144A) 1,544,484
EUR 1,125,000 WMG Acquisition Corp., 4.125%, 11/1/24 (144A) 1,389,787
-------------
$ 4,162,019
-------------
Total Media $ 23,105,093
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global High Yield Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 1.8%
Pharmaceuticals -- 1.8%
2,271,000 Endo Finance LLC / Endo Finco, Inc., 5.375%,
1/15/23 (144A) $ 1,828,155
750,000 Horizon Pharma, Inc., 6.625%, 5/1/23 738,750
225,000 Horizon Pharma, Inc. / Horizon Pharma USA, Inc., 8.75%,
11/1/24 (144A) 235,687
EUR 3,475,000 Valeant Pharmaceuticals International, Inc., 4.5%, 5/15/23 3,438,730
EUR 1,540,000 Valeant Pharmaceuticals International, Inc., 4.5%,
5/15/23 (144A) 1,523,926
2,062,000 Valeant Pharmaceuticals International, Inc., 5.875%,
5/15/23 (144A) 1,742,390
565,000 Valeant Pharmaceuticals International, Inc., 6.5%,
3/15/22 (144A) 598,900
755,000 Valeant Pharmaceuticals International, Inc., 7.0%,
3/15/24 (144A) 817,288
350,000 West Street Merger Sub, Inc., 6.375%, 9/1/25 (144A) 354,813
-------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 11,278,639
-----------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.1%
Diversified REIT -- 0.2%
EUR 1,120,000 Globalworth Real Estate Investments, Ltd., 2.875%, 6/20/22 $ 1,337,783
-----------------------------------------------------------------------------------------------------
Specialized REITs -- 0.9%
919,000 Equinix, Inc., 5.375%, 4/1/23 $ 948,868
2,000,000 Iron Mountain, Inc., 4.875%, 9/15/27 (144A) 2,025,620
2,870,000 Uniti Group LP / Uniti Group Finance, Inc. / CSL Capital
LLC, 6.0%, 4/15/23 (144A) 2,873,587
-------------
$ 5,848,075
-------------
Total Real Estate $ 7,185,858
-----------------------------------------------------------------------------------------------------
RETAILING -- 1.1%
Department Stores -- 0.5%
1,800,000 Grupo Kaltex SA de CV, 8.875%, 4/11/22 (144A) $ 1,689,750
EUR 1,025,000 Takko Lux 2 SCA, 5.375%, 11/15/23 1,194,973
-------------
$ 2,884,723
-----------------------------------------------------------------------------------------------------
Distributors -- 0.2%
1,250,000 LKQ Corp., 4.75%, 5/15/23 $ 1,284,375
-----------------------------------------------------------------------------------------------------
Specialty Stores -- 0.4%
1,030,000 PetSmart, Inc., 5.875%, 6/1/25 (144A) $ 898,675
2,285,000 PetSmart, Inc., 7.125%, 3/15/23 (144A) 1,742,312
-------------
$ 2,640,987
-------------
Total Retailing $ 6,810,085
-----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.6%
Application Software -- 0.2%
1,430,000 Open Text Corp., 5.875%, 6/1/26 (144A) $ 1,549,762
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 31
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 1.4%
EUR 1,250,000 Alliance Data Systems Corp., 4.5%, 3/15/22 (144A) $ 1,521,056
1,765,000 Alliance Data Systems Corp., 5.875%, 11/1/21 (144A) 1,826,775
3,100,000 Cardtronics, Inc., 5.125%, 8/1/22 3,162,000
610,000 Cardtronics, Inc. / Cardtronics USA, Inc., 5.5%,
5/1/25 (144A) 606,950
1,260,000 First Data Corp., 7.0%, 12/1/23 (144A) 1,348,225
-------------
$ 8,465,006
-----------------------------------------------------------------------------------------------------
Internet Software & Services -- 0.4%
1,780,000 Cimpress NV, 7.0%, 4/1/22 (144A) $ 1,853,425
551,000 IAC / InterActiveCorp, 4.875%, 11/30/18 551,937
-------------
$ 2,405,362
-----------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.6%
795,000 Change Healthcare Holdings LLC / Change Healthcare
Finance, Inc., 5.75%, 3/1/25 (144A) $ 812,888
735,000 Dell International LLC / EMC Corp., 5.875%, 6/15/21 (144A) 769,749
410,000 j2 Cloud Services LLC / j2 Global Co-Obligor, Inc., 6.0%,
7/15/25 (144A) 431,525
1,455,000 Rackspace Hosting, Inc., 8.625%, 11/15/24 (144A) 1,532,297
-------------
$ 3,546,459
-------------
Total Software & Services $ 15,966,589
-----------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.5%
Communications Equipment -- 0.4%
2,221,000 Avaya, Inc., 7.0%, 4/1/19 (144A) $ 1,865,640
512,000 CommScope Technologies LLC, 6.0%, 6/15/25 (144A) 540,800
-------------
$ 2,406,440
-----------------------------------------------------------------------------------------------------
Electronic Components -- 0.9%
EUR 1,505,000 Belden, Inc., 2.875%, 9/15/25 (144A) $ 1,757,656
EUR 815,000 Belden, Inc., 3.375%, 7/15/27 (144A) 970,838
EUR 250,000 Belden, Inc., 4.125%, 10/15/26 (144A) 313,531
1,000,000 Belden, Inc., 5.25%, 7/15/24 (144A) 1,040,000
EUR 1,095,000 Belden, Inc., 5.5%, 4/15/23 (144A) 1,339,586
-------------
$ 5,421,611
-----------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.1%
450,000 TTM Technologies, Inc., 5.625%, 10/1/25 (144A) $ 459,000
-----------------------------------------------------------------------------------------------------
Technology Hardware, Storage & Peripherals -- 0.1%
910,000 Diebold Nixdorf, Inc., 8.5%, 4/15/24 $ 956,637
-------------
Total Technology Hardware & Equipment $ 9,243,688
-----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 6.3%
Integrated Telecommunication Services -- 1.7%
1,000,000 CB Escrow Corp., 8.0%, 10/15/25 (144A) $ 1,032,500
2,260,000 CenturyLink, Inc., 5.625%, 4/1/25 2,203,500
5,075,000 Frontier Communications Corp., 8.75%, 4/15/22 4,180,531
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global High Yield Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Integrated Telecommunication Services (continued)
1,665,000 GCI, Inc., 6.875%, 4/15/25 $ 1,802,363
2,125,000 Windstream Services LLC, 7.75%, 10/1/21 1,604,375
-------------
$ 10,823,269
-----------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 4.6%
2,800,000 Altice Financing SA, 6.5%, 1/15/22 (144A) $ 2,898,000
600,000 Altice Finco SA, 8.125%, 1/15/24 (144A) 646,572
3,320,000 Digicel, Ltd., 6.0%, 4/15/21 (144A) 3,265,751
1,770,000 Millicom International Cellular SA, 5.125%, 1/15/28 (144A) 1,779,027
4,825,000 MTN Mauritius Investment, Ltd., 5.373%, 2/13/22 (144A) 4,966,131
4,235,000 Sprint Corp., 7.25%, 9/15/21 4,616,150
1,155,000 T-Mobile USA, Inc., 6.0%, 4/15/24 1,235,850
2,750,000 Unison Ground Lease Funding LLC, 5.78%, 3/15/20 (144A) 2,731,653
RUB 124,400,000 VEON Holdings BV, 9.0%, 2/13/18 (144A) 2,132,909
EUR 1,455,000 Wind Tre SpA, 2.625%, 1/20/23 (144A) 1,702,703
EUR 1,972,000 Wind Tre SpA, 3.125%, 1/20/25 (144A) 2,304,272
-------------
$ 28,279,018
-------------
Total Telecommunication Services $ 39,102,287
-----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.1%
Airlines -- 0.7%
860,000 DAE Funding LLC, 5.0%, 8/1/24 (144A) $ 878,275
1,062,576 Guanay Finance, Ltd., 6.0%, 12/15/20 (144A) 1,094,549
325,000 Intrepid Aviation Group Holdings LLC / Intrepid Finance Co.,
6.875%, 2/15/19 (144A) 320,937
1,585,000 Latam Finance, Ltd., 6.875%, 4/11/24 (144A) 1,676,138
-------------
$ 3,969,899
-----------------------------------------------------------------------------------------------------
Airport Services -- 0.2%
370,000 Aeropuertos Argentina 2000 SA, 6.875%, 2/1/27 (144A) $ 398,675
525,000 Aeropuertos Dominicanos Siglo XXI SA, 6.75%,
3/30/29 (144A) 569,625
-------------
$ 968,300
-----------------------------------------------------------------------------------------------------
Highways & Railtracks -- 0.6%
MXN 37,000,000 Red de Carreteras de Occidente SAPIB de CV, 9.0%,
6/10/28 (144A) $ 1,885,912
1,820,000 Rumo Luxembourg S.a.r.l., 7.375%, 2/9/24 (144A) 1,982,890
-------------
$ 3,868,802
-----------------------------------------------------------------------------------------------------
Marine -- 0.6%
2,100,000(h) Far East Capital, Ltd., SA, 8.0%, 5/2/18 $ 1,646,400
2,225,000 Navios South American Logistics, Inc. / Navios Logistics
Finance US, Inc., 7.25%, 5/1/22 (144A) 2,180,500
-------------
$ 3,826,900
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 33
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Trucking -- 0.0%+
2,952,182(h) Inversiones Alsacia SA, 8.0%, 12/31/18 (144A) $ 73,805
-------------
Total Transportation $ 12,707,706
-----------------------------------------------------------------------------------------------------
UTILITIES -- 4.0%
Electric Utilities -- 1.7%
459,000 AES Corp., 5.125%, 9/1/27 $ 471,163
EUR 1,225,000 ContourGlobal Power Holdings SA, 5.125%, 6/15/21 (144A) 1,500,008
1,325,000(e)(g) Electricite de France SA, 5.25% (USD Swap
Rate + 371 bps) (144A) 1,379,656
2,395,000(g) Enel S.p.A., 8.75% (5 Year USD Swap Rate + 588 bps),
9/24/73 (144A) 2,957,825
390,000 NextEra Energy Operating Partners LP, 4.25%, 9/15/24 (144A) 393,900
725,000 Stoneway Capital Corp., 10.0%, 3/1/27 (144A) 764,875
137,000 Talen Energy Supply LLC, 4.625%, 7/15/19 (144A) 138,713
2,715,000 TerraForm Global Operating LLC, 9.75%, 8/15/22 (144A) 3,006,863
-------------
$ 10,613,003
-----------------------------------------------------------------------------------------------------
Gas Utilities -- 0.7%
2,133,000 DCP Midstream Operating LP, 5.6%, 4/1/44 $ 2,037,015
2,175,000 Ferrellgas LP / Ferrellgas Finance Corp., 6.75%, 6/15/23 2,022,750
-------------
$ 4,059,765
-----------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Traders -- 1.6%
1,195,000 Calpine Corp., 5.25%, 6/1/26 (144A) $ 1,196,494
2,529,000 Calpine Corp., 5.75%, 1/15/25 2,402,550
2,213,000 Dynegy, Inc., 8.0%, 1/15/25 (144A) 2,417,702
940,000 Instituto Costarricense de Electricidad, 6.95%,
11/10/21 (144A) 1,028,360
600,000 NRG Energy, Inc., 6.25%, 5/1/24 637,500
1,705,000 NRG Energy, Inc., 6.625%, 1/15/27 1,815,825
205,000 NRG Energy, Inc., 7.25%, 5/15/26 222,169
205,000(a) TerraForm Power Operating LLC, 6.375%, 2/1/23 (144A) 214,738
-------------
$ 9,935,338
-------------
Total Utilities $ 24,608,106
-----------------------------------------------------------------------------------------------------
TOTAL CORPORATE BOND
(Cost $483,357,901) $ 494,677,200
-----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS --
2.7% of Net Assets
4,215,000(k) U.S. Treasury Bill, 11/2/17 $ 4,214,893
3,060,000(k) U.S. Treasury Bill, 11/9/17 3,059,363
6,240,000(k) U.S. Treasury Bill, 11/16/17 6,237,504
3,100,000(k) U.S. Treasury Bill, 11/24/17 3,098,074
-------------
$ 16,609,834
-----------------------------------------------------------------------------------------------------
TOTAL U.S GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $16,609,881) $ 16,609,834
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global High Yield Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 6.9% of Net Assets
Argentina -- 2.1%
1,125,000 Argentine Republic Government International Bond,
6.875%, 1/26/27 $ 1,226,250
1,850,000 Argentine Republic Government International Bond,
7.5%, 4/22/26 2,090,500
2,650,000 City of Buenos Aires Argentina, 7.5%, 6/1/27 (144A) 2,960,395
752,032 Province of Salta Argentina, 9.5%, 3/16/22 (144A) 804,674
500,000 Provincia de Buenos Aires, 9.95%, 6/9/21 (144A) 581,325
1,840,000 Provincia de Entre Rios Argentina, 8.75%, 2/8/25 (144A) 1,991,800
3,015,000 Provincia del Chubut Argentina, 7.75%, 7/26/26 (144A) 3,181,669
-------------
$ 12,836,613
-----------------------------------------------------------------------------------------------------
Bahrain -- 0.4%
2,200,000 Bahrain Government International Bond, 7.0%,
10/12/28 (144A) $ 2,260,632
-----------------------------------------------------------------------------------------------------
Cayman Islands -- 0.2%
1,350,000 Brazil Minas SPE via State of Minas Gerais, 5.333%,
2/15/28 (144A) $ 1,373,625
-----------------------------------------------------------------------------------------------------
Cote D'Ivoire -- 0.1%
EUR 725,000 Ivory Coast Government International Bond, 5.125%,
6/15/25 (144A) $ 892,161
-----------------------------------------------------------------------------------------------------
Ecuador -- 0.4%
1,931,000 Ecuador Government International Bond, 8.875%,
10/23/27 (144A) $ 1,975,627
560,000 Ecuador Government International Bond, 10.5%,
3/24/20 (144A) 607,600
-------------
$ 2,583,227
-----------------------------------------------------------------------------------------------------
Egypt -- 1.1%
1,440,000 Egypt Government International Bond, 7.5%,
1/31/27 (144A) $ 1,596,370
EGP 67,975,000(k) Egypt Treasury Bill, 3/6/18 3,623,876
EGP 20,550,000(k) Egypt Treasury Bill, 5/15/18 1,060,336
-------------
$ 6,280,582
-----------------------------------------------------------------------------------------------------
Gabon -- 0.1%
690,000 Gabon Government International Bond, 6.375%,
12/12/24 (144A) $ 676,310
-----------------------------------------------------------------------------------------------------
Honduras -- 0.2%
925,000 Honduras Government International Bond, 6.25%,
1/19/27 (144A) $ 997,492
-----------------------------------------------------------------------------------------------------
Ireland -- 0.2%
925,000 Vnesheconombank Via VEB Finance Plc, 6.902%,
7/9/20 (144A) $ 1,002,027
-----------------------------------------------------------------------------------------------------
Jordan -- 0.1%
900,000 Jordan Government International Bond, 5.75%,
1/31/27 (144A) $ 900,000
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 35
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Kenya -- 0.3%
1,535,000 Kenya Government International Bond, 5.875%,
6/24/19 (144A) $ 1,582,892
-----------------------------------------------------------------------------------------------------
Mexico -- 0.3%
MXN 42,200,388 Mexican Udibonos, 2.0%, 6/9/22 $ 2,087,686
-----------------------------------------------------------------------------------------------------
Nigeria -- 0.3%
1,845,000 Africa Finance Corp., 4.375%, 4/29/20 (144A) $ 1,907,815
-----------------------------------------------------------------------------------------------------
Oman -- 0.3%
1,760,000 Oman Government International Bond, 5.375%,
3/8/27 (144A) $ 1,806,439
-----------------------------------------------------------------------------------------------------
Senegal -- 0.3%
1,800,000 Senegal Government International Bond, 6.25%,
5/23/33 (144A) $ 1,860,570
-----------------------------------------------------------------------------------------------------
Sri Lanka -- 0.3%
1,729,000 Sri Lanka Government International Bond, 6.2%,
5/11/27 (144A) $ 1,837,491
-----------------------------------------------------------------------------------------------------
Uruguay -- 0.2%
UYU 37,635,000 Uruguay Government International Bond, 9.875%,
6/20/22 (144A) $ 1,370,106
-----------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BOND
(Cost $41,434,980) $ 42,255,668
-----------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE
LOAN INTERESTS -- 3.0% of Net Assets*(c)
AUTOMOBILES & COMPONENTS -- 0.0%+
Auto Parts & Equipment -- 0.0%+
1,764 Allison Transmission, Inc., Term Loan B-3, 3.25%
(LIBOR + 200 bps), 9/23/22 $ 1,776
-------------
Total Automobiles & Components $ 1,776
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.3%
Aerospace & Defense -- 0.3%
1,845,711 DynCorp International Inc., Term Loan B2, 7.75%
(LIBOR + 600 bps), 7/7/20 $ 1,854,556
-------------
Total Capital Goods $ 1,854,556
-----------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.1%
Diversified Support Services -- 0.1%
487,041 IAP Worldwide Services, Inc., Second Lien Term Loan, 8.0%
(LIBOR + 650 bps), 7/18/19 $ 485,824
-------------
Total Commercial Services & Supplies $ 485,824
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.5%
Other Diversified Financial Services -- 0.5%
3,030,000 Commonwealth of The Bahamas, First Lien Term Loan,
5.266% (LIBOR + 375 bps), 9/30/19 $ 3,030,000
-------------
Total Diversified Financials $ 3,030,000
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global High Yield Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
ENERGY -- 0.4%
Coal & Consumable Fuels -- 0.0%+
994,608(h) PT Bakrie & Brothers TBK, Facility B Term Loan,
8.125%, 1/13/18 $ 104,434
-----------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.4%
1,950,000 Gavilan Resources LLC, Second Lien Initial Term Loan,
7.238% (LIBOR + 600 bps), 3/1/24 $ 1,901,250
650,000(l) Traverse Midstream Partners LLC, Advance Term Loan, 9/27/24 660,644
-------------
$ 2,561,894
-------------
Total Energy $ 2,666,328
-----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Services -- 0.1%
875,000 Alliance HealthCare Services, Inc., First Lien Initial Term
Loan, 5.88% (LIBOR + 450 bps), 10/24/23 $ 878,281
-----------------------------------------------------------------------------------------------------
Managed Health Care -- 0.2%
591,387(h) MMM Holdings, Inc., MMM Term Loan, 10.25%
(LIBOR + 875 bps), 6/30/19 $ 579,559
429,935(h) MSO of Puerto Rico, Inc., MSO Term Loan, 10.25%
(LIBOR + 875 bps), 6/30/19 421,337
-------------
$ 1,000,896
-------------
Total Health Care Equipment & Services $ 1,879,177
-----------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.3%
Personal Products -- 0.3%
2,558,832 Revlon Consumer Products Corp., Initial Term Loan B,
4.742% (LIBOR + 350 bps), 9/7/23 $ 2,218,188
-------------
Total Household & Personal Products $ 2,218,188
-----------------------------------------------------------------------------------------------------
MATERIALS -- 0.6%
Paper Packaging -- 0.3%
1,606,925 Caraustar Industries, Inc., Refinancing Term Loan, 6.833%
(LIBOR + 550 bps), 3/14/22 $ 1,622,324
-----------------------------------------------------------------------------------------------------
Steel -- 0.3%
1,975,075 Zekelman Industries, Inc. (fka JMC Steel Group, Inc.), Term
Loan, 4.073% (LIBOR + 275 bps), 6/14/21 $ 1,988,124
-------------
Total Materials $ 3,610,448
-----------------------------------------------------------------------------------------------------
RETAILING -- 0.4%
Automotive Retail -- 0.2%
1,391,818 CWGS Group LLC, Term Loan, 4.238%
(LIBOR + 375/400 bps + bps), 11/8/23 $ 1,406,025
-----------------------------------------------------------------------------------------------------
Specialty Stores -- 0.2%
1,000,000 Staples, Inc., Closing Date Term Loan, 5.31%
(LIBOR + 400 bps), 9/12/24 $ 945,795
-------------
Total Retailing $ 2,351,820
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 37
Schedule of Investments | 10/31/17 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
UTILITIES -- 0.1%
Electric Utilities -- 0.1%
162,500 Vistra Operations Co., LLC (fka Tex Operations Co., LLC),
Initial Term C Loan, 4.084% (LIBOR + 275 bps), 8/4/23 $ 163,212
707,156 Vistra Operations Co., LLC (fka Tex Operations Co., LLC),
Initial Term Loan, 4.011% (LIBOR + 275 bps), 8/4/23 710,250
-------------
Total Utilities $ 873,462
-----------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE LOAN INTEREST
(Cost $19,706,898) $ 18,971,579
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------------
RIGHT / WARRANTS -- 0.0%+ of Net Assets
ENERGY -- 0.0%
Coal & Consumable Fuels -- 0.0%+
61(d)(m) Contura Energy, Inc. $ 1,403
-----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.0%+
7,415(d)(n) Midstates Petroleum Co., Inc. $ --
-------------
Total Energy $ 1,403
-----------------------------------------------------------------------------------------------------
MATERIALS -- 0.0%+
Steel -- 0.0%+
318,254(d) ANR, Inc. $ 2,546
-------------
Total Materials $ 2,546
-----------------------------------------------------------------------------------------------------
TOTAL RIGHT / WARRANTS
(Cost $36,831) $ 3,949
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($)
-----------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS --
1.2% of Net Assets
COMMERCIAL PAPER -- 0.2%
1,505,000 Natixis NY, 1.08%, 11/1/17 $ 1,504,951
-----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 1.0%
2,280,000 $2,280,000 ScotiaBank, 1.05%, dated 10/31/17 plus
accrued interest on 11/1/17, collateralized by the following:
$1,588 Freddie Mac Giant, 3.0%, 8/1/29
$1,475 Federal National Mortgage Association,
3.0%, 11/1/26
$2,322,606 Government National Mortgage Association,
3.0% -- 3.5%, 11/20/45 -- 3/20/47. $ 2,280,000
1,400,000 $1,400,000 TD Securities USA LLC, 1.03%, dated
10/31/17 plus accrued interest on 11/1/17, collateralized
by the following:
$1,428,053 U.S. Treasury Note, 1.875% -- 3.375%,
7/31/22 -- 4/15/32. 1,400,000
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global High Yield Fund | Annual Report | 10/31/17
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (continued)
1,400,000 $1,400,000 TD Securities USA LLC, 1.05%, dated
10/31/17 plus accrued interest on 11/1/17, collateralized
by the following:
$1,428,053 U.S. Treasury Notes, 1.875% -- 3.375%,
7/31/22 -- 4/15/32. $ 1,400,000
1,150,000 $1,150,000 RBC Capital Markets LLC, 1.03%, dated
10/31/17 plus accrued interest on 11/1/17, collateralized
by the following:
$1,032 Freddie Mac Giant, 3.5%, 11/1/47
$92,731 Federal National Mortgage Association, 3.5% -- 4.0%,
11/1/31 -- 6/1/47
$1,079,237 Government National Mortgage Association,
4.0%, 3/20/47. $ 1,150,000
-------------
$ 6,230,000
-----------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $7,735,000) $ 7,734,951
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Notional Price Date Value
-----------------------------------------------------------------------------------------------------
CALL OPTIONS PURCHASED -- 0.0%+
MXN 297,012(m) Desarrolladora Bank of
Homex New York
SAB de CV Mellon Corp. $-- $--(o) 10/23/22 $ --
MXN 297,012(n) Desarrolladora Bank of
Homex New York
SAB de CV Mellon Corp. -- --(o) 10/23/22 --
-------------
$ --
-----------------------------------------------------------------------------------------------------
TOTAL CALL OPTION PURCHASED
(Premium paid $0) $ --
-----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS -- 98.7%
(Cost -- $612,829,503) $ 611,278,339
-----------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.3% $ 7,872,657
-----------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 619,150,996
=====================================================================================================
BPS Basis Point.
LIBOR London Interbank Offered Rate.
ZERO Zero Constant Index.
REIT Real Estate Investment Trust.
(144A) Security is exempt from registration under Rule 144A of the
Securities Act of 1933. Such securities may be resold normally to
qualified institutional buyers in a transaction exempt from
registration. At October 31, 2017, the value of these securities
amounted to $351,565,700, or 56.8% of total net assets.
(Cat Bond) Catastrophe or event-linked bond. At October 31, 2017, the value of
these securities amounted to $3,822,895, or 0.6% of total net
assets. See Notes to Financial Statements -- Note 1H.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 39
Schedule of Investments | 10/31/17 (continued)
+ Amount rounds to less than 0.1%.
* Senior secured floating rate loan interests in which the Trust
invests generally pay interest at rates that are periodically
redetermined by reference to a base lending rate plus a premium.
These base lending rates are generally (i) the lending rate offered
by one or more major European banks, such as LIBOR, (ii) the prime
rate offered by one or more major United States banks, (iii) the
rate of a certificate of deposit or (iv) other base lending rates
used by commercial lenders. The interest rate shown is the rate
accruing at October 31, 2017.
+ Securities that used significant unobservable inputs to determine
their value.
(a) Debt obligation initially issued at one coupon which converts to a
higher coupon at a specific date. The rate shown is the rate at
October 31, 2017.
(b) Payment in Kind (PIK) security which may pay interest in the form of
additional principal amount.
(c) Floating rate note. The coupon rate, reference index and spread
shown at October 31, 2017.
(d) Non-income producing.
(e) Security is perpetual in nature and has no stated maturity date.
(f) Security is valued using fair value methods (other than prices
supplied by independent pricing services).
(g) The interest rate is subject to change periodically. The interest
rate, reference index and spread shown at October 31, 2017.
(h) Security is in default.
(i) Structured reinsurance investment. At October 31, 2017, the value of
these securities amounted to $9,573,017, or 1.6% of total net
assets. See Notes to Financial Statements -- Note 1H.
(j) Rate to be determined.
(k) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(l) This term loan will settle after October 31, 2017, at which time the
interest rate will be determined.
(m) Option does not become effective until underlying company's
outstanding common shares reach a market capitalization of MXN 12.5
Billion.
(n) Option does not become effective until underlying company's
outstanding common shares reach a market capitalization of MXN 15.5
Billion.
(o) Strike price is 1 Mexican Peso (MXN).
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global High Yield Fund | Annual Report | 10/31/17
SWAP CONTRACTS
CENTRALLY CLEARED CREDIT DEFAULT SWAP CONTRACTS
-----------------------------------------------------------------------------------------------
Obligation Annual Premiums
Notional Reference/ Pay/ Fixed Expiration Paid/ Unrealized Market
Amount ($)(1) Index Receive(2) Rate Date (Received) Appreciation Value
-----------------------------------------------------------------------------------------------
4,282,550 Markit CDX Pay 5.00% 12/20/20 $ (33,023) $374,301 $341,278
North America
High Yield
Index Series 25
3,243,800 Markit CDX Pay 5.00% 6/20/21 139,613 166,424 306,037
North America
High Yield
Index Series 26
-----------------------------------------------------------------------------------------------
$106,590 $540,725 $647,315
===============================================================================================
CREDIT DEFAULT SWAP CONTRACTS - SELL PROTECTION
OVER THE COUNTER (OTC)
--------------------------------------------------------------------------------------------------------------
Obligation Annual
Notional Reference/ Pay/ Fixed Expiration Premiums Unrealized Market
Amount ($)(1) Counterparty Index Receive(2) Rate Date (Received) Appreciation Value
--------------------------------------------------------------------------------------------------------------
690,000 Goldman Sachs Chesapeake Pay 5.00% 6/20/22 $ (77,625) $ 41,601 $ (36,024)
International Energy Corp.
Bank
415,000 Goldman Sachs Chesapeake Pay 5.00% 6/20/22 (50,837) 29,170 (21,667)
International Energy Corp.
Bank
650,000 Goldman Sachs Chesapeake Pay 5.00% 6/20/22 (79,625) 45,689 (33,936)
International Energy Corp.
Bank
--------------------------------------------------------------------------------------------------------------
$(208,087) $ 116,460 $ (91,627)
--------------------------------------------------------------------------------------------------------------
TOTAL SWAPS CONTRACTS $(101,497) $ 657,185 $ 555,688
==============================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Pays Quarterly
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 41
Schedule of Investments | 10/31/17 (continued)
FORWARD FOREIGN CURRENCY CONTRACTS
--------------------------------------------------------------------------------------------------
Net
In Unrealized
Currency Exchange Currency Settlement Appreciation
Purchased for Sold Deliver Counterparty Date (Depreciation)
--------------------------------------------------------------------------------------------------
USD 6,696,917 INR 431,482,360 Goldman Sachs 11/09/17 $ 39,266
International Bank
PHP 80,225,000 USD 1,586,101 Goldman Sachs 11/03/17 (31,323)
International Bank
USD 1,569,654 PHP 80,225,000 JPMorgan Chase 11/03/17 14,875
Bank NA
USD 8,428,620 EUR 7,254,757 State Street 11/30/17 (36,239)
Bank & Trust Co.
EUR 805,000 USD 934,727 State Street 11/30/17 4,548
Bank & Trust Co.
--------------------------------------------------------------------------------------------------
TOTAL FORWARD FOREIGN CURRENCY CONTRACTS $ (8,873)
==================================================================================================
Principal amounts are denominated in U.S. dollars unless otherwise noted.
ARS Argentine Peso
AUD Australian Dollar
EGP Egyptian Pound
EUR Euro
GBP Great Britain Pound
INR Indian Rupee
MXN Mexican Peso
PHP Philippine Peso
RUB Russian Ruble
USD United States Dollar
UYU Uruguayan Peso
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2017 were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government $ -- $ --
Other Long-Term Securities $ 322,967,662 $ 413,437,151
The Fund is permitted to engage in purchase and sale transactions (cross trades)
with certain funds and accounts for which Amundi Pioneer Asset Management, Inc.
(the "Adviser"), serves as the investment adviser, as set forth in Rule 17a-7
under the Investment Company Act of 1940, pursuant to procedures adopted by the
Board of Trustees. Under these procedures, cross trades are effected at current
market prices. During the year ended October 31, 2017, the Fund engaged in
purchases and sales pursuant to these procedures amounting to $16,479,557 and
$13,529,133, respectively resulting in a gain of $499,504.
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global High Yield Fund | Annual Report | 10/31/17
At October 31, 2017, the net unrealized depreciation on investments based on
cost for federal tax purposes of $615,365,567 was as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 29,645,404
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (33,185,817)
-------------
Net unrealized depreciation $ (3,540,413)
=============
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 43
Schedule of Investments | 10/31/17 (continued)
The following is a summary of the inputs used as of October 31, 2017, in valuing
the Fund's investments.
----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 10,423,093 $ -- $ 10,423,093
Preferred Stock 2,545,224 -- -- 2,545,224
Convertible Preferred Stocks 4,746,944 -- -- 4,746,944
Common Stocks
Capital Goods
Industrial Machinery -- -- 1,560 1,560
Energy
Oil & Gas Exploration &
Production 1,205,412 -- 1,233,056 2,438,468
Transportation
Air Freight & Logistics -- -- 2,029,787 2,029,787
All Other Common Stocks 648,009 -- -- 648,009
Asset Backed Security -- 460,345 -- 460,345
Collateralized Mortgage
Obligations -- 7,731,728 -- 7,731,728
Corporate Bonds
Insurance
Reinsurance -- 3,822,895 9,573,017 13,395,912
All Other Corporate Bonds -- 481,281,288 -- 481,281,288
U.S. Government and Agency
Obligations -- 16,609,834 -- 16,609,834
Foreign Government Bonds -- 42,255,668 -- 42,255,668
Senior Secured Floating Rate
Loan Interests -- 18,971,579 -- 18,971,579
Rights/Warrants -- 3,949 -- 3,949
Commercial Paper -- 1,504,951 -- 1,504,951
Repurchase Agreements -- 6,230,000 -- 6,230,000
Call Options Purchased -- -- -- --
----------------------------------------------------------------------------------------------
Total Investments in Securities $ 9,145,589 $589,295,330 $ 12,837,420 $611,278,339
==============================================================================================
Other Financial Instruments
Net unrealized depreciation
on forward foreign
currency contracts $ -- $ (8,873) $ -- $ (8,873)
Swap contracts, at value -- 555,688 -- 555,688
----------------------------------------------------------------------------------------------
Total Other Financial Instruments $ -- $ 546,815 $ -- $ 546,815
==============================================================================================
The accompanying notes are an integral part of these financial statements.
44 Pioneer Global High Yield Fund | Annual Report | 10/31/17
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
-------------------------------------------------------------------------------------------
Convertible
Common Corporate Corporate
Stocks Bonds Bonds Total
-------------------------------------------------------------------------------------------
Balance as of 10/31/16 $ 4,300,699 $ 346,412 $ 27,598,609 $ 32,245,720
Realized gain (loss)(1) (2,417,725) (3,729,029) 73,958 (6,072,796)
Change in unrealized
appreciation (depreciation)(2) 4,456,055 3,729,029 (1,410,030) 6,775,054
Accrued discounts/premiums -- -- (163,555) (163,555)
Purchases 82,105 -- 8,353,166 8,435,271
Sales (4,465,630) (346,412) (24,879,131) (29,691,173)
Transfers in to Level 3* 1,308,899 -- -- 1,308,899
Transfers out of Level 3* -- -- -- --
-------------------------------------------------------------------------------------------
Balance as of 10/31/17 $ 3,264,403 $ -- $ 9,573,017 $ 12,837,420
===========================================================================================
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) on investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) on investments in the
Statement of Operations.
* Transfers are calculated on the beginning of period values. During the year
ended October 31, 2017, investments having a value of $1,308,899 were
transferred from Level 2 to Level 3. The change in the level designation
within the fair value hierarchy was due to valuing the security using
unobservable inputs. There were no other transfers between levels 1, 2 and
3.
Net change in unrealized appreciation of Level 3 investments still held
and considered Level 3 at October 31, 2017: $ 909,147
---------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 45
Statement of Assets and Liabilities | 10/31/17
ASSETS:
Investments in unaffiliated issuers, at value (cost $612,829,503) $ 611,278,339
Cash 1,989,432
Foreign currencies, at value (cost $3,249,977) 3,377,543
Swap contracts, at value (net premiums received $(101,497)) 555,688
Swaps collateral 416,422
Variation margin for centrally cleared swap contracts 7,839
Receivables --
Investment securities sold 3,576,127
Fund shares sold 507,219
Interest 8,296,615
Dividends 2,523
Other assets 33,808
-----------------------------------------------------------------------------------
Total assets $ 630,041,555
===================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 7,522,144
Fund shares repurchased 1,881,686
Distributions 305,325
Trustees' fees 3,162
Due to broker for swap contracts 652,357
Net unrealized depreciation on forward foreign currency contracts 8,873
Due to affiliates 155,536
Accrued expenses 361,476
-----------------------------------------------------------------------------------
Total liabilities $ 10,890,559
===================================================================================
NET ASSETS:
Paid-in capital $ 914,494,452
Distributions in excess of net investment income (2,937,133)
Accumulated net realized loss on investments (291,668,027)
Net unrealized depreciation on investments (738,296)
-----------------------------------------------------------------------------------
Net assets $ 619,150,996
===================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $182,899,791/20,064,419 shares) $ 9.12
Class C (based on $143,587,422/15,794,738 shares) $ 9.09
Class Y (based on $292,663,783/32,699,519 shares) $ 8.95
MAXIMUM OFFERING PRICE:
Class A ($9.12 (divided by) 95.5%) $ 9.55
===================================================================================
The accompanying notes are an integral part of these financial statements.
46 Pioneer Global High Yield Fund | Annual Report | 10/31/17
Statement of Operations
For the Year Ended 10/31/17
INVESTMENT INCOME:
Interest from unaffiliated issuers $ 43,285,570
Dividends from unaffiliated issuers 377,303
------------------------------------------------------------------------------------------------
Total investment income $ 43,662,873
------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 4,371,010
Administrative expense 214,073
Transfer agent fees
Class A 243,470
Class C 151,076
Class Y 337,330
Distribution fees
Class A 470,417
Class C 1,616,422
Shareholder communications expense 59,608
Custodian fees 94,704
Registration fees 83,006
Professional fees 53,374
Printing expense 44,004
Trustees' fees 26,362
Pricing expense 39,906
Miscellaneous 70,738
------------------------------------------------------------------------------------------------
Total expenses $ 7,875,500
------------------------------------------------------------------------------------------------
Net investment income $ 35,787,373
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $(20,245,522)
Swap contracts 273,221
Forward foreign currency contracts (626,800)
Other assets and liabilities denominated in
foreign currencies (235,393) $(20,834,494)
------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $ 46,673,854
Swap contracts 364,805
Forward foreign currency contracts (312,938)
Other assets and liabilities denominated
in foreign currencies 149,255 $ 46,874,976
------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ 26,040,482
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 61,827,855
================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 47
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/17 10/31/16*
----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 35,787,373 $ 49,164,741
Net realized gain (loss) on investments (20,834,494) (93,291,792)
Change in net unrealized appreciation
(depreciation) on investments 46,874,976 77,920,640
----------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 61,827,855 $ 33,793,589
----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.42 and $0.47 per share, respectively) $ (8,958,026) $ (12,102,966)
Class C ($0.35 and $0.41 per share, respectively) (6,590,456) (9,849,973)
Class Y ($0.43 and $0.48 per share, respectively) (14,231,124) (20,292,853)
Tax return of capital:
Class A ($0.05 and $0.04 per share, respectively) (949,283) (1,039,895)
Class C ($0.05 and $0.04 per share, respectively) (808,452) (957,019)
Class Y ($0.05 and $0.04 per share, respectively) (1,479,883) (1,462,389)
----------------------------------------------------------------------------------------
Total distributions to shareowners $ (33,017,224) $ (45,705,095)
----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 127,533,450 $ 107,183,404
Reinvestment of distributions 28,716,717 40,330,239
Cost of shares repurchased (231,073,307) (447,001,020)
----------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (74,823,140) (299,487,377)
----------------------------------------------------------------------------------------
Net decrease in net assets $ (46,012,509) $ (311,398,883)
NET ASSETS:
Beginning of year $ 665,163,505 $ 976,562,388
----------------------------------------------------------------------------------------
End of year $ 619,150,996 $ 665,163,505
----------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (2,937,133) $ (2,669,468)
========================================================================================
* The Fund was audited by an independent registered public accounting
firm other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
48 Pioneer Global High Yield Fund | Annual Report | 10/31/17
--------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/17 10/31/17 10/31/16 10/31/16
Shares Amount Shares* Amount*
--------------------------------------------------------------------------------------
Class A
Shares sold 2,627,008 $ 23,469,846 1,502,404 $ 12,563,258
Reinvestment of
distributions 977,107 8,698,460 1,415,368 11,855,334
Less shares repurchased (6,668,959) (59,151,186) (9,210,188) (76,947,782)
--------------------------------------------------------------------------------------
Net decrease (3,064,844) $ (26,982,880) (6,292,416) $ (52,529,190)
======================================================================================
Class C
Shares sold 572,332 $ 5,052,440 755,257 $ 6,249,038
Reinvestment of
distributions 709,708 6,301,947 1,047,555 8,752,547
Less shares repurchased (6,615,650) (58,590,146) (8,203,488) (68,568,704)
--------------------------------------------------------------------------------------
Net decrease (5,333,610) $ (47,235,759) (6,400,676) $ (53,567,119)
======================================================================================
Class Y
Shares sold 11,357,798 $ 99,011,164 10,732,152 $ 88,371,108
Reinvestment of
distributions 1,567,203 13,716,310 2,404,961 19,722,358
Less shares repurchased (13,003,798) (113,331,975) (37,531,165) (301,484,534)
--------------------------------------------------------------------------------------
Net decrease (78,797) $ (604,501) (24,394,052) $ (193,391,068)
======================================================================================
* The Fund was audited by an independent registered public accounting
firm other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 49
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------
Year
Year Year Year Year Ended
Ended Ended Ended Ended 10/31/13
10/31/17 10/31/16* 10/31/15* 10/31/14* (Consolidated)
------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 8.71 $ 8.64 $ 9.79 $ 10.13 $ 10.13
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.51(a) $ 0.54(a) $ 0.58(a) $ 0.66 $ 0.71
Net realized and unrealized gain (loss) on investments 0.37 0.04(b) (1.19) (0.34) (0.02)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.88 $ 0.58 $ (0.61) $ 0.32 $ 0.69
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.42) $ (0.47) $ (0.46) $ (0.63) $ (0.69)
Tax return of capital (0.05) (0.04) (0.08) (0.03) --
------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.47) $ (0.51) $ (0.54) $ (0.66) $ (0.69)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.41 $ 0.07 $ (1.15) $ (0.34) $ --
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.12 $ 8.71 $ 8.64 $ 9.79 $ 10.13
==============================================================================================================================
Total return (c) 10.33% 7.14%(d) (6.36)% 3.16% 6.96%
Ratio of net expenses to average net assets 1.18% 1.19% 1.17% 1.13% 1.10%
Ratio of net investment income (loss) to average net assets 5.71% 6.50% 6.31% 6.62% 6.97%
Portfolio turnover rate 53% 40% 32% 32% 33%
Net assets, end of period (in thousands) $182,900 $201,360 $254,056 $373,543 $ 531,829
==============================================================================================================================
* The Fund was audited by an independent registered public accounting
firm other than Ernst & Young LLP.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) The amount shown for a share outstanding does not correspond with the
aggregate loss on investments for the period due to the timing of sales and
repurchases of shares in relation to fluctuating market values of the
investments of the Fund.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(d) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended October 31, 2016, the total return would
have been 7.01%.
The accompanying notes are an integral part of these financial statements.
50 Pioneer Global High Yield Fund | Annual Report | 10/31/17
------------------------------------------------------------------------------------------------------------------------------
Year
Year Year Year Year Ended
Ended Ended Ended Ended 10/31/13
10/31/17 10/31/16* 10/31/15* 10/31/14* (Consolidated)
------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 8.69 $ 8.62 $ 9.76 $ 10.10 $ 10.10
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.44(a) $ 0.48(a) $ 0.51(a) $ 0.59 $ 0.63
Net realized and unrealized gain (loss) on investments 0.36 0.04(b) (1.17) (0.34) (0.01)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.80 $ 0.52 $ (0.66) $ 0.25 $ 0.62
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.35) $ (0.41) $ (0.40) $ (0.56) $ (0.62)
Tax return of capital (0.05) (0.04) (0.08) (0.03) --
------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.40) $ (0.45) $ (0.48) $ (0.59) $ (0.62)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.40 $ 0.07 $ (1.14) $ (0.34) $ --
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.09 $ 8.69 $ 8.62 $ 9.76 $ 10.10
==============================================================================================================================
Total return (c) 9.46% 6.40%(d) (6.96)% 2.43% 6.23%
Ratio of net expenses to average net assets 1.89% 1.90% 1.87% 1.83% 1.81%
Ratio of net investment income (loss) to average net assets 5.01% 5.79% 5.61% 5.91% 6.26%
Portfolio turnover rate 53% 40% 32% 32% 33%
Net assets, end of period (in thousands) $143,587 $183,542 $237,163 $354,162 $ 420,932
==============================================================================================================================
* The Fund was audited by an independent registered public accounting
firm other than Ernst & Young LLP.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) The amount shown for a share outstanding does not correspond with the
aggregate loss on investments for the period due to the timing of sales and
repurchases of shares in relation to fluctuating market values of the
investments of the Fund.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(d) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended October 31, 2016 the total return would have
been 6.28%.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 51
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------
Year
Year Year Year Year Ended
Ended Ended Ended Ended 10/31/13
10/31/17 10/31/16* 10/31/15* 10/31/14* (Consolidated)
-----------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 8.55 $ 8.49 $ 9.62 $ 9.96 $ 9.96
-----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.52(a) $ 0.57(a) $ 0.60(a) $ 0.67 $ 0.72
Net realized and unrealized gain (loss) on investments 0.36 0.01(b) (1.17) (0.33) (0.01)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.88 $ 0.58 $ (0.57) $ 0.34 $ 0.71
-----------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.43) $ (0.48) $ (0.48) $ (0.65) $ (0.71)
Tax return of capital (0.05) (0.04) (0.08) (0.03) --
-----------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.48) $ (0.52) $ (0.56) $ (0.68) $ (0.71)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.40 $ 0.06 $ (1.13) $ (0.34) $ --
-----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.95 $ 8.55 $ 8.49 $ 9.62 $ 9.96
=============================================================================================================================
Total return (c) 10.60% 7.34% (6.08)% 3.40% 7.27%
Ratio of net expenses to average net assets 0.91% 0.90% 0.87% 0.84% 0.82%
Ratio of net investment income (loss) to average net assets 5.96% 6.93% 6.60% 6.88% 7.24%
Portfolio turnover rate 53% 40% 32% 32% 33%
Net assets, end of period (in thousands) $292,664 $280,262 $485,344 $682,911 $ 780,656
=============================================================================================================================
* The Fund was audited by an independent registered public accounting
firm other than Ernst & Young LLP.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) The amount shown for a share outstanding does not correspond with the
aggregate loss on investments for the period due to the timing of sales and
repurchases of shares in relation to fluctuating market values of the
investments of the Fund.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
The accompanying notes are an integral part of these financial statements.
52 Pioneer Global High Yield Fund | Annual Report | 10/31/17
Notes to Financial Statements | 10/31/17
1. Organization and Significant Accounting Policies
Pioneer Global High Yield Fund (the Fund) is one of two portfolios comprising
Pioneer Series Trust VII (the Trust), a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is to
maximize total return through a combination of income and capital appreciation.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Class Z shares converted to Class Y shares as of the close of business
on August 7, 2015. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has identical rights (based on relative
net asset values) to assets and liquidation proceeds. Share classes can bear
different rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board of Trustees the
flexibility to specify either per share voting or dollar-weighted voting when
submitting matters for shareholder approval. Under per share voting, each share
of a class of the Fund is entitled to one vote. Under dollarweighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world. Amundi, one of the world's
largest asset managers, is headquartered in Paris, France. As a result of the
transaction, Pioneer Investment Management, Inc., the Fund's investment adviser,
became an indirect wholly owned subsidiary of Amundi and Amundi's wholly owned
subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer Investments was
owned by Pioneer Global Asset Management S.p.A., a wholly owned subsidiary of
UniCredit S.p.A.
In connection with the transaction, the names of the Fund's investment adviser
and principal underwriter changed. Effective July, 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc.
(the "Adviser") and the name of Pioneer Funds Distributor, Inc. changed to
Amundi Pioneer Distributor, Inc. (the "Distributor").
Pioneer Global High Yield Fund | Annual Report | 10/31/17 53
In October 2016, the Securities and Exchange Commission (SEC) released its Final
Rule on Investment Company Reporting Modernization. In addition to introducing
two new regulatory reporting forms (Form N-PORT and Form N-CEN), the Final Rule
amends Regulation S-X, which impacts financial statements presentation,
particularly related to the presentation of derivative investments. The Fund's
financial statements were prepared in compliance with the amendments to
Regulation S-X.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles (U.S. GAAP) that require the management
of the Fund to make estimates and assumptions that affect the reported amounts
of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the financial statements, and the reported amounts of income,
expenses and gain or loss on investments during the reporting period. Actual
results could differ from those estimates.
The Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the New
York Stock Exchange (NYSE) is open, as of the close of regular trading on
the NYSE.
Fixed income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Loan interests are valued in accordance with guidelines established by the
Board of Trustees at the mean between the last available bid and asked
prices from one or more brokers or dealers as obtained from Loan Pricing
Corporation, an independent third party pricing service. If price
information is not available from Loan Pricing Corporation, or if the price
information is deemed to be unreliable, price information will be obtained
from an
54 Pioneer Global High Yield Fund | Annual Report | 10/31/17
alternative loan interest pricing service. If no reliable price quotes are
available from either the primary or alternative pricing service, broker
quotes will be solicited.
Event-linked bonds or catastrophe bonds are valued at the bid price
obtained from an independent third party pricing service. Other insurance
linked securities (including sidecars, collateralized reinsurance and
industry loss warranties) may be valued at the bid price obtained from an
independent pricing service, or through a third party using a pricing
matrix, insurance industry valuation models, or other fair value methods or
techniques to provide an estimated value of the instrument.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party pricing
source. Trading in non-U.S. equity securities is substantially completed
each day at various times prior to the close of the NYSE. The values of
such securities used in computing the net asset value of the Fund's shares
are determined as of such times. The Fund may use a fair value model
developed by an independent pricing service to value non-U.S. equity
securities.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealers association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate and the forward points on a daily basis, in each case
provided by a third party pricing service. Contracts whose forward
settlement date falls between two quoted days are valued by interpolation.
Securities or loan interests for which independent pricing services or
broker dealers are unable to supply prices or for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued by a fair valuation team comprised of certain
personnel of the Adviser, pursuant to procedures adopted by the Fund's
Board of Trustees. The Adviser's
Pioneer Global High Yield Fund | Annual Report | 10/31/17 55
fair valuation team uses fair value methods approved by the Valuation
Committee of the Board of Trustees. The Adviser's fair valuation team is
responsible for monitoring developments that may impact fair valued
securities and for discussing and assessing fair values on an ongoing
basis, and at least quarterly, with the Valuation Committee of the Board of
Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
At October 31, 2017, two securities were valued using fair value methods
(in addition to securities valued using prices supplied by independent
pricing services, broker-dealers or using a third party insurance industry
pricing model) representing 0.20% of net assets. The value of these fair
valued securities is $1,234,616.
B. Investment Income and Transactions
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis,
net of unrecoverable foreign taxes withheld at the applicable country rates
and net of income accrued on defaulted securities.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
56 Pioneer Global High Yield Fund | Annual Report | 10/31/17
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on
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
the market prices of those securities but are included with the net
realized and unrealized gain or loss on investments.
D. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
is recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a 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.
During the year ended October 31, 2017, the Fund had entered into various
forward foreign currency contracts that obligate the Fund to deliver or
take delivery of currencies at specified future maturity dates.
Alternatively, prior to the settlement date of a forward foreign currency
contract, the Fund may close out such contract by entering into an
offsetting contract. The average value of contracts open during the year
ended October 31, 2017 was $(14,091,795).
Forward foreign currency contracts outstanding at October 31, 2017 are
listed in the Schedule of Investments.
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no provision for federal income taxes is
required. As of October 31, 2017, the Fund did not accrue any interest or
penalties with respect to uncertain tax positions, which, if applicable,
would be recorded as
Pioneer Global High Yield Fund | Annual Report | 10/31/17 57
an income tax expense in the Statement of Operations. Tax returns filed
within the prior three years remain subject to examination by federal and
state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary overdistributions for financial
statement purposes resulting from differences in the recognition or
classification of income or distributions for financial statement and tax
purposes. Capital accounts within the financial statements are adjusted for
permanent book/tax differences to reflect tax character, but are not
adjusted for temporary differences.
At October 31, 2017, the Fund reclassified $6,275,432 to increase
distributions in excess of net investment income, $211,134,417 to decrease
accumulated net realized loss on investments, and $204,858,985 to decrease
paid-in capital to reflect permanent book/tax differences. These
adjustments have no impact on net assets or the result of operations.
At October 31, 2017, the Fund was permitted to carry forward indefinitely
$22,066,008 of short-term losses and $243,325,356 of long-term losses under
the Regulated Investment Company Modernization Act of 2010 without
limitation. Additionally, at October 31, 2017, the Fund had a net capital
loss carryforward of $26,270,910 which will expire in 2018 if not utilized.
The tax character of distributions paid during the fiscal years ended
October 31, 2017 and October 31, 2016, were as follows:
---------------------------------------------------------------------------
2017 2016
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $29,779,606 $42,245,792
Tax return of capital 3,237,618 3,459,303
---------------------------------------------------------------------------
Total $33,017,224 $45,705,095
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2017:
---------------------------------------------------------------------------
2017
---------------------------------------------------------------------------
Distributable earnings:
Capital loss carryforward $(291,662,274)
Current year dividend payable (305,325)
Net unrealized depreciation (3,375,857)
---------------------------------------------------------------------------
Total $(295,343,456)
===========================================================================
58 Pioneer Global High Yield Fund | Annual Report | 10/31/17
The difference between book basis and tax basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales, the
mark-to-market of foreign currency contracts and swaps, adjustments
relating to catastrophe bonds, swaps, interest on defaulted bonds, and
interest accruals on preferred stock.
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor earned $8,811 in underwriting commissions on the sale of Class
A shares during the year ended October 31, 2017.
G. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the Fund's transfer agent for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
H. Insurance-Linked Securities (ILS)
The Fund invests in event-linked bonds. Event-linked bonds are floating
rate debt obligations for which the return of principal and the payment of
interest are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude. The
trigger event's magnitude may be based on losses to a company or industry,
industry indexes or readings of scientific instruments, or may be based on
specified actual losses. If a trigger event, as defined within the terms of
an event-linked bond occurs, the Fund may lose a portion or all of its
accrued interest and/or principal invested in such event-linked bond. The
Fund is entitled to receive principal and interest payments so long as no
trigger event occurs of the description and magnitude specified by the
instrument. In addition to the
Pioneer Global High Yield Fund | Annual Report | 10/31/17 59
specified trigger events, event-linked bonds may expose the Fund to other
risks, including but not limited to issuer (credit) default, adverse
regulatory or jurisdictional interpretations and adverse tax consequences.
The Fund's investments in ILS may include special purpose vehicles (SPVs)
or similar instruments structured to comprise a portion of a reinsurer's
catastrophe-oriented business, known as quota share instruments (sometimes
referred to as reinsurance sidecars), or to provide reinsurance relating to
specific risks to insurance or reinsurance companies through a
collateralized instrument, known as collateralized reinsurance. Structured
reinsurance investments also may include industry loss warranties (ILWs). A
traditional ILW takes the form of a bilateral reinsurance contract, but
there are also products that take the form of derivatives, collateralized
structures, or exchange traded instruments.
Structured reinsurance investments, including quota share instruments,
collateralized reinsurance investments and ILWs, are subject to the same
risks as event-linked bonds. In addition, where the instruments are based
on the performance of underlying reinsurance contracts, the Fund has
limited transparency into the individual underlying contracts and therefore
must rely upon the risk assessment and sound underwriting practices of the
issuer. Accordingly, it may be more difficult for the Adviser to fully
evaluate the underlying risk profile of the Fund's structured reinsurance
investments and therefore the Fund's assets are placed at greater risk of
loss than if the Adviser had more complete information.
Structured reinsurance instruments generally will be considered illiquid
securities by the Fund. These securities may be difficult to purchase, sell
or unwind. Illiquid securities also may be difficult to value. If the Fund
is forced to sell an illiquid asset, the Fund may be forced to sell at a
loss.
I. Risks
The value of securities held by the Fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's investments in
foreign markets and countries with limited developing markets may subject
the Fund
60 Pioneer Global High Yield Fund | Annual Report | 10/31/17
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. The Fund's prospectus
contains unaudited information regarding the Fund's principal risks. Please
refer to that document when considering the Fund's principal risks.
Interest rates in the U.S. recently have been historically low, so the Fund
faces a heightened risk that interest rates may rise. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions from
the Fund.
Certain securities in which the Fund invests, including floating rate
loans, once sold, may not settle for an extended period (for example,
several weeks or even longer). The Fund will not receive its sale proceeds
until that time, which may constrain the Fund's ability to meet its
obligations (including obligations to redeeming shareholders).
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.
J. Credit Default Swap Contracts
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may sell
or buy credit default swap contracts to seek to increase the Fund's income,
or to attempt to hedge the risk of default on portfolio securities. A
credit default swap index is used to hedge risk or take a position on a
basket of credit entities or indices. As a seller of protection, the Fund
would be required to pay the notional (or other agreed-upon) value of the
referenced debt obligation to the counterparty in the event of a default by
a U.S. or foreign corporate issuer of a debt obligation, which would likely
result in a loss to the Fund. In return, the Fund would receive from the
counterparty a periodic stream of payments during the term of the contract
provided that no event of default occurred. The maximum exposure of loss to
the seller would be the notional value of the credit default swaps
outstanding. If no default occurs, the Fund would keep the stream of
payments and would have no payment obligation. The Fund may also buy credit
default swap contracts in order to hedge against the risk of default of
debt securities, in which case the Fund would function as the counterparty
referenced above.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 61
When the Fund enters into a credit default swap contract, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the right to receive a contingent payment. An upfront payment
made by the Fund, as the protection buyer, is recorded as a component of
unrealized appreciation/depreciation on open swap contracts in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded within "Swap contracts, at value" line item in the Statement of
Assets and Liabilities. Payments received or made as a result of a credit
event or upon termination of the contract are recognized, net of the
appropriate amount of the upfront payment, as realized gains or losses in
the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared swap contracts is recorded as variation margin on
centrally cleared swaps in the Statement of Assets and Liabilities.
The amount of cash deposited with a broker as collateral at October 31,
2017 and is recorded as "Swaps collateral" in the Statement of Assets and
Liabilities.
Open credit default swap contracts at October 31, 2017, are listed in the
Schedule of Investments. The average value of swap contracts open during
the year ended October 31, 2017 was $539,066.
62 Pioneer Global High Yield Fund | Annual Report | 10/31/17
K. Purchased Options
The Fund may purchase put and call options to seek to increase total
return. Purchased call and put options entitle the Fund to buy and sell a
specified number of shares or units of a particular security, currency or
index at a specified price at a specific date or within a specific period
of time. Upon the purchase of a call or put option, the premium paid by the
Fund is included in the Statement of Assets and Liabilities as an
investment. All premiums are marked-to-market daily, and any unrealized
appreciation or depreciation are recorded in the Fund's financial
statements. As the purchaser of an index option, the Fund has the right to
receive a cash payment equal to any depreciation in the value of the index
below the strike price of the option (in the case of a put) or equal to any
appreciation in the value of the index over the strike price of the option
(in the case of a call) as of the valuation date of the option. Premiums
paid for purchased call and put options which have expired are treated as
realized losses on investments in the Statement of Operations. Upon the
exercise or closing of a purchased put option, the premium is offset
against the proceeds on the sale of the underlying security or financial
instrument in order to determine the realized gain or loss on investments.
Upon the exercise or closing of a purchased call option, the premium is
added to the cost of the security or financial instrument. The risk
associated with purchasing options is limited to the premium originally
paid. The average value of contracts open during the year ended October 31,
2017 was $-. Purchased options open at year end are listed in the Fund's
Schedule of Investments.
2. Management Agreement
The Adviser manages the Fund's portfolio. Management fees are calculated daily
at the annual rate of 0.70% of the Fund's average daily net assets up to $500
million; 0.65% of the next $500 million; 0.60% of the next $500 million; 0.55%
of the next $500 million; and 0.45% on assets over $2 billion. For the year
ended October 31, 2017, the effective management fee (excluding waivers and/or
assumption of expenses) was equivalent to 0.69% of the Fund's average daily net
assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected in the Statement of Assets and Liabilities is
$84,012 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at October 31, 2017.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 63
3. Transfer Agent
Boston Financial Data Services serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown in the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings, outgoing phone calls and omnibus
relationship contracts. For the year ended October 31, 2017, such out-of-pocket
expenses by class of shares were as follows:
--------------------------------------------------------------------------------
Shareowner Communications 2017
--------------------------------------------------------------------------------
Class A $28,039
Class C 17,975
Class Y 13,594
--------------------------------------------------------------------------------
Total $59,608
================================================================================
4. Distribution Plan
The Fund has adopted a distribution plan (the Plan) pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A and Class C
shares. Pursuant to the Plan, the Fund pays the Distributor 0.25% of the average
daily net assets attributable to Class A shares as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class A shares. Pursuant to the Plan, the Fund also pays the
Distributor 1.00% of the average daily net assets attributable to Class C
shares. The fee for Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class C shares.
Included in "Due to affiliates" reflected in the Statement of Assets and
Liabilities is $71,524 in distribution fees payable to the Distributor at
October 31, 2017.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00% based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to the
Distributor. For the year ended October 31, 2017, CDSCs in the amount of $5,227
were paid to the Distributor.
64 Pioneer Global High Yield Fund | Annual Report | 10/31/17
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in which the Fund participated until February 9, 2016 was in the
amount of $240 million. The credit facility in which the fund participated until
February 7, 2017 was in the amount of $220 million. Effective February 8, 2017,
the Fund participates in a facility that is in the amount of $195 million. Under
such facility, depending on the type of loan, interest on borrowings is payable
at the London Interbank Offered Rate (LIBOR) plus 0.85% on an annualized basis,
or the Alternate Base Rate, which is the greater of (a) the facility's
administrative agent's daily announced prime rate on the borrowing date, (b) 2%
plus the Federal Funds Rate on the borrowing date or (c) 2% plus the overnight
Eurodollar rate on the borrowing date. The Funds pay an annual commitment fee to
participate in a credit facility.
The commitment fee is allocated among participating Funds based on an allocation
schedule set forth in the credit agreement. For the year ended October 31, 2017,
the Fund had no borrowings under the credit facility.
6. Assets and Liabilities Offsetting
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement (ISDA Master Agreement) or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the trading
of certain Over the Counter (OTC) derivatives and typically contains, among
other things, close-out and set-off provisions which apply upon the occurrence
of an event of default and/or a termination event as defined under the relevant
ISDA Master Agreement. The ISDA Master Agreement may also give a party the right
to terminate all transactions traded under such agreement if, among other
things, there is deterioration in the credit quality of the other party. Upon an
event of default or a termination of the ISDA Master Agreement, the
non-defaulting party has the right to close out all transactions under such
agreement and to net amounts owed under each transaction to determine one net
amount payable by one party to the other. The right to close out and net
payments across all transactions under the ISDA Master Agreement could result in
a reduction of the Fund's credit risk to its counterparty equal to any amounts
payable by the Fund under the applicable transactions, if any. However, the
Fund's right to setoff may be restricted or prohibited by the bankruptcy or
insolvency laws of the particular jurisdiction to which each specific ISDA of
each counterparty is subject.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 65
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collateral pledged for the benefit of the Fund and/or
counterparty is held in segregated accounts by the Fund's custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Fund's collateral obligations, if any, will be
reported separately in the Statement of Assets and Liabilities as "Swaps
collateral". Securities pledged by the Fund as collateral, if any, are
identified as such in the Schedule of Investments.
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have not been offset in the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Fund
as of October 31, 2017.
----------------------------------------------------------------------------------------------------
Derivative Assets Derivatives Non-Cash Cash Net Amount
Subject to Master Available for Collateral Collateral of Derivative
Counterparty Netting Agreement Offset Received (a) Received (a) Assets (b)
----------------------------------------------------------------------------------------------------
Goldman
Sachs
International $155,726 $(31,323) $-- $-- $124,403
JPMorgan
Chase
Bank NA 14,875 -- -- -- 14,875
State Street
Bank and
Trust Co. 4,548 (4,548) -- -- --
----------------------------------------------------------------------------------------------------
Total $175,149 $(35,871) $-- $-- $139,278
====================================================================================================
-----------------------------------------------------------------------------------------------------
Derivative Liabilities Derivatives Non-Cash Cash Net Amount
Subject to Master Available for Collateral Collateral of Derivative
Counterparty Netting Agreement Offset Pledged (a) Pledged (a) Liabilities (c)
-----------------------------------------------------------------------------------------------------
Goldman
Sachs
International $ 31,323 $(31,323) $-- $-- $ --
State Street
Bank and
Trust Co. 36,239 (4,548) -- -- 31,691
-----------------------------------------------------------------------------------------------------
Total $ 67,562 $(35,871) $-- $-- $ 31,691
=====================================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
66 Pioneer Global High Yield Fund | Annual Report | 10/31/17
7. Additional Disclosures about Derivative Instruments and Hedging Activities
The Fund's use of derivatives subjects it to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at October 31,
2017 was as follows:
-----------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Assets and Liabilities Rate Risk Risk Rate Risk Risk Risk
-----------------------------------------------------------------------------------
Assets
Swap contracts, at value $-- $555,688 $ -- $-- $--
-----------------------------------------------------------------------------------
Total Value $-- $555,688 $ -- $-- $--
===================================================================================
Liabilities
Net unrealized depreciation
on forward foreign
currency contracts $-- $ -- $8,873 $-- $--
-----------------------------------------------------------------------------------
Total Value $-- $ -- $8,873 $-- $--
===================================================================================
Pioneer Global High Yield Fund | Annual Report | 10/31/17 67
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) in the Statement of Operations by risk
exposure at October 31, 2017 was as follows:
----------------------------------------------------------------------------------
Foreign
Statement Interest Credit Exchange Equity Commodity
of Operations Rate Risk Risk Rate Risk Risk Risk
----------------------------------------------------------------------------------
Net realized gain (loss) on
Swap contracts $-- $273,221 $ -- $-- $--
Forward foreign
currency contracts -- -- (626,800) -- --
----------------------------------------------------------------------------------
Total Value $-- $273,221 $(626,800) $-- $--
==================================================================================
Change in net unrealized
appreciation
(depreciation) on
Swap contracts $-- $364,805 $ -- $-- $--
Forward foreign
currency contracts -- -- (312,938) -- --
----------------------------------------------------------------------------------
Total Value $-- $364,805 $(312,938) $-- $--
==================================================================================
8. Unfunded Loan Commitments
The Fund may enter into unfunded loan commitments. Unfunded loan commitments may
be partially or wholly unfunded. During the contractual period, the Fund is
obligated to provide funding to the borrower upon demand. A fee is earned by the
Fund on the unfunded commitment and is recorded as interest income in the
Statement of Operations.
As of October 31, 2017, the Fund had the following unfunded loan commitments
outstanding:
--------------------------------------------------------------------------------
Unrealized
Appreciation
Loan Par Cost Value (Depreciation)
--------------------------------------------------------------------------------
Beacon, Roofing
Supply Inc.,
Bridge Loan $ 1,790,000 $ 1,790,000 $ 1,790,000 $--
Centene Corp.,
Bridge Loan 4,490,000 4,490,000 4,490,000 --
Itron, Inc.,
Bridge Loan 1,750,000 1,750,000 1,750,000 --
--------------------------------------------------------------------------------
Total $ 8,030,000 $ 8,030,000 $ 8,030,000 $--
================================================================================
68 Pioneer Global High Yield Fund | Annual Report | 10/31/17
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII and the Shareholders of
Pioneer Global High Yield Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Global High Yield Fund (the "Fund"), one
of the funds constituting Pioneer Series Trust VII (the "Trust"), as of October
31, 2017, and the related statements of operations, changes in net assets and
the financial highlights for the year then ended and the consolidated financial
highlights for the year ended October 31, 2013. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The statement of changes in net assets
for the year ended October 31, 2016 and the financial highlights for periods
ended October 31, 2014, October 31, 2015 and October 31, 2016 were audited by
another independent registered public accounting firm whose report, dated
December 23, 2016, expressed an unqualified opinion on the statement of changes
in net assets and those financial highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
We were not engaged to perform audits of the Fund's internal control over
financial reporting. Our audits included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of October 31, 2017, by correspondence with the
custodian, brokers and others or by other appropriate auditing procedures where
replies from brokers and others were not received. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global High Yield Fund at October 31, 2017, the results of its
operations, the changes in its net assets, and the financial highlights for the
year then ended and the consolidated financial highlights for the year ended
October 31, 2013, in conformity with U.S. generally accepted accounting
principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 26, 2017
Pioneer Global High Yield Fund | Annual Report | 10/31/17 69
Additional Information (unaudited)
The percentages of the Fund's ordinary Income distributions that are exempt from
non resident alien (NRA) tax withholding resulting from qualified interest
income was 57.69%.
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the Adviser), the
Fund's investment adviser, was an indirect, wholly owned subsidiary of UniCredit
S.p.A. (UniCredit). On that date, UniCredit completed the sale of its Pioneer
Investments business, which includes the Adviser, to Amundi (the Transaction).
As a result of the Transaction, the Adviser became an indirect, wholly-owned
subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A. Amundi is
headquartered in Paris, France, and, as of September 30, 2016, had more than
$1.1 trillion in assets under management worldwide.
Deloitte & Touche LLP (D&T), the Fund's previous independent registered public
accounting firm, informed the Audit Committee and the Board that it would no
longer be independent with respect to the Funds upon the completion of the
Transaction as a result of certain services being provided to Amundi and Credit
Agricole, and, accordingly, that it intended to resign as the Fund's independent
registered public accounting firm upon the completion of the Transaction. D&T's
resignation was effective on July 3, 2017, when the Transaction was completed.
During the periods as to which D&T has served as the Fund's independent
registered public accounting firm, including the Fund's two most recent fiscal
years, D&T's reports on the Fund's financial statements have not contained an
adverse opinion or disclaimer of opinion and have not been qualified or modified
as to uncertainty, audit scope or accounting principles. Further, there have
been no disagreements with D&T on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or procedure,
which, if not resolved to the satisfaction of D&T, would have caused D&T to make
reference to the subject matter of the disagreement in connection with its
report on the financial statements. In addition, there have been no reportable
events of the kind described in Item 304(a)(1)(v) of Regulation S-K under the
Securities Exchange Act of 1934.
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
a new independent registered public accounting firm, Ernst & Young LLP (EY).
70 Pioneer Global High Yield Fund | Annual Report | 10/31/17
Prior to its engagement, EY had advised the Fund's Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities and Exchange
Commission (SEC): (a) project management support services to UniCredit in the
Czech Republic, Germany, Italy, Serbia and Slovenia in relation to twenty-two
projects, that were determined to be inconsistent with Rule 2-01(c)(4)(vi) of
Regulation S-X (management functions); (b) two engagements for UniCredit in
Italy where fees were contingent/success based and that were determined to be
inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent fees); (c) four
engagements where legal and expert services were provided to UniCredit in the
Czech Republic and Germany, and twenty engagements where the legal advisory
services were provided to UniCredit in Austria, Czech Republic, Italy and
Poland, that were determined to be inconsistent with Rule 2-01(c)(4)(ix) and (x)
of Regulation S-X (legal and expert services); and (d) two engagements for
UniCredit in Italy involving assistance in the sale of certain assets, that were
determined to be inconsistent with Rule 2-01(c)(4)(viii) of Regulation S-X
(broker-dealer, investment advisor or investment banking services). None of the
foregoing services involved the Fund, any of the other funds in the Pioneer
Family of Funds or any other Pioneer entity sold by UniCredit in the
Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Funds under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Fund, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 71
Results of Shareholder Meeting
At a special meeting held on June 13, 2017, shareholders of the Fund were asked
to consider the proposals described below. A report of the total votes cast by
the Fund's shareholders (or, with respect to Proposal 2, by shareholders of
Pioneer Series Trust VII, as noted below) follows:
------------------------------------------------------------------------------------------------------
For Against Abstain Broker Non-Votes
------------------------------------------------------------------------------------------------------
Proposal 1 - To approve 32,440,760.655 704,624.135 1,221,575.312 10,141,546.600
a New Management
Agreement with
the Adviser
-----------------------------------------------------------------------------------------------------
For Withheld
-----------------------------------------------------------------------------------------------------
Proposal 2 - To elect Trustees*
-----------------------------------------------------------------------------------------------------
David R. Bock 46,356,571.403 1,941,738.750
-----------------------------------------------------------------------------------------------------
Benjamin M. Friedman 46,347,916.283 1,950,393.870
-----------------------------------------------------------------------------------------------------
Margaret B.W. Graham 46,178,367.969 2,119,942.184
-----------------------------------------------------------------------------------------------------
Lisa M. Jones 46,169,721.329 2,128,588.824
-----------------------------------------------------------------------------------------------------
Lorraine H. Monchak 46,201,867.234 2,096,442.919
-----------------------------------------------------------------------------------------------------
Thomas J. Perna 46,378,862.453 1,919,447.700
-----------------------------------------------------------------------------------------------------
Marguerite A. Piret 46,203,924.961 2,094,385.192
-----------------------------------------------------------------------------------------------------
Fred J. Ricciardi 46,378,634.184 1,919,675.969
-----------------------------------------------------------------------------------------------------
Kenneth J. Taubes 46,386,579.585 1,911,730.568
-----------------------------------------------------------------------------------------------------
* Proposal 2 was voted on and approved by all series of Pioneer Series Trust
VII. Results reported above reflect the combined votes of all series of the
Trust.
------------------------------------------------------------------------------------------------------
For Against Abstain Broker Non-Votes
------------------------------------------------------------------------------------------------------
Proposal 3 - To convert 28,127,394.240 4,605,900.479 1,633,648.383 10,141,563.600
investment objective(s)
from fundamental to
non-fundamental
72 Pioneer Global High Yield Fund | Annual Report | 10/31/17
Trustees, Officers and Service Providers
Investment Adviser
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data 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 July 31 is publicly available to shareowners
at www.amundipioneer.com. This information is also available on the Securities
and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations and other directorships they have held during at least the past five
years. Trustees who are interested persons of the Fund within the meaning of the
1940 Act are referred to as Interested Trustees. Trustees who are not interested
persons of the Fund are referred to as Independent Trustees. Each of the
Trustees serves as a Trustee of each of the 46 U.S. registered investment
portfolios for which Amundi Pioneer serves as investment adviser (the "Pioneer
Funds"). The address for all Trustees and all officers of the Fund is 60 State
Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 73
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (67) Trustee since 2006. Private investor (2004 - 2008 and 2013 - Director, Broadridge Financial
Chairman of the Board Serves until a present); Chairman (2008 - 2013) and Chief Solutions, Inc. (investor
and Trustee successor trustee is Executive Officer (2008 - 2012), Quadriserv, communications and securities
elected or earlier Inc. (technology products for securities lending processing provider for
retirement or industry); and Senior Executive Vice President, financial services industry)
removal. The Bank of New York (financial and securities (2009 - present); Director,
services) (1986 - 2004) Quadriserv, Inc. (2005 - 2013);
and Commissioner, New Jersey
State Civil Service Commission
(2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (73) Trustee since 2005. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - Trust (publicly-traded mortgage
successor trustee is 2004 and 2008 - present); Interim Chief REIT) (2004 - 2009, 2012 -
elected or earlier Executive Officer, Oxford Analytica, Inc. present); Director of The Swiss
retirement or (privately held research and consulting company) Helvetia Fund, Inc. (closed-end
removal. (2010); Executive Vice President and Chief fund) (2010 - present);
Financial Officer, I-trax, Inc. (publicly traded Director of Oxford Analytica,
health care services company) (2004 - 2007); and Inc. (2008 - present); and
Executive Vice President and Chief Financial Director of Enterprise
Officer, Pedestal Inc. (internet-based mortgage Community Investment, Inc.
trading company) (2000 - 2002); Private (privately-held affordable
Consultant (1995 - 1997); Managing Director, housing finance company) (1985 -
Lehman Brothers (1992 - 1995); Executive, The 2010)
World Bank (1979 - 1992)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (73) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and
successor trustee is Mellon Institutional Funds
elected or earlier Master Portfolio (oversaw 17
retirement or portfolios in fund complex)
removal. (1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
74 Pioneer Global High Yield Fund | Annual Report | 10/31/17
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (70) Trustee since 2001. Founding Director, Vice-President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee is firm) (1982 - present); Desautels Faculty of
elected or earlier Management, McGill University (1999 - present);
retirement or and Manager of Research Operations and
removal. Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (61) Trustee since 2017. Chief Investment Officer, 1199 SEIU Funds None
Trustee (Advisory Trustee (healthcare workers union pension funds) (2001 -
from 2014 - 2017). present); Vice President - International
Serves until a Investments Group, American International Group,
successor trustee is Inc. (insurance company) (1993 - 2001); Vice
elected or earlier President, Corporate Finance and Treasury Group,
retirement or Citibank, N.A. (1980 - 1986 and 1990 - 1993);
removal. Vice President - Asset/Liability Management
Group, Federal Farm Funding Corporation
(government-sponsored issuer of debt securities)
(1988 - 1990); Mortgage Strategies Group,
Shearson Lehman Hutton, Inc. (investment bank)
(1987 - 1988); Mortgage Strategies Group, Drexel
Burnham Lambert, Ltd. (investment bank) (1986 -
1987)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (69) Trustee since 2001. President and Chief Executive Officer, Newbury Director of New America High
Trustee Serves until a Piret Company (investment banking firm) (1981 - Income Fund, Inc. (closed-end
successor trustee is present) investment company) (2004 -
elected or earlier present); and Member, Board of
retirement or Governors, Investment Company
removal. Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (70) Trustee since 2014. Consultant (investment company services) (2012 - None
Trustee Serves until a present); Executive Vice President, BNY Mellon
successor trustee is (financial and investment company services) (1969
elected or earlier - 2012); Director, BNY International Financing
retirement or Corp. (financial services) (2002 - 2012);
removal. Director, Mellon Overseas Investment Corp.
(financial services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/17 75
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (55)* Trustee since 2017. Chair, Director, CEO and President of Amundi None
Trustee, President and Serves until a Pioneer Asset Management USA, Inc. (since
Chief Executive Officer successor trustee is September 2014); Chair, Director and CEO of
elected or earlier Amundi Pioneer Asset Management, Inc. (since
retirement or removal September 2014); Chair, Director and CEO of
Amundi Pioneer Distributor, Inc. (since
September 2014); Chair, Director, CEO and
President of Amundi Pioneer Institutional Asset
Management, Inc. (since September 2014);
Managing Director, Morgan Stanley Investment
Management (2010 - 2013); Director of
Institutional Business, CEO of International,
Eaton Vance Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (59)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S. (since
successor trustee is 2010) of Amundi Pioneer Asset Management USA,
elected or earlier Inc.; Executive Vice President and Chief
retirement or removal Investment Officer, U.S. of Amundi Pioneer
(since 2008); Executive Vice President of Amundi
Pioneer Institutional Asset Management, Inc.
(since 2009); Portfolio Manager of Amundi
Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers
or directors of the Fund's investment adviser and certain of its affiliates.
76 Pioneer Global High Yield Fund | Annual Report | 10/31/17
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (52) Since 2003. Serves at Vice President and Associate General Counsel of None
Secretary and Chief Legal the discretion of the Amundi Pioneer since January 2008; Secretary and
Officer Board Chief Legal Officer of all of the Pioneer Funds
since June 2010; Assistant Secretary of all of
the Pioneer Funds from September 2003 to May
2010; Vice President and Senior Counsel of
Amundi Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (56) Since 2010. Serves at Fund Governance Director of Amundi Pioneer since None
Assistant Secretary the discretion of the December 2006 and Assistant Secretary of all the
Board Pioneer Funds since June 2010; Manager - Fund
Governance of Amundi Pioneer from December 2003
to November 2006; and Senior Paralegal of Amundi
Pioneer from January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (54) Since 2010. Serves at Senior Counsel of Amundi Pioneer since May 2013 None
Assistant Secretary the discretion of the and Assistant Secretary of all the Pioneer Funds
Board since June 2010; Counsel of Amundi Pioneer from
June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (57) Since 2008. Serves at Vice President - Fund Treasury of Amundi None
Treasurer and Chief the discretion of the Pioneer; Treasurer of all of the Pioneer Funds
Financial Board since March 2008; Deputy Treasurer of Amundi
and Accounting Officer Pioneer from March 2004 to February 2008; and
Assistant Treasurer of all of the Pioneer Funds
from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (52) Since 2001. Serves at Director - Fund Treasury of Amundi Pioneer; and None
Assistant Treasurer the discretion of the Assistant Treasurer of all of the Pioneer Funds
Board
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (59) Since 2002. Serves at Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Amundi Pioneer; and Assistant Treasurer of all
Board of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (37) Since 2009. Serves at Fund Administration Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Amundi Pioneer since November 2008; Assistant
Board Treasurer of all of the Pioneer Funds since
January 2009; Client Service Manager -
Institutional Investor Services at State Street
Bank from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/17 77
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (65) Since 2010. Serves at Chief Compliance Officer of Amundi Pioneer and None
Chief Compliance Officer the discretion of the of all the Pioneer Funds since March 2010; Chief
Board Compliance Officer of Amundi Pioneer
Institutional Asset Management, Inc. since
January 2012; Chief Compliance Officer of
Vanderbilt Capital Advisors, LLC since July
2012: Director of Adviser and Portfolio
Compliance at Amundi Pioneer since October 2005;
Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to
October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (46) Since 2006. Serves at Director - Transfer Agency Compliance of Amundi None
Anti-Money Laundering the discretion of the Pioneer and Anti-Money Laundering Officer of all
Officer Board the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
78 Pioneer Global High Yield Fund | Annual Report | 10/31/17
This page is for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 79
This page is for your notes.
80 Pioneer Global High Yield Fund | Annual Report | 10/31/17
This page is for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 81
This page is for your notes.
82 Pioneer Global High Yield Fund | Annual Report | 10/31/17
This page is for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/17 83
This page is for your notes.
84 Pioneer Global High Yield Fund | Annual Report | 10/31/17
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address us.askamundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2017 Amundi Pioneer Asset Management 19440-11-1217
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
The audit fees for the Trust were $70,000
payable to Ernst & Young LLP for the year ended
October 31, 2017 and $107,389 payable to Deloitte & Touche LLP
for the year ended October 31, 2016.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
There were no audit-related services in 2017 or 2016.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
The tax fees for the Trust were $20,230
payable to Ernst & Young LLP for the year ended
October 31, 2017 and $17,556 payable to Deloitte & Touche LLP
for the year ended October 31, 2016.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
There were no other fees in 2017 or 2016.
(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 Amundi Pioneer Asset Management, Inc, the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Trust's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Trust. For the
years ended October 31 2017 and 2016, there were no
services provided to an affiliate that required the
Trust's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Trust were $20,230
payable to Ernst & Young LLP for the year ended
October 31, 2017 and $17,556 payable to Deloitte & Touche LLP
for the year ended October 31, 2016.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust VII
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 29, 2017
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 29, 2017
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 29, 2017
* Print the name and title of each signing officer under his or her signature.