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, 2017 through October 31, 2018
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Global High
Yield Fund
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Annual Report | October 31, 2018
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Ticker Symbols:
Class A PGHYX
Class C PGYCX
Class Y GHYYX
[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 11
Prices and Distributions 12
Performance Update 13
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 43
Notes to Financial Statements 50
Report of Independent Registered Public Accounting Firm 68
Additional Information 70
Approval of Investment Management Agreement 72
Trustees, Officers and Service Providers 77
Pioneer Global High Yield Fund | Annual Report | 10/31/18 1
President's Letter
Despite economic news that has remained generally positive throughout 2018,
market volatility has increased significantly this year compared with 2017.
October was a particularly poor month for both U.S. and global equity markets,
as every major stock market index finished the month in negative territory.
Results have been more mixed on the fixed-income side, with rising interest
rates pushing down most year-to-date returns.
On the economic front, U.S. gross domestic product (GDP) growth exceeded 4% in
the second quarter of 2018 and topped 3% once again in the third quarter. The
low unemployment rate has continued, with initial jobless claims recently
hitting a multi-decade low and consumer and small-business confidence also
achieving levels not seen in many years.
Despite the good economic news, and even though wages have been rising,
inflation expectations have not risen significantly. For its part, the U.S.
Federal Reserve System (the Fed) has continued with its tightening of monetary
policy by raising interest rates three times in 2018, while moving forward with
the tapering of its balance sheet, a process which began in October 2017.
The greater market volatility this year as compared to last year has been driven
by several factors. The aforementioned rising interest rates have been one
reason, while the uncertainty surrounding U.S. trade policy has, at times, also
led to unsettled markets. Of course, in today's global economy, risk factors
extend well beyond U.S. borders, and in recent months investors have grappled
with various issues on the international front, including questions surrounding
the United Kingdom's Brexit negotiations, concerns about the budgetary policies
of the populist Italian government, and the potential impact of Turkey's
economic challenges on European banks. Moreover, while trade tensions between
the U.S. and Europe have moderated, questions about the future of the U.S./China
trade relationship remain unresolved, and any major fracture in that
relationship could have a negative impact on China's economy and, by extension,
on its Asian trade partners.
With regard to our market outlook, over the medium term, we believe the
fundamental investment case for U.S. equities remains in place, with support
from the fairly positive economic backdrop and with an additional lift
potentially coming from the investment side as U.S. businesses consider
increasing capital expenditures. We do believe market volatility will persist
and, therefore, careful selection of investment themes, sector allocations, and
individual stocks will be increasingly relevant to overall performance, as the
2 Pioneer Global High Yield Fund | Annual Report | 10/31/18
maturity of the economic and market cycles could eventually become headwinds. We
believe a focus on owning shares of quality companies trading at reasonable
prices is key to navigating the current equity-market phase.
In fixed income, we have taken a more cautious approach across our core
portfolios with regard to credit-sensitive debt such as corporate bonds,
favoring quality and liquidity. As interest rates have risen, we find that
short- and intermediate-term U.S. Treasuries have become more attractive, and
that agency mortgage-backed securities (MBS) and high-quality, non-agency MBS
now also offer lower downside risk. In general, we think structured sectors
(such as asset-backed securities and MBS) are more attractive than corporate
sectors.
We believe this year's market fluctuations as well as increased risk factors
within the global economy have served to remind investors of the importance of
active management. Since 1928, active management has been the foundation of
Amundi Pioneer's investment approach. We believe active management is especially
important during periods of volatility, and that our shareowners can benefit
from the experience and tenure of our investment teams, who work collaboratively
to make active and informed decisions across our funds.
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
October 31, 2018
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 3
Portfolio Management Discussion | 10/31/18
In the following interview, Andrew Feltus discusses the market environment and
the performance of Pioneer Global High Yield Fund during the 12-month period
ended October 31, 2018. Mr. Feltus, Managing Director, Co-Director of High
Yield, and a portfolio manager at Amundi Pioneer Asset Management, Inc. ("Amundi
Pioneer") is lead manager of the Fund, which is co-managed by Kenneth J.
Monaghan, Managing Director, Co-Director of High Yield, and a portfolio manager
at Amundi Pioneer.
Q How did the Fund perform during the 12-month period ended October 31, 2018?
A Pioneer Global High Yield Fund's Class A shares returned -1.78% at net
asset value during the 12-month period ended October 31, 2018, 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 -1.92% and 0.86%, respectively. During
the same period, the average return of the 697 mutual funds in
Morningstar's High Yield Bond Funds category was 0.45%.
Q Could you please describe the market environment for global high-yield
investors during the 12-month period ended October 31, 2018?
A The interest-rate environment provided a headwind for bond investors in
general over the period. With inflation approaching its 2% target, the U.S.
Federal Reserve (the Fed) implemented four incremental hikes in its
benchmark overnight lending rate over the 12 months, increasing the upper
target range for the federal funds rate to 2.25%. U.S. Treasury yields rose
across the curve for the period.
Entering the period, credit-oriented areas of the bond market - or
securities susceptible to default risk rather than interest-rate risk -
continued to receive support from positive global economic data. The U.S.
economy posted gross domestic product (GDP) growth in the 3% range over the
final three quarters of 2017, against a backdrop of robust corporate
earnings and arguably full employment. The economies of Europe and Japan
were comfortably in positive territory over that same period as well, while
China continued to report growth in the 7% range. Credit-market sentiment
received an additional boost as 2017 drew to a close with the passage of a
U.S. tax package that included a lowering of the corporate tax rate and a
window during which companies were permitted to accelerate the expensing of
capital investments.
4 Pioneer Global High Yield Fund | Annual Report | 10/31/18
While risk-oriented markets opened 2018 with a positive tenor, volatility
would soon come to the forefront. In January, U.S. employment data
surprised to the upside, leading the market to revise inflation
expectations higher while also raising concerns that the Fed would
accelerate the pace of its expected rate hikes. While sentiment about
inflation stabilized fairly quickly, the markets received another jolt in
March as the Trump administration announced its intention to impose tariffs
on steel and aluminum as well as a wide range of imports from China. The
announcement raised the prospect of a trade war - with the potential to
undermine global economic growth - even as leading indicators in Europe
suggested that the rate of growth had peaked. The Trump administration's
escalating trade rhetoric and continued threats of tariffs on a range of
products from various global trading partners would lead to bouts of market
volatility over the remainder of the period.
April 2018 saw Treasury yields embark on another upward swing in the wake
of the release of the Fed's March meeting minutes, which pointed toward a
consensus among committee members that U.S. inflation was safely headed
toward its target and that there was perhaps room to raise the federal
funds rate more rapidly than previously expected. The ongoing climb in
crude oil prices, which broke through the $50-per-barrel trading range in
late 2017, fueled additional anxiety about inflation and interest rates
among investors, while also promising to largely offset the benefit to
consumers from lower individual U.S. tax rates. The firming outlook for
higher U.S. interest rates led to a significant weakening in the bonds and
currencies of some of the less fundamentally sound emerging markets
issuers, with Turkey and Argentina feeling the most significant effects.
The euro also declined meaningfully versus the U.S. dollar (USD) during the
period, as slowing regional economic growth (in contrast to accelerating
growth in the United States) prompted the European Central Bank (ECB) to
maintain its zero-interest-rate policy and put its potential tightening
cycle on hold into 2019.
Prices of U.S. high-yield securities were supported over the 12-month
period by a continued low default rate relative to historical averages. In
addition, notably lower new-issue supply relative to the same period a year
earlier helped pricing and served as a counterweight against the negative
effects of outflows from high-yield mutual funds. Within the high-yield
market, lower-rated issues outperformed higher-rated credits over the 12
months.
As the period drew to a close in October, however, U.S. high-yield bonds
came under pressure alongside the sharpest one-month decline for the
Standard & Poor's 500 Index since September 2011. Investor sentiment for
riskier assets in October had to contend with an underwhelming start to the
Pioneer Global High Yield Fund | Annual Report | 10/31/18 5
third-quarter corporate earnings season, especially with respect to
technology companies; further deterioration in U.S.-China trade relations;
softening economic growth overseas; Italy's budget crisis; and geopolitical
uncertainty.
Q What were the principal factors that influenced the Fund's benchmark-
relative performance during the 12-month period ended October 31, 2018?
A A cautious stance in the portfolio with respect to the emerging markets
aided the Fund's returns relative to the Bloomberg Barclays Index during
the period. As the emerging markets asset class struggled during April and
May on concerns about rising Treasury yields and USD strength, we further
trimmed the Fund's emerging markets exposure, rather than increasing it due
to the weakness. In particular, we reduced portfolio exposure to non-
USD-denominated debt. The move proved to be beneficial for the Fund's
relative returns as emerging markets currencies headed lower and
performance for the asset class continued to weaken. In addition, the
Fund's underweighting of sovereign issues relative to corporates within the
emerging markets helped relative performance, as sovereign prices were more
negatively affected by rising interest rates. With regard to country
allocation, the Fund's limited exposure to Turkey, which experienced a
currency crisis, and its overweight to Brazil, which elected a president
viewed as pro-growth, helped benchmark-relative returns. In terms of
currency allocations, the portfolio's tactically long exposure to the
Egyptian pound proved beneficial for benchmark-relative results.
While the Fund's emerging markets positioning was a positive contributor to
overall benchmark-relative performance, a portfolio position in the debt of
Russian aluminum producer RUSAL was among the larger individual detractors
from relative returns over the 12 months, as the threat of U.S. sanctions
against Russia weighed heavily on the bond price. We continue to view RUSAL
as a relatively defensive holding, given the company's strong competitive
position, low debt, and cash-rich balance sheet, and so we have maintained
the Fund's position. In fact, the bond price has recovered much of the lost
ground, as the implementation of sanctions has been delayed several times.
With that said, the situation remains unresolved.
Another positive contributor to the Fund's benchmark-relative results
during the period was a portfolio underweight to Europe, as a weakening
euro relative to the USD weighed on returns for that market. In addition,
European high-yield bonds underperformed U.S. high yield, due to low
coupons, slowing economic growth, and the volatile political situation in
Italy. Despite the outperformance of the portfolio's underweight to Europe,
6 Pioneer Global High Yield Fund | Annual Report | 10/31/18
however, two of the biggest individual detractors from the Fund's
benchmark-relative returns during the period were positions in German
value-fashion retailer Takko, and Greece-based gaming company Intralot.
In the U.S., as credit spreads have tightened and the high-yield segment
has outperformed in recent years, we have moved the Fund's portfolio to a
more conservative stance in the high-yield corporate market, underweighting
more speculative bonds in the "CCC" quality range. (Credit spreads are
commonly defined as the differences in yield between Treasuries and other
types of fixed-income securities with similar maturities). The move to a
more conservative U.S. corporate stance proved to be a constraint on the
Fund's benchmark-relative performance over the 12-month period, as
lower-rated U.S. high-yield issues outperformed against a backdrop of low
default rates.
With regard to individual high-yield issues in the portfolio, Bausch
HealthCare (formerly known as Valeant Pharmaceuticals) was a leading
positive contributor to the Fund's relative returns for the period.
Bausch's bond prices improved as the company began to take steps to reduce
its debt, while moving to what we believe is a more sustainable business
model. Exposure to U.S. wireline companies also aided the Fund's relative
performance. In particular, a position in Frontier Communications, a
leading consolidator of legacy landline services, contributed positively. A
position in Windstream Holdings was another outperformer for the Fund,
although to a lesser degree, due to uncertainty concerning an investor law
suit seeking to reverse the spin-off of Windstream's network assets into a
separate publicly-traded real estate investment trust (REIT). We expect
Windstream to be successful in defending the suit, however, and so we have
maintained the Fund's position.
The Fund's overweighting of global energy-related issues benefited
benchmark-relative performance during the 12 months, as the segment was
bolstered by the strength in crude oil prices seen over much of the period.
In that vein, the Fund's exposure to Canadian oil sands firm MEG Energy
contributed positively to relative returns. The bond price rose when MEG
was the subject of a buyout offer, which was rejected. On the other hand, a
Fund position in Argentina's state-controlled energy company YPF acted as a
drag on relative returns, as the peso plunged and spread-widening for the
country's sovereign debt had a negative effect on that market.
Finally, modest out-of-benchmark portfolio positions in leveraged bank
loans and insurance-linked securities (ILS), including so-called "cat
bonds," made positive contributions to the Fund's benchmark-relative
performance. ILS are issued by insurers seeking to mitigate the cost of
post-disaster
Pioneer Global High Yield Fund | Annual Report | 10/31/18 7
claims payouts. We like the floating-rate features of both bank loans and
ILS in a rising-rate environment, as well as their relative lack of
correlation with traditional fixed-income instruments.
Q Did the Fund have any investments in derivative securities during the
12-month period ended October 31, 2018?
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 swaps had a slight positive influence on the
Fund's results. Currency forwards used to manage currency risk in the
portfolio were a small positive contributor as well, as the euro declined
relative to the USD over the 12-month period. We also used options on
currencies to hedge currency risk in the portfolio, which was another
slightly positive performance contributor.
Q Did the Fund's distributions* to shareholders change during the 12-month
period ended October 31, 2018?
A The Fund's distributions declined during the 12-month period as high-yield
bonds outperformed other sectors and credit spreads compressed.
Essentially, as high-yield bond prices rose, 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 We have been somewhat cautious with respect to U.S. high-yield corporates,
although the reversal seen as the Fund's annual reporting period drew to a
close has served to improve the relative value of the market segment. The
yields on offer are attractive, and we find the fundamental outlook
constructive given our baseline scenario of continued U.S. economic
strength over the next few quarters. In addition, the composition of the
high-yield market is healthy, with most issuance in the "BB" range and
limited issuance in support of leveraged buyouts. At the same time, market
volatility is expected to increase as the Fed continues to normalize its
benchmark federal funds rate.
European high-yield valuations appear to be at about average levels
relative to their U.S. counterparts. The quality profile of the European
market is somewhat higher than for U.S. high yield, but weakness in the
euro and slow economic growth in the region has weighed on investor
sentiment. If, as expected, the ECB feels it has room to raise rates in
2019, that would help support the euro and improve the attractiveness of
European bonds. While
* Distributions are not guaranteed.
8 Pioneer Global High Yield Fund | Annual Report | 10/31/18
the emerging markets have been battered recently, we view valuations as
having essentially returned to being in-line with historical averages, and
have maintained the Fund's underweight to that market segment, given the
risks associated with higher U.S. interest rates and USD strength.
In broad terms, the portfolio is overweight the U.S. market, while we have
maintained a conservative stance within high-yield corporates and moderate
exposure to floating-rate issues in the form of bank loans and ILS.
Conversely, the Fund is slightly underweight to Europe and meaningfully
underweight the emerging markets, with a focus on corporates that are less
interest-rate sensitive relative to sovereigns within the latter segment.
We continue to take a measured approach when it comes to adding credit risk
to the portfolio. In addition, we are maintaining a meaningfully below-
benchmark duration in order to position the Fund to take advantage of any
rise in market interest rates, or a widening of credit spreads that results
in valuation opportunities. (Duration is 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.)
Please refer to the Schedule of Investments on pages 18-42 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.
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.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 9
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.
10 Pioneer Global High Yield Fund | Annual Report | 10/31/18
Portfolio Summary | 10/31/18
Portfolio Diversification
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(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Corporate Bonds 78.8%
Foreign Government Bonds 6.8%
Insurance-Linked Securities 5.1%
Senior Secured Floating Rate Loan Interests 3.3%
Convertible Corporate Bonds 1.6%
Convertible Preferred Stocks 1.2%
Collateralized Mortgage Obligations 1.2%
U.S. Government and Agency Obligations 1.1%
Common Stocks 0.6%
Currency Put Options Purchased 0.2%
Asset Backed Security 0.1%
Rights/Warrants 0.0%+
Call Option Purchased 0.0%
+ Amount rounds to less than 0.1%.
Geographical Distribution
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(As a percentage total investments based on country of domicile)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
United States 50.2%
Luxembourg 7.8%
Bermuda 5.1%
Netherlands 4.8%
Argentina 3.8%
Mexico 2.5%
France 2.4%
United Kingdom 2.2%
Cayman Islands 1.8%
Canada 1.5%
Brazil 1.4%
Ireland 1.4%
Turkey 1.2%
Uruguay 1.0%
Nigeria 1.0%
Other (individually less than 1%) 11.9%
10 Largest Holdings
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(As a percentage of total investments)*
1. Nationstar Mortgage LLC/Nationstar Capital Corp., 6.5%, 6/1/22 1.23%
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2. Minerva Luxembourg SA, 5.875%, 1/19/28 (144A) 1.10
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3. Petrobras Global Finance BV, 5.299%, 1/27/25 1.04
--------------------------------------------------------------------------------
4. eDreams ODIGEO SA, 5.5%, 9/1/23 (144A) 0.99
--------------------------------------------------------------------------------
5. Platin 1426 GmbH, 5.375%, 6/15/23 (144A) 0.95
--------------------------------------------------------------------------------
6. Sprint Corp., 7.25%, 9/15/21 0.94
--------------------------------------------------------------------------------
7. YPF SA, 6.95%, 7/21/27 (144A) 0.93
--------------------------------------------------------------------------------
8. Valeant Pharmaceuticals International, Inc., 4.5%, 5/15/23 0.90
--------------------------------------------------------------------------------
9. Rossini S.a.r.l., 6.75%, 10/30/25 (144A) 0.84
--------------------------------------------------------------------------------
10. Frontier Communications Corp., 8.75%, 4/15/22 0.83
--------------------------------------------------------------------------------
* Excludes temporary cash investments and all derivative contracts except for
options purchased. The Fund is actively managed, and current holdings may
be different. The holdings listed should not be considered recommendations
to buy or sell any securities listed.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 11
Prices and Distributions | 10/31/18
Net Asset Value per Share
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--------------------------------------------------------------------------------
Class 10/31/18 10/31/17
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A $8.51 $9.12
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C $8.49 $9.09
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Y $8.36 $8.95
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Distributions per Share: 11/1/17-10/31/18
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--------------------------------------------------------------------------------
Short-Term Long-Term Tax Return
Class Dividends Capital Gains Capital Gains of Capital
--------------------------------------------------------------------------------
A $0.4530 $-- $-- $--
--------------------------------------------------------------------------------
C $0.3882 $-- $-- $--
--------------------------------------------------------------------------------
Y $0.4684 $-- $-- $--
--------------------------------------------------------------------------------
Index Definitions
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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 13-15.
12 Pioneer Global High Yield Fund | Annual Report | 10/31/18
Performance Update | 10/31/18 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Global High Yield Fund at public
offering price during the periods shown, compared to that of the Bloomberg
Barclays Global High Yield Index and the ICE Bank of America (BofA) Merrill
Lynch (ML) U.S. High Yield Index.
Average Annual Total Returns
(As of October 31, 2018)
--------------------------------------------------------------------------------
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 8.93% 8.43% 11.29% 11.16%
5 years 2.37 1.44 3.95 4.69
1 year -1.78 -6.20 -1.92 0.86
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.18%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Bloomberg Barclays ICE BofA
High Yield Global High ML U.S. High
Fund Yield Index Yield Index
10/08 $ 9,550 $10,000 $10,000
10/09 $13,710 $15,521 $14,879
10/10 $16,612 $18,541 $17,745
10/11 $16,694 $19,188 $18,599
10/12 $18,678 $21,947 $21,050
10/13 $19,978 $24,021 $22,908
10/14 $20,666 $25,114 $24,248
10/15 $19,351 $24,599 $23,751
10/16 $20,732 $27,017 $26,165
10/17 $22,873 $29,729 $28,557
10/18 $22,465 $29,158 $28,803
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. POP
returns reflect deduction of maximum 4.50% sales charge. NAV returns would have
been lower had sales charge been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 13
Performance Update | 10/31/18 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Global High Yield Fund during the
periods shown, compared to that of the Bloomberg Barclays Global High Yield
Index and the ICE Bank of America (BofA) Merrill Lynch (ML) U.S. High Yield
Index.
Average Annual Total Returns
(As of October 31, 2018)
--------------------------------------------------------------------------------
BBG ICE
Barclays BofA
Global ML U.S.
High High
If If Yield Yield
Period Held Redeemed Index Index
--------------------------------------------------------------------------------
10 years 8.18% 8.18% 11.29% 11.16%
5 years 1.62 1.62 3.95 4.69
1 year -2.39 -2.39 -1.92 0.86
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.89%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Bloomberg Barclays ICE BofA
High Yield Global High ML U.S. High
Fund Yield Index Yield Index
10/08 $10,000 $10,000 $10,000
10/09 $14,256 $15,521 $14,879
10/10 $17,169 $18,541 $17,745
10/11 $17,147 $19,188 $18,599
10/12 $19,062 $21,947 $21,050
10/13 $20,250 $24,021 $22,908
10/14 $20,746 $25,114 $24,248
10/15 $19,303 $24,599 $23,751
10/16 $20,538 $27,017 $26,165
10/17 $22,481 $29,729 $28,557
10/18 $21,943 $29,158 $28,803
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. NAV returns would have been lower had sales charges
been reflected. All results are historical and assume the reinvestment of
dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
14 Pioneer Global High Yield Fund | Annual Report | 10/31/18
Performance Update | 10/31/18 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Global High Yield Fund during the
periods shown, compared to that of the Bloomberg Barclays Global High Yield
Index and the ICE Bank of America (BofA) Merrill Lynch (ML) U.S. High Yield
Index.
Average Annual Total Returns
(As of October 31, 2018)
--------------------------------------------------------------------------------
BBG ICE
Barclays BofA
Net Global ML U.S.
Asset High High
Value Yield Yield
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 9.20% 11.29% 11.16%
5 years 2.60 3.95 4.69
1 year -1.41 -1.92 0.86
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.91%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global Bloomberg Barclays ICE BofA
High Yield Global High ML U.S. High
Fund Yield Index Yield Index
10/08 $ 5,000,000 $ 5,000,000 $ 5,000,000
10/09 $ 7,188,801 $ 7,760,533 $ 7,439,557
10/10 $ 8,723,329 $ 9,270,489 $ 8,872,338
10/11 $ 8,797,069 $ 9,593,850 $ 9,299,372
10/12 $ 9,883,503 $10,973,337 $10,525,070
10/13 $10,602,383 $12,010,384 $11,454,114
10/14 $10,965,710 $12,557,241 $12,124,214
10/15 $10,299,423 $12,299,317 $11,875,469
10/16 $11,055,425 $13,508,370 $13,082,563
10/17 $12,227,957 $14,864,504 $14,278,411
10/18 $12,055,201 $14,578,873 $14,401,617
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 | 10/31/18 15
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, 2018, through October 31, 2018.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 5/1/18
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,027.73 $ 977.96 $ 983.25
on 10/31/18
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.98 $ 9.47 $ 4.60
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.17%, 1.90%,
and 0.92% multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the partial year period).
16 Pioneer Global High Yield Fund | Annual Report | 10/31/18
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, 2018, through October 31, 2018.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 5/1/18
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,019.31 $1,015.63 $1,020.57
on 10/31/18
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.96 $ 9.65 $ 4.69
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.17%, 1.90%,
and 0.92% multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the partial year period).
Pioneer Global High Yield Fund | Annual Report | 10/31/18 17
Schedule of Investments | 10/31/18
-------------------------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 98.6%
COMMON STOCKS -- 0.6% of Net Assets
CAPITAL GOODS -- 0.0%+
Construction & Engineering -- 0.0%+
6,013,974(a) Abengoa SA, Class B $ 24,496
--------------
Total Capital Goods $ 24,496
-------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.0%+
Homebuilding -- 0.0%+
1,443,476(a) Desarrolladora Homex SAB de CV $ 16,366
--------------
Total Consumer Durables & Apparel $ 16,366
-------------------------------------------------------------------------------------------------------------
ENERGY -- 0.6%
Oil & Gas Exploration & Production -- 0.6%
5,735,146(a)^ Ascent CNR Corp., Class A $ 1,233,056
74,262(a) Frontera Energy Corp. 967,634
1,071(a) Midstates Petroleum Co., Inc. 7,722
--------------
Total Energy $ 2,208,412
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.0%+
Forest Products -- 0.0%+
459,481(a) Emerald Plantation Holdings, Ltd. $ 41,353
--------------
Total Materials $ 41,353
-------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.0%+
Application Software -- 0.0%+
87(a) Avaya Holdings Corp. $ 1,429
--------------
Total Software & Services $ 1,429
-------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $11,921,843) $ 2,292,056
-------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS --
1.2% of Net Assets
BANKS -- 1.2%
Diversified Banks -- 1.2%
1,704(b) Bank of America Corp., 7.25% $ 2,166,295
1,850(b) Wells Fargo & Co., 7.5% 2,353,182
--------------
Total Banks $ 4,519,477
-------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $4,445,787) $ 4,519,477
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global High Yield Fund | Annual Report | 10/31/18
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
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) $ 445,504
--------------
Total Banks $ 445,504
-------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITY
(Cost $450,000) $ 445,504
-------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS --
1.2% of Net Assets
BANKS -- 1.1%
Thrifts & Mortgage Finance -- 1.1%
630,000(c) BAMLL Commercial Mortgage Securities Trust, Series
2016-FR14, Class C, 1.361%, 2/27/48 (144A) $ 576,450
350,000(c) COBALT CMBS Commercial Mortgage Trust, Series 2007-C2,
Class C, 5.646%, 4/15/47 344,313
1,000,000(c) COBALT CMBS Commercial Mortgage Trust, Series 2007-C3,
Class B, 5.82%, 5/15/46 996,576
280,000(c) COBALT CMBS Commercial Mortgage Trust, Series 2007-C3,
Class C, 5.82%, 5/15/46 211,276
750,000(d) Commercial Mortgage Trust, Series 2014-FL5, Class D,
6.28% (1 Month USD LIBOR + 400 bps), 10/15/31 (144A) 730,505
750,000(c) Morgan Stanley Bank of America Merrill Lynch Trust, Series
2014-C17, Class D, 4.703%, 8/15/47 (144A) 674,563
425,000(c) Wells Fargo Commercial Mortgage Trust, Series 2014-LC18,
Class D, 3.957%, 12/15/47 (144A) 373,655
100,000(c) WFRBS Commercial Mortgage Trust, Series 2011-C4,
Class E, 5.231%, 6/15/44 (144A) 95,891
--------------
Total Banks $ 4,003,229
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Diversified Capital Markets -- 0.1%
400,000(c) JP Morgan Chase Commercial Mortgage Securities Trust,
Series 2013-LC11, Class D, 4.163%, 4/15/46 $ 348,933
--------------
Total Diversified Financials $ 348,933
-------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $4,234,928) $ 4,352,162
-------------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS --
1.6% of Net Assets
ENERGY -- 0.4%
Oil & Gas Storage & Transportation -- 0.4%
1,375,000 Golar LNG, Ltd., 2.75%, 2/15/22 $ 1,408,687
--------------
Total Energy $ 1,408,687
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 19
Schedule of Investments | 10/31/18 (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Equipment -- 0.3%
907,000 Wright Medical Group, Inc., 1.625%, 6/15/23 (144A) $ 917,762
--------------
Total Health Care Equipment & Services $ 917,762
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.2%
Construction Materials -- 0.2%
850,000 Cemex SAB de CV, 3.72%, 3/15/20 $ 835,024
-------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.0%+
IDR 11,178,198,000^ PT Bakrie & Brothers Tbk, 0.0% 12/30/99 $ 114,705
--------------
Total Materials $ 949,729
-------------------------------------------------------------------------------------------------------------
MEDIA & ENTERTAINMENT -- 0.2%
Cable & Satellite -- 0.2%
898,000 DISH Network Corp., 2.375%, 3/15/24 $ 753,447
--------------
Total Media & Entertainment $ 753,447
-------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.5%
Biotechnology -- 0.3%
503,000 Alder Biopharmaceuticals, Inc., 2.5%, 2/1/25 $ 460,245
1,020,000 Insmed, Inc., 1.75%, 1/15/25 767,459
--------------
$ 1,227,704
-------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.2%
700,000 Medicines Co., 2.75%, 7/15/23 $ 590,461
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 1,818,165
-------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $6,983,690) $ 5,847,790
-------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 77.4% of Net Assets
AUTOMOBILES & COMPONENTS -- 0.7%
Auto Parts & Equipment -- 0.4%
EUR 1,520,000 Garrett LX I S.a.r.l./Garrett Borrowing LLC, 5.125%,
10/15/26 (144A) $ 1,590,819
-------------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.3%
EUR 919,000 LKQ European Holdings BV, 4.125%, 4/1/28 (144A) $ 1,012,757
--------------
Total Automobiles & Components $ 2,603,576
-------------------------------------------------------------------------------------------------------------
BANKS -- 6.0%
Diversified Banks -- 4.9%
1,150,000 Akbank TAS, 5.125%, 3/31/25 $ 983,970
2,000,000(b)(c) Alfa Bank AO Via Alfa Bond Issuance Plc, 8.0% (5 Year USD
Swap Rate + 666 bps) 1,865,592
ARS 8,000,000(d) Banco de la Ciudad de Buenos Aires, 0.0% (BADLARPP +
399 bps), 12/5/22 167,131
1,175,000(b)(c) Banco do Brasil SA, 9.0% (5 Year CMT Index + 636 bps) 1,216,125
2,200,000(b)(c) Barclays Plc, 7.75% (5 Year USD Swap Rate + 484 bps) 2,194,940
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global High Yield Fund | Annual Report | 10/31/18
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
Diversified Banks (continued)
1,385,000(b)(c) BNP Paribas SA, 7.625% (5 Year USD Swap Rate +
631 bps) (144A) $ 1,438,669
2,635,000(b)(c) ING Groep NV, 6.5% (5 Year USD Swap Rate + 445 bps) 2,504,568
1,910,000(b)(c) Lloyds Banking Group Plc, 7.5% (5 Year USD Swap
Rate + 450 bps) 1,919,550
1,325,000 QNB Finansbank AS, 4.875%, 5/19/22 (144A) 1,223,714
1,773,000(b)(c) Royal Bank of Scotland Group Plc, 8.0% (5 Year USD
Swap Rate + 572 bps) 1,829,514
750,000 Sberbank of Russia Via SB Capital SA, 5.25%,
5/23/23 (144A) 737,550
1,840,000(b)(c) Societe Generale SA, 7.375% (5 Year USD Swap Rate +
624 bps) (144A) 1,865,300
9,000(c) Turkiye Vakiflar Bankasi TAO, 8.0% (5 Year USD Swap
Rate + 585 bps), 11/1/27 (144A) 6,975
--------------
$ 17,953,598
-------------------------------------------------------------------------------------------------------------
Supranational -- 0.2%
290,000 Banque Ouest Africaine de Developpement, 5.0%,
7/27/27 (144A) $ 274,775
ARS 16,270,000(e) European Bank for Reconstruction & Development, 2/1/19 399,721
--------------
$ 674,496
-------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.9%
2,615,000 Financiera Independencia SAB de CV SOFOM ENR, 8.0%,
7/19/24 (144A) $ 2,288,151
1,122,000 Provident Funding Associates LP/PFG Finance Corp.,
6.375%, 6/15/25 (144A) 1,105,170
--------------
$ 3,393,321
--------------
Total Banks $ 22,021,415
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 3.0%
Agricultural & Farm Machinery -- 0.2%
733,000 Titan International, Inc., 6.5%, 11/30/23 $ 683,523
-------------------------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.2%
EUR 705,000 Loxam SAS, 6.0%, 4/15/25 (144A) $ 842,836
-------------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.4%
455,000 Anixter, Inc., 6.0%, 12/1/25 (144A) $ 456,137
765,000 Exterran Energy Solutions LP/EES Finance Corp.,
8.125%, 5/1/25 770,738
--------------
$ 1,226,875
-------------------------------------------------------------------------------------------------------------
Heavy Electrical Equipment -- 0.9%
EUR 3,117,000 Platin 1426 GmbH, 5.375%, 6/15/23 (144A) $ 3,416,519
-------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.1%
405,000 Park-Ohio Industries, Inc., 6.625%, 4/15/27 $ 401,963
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 21
Schedule of Investments | 10/31/18 (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.7%
EUR 1,450,000 Colfax Corp., 3.25%, 5/15/25 (144A) $ 1,640,848
951,000 EnPro Industries, Inc., 5.75%, 10/15/26 (144A) 939,398
--------------
$ 2,580,246
-------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.5%
EUR 1,355,000 Avis Budget Finance Plc, 4.75%, 1/30/26 (144A) $ 1,487,121
460,000 United Rentals North America, Inc., 6.5%, 12/15/26 465,056
--------------
$ 1,952,177
--------------
Total Capital Goods $ 11,104,139
-------------------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 0.8%
Diversified Support Services -- 0.3%
EUR 1,200,000 Novafives SAS, 5.0%, 6/15/25 (144A) $ 1,235,543
-------------------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.5%
957,000 Covanta Holding Corp., 6.0%, 1/1/27 $ 923,505
1,081,000 Tervita Escrow Corp., 7.625%, 12/1/21 (144A) 1,097,215
--------------
$ 2,020,720
--------------
Total Commercial & Professional Services $ 3,256,263
-------------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 2.6%
Homebuilding -- 2.5%
1,000,000 Beazer Homes USA, Inc., 5.875%, 10/15/27 $ 807,500
1,984,000 Beazer Homes USA, Inc., 6.75%, 3/15/25 1,740,960
895,000 KB Home, 7.0%, 12/15/21 928,562
2,079,000 Lennar Corp., 4.75%, 11/15/22 2,058,626
1,050,000 Meritage Homes Corp., 6.0%, 6/1/25 1,021,125
1,625,000 Taylor Morrison Communities, Inc./Taylor Morrison
Holdings II, Inc., 5.875%, 4/15/23 (144A) 1,604,688
1,150,000 TRI Pointe Group, Inc., 5.25%, 6/1/27 981,812
--------------
$ 9,143,273
-------------------------------------------------------------------------------------------------------------
Textiles -- 0.1%
669,000 Grupo Kaltex SA de CV, 8.875%, 4/11/22 (144A) $ 526,343
--------------
Total Consumer Durables & Apparel $ 9,669,616
-------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 4.8%
Casinos & Gaming -- 3.4%
EUR 1,870,000 Codere Finance 2 Luxembourg SA, 6.75%, 11/1/21 (144A) $ 1,994,216
1,330,000 Codere Finance 2 Luxembourg SA, 7.625%, 11/1/21 (144A) 1,217,748
619,000 Eldorado Resorts, Inc., 6.0%, 9/15/26 (144A) 606,249
902,000 Enterprise Development Authority, 12.0%, 7/15/24 (144A) 859,155
575,000 International Game Technology Plc, 6.25%, 1/15/27 (144A) 564,219
EUR 2,125,000 Intralot Capital Luxembourg SA, 5.25%, 9/15/24 (144A) 1,857,052
EUR 1,175,000 LHMC Finco S.a.r.l., 6.25%, 12/20/23 (144A) 1,373,326
EUR 1,124,000 Scientific Games International, Inc., 3.375%,
2/15/26 (144A) 1,177,259
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global High Yield Fund | Annual Report | 10/31/18
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
Casinos & Gaming (continued)
EUR 1,312,000 Scientific Games International, Inc., 5.5%, 2/15/26 (144A) $ 1,280,571
1,481,000 Scientific Games International, Inc., 10.0%, 12/1/22 1,547,645
--------------
$ 12,477,440
-------------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.7%
515,000 Grupo Posadas SAB de CV, 7.875%, 6/30/22 (144A) $ 523,369
2,027,000 Viking Cruises, Ltd., 5.875%, 9/15/27 (144A) 1,920,582
--------------
$ 2,443,951
-------------------------------------------------------------------------------------------------------------
Restaurants -- 0.4%
1,370,000 Golden Nugget, Inc., 8.75%, 10/1/25 (144A) $ 1,407,675
-------------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.3%
1,350,000 Aegea Finance S.a.r.l., 5.75%, 10/10/24 (144A) $ 1,299,388
--------------
Total Consumer Services $ 17,628,454
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 6.1%
Asset Management & Custody Banks -- 0.6%
2,144,000 Banco BTG Pactual SA, 5.5%, 1/31/23 (144A) $ 2,068,981
-------------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.7%
921,000 Alpha Holding SA de CV, 10.0%, 12/19/22 (144A) $ 764,209
1,925,000 Credito Real SAB de CV SOFOM ER, 7.25%,
7/20/23 (144A) 1,920,187
--------------
$ 2,684,396
-------------------------------------------------------------------------------------------------------------
Diversified Capital Markets -- 2.1%
1,500,000 Avation Capital SA, 6.5%, 5/15/21 (144A) $ 1,503,750
759,000(b)(c) Credit Suisse Group AG, 7.125% (5 Year USD Swap
Rate + 511 bps) 770,385
2,230,000 Freedom Mortgage Corp., 8.125%, 11/15/24 (144A) 2,062,750
1,565,000 Freedom Mortgage Corp., 8.25%, 4/15/25 (144A) 1,447,625
1,800,000 Oxford Finance LLC/Oxford Finance Co-Issuer II, Inc.,
6.375%, 12/15/22 (144A) 1,824,750
--------------
$ 7,609,260
-------------------------------------------------------------------------------------------------------------
Specialized Finance -- 2.7%
990,000 BlueLine Rental Finance Corp./BlueLine Rental LLC,
9.25%, 3/15/24 (144A) $ 1,033,312
1,500,000 Cantor Fitzgerald LP, 7.875%, 10/15/19 (144A) 1,555,712
1,185,000 Nationstar Mortgage LLC/Nationstar Capital Corp.,
6.5%, 7/1/21 1,184,372
4,500,000 Nationstar Mortgage LLC/Nationstar Capital Corp.,
6.5%, 6/1/22 4,455,000
1,900,000 Nova Austral SA, 8.25%, 5/26/21 (144A) 1,788,765
--------------
$ 10,017,161
--------------
Total Diversified Financials $ 22,379,798
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 23
Schedule of Investments | 10/31/18 (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
ENERGY -- 14.4%
Integrated Oil & Gas -- 2.7%
289,000 Ascent Resources Utica Holdings LLC/ARU Finance Corp.,
10.0%, 4/1/22 (144A) $ 318,261
1,135,000 Neptune Energy Bondco Plc, 6.625%, 5/15/25 (144A) 1,106,625
3,925,000 Petrobras Global Finance BV, 5.299%, 1/27/25 3,743,469
1,100,000 Petroleum Co. of Trinidad & Tobago, Ltd., 9.75%,
8/14/19 (144A) 1,026,850
3,975,000 YPF SA, 6.95%, 7/21/27 (144A) 3,359,670
ARS 22,125,000 YPF SA, 16.5%, 5/9/22 (144A) 383,646
--------------
$ 9,938,521
-------------------------------------------------------------------------------------------------------------
Oil & Gas Drilling -- 1.3%
2,070,000 Shelf Drilling Holdings, Ltd., 8.25%, 2/15/25 (144A) $ 2,075,175
1,590,000 Transocean, Inc., 7.25%, 11/1/25 (144A) 1,546,275
1,023,000 Trinidad Drilling, Ltd., 6.625%, 2/15/25 (144A) 1,023,000
--------------
$ 4,644,450
-------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 1.1%
1,117,000 Archrock Partners LP/Archrock Partners Finance Corp.,
6.0%, 4/1/21 $ 1,105,830
1,000,000 Archrock Partners LP/Archrock Partners Finance Corp.,
6.0%, 10/1/22 990,000
402,000 Calfrac Holdings LP, 8.5%, 6/15/26 (144A) 361,800
778,000 FTS International, Inc., 6.25%, 5/1/22 742,017
505,000 SESI LLC, 7.75%, 9/15/24 496,162
585,000 Weatherford International LLC, 9.875%, 3/1/25 (144A) 460,688
--------------
$ 4,156,497
-------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 5.4%
1,110,000 Chaparral Energy, Inc., 8.75%, 7/15/23 (144A) $ 1,064,601
167,000 Chesapeake Energy Corp., 8.0%, 12/15/22 (144A) 174,431
901,000 Covey Park Energy LLC/Covey Park Finance Corp., 7.5%,
5/15/25 (144A) 885,232
850,000 Extraction Oil & Gas, Inc., 7.375%, 5/15/24 (144A) 796,875
1,380,000 Great Western Petroleum LLC/Great Western Finance Corp.,
9.0%, 9/30/21 (144A) 1,311,000
1,055,000 Gulfport Energy Corp., 6.0%, 10/15/24 986,425
212,000 Halcon Resources Corp., 6.75%, 2/15/25 192,920
1,040,000 Hilcorp Energy I LP/Hilcorp Finance Co., 5.0%,
12/1/24 (144A) 981,500
1,460,000 MEG Energy Corp., 7.0%, 3/31/24 (144A) 1,434,450
2,165,000 Nostrum Oil & Gas Finance BV, 7.0%, 2/16/25 (144A) 1,742,825
1,965,000 Nostrum Oil & Gas Finance BV, 8.0%, 7/25/22 (144A) 1,685,498
1,434,000 Oasis Petroleum, Inc., 6.875%, 3/15/22 1,442,963
320,000 Parsley Energy LLC/Parsley Finance Corp., 5.25%,
8/15/25 (144A) 309,200
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global High Yield Fund | Annual Report | 10/31/18
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production (continued)
1,460,000 Parsley Energy LLC/Parsley Finance Corp., 5.375%,
1/15/25 (144A) $ 1,430,800
250,000 Parsley Energy LLC/Parsley Finance Corp., 6.25%,
6/1/24 (144A) 256,875
2,727,000 Sanchez Energy Corp., 6.125%, 1/15/23 1,008,990
615,000 Sanchez Energy Corp., 7.25%, 2/15/23 (144A) 563,494
1,873,000 SEPLAT Petroleum Development Co. Plc, 9.25%,
4/1/23 (144A) 1,896,787
150,000 SM Energy Co., 6.125%, 11/15/22 151,875
945,000 SM Energy Co., 6.75%, 9/15/26 947,363
810,000 SRC Energy, Inc., 6.25%, 12/1/25 754,313
--------------
$ 20,018,417
-------------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.6%
1,290,000 Calumet Specialty Products Partners LP/Calumet Finance
Corp., 6.5%, 4/15/21 $ 1,238,400
528,421(d) EP PetroEcuador via Noble Sovereign Funding I, Ltd.,
8.016% (3 Month USD LIBOR + 563 bps), 9/24/19 527,100
415,000 PBF Holding Co., LLC/PBF Finance Corp., 7.0%, 11/15/23 429,069
--------------
$ 2,194,569
-------------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 3.3%
52,000 American Midstream Partners LP/American Midstream
Finance Corp., 9.5%, 12/15/21 (144A) $ 50,960
1,233,000 Cheniere Corpus Christi Holdings LLC, 5.125%, 6/30/27 1,208,340
955,000 Cheniere Energy Partners LP, 5.25%, 10/1/25 937,094
1,500,000 Delek Logistics Partners LP, 6.75%, 5/15/25 1,485,000
868,000 Energy Transfer Equity LP, 5.5%, 6/1/27 882,365
1,085,000 Energy Transfer Equity LP, 5.875%, 1/15/24 1,140,606
1,110,000 Genesis Energy LP/Genesis Energy Finance Corp.,
6.25%, 5/15/26 1,001,775
1,395,000 Genesis Energy LP/Genesis Energy Finance Corp.,
6.5%, 10/1/25 1,286,887
1,820,000 Global Partners LP/GLP Finance Corp., 7.0%, 6/15/23 1,813,175
1,000,000(d) Golar LNG Partners LP, 8.564% (3 Month USD LIBOR +
625 bps), 5/18/21 (144A) 1,002,507
1,350,000 Targa Resources Partners LP/Targa Resources Partners
Finance Corp., 4.25%, 11/15/23 1,294,718
--------------
$ 12,103,427
--------------
Total Energy $ 53,055,881
-------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.3%
Food Retail -- 0.3%
1,285,000 C&S Group Enterprises LLC, 5.375%, 7/15/22 (144A) $ 1,240,025
--------------
Total Food & Staples Retailing $ 1,240,025
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 25
Schedule of Investments | 10/31/18 (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.0%
Packaged Foods & Meats -- 3.8%
735,000(f) CFG Investment SAC, 9.75%, 7/30/19 (144A) $ 769,912
700,000 JBS Investments GmbH, 7.25%, 4/3/24 (144A) 706,650
275,000 JBS Investments II GmbH, 7.0%, 1/15/26 (144A) 271,562
2,135,000 JBS USA LUX SA/JBS USA Finance, Inc., 5.75%,
6/15/25 (144A) 2,049,600
2,350,000 JBS USA LUX SA/JBS USA Finance, Inc., 6.75%,
2/15/28 (144A) 2,264,813
4,591,000 Minerva Luxembourg SA, 5.875%, 1/19/28 (144A) 3,969,838
1,560,000 Minerva Luxembourg SA, 6.5%, 9/20/26 (144A) 1,441,050
2,075,000 Pesquera Exalmar SAA, 7.375%, 1/31/20 (144A) 2,059,438
484,000 Pilgrim's Pride Corp., 5.875%, 9/30/27 (144A) 438,020
--------------
$ 13,970,883
-------------------------------------------------------------------------------------------------------------
Tobacco -- 0.2%
535,000 Alliance One International, Inc., 8.5%, 4/15/21 (144A) $ 549,712
--------------
Total Food, Beverage & Tobacco $ 14,520,595
-------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.5%
Health Care Facilities -- 1.0%
495,000 CHS/Community Health Systems, Inc., 6.25%, 3/31/23 $ 455,251
1,887,000 Rede D'or Finance S.a.r.l., 4.95%, 1/17/28 (144A) 1,668,599
1,430,000 Team Health Holdings, Inc., 6.375%, 2/1/25 (144A) 1,233,375
155,000 Universal Hospital Services, Inc., 7.625%, 8/15/20 155,194
--------------
$ 3,512,419
-------------------------------------------------------------------------------------------------------------
Managed Health Care -- 0.5%
1,050,000 Centene Corp., 5.625%, 2/15/21 $ 1,065,750
755,000 WellCare Health Plans, Inc., 5.25%, 4/1/25 753,112
--------------
$ 1,818,862
--------------
Total Health Care Equipment & Services $ 5,331,281
-------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.4%
Household Cleaning Supplies -- 0.4%
EUR 1,400,000 Diamond BC BV, 5.625%, 8/15/25 (144A) $ 1,489,787
--------------
Total Household & Personal Products $ 1,489,787
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 8.0%
Aluminum -- 0.8%
900,000 Novelis Corp., 5.875%, 9/30/26 (144A) $ 848,250
375,000 Rusal Capital, DAC, 4.85%, 2/1/23 (144A) 255,000
2,650,000 Rusal Capital, DAC, 5.125%, 2/2/22 (144A) 1,802,000
--------------
$ 2,905,250
-------------------------------------------------------------------------------------------------------------
Commodity Chemicals -- 0.1%
603,000 Hexion, Inc., 6.625%, 4/15/20 $ 533,655
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global High Yield Fund | Annual Report | 10/31/18
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
Construction Materials -- 0.3%
EUR 1,090,000 Cemex SAB de CV, 2.75%, 12/5/24 (144A) $ 1,201,240
-------------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 1.4%
1,275,000 Braskem Netherlands Finance BV, 4.5%, 1/10/28 (144A) $ 1,184,475
EUR 1,335,000 Kraton Polymers LLC/Kraton Polymers Capital Corp.,
5.25%, 5/15/26 (144A) 1,457,619
2,750,000 Nufarm Australia, Ltd./Nufarm Americas, Inc., 5.75%,
4/30/26 (144A) 2,567,812
--------------
$ 5,209,906
-------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.6%
810,000 Ausdrill Finance Pty, Ltd., 6.875%, 11/1/19 (144A) $ 810,000
931,000 Hudbay Minerals, Inc., 7.25%, 1/15/23 (144A) 926,345
80,000 Nexa Resources SA, 5.375%, 5/4/27 (144A) 77,801
1,218,000 Rain CII Carbon LLC/CII Carbon Corp., 7.25%,
4/1/25 (144A) 1,227,135
500,000 Vedanta Resources Plc, 6.375%, 7/30/22 (144A) 467,750
2,045,000 Vedanta Resources Plc, 8.25%, 6/7/21 (144A) 2,078,742
--------------
$ 5,587,773
-------------------------------------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.2%
EUR 729,000 OCI NV, 5.0%, 4/15/23 (144A) $ 866,068
-------------------------------------------------------------------------------------------------------------
Forest Products -- 0.4%
1,405,000 Eldorado Intl. Finance GmbH, 8.625%, 6/16/21 (144A) $ 1,458,741
-------------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 0.8%
EUR 700,000(g) ARD Finance SA, 6.625% (7.375% PIK
0.0% cash), 9/15/23 $ 786,471
EUR 410,000 Ardagh Packaging Finance Plc/Ardagh Holdings USA, Inc.,
6.75%, 5/15/24 (144A) 491,752
630,000 Ardagh Packaging Finance Plc/Ardagh Holdings USA, Inc.,
7.25%, 5/15/24 (144A) 633,150
EUR 890,000 Crown European Holdings SA, 2.875%, 2/1/26 (144A) 984,333
--------------
$ 2,895,706
-------------------------------------------------------------------------------------------------------------
Paper Products -- 0.3%
1,014,000 Schweitzer-Mauduit International, Inc., 6.875%,
10/1/26 (144A) $ 1,026,675
-------------------------------------------------------------------------------------------------------------
Silver -- 0.3%
1,040,000 Coeur Mining, Inc., 5.875%, 6/1/24 $ 988,000
-------------------------------------------------------------------------------------------------------------
Steel -- 1.8%
770,000 Commercial Metals Co., 5.375%, 7/15/27 $ 713,213
618,000 Commercial Metals Co., 5.75%, 4/15/26 (144A) 593,280
2,848,000 Metinvest BV, 7.75%, 4/23/23 (144A) 2,734,080
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 27
Schedule of Investments | 10/31/18 (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
Steel (continued)
670,000 SunCoke Energy Partners LP/SunCoke Energy Partners
Finance Corp., 7.5%, 6/15/25 (144A) $ 681,725
2,142,000 United States Steel Corp., 6.25%, 3/15/26 2,018,835
--------------
$ 6,741,133
--------------
Total Materials $ 29,414,147
-------------------------------------------------------------------------------------------------------------
MEDIA & ENTERTAINMENT -- 3.3%
Advertising -- 0.5%
2,420,000 MDC Partners, Inc., 6.5%, 5/1/24 (144A) $ 1,984,400
-------------------------------------------------------------------------------------------------------------
Broadcasting -- 0.2%
650,000 Sinclair Television Group, Inc., 5.875%, 3/15/26 (144A) $ 619,125
-------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 2.0%
320,000 Altice Financing SA, 6.625%, 2/15/23 (144A) $ 316,736
1,000,000 Altice France SA, 6.25%, 5/15/24 (144A) 958,750
1,047,000 Altice France SA, 8.125%, 2/1/27 (144A) 1,036,530
1,900,000 CCO Holdings LLC/CCO Holdings Capital Corp., 5.125%,
5/1/27 (144A) 1,788,375
575,000 CSC Holdings LLC, 5.5%, 4/15/27 (144A) 552,000
1,000,000 Videotron, Ltd., 5.375%, 6/15/24 (144A) 998,750
EUR 1,600,000 Ziggo Secured Finance BV, 4.25%, 1/15/27 (144A) 1,792,154
--------------
$ 7,443,295
-------------------------------------------------------------------------------------------------------------
Internet Media -- 0.3%
979,000 Netflix, Inc., 4.375%, 11/15/26 $ 899,456
-------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.3%
GBP 900,000 AMC Entertainment Holdings, Inc., 6.375%, 11/15/24 $ 1,149,389
--------------
Total Media & Entertainment $ 12,095,665
-------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 3.1%
Pharmaceuticals -- 3.1%
2,271,000 Endo Finance LLC/Endo Finco, Inc., 5.375%,
1/15/23 (144A) $ 1,936,028
750,000 Horizon Pharma, Inc., 6.625%, 5/1/23 755,625
EUR 2,630,000 Rossini S.a.r.l., 6.75%, 10/30/25 (144A) 3,027,788
EUR 2,975,000 Valeant Pharmaceuticals International, Inc., 4.5%, 5/15/23 3,256,801
1,062,000 Valeant Pharmaceuticals International, Inc., 5.875%,
5/15/23 (144A) 1,012,883
565,000 Valeant Pharmaceuticals International, Inc., 6.5%,
3/15/22 (144A) 584,775
755,000 Valeant Pharmaceuticals International, Inc., 7.0%,
3/15/24 (144A) 790,628
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 11,364,528
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global High Yield Fund | Annual Report | 10/31/18
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.9%
Specialized REIT -- 0.9%
EUR 1,140,000 Equinix, Inc., 2.875%, 2/1/26 $ 1,257,607
1,970,000 Uniti Group LP/Uniti Group Finance, Inc./CSL Capital LLC,
6.0%, 4/15/23 (144A) 1,891,200
--------------
Total Real Estate $ 3,148,807
-------------------------------------------------------------------------------------------------------------
RETAILING -- 1.9%
Department Stores -- 0.7%
EUR 1,060,000 El Corte Ingles SA, 3.0%, 3/15/24 (144A) $ 1,204,993
525,000 JC Penney Corp., Inc., 5.875%, 7/1/23 (144A) 454,125
EUR 1,025,000 Takko Lux 2 SCA, 5.375%, 11/15/23 (144A) 843,708
--------------
$ 2,502,826
-------------------------------------------------------------------------------------------------------------
Internet & Direct Marketing Retail -- 1.0%
EUR 3,165,000 eDreams ODIGEO SA, 5.5%, 9/1/23 (144A) $ 3,589,992
-------------------------------------------------------------------------------------------------------------
Specialty Stores -- 0.2%
1,217,000 PetSmart, Inc., 5.875%, 6/1/25 (144A) $ 949,260
--------------
Total Retailing $ 7,042,078
-------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.5%
Data Processing & Outsourced Services -- 1.9%
EUR 1,250,000 Alliance Data Systems Corp., 4.5%, 3/15/22 (144A) $ 1,432,000
1,765,000 Alliance Data Systems Corp., 5.875%, 11/1/21 (144A) 1,795,534
3,100,000 Cardtronics, Inc., 5.125%, 8/1/22 2,976,000
860,000 Cardtronics, Inc./Cardtronics USA, Inc., 5.5%,
5/1/25 (144A) 799,800
--------------
$ 7,003,334
-------------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.6%
1,149,000 Rackspace Hosting, Inc., 8.625%, 11/15/24 (144A) $ 1,080,060
979,000 Verscend Escrow Corp., 9.75%, 8/15/26 (144A) 981,448
--------------
$ 2,061,508
--------------
Total Software & Services $ 9,064,842
-------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.4%
Electronic Components -- 1.4%
EUR 1,505,000 Belden, Inc., 2.875%, 9/15/25 (144A) $ 1,664,416
EUR 815,000 Belden, Inc., 3.375%, 7/15/27 (144A) 885,210
EUR 2,250,000 Belden, Inc., 3.875%, 3/15/28 (144A) 2,459,207
--------------
Total Technology Hardware & Equipment $ 5,008,833
-------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 5.3%
Wireless Telecommunication Services -- 3.2%
600,000 Altice Finco SA, 8.125%, 1/15/24 (144A) $ 589,500
2,820,000 Digicel, Ltd., 6.0%, 4/15/21 (144A) 2,559,150
2,425,000 MTN Mauritius Investment, Ltd., 5.373%, 2/13/22 (144A) 2,328,970
3,235,000 Sprint Corp., 7.25%, 9/15/21 3,380,575
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 29
Schedule of Investments | 10/31/18 (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services (continued)
155,000 T-Mobile USA, Inc., 6.0%, 4/15/24 $ 158,875
2,750,000 Unison Ground Lease Funding LLC, 5.78%, 3/15/20 (144A) 2,729,365
--------------
$ 11,746,435
-------------------------------------------------------------------------------------------------------------
Wireline -- 2.1%
1,267,000 CenturyLink, Inc., 5.625%, 4/1/25 $ 1,216,320
3,875,000 Frontier Communications Corp., 8.75%, 4/15/22 3,012,812
775,000 Frontier Communications Corp., 11.0%, 9/15/25 567,688
2,100,000 Windstream Services LLC/Windstream Finance Corp.,
8.625%, 10/31/25 (144A) 1,963,500
1,889,000 Windstream Services LLC/Windstream Finance Corp.,
8.75%, 12/15/24 (144A) 916,165
--------------
$ 7,676,485
--------------
Total Telecommunication Services $ 19,422,920
-------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.3%
Air Freight & Logistics -- 1.2%
2,645,000 Hidrovias International Finance S.a.r.l., 5.95%,
1/24/25 (144A) $ 2,453,238
MXN 19,000,000 Red de Carreteras de Occidente SAPIB de CV, 9.0%,
6/10/28 (144A) 875,716
920,000 Rumo Luxembourg S.a.r.l., 7.375%, 2/9/24 (144A) 952,200
--------------
$ 4,281,154
-------------------------------------------------------------------------------------------------------------
Airlines -- 0.6%
758,238 Guanay Finance, Ltd., 6.0%, 12/15/20 (144A) $ 762,029
1,585,000 Latam Finance, Ltd., 6.875%, 4/11/24 (144A) 1,542,998
--------------
$ 2,305,027
-------------------------------------------------------------------------------------------------------------
Marine -- 0.5%
1,725,000 Navios South American Logistics, Inc./Navios Logistics
Finance US, Inc., 7.25%, 5/1/22 (144A) $ 1,604,250
-------------------------------------------------------------------------------------------------------------
Trucking -- 0.0%+
2,905,025(f) Inversiones Alsacia SA, 8.0%, 12/31/18 (144A) $ 84,565
--------------
Total Transportation $ 8,274,996
-------------------------------------------------------------------------------------------------------------
UTILITIES -- 4.1%
Electric Utilities -- 2.0%
1,150,000 Cemig Geracao e Transmissao SA, 9.25%, 12/5/24 (144A) $ 1,227,855
587,000 Clearway Energy Operating LLC, 5.75%, 10/15/25 (144A) 578,195
425,000(b)(c) Electricite de France SA, 5.25% (10 Year USD Swap
Rate + 371 bps) (144A) 411,719
1,120,000 Genneia SA, 8.75%, 1/20/22 (144A) 1,041,611
2,650,000 Light Servicos de Eletricidade SA/Light Energia SA, 7.25%,
5/3/23 (144A) 2,583,776
1,088,887 Stoneway Capital Corp., 10.0%, 3/1/27 (144A) 1,012,676
581,000 Vistra Operations Co. LLC, 5.5%, 9/1/26 (144A) 572,285
--------------
$ 7,428,117
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global High Yield Fund | Annual Report | 10/31/18
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.5%
2,175,000 Ferrellgas LP/Ferrellgas Finance Corp., 6.75%, 6/15/23 $ 1,875,938
-------------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Traders -- 1.1%
2,029,000 Calpine Corp., 5.75%, 1/15/25 $ 1,813,013
1,100,000 Talen Energy Supply LLC, 4.6%, 12/15/21 1,031,250
940,000 TerraForm Power Operating LLC, 4.25%, 1/31/23 (144A) 890,650
393,000 TerraForm Power Operating LLC, 5.0%, 1/31/28 (144A) 351,244
--------------
$ 4,086,157
-------------------------------------------------------------------------------------------------------------
Pipeline -- 0.5%
710,000 DCP Midstream Operating LP, 5.375%, 7/15/25 $ 719,975
1,033,000 DCP Midstream Operating LP, 5.6%, 4/1/44 934,865
--------------
$ 1,654,840
--------------
Total Utilities $ 15,045,052
-------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $304,175,047) $ 284,182,698
-------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 6.7% of Net Assets
Angola -- 0.3%
1,132,000 Angolan Government International Bond, 8.25%,
5/9/28 (144A) $ 1,130,857
-------------------------------------------------------------------------------------------------------------
Argentina -- 2.1%
1,125,000 Argentine Republic Government International Bond,
6.875%, 1/26/27 $ 936,562
1,850,000 Argentine Republic Government International Bond,
7.5%, 4/22/26 1,614,125
2,250,000 Autonomous City of Buenos Aires Argentina, 7.5%,
6/1/27 (144A) 1,966,500
585,040 Province of Salta Argentina, 9.5%, 3/16/22 (144A) 566,758
1,840,000 Provincia de Entre Rios Argentina, 8.75%, 2/8/25 (144A) 1,407,968
1,665,000 Provincia del Chubut Argentina, 7.75%, 7/26/26 (144A) 1,319,846
--------------
$ 7,811,759
-------------------------------------------------------------------------------------------------------------
Bahrain -- 0.5%
1,880,000 Bahrain Government International Bond, 7.0%,
10/12/28 (144A) $ 1,835,143
-------------------------------------------------------------------------------------------------------------
Cote D'Ivoire -- 0.2%
EUR 725,000 Ivory Coast Government International Bond, 5.125%,
6/15/25 (144A) $ 806,602
-------------------------------------------------------------------------------------------------------------
Dominican Republic -- 0.3%
DOP 57,750,000 Dominican Republic International Bond, 8.9%,
2/15/23 (144A) $ 1,141,735
-------------------------------------------------------------------------------------------------------------
Ecuador -- 0.2%
560,000 Ecuador Government International Bond, 10.5%,
3/24/20 (144A) $ 574,000
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 31
Schedule of Investments | 10/31/18 (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
Kenya -- 0.3%
1,150,000 Kenya Government International Bond, 7.25%,
2/28/28 (144A) $ 1,084,565
-------------------------------------------------------------------------------------------------------------
Nigeria -- 0.5%
1,845,000 Africa Finance Corp., 4.375%, 4/29/20 (144A) $ 1,842,491
-------------------------------------------------------------------------------------------------------------
Oman -- 0.4%
1,510,000 Oman Government International Bond, 5.375%,
3/8/27 (144A) $ 1,421,665
-------------------------------------------------------------------------------------------------------------
Sri Lanka -- 0.3%
1,175,000 Sri Lanka Government International Bond, 5.75%,
4/18/23 (144A) $ 1,056,123
-------------------------------------------------------------------------------------------------------------
Turkey -- 0.6%
2,550,000 Turkey Government International Bond, 3.25%, 3/23/23 $ 2,186,625
-------------------------------------------------------------------------------------------------------------
Ukraine -- 0.4%
1,375,000 Ukraine Government International Bond, 8.994%, 2/1/24 $ 1,362,969
-------------------------------------------------------------------------------------------------------------
Uruguay -- 0.6%
UYU 38,800,000 Uruguay Government International Bond, 8.5%,
3/15/28 (144A) $ 1,010,632
UYU 37,635,000 Uruguay Government International Bond, 9.875%,
6/20/22 (144A) 1,128,190
--------------
$ 2,138,822
-------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $26,692,831) $ 24,393,356
-------------------------------------------------------------------------------------------------------------
INSURANCE-LINKED SECURITIES --
5.0% of Net Assets(1)
CATASTROPHE LINKED BONDS -- 1.3%
Earthquakes - California -- 0.2%
600,000(d) Ursa Re 2017-1, 6.0% (ZERO + 600 bps), 5/27/20 (144A) $ 603,960
250,000(d) Ursa Re 2017-2, 5.25% (3 Month U.S. Treasury Bill +
525 bps), 12/10/20 (144A) 251,050
--------------
$ 855,010
-------------------------------------------------------------------------------------------------------------
Earthquakes - Mexico -- 0.1%
250,000(d) International Bank for Reconstruction & Development,
10.364% (3 Month USD LIBOR + 825 bps), 2/14/20 (144A) $ 249,420
-------------------------------------------------------------------------------------------------------------
Earthquakes - Peru -- 0.1%
250,000(d) International Bank for Reconstruction & Development,
8.114% (3 Month USD LIBOR + 600 bps), 2/15/21 (144A) $ 252,375
-------------------------------------------------------------------------------------------------------------
Multiperil - U.S. -- 0.5%
500,000(d) Caelus Re V, 2.83% (1 Month U.S. Treasury Bill + 50 bps),
6/5/20 (144A) $ 50
250,000(d) Caelus Re V, 9.83% (3 Month U.S. Treasury Bill + 750 bps),
6/7/21 (144A) 250,975
500,000(d) Kilimanjaro II Re, 11.791% (6 Month USD LIBOR +
949 bps), 4/20/21 (144A) 503,250
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global High Yield Fund | Annual Report | 10/31/18
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
Multiperil - U.S. (continued)
400,000(d) Northshore Re II 2017 A, 9.54% (3 Month U.S. Treasury
Bill + 721 bps), 7/6/20 (144A) $ 405,000
500,000(d) Residential Reinsurance 2016, 7.525% (3 Month U.S.
Treasury Bill + 520 bps), 12/6/20 (144A) 503,850
250,000(d) Tailwind Re 2017-1, 13.33% (3 Month U.S. Treasury Bill +
1,100 bps), 1/8/22 (144A) 255,375
--------------
$ 1,918,500
-------------------------------------------------------------------------------------------------------------
Multiperil - Worldwide -- 0.3%
300,000(d) Galilei Re, 7.63% (6 Month USD LIBOR + 545 bps),
1/8/20 (144A) $ 300,990
300,000(d) Galilei Re, 8.71% (6 Month USD LIBOR + 653 bps),
1/8/20 (144A) 299,940
300,000(d) Galilei Re, 8.73% (6 Month USD LIBOR + 653 bps),
1/8/21 (144A) 300,510
250,000(d) Galilei Re, 10.59% (6 Month USD LIBOR + 841 bps),
1/8/20 (144A) 251,525
--------------
$ 1,152,965
-------------------------------------------------------------------------------------------------------------
Pandemic - Worldwide -- 0.1%
250,000(d) International Bank for Reconstruction & Development,
14.135% (6 Month USD LIBOR + 1,150 bps),
7/15/20 (144A) $ 235,550
--------------
Total Catastrophe Linked Bonds $ 4,663,820
-------------------------------------------------------------------------------------------------------------
COLLATERALIZED REINSURANCE -- 1.3%
Earthquakes - California -- 0.1%
400,000+(h) Resilience Re, Variable Rate Notes, 1/8/19 (144A) $ 400,000
-------------------------------------------------------------------------------------------------------------
Multiperil - U.S. -- 0.0%+
300,000+(h) Kingsbarns Re 2017, Variable Rate Notes, 5/15/19 $ 45,960
-------------------------------------------------------------------------------------------------------------
Multiperil - Worldwide -- 0.9%
345,430+(h) Clarendon Re 2018, Variable Rate Notes, 1/15/19 $ 300,351
600,000+(h) Cypress Re 2017, Variable Rate Notes, 1/10/19 274,560
300,442+(h) Dartmouth Re 2018, Variable Rate Notes, 1/15/19 244,079
389,876+(h) Gloucester Re 2018, Variable Rate Notes, 1/15/19 288,859
326,836+(h) Kilarney Re 2018, Variable Rate Notes, 4/15/19 310,985
250,000+(h) Limestone Re, Variable Rate Notes, 8/31/21 248,025
250,000+(h) Limestone Re, Variable Rate Notes, 8/31/21 248,025
250,000+(h) Merion Re 2018, Variable Rate Notes, 12/31/21 244,945
250,000+(h) Old Head Re 2018, Variable Rate Notes, 12/31/21 247,822
277,770+(h) Oyster Bay Re 2018, Variable Rate Notes, 1/15/19 244,382
250,000+(h) Resilience Re, Variable Rate Notes, 4/8/19 248,975
400,000+(h) Resilience Re, Variable Rate Notes, 5/1/19 4,000
283,700+(h) Seminole Re 2018, Variable Rate Notes, 1/15/19 244,039
276,582+(h) Walton Health Re 2018, Variable Rate Notes, 6/15/19 220,795
250,000+(h) Wentworth Re 2017, Variable Rate Notes, 7/13/19 61,575
--------------
$ 3,431,417
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 33
Schedule of Investments | 10/31/18 (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
Windstorm - Florida -- 0.2%
250,000+(h) Formby Re 2018, Variable Rate Notes, 6/15/19 $ 256,175
86,906+(h) Formby Re 2018-2, Variable Rate Notes, 12/31/18 85,003
300,000+(h) Portrush Re 2017, Variable Rate Notes, 6/15/19 239,040
--------------
$ 580,218
-------------------------------------------------------------------------------------------------------------
Windstorm - U.S. Regional -- 0.1%
250,000+(h) Oakmont Re 2017, Variable Rate Notes, 4/15/19 $ 2,875
250,000+(h) Promissum Re 2018, Variable Rate Notes, 6/15/19 244,075
--------------
$ 246,950
--------------
Total Collateralized Reinsurance $ 4,704,545
-------------------------------------------------------------------------------------------------------------
INDUSTRY LOSS WARRANTIES -- 0.2%
Multiperil - U.S. -- 0.2%
300,000+(h) Cypress Re 2018, Variable Rate Notes, 1/15/19 $ 295,743
600,000+(h) Pinehurst Re 2018-1, Variable Rate Notes, 1/15/19 598,380
--------------
Total Industry Loss Warranties $ 894,123
-------------------------------------------------------------------------------------------------------------
REINSURANCE SIDECARS -- 2.2%
Multiperil - U.S. -- 0.4%
3,900,000+(h) Carnoustie Re 2015, Variable Rate Notes, 1/7/19 $ 12,480
2,600,000+(h) Carnoustie Re 2016, Variable Rate Notes, 11/30/20 70,200
800,000+(h) Carnoustie Re 2017, Variable Rate Notes, 11/30/21 203,360
250,000+(h) Carnoustie Re 2018, Variable Rate Notes, 12/31/21 279,145
1,000,000+(h) Harambee Re 2018, Variable Rate Notes, 12/31/21 1,072,700
1,300,000+(h) Prestwick Re 2015-1, Variable Rate Notes, 7/1/19 22,100
--------------
$ 1,659,985
-------------------------------------------------------------------------------------------------------------
Multiperil - Worldwide -- 1.8%
1,300,000+(h) Arlington Re 2015, Variable Rate Notes, 2/1/19 $ 63,180
1,422,258+(h) Berwick Re 2018, Variable Rate Notes, 12/31/21 1,392,106
250,000+(h) Blue Lotus Re 2018, Variable Rate Notes, 12/31/21 277,725
150,000+(h) Eden Re II, Variable Rate Notes, 3/22/21 (144A) 72,690
450,000+(h) Eden Re II, Variable Rate Notes, 3/22/22 (144A) 469,620
250,000+(h) Eden Re II, Variable Rate Notes, 3/22/22 (144A) 261,050
1,600,000+(h) Gleneagles Re 2016, Variable Rate Notes, 11/30/20 99,200
250,000+(h) Gleneagles Re 2018, Variable Rate Notes, 12/31/21 273,498
250,000+(h) Limestone Re, Variable Rate Notes, 3/1/22 257,975
450,000+(h) Lorenz Re 2017, Variable Rate Notes, 3/31/20 94,860
450,000+(h) Lorenz Re 2018, Variable Rate Notes, 7/1/21 445,005
490,000+(h) Madison Re 2016, Variable Rate Notes, 3/31/19 13,622
300,000+(h) Madison Re 2017, Variable Rate Notes, 12/31/19 79,170
250,000+(h) Madison Re 2018, Variable Rate Notes, 12/31/21 274,775
600,000+(h) Merion Re 2018-2, Variable Rate Notes, 12/31/21 647,040
3,900,000+(h) Pangaea Re 2015-1, Variable Rate Notes, 1/2/22 7,020
3,500,000+(h) Pangaea Re 2016-1, Variable Rate Notes, 11/30/20 20,300
1,000,000+(h) Pangaea Re 2016-2, Variable Rate Notes, 11/30/20 8,150
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global High Yield Fund | Annual Report | 10/31/18
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
Multiperil - Worldwide (continued)
300,000+(h) Pangaea Re 2018-1, Variable Rate Notes, 12/31/21 $ 306,390
300,000+(h) Pangaea Re 2018-3, Variable Rate Notes, 7/1/22 274,380
500,000+(h) St. Andrews Re 2017-1, Variable Rate Notes, 2/1/19 33,900
521,395+(h) St. Andrews Re 2017-4, Variable Rate Notes, 6/1/19 51,305
250,000+(h) Thopas Re 2018, Variable Rates Notes, 12/31/21 268,450
3,000,000+(h) Versutus Re 2016-1, Variable Rate Notes, 11/30/20 23,100
600,000+(h) Versutus Re 2017-A, Variable Rate Notes, 11/30/21 27,180
300,000+(h) Versutus Re 2018-A, Variable Rate Notes, 12/31/21 316,860
250,000+(h) Viribus Re 2018, Variable Rate Notes, 12/31/21 247,500
253,645+(h) Woburn Re 2018, Variable Rate Notes, 12/31/21 265,389
--------------
$ 6,571,440
--------------
Total Reinsurance Sidecars $ 8,231,425
-------------------------------------------------------------------------------------------------------------
TOTAL INSURANCE-LINKED SECURITIES
(Cost $18,344,156) $ 18,493,913
-------------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN INTERESTS --
3.2% of Net Assets*(d)
AUTOMOBILES & COMPONENTS -- 0.0%+
Auto Parts & Equipment -- 0.0%+
1,718 Allison Transmission, Inc., New Term Loan, 4.04% (LIBOR +
175 bps), 9/23/22 $ 1,728
--------------
Total Automobiles & Components $ 1,728
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.2%
Aerospace & Defense -- 0.2%
783,123 DynCorp International, Inc., Term Loan B2, 8.282%
(LIBOR + 600 bps), 7/7/20 $ 786,060
--------------
Total Capital Goods $ 786,060
-------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.1%
Diversified Support Services -- 0.1%
482,007 IAP Worldwide Services, Inc., Second Lien Term Loan,
8.886% (LIBOR + 650 bps), 7/18/19 $ 477,187
--------------
Total Commercial Services & Supplies $ 477,187
-------------------------------------------------------------------------------------------------------------
ENERGY -- 0.7%
Oil & Gas Drilling -- 0.7%
1,950,000 Gavilan Resources LLC, Second Lien Initial Term Loan,
8.28% (LIBOR + 600 bps), 3/1/24 $ 1,835,438
650,000 Traverse Midstream Partners LLC, Advance Term Loan,
6.6% (LIBOR + 400 bps), 9/27/24 655,586
--------------
Total Energy $ 2,491,024
-------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.2%
Health Care Services -- 0.2%
858,594 Alliance HealthCare Services, Inc., First Lien Initial Term
Loan, 6.802% (LIBOR + 450 bps), 10/24/23 $ 864,497
--------------
Total Health Care Equipment & Services $ 864,497
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 35
Schedule of Investments | 10/31/18 (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.5%
Personal Products -- 0.5%
2,532,985 Revlon Consumer Products Corp., Initial Term B Loan,
5.813% (LIBOR + 350 bps), 9/7/23 $ 1,859,844
--------------
Total Household & Personal Products $ 1,859,844
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.9%
Diversified Metals & Mining -- 0.4%
1,396,500 Aleris International, Inc., Initial Term Loan, 7.052%
(LIBOR + 475 bps), 2/27/23 $ 1,411,628
-------------------------------------------------------------------------------------------------------------
Steel -- 0.5%
1,955,175 Zekelman Industries, Inc. (fka JMC Steel Group, Inc.),
Term Loan, 4.623% (LIBOR + 225 bps), 6/14/21 $ 1,954,569
--------------
Total Materials $ 3,366,197
-------------------------------------------------------------------------------------------------------------
RETAILING -- 0.4%
Department Stores -- 0.4%
1,484,416 Neiman Marcus Group, Ltd. LLC, Other Term Loan, 5.531%
(LIBOR + 325 bps), 10/25/20 $ 1,354,220
--------------
Total Retailing $ 1,354,220
-------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Electric Utilities -- 0.2%
700,031 Vistra Operations Co. LLC (fka Tex Operations Co. LLC),
Initial Term Loan, 4.302% (LIBOR + 200 bps), 8/4/23 $ 699,300
--------------
Total Utilities $ 699,300
-------------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE LOAN INTERESTS
(Cost $12,449,666) $ 11,900,057
-------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS --
1.0% of Net Assets
1,000,000(e) U.S. Treasury Bills, 11/8/18 $ 999,593
2,810,000(e) U.S. Treasury Bills, 11/23/18 2,806,306
263,000(e)(i) U.S. Treasury Bills, 9/30/2021 257,267
-------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $4,063,143) $ 4,063,166
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Shares
-------------------------------------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.0%+ of Net Assets
CAPITAL GOODS -- 0.0%+
Industrial Machinery -- 0.0%+
747^(a)(j) LTR Intermediate Holdings, Inc. $ --
--------------
Total Capital Goods $ --
-------------------------------------------------------------------------------------------------------------
ENERGY -- 0.0%+
Coal & Consumable Fuels -- 0.0%+
61(a)(k) Contura Energy, Inc. $ 2,684
-------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.0%+
7,597(a)(l)^ Midstates Petroleum Co., Inc. $ --
--------------
Total Energy $ 2,684
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global High Yield Fund | Annual Report | 10/31/18
-------------------------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.0%+
Steel -- 0.0%+
318,254(a)(m) ANR, Inc. $ 4,265
--------------
Total Materials $ 4,265
-------------------------------------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $36,833) $ 6,949
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Notional Price Date
-------------------------------------------------------------------------------------------------------------
OVER THE COUNTER (OTC) CALL OPTIONS PURCHASED -- 0.0%+
297,012(n)^ Desarrolladora Bank of
Homex New York
SAB de CV Mellon Corp. MXN -- MXN --(p) 10/23/22 $ --
297,012(o)^ Desarrolladora Bank of
Homex New York
SAB de CV Mellon Corp. MXN -- MXN --(p) 10/23/22 --
--------------
$ --
-------------------------------------------------------------------------------------------------------------
TOTAL OVER THE COUNTER (OTC) CALL OPTIONS PURCHASED
(Premiums paid $0) $ --
-------------------------------------------------------------------------------------------------------------
CURRENCY PUT OPTIONS PURCHASED -- 0.2%
21,795,000 Put EUR Bank of
Call USD America NA EUR 303,808 EUR 1.15 5/27/19 $ 518,329
3,900,000 Put EUR Bank of
Call USD America NA EUR 58,449 EUR 1.15 9/23/19 103,672
--------------
$ 622,001
-------------------------------------------------------------------------------------------------------------
TOTAL CURRENCY PUT OPTIONS PURCHASED
(Premiums paid $362,257) $ 622,001
-------------------------------------------------------------------------------------------------------------
TOTAL OPTIONS PURCHASED
(Premiums paid $362,257) $ 622,001
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($)
-------------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 0.4% of Net Assets
REPURCHASE AGREEMENTS -- 0.4%
370,000 $370,000 Royal Bank of Canada, 2.21%,
dated 10/31/18 plus accrued interest on 11/1/18
collateralized by $377,424 Federal National Mortgage
Association, 4.0%, 7/1/48 $ 370,000
925,000 $925,000 ScotiaBank, 2.2%, dated 10/31/18 plus
accrued interest on 11/1/18 collateralized by $943,558
Freddie Mac Giant, 3.5%, 12/1/47 925,000
--------------
$ 1,295,000
-------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $1,295,000) $ 1,295,000
-------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS -- 98.6%
(Cost $395,455,180) $ 362,414,129
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 37
Schedule of Investments | 10/31/18 (continued)
-------------------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Notional Price Date Value
-------------------------------------------------------------------------------------------------------------
CURRENCY CALL OPTIONS WRITTEN -- 0.0%+
(3,900,000) Call EUR Bank of
Put USD America NA EUR 58,449 EUR 1.27 9/23/19 $ (19,960)
(21,795,000) Call EUR Bank of
Put USD America NA EUR 303,808 EUR 1.27 5/29/19 (29,286)
--------------
$ (49,246)
-------------------------------------------------------------------------------------------------------------
TOTAL CURRENCY CALL OPTIONS WRITTEN
(Premiums received $(362,256)) $ (49,246)
-------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.4% $ 4,938,712
-------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 367,303,595
=============================================================================================================
(1) Securities are restricted as to resale.
BADLARPP Argentine Deposit Rate Badlar Private Banks 30 - 35 Days.
bps Basis Points.
CMT Constant Maturity Treasury Index.
LIBOR London Interbank Offered Rate.
REIT Real Estate Investment Trust.
ZERO Zero Constant Index.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
October 31, 2018, the value of these securities amounted to
$222,052,874, or 60.5% of net assets.
+ Amount rounds to less than 0.1%.
* Senior secured floating rate loan interests in which the Fund invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending rate plus a premium. These base lending
rates are generally (i) the lending rate offered by one or more major
European banks, such as LIBOR, (ii) the prime rate offered by one or
more major United States banks, (iii) the rate of a certificate of
deposit or (iv) other base lending rates used by commercial lenders.
The interest rate shown is the rate accruing at October 31, 2018.
+ Securities that used significant unobservable inputs to determine
their value.
^ Security is valued using fair value methods (other than supplied by
independent pricing services). See Notes to Financial Statements --
Note 1A.
(a) Non-income producing security.
(b) Security is perpetual in nature and has no stated maturity date.
(c) The interest rate is subject to change periodically. The interest rate
and/or reference index and spread shown at October 31, 2018.
(d) Floating rate note. Coupon rate, reference index and spread shown at
October 31, 2018.
(e) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(f) Security is in default.
(g) Payment in Kind (PIK) security which may pay interest in the form of
additional principal amount.
(h) Rate to be determined.
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global High Yield Fund | Annual Report | 10/31/18
(i) Security pledged as collateral by the counterparty for foreign forward
contracts.
(j) LTR Intermediate Holdings, Inc. warrants are exercisable into 747
shares.
(k) Contura Energy, Inc. warrants are exercisable into 61 shares.
(l) Midstates Petroleum Co., Inc. warrants are exercisable into 7,415
shares.
(m) ANR, Inc. warrants are exercisable into 318,254 shares.
(n) Option does not become effective until underlying company's
outstanding common shares reach a market capitalization of MXN 12.5
Billion.
(o) Option does not become effective until underlying company's
outstanding common shares reach a market capitalization of MXN 15.0
Billion.
(p) Strike price is 1 Mexican Peso (MXN).
FORWARD FOREIGN CURRENCY CONTRACTS
--------------------------------------------------------------------------------------------
In Unrealized
Currency Exchange Currency Settlement Appreciation
Purchased for Sold Deliver Counterparty Date (Depreciation)
--------------------------------------------------------------------------------------------
EUR 231,976 USD (269,911) Citibank NA 11/30/18 $ (6,857)
EUR 869,396 USD (992,383) Goldman Sachs 11/30/18 (6,517)
International
NOK 20,938,362 EUR (2,190,662) JPMorgan Chase 12/3/18 459
Bank NA
USD 1,513,857 EUR (1,310,132) JPMorgan Chase 11/30/18 28,210
Bank NA
EUR 1,682,871 USD (1,987,533) State Street 11/30/18 (79,213)
Bank & Trust Co.
NOK 20,938,362 EUR (2,186,704) State Street 11/1/18 7,880
Bank & Trust Co.
USD 907,641 MXN (18,273,451) State Street 1/31/19 20,419
Bank & Trust Co.
--------------------------------------------------------------------------------------------
TOTAL FORWARD FOREIGN CURRENCY CONTRACTS $ (35,619)
============================================================================================
SWAP CONTRACTS
CENTRALLY CLEARED CREDIT DEFAULT SWAP CONTRACTS -- SELL PROTECTION
--------------------------------------------------------------------------------------------
Obligation Annual Unrealized
Notional Reference/ Pay/ Fixed Expiration Premiums Appreciation Market
Amount ($)(1) Index Receive(2) Rate Date Paid (Depreciation) Value
--------------------------------------------------------------------------------------------
4,238,400 Markit CDX Receive 5.00% 12/20/20 $235,043 $21,657 $256,700
North America
High Yield Index
Series 25
3,243,800 Markit CDX Receive 5.00% 6/20/21 226,321 (8,322) 217,999
North America
High Yield Index
Series 26
--------------------------------------------------------------------------------------------
TOTAL CENTRALLY CLEARED CREDIT DEFAULT
SWAP CONTRACTS -- SELL PROTECTION $461,364 $13,335 $474,699
============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 39
Schedule of Investments | 10/31/18 (continued)
OVER THE COUNTER (OTC) CREDIT DEFAULT SWAP CONTRACTS -- SELL PROTECTION
---------------------------------------------------------------------------------------------------------------
Obligation Annual
Notional Reference/ Pay/ Fixed Expiration Premiums Unrealized Market
Amount ($)(1) Counterparty Index Receive(2) Rate Date (Received) Appreciation Value
---------------------------------------------------------------------------------------------------------------
650,000 Goldman Sachs Chesapeake Receive 5.00% 6/20/22 $ (79,625) $ 120,406 $ 40,781
International Energy Corp.
415,000 Goldman Sachs Chesapeake Receive 5.00% 6/20/22 (50,837) 76,875 26,038
International Energy Corp.
690,000 Goldman Sachs Chesapeake Receive 5.00% 6/20/22 (77,625) 120,915 43,290
International Energy Corp.
---------------------------------------------------------------------------------------------------------------
TOTAL OVER THE COUNTER (OTC) CREDIT DEFAULT SWAP CONTRACTS --
SELL PROTECTION $(208,087) $ 318,196 $ 110,109
---------------------------------------------------------------------------------------------------------------
TOTAL SWAP CONTRACTS $ 253,277 $ 331,531 $ 584,808
===============================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Receives Quarterly
Principal amounts are denominated in U.S. dollars ("USD") unless otherwise
noted.
ARS Argentine Peso
DOP Dominican Republic peso
EUR Euro
GBP Great British Pound
IDR Indonesian Rupiah
MXN Mexican Peso
NOK Norwegian Krone
UYU Uruguayan Peso
Purchases and sales of securities (excluding temporary cash investments) for
year ended October 31, 2018, aggregated $233,246,377 and $426,818,629,
respectively.
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, 2018, the
Fund engaged in purchases of $871,626 and sales of $3,712,571 pursuant to these
procedures, which resulted in a loss of $27,892.
At October 31, 2018, the net unrealized depreciation on investments based on
cost for federal tax purposes of $396,496,033 was as follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost $ 6,898,592
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value (40,737,820)
------------
Net unrealized depreciation $(33,839,228)
============
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.
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global High Yield Fund | Annual Report | 10/31/18
Level 3 - significant unobservable inputs (including the Fund's own assumptions
in determining fair value of investments). See Notes to Financial
Statements -- Note 1A.
The following is a summary of the inputs used as of October 31, 2018, in valuing
the Fund's investments.
--------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------
Common Stocks
Energy
Oil & Gas Exploration &
Production $ 975,356 $ -- $ 1,233,056 $ 2,208,412
All Other Common Stocks 83,644 -- -- 83,644
Convertible Preferred Stocks 4,519,477 -- -- 4,519,477
Asset Backed Security -- 445,504 -- 445,504
Collateralized Mortgage Obligations -- 4,352,162 -- 4,352,162
Convertible Corporate Bonds -- 5,847,790 -- 5,847,790
Corporate Bonds -- 284,182,698 -- 284,182,698
Foreign Government Bonds -- 24,393,356 -- 24,393,356
Insurance-Linked Securities
Collateralized Reinsurance
Earthquakes - California -- -- 400,000 400,000
Multiperil - U.S. -- -- 45,960 45,960
Multiperil - Worldwide -- -- 3,431,417 3,431,417
Windstorm - Florida -- -- 580,218 580,218
Windstorm - U.S. Regional -- -- 246,950 246,950
Industry Loss Warranties
Multiperil - U.S. -- -- 894,123 894,123
Reinsurance Sidecars
Multiperil - U.S. -- -- 1,659,985 1,659,985
Multiperil - Worldwide -- -- 6,571,440 6,571,440
All Other Insurance-Linked
Securities -- 4,663,820 -- 4,663,820
Senior Secured Floating Rate
Loan Interests -- 11,900,057 -- 11,900,057
U.S. Government and
Agency Obligations -- 4,063,166 -- 4,063,166
Rights/Warrants
Capital Goods
Industrial Machinery -- -- --* --*
Energy
Oil & Gas Exploration &
Production -- -- --* --*
All Other Rights/Warrants -- 6,949 -- 6,949
Over The Counter (OTC) Call
Options Purchased -- --* -- --*
Currency Put Options Purchased -- 622,001 -- 622,001
Repurchase Agreements -- 1,295,000 -- 1,295,000
--------------------------------------------------------------------------------------------
Total Investments in Securities $ 5,578,477 $ 341,772,503 $15,063,149 $ 362,414,129
============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 41
Schedule of Investments | 10/31/18 (continued)
--------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------
Other Financial Instruments
Currency Call Options Written $ -- $ (49,246) $ -- $ (49,246)
Net unrealized depreciation
on forward foreign
currency contracts -- (35,619) -- (35,619)
Swap contracts, at value -- 584,808 -- 584,808
--------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ -- $ 499,943 $ -- $ 499,943
============================================================================================
* Security valued at $0.
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
--------------------------------------------------------------------------------
Insurance
Common Linked
Stocks Securities Total
--------------------------------------------------------------------------------
Balance as of 10/31/17 $ 3,264,403 $ 9,573,017(a) $ 12,837,420
Realized gain (loss)(1) (2,599,696) (370,483) (2,970,179)
Change in unrealized appreciation
(depreciation)(2) 2,823,668 (525,125) 2,298,543
Accrued discounts/premiums -- (1,088) (1,088)
Purchases -- 11,373,363 11,373,363
Sales (2,255,319) (6,219,591) (8,474,910)
Transfers in to Level 3* -- -- --
Transfers out of Level 3* -- -- --
--------------------------------------------------------------------------------
Balance as of 10/31/18 $ 1,233,056 $13,830,093 $ 15,063,149
================================================================================
(a) Securities were classified as Corporate Bonds on the October 31, 2017
financial statements.
(1) Realized gain (loss) on these securities is included in the realized gain
(loss) from investments on the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) from investments on
the Statement of Operations.
* Transfers are calculated on the beginning of period value. For the year
ended October 31, 2018, there were no transfers between Levels 1, 2 and 3.
Net change in unrealized appreciation (depreciation) of Level 3
investments still held and considered Level 3 at October 31, 2018: $ (228,259)
----------
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global High Yield Fund | Annual Report | 10/31/18
Statement of Assets and Liabilities | 10/31/18
ASSETS:
Investments in unaffiliated issuers, at value (cost $395,455,180) $ 362,414,129
Foreign currencies, at value (cost $1,712,574) 1,669,204
Swap contracts, at value (net premiums paid $253,277) 584,808
Swaps collateral 421,000
Variation margin for centrally cleared swap contracts 8,684
Receivables --
Investment securities sold 3,432,017
Fund shares sold 302,842
Interest 5,467,032
Other assets 31,615
-----------------------------------------------------------------------------------------
Total assets $ 374,331,331
=========================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 3,994,876
Fund shares repurchased 1,138,396
Distributions 195,768
Trustees' fees 2,727
Due to custodian 562,043
Due to broker for forward collateral 257,267
Due to broker for swap contracts 475,094
Net unrealized depreciation on forward foreign currency contracts 35,619
Written options outstanding (net premiums received $(362,256)) 49,246
Due to affiliates 49,431
Accrued expenses 267,269
-----------------------------------------------------------------------------------------
Total liabilities $ 7,027,736
=========================================================================================
NET ASSETS:
Paid-in capital $ 670,775,458
Distributable earnings (loss) (303,471,863)
-----------------------------------------------------------------------------------------
Net assets $ 367,303,595
=========================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $173,588,229/20,391,574 shares) $ 8.51
Class C (based on $60,700,124/7,150,138 shares) $ 8.49
Class Y (based on $133,015,242/15,913,221 shares) $ 8.36
MAXIMUM OFFERING PRICE PER SHARE:
Class A (based on $8.51 net asset value per share/100%-4.50%
maximum sales charge) $ 8.91
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 43
Statement of Operations
For the Year Ended 10/31/18
INVESTMENT INCOME:
Interest from unaffiliated issuers (net of withholding
tax of $154,933) $ 34,407,741
Dividends from unaffiliated issuers 401,027
------------------------------------------------------------------------------------------
Total investment income $ 34,808,768
------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 3,630,327
Administrative expense 189,889
Transfer agent fees
Class A 156,451
Class C 95,210
Class Y 266,416
Distribution fees
Class A 416,118
Class C 1,162,337
Shareowner communications expense 58,303
Custodian fees 64,245
Registration fees 72,600
Professional fees 57,576
Printing expense 32,166
Trustees' fees 21,600
Pricing expense 40,072
Insurance expense 8,124
Miscellaneous 73,109
------------------------------------------------------------------------------------------
Total expenses $ 6,344,543
------------------------------------------------------------------------------------------
Net investment income $ 28,464,225
------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $ (4,957,327)
Written options (80,733)
Forward foreign currency contracts 30,483
Swap contracts 776,422
Other assets and liabilities denominated in
foreign currencies (548,679) $ (4,779,834)
------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $ (31,489,887)
Written options 313,010
Forward foreign currency contracts (26,746)
Swap contracts (325,654)
Other assets and liabilities denominated
in foreign currencies (204,838) $ (31,734,115)
------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ (36,513,949)
------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (8,049,724)
==========================================================================================
The accompanying notes are an integral part of these financial statements.
44 Pioneer Global High Yield Fund | Annual Report | 10/31/18
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/18 10/31/17
--------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 28,464,225 $ 35,787,373
Net realized gain (loss) on investments (4,779,834) (20,834,494)
Change in net unrealized appreciation (depreciation)
on investments (31,734,115) 46,874,976
--------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (8,049,724) $ 61,827,855
--------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Class A ($0.45 and $0.42 per share, respectively) $ (8,507,743) $ (8,958,026)**
Class C ($0.39 and $0.35 per share, respectively) (5,087,160) (6,590,456)**
Class Y ($0.47 and $0.43 per share, respectively) (12,802,730) (14,231,124)**
Tax return of capital:
Class A ($-- and $0.05 per share, respectively) -- (949,283)
Class C ($-- and $0.05 per share, respectively) -- (808,452)
Class Y ($-- and $0.05 per share, respectively) -- (1,479,883)
--------------------------------------------------------------------------------------------
Total distributions to shareowners $ (26,397,633) $ (33,017,224)
--------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales of shares $ 128,334,116 $ 127,533,450
Reinvestment of distributions 22,985,297 28,716,717
Cost of shares repurchased (368,719,457) (231,073,307)
--------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (217,400,044) $ (74,823,140)
--------------------------------------------------------------------------------------------
Net decrease in net assets $ (251,847,401) $ (46,012,509)
NET ASSETS:*
Beginning of year $ 619,150,996 $ 665,163,505
--------------------------------------------------------------------------------------------
End of year $ 367,303,595 $ 619,150,996
============================================================================================
* For the year ended October 31, 2017 distributions in excess of net
investment income was presented as follows: $(2,937,133)
** For the year ended October 31, 2017 distributions to shareowners were
presented as net investment income.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 45
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/18 10/31/18 10/31/17 10/31/17
Shares Amount Shares Amount
------------------------------------------------------------------------------------------------
Class A
Shares sold 7,151,862 $ 61,978,329 2,627,008 $ 23,469,846
Reinvestment of
distributions 825,177 7,294,518 977,107 8,698,460
Less shares repurchased (7,649,884) (67,507,298) (6,668,959) (59,151,186)
------------------------------------------------------------------------------------------------
Net increase
(decrease) 327,155 $ 1,765,549 (3,064,844) $ (26,982,880)
================================================================================================
Class C
Shares sold 1,264,768 $ 10,969,813 572,332 $ 5,052,440
Reinvestment of
distributions 517,538 4,577,234 709,708 6,301,947
Less shares repurchased (10,426,906) (90,716,240) (6,615,650) (58,590,146)
------------------------------------------------------------------------------------------------
Net decrease (8,644,600) $ (75,169,193) (5,333,610) $ (47,235,759)
================================================================================================
Class Y
Shares sold 6,297,721 $ 55,385,974 11,357,798 $ 99,011,164
Reinvestment of
distributions 1,275,654 11,113,545 1,567,203 13,716,310
Less shares repurchased (24,359,673) (210,495,919) (13,003,798) (113,331,975)
------------------------------------------------------------------------------------------------
Net decrease (16,786,298) $ (143,996,400) (78,797) $ (604,501)
================================================================================================
The accompanying notes are an integral part of these financial statements.
46 Pioneer Global High Yield Fund | Annual Report | 10/31/18
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/18 10/31/17 10/31/16* 10/31/15* 10/31/14*
---------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.12 $ 8.71 $ 8.64 $ 9.79 $ 10.13
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.49(a) $ 0.51(a) $ 0.54(a) $ 0.58(a) $ 0.66
Net realized and unrealized gain (loss) on investments (0.65) 0.37 0.04(b) (1.19) (0.34)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.16) $ 0.88 $ 0.58 $ (0.61) $ 0.32
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.45) $ (0.42) $ (0.47) $ (0.46) $ (0.63)
Tax return of capital -- (0.05) (0.04) (0.08) (0.03)
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.45) $ (0.47) $ (0.51) $ (0.54) $ (0.66)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.61) $ 0.41 $ 0.07 $ (1.15) $ (0.34)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.51 $ 9.12 $ 8.71 $ 8.64 $ 9.79
===========================================================================================================================
Total return (c) (1.78)% 10.33% 7.14%(d) (6.36)% 3.16%
Ratio of net expenses to average net assets 1.17% 1.18% 1.19% 1.17% 1.13%
Ratio of net investment income (loss) to average net assets 5.56% 5.71% 6.50% 6.31% 6.62%
Portfolio turnover rate 48% 53% 40% 32% 32%
Net assets, end of period (in thousands) $173,588 $182,900 $201,360 $254,056 $373,543
===========================================================================================================================
* 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 and the complete redemption of
the investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(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.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 47
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/18 10/31/17 10/31/16* 10/31/15* 10/31/14*
---------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.09 $ 8.69 $ 8.62 $ 9.76 $ 10.10
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.42(a) $ 0.44(a) $ 0.48(a) $ 0.51(a) $ 0.59
Net realized and unrealized gain (loss) on investments (0.63) 0.36 0.04(b) (1.17) (0.34)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.21) $ 0.80 $ 0.52 $ (0.66) $ 0.25
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.39) $ (0.35) $ (0.41) $ (0.40) $ (0.56)
Tax return of capital -- (0.05) (0.04) (0.08) (0.03)
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.39) $ (0.40) $ (0.45) $ (0.48) $ (0.59)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.60) $ 0.40 $ 0.07 $ (1.14) $ (0.34)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.49 $ 9.09 $ 8.69 $ 8.62 $ 9.76
===========================================================================================================================
Total return (c) (2.39)% 9.46% 6.40%(d) (6.96)% 2.43%
Ratio of net expenses to average net assets 1.90% 1.89% 1.90% 1.87% 1.83%
Ratio of net investment income (loss) to average net assets 4.75% 5.01% 5.79% 5.61% 5.91%
Portfolio turnover rate 48% 53% 40% 32% 32%
Net assets, end of period (in thousands) $60,700 $143,587 $183,542 $237,163 $354,162
===========================================================================================================================
* 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 and the complete redemption of
the investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(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.
48 Pioneer Global High Yield Fund | Annual Report | 10/31/18
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/18 10/31/17 10/31/16* 10/31/15* 10/31/14*
---------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 8.95 $ 0.55 $ 8.49 $ 9.62 $ 9.96
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.50(a) $ 0.52(a) $ 0.57(a) $ 0.60(a) $ 0.67
Net realized and unrealized gain (loss) on investments (0.62) 0.36 0.01(b) (1.17) (0.33)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.12) $ 0.88 $ 0.58 $ (0.57) $ 0.34
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.47) $ (0.43) $ (0.48) $ (0.48) $ (0.65)
Tax return of capital -- (0.05) (0.04) (0.08) (0.03)
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.47) $ (0.48) $ (0.52) $ (0.56) $ (0.68)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.59) $ 0.40 $ 0.06 $ (1.13) $ (0.34)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.36 $ 8.95 $ 8.55 $ 8.49 $ 9.62
===========================================================================================================================
Total return (c) (1.41)% 10.60% 7.34% (6.08)% 3.40%
Ratio of net expenses to average net assets 0.92% 0.91% 0.90% 0.87% 0.84%
Ratio of net investment income (loss) to average net assets 5.73% 5.96% 6.93% 6.60% 6.88%
Portfolio turnover rate 48% 53% 40% 32% 32%
Net assets, end of period (in thousands) $133,015 $292,664 $280,262 $485,344 $682,911
===========================================================================================================================
* 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 and the complete redemption of
the investment at net asset value at the end of each period.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 49
Notes to Financial Statements | 10/31/18
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 five classes of shares designated as Class A, Class C, Class K,
Class T and Class Y shares. Class K and Class T had not commenced operations as
of October 31, 2018. 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 shareowner approval. Under per-share voting, each share
of a class of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareowner's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
Amundi Pioneer Asset Management, Inc., an indirect wholly owned subsidiary of
Amundi and Amundi's wholly owned subsidiary, Amundi USA, Inc., serves as the
Fund's investment adviser (the "Adviser"). Amundi Pioneer Distributor, Inc., an
affiliate of Amundi Pioneer Asset Management, Inc., serves as the Fund's
distributor (the "Distributor").
In August 2018, the SEC released a Disclosure Update and Simplification Final
Rule. The Final Rule amends Regulation S-X disclosures requirements to conform
them to U.S. Generally Accepted Accounting Principles ("U.S. GAAP") for
investment companies. The Fund's financial statements were prepared in
compliance with the new amendments to Regulation S-X.
The Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. U.S. GAAP requires the management of the
Fund to make estimates and assumptions that affect the
50 Pioneer Global High Yield Fund | Annual Report | 10/31/18
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the New
York Stock Exchange ("NYSE") is open, as of the close of regular trading on
the NYSE.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to supply
prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Loan interests are valued in accordance with guidelines established by the
Board of Trustees at the mean between the last available bid and asked
prices from one or more brokers or dealers as obtained from Loan Pricing
Corporation, an independent third party pricing service. If price
information is not available from Loan Pricing Corporation, or if the price
information is deemed to be unreliable, price information will be obtained
from an alternative loan interest pricing service. If no reliable price
quotes are available from either the primary or alternative pricing
service, broker quotes will be solicited.
Event-linked bonds or catastrophe bonds are valued at the bid price
obtained from an independent third party pricing service. Other
insurance-linked securities (including sidecars, collateralized reinsurance
and industry loss warranties) may be valued at the bid price obtained from
an independent pricing service, or through a third party using a pricing
matrix, insurance industry valuation models, or other fair value methods or
techniques to provide an estimated value of the instrument.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 51
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party pricing
source. Trading in non-U.S. equity securities is substantially completed
each day at various times prior to the close of the NYSE. The values of
such securities used in computing the net asset value of the Fund's shares
are determined as of such times. The Fund may use a fair value model
developed by an independent pricing service to value non-U.S. equity
securities.
Options contracts are generally valued at the mean between the last bid and
ask prices on the principal exchange where they are traded.
Over-the-counter ("OTC") options and options on swaps ("swaptions") are
valued using prices supplied by independent pricing services, which
consider such factors as market prices, market events, quotations from one
or more brokers, Treasury spreads, yields, maturities and ratings, or may
use a pricing matrix or other fair value methods or techniques to provide
an estimated value of the security or instrument.
Repurchase agreements are valued at par. Cash may include overnight time
deposits at approved financial institutions.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate and the forward points on a daily basis, in each case
provided by a third party pricing service. Contracts whose forward
settlement date falls between two quoted days are valued by interpolation.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealers Association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
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
52 Pioneer Global High Yield Fund | Annual Report | 10/31/18
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, 2018, six 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 pricing
model) representing 0.37% of net assets. The value of these fair valued
securities was $1,347,761.
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
Interest income, including interest on income-bearing cash accounts, is
recorded on the accrual basis. Dividend and interest income are reported
net of unrecoverable foreign taxes withheld at the applicable country rates
and net of income accrued on defaulted securities.
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are accreted/
amortized for financial reporting purposes over the life of the respective
securities, and such accretion/amortization is included in interest income.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 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 on the Statement of Operations from
the effects of changes in the market prices of those securities, but are
included with the net realized and unrealized gain or loss on investments.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no provision for federal income taxes is
required. As of October 31, 2018, the Fund did not accrue any interest or
penalties with respect to uncertain tax positions, which, if applicable,
would be recorded as an income tax expense on the Statement of Operations.
Tax returns filed within the prior three years remain subject to
examination by federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary over distributions for financial
statement purposes resulting from differences in the recognition or
classification of income or distributions for financial statement and tax
purposes. Capital accounts within the financial statements are adjusted for
permanent book/tax differences to reflect tax character, but are not
adjusted for temporary differences.
At October 31, 2018, the Fund reclassified $26,318,950 to decrease
distributable earnings (loss) and $26,318,950 to decrease paid-in capital
to reflect permanent book/tax differences. These adjustments have no impact
on net assets or the results of operations.
54 Pioneer Global High Yield Fund | Annual Report | 10/31/18
At October 31, 2018, the Fund was permitted to carry forward $23,803,431 of
short-term capital losses and $245,593,154 of long-term capital losses
without limitation. Since unlimited losses are required to be used first,
loss carryforwards that are subject to expiration may be more likely to
expire unused. The amount of capital loss carryforward that expired unused
in 2018 was $26,270,910.
The tax character of distributions paid during the years ended October 31,
2018 and October 31, 2017, were as follows:
---------------------------------------------------------------------------
2018 2017
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $26,397,633 $29,779,606
Tax return of capital -- 3,237,618
---------------------------------------------------------------------------
Total $26,397,633 $33,017,224
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2018:
---------------------------------------------------------------------------
2018
---------------------------------------------------------------------------
Distributable earnings:
Capital loss carryforward $(269,396,585)
Dividend payable (195,768)
Net unrealized depreciation (33,879,510)
---------------------------------------------------------------------------
Total $(303,471,863)
===========================================================================
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, and swaps.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor earned $7,155 in underwriting commissions on the sale of Class
A shares during the year ended October 31, 2018.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the Fund's transfer agent for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
Pioneer Global High Yield Fund | Annual Report | 10/31/18 55
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
G. Risks
The value of securities held by the Fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's investments in
countries with emerging (or developing) markets may subject the Fund to a
greater degree of risk than investments in a developed market. These risks
include disruptive political or economic conditions and the imposition of
adverse governmental laws or currency exchange restrictions.
Interest rates in the U.S. have been historically low and have begun to
rise, so the Fund faces a heightened risk that interest rates may continue
to rise. A general rise in interest rates could adversely affect the price
and liquidity of fixed-income securities and could also result in increased
redemptions from the Fund.
The Fund invests in below investment grade (high yield) debt securities and
preferred stocks. Some of these high yield securities may be convertible
into equity securities of the issuer. Debt securities rated below
investment grade are commonly referred to as "junk bonds" and are
considered speculative. These securities involve greater risk of loss, are
subject to greater price volatility, and are less liquid, especially during
periods of economic uncertainty or change, than higher rated debt
securities.
With the increased use of technologies such as the Internet to conduct
business, the Fund is susceptible to operational, information security and
related risks. While the Fund's Adviser has established business continuity
plans in the event of, and risk management systems to prevent, limit or
56 Pioneer Global High Yield Fund | Annual Report | 10/31/18
mitigate, such cyber-attacks, there are inherent limitations in such plans
and systems including the possibility that certain risks have not been
identified. Furthermore, the Fund cannot control the cybersecurity plans
and systems put in place by service providers to the Fund such as Brown
Brothers Harriman & Co., the Fund's custodian and accounting agent, and DST
Asset Manager Solutions, Inc., the Fund's transfer agent. In addition, many
beneficial owners of Fund shares hold them through accounts at
broker-dealers, retirement platforms and other financial market
participants over which neither the Fund nor Amundi Pioneer exercises
control. Each of these may in turn rely on service providers to them, which
are also subject to the risk of cyber-attacks. Cybersecurity failures or
breaches at Amundi Pioneer or the Fund's service providers or
intermediaries have the ability to cause disruptions and impact business
operations, potentially resulting in financial losses, interference with
the Fund's ability to calculate its net asset value, impediments to
trading, the inability of Fund shareowners to effect share purchases,
redemptions or exchanges or receive distributions, loss of or unauthorized
access to private shareowners information and violations of applicable
privacy and other laws, regulatory fines, penalties, reputational damage,
or additional compliance costs. Such costs and losses may not be covered
under any insurance. In addition, maintaining vigilance against
cyber-attacks may involve substantial costs over time, and system
enhancements may themselves be subject to cyber-attacks.
The Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
H. Insurance-Linked Securities ("ILS")
The Fund invests in event-linked bonds and other ILS. The Fund could lose a
portion or all of the principal it has invested in an ILS, and the right to
additional interest payments with respect to the security, upon the
occurrence of one or more trigger events, as defined within the terms of an
insurance-linked security. Trigger events, generally, are hurricanes,
earthquakes, or other natural events of a specific size or magnitude that
occur in a designated geographic region during a specified time period,
and/or that involve losses or other metrics that exceed a specific amount.
There is no way to accurately predict whether a trigger event will occur
and, accordingly, ILS carry significant risk. The Fund is entitled to
receive principal and interest payments so long as no trigger event occurs
of the description and magnitude specified by the instrument. In addition
to the specified trigger events, ILS may expose the Fund to other risks,
including but not limited to issuer (credit) default, adverse regulatory or
jurisdictional interpretations and adverse tax consequences.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 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.
Where the ILS are based on the performance of underlying reinsurance
contracts, the Fund has limited transparency into the individual underlying
contracts, and therefore must rely upon the risk assessment and sound
underwriting practices of the issuer. Accordingly, it may be more difficult
for the Adviser to fully evaluate the underlying risk profile of the Fund's
structured reinsurance investments, and therefore the Fund's assets are
placed at greater risk of loss than if the Adviser had more complete
information. Structured reinsurance instruments generally will be
considered illiquid securities by the Fund. These securities may be
difficult to purchase, sell or unwind. Illiquid securities also may be
difficult to value. If the Fund is forced to sell an illiquid asset, the
Fund may be forced to sell at a loss.
Additionally, the Fund may gain exposure to ILS by investing in a closed
end interval fund, Pioneer ILS Interval Fund, an affiliate of the Adviser.
I. Repurchase Agreements
Repurchase agreements are arrangements under which the Fund purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Fund at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Fund. The securities purchased serve as
the Fund's collateral for the obligation of the counterparty to repurchase
the securities. The value of the collateral, including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian or a sub-custodian of the
Fund. The Adviser is responsible for determining that the value of the
collateral remains at least equal to the repurchase price. In the event of
a default by the counterparty, the Fund is entitled to sell the securities,
but the Fund may not be able to sell them for the price at which they were
purchased, thus causing a loss to
58 Pioneer Global High Yield Fund | Annual Report | 10/31/18
the Fund. Additionally, if the counterparty becomes insolvent, there is
some risk that the Fund will not have a right to the securities, or the
immediate right to sell the securities.
Open repurchase agreements as of October 31, 2018 are disclosed in the
Fund's Schedule of Investments.
J. Purchased Options
The Fund may purchase put and call options to seek to increase total
return. Purchased call and put options entitle the Fund to buy and sell a
specified number of shares or units of a particular security, currency or
index at a specified price at a specific date or within a specific period
of time. Upon the purchase of a call or put option, the premium paid by the
Fund is included on the Statement of Assets and Liabilities as an
investment. All premiums are marked-to-market daily, and any unrealized
appreciation or depreciation is recorded on the Fund's Statement of
Operations. As the purchaser of an index option, the Fund has the right to
receive a cash payment equal to any depreciation in the value of the index
below the strike price of the option (in the case of a put) or equal to any
appreciation in the value of the index over the strike price of the option
(in the case of a call) as of the valuation date of the option. Premiums
paid for purchased call and put options which have expired are treated as
realized losses on investments on the Statement of Operations. Upon the
exercise or closing of a purchased put option, the premium is offset
against the proceeds on the sale of the underlying security or financial
instrument in order to determine the realized gain or loss on investments.
Upon the exercise or closing of a purchased call option, the premium is
added to the cost of the security or financial instrument. The risk
associated with purchasing options is limited to the premium originally
paid.
The average market value of purchased options contracts open during the
year ended October 31, 2018 was $192,825. Open purchased options at October
31, 2018 are listed in the Fund's Schedule of Investments.
K. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price,
upon the exercise of the option. When the Fund writes an option, an amount
equal to the premium received by the Fund is recorded as "Written options
outstanding" on the Statement of Assets and Liabilities and is subsequently
adjusted to the current value of the option written. Premiums received from
writing options that expire unexercised are treated by the
Pioneer Global High Yield Fund | Annual Report | 10/31/18 59
Fund on the expiration date as realized gains from investments on the
Statement of Operations. The difference between the premium and the amount
paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain on the Statement of
Operations, or, if the premium is less than the amount paid for the closing
purchase transaction, as a realized loss on the Statement of Operations. If
a call option is exercised, the premium is added to the proceeds from the
sale of the underlying security in determining whether the Fund has
realized a gain or loss. The Fund as writer of an option bears the market
risk of an unfavorable change in the price of the security underlying the
written option.
The average market value of written options for the year ended October 31,
2018 was $(81,201). Open written options contracts at October 31, 2018 are
listed in the Fund's Schedule of Investments.
L. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts ("contracts")
for the purchase or sale of a specific foreign currency at a fixed price on
a future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
is recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 7).
At October 31, 2018, the Fund had entered into various forward foreign
currency contracts that obligated the Fund to deliver or take delivery of
currencies at specified future maturity dates. Alternatively, prior to the
settlement date of a forward foreign currency contract, the Fund may close
out such contract by entering into an offsetting contract.
The average market value of forward foreign currency contracts open during
the year ended October 31, 2018 was $(13,502,153). Forward foreign currency
contracts outstanding at October 31, 2018 are listed in the Schedule of
Investments.
M. Credit Default Swap Contracts
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event or an underlying
reference obligation, which may be a single security or a basket or index
of securities. The Fund may buy or sell credit default swap contracts to
seek to
60 Pioneer Global High Yield Fund | Annual Report | 10/31/18
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.
As a buyer of protection, the Fund makes an upfront or periodic payment to the
protection seller in exchange for the right to receive a contingent payment. An
upfront payment made by the Fund, as the protection buyer, is recorded within
the "Swap contracts, at value" line item on the Statement of Assets and
Liabilities. Periodic payments received or paid by the Fund are recorded as
realized gains or losses on the Statement of Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
within the "Swap contracts, at value" line item on the Statement of Assets and
Liabilities. Payments received or made as a result of a credit event or upon
termination of the contract are recognized, net of the appropriate amount of the
upfront payment, as realized gains or losses on the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt instrument
directly. Credit default swap contracts are subject to general market risk,
liquidity risk, counterparty risk and credit risk. If the Fund is a protection
buyer and no credit event occurs, it will lose its investment. If the Fund is a
protection seller and a credit event occurs, the value of the referenced debt
instrument received by the Fund, together with the periodic payments received,
may be less than the amount the Fund pays to the protection buyer, resulting in
a loss to the Fund.
In addition, obligations under sell protection credit default swaps may be
partially offset by net amounts received from settlement of buy protection
credit default swaps entered into by the Fund for the same reference obligation
with the same counterparty.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 61
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as "Variation margin for
centrally cleared swaps" on the Statement of Assets and Liabilities. Cash
received from or paid to the broker related to previous margin movement is
held in a segregated account at the broker and is recorded as either "Due
from broker for swaps" or "Due to broker for swaps" on the Statement of
Assets and Liabilities. The amount of cash deposited with a broker as
collateral at October 31, 2018, is recorded as "Swaps collateral" on the
Statement of Assets and Liabilities.
The average market value of credit default swap contracts open during the
year ended October 31, 2018 was $515,061. Open credit default swap
contracts at October 31, 2018 are listed in the Schedule of Investments.
2. Management Agreement
The Adviser manages the Fund's portfolio. 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, 2018, the effective management fee (excluding waivers and/or
assumption of expenses) was equivalent to 0.70% 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 on the Statement of Assets and Liabilities is
$35,090 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at October 31, 2018.
3. Transfer Agent
DST Asset Manager Solutions, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
62 Pioneer Global High Yield Fund | Annual Report | 10/31/18
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings, and outgoing phone calls. For the year
ended October 31, 2018, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareowner Communications
--------------------------------------------------------------------------------
Class A $28,434
Class C 12,740
Class Y 17,129
--------------------------------------------------------------------------------
Total $58,303
================================================================================
4. Distribution and Service Plans
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A and Class C
shares. Pursuant to the Plan, the Fund pays the Distributor 0.25% of the average
daily net assets attributable to Class A shares as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class A shares. Pursuant to the Plan, the Fund also pays the
Distributor 1.00% of the average daily net assets attributable to Class C
shares. The fee for Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class C shares.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $14,341 in distribution fees payable to the Distributor at
October 31, 2018.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge ("CDSC"). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to the
Distributor. For the year ended October 31, 2018, CDSCs in the amount of $2,306
were paid to the Distributor.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
"Funds"), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the
Pioneer Global High Yield Fund | Annual Report | 10/31/18 63
facility or the limits set for borrowing by the Fund's prospectus and the 1940
Act. Prior to August 1, 2018 the credit facility was in the amount of $195
million. Effective August 1, 2018, the Fund participates in a credit facility
that is in the amount of $250 million. Under such credit facility, depending on
the type of loan, interest on borrowings is payable at the London Interbank
Offered Rate ("LIBOR") plus 0.90% on an annualized basis, or the Alternate Base
Rate, which is the greater of (a) the facility's administrative agent's daily
announced prime rate on the borrowing date, (b) 2% plus the Federal Funds Rate
on the borrowing date, or (c) 2% plus the overnight Eurodollar rate on the
borrowing date. The Funds pay an annual commitment fee to participate in a
credit facility. The commitment fee is allocated among participating Funds based
on an allocation schedule set forth in the credit agreement. For the year ended
October 31, 2018, the Fund had no borrowings under the credit facility.
6. Master Netting Agreements
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the trading
of certain Over the Counter ("OTC") derivatives and typically contains, among
other things, close-out and set-off provisions which apply upon the occurrence
of an event of default and/or a termination event as defined under the relevant
ISDA Master Agreement. The ISDA Master Agreement may also give a party the right
to terminate all transactions traded under such agreement if, among other
things, there is deterioration in the credit quality of the other party. Upon an
event of default or a termination of the ISDA Master Agreement, the
non-defaulting party has the right to close out all transactions under such
agreement and to net amounts owed under each transaction to determine one net
amount payable by one party to the other. The right to close out and net
payments across all transactions under the ISDA Master Agreement could result in
a reduction of the Fund's credit risk to its counterparty equal to any amounts
payable by the Fund under the applicable transactions, if any. However, the
Fund's right to setoff may be restricted or prohibited by the bankruptcy or
insolvency laws of the particular jurisdiction to which each specific ISDA of
each counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due
64 Pioneer Global High Yield Fund | Annual Report | 10/31/18
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 on the Statement of
Assets and Liabilities as "Forwards collateral" and/or "Swaps collateral".
Securities pledged by the Fund as collateral, if any, are identified as such in
the Schedule of Investments.
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have 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, 2018.
-------------------------------------------------------------------------------------------------------
Derivative Assets Derivatives Non-Cash Cash Net Amount
Subject to Master Available for Collateral Collateral of Derivative
Counterparty Netting Agreement Offset Received (a) Received (a) Assets (b)
-------------------------------------------------------------------------------------------------------
Bank of
America NA $622,001 $(49,246) $ -- $ -- $572,755
JPMorgan Chase
Bank NA 28,669 -- -- -- 28,669
Goldman Sachs
International 318,196 (6,517) -- -- 311,679
State Street
Bank &
Trust Co. 28,299 (28,299) -- -- --
-------------------------------------------------------------------------------------------------------
Total $997,165 $(84,062) $ -- $ -- $913,103
=======================================================================================================
-------------------------------------------------------------------------------------------------------
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)
-------------------------------------------------------------------------------------------------------
Bank of
America NA $ 49,246 $(49,246) $ -- $ -- $ --
Citibank NA 6,857 -- -- -- 6,857
Goldman Sachs
International 6,517 (6,517) -- -- --
State Street
Bank &
Trust Co. 79,213 (28,299) -- -- 50,914
-------------------------------------------------------------------------------------------------------
Total $141,833 $(84,062) $ -- $ -- $ 57,771
=======================================================================================================
(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.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 65
7. Additional Disclosures about Derivative Instruments and Hedging Activities
The Fund's use of derivatives may enhance or mitigate the Fund's exposure to the
following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange rate risk), whether caused by factors specific to
an individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at October 31,
2018 was as follows:
---------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Assets and Liabilities Rate Risk Risk Rate Risk Risk Risk
---------------------------------------------------------------------------------
Assets
Currency put options
purchased* $ -- $ -- $622,001 $ -- $ --
Swap contracts, at value -- 584,808 -- -- --
---------------------------------------------------------------------------------
Total Value $ -- $ 584,808 $622,001 $ -- $ --
=================================================================================
Liabilities
Written options
outstanding $ -- $ -- $ 49,246 $ -- $ --
Net unrealized depreciation
on forward foreign
currency contracts -- -- 35,619 -- --
---------------------------------------------------------------------------------
Total Value $ -- $ -- $ 84,865 $ -- $ --
=================================================================================
* Reflects the market value of purchased option contracts (see Note 1J.).
These amounts are included in investments in unaffiliated issuers, at
value, on the statement of assets and liabilities.
66 Pioneer Global High Yield Fund | Annual Report | 10/31/18
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at October 31, 2018 was as follows: Foreign
---------------------------------------------------------------------------------
Statement Interest Credit Exchange Equity Commodity
of Operations Rate Risk Risk Rate Risk Risk Risk
---------------------------------------------------------------------------------
Net realized gain (loss) on:
Currency put options
purchased* $ -- $ -- $198,217 $ -- $ --
Written options -- -- (80,733) -- --
Forward foreign
currency contracts -- -- 30,483 -- --
Swap contracts -- 776,422 -- -- --
---------------------------------------------------------------------------------
Total Value $ -- $ 776,422 $147,967 $ -- $ --
=================================================================================
Change in net unrealized
appreciation
(depreciation) on:
Currency put options
purchased** $ -- $ -- $259,744 $ -- $ --
Written options -- -- $313,010 -- --
Forward foreign
currency contracts -- -- (26,746) -- --
Swap contracts -- (325,654) -- -- --
---------------------------------------------------------------------------------
Total Value $ -- $(325,654) $546,008 $ -- $ --
=================================================================================
* Reflects the net realized gain (loss) on purchased option contracts (see
Note 1J). These amounts are included in net realized gain (loss) on
investments in unaffiliated issuers, on the statements of operations.
** Reflects the change in net unrealized appreciation (depreciation) on
purchased option contracts (see Note 1J.). These amounts are included in
change in net unrealized appreciation (depreciation) on Investments in
unaffiliated issuers, on the statements of operations.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 67
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:
--------------------------------------------------------------------------------
Opinion on the Financial Statements
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, 2018, and the related statements of operations, changes in net assets and
the financial highlights for the year then ended and the related notes, and the
statement of changes in net assets and financial highlights for the year ended
October 31, 2017 (collectively referred to as the "financial statements"). The
financial highlights for periods ended October 31, 2014, October 31, 2015 and
October 31, 2016 were audited by another independent registered public
accounting firm whose report, dated December 23, 2016, expressed an unqualified
opinion on those financial highlights. In our opinion, the financial statements
present fairly, in all material respects, the financial position of the Fund at
October 31, 2018, the results of its operations, the changes in its net assets,
and the financial highlights for the year ended, and the statement of changes in
net assets and financial highlights for the year ended October 31, 2017, in
conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our
responsibility is to express an opinion on the Fund's financial statements based
on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required to
be independent with respect to the Fund in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Fund is not required to have,
nor were we engaged to perform, an audit of the Fund's internal control over
financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting, but not for the
purpose of expressing an opinion on the effectiveness of the Fund's internal
control over financial reporting. Accordingly, we express no such opinion.
68 Pioneer Global High Yield Fund | Annual Report | 10/31/18
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of October 31, 2018, by correspondence with the custodian and brokers.
Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the Fund's auditor since 2017.
Boston, Massachusetts
December 21, 2018
Pioneer Global High Yield Fund | Annual Report | 10/31/18 69
Additional Information (unaudited)
Qualified interest income is exempt from nonresident alien (NRA) tax
withholding. The percentage of the Fund's ordinary income distributions derived
from qualified interest income was 48.47%.
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the "Adviser"), the
Fund's investment adviser, was an indirect, wholly owned subsidiary of UniCredit
S.p.A. ("UniCredit"). On that date, UniCredit completed the sale of its Pioneer
Investments business, which includes the Adviser, to Amundi (the "Transaction").
As a result of the Transaction, the Adviser became an indirect, wholly owned
subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A. Amundi is
headquartered in Paris, France, and, as of September 30, 2016, had more than
$1.1 trillion in assets under management worldwide.
Deloitte & Touche LLP ("D&T"), the Fund's previous independent registered public
accounting firm, informed the Audit Committee and the Board that it would no
longer be independent with respect to the Fund upon the completion of the
Transaction as a result of certain services being provided to Amundi and Credit
Agricole, and, accordingly, that it intended to resign as the Fund's independent
registered public accounting firm upon the completion of the Transaction. D&T's
resignation was effective on July 3, 2017, when the Transaction was completed.
During the periods as to which D&T has served as the Fund's independent
registered public accounting firm, D&T's reports on the Fund's financial
statements have not contained an adverse opinion or disclaimer of opinion and
have not been qualified or modified as to uncertainty, audit scope or accounting
principles. Further, there have been no disagreements with D&T on any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedure, which, if not resolved to the satisfaction of D&T, would
have caused D&T to make reference to the subject matter of the disagreement in
connection with its report on the financial statements. In addition, there have
been no reportable events of the kind described in Item 304(a)(1)(v) of
Regulation S-K under the Securities Exchange Act of 1934.
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
an independent registered public accounting firm, Ernst & Young LLP ("EY").
70 Pioneer Global High Yield Fund | Annual Report | 10/31/18
Prior to its engagement, EY had advised the Fund's Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities and Exchange
Commission ("SEC"): (a) project management support services to UniCredit in the
Czech Republic, Germany, Italy, Serbia and Slovenia in relation to twenty-two
projects, that were determined to be inconsistent with Rule 2-01(c)(4)(vi) of
Regulation S-X (management functions); (b) two engagements for UniCredit in
Italy where fees were contingent/success based and that were determined to be
inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent fees); (c) four
engagements where legal and expert services were provided to UniCredit in the
Czech Republic and Germany, and twenty engagements where the legal advisory
services were provided to UniCredit in Austria, Czech Republic, Italy and
Poland, that were determined to be inconsistent with Rule 2-01(c)(4)(ix) and (x)
of Regulation S-X (legal and expert services); and (d) two engagements for
UniCredit in Italy involving assistance in the sale of certain assets, that were
determined to be inconsistent with Rule 2-01(c)(4)(viii) of Regulation S-X
(broker-dealer, investment adviser or investment banking services). None of the
foregoing services involved the Fund, any of the other funds in the Pioneer
Family of Funds or any other Pioneer entity sold by UniCredit in the
Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Fund under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Fund, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 71
Approval of Investment Management Agreement
Amundi Pioneer Asset Management, Inc. ("APAM") serves as the investment adviser
to Pioneer Global High Yield Fund (the "Fund") pursuant to an investment
management agreement between APAM and the Fund. In order for APAM to remain the
investment adviser of the Fund, the Trustees of the Fund must determine annually
whether to renew the investment management agreement for the Fund.
The contract review process began in January 2018 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2018, July 2018
and September 2018. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year, and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings, in connection with the review of the Fund's
investment management agreement.
In March 2018, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment management agreement, and reviewed and
discussed the qualifications of the investment management teams for the Fund, as
well as the level of investment by the Fund's portfolio managers in the Fund. In
July 2018, the Trustees, among other things, reviewed the Fund's management fees
and total expense ratios, the financial statements of APAM and its parent
companies, profitability analyses provided by APAM, and analyses from APAM as to
possible economies of scale. The Trustees also reviewed the profitability of the
institutional business of APAM and APAM's affiliate, Amundi Pioneer
Institutional Asset Management, Inc. ("APIAM" and, together with APAM, "Amundi
Pioneer"), as compared to that of APAM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of APAM's and APIAM's institutional accounts, as well as the
different services provided by APAM to the Fund and by APAM and APIAM to the
institutional accounts. The Trustees further considered contract review
materials, including additional materials received in response to the Trustees'
request, in September 2018.
At a meeting held on September 18, 2018, based on their evaluation of the
information provided by APAM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment management agreement for another year. In
72 Pioneer Global High Yield Fund | Annual Report | 10/31/18
approving the renewal of the investment management agreement, the Trustees
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by APAM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed APAM's investment approach
for the Fund and its research process. The Trustees considered the resources of
APAM and the personnel of APAM who provide investment management services to the
Fund. They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. They considered the non-investment resources and personnel
of APAM that are involved in APAM's services to the Fund, including APAM's
compliance, risk management, and legal resources and personnel. The Trustees
noted the substantial attention and high priority given by APAM's senior
management to the Pioneer Fund complex.
The Trustees considered that APAM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
APAM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to APAM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by APAM to the Fund were
satisfactory and consistent with the terms of the investment management
agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by APAM and information comparing the Fund's
performance with the performance of its peer group of funds, as classified by
Morningstar, Inc. (Morningstar), and the performance of the Fund's benchmark
index. They also discuss the Fund's performance with APAM on a regular basis.
The Trustees' regular reviews and discussions were factored into the Trustees'
deliberations concerning the renewal of the investment management agreement.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 73
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees of its peer group of funds as classified by
Morningstar and also to the expense ratios of a peer group of funds selected on
the basis of criteria determined by the Independent Trustees for this purpose
using data provided by Strategic Insight Mutual Fund Research and Consulting,
LLC (Strategic Insight), an independent third party. The peer group comparisons
referred to below are organized in quintiles. Each quintile represents one-fifth
of the peer group. In all peer group comparisons referred to below, first
quintile is most favorable to the Fund's shareowners. The Trustees noted that
they separately review and consider the impact of the Fund's transfer agency and
Fund- and APAM-paid expenses for sub-transfer agency and intermediary
arrangements, and that the results of the most recent such review were
considered in the consideration of the Fund's expense ratio.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the fourth quintile relative to the management fees paid by
other funds in its Morningstar category for the comparable period. The Trustees
also considered the breakpoints in the management fee schedule and the reduced
fee rates above certain asset levels. The Trustees considered that the expense
ratio of the Fund's Class A shares for the most recent fiscal year was in the
fourth quintile relative to its Strategic Insight peer group for the comparable
period. The Trustees considered that the expense ratio of the Fund's Class Y
shares for the most recent fiscal year was in the fourth quintile relative to
its Strategic Insight peer group for the comparable period. The Trustees noted
the resource commitment necessary to manage a fund that invests significantly in
non-U.S. securities.
The Trustees reviewed management fees charged by APAM and APIAM to institutional
and other clients, including publicly offered European funds sponsored by APAM's
affiliates, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered APAM's costs in providing services to the Fund and APAM's and
APIAM's costs in providing services to the other clients and considered the
differences in management fees and profit margins for fund and non-fund
services. In evaluating the fees associated with APAM's and APIAM's client
accounts, the Trustees took into account the respective demands, resources and
complexity associated with the Fund and other client accounts. The Trustees
noted that, in some instances, the fee rates for those clients were lower than
the management fee for the Fund and considered that, under the investment
management agreement with the Fund, APAM performs additional services for the
Fund that it does not provide to those other clients or services that are
broader in scope, including oversight of the Fund's other service providers and
activities related to compliance and the
74 Pioneer Global High Yield Fund | Annual Report | 10/31/18
extensive regulatory and tax regimes to which the Fund is subject. The Trustees
also considered the entrepreneurial risks associated with APAM's management of
the Fund.
The Trustees concluded that the management fee payable by the Fund to APAM was
reasonable in relation to the nature and quality of the services provided by
APAM.
Profitability
The Trustees considered information provided by APAM regarding the profitability
of APAM with respect to the advisory services provided by APAM to the Fund,
including the methodology used by APAM in allocating certain of its costs to the
management of the Fund. The Trustees also considered APAM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results, including the profit margins, realized by APAM and APIAM from
non-fund businesses. The Trustees considered APAM's profit margins in comparison
to the limited industry data available and noted that the profitability of any
adviser was affected by numerous factors, including its organizational structure
and method for allocating expenses. The Trustees concluded that APAM's
profitability with respect to the management of the Fund was not unreasonable.
Economies of Scale
The Trustees considered APAM's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Fund and Fund shareholders. The
Trustees noted the breakpoints in the management fee schedule. The Trustees
recognize that economies of scale are difficult to identify and quantify, and
that, among other factors that may be relevant, are the following: fee levels,
expense subsidization, investment by APAM in research and analytical
capabilities and APAM's commitment and resource allocation to the Fund. The
Trustees noted that profitability also may be an indicator of the availability
of any economies of scale, although profitability may vary for other reasons
including due to reductions in expenses. The Trustees concluded that economies
of scale, if any, were being appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits that APAM enjoys from its
relationship with the Fund. The Trustees considered the character and amount of
fees paid or to be paid by the Fund, other than under the investment management
agreement, for services provided by APAM and its affiliates. The Trustees
further considered the revenues and profitability of APAM's businesses other
than the Fund business. To the extent applicable, the Trustees
Pioneer Global High Yield Fund | Annual Report | 10/31/18 75
also considered the benefits to the Fund and to APAM and its affiliates from
the use of "soft" commission dollars generated by the Fund to pay for research
and brokerage services.
The Trustees considered that Amundi Pioneer is the principal U.S. asset
management business of Amundi, which is one of the largest asset managers
globally. Amundi's worldwide asset management business manages over $1.7
trillion in assets (including the Pioneer Funds). The Trustees considered that
APAM's relationship with Amundi creates potential opportunities for APAM, APIAM
and Amundi that derive from APAM's relationships with the Fund, including
Amundi's ability to market the services of APAM globally. The Trustees noted
that APAM has access to additional research and portfolio management
capabilities as a result of its relationship with Amundi and Amundi's enhanced
global presence that may contribute to an increase in the resources available to
APAM. The Trustees considered that APAM and the Fund receive reciprocal
intangible benefits from the relationship, including mutual brand recognition
and, for the Fund, direct and indirect access to the resources of a large global
asset manager. The Trustees concluded that any such benefits received by APAM as
a result of its relationship with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including the Independent Trustees, concluded that the investment
management agreement for the Fund, including the fees payable thereunder, was
fair and reasonable and voted to approve the proposed renewal of the investment
management agreement.
76 Pioneer Global High Yield Fund | Annual Report | 10/31/18
Trustees, Officers and Service Providers
Investment Adviser
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
DST Asset Manager Solutions, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at www.amundipioneer.com. This information is also available on the Securities
and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations and other directorships they have held during at least the past five
years. Trustees who are interested persons of the Fund within the meaning of the
1940 Act are referred to as Interested Trustees. Trustees who are not interested
persons of the Fund are referred to as Independent Trustees. Each of the
Trustees serves as a Trustee of each of the 43 U.S. registered investment
portfolios for which Amundi Pioneer serves as investment adviser (the "Pioneer
Funds"). The address for all Trustees and all officers of the Fund is 60 State
Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 77
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (68) Trustee since 2006. Private investor (2004 - 2008 and 2013 - Director, Broadridge Financial
Chairman of the Serves until a present); Chairman (2008 - 2013) and Chief Solutions, Inc. (investor
Board and Trustee successor trustee is Executive Officer (2008 - 2012), Quadriserv, communications and securities
elected or earlier Inc. (technology products for securities lending processing provider for
retirement or industry); and Senior Executive Vice President, financial services industry)
removal. The Bank of New York (financial and securities (2009 - present); Director,
services) (1986 - 2004) Quadriserv, Inc. (2005 - 2013);
and Commissioner, New Jersey
State Civil Service Commission
(2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (74) Trustee since 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-
removal. (2010); Executive Vice President and Chief end fund) (2010 - 2017);
Financial Officer, I-trax, Inc. (publicly traded Director of Oxford Analytica,
health care services company) (2004 - 2007); and Inc. (2008 - 2015); and
Executive Vice President and Chief Financial Director of Enterprise
Officer, Pedestal Inc. (internet-based mortgage Community Investment, Inc.
trading company) (2000 - 2002); Private (privately-held affordable
Consultant (1995 - 1997); Managing Director, housing finance company) (1985
Lehman Brothers (1992 - 1995); and Executive, - 2010)
The World Bank (1979 - 1992)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (74) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and
successor trustee is Mellon Institutional Funds
elected or earlier Master Portfolio (oversaw 17
retirement or portfolios in fund complex)
removal. (1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
78 Pioneer Global High Yield Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (71) Trustee since 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 - 2017); and
retirement or Manager of Research Operations and
removal. Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (62) Trustee since 2017. Chief Investment Officer, 1199 SEIU Funds None
Trustee (Advisory Trustee (healthcare workers union pension funds) (2001 -
from 2014 - 2017) present); Vice President - International
Serves until a Investments Group, American International Group,
successor trustee is Inc. (insurance company) (1993 - 2001); Vice
elected or earlier President - Corporate Finance and Treasury
retirement or Group, Citibank, N.A. (1980 - 1986 and 1990 -
removal. 1993); Vice President - Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer of debt
securities) (1988 - 1990); Mortgage Strategies
Group, Shearson Lehman Hutton, Inc. (investment
bank) (1987 - 1988); and Mortgage Strategies
Group, Drexel Burnham Lambert, Ltd. (investment
bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (70) Trustee since 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 (71) Trustee since 2014. Consultant (investment company services) (2012 - None
Trustee Serves until a present); Executive Vice President, BNY Mellon
successor trustee is (financial and investment company services)
elected or earlier (1969 - 2012); Director, BNY International
retirement or Financing Corp. (financial services) (2002 -
removal. 2012); and Director, Mellon Overseas Investment
Corp. (financial services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/18 79
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (56)* Trustee since 2017. Director, CEO and President of Amundi Pioneer None
Trustee, President and Serves until a Asset Management USA, Inc. (since September
Chief Executive Officer successor trustee is 2014); Director, CEO and President of Amundi
elected or earlier Pioneer Asset Management, Inc. (since September
retirement or 2014); Director, CEO and President of Amundi
removal Pioneer Distributor, Inc. (since September
2014); Director, CEO and President of Amundi
Pioneer Institutional Asset Management, Inc.
(since September 2014); Chair, Amundi Pioneer
Asset Management USA, Inc., Amundi Pioneer
Distributor, Inc. and Amundi Pioneer
Institutional Asset Management, Inc. (September
2014 - 2018); Managing Director, Morgan Stanley
Investment Management (2010 - 2013); and
Director of Institutional Business, CEO of
International, Eaton Vance Management (2005 -
2010)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (60)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S. (since
successor trustee is 2010) of Amundi Pioneer Asset Management USA,
elected or earlier Inc.; Executive Vice President and Chief
retirement or Investment Officer, U.S. of Amundi Pioneer
removal (since 2008); Executive Vice President of Amundi
Pioneer Institutional Asset Management, Inc.
(since 2009); and Portfolio Manager of Amundi
Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers
or directors of the Fund's investment adviser and certain of its
affiliates.
80 Pioneer Global High Yield Fund | Annual Report | 10/31/18
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (53) Since 2003. Serves Vice President and Associate General Counsel of None
Secretary and at the discretion of Amundi Pioneer since January 2008; Secretary and
Chief Legal Officer the Board Chief Legal Officer of all of the Pioneer Funds
since June 2010; Assistant Secretary of all of
the Pioneer Funds from September 2003 to May
2010; and Vice President and Senior Counsel of
Amundi Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (57) Since 2010. Serves Fund Governance Director of Amundi Pioneer since None
Assistant Secretary at the discretion of December 2006 and Assistant Secretary of all the
the Board Pioneer Funds since June 2010; Manager - Fund
Governance of Amundi Pioneer from December 2003
to November 2006; and Senior Paralegal of Amundi
Pioneer from January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (55) Since 2010. Serves Senior Counsel of Amundi Pioneer since May 2013 None
Assistant Secretary at the discretion of and Assistant Secretary of all the Pioneer Funds
the Board since June 2010; and Counsel of Amundi Pioneer
from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (58) Since 2008. Serves Vice President - Fund Treasury of Amundi None
Treasurer and at the discretion of Pioneer; Treasurer of all of the Pioneer Funds
Chief Financial and the Board since March 2008; Deputy Treasurer of Amundi
Accounting Officer Pioneer from March 2004 to February 2008; and
Assistant Treasurer of all of the Pioneer Funds
from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (53) Since 2001. Serves Director - Fund Treasury of Amundi Pioneer; and None
Assistant Treasurer at the discretion of Assistant Treasurer of all of the Pioneer Funds
the Board
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (60) Since 2002. Serves Senior Manager - Fund Treasury of Amundi None
Assistant Treasurer at the discretion of Pioneer; and Assistant Treasurer of all of the
the Board Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/18 81
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (38) Since 2009. Serves Senior Manager - Fund Treasury of Amundi Pioneer None
Assistant Treasurer at the discretion of since November 2008; Assistant Treasurer of all
the Board of the Pioneer Funds since January 2009; and
Client Service Manager - Institutional Investor
Services at State Street Bank from March 2003 to
March 2007
------------------------------------------------------------------------------------------------------------------------------------
John Malone (47) Since 2018. Serves Managing Director, Chief Compliance Officer of None
Chief Compliance Officer at the discretion of Amundi Pioneer Asset Management; Amundi Pioneer
the Board Institutional Asset Management, Inc.; and the
Pioneer Funds since September 2018; and Chief
Compliance Officer of Amundi Pioneer
Distributor, Inc. since January 2014.
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (47) Since 2006. Serves Vice President - Investor Services Group of None
Anti-Money Laundering at the discretion of Amundi Pioneer and Anti-Money Laundering Officer
Officer the Board of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
82 Pioneer Global High Yield Fund | Annual Report | 10/31/18
This page is for your notes.
Pioneer Global High Yield Fund | Annual Report | 10/31/18 83
This page is for your notes.
84 Pioneer Global High Yield Fund | Annual Report | 10/31/18
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address us.askamundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2018 Amundi Pioneer Asset Management 19440-12-1218
Pioneer Global Multisector
Income Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2018
--------------------------------------------------------------------------------
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 46
Notes to Financial Statements 53
Report of Independent Registered Public Accounting Firm 72
Additional Information 74
Approval of Investment Management Agreement 76
Trustees, Officers and Service Providers 81
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 1
President's Letter
Despite economic news that has remained generally positive throughout 2018,
market volatility has increased significantly this year compared with 2017.
October was a particularly poor month for both U.S. and global equity markets,
as every major stock market index finished the month in negative territory.
Results have been more mixed on the fixed-income side, with rising interest
rates pushing down most year-to-date returns.
On the economic front, U.S. gross domestic product (GDP) growth exceeded 4% in
the second quarter of 2018 and topped 3% once again in the third quarter. The
low unemployment rate has continued, with initial jobless claims recently
hitting a multi-decade low and consumer and small-business confidence also
achieving levels not seen in many years.
Despite the good economic news, and even though wages have been rising,
inflation expectations have not risen significantly. For its part, the U.S.
Federal Reserve System (the Fed) has continued with its tightening of monetary
policy by raising interest rates three times in 2018, while moving forward with
the tapering of its balance sheet, a process which began in October 2017.
The greater market volatility this year as compared to last year has been driven
by several factors. The aforementioned rising interest rates have been one
reason, while the uncertainty surrounding U.S. trade policy has, at times, also
led to unsettled markets. Of course, in today's global economy, risk factors
extend well beyond U.S. borders, and in recent months investors have grappled
with various issues on the international front, including questions surrounding
the United Kingdom's Brexit negotiations, concerns about the budgetary policies
of the populist Italian government, and the potential impact of Turkey's
economic challenges on European banks. Moreover, while trade tensions between
the U.S. and Europe have moderated, questions about the future of the
U.S./China trade relationship remain unresolved, and any major fracture in that
relationship could have a negative impact on China's economy and, by extension,
on its Asian trade partners.
With regard to our market outlook, over the medium term, we believe the
fundamental investment case for U.S. equities remains in place, with support
from the fairly positive economic backdrop and with an additional lift
potentially coming from the investment side as U.S. businesses consider
increasing capital expenditures. We do believe market volatility will persist
and, therefore, careful selection of investment themes, sector allocations, and
individual stocks will be increasingly relevant to overall performance, as the
2 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
maturity of the economic and market cycles could eventually become headwinds. We
believe a focus on owning shares of quality companies trading at reasonable
prices is key to navigating the current equity-market phase.
In fixed income, we have taken a more cautious approach across our core
portfolios with regard to credit-sensitive debt such as corporate bonds,
favoring quality and liquidity. As interest rates have risen, we find that
short- and intermediate-term U.S. Treasuries have become more attractive, and
that agency mortgage-backed securities (MBS) and high-quality, non-agency MBS
now also offer lower downside risk. In general, we think structured sectors
(such as asset-backed securities and MBS) are more attractive than corporate
sectors.
We believe this year's market fluctuations as well as increased risk factors
within the global economy have served to remind investors of the importance of
active management. Since 1928, active management has been the foundation of
Amundi Pioneer's investment approach. We believe active management is especially
important during periods of volatility, and that our shareowners can benefit
from the experience and tenure of our investment teams, who work collaboratively
to make active and informed decisions across our funds.
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
October 31, 2018
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 3
Portfolio Management Discussion | 10/31/18
In the following interview, Andrew Feltus, Paresh Upadhyaya, and Bradley R.
Komenda discuss the factors that affected the performance of Pioneer Global
Multisector Income Fund during the 12-month period ended October 31, 2018. Mr.
Feltus, Managing Director, Co-Director of High Yield, and a portfolio manager at
Amundi Pioneer Asset Management, Inc. ("Amundi Pioneer"), Mr. Upadhyaya,
Director of Currency Strategy, a senior vice president, and a portfolio manager
at Amundi Pioneer, and Bradley R. Komenda*, Deputy Director of Investment-Grade
Corporates, 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, Chief Investment Officer, U.S., and a
portfolio manager at Amundi Pioneer.
Q How did the Fund perform during the 12-month period ended October 31, 2018?
A Pioneer Global Multisector Income Fund's Class A shares returned -4.41% at
net asset value during the 12-month period ended October 31, 2018, while
the Fund's benchmark, the Bloomberg Barclays Global Aggregate Bond Index
(the Bloomberg Barclays Index), returned -2.05%. During the same period,
the average return of the 310 mutual funds in Morningstar's World Bond
Funds category was -1.91%.
Q How would you describe the investment environment for fixed-income
securities during the 12-month period ended October 31, 2018?
A Fixed-income markets experienced a number of headwinds over the past year,
leading to a negative return for the Fund's benchmark, the Bloomberg
Barclays Index. The U.S. economy picked up steam, with 4.2% gross domestic
product (GDP) growth in the second quarter and estimates calling for GDP
growth in excess of 3% for 2018 as a whole. Accelerating growth prompted
the U.S. Federal Reserve (the Fed) to continue tightening monetary policy.
The Fed raised interest rates by a quarter point on three separate
occasions between January and September 2018, bringing the total number of
rate hikes to eight since it began moving off of its zero-interest-rate
policy in late 2015. In addition, the Fed continued to withdraw liquidity
from the markets by moving forward with the reduction of its balance sheet,
a process that began in October 2017.
Those developments weighed heavily on the interest-rate-sensitive segments
of the domestic bond market during the period, as U.S. Treasury yields
surged, Treasury prices fell, and both corporate bonds and securitized
assets posted negative returns. Emerging markets bonds, which
* Mr. Komenda became a portfolio manager of the Fund effective June 8, 2018.
4 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
experienced the additional challenges of political and economic turmoil in
a number of larger countries within the emerging markets category, produced
particularly weak performance during the 12-month period. However,
high-yield bonds and senior bank loans performed reasonably well when
compared with investment-grade issues. High-yield securities benefited from
improving economic growth and the concurrent improvement in the default
outlook, while the floating-rate feature of bank loans attracted hearty
investor demand.
The strength of the U.S. economy represented a contrast to the developed
international markets, which generally continued to experience sluggish
growth. The divergence, together with the Fed's more aggressive approach to
tightening monetary policy compared with the actions of other global
central banks, resulted in robust gains for the U.S. dollar (USD) versus
most major foreign currencies.
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, 2018?
A The Fund's currency positioning played the largest role in its benchmark-
relative underperformance during the period. We entered the period with
long portfolio positions against the USD in the euro, Japanese yen, Swedish
krona, and Norwegian krone, which was consistent with the stronger economic
growth we were seeing in the overseas economies at that time. That aspect
of our investment strategy initially helped the Fund's performance, as the
USD did in fact decline versus other currencies in the initial months of
the period. Signs of slower-than-expected economic growth overseas in early
February touched off a rally in the USD, however, causing the Fund's
currency positioning to begin working against benchmark-relative returns.
Although we subsequently reduced the extent of the portfolio's long
positions in developed-market currencies, we did not act soon enough to
avoid the performance downturn.
The Fund's benchmark-relative returns were also negatively affected by
exposure to emerging markets currencies, which were particularly hard hit
by rising U.S. rates and worries about the impact a possible trade war
could have on global economic growth. As was the case with the Fund's
developed-market positions, we reduced the portfolio's long currency
exposures in that area. While the decision limited the impact of further
weakness in emerging currencies, the previous sell-off was enough to cost
the Fund some benchmark-relative performance.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 5
On the plus side, the Fund's relative returns benefited from our decisions
regarding portfolio duration. (Duration is 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.) We kept the
Fund's duration shorter than that of the Bloomberg Barclays Index
throughout the fiscal year, in response to the backdrop of accelerating
domestic economic growth as well as rising interest rates. The decision
contributed positively to the Fund's relative performance by insulating the
portfolio from the full effect of rising yields. Later in the period, we
moved the Fund's duration closer to a neutral positioning versus the
benchmark, based on the belief that market expectations had caught up to
our view regarding the Fed's tighter monetary policy.
Asset allocation decisions were another positive contributor to the Fund's
benchmark-relative returns during the period. We maintained an emphasis on
the credit-sensitive sectors - or sectors more sensitive to default risk
than interest-rate risk - and an underweight to interest-rate-sensitive
government bonds within the developed markets. That proved to be the
correct portfolio positioning during a time in which economic strength was
the key theme driving market performance. In addition, a portfolio
allocation to bank loans, which attracted robust investor demand due to
their floating-rate feature, posted a positive return and aided the Fund's
benchmark-relative performance. However, the Fund's allocation to emerging
markets debt detracted from relative returns.
Q Did the Fund invest in any derivative securities? If so, did the
derivatives have a material impact on benchmark-relative performance during
the 12-month period ended October 31, 2018?
A We invested the Fund in three types of derivatives during the period:
forward foreign currency transactions (currency forwards), U.S. Treasury
futures, and credit default swaps. We invested in the currency forwards to
help manage portfolio risk with regard to changes in relative currency
values. The currency forwards had a modest, negative effect on relative
performance. We invested in the Treasury futures to help manage interest-
rate risk. The Treasury futures helped the Fund's benchmark-relative
performance significantly, as the Fund's short-duration stance contributed
to returns during a period that saw Treasury yields rise. Finally, the Fund
had only a very small exposure to credit default swaps, which had a
slightly positive impact on relative results.
6 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
Q Were there any changes in the Fund's distributions** to shareholders during
the 12-month period ended October 31, 2018?
A The Fund's distributions to shareholders rose in comparison to the same
period one year ago, due to an increase in yields across the fixed-income
markets.
Q How was the Fund positioned as of period-end, and does the positioning
reflect your broader outlook?
A The Fund's overall positioning reflects our view that the backdrop of
healthy economic growth, higher inflation, and tighter Fed monetary policy
is likely to remain in place, as is the possibility of increased market
volatility. In that vein, we have maintained a selective investment
approach designed to manage portfolio risk and to capitalize on potential
values as they emerge.
We have continued to look for opportunities in asset categories that
provide portfolio diversification*** and that may demonstrate lower
sensitivity to rising interest rates. The Fund's position in bank loans
reflects that focus, since loans have tended to perform well when rates are
rising. We also have maintained an allocation to insurance-linked
securities (ILS), including so-called "catastrophe bonds," based on their
attractive yields and low correlation to other market segments. However, we
have reduced the Fund's ILS weighting, somewhat, in response to richer
valuations in that segment of the market. We view Treasury
Inflation-Protected Securities (TIPS) as another potential source of
portfolio diversification, in that they may help offset rising inflation --
a development that would likely have a negative effect on rate-sensitive
assets.
In addition, we have continued to emphasize investments in the credit-
sensitive sectors over investments in government issues. We see little
opportunity for upside in U.S. Treasuries or in the low-yielding sovereign
bonds of Japan and the euro bloc. Conversely, we are maintaining an
overweight portfolio position in emerging markets bonds. While risk has
risen for the emerging markets as a whole, select economies have been
benefiting from stronger global economic growth and increased demand in
their domestic markets. The recent sell-off in the emerging markets has
created more attractive valuations in the category, which we believe
represents a potential investment opportunity. With that said, we have
reduced the Fund's allocations to specific emerging markets countries that
appear more vulnerable to broader macroeconomic concerns, including
Argentina, Brazil, Indonesia, and India.
** Distributions are not guaranteed.
*** Diversification does not assure a profit nor protect against loss.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 7
With regard to currencies, the Fund ended the 12-month period with a
smaller-than-normal position in the emerging markets, in response to the
backdrop of tighter global financial conditions. At period-end, the
portfolio also had an overweight in the Japanese yen in an attempt to
capitalize on that currency's historic tendency to benefit from "flights to
quality" during times of increased volatility in the world financial
markets.
On the domestic side, we were active in managing the Fund's weighting in
high-yield bonds during the 12-month period. In the early part of the
period, we reduced the size of the Fund's high-yield position in order to
moderate overall portfolio risk and to lighten the weighting in an area
where we thought yield spreads had moved to unattractive levels. (Credit,
or yield spreads, are commonly defined as the differences in yield between
Treasuries and other types of fixed-income securities with similar
maturities.) Later in the Fund's fiscal year, however, we began to build
back the high-yield position in order to capitalize on the category's more
compelling valuations. The Fund was overweight in high yield at the close
of the 12-month period.
We also have retained portfolio allocations to both investment-grade
corporates and securitized assets (such as mortgage-backed securities and
asset-backed securities), with a selective approach in both areas. Within
corporates, the Fund is overweight in financials and in the mid-stream
energy sector, as we believe those areas of the market offer better
downside protection against event risk.
In total, we believe the investment strategies outlined here may better
position the Fund to take advantage of the wide range of opportunities and
risk factors often observed across the global fixed-income markets.
Please refer to the Schedule of Investments on pages 17-45 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.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, and economic and political
conditions.
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.
8 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
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 | 10/31/18 9
Portfolio Summary | 10/31/18
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Corporate Bonds 34.1%
Foreign Government Bonds 24.0%
U.S. Government and Agency Obligations 20.6%
Senior Secured Floating Rate Loan Interests 7.7%
Collateralized Mortgage Obligations 6.6%
Affiliated Closed-End Fund(k) 3.4%
Municipal Bonds 1.5%
Convertible Preferred Stocks 1.1%
Asset Backed Securities 0.4%
Supranational Bonds 0.3%
Insurance-Linked Securities 0.2%
Currency Put Options Purchased 0.1%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 54.8%
United Kingdom 7.5%
Japan 6.3%
Sweden 2.9%
France 2.9%
Netherlands 2.8%
Argentina 1.7%
Norway 1.6%
Mexico 1.4%
Italy 1.4%
Uruguay 1.3%
Nigeria 1.2%
Luxembourg 1.2%
Ireland 1.1%
Germany 1.0%
Other (individually less than 1%) 10.9%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investments)*
1. Pioneer ILS Interval Fund(k) 3.42%
--------------------------------------------------------------------------------
2. Japan Government Ten Year Bond, 0.1%, 9/20/26 2.13
--------------------------------------------------------------------------------
3. Sweden Government Bond, 4.25%, 3/12/19 2.13
--------------------------------------------------------------------------------
4. U.S. Treasury Notes, 2.875%, 10/31/23 1.97
--------------------------------------------------------------------------------
5. Japan Government Twenty Year Bond, 0.6%, 12/20/37 1.94
--------------------------------------------------------------------------------
6. U.S. Treasury Bills, 11/29/18 1.85
--------------------------------------------------------------------------------
7. Fannie Mae, 4.0%, 11/1/47 (TBA) 1.80
--------------------------------------------------------------------------------
8. Norway Government Bond, 4.5%, 5/22/19 (144A) 1.63
--------------------------------------------------------------------------------
9. United Kingdom Gilt, 3.5%, 1/22/45 1.53
--------------------------------------------------------------------------------
10. International Finance Corp., 6.3%, 11/25/24 1.51
--------------------------------------------------------------------------------
* Excludes temporary cash investments and all derivative contracts except
for options purchased. The Fund is actively managed, and current holdings
may be different. The holdings listed should not be considered
recommendations to buy or sell any securities listed.
(k) Pioneer ILS Interval Fund is an affiliated fund managed by Amundi
Pioneer Asset Management, Inc., (the "Adviser").
10 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
Prices and Distributions | 10/31/18
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/18 10/31/17
--------------------------------------------------------------------------------
A $ 10.00 $ 10.70
--------------------------------------------------------------------------------
C $ 10.03 $ 10.73
--------------------------------------------------------------------------------
Y $ 10.08 $ 10.80
--------------------------------------------------------------------------------
Distributions per Share: 11/1/17-10/31/18
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term Tax Return
Class Income Capital Gains Capital Gains of Capital
--------------------------------------------------------------------------------
A $ 0.0520 $ -- $ -- $ 0.1850
--------------------------------------------------------------------------------
C $ 0.0377 $ -- $ -- $ 0.1112
--------------------------------------------------------------------------------
Y $ 0.0570 $ -- $ -- $ 0.2086
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
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 | 10/31/18 11
Performance Update | 10/31/18 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer 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, 2018)
--------------------------------------------------------------------------------
BBG
Barclays
Net Public Global
Asset Offering Aggregate
Value Price Bond
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life of Class
(12/27/2007) 4.26% 3.79% 3.16%
5 years 1.35 0.42 0.33
1 year -4.41 -8.71 -2.05
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.20% 1.04%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Multisector Bloomberg Barclays Global
Income Fund Aggregate Bond Index
10/08 $ 9,550 $ 10,000
10/09 $ 11,611 $ 11,841
10/10 $ 12,448 $ 12,657
10/11 $ 12,849 $ 13,172
10/12 $ 13,617 $ 13,639
10/13 $ 13,557 $ 13,429
10/14 $ 13,985 $ 13,458
10/15 $ 13,846 $ 13,045
10/16 $ 14,621 $ 13,774
10/17 $ 15,169 $ 13,936
10/18 $ 14,500 $ 13,650
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. POP
returns reflect deduction of maximum 4.50% sales charge. NAV returns would have
been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2019, 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 | 10/31/18
Performance Update | 10/31/18 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer 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, 2018)
--------------------------------------------------------------------------------
BBG
Barclays
Global
Aggregate
If If Bond
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life of Class
(12/27/2007) 3.40% 3.40% 3.16%
5 years 0.48 0.48 0.33
1 year -5.19 -5.19 -2.05
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.28% 1.94%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Multisector Bloomberg Barclays Global
Income Fund Aggregate Bond Index
10/08 $ 10,000 $ 10,000
10/09 $ 12,055 $ 11,841
10/10 $ 12,833 $ 12,657
10/11 $ 13,140 $ 13,172
10/12 $ 13,809 $ 13,639
10/13 $ 13,638 $ 13,429
10/14 $ 13,943 $ 13,458
10/15 $ 13,682 $ 13,045
10/16 $ 14,321 $ 13,774
10/17 $ 14,733 $ 13,936
10/18 $ 13,968 $ 13,650
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. NAV returns would have been lower had sales charges
been reflected. All results are historical and assume the reinvestment of
dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2019, 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 | 10/31/18 13
Performance Update | 10/31/18 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer 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, 2018)
--------------------------------------------------------------------------------
BBG
Barclays
Net Global
Asset Aggregate
Value Bond
Period (NAV) Index
--------------------------------------------------------------------------------
Life of Class
(12/27/2007) 4.52% 3.16%
5 years 1.60 0.33
1 year -4.29 -2.05
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2018)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.24% 0.79%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global Multisector Bloomberg Barclays Global
Income Fund Aggregate Bond Index
10/08 $ 5,000,000 $ 5,000,000
10/09 $ 6,084,426 $ 5,920,600
10/10 $ 6,539,551 $ 6,328,327
10/11 $ 6,778,889 $ 6,586,220
10/12 $ 7,203,399 $ 6,819,452
10/13 $ 7,185,284 $ 6,714,396
10/14 $ 7,430,696 $ 6,729,201
10/15 $ 7,384,480 $ 6,522,341
10/16 $ 7,808,069 $ 6,886,974
10/17 $ 8,127,831 $ 6,967,974
10/18 $ 7,778,909 $ 6,825,174
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through March 1, 2019, for Class Y shares. There can be no assurance that
Amundi Pioneer will extend the expense limitation beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
14 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global Multisector
Income Fund
Based on actual returns from May 1, 2018, through October 31, 2018.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 5/1/18 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $ 957.91 $ 954.01 $ 959.59
on 10/31/18
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 4.94 $ 8.91 $ 3.70
--------------------------------------------------------------------------------
* 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 | 10/31/18 15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global Multisector Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2018, through October 31, 2018.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 5/1/18 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,020.16 $1,016.08 $1,021.42
on 10/31/18
--------------------------------------------------------------------------------
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 | 10/31/18
Schedule of Investments | 10/31/18
-----------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 98.8%
CONVERTIBLE PREFERRED STOCKS --
1.2% of Net Assets
BANKS -- 1.2%
Diversified Banks -- 1.2%
229(a) Bank of America Corp., 7.25% $ 291,128
220(a) Wells Fargo & Co., 7.5% 279,838
------------
Total Banks $ 570,966
-----------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $565,411) $ 570,966
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($)
-----------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 0.4% of Net Assets
BANKS -- 0.4%
Thrifts & Mortgage Finance -- 0.4%
70,000 Hardee's Funding LLC, Series 2018-1A, Class A2II,
4.959%, 6/20/48 (144A) $ 69,531
100,000 Progress Residential Trust, Series 2017-SFR1, Class E,
4.261%, 8/17/34 (144A) 98,074
39,459(b) RCO Mortgage LLC, Series 2017-1, Class A1, 3.375%,
8/25/22 (144A) 39,199
201(b) Structured Asset Securities Corp., Series 2004-19XS,
Class A6B, 5.005%, 10/25/34 206
4,733(b) Terwin Mortgage Trust, Series 2005-16HE, Class AF2,
4.761%, 9/25/36 4,731
------------
Total Banks $ 211,741
-----------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $214,294) $ 211,741
-----------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS --
6.7% of Net Assets
BANKS -- 6.0%
Thrifts & Mortgage Finance -- 6.0%
47,309(c) Agate Bay Mortgage Trust, Series 2015-1, Class A13,
3.5%, 1/25/45 (144A) $ 45,645
490(d) Alternative Loan Trust, Series 2003-14T1, Class A9,
2.731% (1 Month USD LIBOR + 45 bps), 8/25/18 322
100,000(d) Arbor Realty Commercial Real Estate Notes, Ltd.,
Series 2017-FL1, Class B, 4.78% (1 Month USD
LIBOR + 250 bps), 4/15/27 (144A) 102,250
100,000(d) BAMLL Commercial Mortgage Securities Trust, Series
2014-FL1, Class B, 4.358% (1 Month USD
LIBOR + 220 bps), 12/15/31 (144A) 100,142
80,000 BANK, Series 2017-BNK5, Class AS, 3.624%, 6/15/60 77,561
50,000(c) BANK, Series 2017-BNK8, Class B, 3.931%, 11/15/50 48,814
59,223(b)(e) Bayview Commercial Asset Trust, Series 2007-2A,
Class IO, 7/25/37 (144A) --
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 17
Schedule of Investments | 10/31/18 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
150,000 Benchmark Mortgage Trust, Series 2018-B2, Class A4,
3.615%, 2/15/51 $ 146,177
2,819(c) CHL Mortgage Pass-Through Trust, Series 2003-56,
Class 4A2, 4.172%, 12/25/33 2,908
100,000(c) Citigroup Commercial Mortgage Trust, Series 2014-GC19,
Class B, 4.805%, 3/10/47 102,932
75,000(c) Citigroup Commercial Mortgage Trust, Series 2014-GC25,
Class B, 4.345%, 10/10/47 75,628
100,000 Citigroup Commercial Mortgage Trust, Series 2015-GC27,
Class A5, 3.137%, 2/10/48 96,365
250,000 Citigroup Commercial Mortgage Trust, Series 2016-P5,
Class D, 3.0%, 10/10/49 (144A) 210,509
100,000(d) CLNS Trust, Series 2017-IKPR, Class C, 3.387%
(1 Month USD LIBOR + 110 bps), 6/11/32 (144A) 99,874
100,000(d) Cold Storage Trust, Series 2017-ICE3, Class C, 3.63%
(1 Month USD LIBOR + 135 bps), 4/15/36 (144A) 100,153
50,000 COMM Mortgage Trust, Series 2013-LC6, Class A4,
2.941%, 1/10/46 48,869
100,000(c) COMM Mortgage Trust, Series 2015-CR23, Class CMD,
3.685%, 5/10/48 (144A) 98,977
100,000(c) COMM Mortgage Trust, Series 2015-CR25, Class B,
4.545%, 8/10/48 101,683
88,219 Commercial Mortgage Pass Through Certificates,
Series 2012-CR3, Class A3, 2.822%, 10/15/45 86,232
242,459 Commercial Mortgage Pass Through Certificates,
Series 2016-CR28, Class AHR, 3.651%, 2/10/49 237,319
50,000(c) CSAIL Commercial Mortgage Trust, Series 2016-C5,
Class C, 4.537%, 11/15/48 49,435
25,000 GS Mortgage Securities Corp. II, Series 2013-GC10,
Class B, 3.682%, 2/10/46 (144A) 24,522
150,000(c) GS Mortgage Securities RE-Remic Trust, Series
2015-FRR1, Class K3A, 3.072%, 6/27/41 149,701
100,000(d) IMT Trust, Series 2017-APTS, Class BFL, 3.23% (1 Month
USD LIBOR + 95 bps), 6/15/34 (144A) 99,969
45,616(d) Interstar Millennium Trust, Series 2003-3G, Class A2,
2.881% (3 Month USD LIBOR + 50 bps), 9/27/35 44,453
26,188 JP Morgan Chase Commercial Mortgage Securities Trust,
Series 2011-C5, Class A3, 4.171%, 8/15/46 26,612
75,000 JP Morgan Chase Commercial Mortgage Securities Trust,
Series 2012-LC9, Class A5, 2.84%, 12/15/47 72,818
71,708(c) JP Morgan Mortgage Trust, Series 2016-3, Class 2A1,
3.0%, 10/25/46 (144A) 69,714
50,000 JPMBB Commercial Mortgage Securities Trust, Series
2014-C22, Class A4, 3.801%, 9/15/47 50,139
199,520(c) Mill City Mortgage Loan Trust, Series 2017-3, Class M2,
3.25%, 1/25/61 (144A) 188,397
100,000(c) Morgan Stanley Bank of America Merrill Lynch Trust,
Series 2015-C22, Class D, 4.237%, 4/15/48 (144A) 87,777
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
105,000 Morgan Stanley Capital I Trust, Series 2016-UBS9,
Class D, 3.0%, 3/15/49 (144A) $ 88,087
GBP 31,861(d) Paragon Secured Finance No. 1 Plc, Series 1, Class A,
1.202% (3 Month GBP LIBOR + 40 bps), 11/15/35 40,693
205,623(c) Sequoia Mortgage Trust, Series 2013-4, Class A2,
2.5%, 4/25/43 189,238
------------
Total Banks $ 2,963,915
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.0%+
Other Diversified Financial Services -- 0.0%+
69(d) RALI Trust, Series 2002-QS16, Class A2, 2.831%
(1 Month USD LIBOR + 55 bps), 10/25/17 $ 69
------------
Total Diversified Financials $ 69
-----------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.7%
4,909 Federal National Mortgage Association REMICS,
Series 2009-36, Class HX, 4.5%, 6/25/29 $ 4,995
45,000(c) FREMF Mortgage Trust, Series 2010-K9, Class B,
5.207%, 9/25/45 (144A) 46,285
50,000(c) FREMF Mortgage Trust, Series 2015-K51, Class B,
3.953%, 10/25/48 (144A) 48,788
19,932 Government National Mortgage Association, Series
2005-61, Class UZ, 5.25%, 8/16/35 20,899
19,116 Government National Mortgage Association, Series
2009-83, Class EB, 4.5%, 9/20/39 19,723
195,259 Government National Mortgage Association, Series
2018-20, Class A, 2.5%, 9/16/49 189,618
------------
Total Government $ 330,308
-----------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $3,367,828) $ 3,294,292
-----------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 34.9% of Net Assets
AUTOMOBILES & COMPONENTS -- 0.4%
Automobile Manufacturers -- 0.4%
110,000 Ford Motor Co., 4.346%, 12/8/26 $ 99,757
90,000 General Motors Co., 6.6%, 4/1/36 92,101
------------
Total Automobiles & Components $ 191,858
-----------------------------------------------------------------------------------------------------
BANKS -- 6.2%
Diversified Banks -- 5.6%
200,000 Access Bank Plc, 10.5%, 10/19/21 (144A) $ 212,880
EUR 200,000(c) Barclays Plc, 2.625% (5 Year EUR Swap Rate + 245
bps), 11/11/25 229,044
EUR 150,000 BNP Paribas SA, 2.375%, 2/17/25 173,436
EUR 200,000 BPCE SA, 2.875%, 4/22/26 237,449
EUR 200,000 CaixaBank SA, 1.125%, 5/17/24 220,532
75,000 Cooperatieve Rabobank UA, 3.875%, 2/8/22 75,400
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 19
Schedule of Investments | 10/31/18 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Diversified Banks -- (continued)
EUR 200,000(a)(c) Erste Group Bank AG, 8.875% (5 Year EUR Swap
Rate + 902 bps) $ 259,551
EUR 100,000 HSBC Holdings Plc, 0.875%, 9/6/24 111,220
EUR 200,000(c) ING Groep NV, 3.0% (5 Year EUR Swap Rate + 285
bps), 4/11/28 237,516
EUR 200,000(a)(c) Lloyds Banking Group Plc, 6.375% (5 Year EUR Swap
Rate + 529 bps) 237,705
EUR 100,000(d) Mediobanca Banca di Credito Finanziario S.p.A.,
0.481% (3 Month EURIBOR + 80 bps), 5/18/22 107,458
200,000 QNB Finansbank AS, 4.875%, 5/19/22 (144A) 184,712
200,000(a)(c) Royal Bank of Scotland Group Plc, 8.0% (5 Year USD
Swap Rate + 572 bps) 206,375
EUR 200,000 UBS Group Funding Switzerland AG, 1.75%, 11/16/22 235,028
------------
$ 2,728,306
-----------------------------------------------------------------------------------------------------
Regional Banks -- 0.2%
90,000(c) SunTrust Bank, 2.59% (3 Month USD LIBOR + 30 bps),
1/29/21 $ 89,095
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.4%
EUR 100,000 Leeds Building Society, 1.375%, 5/5/22 $ 114,921
EUR 100,000 Nykredit Realkredit AS, 0.75%, 7/14/21 114,304
------------
$ 229,225
------------
Total Banks $ 3,046,626
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.8%
Aerospace & Defense -- 0.4%
50,000 Embraer Netherlands Finance BV, 5.4%, 2/1/27 $ 51,612
125,000 Rockwell Collins, Inc., 3.2%, 3/15/24 119,703
40,000 United Technologies Corp., 4.125%, 11/16/28 39,288
------------
$ 210,603
-----------------------------------------------------------------------------------------------------
Building Products -- 0.1%
35,000 Owens Corning, 3.4%, 8/15/26 $ 31,702
35,000 Owens Corning, 4.2%, 12/1/24 34,526
------------
$ 66,228
-----------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.3%
EUR 100,000 Legrand SA, 1.875%, 7/6/32 $ 116,975
------------
Total Capital Goods $ 393,806
-----------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.3%
Casinos & Gaming -- 0.1%
50,000 Scientific Games International, Inc., 10.0%, 12/1/22 $ 52,250
-----------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.2%
EUR 100,000 Accor SA, 1.25%, 1/25/24 $ 113,837
------------
Total Consumer Services $ 166,087
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.6%
Consumer Finance -- 1.8%
125,000 Capital One Financial Corp., 4.25%, 4/30/25 $ 123,166
INR 59,920,000 International Finance Corp., 6.3%, 11/25/24 756,940
------------
$ 880,106
-----------------------------------------------------------------------------------------------------
Diversified Capital Markets -- 1.2%
200,000(a)(c) Credit Suisse Group AG, 7.125% (5 Year USD Swap
Rate + 511 bps) $ 203,000
150,000 Freedom Mortgage Corp., 8.125%, 11/15/24 (144A) 138,750
EUR 200,000(a)(c) Intesa Sanpaolo S.p.A., 7.75% (5 Year EUR Swap
Rate + 719 bps) 231,698
------------
$ 573,448
-----------------------------------------------------------------------------------------------------
Financial Exchanges & Data -- 0.1%
20,000 Moody's Corp., 3.25%, 6/7/21 $ 19,881
-----------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.7%
EUR 100,000 Goldman Sachs Group, Inc., 1.625%, 7/27/26 $ 111,987
105,000(c) Goldman Sachs Group, Inc., 4.223% (3 Month USD
LIBOR + 130 bps), 5/1/29 101,805
75,000 Morgan Stanley, 4.1%, 5/22/23 74,868
50,000 Morgan Stanley, 4.875%, 11/1/22 51,582
------------
$ 340,242
-----------------------------------------------------------------------------------------------------
Other Diversified Financial Services -- 0.1%
NZD 100,000 JPMorgan Chase & Co., 4.25%, 11/2/18 $ 65,198
-----------------------------------------------------------------------------------------------------
Specialized Finance -- 0.7%
56,000 Cantor Fitzgerald LP, 7.875%, 10/15/19 (144A) $ 58,080
200,000 Gerdau Trade, Inc., 4.875%, 10/24/27 (144A) 185,600
EUR 100,000 Holcim Finance Luxembourg SA, 2.25%, 5/26/28 110,921
------------
$ 354,601
------------
Total Diversified Financials $ 2,233,476
-----------------------------------------------------------------------------------------------------
ENERGY -- 4.1%
Integrated Oil & Gas -- 1.2%
EUR 175,000 BP Capital Markets Plc, 1.373%, 3/3/22 $ 205,489
EUR 200,000(c) Repsol International Finance BV, 4.5% (10 Year EUR
Swap Rate + 420 bps), 3/25/75 240,716
EUR 100,000(a)(c) TOTAL SA, 2.25% (5 Year EUR Swap Rate + 186 bps) 115,577
ARS 2,154,200 YPF SA, 16.5%, 5/9/22 (144A) 37,354
------------
$ 599,136
-----------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.3%
120,000 Continental Resources, Inc., 4.375%, 1/15/28 $ 116,001
-----------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.6%
85,000 EnLink Midstream Partners LP, 5.45%, 6/1/47 $ 71,618
80,000 Marathon Petroleum Corp., 5.375%, 10/1/22 (144A) 81,362
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 21
Schedule of Investments | 10/31/18 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- (continued)
125,000 Phillips 66 Partners LP, 3.75%, 3/1/28 $ 115,725
29,000 Valero Energy Corp., 6.625%, 6/15/37 33,207
------------
$ 301,912
-----------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 2.0%
55,000 Cheniere Energy Partners LP, 5.25%, 10/1/25 $ 53,969
75,000 Enable Midstream Partners LP, 3.9%, 5/15/24 72,233
100,000 Enable Midstream Partners LP, 4.4%, 3/15/27 94,716
100,000 Energy Transfer Equity LP, 5.875%, 1/15/24 105,125
60,000 Energy Transfer Partners LP, 6.0%, 6/15/48 59,456
81,000 Enterprise Products Operating LLC, 2.8%, 2/15/21 79,805
185,000 Kinder Morgan, Inc., 5.55%, 6/1/45 185,150
125,000 MPLX LP, 4.875%, 12/1/24 127,999
60,000 Sabine Pass Liquefaction LLC, 5.0%, 3/15/27 60,279
60,000 Sunoco Logistics Partners Operations LP, 6.1%, 2/15/42 59,215
57,000 Williams Cos., Inc., 5.75%, 6/24/44 57,202
13,000 Williams Cos., Inc., 7.75%, 6/15/31 15,515
------------
$ 970,664
------------
Total Energy $ 1,987,713
-----------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.5%
Drug Retail -- 0.4%
165,000 CVS Health Corp., 4.1%, 3/25/25 $ 163,005
11,672 CVS Pass-Through Trust, 5.773%, 1/10/33 (144A) 12,268
------------
$ 175,273
-----------------------------------------------------------------------------------------------------
Food Retail -- 0.1%
75,000 Alimentation Couche-Tard, Inc., 3.55%, 7/26/27 (144A) $ 69,329
------------
Total Food & Staples Retailing $ 244,602
-----------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.1%
Distillers & Vintners -- 0.1%
55,000 Constellation Brands, Inc., 2.25%, 11/6/20 $ 53,717
-----------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 0.5%
100,000 Bacardi, Ltd., 5.3%, 5/15/48 (144A) $ 92,993
GBP 100,000 Boparan Finance Plc, 5.5%, 7/15/21 (144A) 111,878
65,000 Smithfield Foods, Inc., 2.7%, 1/31/20 (144A) 63,886
------------
$ 268,757
-----------------------------------------------------------------------------------------------------
Tobacco -- 0.5%
EUR 100,000 BAT Capital Corp., 1.125%, 11/16/23 $ 113,074
EUR 100,000 Imperial Brands Finance Plc, 2.25%, 2/26/21 117,956
------------
$ 231,030
------------
Total Food, Beverage & Tobacco $ 553,504
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 2.1%
Health Care Distributors -- 0.2%
116,000 Cardinal Health, Inc., 3.079%, 6/15/24 $ 108,850
-----------------------------------------------------------------------------------------------------
Health Care Equipment -- 0.9%
24,000 Abbott Laboratories, 3.75%, 11/30/26 $ 23,628
190,000(d) Becton Dickinson & Co., 3.261% (3 Month USD
LIBOR + 88 bps), 12/29/20 190,152
100,000 Boston Scientific Corp., 4.0%, 3/1/28 97,751
120,000 Medtronic, Inc., 3.15%, 3/15/22 118,668
------------
$ 430,199
-----------------------------------------------------------------------------------------------------
Health Care Facilities -- 0.1%
45,000 Halfmoon Parent, Inc., 4.375%, 10/15/28 (144A) $ 44,012
-----------------------------------------------------------------------------------------------------
Health Care Services -- 0.3%
173,000 Rede D'or Finance S.a.r.l., 4.95%, 1/17/28 (144A) $ 152,977
-----------------------------------------------------------------------------------------------------
Health Care Technology -- 0.2%
EUR 100,000 Quintiles IMS, Inc., 2.875%, 9/15/25 (144A) $ 110,458
-----------------------------------------------------------------------------------------------------
Managed Health Care -- 0.4%
38,000 Anthem, Inc., 3.35%, 12/1/24 $ 36,613
40,000 Anthem, Inc., 3.65%, 12/1/27 37,391
6,000 Anthem, Inc., 4.101%, 3/1/28 5,800
30,000 Centene Corp., 5.625%, 2/15/21 30,450
80,000 Humana, Inc., 3.95%, 3/15/27 77,551
------------
$ 187,805
------------
Total Health Care Equipment & Services $ 1,034,301
-----------------------------------------------------------------------------------------------------
INSURANCE -- 3.2%
Life & Health Insurance -- 1.0%
EUR 100,000(c) CNP Assurances, 6.0% (3 Month EURIBOR + 447 bps),
9/14/40 $ 123,450
EUR 100,000(a)(c) NN Group NV, 4.375% (3 Month EURIBOR + 390 bps) 116,949
60,000 Protective Life Corp., 4.3%, 9/30/28 (144A) 58,326
45,000 Protective Life Corp., 7.375%, 10/15/19 46,720
100,000 Teachers Insurance & Annuity Association of America,
4.9%, 9/15/44 (144A) 103,234
65,000 Torchmark Corp., 4.55%, 9/15/28 64,735
------------
$ 513,414
-----------------------------------------------------------------------------------------------------
Multi-line Insurance -- 1.6%
EUR 100,000(a)(c) Allianz SE, 3.375% (EUAMDB10 + 320 bps) $ 118,519
EUR 200,000 Assicurazioni Generali S.p.A., 4.125%, 5/4/26 232,014
EUR 100,000(c) Aviva Plc, 6.125% (5 Year EUR Swap Rate + 513 bps), 7/5/43 130,117
EUR 100,000(a)(c) AXA SA, 3.875% (11 Year EUR Swap Rate + 325 bps) 116,276
60,000 AXA SA, 8.6%, 12/15/30 76,200
100,000 Liberty Mutual Insurance Co., 7.697%, 10/15/97 (144A) 130,064
------------
$ 803,190
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 23
Schedule of Investments | 10/31/18 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.3%
35,000 Delphi Financial Group, Inc., 7.875%, 1/31/20 $ 36,733
100,000(c) Farmers Insurance Exchange, 4.747% (3 Month USD
LIBOR + 323 bps), 11/1/57 (144A) 88,234
------------
$ 124,967
-----------------------------------------------------------------------------------------------------
Reinsurance -- 0.3%
EUR 100,000(c) Muenchener Rueckversicherungs-Gesellschaft AG in
Muenchen, 6.25% (3 Month EURIBOR + 495 bps),
5/26/42 $ 133,466
------------
Total Insurance $ 1,575,037
-----------------------------------------------------------------------------------------------------
MATERIALS -- 1.6%
Construction Materials -- 0.8%
EUR 100,000 Buzzi Unicem S.p.A., 2.125%, 4/28/23 $ 113,397
EUR 125,000 CRH Finance, DAC, 3.125%, 4/3/23 156,409
EUR 100,000 HeidelbergCement AG, 2.25%, 6/3/24 117,899
------------
$ 387,705
-----------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.2%
EUR 100,000 Arkema SA, 1.5%, 1/20/25 $ 115,076
-----------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.3%
EUR 100,000 Anglo American Capital Plc, 3.25%, 4/3/23 $ 120,720
-----------------------------------------------------------------------------------------------------
Paper Packaging -- 0.1%
50,000 International Paper Co., 4.8%, 6/15/44 $ 45,682
5,000 International Paper Co., 6.0%, 11/15/41 5,279
------------
$ 50,961
-----------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.2%
EUR 100,000 Covestro AG, 1.75%, 9/25/24 $ 118,440
------------
Total Materials $ 792,902
-----------------------------------------------------------------------------------------------------
MEDIA & ENTERTAINMENT -- 1.2%
Broadcasting -- 0.4%
200,000 CSC Holdings LLC, 5.375%, 2/1/28 (144A) $ 188,500
-----------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.6%
60,000 Comcast Corp., 4.15%, 10/15/28 $ 59,507
50,000 Comcast Corp., 4.25%, 10/15/30 49,316
EUR 150,000 Sky Plc, 1.5%, 9/15/21 175,603
------------
$ 284,426
-----------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.2%
EUR 90,000 WMG Acquisition Corp., 4.125%, 11/1/24 (144A) $ 105,863
------------
Total Media & Entertainment $ 578,789
-----------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 1.3%
Biotechnology -- 0.3%
115,000 Biogen, Inc., 5.2%, 9/15/45 $ 115,212
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Pharmaceuticals -- 1.0%
EUR 100,000 Bausch Health Cos., Inc., 4.5%, 5/15/23 $ 109,473
200,000 Perrigo Finance Unlimited Co., 3.9%, 12/15/24 191,765
206,000 Shire Acquisitions Investments Ireland, DAC,
2.875%, 9/23/23 194,332
------------
$ 495,570
------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 610,782
-----------------------------------------------------------------------------------------------------
REAL ESTATE -- 2.1%
Diversified REIT -- 1.0%
EUR 100,000(a)(c) ATF Netherlands BV, 3.75% (5 Year EUR Swap
Rate + 438 bps) $ 112,577
55,000 Essex Portfolio LP, 3.625%, 5/1/27 51,951
EUR 200,000 GELF Bond Issuer I SA, 0.875%, 10/20/22 226,151
EUR 100,000 Merlin Properties Socimi SA, 2.225%, 4/25/23 117,581
------------
$ 508,260
-----------------------------------------------------------------------------------------------------
Health Care REIT -- 0.1%
60,000 Healthcare Trust of America Holdings LP, 3.75%, 7/1/27 $ 55,965
-----------------------------------------------------------------------------------------------------
Office REIT -- 0.2%
25,000 Alexandria Real Estate Equities, Inc., 3.9%, 6/15/23 $ 24,985
40,000 Alexandria Real Estate Equities, Inc., 4.6%, 4/1/22 40,954
35,000 Highwoods Realty LP, 3.625%, 1/15/23 34,212
------------
$ 100,151
-----------------------------------------------------------------------------------------------------
Real Estate Development -- 0.5%
EUR 100,000 Akelius Residential Property AB, 1.125%, 3/14/24 $ 109,089
EUR 100,000 Annington Funding Plc, 1.65%, 7/12/24 111,287
------------
$ 220,376
-----------------------------------------------------------------------------------------------------
Residential REIT -- 0.1%
27,000 UDR, Inc., 4.0%, 10/1/25 $ 26,656
25,000 UDR, Inc., 4.4%, 1/26/29 25,036
------------
$ 51,692
-----------------------------------------------------------------------------------------------------
Specialized REIT -- 0.2%
100,000 Uniti Group LP/Uniti Group Finance, Inc./CSL Capital
LLC, 6.0%, 4/15/23 (144A) $ 96,000
------------
Total Real Estate $ 1,032,444
-----------------------------------------------------------------------------------------------------
RETAILING -- 0.3%
Internet & Direct Marketing Retail -- 0.3%
125,000 Booking Holdings, Inc., 3.55%, 3/15/28 $ 116,909
50,000 Expedia, Inc., 3.8%, 2/15/28 45,256
------------
Total Retailing $ 162,165
-----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.1%
Data Processing & Outsourced Services -- 0.1%
36,000 Fiserv, Inc., 3.8%, 10/1/23 $ 35,930
------------
Total Software & Services $ 35,930
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 25
Schedule of Investments | 10/31/18 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.5%
Electronic Components -- 0.3%
41,000 Amphenol Corp., 3.2%, 4/1/24 $ 39,092
EUR 100,000 Belden, Inc., 2.875%, 9/15/25 (144A) 110,592
------------
$ 149,684
-----------------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.2%
100,000 Flex, Ltd., 4.625%, 2/15/20 $ 100,301
------------
Total Technology Hardware & Equipment $ 249,985
-----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.0%
Integrated Telecommunication Services -- 1.0%
40,000 Frontier Communications Corp., 7.125%, 1/15/23 $ 26,600
GBP 100,000 Koninklijke KPN NV, 5.0%, 11/18/26 145,977
EUR 125,000(a)(c) Orange SA, 5.0% (5 Year EUR Swap Rate + 399 bps) 153,448
EUR 100,000 Telekom Finanzmanagement GmbH, 3.5%, 7/4/23 128,119
25,000 Unison Ground Lease Funding LLC, 2.981%,
3/15/20 (144A) 24,745
------------
$ 478,889
-----------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.0%
200,000 Digicel, Ltd., 6.0%, 4/15/21 (144A) $ 181,500
200,000 MTN Mauritius Investment, Ltd., 6.5%, 10/13/26 (144A) 192,900
50,000 SBA Tower Trust, 2.877%, 7/9/21 (144A) 48,829
50,000 Sprint Corp., 7.25%, 9/15/21 52,250
------------
$ 475,479
------------
Total Telecommunication Services $ 954,368
-----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.5%
Airlines -- 0.0%+
4,701 Delta Air Lines 2010-2 Class A Pass Through Trust,
4.95%, 5/23/19 $ 4,720
15,000 Delta Air Lines, Inc., 2.875%, 3/13/20 14,861
------------
$ 19,581
-----------------------------------------------------------------------------------------------------
Highways & Railtracks -- 0.5%
EUR 100,000 Brisa Concessao Rodoviaria SA, 2.0%, 3/22/23 $ 118,541
EUR 100,000(a)(c) Ferrovial Netherlands BV, 2.124% (5 Year EUR Swap
Rate + 213 bps) 100,857
------------
$ 219,398
------------
Total Transportation $ 238,979
-----------------------------------------------------------------------------------------------------
UTILITIES -- 2.0%
Electric Utilities -- 0.9%
EUR 100,000 Coentreprise de Transport d'Electricite SA,
0.875%, 9/29/24 $ 112,438
5,000 Edison International, 2.4%, 9/15/22 4,715
EUR 100,000 EDP Finance BV, 1.875%, 9/29/23 116,940
GBP 75,000 innogy Finance BV, 5.625%, 12/6/23 111,766
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Electric Utilities -- (continued)
85,000 NextEra Energy Capital Holdings, Inc., 3.55%, 5/1/27 $ 80,816
40,000(a)(c) Southern California Edison Co., 6.25% (3 Month USD
LIBOR + 420 bps) 41,200
------------
$ 467,875
-----------------------------------------------------------------------------------------------------
Gas Utilities -- 0.7%
15,000 Boston Gas Co., 3.15%, 8/1/27 (144A) $ 13,988
GBP 125,000 Cadent Finance Plc, 2.125%, 9/22/28 149,658
80,413 Nakilat, Inc., 6.267%, 12/31/33 (144A) 87,916
90,000 Texas Eastern Transmission LP, 3.5%, 1/15/28 (144A) 84,385
------------
$ 335,947
-----------------------------------------------------------------------------------------------------
Multi-Utilities -- 0.4%
EUR 100,000 FCC Aqualia SA, 1.413%, 6/8/22 $ 114,511
65,000 Sempra Energy, 3.4%, 2/1/28 60,205
------------
$ 174,716
------------
Total Utilities $ 978,538
-----------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $17,836,903) $ 17,061,892
-----------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS --
24.5% of Net Assets
Angola -- 0.4%
200,000 Angolan Government International Bond, 8.25%,
5/9/28 (144A) $ 199,798
-----------------------------------------------------------------------------------------------------
Argentina -- 1.7%
100,000 Argentine Republic Government International Bond,
6.875%, 1/26/27 $ 83,250
300,000 Argentine Republic Government International Bond,
7.5%, 4/22/26 261,750
250,000 Autonomous City of Buenos Aires Argentina, 7.5%,
6/1/27 (144A) 218,500
300,000 Provincia de Buenos Aires, 9.125%, 3/16/24 (144A) 267,753
------------
$ 831,253
-----------------------------------------------------------------------------------------------------
Austria -- 0.2%
EUR 50,000 Republic of Austria Government Bond, 4.15%,
3/15/37 (144A) $ 84,961
-----------------------------------------------------------------------------------------------------
Bahrain -- 0.4%
200,000 Bahrain Government International Bond, 7.0%,
10/12/28 (144A) $ 195,228
-----------------------------------------------------------------------------------------------------
Dominican Republic -- 0.3%
DOP 8,000,000 Dominican Republic International Bond, 8.9%,
2/15/23 (144A) $ 158,163
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 27
Schedule of Investments | 10/31/18 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Ecuador -- 0.1%
52,632(d) EP PetroEcuador via Noble Sovereign Funding I, Ltd.,
8.016% (3 Month USD LIBOR + 563 bps), 9/24/19 $ 52,500
-----------------------------------------------------------------------------------------------------
Japan -- 6.4%
JPY 120,000,000 Japan Government Ten Year Bond, 0.1%, 9/20/26 $ 1,067,713
JPY 50,000,000 Japan Government Ten Year Bond, 1.0%, 12/20/21 457,809
JPY 75,000,000 Japan Government Thirty Year Bond, 0.8%, 12/20/47 653,023
JPY 110,000,000 Japan Government Twenty Year Bond, 0.6%, 12/20/37 969,969
------------
$ 3,148,514
-----------------------------------------------------------------------------------------------------
Kenya -- 0.4%
200,000 Kenya Government International Bond, 7.25%,
2/28/28 (144A) $ 188,620
-----------------------------------------------------------------------------------------------------
Mexico -- 1.5%
MXN 2,400,000 Mexican Bonos, 6.5%, 6/9/22 $ 110,451
MXN 300,000 Mexican Bonos, 7.5%, 6/3/27 13,607
MXN 8,955,000 Mexican Bonos, 8.0%, 12/7/23 429,059
MXN 3,523,449 Mexican Udibonos, 2.0%, 6/9/22 160,788
------------
$ 713,905
-----------------------------------------------------------------------------------------------------
Nigeria -- 0.8%
408,000 Africa Finance Corp., 4.375%, 4/29/20 (144A) $ 407,445
-----------------------------------------------------------------------------------------------------
Norway -- 1.7%
NOK 6,750,000 Norway Government Bond, 4.5%, 5/22/19 (144A) $ 815,934
-----------------------------------------------------------------------------------------------------
Oman -- 0.8%
200,000 Oman Government International Bond, 5.375%,
3/8/27 (144A) $ 188,300
200,000 Oman Government International Bond, 5.625%,
1/17/28 (144A) 190,500
------------
$ 378,800
-----------------------------------------------------------------------------------------------------
Portugal -- 0.3%
EUR 100,000 Portugal Obrigacoes do Tesouro OT, 4.95%,
10/25/23 (144A) $ 136,634
-----------------------------------------------------------------------------------------------------
Senegal -- 0.4%
200,000 Senegal Government International Bond, 6.25%,
5/23/33 (144A) $ 172,924
-----------------------------------------------------------------------------------------------------
Sri Lanka -- 0.9%
500,000 Sri Lanka Government International Bond, 5.75%,
4/18/23 (144A) $ 449,414
-----------------------------------------------------------------------------------------------------
Sweden -- 2.8%
SEK 2,300,000 Sweden Government Bond, 2.5%, 5/12/25 287,240
SEK 9,590,000 Sweden Government Bond, 4.25%, 3/12/19 1,065,703
------------
$ 1,352,943
-----------------------------------------------------------------------------------------------------
Turkey -- 0.4%
250,000 Turkey Government International Bond, 3.25%, 3/23/23 $ 214,375
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Ukraine -- 0.4%
200,000 Ukraine Government International Bond, 8.994%, 2/1/24 $ 198,250
-----------------------------------------------------------------------------------------------------
United Kingdom -- 3.3%
GBP 475,000 United Kingdom Gilt, 0.5%, 7/22/22 $ 597,895
GBP 450,000 United Kingdom Gilt, 3.5%, 1/22/45 765,790
GBP 150,000 United Kingdom Gilt, 4.25%, 9/7/39 272,033
------------
$ 1,635,718
-----------------------------------------------------------------------------------------------------
Uruguay -- 1.3%
UYU 15,035,000 Uruguay Government International Bond, 8.5%,
3/15/28 (144A) $ 391,620
UYU 8,516,000 Uruguay Government International Bond, 9.875%,
6/20/22 (144A) 255,285
------------
$ 646,905
-----------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $12,957,041) $ 11,982,284
-----------------------------------------------------------------------------------------------------
INSURANCE-LINKED SECURITIES --
0.2% of Net Assets(1)
REINSURANCE SIDECARS -- 0.2%
Multiperil - Worldwide -- 0.2%
30,000+(f) Lorenz Re 2017, Variable Rate Notes, 3/31/20 $ 6,324
30,000+(f) Lorenz Re 2018, Variable Rate Notes, 7/1/21 29,667
30,000+(f) Pangaea Re 2015-2, Variable Rate Notes, 11/30/19 96
30,000+(f) Pangaea Re 2016-1, Variable Rate Notes, 11/30/20 174
50,000+(f) Pangaea Re 2017-1, Variable Rate Notes, 11/30/21 --
50,000+(f) Pangaea Re 2018-1, Variable Rate Notes, 12/31/21 51,065
------------
Total Reinsurance Sidecars $ 87,326
-----------------------------------------------------------------------------------------------------
TOTAL INSURANCE-LINKED SECURITIES
(Cost $97,989) $ 87,326
-----------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 1.5% of Net Assets(g)
Municipal Higher Education -- 0.3%
25,000 Baylor University, Series A, 4.313%, 3/1/42 $ 23,988
25,000 California Educational Facilities Authority, Stanford
University, Series U-7, 5.0%, 6/1/46 30,686
15,000 Massachusetts Development Finance Agency, Harvard
University, Series A, 5.0%, 7/15/40 18,143
20,000 New York State Dormitory Authority, Columbia University,
Series A-2, 5.0%, 10/1/46 24,661
50,000 University of Virginia, Refunding General Green,
Series A-2, 5.0%, 4/1/45 55,640
------------
$ 153,118
-----------------------------------------------------------------------------------------------------
Municipal General -- 0.6%
70,000 JobsOhio Beverage System, Series B, 3.985%, 1/1/29 $ 70,781
20,000 JobsOhio Beverage System, Series B, 4.532%, 1/1/35 20,893
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 29
Schedule of Investments | 10/31/18 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Municipal General -- (continued)
125,000 Rhode Island Health & Educational Building Corp.,
Brown University, Series A, 4.0%, 9/1/47 $ 125,643
30,000 Virginia Commonwealth Transportation Board,
Transportation Capital Projects, 4.0%, 5/15/31 31,162
30,000 Virginia Commonwealth Transportation Board,
Transportation Capital Projects, 4.0%, 5/15/32 31,039
------------
$ 279,518
-----------------------------------------------------------------------------------------------------
Municipal Medical -- 0.1%
30,000 Illinois Finance Authority, Northwestern Memorial
Healthcare, 4.0%, 7/15/47 $ 29,003
10,000 Massachusetts Development Finance Agency, Partners
Healthcare System, 4.0%, 7/1/36 10,000
15,000 Massachusetts Development Finance Agency, Partners
Healthcare System, 4.0%, 7/1/41 14,779
------------
$ 53,782
-----------------------------------------------------------------------------------------------------
Municipal Obligation -- 0.3%
100,000(h) Commonwealth of Pennsylvania, 1st Series, 4.0%, 1/1/29 $ 103,592
50,000(h) State of Texas, Transportation Commission Mobility Fund,
Series A, 4.0%, 10/1/44 49,838
------------
$ 153,430
-----------------------------------------------------------------------------------------------------
Municipal School District -- 0.1%
25,000(h) Frisco Independent School District, 4.0%, 8/15/40
(PSF-GTD Insured) $ 24,927
25,000(h) Frisco Independent School District, 4.0%, 8/15/45
(PSF-GTD Insured) 24,836
------------
$ 49,763
-----------------------------------------------------------------------------------------------------
Municipal Water -- 0.1%
15,000 JEA Water & Sewer System Revenue, Series A,
4.0%, 10/1/35 $ 15,419
15,000 JEA Water & Sewer System Revenue, Series A,
4.0%, 10/1/39 15,123
------------
$ 30,542
-----------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $745,300) $ 720,153
-----------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 7.9% of Net Assets*(d)
AUTOMOBILES & COMPONENTS -- 0.3%
Auto Parts & Equipment -- 0.3%
98,242 American Axle & Manufacturing, Inc., Tranche B Term
Loan, 4.621% (LIBOR + 225 bps), 4/6/24 $ 98,242
26,019 Energy Acquisition LP, First Lien Initial Term Loan,
6.636% (LIBOR + 425 bps), 6/26/25 26,214
------------
Total Automobiles & Components $ 124,456
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Electrical Components & Equipment -- 0.1%
49,770 DG Investment Intermediate Holdings 2, Inc. (aka
Convergint Technologies Holdings LLC), First Lien Initial
Term Loan, 5.302% (LIBOR + 300 bps), 2/3/25 $ 49,459
------------
Total Capital Goods $ 49,459
-----------------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 0.8%
Diversified Support Services -- 0.2%
69,477 Aristocrat Leisure, Ltd., Term B-3 Loan, 4.219%
(LIBOR + 175 bps), 10/19/24 $ 69,315
46,117 Asurion LLC (fka Asurion Corp.), New B-7 Term Loan,
5.302% (LIBOR + 300 bps), 11/3/24 46,244
------------
$ 115,559
-----------------------------------------------------------------------------------------------------
Environmental & Facilities Services -- 0.2%
11,050 GFL Environmental, Inc., Delayed Draw Term Loan,
7.0% (PRIME + 175 bps), 5/30/25 $ 10,915
88,728 GFL Environmental, Inc., Effective Date Incremental Term
Loan, 5.136% (LIBOR + 275 bps), 5/30/25 87,647
------------
$ 98,562
-----------------------------------------------------------------------------------------------------
Human Resource & Employment Services -- 0.2%
95,742 On Assignment, Inc., Initial Term B-2 Loan, 4.302%
(LIBOR + 200 bps), 4/2/25 $ 96,021
-----------------------------------------------------------------------------------------------------
Office Services & Supplies -- 0.2%
99,750 West Corp., Incremental Term B-1 Loan, 6.026%
(LIBOR + 350 bps), 10/10/24 $ 98,784
------------
Total Commercial & Professional Services $ 408,926
-----------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.5%
Casinos & Gaming -- 0.1%
49,750 Scientific Games International, Inc., Initial Term B-5 Loan,
5.046% (LIBOR + 275 bps), 8/14/24 $ 49,356
-----------------------------------------------------------------------------------------------------
Leisure Facilities -- 0.3%
99,248 Life Time Fitness, Inc., 2017 Refinancing Term Loan,
5.063% (LIBOR + 275 bps), 6/10/22 $ 99,419
50,000 Six Flags Theme Parks, Inc., Tranche B Term Loan, 4.26%
(LIBOR + 175 bps), 6/30/22 50,200
------------
$ 149,619
-----------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 0.1%
49,125 KUEHG Corp. (fka KC MergerSub, Inc.), Term B-3 Loan,
6.136% (LIBOR + 375 bps), 2/21/25 $ 49,436
------------
Total Consumer Services $ 248,411
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.9%
Diversified Capital Markets -- 0.3%
149,374 Avolon TLB Borrower 1 (US) LLC, Term B-3 Loan, 4.28%
(LIBOR + 200 bps), 1/15/25 $ 149,157
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 31
Schedule of Investments | 10/31/18 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Specialized Finance -- 0.6%
49,146 1011778 BC Unlimited Liability Co. (New Red Finance,
Inc.) (aka Burger King/Tim Hortons), Term B-3 Loan,
4.552% (LIBOR + 225 bps), 2/16/24 $ 49,008
99,750 SBA Senior Finance II LLC, Initial Term Loan, 4.31%
(LIBOR + 200 bps), 4/11/25 99,667
49,875 Trans Union LLC, Incremental Term B-4 Loan, 4.302%
(LIBOR + 200 bps), 6/19/25 49,861
99,746 Vistra Operations Co., LLC (fka Tex Operations Co., LLC),
Initial Term Loan, 4.302% (LIBOR + 200 bps), 8/4/23 99,642
------------
$ 298,178
------------
Total Diversified Financials $ 447,335
-----------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.3%
Packaged Foods & Meats -- 0.3%
129,343 JBS USA Lux SA (fka JBS USA LLC), Initial Term Loan,
4.844% (LIBOR + 250 bps), 10/30/22 $ 129,495
------------
Total Food, Beverage & Tobacco $ 129,495
-----------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.8%
Health Care Facilities -- 0.3%
49,746 ATI Holdings Acquisition, Inc., First Lien Initial Term Loan,
5.78% (LIBOR + 350 bps), 5/10/23 $ 49,849
99,500 HCA, Inc., Tranche B-10 Term Loan, 4.302%
(LIBOR + 200 bps), 3/13/25 100,087
------------
$ 149,936
-----------------------------------------------------------------------------------------------------
Health Care Services -- 0.3%
98,742(i) Alliance HealthCare Services, Inc., First Lien Initial
Term Loan, 10/24/23 $ 99,421
36,542 Gentiva Health Services, Inc., First Lien Closing Date
Initial Term Loan, 6.063% (LIBOR + 375 bps), 7/2/25 36,678
------------
$ 136,099
-----------------------------------------------------------------------------------------------------
Health Care Technology -- 0.0%+
24,375 Change Healthcare Holdings, Inc. (fka Emdeon, Inc.),
Closing Date Term Loan, 5.173% (LIBOR + 275 bps),
3/1/24 $ 24,377
-----------------------------------------------------------------------------------------------------
Managed Health Care -- 0.2%
99,500 Prospect Medical Holdings, Inc., Term B-1 Loan, 7.813%
(LIBOR + 550 bps), 2/22/24 $ 100,060
------------
Total Health Care Equipment & Services $ 410,472
-----------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.3%
Personal Products -- 0.3%
99,750 Coty, Inc., USD Term Loan B, 4.531% (LIBOR + 225 bps),
4/7/25 $ 97,911
98,492 Revlon Consumer Products Corp., Initial Term B Loan,
5.813% (LIBOR + 350 bps), 9/7/23 72,318
------------
Total Household & Personal Products $ 170,229
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
INSURANCE -- 0.2%
Life & Health Insurance -- 0.1%
49,366 Integro Parent, Inc., First Lien Initial Term Loan,
8.069% (LIBOR + 575 bps), 10/31/22 $ 49,489
-----------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.1%
49,749 USI, Inc. (fka Compass Investors, Inc.), 2017 New
Term Loan, 5.386% (LIBOR + 300 bps), 5/16/24 $ 49,525
------------
Total Insurance $ 99,014
-----------------------------------------------------------------------------------------------------
MATERIALS -- 0.8%
Metal & Glass Containers -- 0.3%
47,701 Crown Holdings, Inc., Dollar Term B Loan, 4.283%
(LIBOR + 200 bps), 4/3/25 $ 47,865
74,625 IBC Capital I, Ltd. (aka Goodpack, Ltd.), First Lien
Tranche B-1 Term Loan, 6.087% (LIBOR + 375 bps),
9/11/23 74,625
------------
$ 122,490
-----------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.3%
99,500 Axalta Coating Systems Dutch Holding B BV (Axalta
Coating Systems US Holdings, Inc.), Term B-3 Dollar
Loan, 4.136% (LIBOR + 175 bps), 6/1/24 $ 99,383
47,849 PQ Corp., Third Amendment Tranche B-1 Term Loan,
5.027% (LIBOR + 250 bps), 2/8/25 47,869
------------
$ 147,252
-----------------------------------------------------------------------------------------------------
Steel -- 0.2%
49,625 Atkore International, Inc., First Lien Initial Incremental
Term Loan, 5.14% (LIBOR + 275 bps), 12/22/23 $ 49,718
49,125 Zekelman Industries, Inc. (fka JMC Steel Group, Inc.),
Term Loan, 4.623% (LIBOR + 225 bps), 6/14/21 49,110
------------
$ 98,828
------------
Total Materials $ 368,570
-----------------------------------------------------------------------------------------------------
MEDIA & ENTERTAINMENT -- 0.8%
Advertising -- 0.2%
99,500 Lamar Media Corp., Term B Loan, 4.063%
(LIBOR + 175 bps), 3/14/25 $ 99,832
-----------------------------------------------------------------------------------------------------
Broadcasting -- 0.4%
49,750 CSC Holdings LLC (fka CSC Holdings, Inc. (Cablevision)),
January 2018 Incremental Term Loan, 4.78%
(LIBOR + 250 bps), 1/25/26 $ 49,912
31,773(i) CSC Holdings LLC (fka CSC Holdings, Inc. (Cablevision)),
October 2018 Incremental Term Loan, 1/15/26 31,733
99,494 Sinclair Television Group, Inc., Tranche B Term Loan,
4.56% (LIBOR + 175 bps), 1/3/24 99,556
------------
$ 181,201
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 33
Schedule of Investments | 10/31/18 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
Cable & Satellite -- 0.1%
40,813 UPC Financing Partnership, Facility AR, 4.78%
(LIBOR + 250 bps), 1/15/26 $ 40,704
-----------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.1%
49,750 NVA Holdings, Inc., First Lien Term B-3 Loan, 5.052%
(LIBOR + 275 bps), 2/2/25 $ 49,449
------------
Total Media & Entertainment $ 371,186
-----------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 0.3%
Pharmaceuticals -- 0.3%
98,750 Endo Luxembourg Finance Co. I S.a r.l., Initial Term
Loan, 6.563% (LIBOR + 425 bps), 4/29/24 $ 99,202
47,992 RPI Finance Trust, Initial Term Loan B-6, 4.386%
(LIBOR + 200 bps), 3/27/23 48,093
------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 147,295
-----------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.2%
Specialized REIT -- 0.2%
124,375 Iron Mountain, Inc., Incremental Term Loan B, 4.052%
(LIBOR + 175 bps), 1/2/26 $ 122,924
------------
Total Real Estate $ 122,924
-----------------------------------------------------------------------------------------------------
RETAILING -- 0.3%
Automotive Retail -- 0.3%
148,619 CWGS Group LLC, Term Loan, 5.029%
(LIBOR + 275 bps), 11/8/23 $ 143,665
------------
Total Retailing $ 143,665
-----------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 0.4%
Semiconductors -- 0.4%
90,433 Microchip Technology, Inc., Initial Term Loan, 4.31%
(LIBOR + 200 bps), 5/29/25 $ 90,185
99,491 Micron Technology, Inc., Term Loan, 4.06%
(LIBOR + 175 bps), 4/26/22 99,740
------------
Total Semiconductors & Semiconductor Equipment $ 189,925
-----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.6%
Data Processing & Outsourced Services -- 0.2%
100,000 First Data Corp., 2024A New Dollar Term Loan,
4.287% (LIBOR + 200 bps), 4/26/24 $ 99,891
-----------------------------------------------------------------------------------------------------
Internet Services & Infrastructure -- 0.3%
7,959 Rackspace Hosting, Inc., First Lien Term B Loan, 5.348%
(LIBOR + 300 bps), 11/3/23 $ 7,756
153,230 Vantiv LLC (fka Fifth Third Processing Solutions LLC),
New Term B-4 Loan, 4.03% (LIBOR + 175 bps), 8/9/24 153,177
------------
$ 160,933
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.1%
24,661 Go Daddy Operating Co., LLC (GD Finance Co., Inc.),
Tranche B-1 Term Loan, 4.552% (LIBOR + 225 bps),
2/15/24 $ 24,716
------------
Total Software & Services $ 285,540
-----------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.1%
Electronic Manufacturing Services -- 0.1%
45,657 TTM Technologies, Inc., Term Loan B, 4.756%
(LIBOR + 250 bps), 9/28/24 $ 45,685
------------
Total Technology Hardware & Equipment $ 45,685
-----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICE -- 0.2%
Wireless Telecommunication Services -- 0.2%
98,997 Sprint Communications, Inc., Initial Term Loan, 4.813%
(LIBOR + 250 bps), 2/2/24 $ 98,935
------------
Total Telecommunication Service $ 98,935
-----------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE LOAN INTERESTS
(Cost $3,888,518) $ 3,861,522
-----------------------------------------------------------------------------------------------------
SUPRANATIONAL BONDS -- 0.3% of Net Assets
ARS 1,280,000 European Bank for Reconstruction & Development,
2/1/19 $ 31,447
AUD 185,000 International Bank for Reconstruction & Development,
5.75%, 10/21/19 135,325
-----------------------------------------------------------------------------------------------------
TOTAL SUPRANATIONAL BONDS
(Cost $249,378) $ 166,772
-----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 21.1% of Net Assets
22,028 Fannie Mae, 3.0%, 5/1/31 $ 21,636
39,290 Fannie Mae, 3.0%, 2/1/43 37,520
26,396 Fannie Mae, 3.0%, 3/1/43 25,206
25,299 Fannie Mae, 3.0%, 5/1/43 24,155
29,962 Fannie Mae, 3.0%, 5/1/43 28,590
29,249 Fannie Mae, 3.0%, 6/1/45 27,851
21,613 Fannie Mae, 3.0%, 9/1/46 20,468
43,358 Fannie Mae, 3.0%, 10/1/46 41,057
59,748 Fannie Mae, 3.0%, 11/1/46 56,572
43,273 Fannie Mae, 3.0%, 1/1/47 41,150
32,038 Fannie Mae, 3.0%, 3/1/47 30,333
45,341 Fannie Mae, 3.5%, 6/1/42 44,537
116,999 Fannie Mae, 3.5%, 9/1/42 114,925
132,139 Fannie Mae, 3.5%, 5/1/44 129,592
30,509 Fannie Mae, 3.5%, 2/1/45 29,851
82,087 Fannie Mae, 3.5%, 2/1/45 80,502
20,127 Fannie Mae, 3.5%, 6/1/45 19,676
16,218 Fannie Mae, 3.5%, 8/1/45 15,855
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 35
Schedule of Investments | 10/31/18 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
40,703 Fannie Mae, 3.5%, 8/1/45 $ 39,792
19,558 Fannie Mae, 3.5%, 9/1/45 19,177
57,285 Fannie Mae, 3.5%, 9/1/45 55,826
90,550 Fannie Mae, 3.5%, 10/1/45 88,523
19,757 Fannie Mae, 3.5%, 1/1/46 19,312
21,783 Fannie Mae, 3.5%, 7/1/46 21,281
34,595 Fannie Mae, 3.5%, 9/1/46 33,787
66,539 Fannie Mae, 3.5%, 12/1/46 64,954
34,131 Fannie Mae, 3.5%, 1/1/47 33,310
42,035 Fannie Mae, 3.5%, 1/1/47 41,046
43,555 Fannie Mae, 3.5%, 1/1/47 42,509
35,375 Fannie Mae, 4.0%, 10/1/40 35,715
69,271 Fannie Mae, 4.0%, 1/1/42 69,797
14,578 Fannie Mae, 4.0%, 2/1/42 14,698
26,565 Fannie Mae, 4.0%, 5/1/42 26,767
110,170 Fannie Mae, 4.0%, 10/1/43 110,834
38,861 Fannie Mae, 4.0%, 11/1/43 39,165
17,309 Fannie Mae, 4.0%, 10/1/44 17,354
75,936 Fannie Mae, 4.0%, 11/1/44 76,107
62,436 Fannie Mae, 4.0%, 10/1/45 62,565
93,380 Fannie Mae, 4.0%, 11/1/45 94,030
49,155 Fannie Mae, 4.0%, 12/1/45 49,230
35,928 Fannie Mae, 4.0%, 6/1/46 35,965
34,808 Fannie Mae, 4.0%, 8/1/46 34,838
19,977 Fannie Mae, 4.0%, 11/1/46 20,004
21,248 Fannie Mae, 4.0%, 11/1/46 21,278
144,530 Fannie Mae, 4.0%, 1/1/47 144,811
22,217 Fannie Mae, 4.0%, 4/1/47 22,280
35,517 Fannie Mae, 4.0%, 4/1/47 35,540
37,949 Fannie Mae, 4.0%, 4/1/47 38,057
21,643 Fannie Mae, 4.0%, 6/1/47 21,655
66,517 Fannie Mae, 4.0%, 6/1/47 66,554
21,566 Fannie Mae, 4.0%, 7/1/47 21,579
36,785 Fannie Mae, 4.0%, 8/1/47 36,805
41,738 Fannie Mae, 4.0%, 12/1/47 41,758
145,778 Fannie Mae, 4.0%, 4/1/48 145,848
6,178 Fannie Mae, 4.5%, 11/1/40 6,400
13,677 Fannie Mae, 4.5%, 12/1/40 14,168
12,422 Fannie Mae, 4.5%, 4/1/41 12,869
9,541 Fannie Mae, 4.5%, 5/1/41 9,885
27,151 Fannie Mae, 4.5%, 11/1/43 27,956
32,445 Fannie Mae, 4.5%, 2/1/44 33,413
39,245 Fannie Mae, 4.5%, 2/1/44 40,407
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
31,233 Fannie Mae, 4.5%, 5/1/46 $ 32,010
38,400 Fannie Mae, 4.5%, 2/1/47 39,379
30,588 Fannie Mae, 5.0%, 8/1/31 31,940
14,064 Fannie Mae, 5.0%, 6/1/40 14,874
9,012 Fannie Mae, 5.5%, 10/1/35 9,601
900,000 Fannie Mae, 4.0%, 11/1/47 (TBA) 899,965
12,732 Federal Home Loan Mortgage Corp., 3.0%, 9/1/42 12,163
14,678 Federal Home Loan Mortgage Corp., 3.0%, 1/1/43 14,011
29,630 Federal Home Loan Mortgage Corp., 3.0%, 2/1/43 28,265
33,594 Federal Home Loan Mortgage Corp., 3.0%, 4/1/43 32,063
55,064 Federal Home Loan Mortgage Corp., 3.0%, 4/1/43 52,553
15,189 Federal Home Loan Mortgage Corp., 3.0%, 5/1/43 14,490
21,734 Federal Home Loan Mortgage Corp., 3.0%, 9/1/46 20,590
22,174 Federal Home Loan Mortgage Corp., 3.0%, 12/1/46 21,001
64,394 Federal Home Loan Mortgage Corp., 3.0%, 2/1/47 60,999
15,746 Federal Home Loan Mortgage Corp., 3.5%, 10/1/42 15,467
83,221 Federal Home Loan Mortgage Corp., 3.5%, 6/1/45 81,344
103,262 Federal Home Loan Mortgage Corp., 3.5%, 11/1/45 100,869
18,178 Federal Home Loan Mortgage Corp., 3.5%, 3/1/46 17,760
74,157 Federal Home Loan Mortgage Corp., 3.5%, 7/1/46 72,713
31,716 Federal Home Loan Mortgage Corp., 3.5%, 8/1/46 30,981
84,624 Federal Home Loan Mortgage Corp., 3.5%, 8/1/46 83,132
103,654 Federal Home Loan Mortgage Corp., 3.5%, 8/1/46 101,490
64,602 Federal Home Loan Mortgage Corp., 3.5%, 12/1/46 63,083
99,108 Federal Home Loan Mortgage Corp., 4.0%, 1/1/44 99,541
29,349 Federal Home Loan Mortgage Corp., 4.0%, 2/1/44 29,486
167,111 Federal Home Loan Mortgage Corp., 4.0%, 5/1/44 167,634
12,874 Federal Home Loan Mortgage Corp., 4.0%, 12/1/44 12,914
19,510 Federal Home Loan Mortgage Corp., 4.0%, 1/1/46 19,546
32,610 Federal Home Loan Mortgage Corp., 4.0%, 2/1/46 32,672
21,181 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 21,241
23,333 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 23,399
42,954 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 43,019
45,509 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 45,637
96,558 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 96,703
111,099 Federal Home Loan Mortgage Corp., 4.0%, 5/1/47 111,258
203,664 Federal Home Loan Mortgage Corp., 4.0%, 10/1/47 203,876
143,917 Federal Home Loan Mortgage Corp., 4.0%, 12/1/47 144,226
39,179 Federal Home Loan Mortgage Corp., 4.5%, 6/1/41 40,515
62,933 Federal Home Loan Mortgage Corp., 4.5%, 5/1/47 64,488
19,531 Federal Home Loan Mortgage Corp., 5.0%, 9/1/38 20,607
22,570 Federal Home Loan Mortgage Corp., 5.0%, 10/1/38 23,811
3,450 Federal Home Loan Mortgage Corp., 5.0%, 5/1/39 3,639
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 37
Schedule of Investments | 10/31/18 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
6,446 Federal Home Loan Mortgage Corp., 5.0%, 12/1/39 $ 6,810
13,243 Federal Home Loan Mortgage Corp., 6.0%, 8/1/37 14,296
14,628 Federal Home Loan Mortgage Corp., 6.5%, 1/1/38 16,311
24,209 Federal Home Loan Mortgage Corp., 6.5%, 4/1/38 26,654
49,074 Government National Mortgage Association I, 3.5%, 11/15/41 48,474
8,719 Government National Mortgage Association I, 3.5%, 10/15/42 8,630
29,053 Government National Mortgage Association I, 3.5%, 8/15/46 28,565
33,594 Government National Mortgage Association I, 4.0%, 4/15/45 33,842
50,570 Government National Mortgage Association I, 4.0%, 6/15/45 50,914
26,261 Government National Mortgage Association I, 4.5%, 1/15/40 27,227
20,137 Government National Mortgage Association I, 4.5%, 9/15/40 20,855
9,126 Government National Mortgage Association I, 4.5%, 10/15/40 9,440
18,449 Government National Mortgage Association I, 4.5%, 7/15/41 19,097
32,100 Government National Mortgage Association II, 3.0%, 9/20/46 30,769
28,596 Government National Mortgage Association II, 4.5%, 9/20/41 29,748
64,579 Government National Mortgage Association II, 4.5%, 9/20/44 65,979
18,400 Government National Mortgage Association II, 4.5%, 10/20/44 19,131
39,494 Government National Mortgage Association II, 4.5%, 11/20/44 41,064
165,873 Government National Mortgage Association II, 4.5%, 4/20/48 170,303
745,000(j) U.S. Treasury Bills, 11/1/18 745,000
120,000(j) U.S. Treasury Bills, 11/15/18 119,901
925,000(j) U.S. Treasury Bills, 11/29/18 923,445
250,000(j) U.S. Treasury Bills, 1/24/19 248,684
224,862 U.S. Treasury Inflation Indexed Bonds, 0.75%, 2/15/45 196,505
522,275 U.S. Treasury Inflation Indexed Bonds, 0.875%, 2/15/47 467,905
239,436 U.S. Treasury Inflation Indexed Bonds, 1.0%, 2/15/46 222,015
990,000 U.S. Treasury Notes, 2.875%, 10/31/23 984,857
-----------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $10,635,210) $ 10,308,701
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Notional Price Date
-----------------------------------------------------------------------------------------------------
CURRENCY PUT OPTIONS PURCHASED -- 0.1%
1,566,000 Put EUR Bank of
Call USD America EUR 22,307 EUR 1.15 5/27/19 $ 37,243
1,000,000 Put EUR Bank of
Call USD America EUR 14,987 EUR 1.15 9/23/19 26,583
------------
$ 63,826
-----------------------------------------------------------------------------------------------------
TOTAL CURRENCY PUT OPTIONS PURCHASED
(Premiums paid $37,294) $ 63,826
-----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS -- 98.8%
(Cost $50,595,166) $ 48,329,475
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
-------------------------------------------------------------------------------------------------------
Net Change in Net
Realized Unrealized
Dividend Gain Appreciation
Shares Income (Loss) (Depreciation) Value
------------------------------------------------------------------------------------------------------
AFFILIATED ISSUER -- 3.5%
CLOSED-END FUND -- 3.5% of Net Assets
INSURANCE -- 3.5%
Property & Casualty Insurance -- 3.5%
171,396 Pioneer ILS
Interval Fund(k) $ 9,913 $ -- $59,710 $ 1,708,822
------------
Total Insurance $ 1,708,822
-----------------------------------------------------------------------------------------------------
TOTAL CLOSED-END FUND
(Cost $1,707,478) $ 1,708,822
-----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED ISSUER -- 3.5%
(Cost $1,707,478) $ 1,708,822
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Notional Price Date
-----------------------------------------------------------------------------------------------------
CURRENCY CALL OPTIONS WRITTEN -- (0.1%)
(1,566,000) Call EUR Bank of
Put USD America EUR 22,307 EUR 1.27 5/27/19 $ (2,219)
(1,000,000) Call EUR Bank of
Put USD America EUR 14,987 EUR 1.27 9/23/19 (5,118)
------------
$ (7,337)
-----------------------------------------------------------------------------------------------------
TOTAL CURRENCY CALL OPTIONS WRITTEN
(Premiums received $(37,294)) $ (7,337)
-----------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (2.2)% $ (1,100,630)
-----------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 48,930,330
=====================================================================================================
(1) Securities are restricted as to resale.
bps Basis Points.
EURIBOR Euro Interbank Offered Rate.
FREMF Freddie Mac Multifamily Fixed-Rate Mortgage Loans.
LIBOR London Interbank Offered Rate.
PRIME U.S. Federal Funds Rate.
REIT Real Estate Investment Trust.
REMICS Real Estate Mortgage Investment Conduits.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
October 31, 2018, the value of these securities amounted to $9,010,587,
or 18.4% of net assets.
(TBA) "To Be Announced" Securities.
+ Amount rounds to less than 0.1%.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 39
Schedule of Investments | 10/31/18 (continued)
* Senior secured floating rate loan interests in which the Fund invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending rate plus a premium. These base lending
rates are generally (i) the lending rate offered by one or more major
European banks, such as LIBOR, (ii) the prime rate offered by one or
more major United States banks, (iii) the rate of a certificate of
deposit or (iv) other base lending rates used by commercial lenders.
The interest rate shown is the rate accruing at October 31, 2018.
+ Securities that used significant unobservable inputs to determine their
value.
(a) Security is perpetual in nature and has no stated maturity date.
(b) 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, 2018.
(c) The interest rate is subject to change periodically. The interest rate
and/or reference index and spread shown at October 31, 2018.
(d) Floating rate note. Coupon rate, reference index and spread shown at
October 31, 2018.
(e) Security represents the interest-only portion payments on a pool of
underlying mortgages or mortgage-backed securities.
(f) Rate to be determined.
(g) Consists of Revenue Bonds unless otherwise indicated.
(h) Represents a General Obligation Bond.
(i) This term loan will settle after October 31, 2018, at which time the
interest rate will be determined.
(j) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(k) Pioneer ILS Interval Fund is an affiliated fund managed by Amundi
Pioneer Asset Management, Inc., (the "Adviser").
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
FORWARD FOREIGN CURRENCY CONTRACTS
---------------------------------------------------------------------------------------------------------
Unrealized
Currency Currency Settlement Appreciation
Purchased In Exchange for Sold Deliver Counterparty Date (Depreciation)
---------------------------------------------------------------------------------------------------------
USD 514,750 ZAR (7,340,000) Bank of America NA 11/30/18 $ 18,366
SEK 3,358,004 EUR (327,255) Bank of New York 11/1/18 (3,718)
USD 277,779 MXN (5,621,778) Bank of New York 1/31/19 4,828
USD 281,706 GBP (213,366) Citibank NA 11/30/18 8,870
USD 773,286 INR (57,076,833) Citibank NA 12/24/18 6,433
EUR 706,426 USD (806,359) Goldman Sachs 11/30/18 (5,295)
International
INR 19,325,350 USD (264,778) Goldman Sachs 12/24/18 (5,134)
International
USD 266,884 INR (19,960,000) Goldman Sachs 12/24/18 (1,287)
International
USD 767,368 KRW (856,600,000) Goldman Sachs 11/30/18 15,826
International
CHF 82,616 USD (86,063) JPMorgan Chase 11/30/18 (3,915)
Bank NA
CZK 12,685,636 USD (581,918) JPMorgan 11/30/18 (28,364)
Chase Bank NA
JPY 86,172,460 USD (768,588) JPMorgan Chase 11/30/18 (4,753)
Bank NA
SEK 12,751,327 USD (1,399,399) JPMorgan Chase 11/30/18 (4,301)
Bank NA
USD 1,501,326 TWD (45,870,000) JPMorgan Chase 11/30/18 16,633
Bank NA
CHF 524,999 EUR (461,022) State Street Bank 12/3/18 (741)
& Trust Co.
EUR 5,276,425 USD (6,231,654) State Street Bank 11/30/18 (248,363)
& Trust Co.
JPY 700,019,196 USD (6,191,500) State Street Bank 11/30/18 13,485
& Trust Co.
SEK 3,358,004 EUR (322,902) State Street Bank 12/3/18 1,241
& Trust Co.
---------------------------------------------------------------------------------------------------------
TOTAL FORWARD FOREIGN CURRENCY CONTRACTS $ (220,189)
=========================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 41
Schedule of Investments | 10/31/18 (continued)
FUTURES CONTRACTS
FIXED INCOME INDEX FUTURES CONTRACTS
--------------------------------------------------------------------------------------------
Number of Unrealized
Contracts Expiration Notional Market Appreciation
Long Description Date Amount Value (Depreciation)
--------------------------------------------------------------------------------------------
17 Australia 12/17/18 $ 1,564,290 $ 1,556,291 $ (7,999)
10-Year Bond
6 Canada 10-Year 12/18/18 611,732 602,073 (9,659)
Bond
4 Euro-Bund 12/6/18 725,712 725,305 (407)
5 Euro BUXL 12/6/18 998,391 1,000,767 2,376
30-Year Bond
4 Long Gilt 12/27/18 623,709 625,344 1,635
--------------------------------------------------------------------------------------------
$ 4,523,834 $ 4,509,780 $ (14,054)
============================================================================================
--------------------------------------------------------------------------------------------
Number of
Contracts Expiration Notional Market Unrealized
Short Description Date Amount Value Appreciation
--------------------------------------------------------------------------------------------
22 Euro-BOBL 12/6/18 $ 3,271,791 $ 3,271,791 $ --
22 U.S. 10-Year 12/19/18 2,649,875 2,605,625 44,250
Note (CBT)
5 U.S. 10-Year
Ultra Bond 12/19/18 636,094 625,547 10,547
6 U.S. Long
Bond (CBT) 12/19/18 870,156 828,750 41,406
2 U.S. Ultra
Bond (CBT) 12/19/18 321,015 298,438 22,577
--------------------------------------------------------------------------------------------
$ 7,748,931 $ 7,630,151 $ 118,780
--------------------------------------------------------------------------------------------
TOTAL FUTURES CONTRACTS $ (3,225,097) $ (3,120,371) $ 104,726
============================================================================================
SWAP CONTRACT
OVER THE COUNTER (OTC) CREDIT DEFAULT SWAP CONTRACT - SELL PROTECTION
---------------------------------------------------------------------------------------------------------------
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
Capital Offshore
Service LLC Drilling, Inc. Receive 1.00% 12/20/19 $ (1,873) $ 2,317 $ 444
===============================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Receives Quarterly.
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
Principal amounts are denominated in U.S. dollars ("USD") unless otherwise
noted.
ARS Argentine Peso
AUD Australian Dollar
CHF Swiss Franc
CZK Czech Koruna
DOP Dominican Republic Peso
EUR Euro
GBP Great British Pound
INR Indian Rupee
JPY Japanese Yen
KRW South Korean Won
MXN Mexican Peso
NOK Norwegian Krone
NZD New Zealand Dollar
SEK Swedish Krona
TWD Taiwan Dollar
UYU Uruguayan Peso
ZAR South African Rand
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2018, were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government $ 2,848,593 $ 3,129,583
Other Long-Term Securities $ 38,981,803 $ 33,201,133
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
Fund's investment adviser, as set forth in Rule 17a-7 under the Investment
Company Act of 1940, pursuant to procedures adopted by the Board of Trustees.
Under these procedures, cross trades are effected at current market prices.
During the year ended October 31, 2018, the Fund engaged in purchases of $0 and
sales of $173,062 pursuant to these procedures, which resulted in a net realized
loss of $1,427.
At October 31, 2018, the net unrealized depreciation on investments based on
cost for federal tax purposes of $52,144,492 was as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 822,965
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (3,051,516)
------------
Net unrealized depreciation $ (2,228,551)
============
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 | 10/31/18 43
Schedule of Investments | 10/31/18 (continued)
The following is a summary of the inputs used as of October 31, 2018, in valuing
the Fund's investments.
-------------------------------------------------------------------------------------------=
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------
Convertible Preferred Stocks $ 570,966 $ -- $ -- $ 570,966
Asset Backed Securities -- 211,741 -- 211,741
Collateralized Mortgage Obligations -- 3,294,292 -- 3,294,292
Corporate Bonds -- 17,061,892 -- 17,061,892
Foreign Government Bonds -- 11,982,284 -- 11,982,284
Insurance-Linked Securities
Reinsurance Sidecars
Multiperil - Worldwide -- -- 87,326 87,326
Municipal Bonds -- 720,153 -- 720,153
Senior Secured Floating Rate
Loan Interests -- 3,861,522 -- 3,861,522
Supranational Bonds -- 166,772 -- 166,772
U.S. Government and
Agency Obligations -- 10,308,701 -- 10,308,701
Closed-End Fund
Insurance
Property & Casualty Insurance -- 1,708,822 -- 1,708,822
Currency Put Options Purchased -- 63,826 -- 63,826
--------------------------------------------------------------------------------------------
Total Investments in Securities $ 570,966 $ 49,380,005 $ 87,326 $ 50,038,297
============================================================================================
Other Financial Instruments
Currency Call Options Written $ -- $ (7,337) $ -- $ (7,337)
Net unrealized depreciation on
forward foreign currency contracts -- (220,189) -- (220,189)
Net unrealized appreciation on
futures contracts 104,726 -- -- 104,726
Swap contracts, at value -- 444 -- 444
--------------------------------------------------------------------------------------------
Total Other Financial Instruments $ 104,726 $ (227,082) $ -- $ (122,356)
============================================================================================
The accompanying notes are an integral part of these financial statements.
44 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
-------------------------------------------------------------------------------
Insurance-
Linked
Securities Total
-------------------------------------------------------------------------------
Balance as of 10/31/17 $ 103,022(a) $ 103,022
Realized gain (loss)(1) (3,000) (3,000)
Change in unrealized appreciation (depreciation)(2) (3,684) (3,684)
Accrued discounts/premiums -- --
Purchases 80,000 80,000
Sales (89,012) (89,012)
Transfer in to Level 3* -- --
Transfer out of Level 3* -- --
-------------------------------------------------------------------------------
Balance as of 10/31/18 $ 87,326 $ 87,326
===============================================================================
(a) Securities were classified as Corporate Bonds on the October 31, 2017
financial statements.
(1) Realized gain (loss) on these securities is included in net realized gain
(loss) on investments on the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) from investments on
the Statement of Operations.
* Transfers are calculated on the beginning of period values. For the year
ended October 31, 2018, there were no transfers between Levels 1, 2 and 3.
Net change in unrealized appreciation (depreciation) of Level 3
investments still held and considered Level 3 at October 31, 2018: $ (1,945)
---------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 45
Statement of Assets and Liabilities | 10/31/18
ASSETS:
Investments in unaffiliated securities, at value (cost $50,595,166) $ 48,329,475
Investments in affiliated securities, at value (cost $1,707,478) 1,708,822
Cash 398,951
Foreign currencies, at value (cost $381,494) 379,792
Futures collateral 195,550
Due from broker 25,360
Variation margin for futures contracts 7,805
Net unrealized appreciation on futures contracts 104,726
Swap contracts, at value (net premiums received $(1,873)) 444
Receivables --
Investment securities sold 1,053,886
Fund shares sold 20,232
Interest 405,978
Due from the Adviser 32,014
Other assets 22,843
-----------------------------------------------------------------------------------------
Total assets $ 52,685,878
=========================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 3,152,407
Fund shares repurchased 46,094
Distributions 43,968
Trustees' fees 717
Due to broker for futures 105,286
Written options outstanding (net premiums received $(37,294)) 7,337
Net unrealized depreciation on forward foreign currency contracts 220,189
Due to affiliates 10,239
Accrued expenses 169,311
-----------------------------------------------------------------------------------------
Total liabilities $ 3,755,548
=========================================================================================
NET ASSETS:
Paid-in capital $ 51,215,724
Distributable earnings (loss) (2,285,394)
-----------------------------------------------------------------------------------------
Net assets $ 48,930,330
=========================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $18,954,265/1,895,028 shares) $ 10.00
Class C (based on $8,781,059/875,422 shares) $ 10.03
Class Y (based on $21,195,006/2,102,846 shares) $ 10.08
MAXIMUM OFFERING PRICE PER SHARE:
Class A (based on $10.00 net assets value per
share/100%-4.50% maximum sales charge) $ 10.47
=========================================================================================
The accompanying notes are an integral part of these financial statements.
46 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
Statement of Operations
FOR THE YEAR ENDED 10/31/18
INVESTMENT INCOME:
Interest from unaffiliated issuers (net of foreign taxes
withheld $31,149) $ 2,014,763
Dividends from unaffiliated issuers 31,788
Dividends from affiliated issuers 9,913
----------------------------------------------------------------------------------------------------------
Total investment income $ 2,056,464
----------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 293,731
Administrative expense 62,142
Transfer agent fees
Class A 167,049
Class C 3,529
Class Y 21,936
Distribution fees
Class A 65,462
Class C 97,559
Shareowner communications expense 6,940
Custodian fees 82,628
Registration fees 52,589
Professional fees 70,184
Printing expense 14,351
Pricing fees 58,879
Trustees' fees 7,281
Insurance expense 625
Miscellaneous 33,972
----------------------------------------------------------------------------------------------------------
Total expenses $ 1,038,857
Less fees waived and expenses reimbursed
by the Adviser (399,083)
----------------------------------------------------------------------------------------------------------
Net expenses $ 639,774
----------------------------------------------------------------------------------------------------------
Net investment income $ 1,416,690
----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $ (945,291)
Written options (17,569)
Forward foreign currency contracts (706,008)
Futures contracts 245,608
Swap contracts 18,109
Other assets and liabilities denominated in foreign currencies (113,264) $ (1,518,415)
----------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $ (3,203,051)
Investments in affiliated issuers 59,710
Written options 29,957
Forward foreign currency contracts (196,214)
Futures contracts 22,461
Swap contracts (5,699)
Other assets and liabilities denominated in foreign currencies (5,993) $ (3,298,829)
----------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ (4,817,244)
----------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (3,400,554)
==========================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 47
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/18 10/31/17
--------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 1,416,690 $ 1,240,195
Net realized gain (loss) on investments (1,518,415) (167,429)
Change in net unrealized appreciation (depreciation)
on investments (3,298,829) 1,013,395
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (3,400,554) $ 2,086,161
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:*
Class A ($0.05 and $0.25 per share, respectively) $ (114,781) $ (503,313)
Class C ($0.04 and $0.16 per share, respectively) (35,907) (129,912)
Class Y ($0.06 and $0.28 per share, respectively) (78,523) (394,156)
Tax return of capital:
Class A ($0.19 and $0.04 per share, respectively) (469,180) (83,787)
Class C ($0.11 and $0.04 per share, respectively) (102,276) (34,110)
Class Y ($0.21 and $0.04 per share, respectively) (568,688) (58,205)
--------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (1,369,355) $ (1,203,483)
--------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales of shares $ 78,877,441 $ 32,624,032
Reinvestment of distributions 735,353 425,141
Cost of shares repurchased (73,833,356) (14,727,405)
--------------------------------------------------------------------------------------------------
Net increase in net assets from Fund share transactions $ 5,779,438 $ 18,321,768
--------------------------------------------------------------------------------------------------
Net increase in net assets $ 1,009,529 $ 19,204,446
NET ASSETS:**
Beginning of year $ 47,920,801 $ 28,716,355
--------------------------------------------------------------------------------------------------
End of year $ 48,930,330 $ 47,920,801
==================================================================================================
* For the year ended October 31, 2017 distributions to shareowners were
presented as follows:
Net investment income:
Class A ($0.19 per share) $ (379,152)
Class C ($0.10 per share) (77,730)
Class Y ($0.22 per share) (311,287)
Net realized gain:
Class A ($0.06 per share) $ (124,161)
Class C ($0.06 per share) (52,182)
Class Y ($0.06 per share) (82,869)
** For the year ended October 31, 2017 Distributions in excess of net
investment income was presented as follows: $(61,861)
The accompanying notes are an integral part of these financial statements.
48 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
-----------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/18 10/31/18 10/31/17 10/31/17
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------
Class A
Shares sold 1,975,874 $ 21,070,396 1,332,849 $ 13,903,813
Reinvestment of distributions 32,537 341,157 30,403 321,073
Less shares repurchased (2,286,732) (23,964,912) (471,394) (4,975,818)
-----------------------------------------------------------------------------------------------
Net increase
(decrease) (278,321) $ (2,553,359) 891,858 $ 9,249,068
===============================================================================================
Class C
Shares sold 782,897 $ 8,390,073 621,101 $ 6,507,819
Reinvestment of distributions 4,183 44,184 5,130 54,428
Less shares repurchased (845,759) (9,033,239) (103,349) (1,099,330)
-----------------------------------------------------------------------------------------------
Net increase
(decrease) (58,679) $ (598,982) 522,882 $ 5,462,917
===============================================================================================
Class Y
Shares sold 4,588,417 $ 49,416,972 1,159,480 $ 12,212,400
Reinvestment of distributions 32,990 350,012 4,636 49,640
Less shares repurchased (3,874,730) (40,835,205) (815,102) (8,652,257)
-----------------------------------------------------------------------------------------------
Net increase 746,677 $ 8,931,779 349,014 $ 3,609,783
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 49
Financial Highlights
-------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/18 10/31/17 10/31/16* 10/31/15* 10/31/14*
-------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.70 $ 10.60 $ 10.40 $ 10.91 $ 10.98
-------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.24(a) $ 0.30(a) $ 0.31(a) $ 0.31(a) $ 0.38
Net realized and unrealized gain (loss) on investments (0.70) 0.09 0.25 (0.41) (0.04)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.46) $ 0.39 $ 0.56 $ (0.10) $ 0.34
-------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.05) $ (0.19) $ (0.28) $ (0.31) $ (0.35)
Net realized gain -- (0.06) -- (0.10) (0.06)
Tax return of capital (0.19) (0.04) (0.08) -- --
-------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.24) $ (0.29) $ (0.36) $ (0.41) $ (0.41)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.70) $ 0.10 $ 0.20 $ (0.51) $ (0.07)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.00 $ 10.70 $ 10.60 $ 10.40 $ 10.91
===============================================================================================================================
Total return (b) (4.41)% 3.75% 5.59% (1.00)% 3.16%
Ratio of net expenses to average net assets 1.00% 1.00% 1.00% 1.00% 1.01%
Ratio of net investment income (loss) to average net assets 2.31% 2.83% 2.99% 2.87% 3.57%
Portfolio turnover rate 64% 70% 37% 34% 51%
Net assets, end of period (in thousands) $ 18,954 $ 23,252 $ 13,579 $ 12,737 $ 11,601
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 1.99% 2.13% 2.67% 2.67% 2.52%
Net investment income (loss) to average net assets 1.32% 1.70% 1.32% 1.20% 2.06%
===============================================================================================================================
* 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 upon the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
The accompanying notes are an integral part of these financial statements.
50 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
-------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/18 10/31/17 10/31/16* 10/31/15* 10/31/14*
-------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.73 $ 10.63 $ 10.43 $ 10.94 $ 11.01
-------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.16(a) $ 0.21(a) $ 0.22(a) $ 0.21(a) $ 0.29
Net realized and unrealized gain (loss) on investments (0.71) 0.09 0.25 (0.41) (0.05)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.55) $ 0.30 $ 0.47 $ (0.20) $ 0.24
-------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.04) $ (0.10) $ (0.19) $ (0.21) $ (0.25)
Net realized gain -- (0.06) -- (0.10) (0.06)
Tax return of capital (0.11) (0.04) (0.08) -- --
-------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.15) $ (0.20) $ (0.27) $ (0.31) $ (0.31)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.70) $ 0.10 $ 0.20 $ (0.51) $ (0.07)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.03 $ 10.73 $ 10.63 $ 10.43 $ 10.94
===============================================================================================================================
Total return (b) (5.19)% 2.88% 4.67% (1.87)% 2.24%
Ratio of net expenses to average net assets 1.81% 1.81% 1.90% 1.90% 1.91%
Ratio of net investment income (loss) to average net assets 1.53% 2.00% 2.10% 1.96% 2.67%
Portfolio turnover rate 64% 70% 37% 34% 51%
Net assets, end of period (in thousands) $ 8,781 $ 10,024 $ 4,370 $ 4,113 $ 4,156
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 2.14% 2.21% 2.53% 2.56% 2.71%
Net investment income (loss) to average net assets 1.20% 1.60% 1.46% 1.30% 1.87%
===============================================================================================================================
* 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 upon the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 51
Financial Highlights (continued)
-------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/18 10/31/17 10/31/16* 10/31/15* 10/31/14*
-------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.80 $ 10.69 $ 10.50 $ 11.00 $ 11.07
-------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.26(a) $ 0.33(a) $ 0.34(a) $ 0.33(a) $ 0.42
Net realized and unrealized gain (loss) on investments (0.71) 0.10 0.24 (0.39) (0.05)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.45) $ 0.43 $ 0.58 $ (0.06) $ 0.37
-------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.06) $ (0.22) $ (0.31) $ (0.34) $ (0.38)
Net realized gain -- (0.06) -- (0.10) (0.06)
Tax return of capital (0.21) (0.04) (0.08) -- --
-------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.27) $ (0.32) $ (0.39) $ (0.44) $ (0.44)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.72) $ 0.11 $ 0.19 $ (0.50) $ (0.07)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.08 $ 10.80 $ 10.69 $ 10.50 $ 11.00
===============================================================================================================================
Total return (b) (4.29)% 4.10% 5.73% (0.62)% 3.42%
Ratio of net expenses to average net assets 0.75% 0.75% 0.75% 0.75% 0.76%
Ratio of net investment income (loss) to average net assets 2.46% 3.10% 3.24% 3.12% 3.81%
Portfolio turnover rate 64% 70% 37% 34% 51%
Net assets, end of period (in thousands) $ 21,195 $ 14,645 $ 10,767 $ 12,178 $ 12,525
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 1.14% 1.17% 1.41% 1.39% 1.50%
Net investment income (loss) to average net assets 2.07% 2.68% 2.59% 2.48% 3.07%
===============================================================================================================================
* 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 upon the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
The accompanying notes are an integral part of these financial statements.
52 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
Notes to Financial Statements | 10/31/18
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 five classes of shares designated as Class A, Class C, Class K,
Class T and Class Y shares. Class K and Class T shares had not commenced
operations as of October 31, 2018. Each class of shares represents an interest
in the same portfolio of investments of the Fund and has identical rights (based
on relative net asset values) to assets and liquidation proceeds. Share classes
can bear different rates of class-specific fees and expenses, such as transfer
agent and distribution fees. Differences in class-specific fees and expenses
will result in differences in net investment income and, therefore, the payment
of different dividends from net investment income earned by each class. The
Amended and Restated Declaration of Trust of the Fund gives the Board of
Trustees the flexibility to specify either per-share voting or dollar-weighted
voting when submitting matters for shareowner approval. Under per-share voting,
each share of a class of the Fund is entitled to one vote. Under dollar-weighted
voting, a shareowner's voting power is determined not by the number of shares
owned, but by the dollar value of the shares on the record date. Each share
class has exclusive voting rights with respect to matters affecting only that
class, including with respect to the distribution plan for that class. There is
no distribution plan for Class Y shares.
Amundi Pioneer Asset Management, Inc., an indirect wholly owned subsidiary of
Amundi and Amundi's wholly owned subsidiary, Amundi USA, Inc., serves as the
Fund's investment adviser (the "Adviser"). Amundi Pioneer Distributor, Inc., an
affiliate of Amundi Pioneer Asset Management, Inc., serves as the Fund's
distributor (the "Distributor").
In August 2018, the SEC released a Disclosure Update and Simplification Final
Rule. The Final Rule amends Regulation S-X disclosures requirements to conform
them to U.S. Generally Accepted Accounting Principles ("U.S. GAAP") for
investment companies. The Fund's financial statements were prepared in
compliance with the new amendments to Regulation S-X.
The Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. U.S. GAAP requires the management of the
Fund to make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 53
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the New
York Stock Exchange ("NYSE") is open, as of the close of regular trading on
the NYSE.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to
supply prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
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.
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.
54 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
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.
Options contracts are generally valued at the mean between the last bid
and ask prices on the principal exchange where they are traded.
Over-the-counter ("OTC") options and options on swaps ("swaptions") are
valued using prices supplied by independent pricing services, which
consider such factors as market prices, market events, quotations from one
or more brokers, Treasury spreads, yields, maturities and ratings, or may
use a pricing matrix or other fair value methods or techniques to provide
an estimated value of the security or instrument.
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.
Futures contracts are generally valued at the closing settlement price
established by the exchange on which they are traded.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealers Association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Shares of
exchange-listed closed-end funds are valued by using the last sale price
on the principal exchange where they are traded.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 55
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, 2018, 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. Dividend and interest income are reported
net of unrecoverable foreign taxes withheld at the applicable country
rates and net of income accrued on defaulted securities.
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
56 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on
foreign currency contracts, disposition of foreign currencies and the
difference between the amount of income accrued and the U.S. dollars
actually received. Further, the effects of changes in foreign currency
exchange rates on investments are not segregated on the Statement of
Operations from the effects of changes in the market prices of those
securities, but are included with the net realized and unrealized gain or
loss on investments.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income and net realized capital gains,
if any, to its shareowners. Therefore, no provision for federal income
taxes is required. As of October 31, 2018, the Fund did not accrue any
interest or penalties with respect to uncertain tax positions, which, if
applicable, would be recorded as an income tax expense on the Statement of
Operations. Tax returns filed within the prior three years remain subject
to examination by federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary over distributions for
financial statement purposes resulting from differences in the recognition
or classification of income or distributions for financial statement and
tax purposes. Capital accounts within the financial statements are
adjusted for permanent book/tax differences to reflect tax character, but
are not adjusted for temporary differences.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 57
At October 31, 2018, the Fund reclassified $550,079 to decrease
distributions in excess of earnings and $550,079 to decrease paid-in
capital to reflect permanent book/tax differences. These adjustments have
no impact on net assets or the results of operations.
The tax character of distributions paid during the years ended October 31,
2018 and October 31, 2017, were as follows:
---------------------------------------------------------------------------------
2018 2017
---------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ -- $ 881,209
Distribution in excess 229,211 --
Long-term capital gain -- 146,172
Return of capital 1,140,144 176,102
---------------------------------------------------------------------------------
Total $ 1,369,355 $ 1,203,483
=================================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2018:
---------------------------------------------------------------------------------
2018
---------------------------------------------------------------------------------
Distributable earnings:
Current year dividend payable $ (43,968)
Unrealized depreciation (2,241,426)
---------------------------------------------------------------------------------
Total $ (2,285,394)
=================================================================================
The difference between book-basis and tax-basis net unrealized
depreciation is attributable to the adjustments related to sidecars, the
mark-to-market of forward, swaps and futures contracts, and interest
accruals on preferred stock.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor earned $790 in underwriting commissions on the sale of Class A
shares during the year ended October 31, 2018.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset
value attributable to Class A and Class C shares of the Fund, respectively
(see Note 4). Class Y shares do not pay distribution fees. All expenses
and fees paid to the Fund's transfer agent for its services are allocated
among the classes of shares based on the number of accounts in each class
and the ratable allocation of related out-of-pocket expenses (see Note 3).
58 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
G. Risks
The value of securities held by the Fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real
or perceived adverse economic, political or regulatory conditions,
inflation, changes in interest rates, lack of liquidity in the bond
markets or adverse investor sentiment. In the past several years,
financial markets have experienced increased volatility, depressed
valuations, decreased liquidity and heightened uncertainty. These
conditions may continue, recur, worsen or spread.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or
other risks affecting those industries and sectors. The Fund's investments
in foreign markets and countries with limited developing markets may
subject the Fund to a greater degree of risk than investments in a
developed market. These risks include disruptive political or economic
conditions and the imposition of adverse governmental laws or currency
exchange restrictions.
Interest rates in the U.S. have been historically low and have begun to
rise, so the Fund faces a heightened risk that interest rates may continue
to rise. A general rise in interest rates could adversely affect the price
and liquidity of fixed-income securities and could also result in
increased redemptions from the Fund.
The Fund invests in below investment grade (high yield) debt securities
and preferred stocks. Some of these high yield securities may be
convertible into equity securities of the issuer. Debt securities rated
below investment grade are commonly referred to as "junk bonds" and are
considered speculative. These securities involve greater risk of loss, are
subject to greater price volatility, and are less liquid, especially
during periods of economic uncertainty or change, than higher rated debt
securities.
With the increased use of technologies such as the Internet to conduct
business, the Fund is susceptible to operational, information security and
related risks. While the Fund's Adviser has established business continuity
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 59
plans in the event of, and risk management systems to prevent, limit or
mitigate, such cyber-attacks, there are inherent limitations in such plans
and systems including the possibility that certain risks have not been
identified. Furthermore, the Fund cannot control the cybersecurity plans
and systems put in place by service providers to the Fund such as Brown
Brothers Harriman & Co., the Fund's custodian and accounting agent, and
DST Asset Manager Solutions, Inc., the Fund's transfer agent. In addition,
many beneficial owners of Fund shares hold them through accounts at
broker-dealers, retirement platforms and other financial market
participants over which neither the Fund nor Amundi Pioneer exercises
control. Each of these may in turn rely on service providers to them,
which are also subject to the risk of cyber-attacks. Cybersecurity
failures or breaches at Amundi Pioneer or the Fund's service providers or
intermediaries have the ability to cause disruptions and impact business
operations, potentially resulting in financial losses, interference with
the Fund's ability to calculate its net asset value, impediments to
trading, the inability of Fund shareowners to effect share purchases,
redemptions or exchanges or receive distributions, loss of or unauthorized
access to private shareowners information and violations of applicable
privacy and other laws, regulatory fines, penalties, reputational damage,
or additional compliance costs. Such costs and losses may not be covered
under any insurance. In addition, maintaining vigilance against
cyber-attacks may involve substantial costs over time, and system
enhancements may themselves be subject to cyber-attacks.
The Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
H. Insurance-Linked Securities ("ILS")
The Fund invests in event-linked and other ILS. The Fund could lose a
portion or all of the principal it has invested in an ILS, and the right
to additional interest payments with respect to the security, upon the
occurrence of one or more trigger events, as defined within the terms of
an insurance-linked security. Trigger events, generally, are hurricanes,
earthquakes, or other natural events of a specific size or magnitude that
occur in a designated geographic region during a specified time period,
and/or that involve losses or other metrics that exceed a specific amount.
There is no way to accurately predict whether a trigger event will occur
and, accordingly, ILS carry significant risk. The Fund is entitled to
receive principal and interest payments so long as no trigger event occurs
of the description and magnitude specified by the instrument. In addition
to the specified trigger events, ILS may expose the Fund to other risks,
including but not limited to issuer (credit) default, adverse regulatory
or jurisdictional interpretations and adverse tax consequences.
60 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
The Fund's investments in ILS may include special purpose vehicles
("SPVs") or similar instruments structured to comprise a portion of a
reinsurer's catastrophe-oriented business, known as quota share
instruments (sometimes referred to as reinsurance sidecars), or to provide
reinsurance relating to specific risks to insurance or reinsurance
companies through a collateralized instrument, known as collateralized
reinsurance. Structured reinsurance investments also may include industry
loss warranties ("ILWs"). A traditional ILW takes the form of a bilateral
reinsurance contract, but there are also products that take the form of
derivatives, collateralized structures, or exchange-traded instruments.
Where the ILS are based on the performance of underlying reinsurance
contracts, the Fund has limited transparency into the individual
underlying contracts, and therefore must rely upon the risk assessment and
sound underwriting practices of the issuer. Accordingly, it may be more
difficult for the Adviser to fully evaluate the underlying risk profile of
the Fund's structured reinsurance investments, and therefore the Fund's
assets are placed at greater risk of loss than if the Adviser had more
complete information. Structured reinsurance instruments generally will
be considered illiquid securities by the Fund. These securities may be
difficult to purchase, sell or unwind. Illiquid securities also may be
difficult to value. If the Fund is forced to sell an illiquid asset, the
Fund may be forced to sell at a loss.
Additionally, the Fund may gain exposure to ILS by investing in a closed
end interval fund, Pioneer ILS Interval Fund, an affiliate of the Adviser.
The Fund's investment in Pioneer ILS Interval Fund at October 31, 2018 is
listed in the Schedule of Investments.
I. Purchased Options
The Fund may purchase put and call options to seek to increase total
return. Purchased call and put options entitle the Fund to buy and sell a
specified number of shares or units of a particular security, currency or
index at a specified price at a specific date or within a specific period
of time. Upon the purchase of a call or put option, the premium paid by
the Fund is included on the Statement of Assets and Liabilities as an
investment. All premiums are marked-to-market daily, and any unrealized
appreciation or depreciation is recorded on the Fund's Statement of
Operations. As the purchaser of an index option, the Fund has the right to
receive a cash payment equal to any depreciation in the value of the index
below the strike price of the option (in the case of a put) or equal to
any appreciation in the value of the index over the strike price of the
option (in the case of a call) as of the valuation date of the option.
Premiums paid for purchased call and put options which have expired are
treated as realized losses on investments on the Statement of Operations.
Upon the exercise or closing of a purchased put option, the premium is
offset against the proceeds on the sale of the underlying security
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 61
or financial instrument in order to determine the realized gain or loss on
investments. Upon the exercise or closing of a purchased call option, the
premium is added to the cost of the security or financial instrument. The
risk associated with purchasing options is limited to the premium
originally paid.
The average market value of purchased options contracts open during the
year ended October 31, 2018 was $17,728. Open purchased options at October
31, 2018 are listed in the Fund's Schedule of Investments.
J. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price,
upon the exercise of the option. When the Fund writes an option, an amount
equal to the premium received by the Fund is recorded as "Written options
outstanding" on the Statement of Assets and Liabilities and is
subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments on the
Statement of Operations. The difference between the premium and the amount
paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain on the Statement of
Operations, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss on the Statement of
Operations. If a call option is exercised, the premium is added to the
proceeds from the sale of the underlying security in determining whether
the Fund has realized a gain or loss. The Fund as writer of an option
bears the market risk of an unfavorable change in the price of the
security underlying the written option.
The average market value of written options for the year ended October 31,
2018 was $(7,438). Open written options contracts at October 31, 2018 are
listed in the Fund's Schedule of Investments.
K. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts ("contracts")
for the purchase or sale of a specific foreign currency at a fixed price
on a future date. All contracts are marked to market daily at the
applicable exchange rates, and any resulting unrealized appreciation or
depreciation is recorded in the Fund's financial statements. The Fund
records realized gains and losses at the time a contract is offset by
entry into a closing transaction or extinguished by delivery of the
currency. Risks may arise upon entering into these contracts from the
potential inability of counterparties to meet the terms of the contract
and from unanticipated movements in the value of foreign currencies
relative to the U.S. dollar (see Note 6).
62 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
At October 31, 2018, the Fund had entered into various forward foreign
currency contracts that obligated the Fund to deliver or take delivery of
currencies at specified future maturity dates. Alternatively, prior to the
settlement date of a forward foreign currency contract, the Fund may close
out such contract by entering into an offsetting contract.
The average market value of forward foreign currency contracts open during
the year ended October 31, 2018, was $6,822,987. Forward foreign currency
contracts outstanding at October 31, 2018, are listed in the Schedule of
Investments.
L. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on
a futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
October 31, 2018, is recorded as "Futures collateral" on the Statement of
Assets and Liabilities.
Subsequent payments for futures contracts ("variation margin") are paid or
received by the Fund, depending on the daily fluctuation in the value of
the contracts, and are recorded by the Fund as unrealized appreciation or
depreciation. Cash received from or paid to the broker related to previous
margin movement is held in a segregated account at the broker and is
recorded as either "Due from broker for futures" or "Due to broker for
futures" on the Statement of Assets and Liabilities. When the contract is
closed, the Fund realizes a gain or loss equal to the difference between
the opening and closing value of the contract as well as any fluctuation
in foreign currency exchange rates where applicable. Futures contracts are
subject to market risk, interest rate risk and currency exchange rate
risk. Changes in value of the contracts may not directly correlate to the
changes in value of the underlying securities. With futures, there is
reduced counterparty credit risk to the Fund since futures are
exchange-traded and the exchange's clearinghouse, as counterparty to all
exchange-traded futures, guarantees the futures against default.
The average market value of contracts open during the year ended October
31, 2018, was $(4,889,991). Open futures contracts outstanding at October
31, 2018 are listed in the Schedule of Investments.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 63
M. Credit Default Swap Contracts
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event or an underlying
reference obligation, which may be a single security or a basket or index
of securities. The Fund may buy or sell credit default swap contracts to
seek to increase the Fund's income, or to attempt to hedge the risk of
default on portfolio securities. A credit default swap index is used to
hedge risk or take a position on a basket of credit entities or indices.
As a seller of protection, the Fund would be required to pay the notional
(or other agreed-upon) value of the referenced debt obligation to the
counterparty in the event of a default by a U.S. or foreign corporate
issuer of a debt obligation, which would likely result in a loss to the
Fund. In return, the Fund would receive from the counterparty a periodic
stream of payments during the term of the contract, provided that no event
of default occurred. The maximum exposure of loss to the seller would be
the notional value of the credit default swaps outstanding. If no default
occurs, the Fund would keep the stream of payments and would have no
payment obligation. The Fund may also buy credit default swap contracts in
order to hedge against the risk of default of debt securities, in which
case the Fund would function as the counterparty referenced above.
As a buyer of protection, the Fund makes an upfront or periodic payment to
the protection seller in exchange for the right to receive a contingent
payment. An upfront payment made by the Fund, as the protection buyer, is
recorded within the "Swap contracts, at value" line item on the Statement
of Assets and Liabilities. Periodic payments received or paid by the Fund
are recorded as realized gains or losses on the Statement of Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded within the "Swap contracts, at value" line item on the Statement
of Assets and Liabilities. Payments received or made as a result of a
credit event or upon termination of the contract are recognized, net of
the appropriate amount of the upfront payment, as realized gains or losses
on the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the
Fund is a protection
64 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
buyer and no credit event occurs, it will lose its investment. If the Fund
is a protection seller and a credit event occurs, the value of the
referenced debt instrument received by the Fund, together with the
periodic payments received, may be less than the amount the Fund pays to
the protection buyer, resulting in a loss to the Fund. In addition,
obligations under sell protection credit default swaps may be partially
offset by net amounts received from settlement of buy protection credit
default swaps entered into by the Fund for the same reference obligation
with the same counterparty.
Certain swap contracts that are cleared through a central clearinghouse
are referred to as centrally cleared swaps. All payments made or received
by the Fund are pursuant to a centrally cleared swap contract with the
central clearing party rather than the original counterparty. Upon
entering into a centrally cleared swap contract, the Fund is required to
make an initial margin deposit, either in cash or in securities. The daily
change in value on open centrally cleared contracts is recorded as
"Variation margin for centrally cleared swaps" on the Statement of Assets
and Liabilities. Cash received from or paid to the broker related to
previous margin movement is held in a segregated account at the broker and
is recorded as either "Due from broker for swaps" or "Due to broker for
swaps" on the Statement of Assets and Liabilities. The amount of cash
deposited with a broker as collateral at October 31, 2018, is recorded as
"Swaps collateral" on the Statement of Assets and Liabilities.
The average market value of credit default swap contracts open during the
year ended October 31, 2018 was $20,122. Open credit default swap
contracts at October 31, 2018 are listed in the Schedule of Investments.
2. Management Agreement
The Adviser manages the Fund's portfolio. Effective October 1, 2018, management
fees are calculated daily at the annual rate of 0.50% of the Fund's average
daily net assets up to $1 billion and 0.45% of the of the Fund's average daily
net assets over $1 billion. Prior to August 1, 2018, management fees were
calculated daily at the annual rate of 0.50% of the Fund's average daily net
assets. For the year ended October 31, 2018, the effective management fee was
equivalent to 0.47% 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
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 65
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, 2018, are reflected on
the Statement of Operations. These expense limitations are in effect through
March 1, 2019. There can be no assurance that the Adviser will extend the
expense limitation agreement for a class of shares beyond the date referred to
above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$8,377 in management fees, administrative costs and certain other reimbursements
payable to the Adviser at October 31, 2018.
3. Transfer Agent
DST Asset Manager Solutions, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings, and outgoing phone calls. For the year
ended October 31, 2018, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareowner Communications:
--------------------------------------------------------------------------------
Class A $ 3,785
Class C 1,659
Class Y 1,496
--------------------------------------------------------------------------------
Total $ 6,940
================================================================================
4. Distribution and Service Plans
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A 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
66 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
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 $1,862 in distribution fees payable to the Distributor at October
31, 2018.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to the
Distributor. For the year ended October 31, 2018, CDSCs in the amount of $9,382
were paid to the Distributor.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
"Funds'), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The Fund
participates in a credit facility that is in the amount of $250 million. Under
such credit facility, depending on the type of loan, interest on borrowings is
payable at the London Interbank Offered Rate ("LIBOR") plus 0.90% on an
annualized basis, or the Alternate Base Rate, which is the greater of (a) the
facility's administrative agent's daily announced prime rate on the borrowing
date, (b) 2% plus the Federal Funds Rate on the borrowing date, or (c) 2% plus
the overnight Eurodollar rate on the borrowing date. The Funds pay an annual
commitment fee to participate in a credit facility. The commitment fee is
allocated among participating Funds based on an allocation schedule set forth in
the credit agreement. For the year ended October 31, 2018, the Fund had no
borrowings under the credit facility.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 67
6. Master Netting Agreements
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the trading
of certain Over the Counter ("OTC") derivatives and typically contains, among
other things, close-out and set-off provisions which apply upon the occurrence
of an event of default and/or a termination event as defined under the relevant
ISDA Master Agreement. The ISDA Master Agreement may also give a party the right
to terminate all transactions traded under such agreement if, among other
things, there is deterioration in the credit quality of the other party.
Upon an event of default or a termination of the ISDA Master Agreement, the
non-defaulting party has the right to close out all transactions under such
agreement and to net amounts owed under each transaction to determine one net
amount payable by one party to the other. The right to close out and net
payments across all transactions under the ISDA Master Agreement could result in
a reduction of the Fund's credit risk to its counterparty equal to any amounts
payable by the Fund under the applicable transactions, if any. However, the
Fund's right to setoff may be restricted or prohibited by the bankruptcy or
insolvency laws of the particular jurisdiction to which each specific ISDA of
each counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collateral pledged for the benefit of the Fund and/or
counterparty is held in segregated accounts by the Fund's custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Fund's collateral obligations, if any, will be
reported separately on the Statement of Assets and Liabilities as "Swaps
collateral". Securities pledged by the Fund as collateral, if any, are
identified as such in the Schedule of Investments.
Financial instruments subject to an enforceable master netting agreement, such
as an ISDA Master Agreement, have been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Fund
as of October 31, 2018.
68 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
--------------------------------------------------------------------------------------------------------
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 NA $ 82,192 $ (7,337) $ -- $ -- $ 74,855
Bank of New York 4,828 (3,718) -- -- 1,110
Citibank NA 15,303 -- -- -- 15,303
Goldman Sachs
International 15,826 (11,716) -- -- 4,110
JPMorgan Chase
Bank NA 16,633 (16,633) -- -- --
Morgan Stanley
Capital Services LLC 2,317 -- -- -- 2,317
State Street Bank &
Trust Co. 14,726 (14,726) -- -- --
--------------------------------------------------------------------------------------------------------
Total $ 151,825 $ (54,130) $ -- $ -- $ 97,695
========================================================================================================
--------------------------------------------------------------------------------------------------------
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 NA $ 7,337 $ (7,337) $ -- $ -- $ --
Bank of New York 3,718 (3,718) -- -- --
Citibank NA -- -- -- -- --
Goldman Sachs
International 11,716 (11,716) -- -- --
JPMorgan Chase
Bank NA 41,333 (16,633) -- -- 24,700
Morgan Stanley
Capital Services LLC -- -- -- -- --
State Street Bank &
Trust Co. 249,104 (14,726) -- -- 234,378
--------------------------------------------------------------------------------------------------------
Total $ 313,208 $ (54,130) $ -- $ -- $ 259,078
========================================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged, as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
7. Additional Disclosures about Derivative Instruments and Hedging Activities
The Fund's use of derivatives may enhance or mitigate the Fund's exposure to the
following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 69
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange rate risk), whether caused by factors specific to
an individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at October 31,
2018 was as follows:
------------------------------------------------------------------------------------------------
Foreign
Statement of Assets Interest Credit Exchange Equity Commodity
and Liabilities Rate Risk Risk Rate Risk Risk Risk
------------------------------------------------------------------------------------------------
Assets
Currency put options purchased* $ -- $ -- $ 63,826 $ -- $ --
Net unrealized appreciation on
futures contracts 104,726 -- -- -- --
Swap contracts, at value -- 444 -- -- --
------------------------------------------------------------------------------------------------
Total Value $ 104,726 $ 444 $ 63,826 $ -- $ --
================================================================================================
------------------------------------------------------------------------------------------------
Foreign
Statement of Assets Interest Credit Exchange Equity Commodity
and Liabilities Rate Risk Risk Rate Risk Risk Risk
------------------------------------------------------------------------------------------------
Liabilities
Written options outstanding $ -- $ -- $ 7,337 $ -- $ --
Net unrealized depreciation on
forward foreign
currency contracts -- -- 220,189 -- --
------------------------------------------------------------------------------------------------
Total Value $ -- $ -- $ 227,526 $ -- $ --
================================================================================================
* Reflects the market value of purchased option contracts (see Note 1I.).
These amounts are included in investments in unaffiliated issuers, at
value, on the statement of assets and liabilities.
70 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at October 31, 2018 was as follows:
------------------------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Operations Rate Risk Risk Rate Risk Risk Risk
------------------------------------------------------------------------------------------------
Net realized gain (loss) on:
Currency put options purchased* $ -- $ -- $ 43,135 $ -- $ --
Written options -- -- (17,569) -- --
Forward foreign
currency contracts -- -- (706,008) -- --
Futures contracts 245,608 -- -- -- --
Swap contracts -- 18,109 -- -- --
------------------------------------------------------------------------------------------------
Total Value $ 245,608 $ 18,109 $ (680,442) $ -- $ --
================================================================================================
Change in net unrealized
appreciation (depreciation) on:
Currency put options purchased** $ -- $ -- $ 26,532 $ -- $ --
Written options -- -- 29,957 -- --
Forward foreign
currency contracts -- -- (196,214) -- --
Futures contracts 22,461 -- -- -- --
Swap contracts -- (5,699) -- -- --
------------------------------------------------------------------------------------------------
Total Value $ 22,461 $ (5,699) $ (139,725) $ -- $ --
================================================================================================
* Reflects the net realized gain (loss) on purchased option contracts (see
Note 1I.). These amounts are included in net realized gain (loss) on
investments in unaffiliated issuers, on the statements of operations.
** Reflects the change in net unrealized appreciation (depreciation) on
purchased option contracts (see Note 1I.). These amounts are included in
change in net unrealized appreciation (depreciation) on Investments in
unaffiliated issuers, on the statements of operations.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 71
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII and the Shareholders of
Pioneer Global Multisector Income Fund:
--------------------------------------------------------------------------------
Opinion on the Financial Statements
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, 2018, and the related statements of operations,
changes in net assets and the financial highlights for the year then ended and
the related notes, and the statement of changes in net assets and financial
highlights for the year ended October 31, 2017 (collectively referred to as the
"financial statements"). The financial highlights for periods ended October 31,
2014, October 31, 2015 and October 31, 2016 were audited by another independent
registered public accounting firm whose report, dated December 23, 2016,
expressed an unqualified opinion on those financial highlights. In our opinion,
the financial statements present fairly, in all material respects, the financial
position of the Fund at October 31, 2018, the results of its operations, the
changes in its net assets, and the financial highlights for the year ended, and
the statement of changes in net assets and financial highlights for the year
ended October 31, 2017, in conformity with U.S. generally accepted accounting
principles.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our
responsibility is to express an opinion on the Fund's financial statements based
on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required to
be independent with respect to the Fund in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Fund is not required to have,
nor were we engaged to perform, an audit of the Fund's internal control over
financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting, but not for the
purpose of expressing an opinion on the effectiveness of the Fund's internal
control over financial reporting. Accordingly, we express no such opinion.
72 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of October 31, 2018, by correspondence with the custodian and brokers.
Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the Fund's auditor since 2017.
Boston, Massachusetts
December 21, 2018
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 73
ADDITIONAL INFORMATION
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the "Adviser"), the
Fund's investment adviser, was an indirect, wholly owned subsidiary of UniCredit
S.p.A. ("UniCredit"). On that date, UniCredit completed the sale of its Pioneer
Investments business, which includes the Adviser, to Amundi (the "Transaction").
As a result of the Transaction, the Adviser became an indirect, wholly owned
subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A. Amundi is
headquartered in Paris, France, and, as of September 30, 2016, had more than
$1.1 trillion in assets under management worldwide.
Deloitte & Touche LLP ("D&T"), the Fund's previous independent registered public
accounting firm, informed the Audit Committee and the Board that it would no
longer be independent with respect to the Fund upon the completion of the
Transaction as a result of certain services being provided to Amundi and Credit
Agricole, and, accordingly, that it intended to resign as the Fund's independent
registered public accounting firm upon the completion of the Transaction. D&T's
resignation was effective on July 3, 2017, when the Transaction was completed.
During the periods as to which D&T has served as the Fund's independent
registered public accounting firm, D&T's reports on the Fund's financial
statements have not contained an adverse opinion or disclaimer of opinion and
have not been qualified or modified as to uncertainty, audit scope or accounting
principles. Further, there have been no disagreements with D&T on any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedure, which, if not resolved to the satisfaction of D&T, would
have caused D&T to make reference to the subject matter of the disagreement in
connection with its report on the financial statements. In addition, there have
been no reportable events of the kind described in Item 304(a)(1)(v) of
Regulation S-K under the Securities Exchange Act of 1934.
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
an independent registered public accounting firm, Ernst & Young LLP ("EY").
74 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
Prior to its engagement, EY had advised the Fund's Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities and Exchange
Commission ("SEC"): (a) project management support services to UniCredit in the
Czech Republic, Germany, Italy, Serbia and Slovenia in relation to twenty-two
projects, that were determined to be inconsistent with Rule 2-01(c)(4)(vi) of
Regulation S-X (management functions); (b) two engagements for UniCredit in
Italy where fees were contingent/success based and that were determined to be
inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent fees); (c) four
engagements where legal and expert services were provided to UniCredit in the
Czech Republic and Germany, and twenty engagements where the legal advisory
services were provided to UniCredit in Austria, Czech Republic, Italy and
Poland, that were determined to be inconsistent with Rule 2-01(c)(4)(ix) and (x)
of Regulation S-X (legal and expert services); and (d) two engagements for
UniCredit in Italy involving assistance in the sale of certain assets, that were
determined to be inconsistent with Rule 2-01(c)(4)(viii) of Regulation S-X
(broker-dealer, investment adviser or investment banking services). None of the
foregoing services involved the Fund, any of the other funds in the Pioneer
Family of Funds or any other Pioneer entity sold by UniCredit in the
Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Fund under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Fund, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 75
Approval of Investment Management Agreement
Amundi Pioneer Asset Management, Inc. ("APAM") serves as the investment adviser
to Pioneer Global Multisector Income Fund (the "Fund") pursuant to an investment
management agreement between APAM and the Fund. In order for APAM to remain the
investment adviser of the Fund, the Trustees of the Fund must determine annually
whether to renew the investment management agreement for the Fund.
The contract review process began in January 2018 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2018, July 2018
and September 2018. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year, and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings, in connection with the review of the Fund's
investment management agreement.
In March 2018, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment management agreement, and reviewed and
discussed the qualifications of the investment management teams for the Fund, as
well as the level of investment by the Fund's portfolio managers in the Fund. In
July 2018, the Trustees, among other things, reviewed the Fund's management fees
and total expense ratios, the financial statements of APAM and its parent
companies, profitability analyses provided by APAM, and analyses from APAM as to
possible economies of scale. The Trustees also reviewed the profitability of the
institutional business of APAM and APAM's affiliate, Amundi Pioneer
Institutional Asset Management, Inc. ("APIAM" and, together with APAM, "Amundi
Pioneer"), as compared to that of APAM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of APAM's and APIAM's institutional accounts, as well as the
different services provided by APAM to the Fund and by APAM and APIAM to the
institutional accounts. The Trustees further considered contract review
materials, including additional materials received in response to the Trustees'
request, in September 2018.
At a meeting held on September 18, 2018, based on their evaluation of the
information provided by APAM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment management agreement for another year. In approving
the renewal of the investment management agreement, the Trustees
76 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by APAM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed APAM's investment approach
for the Fund and its research process. The Trustees considered the resources of
APAM and the personnel of APAM who provide investment management services to the
Fund. They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. They considered the non-investment resources and personnel
of APAM that are involved in APAM's services to the Fund, including APAM's
compliance, risk management, and legal resources and personnel. The Trustees
noted the substantial attention and high priority given by APAM's senior
management to the Pioneer Fund complex.
The Trustees considered that APAM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
APAM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to APAM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by APAM to the Fund were
satisfactory and consistent with the terms of the investment management
agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by APAM and information comparing the Fund's
performance with the performance of its peer group of funds, as classified by
Morningstar, Inc. (Morningstar), and the performance of the Fund's benchmark
index. They also discuss the Fund's performance with APAM on a regular basis.
The Trustees' regular reviews and discussions were factored into the Trustees'
deliberations concerning the renewal of the investment management agreement.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 77
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees of its peer group of funds as classified by
Morningstar and also to the expense ratios of a peer group of funds selected on
the basis of criteria determined by the Independent Trustees for this purpose
using data provided by Strategic Insight Mutual Fund Research and Consulting,
LLC (Strategic Insight), an independent third party. The peer group comparisons
referred to below are organized in quintiles. Each quintile represents one-fifth
of the peer group. In all peer group comparisons referred to below, first
quintile is most favorable to the Fund's shareowners. The Trustees noted that
they separately review and consider the impact of the Fund's transfer agency and
Fund- and APAM-paid expenses for sub-transfer agency and intermediary
arrangements, and that the results of the most recent such review were
considered in the consideration of the Fund's expense ratio.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the third quintile relative to the management fees paid by
other funds in its Morningstar category for the comparable period. The Trustees
considered that the expense ratio of the Fund's Class A shares for the most
recent fiscal year was in the third quintile relative to its Strategic Insight
peer group for the comparable period. The Trustees noted that APAM had agreed to
waive fees and/or reimburse expenses in order to limit the ordinary operating
expenses of the Fund.
The Trustees reviewed management fees charged by APAM and APIAM to institutional
and other clients, including publicly offered European funds sponsored by APAM's
affiliates, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered APAM's costs in providing services to the Fund and APAM's and
APIAM's costs in providing services to the other clients and considered the
differences in management fees and profit margins for fund and non-fund
services. In evaluating the fees associated with APAM's and APIAM's client
accounts, the Trustees took into account the respective demands, resources and
complexity associated with the Fund and other client accounts. The Trustees
noted that, in some instances, the fee rates for those clients were lower than
the management fee for the Fund and considered that, under the investment
management agreement with the Fund, APAM performs additional services for the
Fund that it does not provide to those other clients or services that are
broader in scope, including oversight of the Fund's other service providers and
activities related to compliance and the extensive regulatory and tax regimes to
which the Fund is subject. The Trustees also considered the entrepreneurial
risks associated with APAM's management of the Fund.
78 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
The Trustees concluded that the management fee payable by the Fund to APAM was
reasonable in relation to the nature and quality of the services provided by
APAM.
Profitability
The Trustees considered information provided by APAM regarding the profitability
of APAM with respect to the advisory services provided by APAM to the Fund,
including the methodology used by APAM in allocating certain of its costs to the
management of the Fund. The Trustees also considered APAM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results, including the profit margins, realized by APAM and APIAM from
non-fund businesses. The Trustees considered APAM's profit margins in comparison
to the limited industry data available and noted that the profitability of any
adviser was affected by numerous factors, including its organizational structure
and method for allocating expenses. The Trustees concluded that APAM's
profitability with respect to the management of the Fund was not unreasonable.
Economies of Scale
The Trustees considered APAM's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Fund and Fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify, and that, among other factors that may be relevant, are the following:
fee levels, expense subsidization, investment by APAM in research and analytical
capabilities and APAM's commitment and resource allocation to the Fund. The
Trustees noted that profitability also may be an indicator of the availability
of any economies of scale, although profitability may vary for other reasons
including due to reductions in expenses. The Trustees concluded that economies
of scale, if any, were being appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits that APAM enjoys from its
relationship with the Fund. The Trustees considered the character and amount of
fees paid or to be paid by the Fund, other than under the investment management
agreement, for services provided by APAM and its affiliates. The Trustees
further considered the revenues and profitability of APAM's businesses other
than the Fund business. To the extent applicable, the Trustees also considered
the benefits to the Fund and to APAM and its affiliates from the use of "soft"
commission dollars generated by the Fund to pay for research and brokerage
services.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 79
The Trustees considered that Amundi Pioneer is the principal U.S. asset
management business of Amundi, which is one of the largest asset managers
globally. Amundi's worldwide asset management business manages over $1.7
trillion in assets (including the Pioneer Funds). The Trustees considered that
APAM's relationship with Amundi creates potential opportunities for APAM, APIAM
and Amundi that derive from APAM's relationships with the Fund, including
Amundi's ability to market the services of APAM globally. The Trustees noted
that APAM has access to additional research and portfolio management
capabilities as a result of its relationship with Amundi and Amundi's enhanced
global presence that may contribute to an increase in the resources available to
APAM. The Trustees considered that APAM and the Fund receive reciprocal
intangible benefits from the relationship, including mutual brand recognition
and, for the Fund, direct and indirect access to the resources of a large global
asset manager. The Trustees concluded that any such benefits received by APAM as
a result of its relationship with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including the Independent Trustees, concluded that the investment
management agreement for the Fund, including the fees payable thereunder, was
fair and reasonable and voted to approve the proposed renewal of the investment
management agreement.
80 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
Trustees, Officers and Service Providers
Investment Adviser
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
DST Asset Manager Solutions, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at www.amundipioneer.com. This information is also available on the Securities
and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations and other directorships they have held during at least the past five
years. Trustees who are interested persons of the Fund within the meaning of the
1940 Act are referred to as Interested Trustees. Trustees who are not interested
persons of the Fund are referred to as Independent Trustees. Each of the
Trustees serves as a Trustee of each of the 43 U.S. registered investment
portfolios for which Amundi Pioneer serves as investment adviser (the "Pioneer
Funds"). The address for all Trustees and all officers of the Fund is 60 State
Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 81
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (68) Trustee since 2007. Private investor (2004 - 2008 and 2013 - Director, Broadridge Financial
Chairman of the Serves until a present); Chairman (2008 - 2013) and Chief Solutions, Inc. (investor
Board and Trustee successor trustee is Executive Officer (2008 - 2012), Quadriserv, communications and securities
elected or earlier Inc. (technology products for securities lending processing provider for
retirement or industry); and Senior Executive Vice President, financial services industry)
removal. The Bank of New York (financial and securities (2009 - present); Director,
services) (1986 - 2004) Quadriserv, Inc. (2005 - 2013);
and Commissioner, New Jersey
State Civil Service Commission
(2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (74) Trustee since 2007. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - Trust(publicly-traded mortgage
successor trustee is 2004 and 2008 - present); Interim Chief REIT) (2004 - 2009, 2012 -
elected or earlier Executive Officer, Oxford Analytica, Inc. present); Director of The Swiss
retirement or (privately held research and consulting company) Helvetia Fund, Inc. (closed-
removal. (2010); Executive Vice President and Chief end fund) (2010 - 2017);
Financial Officer, I-trax, Inc. (publicly traded Director of Oxford Analytica,
health care services company) (2004 - 2007); and Inc. (2008 - 2015); and
Executive Vice President and Chief Financial Director of Enterprise
Officer, Pedestal Inc. (internet-based mortgage Community Investment, Inc.
trading company) (2000 - 2002); Private (privately-held affordable
Consultant (1995 - 1997); Managing Director, housing finance company) (1985
Lehman Brothers (1992 - 1995); and Executive, - 2010)
The World Bank (1979 - 1992)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (74) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and
successor trustee is Mellon Institutional Funds
elected or earlier Master Portfolio (oversaw 17
retirement or portfolios in fund complex)
removal. (1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
82 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (71) Trustee since 2007. Founding Director, Vice-President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee is firm) (1982 - present); Desautels Faculty of
elected or earlier Management, McGill University (1999 - 2017); and
retirement or Manager of Research Operations and
removal. Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (62) Trustee since 2017. Chief Investment Officer, 1199 SEIU Funds None
Trustee (Advisory Trustee (healthcare workers union pension funds) (2001 -
from 2014 - 2017) present); Vice President - International
Serves until a Investments Group, American International Group,
successor trustee is Inc. (insurance company) (1993 - 2001); Vice
elected or earlier President - Corporate Finance and Treasury
retirement or Group, Citibank, N.A. (1980 - 1986 and 1990 -
removal. 1993); Vice President - Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer of debt
securities) (1988 - 1990); Mortgage Strategies
Group, Shearson Lehman Hutton, Inc. (investment
bank) (1987 - 1988); and Mortgage Strategies
Group, Drexel Burnham Lambert, Ltd. (investment
bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (70) Trustee since 2007. President and Chief Executive Officer, Newbury Director of New America High
Trustee Serves until a Piret Company (investment banking firm) (1981 - Income Fund, Inc. (closed-end
successor trustee is present) investment company) (2004 -
elected or earlier present); and Member, Board of
retirement or Governors, Investment Company
removal. Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (71) Trustee since 2014. Consultant (investment company services) (2012 - None
Trustee Serves until a present); Executive Vice President, BNY Mellon
successor trustee is (financial and investment company services)
elected or earlier (1969 - 2012); Director, BNY International
retirement or Financing Corp. (financial services) (2002 -
removal. 2012); and Director, Mellon Overseas Investment
Corp. (financial services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 83
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (56)* Trustee since 2017. Director, CEO and President of Amundi Pioneer None
Trustee, President and Serves until a Asset Management USA, Inc. (since September
Chief Executive Officer successor trustee is 2014); Director, CEO and President of Amundi
elected or earlier Pioneer Asset Management, Inc. (since September
retirement or 2014); Director, CEO and President of Amundi
removal Pioneer Distributor, Inc. (since September
2014); Director, CEO and President of Amundi
Pioneer Institutional Asset Management, Inc.
(since September 2014); Chair, Amundi Pioneer
Asset Management USA, Inc., Amundi Pioneer
Distributor, Inc. and Amundi Pioneer
Institutional Asset Management, Inc. (September
2014 - 2018); Managing Director, Morgan Stanley
Investment Management (2010 - 2013); and
Director of Institutional Business, CEO of
International, Eaton Vance Management (2005 -
2010)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (60)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S. (since
successor trustee is 2010) of Amundi Pioneer Asset Management USA,
elected or earlier Inc.; Executive Vice President and Chief
retirement or Investment Officer, U.S. of Amundi Pioneer
removal (since 2008); Executive Vice President of Amundi
Pioneer Institutional Asset Management, Inc.
(since 2009); and Portfolio Manager of Amundi
Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers
or directors of the Fund's investment adviser and certain of its
affiliates.
84 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (53) Since 2007. Serves Vice President and Associate General Counsel of None
Secretary and at the discretion of Amundi Pioneer since January 2008; Secretary and
Chief Legal Officer the Board Chief Legal Officer of all of the Pioneer Funds
since June 2010; Assistant Secretary of all of
the Pioneer Funds from September 2003 to May
2010; and Vice President and Senior Counsel of
Amundi Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (57) Since 2010. Serves Fund Governance Director of Amundi Pioneer since None
Assistant Secretary at the discretion of December 2006 and Assistant Secretary of all the
the Board Pioneer Funds since June 2010; Manager - Fund
Governance of Amundi Pioneer from December 2003
to November 2006; and Senior Paralegal of Amundi
Pioneer from January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (55) Since 2010. Serves Senior Counsel of Amundi Pioneer since May 2013 None
Assistant Secretary at the discretion of and Assistant Secretary of all the Pioneer Funds
the Board since June 2010; and Counsel of Amundi Pioneer
from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (58) Since 2008. Serves Vice President - Fund Treasury of Amundi None
Treasurer and at the discretion of Pioneer; Treasurer of all of the Pioneer Funds
Chief Financial and the Board since March 2008; Deputy Treasurer of Amundi
Accounting Officer Pioneer from March 2004 to February 2008; and
Assistant Treasurer of all of the Pioneer Funds
from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (53) Since 2007. Serves Director - Fund Treasury of Amundi Pioneer; and None
Assistant Treasurer at the discretion of Assistant Treasurer of all of the Pioneer Funds
the Board
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (60) Since 2007. Serves Senior Manager - Fund Treasury of Amundi None
Assistant Treasurer at the discretion of Pioneer; and Assistant Treasurer of all of the
the Board Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 85
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (38) Since 2009. Serves Senior Manager - Fund Treasury of Amundi Pioneer None
Assistant Treasurer at the discretion of since November 2008; Assistant Treasurer of all
the Board of the Pioneer Funds since January 2009; and
Client Service Manager - Institutional Investor
Services at State Street Bank from March 2003 to
March 2007
------------------------------------------------------------------------------------------------------------------------------------
John Malone (47) Since 2018. Serves Managing Director, Chief Compliance Officer of None
Chief Compliance Officer at the discretion of Amundi Pioneer Asset Management; Amundi Pioneer
the Board Institutional Asset Management, Inc.; and the
Pioneer Funds since September 2018; and Chief
Compliance Officer of Amundi Pioneer
Distributor, Inc. since January 2014.
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (47) Since 2007. Serves Vice President - Investor Services Group of None
Anti-Money Laundering at the discretion of Amundi Pioneer and Anti-Money Laundering Officer
Officer the Board of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
86 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
This page is for your notes.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 87
This page is for your notes.
88 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
This page is for your notes.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 89
This page is for your notes.
90 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
This page is for your notes.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/18 91
This page is for your notes.
92 Pioneer Global Multisector Income Fund | Annual Report | 10/31/18
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address us.askamundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2018 Amundi Pioneer Asset Management 22520-10-1218
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
The audit fees for the Trust were $80,000
payable to Ernst & Young LLP for the year ended
October 31, 2018 and $70,000
for the year ended October 31, 2017.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
There were no audit-related services in 2018 or 2017.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
The tax fees for the Trust were $20,230
payable to Ernst & Young LLP for the year ended
October 31, 2018 and $20,230
for the year ended October 31, 2017.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
There were no other fees in 2018 or 2017.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Amudi Pioneer Asset Management, Inc, the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Trust's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Trust. For the
years ended October 31 2018 and 2017, there were no
services provided to an affiliate that required the
Trust's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Trust were $20,230
payable to Ernst & Young LLP for the year ended
October 31, 2018 and $20,230 for the year
ended October 31, 2017.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
Item 12. Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies.
(a) If the registrant is a closed-end management investment company,
provide the following dollar amounts of income and compensation related
to the securities lending activities of the registrant during its most
recent fiscal year:
N/A
(1) Gross income from securities lending activities;
N/A
(2) All fees and/or compensation for each of the following securities
lending activities and related services: any share of revenue generated
by the securities lending program paid to the securities lending agent(s)
(revenue split); fees paid for cash collateral management services
(including fees deducted from a pooled cash collateral reinvestment
vehicle) that are not included in the revenue split; administrative
fees that are not included in the revenue split; fees for
indemnification that are not included in the revenue split; rebates
paid to borrowers; and any other fees relating to the securities lending
program that are not included in the revenue split, including a description
of those other fees;
N/A
(3) The aggregate fees/compensation disclosed pursuant to paragraph (2); and
N/A
(4) Net income from securities lending activities (i.e., the dollar amount in
paragraph (1) minus the dollar amount in paragraph (3)).
If a fee for a service is included in the revenue split, state that the fee
is included in the revenue split.
N/A
(b) If the registrant is a closed-end management investment company, describe
the services provided to the registrant by the securities lending agent in
the registrants most recent fiscal year.
N/A
ITEM 13. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust VII
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date January 11, 2019
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 January 11, 2019
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date January 11, 2019
* Print the name and title of each signing officer under his or her signature.