OMB APPROVAL
OMB Number: 3235-0570
Expires: November 30, 2005
Estimated average burden
hours per response..... 5.0
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-10455
Pioneer Global High Yield Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2002 through October 31, 2003
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
PIONEER
-----------------------
GLOBAL
HIGH YIELD
FUND
Annual
Report
10/31/03
[LOGO]
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 4
Schedule of Investments 7
Financial Statements 12
Notes to Financial Statements 16
Report of Independent Auditors 21
The Pioneer Family of Funds 22
Trustees, Officers and Service Providers 23
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
LETTER TO SHAREOWNERS 10/31/03
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
The stock market rally that began last spring extended into late summer as signs
of an economic recovery accumulated. Gross domestic product, a tally of all
goods and services produced in the United States, expanded, thanks to increased
personal consumption, housing and business spending, low short-term interest
rates and lower taxes on individuals. While broader market indicators managed
small gains, the NASDAQ Composite rose sharply in the third quarter as investors
sensed that companies might soon boost technology outlays. September's dip in
consumer expectations linked to slow job creation, plus cutbacks in OPEC oil
production, drove markets off their highest levels. Investors also kept an eye
on the news, as U.S. troops came under daily fire in Iraq and tensions elsewhere
remained.
As the economy appeared to strengthen, investors who had sought safety in U.S.
Treasury issues grew less risk-averse. As a result, corporate bonds moved
broadly higher and the Treasury bond rally stalled. Some of the biggest gains
were recorded among lowerrated, high-yield bonds whose issuers often depend on a
strong economy to boost earnings. Bonds in emerging and developed markets also
did well, as economies stabilized and currencies rose against the slumping U.S.
dollar.
Stocks and bonds, bonds and stocks
Over the past few years, investor sentiment has swung from stocks to bonds and
back again, from U.S. government securities to corporate and international
issues. Each sector has spent time in the spotlight or backstage, delivering
periods of stronger or weaker performance relative to one another.
With sectors constantly moving in and out of favor, how can you increase your
chances of holding investments that are performing well? By owning several kinds
of securities, not just one or two. Through a process called asset allocation,
you can create an investment mix that reflects your needs, taking into account
such factors as your age, your financial goals and their timing, and, of course,
your comfort level where risk is concerned.
Asset allocation is only one area in which a qualified investment professional
can serve you well. Ask your advisor to review how shifting markets may have
affected your asset allocation recently. And if you've never thought about asset
allocation before, now is the best time to start.
Like everyone at Pioneer, I appreciate your continued confidence in our products
and services.
Respectfully,
/s/ Osbert Hood
Osbert Hood, President and Chief Executive Officer
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
[begin boxed text]
- -------------------------------
Pioneer's new president
Osbert Hood was recently named
Chief Executive Officer and
President of Pioneer
Investments U.S.A. Mr. Hood,
formerly Pioneer's Chief
Operating Officer and a key
member of the senior
management committee, joined
Pioneer in 2000 from John
Hancock Financial Services,
where he had held senior
financial positions. "I am
excited and honored to have
the opportunity to lead
Pioneer as it continues to
grow," Mr. Hood said. "As CEO
I look forward to furthering
Pioneer's strategic goals,
including developing new
products that can meet the
wider needs of investors and
the advisers who serve them."
- -------------------------------
[end boxed text]
1
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 10/31/03
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------
(As a percentage of total investment portfolio)
[the following data was represented as a pie chart in the printed material]
Corporate Bonds 76.5%
Foreign Government Bonds 14.1%
Convertible Corporate Bonds 7.4%
Municipal Bonds 2.0%
10 Largest Holdings
- --------------------------------------
(As a percentage of total investment portfolio)*
1. Freeport-McMoRan Copper & Gold, 10.125%, 2/1/10 3.33%
2. Kvaerner A.S., 0.0%, 10/30/11 3.26
3. Republic of Columbia, 9.75%, 4/9/11 3.22
4. LodgeNet Entertainment Corp., 9.5%, 6/15/13 3.15
5. BF Saul Real Estate Investment Trust, 9.75%, 4/1/08 2.99
6. Republic of Ecuador, 5.0%, 8/15/30 2.71
7. Xerox Corp., 8.0%, 2/1/27 2.64
8. Mobifon Holdings, 12.5%, 7/31/10 2.57
9. IESI Corp., 10.25%, 6/15/12 2.53
10. Vestel Electronics Finance, 11.5%, 5/14/07 (144A) 2.51
* This list excludes temporary cash and derivative investments. Fund holdings
will vary for other periods.
2
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 10/31/03 CLASS A SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 10/31/03 10/31/02
$11.31 $8.56
Net
Distributions per Share Investment Short-Term Long-Term
(11/1/02 - 10/31/03) Income Capital Gains Capital Gains
$1.000 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global High Yield Fund at public offering price,
compared to that of the Merrill Lynch (ML) Global High Yield & Emerging Markets
Plus Index.
Average Annual Total Returns
(As of October 31, 2003)
Net Asset Public Offering
Period Value Price*
Life-of-Class
(8/27/01) 16.87% 14.45%
1 Year 45.59 39.08
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period.
Value of $10,000 Investment+
[THE FOLLOWING WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Date Pioneer Global ML Global High Yield
High Yield Fund* & Emerging Markets Plus Index
8/31/2001 $9,550 $10,000
10/31/2001 $9,244 $9,591
10/31/2002 $9,272 $9,429
10/31/2003 $13,499 $13,385
The Fund's investment advisor, Pioneer Investment Management, Inc., reduced
its manage ment fee and subsidized other Fund expenses; otherwise, returns
would have been lower.
+ Index comparison begins on 8/31/01. The ML Global High Yield & Emerging
Markets Plus Index tracks the performance of the below- and border-line
investment-grade global debt markets denominated in the major developed
market currencies. The Index includes sovereign issuers rated BBB1 and lower
along with corporate issuers rated BB1 and lower. There are no restrictions
on issuer country of domicile. However, the bonds must be publicly issued in
a developed market (i.e., investment-grade country). Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot
invest directly in the Index.
Past performance does not guarantee future results. Returns and principal
value fluctuate and your shares, when redeemed, may be worth more or less
than their original cost.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
3
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 10/31/03
- --------------------------------------------------------------------------------
High-yield bond markets throughout the world rose during the 12 months ended
October 31, 2003, as investors grew more aggressive in the face of evidence that
economic growth was beginning to accelerate. The declining value of the U.S.
dollar on international currency markets also gave further support to bonds
denominated in foreign currencies. In the following discussion, Andrew D.
Feltus, a member of the team managing Pioneer Global High Yield Fund, provides
an update on the Fund, its investment strategies and the investment environment
during the 12-month period.
Q: How did the Fund perform?
A: The Fund performed exceptionally well. For the 12 months ended October 31,
2003, the Fund's Class A shares had a total return of 45.58%, at net asset
value. During the same period, the Merrill Lynch Global High Yield &
Emerging Markets Plus Index returned 34.69%, while the Merrill Lynch High
Yield Master II Index, a benchmark for the U.S. high-yield market, returned
33.10%. The Fund's 30-day SEC yield on October 31, 2003 was a competitive
7.39%.
Q: What factors were responsible for this performance?
A: It would not be too much of an overstatement to say that virtually all
high-yield markets gained during the period. In addition, our international
diversification helped substantially as the U.S. dollar declined in value
versus major foreign currencies. Our emphasis on the euro, Canadian dollar
and South African rand added to performance as those countries' currencies
gained in value versus the dollar by 17.06%, 18.08% and 45.09%,
respectively.
The fiscal year began with high-yield bonds, both U.S. and foreign, selling
at extremely depressed prices. Economic growth was sluggish at a time when
many U.S. companies were caught up in a series of corporate and accounting
scandals that threatened to undermine the prices of corporate stocks and
bonds. In addition, emerging markets were in the doldrums as investors
worried about both the world economy and uncertainties in individual
countries, most notably Brazil, which faced a presidential election. The
investment backdrop quickly turned favorable, however. A key event was the
decision of the U.S. Federal Reserve in early November 2002 to cut
short-term interest rates by an additional one-half of one percentage point.
That injected new liquidity into the market and encouraged investors to
shift funds into riskier sectors, such as equities, high yield and emerging
market sectors. At the same time, new data suggested that the economy was
gaining strength, improving the outlook for corporate profits and
encouraging investors to become less risk averse. This condition also caused
the U.S. dollar to weaken, helping the competitive positions of many
4
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
American manufacturers while at the same time increasing the potential
returns of foreign investments.
Q: What were your principal strategies during the period?
A: Encouraged by the Federal Reserve Board's interest-rate reductions and the
impending cuts in federal tax rates, we focused on companies in sectors that
benefit from cyclical recoveries. The companies included many commodity
producers and technology companies. In addition, we thought the U.S. dollar
would continue to be weak, and we overweighted foreign currency-denominated
bonds. While we slightly underweighted emerging-market debt, we tended to
concentrate our investments in some of the best-performing markets, such as
Russia and Brazil. In the latter, the newly elected president turned out to
be friendlier to business and debt holders than expected and he initiated a
series of reforms that stabilized the economy and encouraged investment.
Diversification is important in managing risk. During the period, the Fund's
approach was to invest a minimum of one-third of portfolio assets in the
United States and a minimum of one-third of assets in developed markets
outside the United States. We had no minimum in the emerging markets, where
we intended to invest opportunistically as we found compelling values. While
our process emphasized fundamental research of securities, we also were very
conscious of the macroeconomic and political factors that can influence the
performance of individual securities independently of the strength of a
company's underlying fundamentals.
Throughout the year, we continued to take advantage of price gains in some
securities by selling them and reaping profits, redeploying assets into
other securities that we believed offered superior relative value.
Q: What were some of the investments that helped performance?
A: Kinross Gold, a Canadian operator of gold mines, was a good example of a
high-yield investment in a company positioned to benefit from both rising
commodity prices and the declining value of the U.S. dollar. The value of
the bonds of the company gained 28.6% in local currency, even before adding
the effects of the appreciating Canadian dollar. Freeport-McMoRan, a
U.S.-based company with extensive copper and gold mining operations in
Indonesia, also made a major contribution to performance. Another U.S.
company that added to the Fund's return was Xerox, whose bonds rose
materially after it successfully put some corporate-governance and
balance-sheet issues behind it and began to increase earnings.
5
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 10/31/03 (continued)
- --------------------------------------------------------------------------------
Emerging market bonds did well. In Brazil, our investment in AmBev, a major
beer brewer, turned in particularly strong performance. Mobile Telesystems,
a Russian wireless communications service provider was another significant
contributor, as was Vitro, a Mexican gas producer.
Q: In a good year, did you have any disappointments?
A: Yes. While performance was generally aided by our commodity holdings, our
investment in the U.S. paper company Fibermark hurt the Fund's
performance. The paper industry did not do as well as other commodity
industries and Fibermark ran into its own operational problems. As a
result, the bond price declined. In general, our emerging markets holdings
performed well. There were exceptions, however. Our investment in
sovereign bonds of the Dominican Republic detracted from performance as
the securities were pulled down because of a national banking crisis.
Q: What is your investment outlook?
A: We think the outlook for high-yield bonds continues to be favorable, but we
also believe investors should have realistic expectations for performance.
The returns of the past year came as bonds bounced back from the bottom of
the market. Such returns are unlikely to be sustained.
That being said, we think the environment for high-yield investments
continues to be good. The U.S. Federal Reserve has sent out strong signals
that it intends to keep short-term rates low, and the economy appears to be
gaining strength. This factor should help corporations increase their
earnings and support the performance of high-yield corporate bonds. At the
same time, we anticipate that the U.S. dollar will continue to be weak,
although it probably will not decline as much as it did during the last
year. Foreign-currency-denominated bonds should offer good opportunities. In
particular, we believe the European high-yield market is less efficient than
other markets because it is relatively young and less liquid. As a result of
that inefficiency, we have been finding very attractive European bonds that
we believe are undervalued relative to comparable U.S. securities.
We expect to continue to keep the Fund well diversified, seeking
opportunities in the United States, Europe and the emerging markets.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
6
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/03
- --------------------------------------------------------------------------------
Principal
Amount Value
CONVERTIBLE CORPORATE BONDS - 7.5%
Consumer Durables & Apparel - 1.7%
Leisure Products - 1.7%
$ 15,000 Aristocrat Leisure, Ltd., 5.0%, 5/31/06 $ 14,025
--------
Total Consumer Durables & Apparel $ 14,025
--------
Pharmaceuticals & Biotechnology - 3.1%
Biotechnology - 3.1%
10,000 Cubist Pharmaceuticals, 5.5%, 11/1/08 $ 8,575
10,000 Human Genome, 3.75%, 3/15/07 8,850
10,000 Vertex Pharmaceuticals, Inc., 5.0%, 9/19/07 8,850
--------
Total Pharmaceuticals & Biotechnology $ 26,275
--------
Semiconductors - 1.1%
10,000 Triquint Semiconductor, 4.0%, 3/1/07 $ 9,125
--------
Total Semiconductors $ 9,125
--------
Telecommunication Services - 1.6%
Integrated Telecommunication Services - 1.6%
22,000 Colt Telecom Group, 2.0%, 8/6/05 $ 13,716
--------
Total Telecommunication Services $ 13,716
--------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $53,738) $ 63,141
--------
CORPORATE BONDS - 77.4%
Energy - 3.6%
Oil & Gas Drilling - 1.8%
15,000 Parker Drilling Corp., 9.675%, 10/1/23 (144A) $ 15,413
--------
Oil & Gas Exploration & Production - 1.8%
15,000 Energy Partners Ltd., 8.75%, 8/1/10 (144A) $ 15,450
--------
Total Energy $ 30,863
--------
Materials - 15.7%
Commodity Chemicals - 1.6%
15,000 Arco Chemical Co., 9.8%, 2/1/20 $ 13,425
--------
Construction Materials - 3.3%
350,000 Kvaerner A.S., 0.0%, 10/30/11(a) $ 27,907
--------
Diversified Chemicals - 2.4%
20,000 Huntsman ICI Chemicals LLC, 10.125%, 7/1/09 $ 20,190
--------
Diversified Metals & Mining - 3.3%
25,000 Freeport-McMoRan Copper & Gold, 10.125%, 2/1/10 $ 28,500
--------
Metal & Glass Containers - 1.5%
10,000 Crown Euro Holdings, 10.25%, 3/1/13 $ 12,764
--------
The accompanying notes are an integral part of these financial statements. 7
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/03 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
Paper Products - 1.9%
$ 10,000 Corp Durango SA de CV, 13.125%, 8/1/06(c) $ 6,000
15,000 Fibermark Inc., 10.75%, 4/15/11 9,900
--------
$ 15,900
--------
Specialty Chemicals - 1.7%
15,000 Rhodia SA, 9.25%, 6/1/11 $ 14,664
--------
Total Materials $133,350
--------
Capital Goods - 2.5%
Construction, Farm Machinery & Heavy Trucks - 2.5%
20,000 Hines Nurseries Inc., 10.25%, 10/1/11 (144A) $ 21,400
--------
Total Capital Goods $ 21,400
--------
Commercial Services & Supplies - 2.6%
Environmental Services - 2.6%
20,000 IESI Corp., 10.25%, 6/15/12 $ 21,650
--------
Total Commercial Services & Supplies $ 21,650
--------
Transportation - 3.1%
Air Freight & Couriers - 0.9%
9,000 Evergreen International Aviation, 12.0%, 5/15/10 (144A) $ 7,920
--------
Airlines - 2.2%
25,000 AMR Corp., 9.8%, 10/1/21 $ 18,687
--------
Total Transportation $ 26,607
--------
Consumer Durables & Apparel - 1.9%
Photographic Products - 1.9%
15,000 American Color Graphic, 10.0%, 6/15/10 (144A) $ 16,087
--------
Total Consumer Durables & Apparel $ 16,087
--------
Hotels, Restaurants & Leisure - 5.0%
Casinos & Gaming - 5.0%
15,000 Majestic Star Casino LLC, 9.5%, 10/15/10 (144A) $ 15,525
15,000 Pinnacle Entertainment, Inc., 8.75%, 10/1/13 15,000
10,000 Wynn Las Vegas LLC Corp., 12.0%, 11/1/10 11,625
--------
$ 42,150
--------
Total Hotels, Restaurants & Leisure $ 42,150
--------
Media - 3.2%
Movies & Entertainment - 3.2%
25,000 LodgeNet Entertainment Corp., 9.5%, 6/15/13 $ 27,000
--------
Total Media $ 27,000
--------
8 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
Retailing - 3.8%
Catalog Retail - 1.7%
$ 15,000 Vicap SA, 11.375%, 5/15/07 $ 14,550
--------
Department Stores - 2.1%
17,000 J.C. Penney, Co., 8.25%, 8/15/22 $ 17,510
--------
Total Retailing $ 32,060
--------
Food, Beverage & Tobacco - 2.4%
Brewers - 2.4%
20,000 CIA Brasileira de Bebidas, 8.75%, 9/15/13 (144A) $ 20,700
--------
Total Food, Beverage & Tobacco $ 20,700
--------
Health Care Equipment & Supplies - 6.3%
Health Care Facilities - 1.9%
15,000 Ardent Health Systems, 10.0%, 8/15/13 (144A) $ 16,050
--------
Health Care Services - 4.4%
20,000 National Nephrology Associates, Inc., 9.0%, 11/1/11 (144A) $ 20,650
15,000 NDC Health Corp., 10.5%, 12/1/12 16,725
--------
$ 37,375
--------
Total Health Care Equipment & Supplies $ 53,425
--------
Diversified Financials - 5.2%
Multi-Sector Holding - 1.8%
286,977 Sydsvenska Kemi, 0.0%, 6/9/11 $ 15,653
--------
Diversified Financial Services - 3.4%
10,000 MDP Acquisitions Plc., 10.125%, 10/1/12 (144A) $ 12,706
15,000 Sheridan Acquisition Group Corp., 10.25%, 8/15/11 15,675
--------
$ 28,381
--------
Total Diversified Financials $ 44,034
--------
Real Estate - 4.3%
Real Estate Investment Trusts - 4.3%
25,000 BF Saul Real Estate Investment Trust, 9.75%, 4/1/08 $ 25,625
10,000 Meristar Hospitality Operation Finance Corp.,
10.5%, 6/15/09 10,850
--------
$ 36,475
--------
Total Real Estate $ 36,475
--------
Technology Hardware & Development - 5.2%
Electronic Equipment & Instruments - 2.5%
20,000 Vestel Electronics Finance, 11.5%, 5/14/07 (144A) $ 21,500
--------
The accompanying notes are an integral part of these financial statements. 9
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 10/31/03 (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
Office Electronics - 2.7%
$ 25,000 Xerox Corp., 8.0%, 2/1/27 $ 22,625
--------
Total Technology Hardware & Development $ 44,125
--------
Telecommunication Services - 10.7%
Integrated Telecommunication Services - 3.6%
10,000 Innova S De R.L., 9.375%, 9/19/13 (144A) $ 10,075
20,000 TSI Telecommunication Services, 12.75%, 2/1/09 20,600
--------
$ 30,675
--------
Wireless Telecommunication Services - 7.1%
15,000 MetroPCS, Inc., 10.75, 10/1/11 (144A) $ 14,850
20,000 Mobifon Holdings, 12.5%, 7/31/10 (144A) 22,050
15,000 Mobile Telesystems Finance, 8.375%, 10/14/10 (144A) 14,775
10,000 Rogers Cantel, Inc., 10.5%, 6/1/06 8,079
--------
$ 59,754
--------
Total Telecommunication Services $ 90,429
--------
Utilities - 1.9%
Electric Utilities - 1.9%
15,000 Pacific Gas and Electric Corp., 6.875%, 7/15/08 $ 15,900
--------
Total Utilities $ 15,900
--------
TOTAL CORPORATE BONDS
(Cost $611,971) $656,255
--------
FOREIGN GOVERNMENT BONDS - 14.2%
20,000,000 Banco nac de Desen Econo, 8.0%, 4/28/10 $ 10,436
25,000 Dominican Republic, 9.04%, 1/23/13 (144A) 19,250
20,000 Federal Republic of Brazil, 11.0%, 1/11/12 21,400
24,933 Republic of Columbia, 9.75%, 4/9/11 27,601
35,000 Republic of Ecuador, 5.0%, 8/15/30(d) 23,223
20,000 Russia Regs., 5.0%, 3/31/30(d) 18,670
--------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $106,106) $120,580
--------
MUNICIPAL BONDS - 2.0%
Government - 2.0%
10,000 Indianapolis Industry Airport Authority Revenue,
6.5%, 11/15/31(d) $ 3,475
15,000 New Jersey Economic Development Authority,
7.0%, 11/15/30 13,686
--------
TOTAL MUNICIPAL BONDS
(Cost $18,377) $ 17,161
--------
10 The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
TOTAL INVESTMENT IN SECURITIES - 101.1%
(Cost $790,192)(a)(b)(c)(d) $857,137
--------
OTHER ASSETS AND LIABILITIES - (1.1)% $ (9,157)
--------
TOTAL NET ASSETS - 100.0% $847,980
--------
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such secu- rities may be resold normally to qualified
institutional buyers in a transaction exempt from reg- istration. At
October 31, 2003, the value of these securities amounted to $264,401 or
31.2% of total net assets.
(a) At October 31, 2003, the net unrealized gain on investments based on cost
for federal income tax purposes of $790,192 was as follows:
Aggregate gross unrealized gain for all
investments in which there is an excess of
value over tax cost $ 89,505
Aggregate gross unrealized loss for all
investments in which there is an excess of
tax cost over value (22,560)
--------
Net unrealized gain $ 66,945
--------
(b) Distribution of investment by country of issue, as a percentage of total
investment in securities, is as follows:
United States 69.0%
Brazil 3.7
Mexico 3.6
Norway 3.2
Columbia 3.2
France 3.2
Ecuador 2.7
Russia 2.2
Sweden 1.8
Luxembourg 1.7
Australia 1.7
United Kingdom 1.6
Ireland 1.5
Canada 0.9
------
100.0%
------
(c) Security is in default and is non-income producing.
(d) Debt obligation initially issued at one coupon which converts to a higher
coupon at a specified date. The rate shown is the rate at period end.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2003 aggregated $965,766 and $965,363, respectively.
The accompanying notes are an integral part of these financial statements. 11
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 10/31/03
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (cost $790,192) $857,137
Receivables -
Investment securities sold 26,238
Interest and foreign taxes withheld 16,437
Due from Pioneer Investment Management, Inc. 15,902
Other 2,715
--------
Total assets $918,429
--------
LIABILITIES:
Foreign currency, at value (cost $12,669) $ 12,699
Payables -
Investment securities purchased 20,000
Dividends 5,408
Due to custodian 20,946
Due to affiliates 4,089
Accrued expenses 7,307
--------
Total liabilities $ 70,449
--------
NET ASSETS:
Paid-in capital $749,553
Accumulated undistributed net investment income 15,883
Accumulated net realized gain on investments and foreign
currency transactions 15,586
Net unrealized gain on investments 66,945
Net unrealized gain on investments and other assets and
liabilities denominated in foreign currencies 13
--------
Total net assets $847,980
--------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $847,980/75,000 shares) $ 11.31
--------
MAXIMUM OFFERING PRICE:
Class A ($11.31 [divided by] 95.50%) $ 11.84
--------
12 The accompanying notes are an integral part of these financial
statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 10/31/03
INVESTMENT INCOME:
Interest $79,994
Dividends 664
--------
Total investment income $ 80,658
--------
EXPENSES:
Management fees $ 5,373
Transfer agent fees 666
Distribution fees 1,919
Administrative fees 37,965
Custodian fees 11,556
Registration fees 6,447
Professional fees 30,175
Printing 2,207
Miscellaneous 6,607
Fees and expenses of nonaffiliated trustees 6,884
--------
Total expenses $109,799
Less management fees waived and expenses
assumed by Pioneer Investment Management, Inc. (104,043)
--------
Net expenses $ 5,756
--------
Net investment income $ 74,902
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain from:
Investments $54,746
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 292 $ 55,038
-------- --------
Change in net unrealized gain (loss) from:
Investments $151,178
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (72) 151,106
-------- --------
Net gain on investments and foreign currency transactions $206,144
--------
Net increase in net assets resulting from operations $281,046
--------
The accompanying notes are an integral part of these financial statements. 13
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 10/31/03 and 10/31/02, respectively
Year Year
Ended Ended
10/31/03 10/31/02
FROM OPERATIONS:
Net investment income $ 74,902 $ 76,155
Net realized gain (loss) on investments and foreign
currency transactions 55,038 (17,160)
Change in net unrealized gain (loss) on investments
and foreign currency transactions 151,106 (54,489)
--------- --------
Net increase in net assets resulting
from operations $ 281,046 $ 4,506
--------- --------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income ($1.00 and $1.02 per share,
respectively) $ (74,909) $(76,147)
--------- --------
Total distributions to shareowners $ (74,909) $(76,147)
--------- --------
Net increase (decrease) in net assets $ 206,137 $(71,641)
NET ASSETS:
Beginning of year 641,843 713,484
--------- --------
End of year (including accumulated undistributed net
investment income (distribution in excess) of
$15,883 and ($2,127), respectively) $ 847,980 $641,843
--------- --------
14 The accompanying notes are an integral part of these financial
statements.
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year 8/27/01
Ended Ended to
10/31/03 10/31/02 10/31/01
CLASS A
Net asset value, beginning of period $ 8.56 $ 9.51 $ 10.00
------- ------- ---------
Increase (decrease) from investment operations:
Net investment income $ 1.00 $ 1.02 $ 0.12
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 2.75 (0.95) (0.49)
------- ------- ---------
Net increase (decrease) from investment operations $ 3.75 $ 0.07 $ (0.37)
Distributions to shareowners:
Net investment income (1.00) (1.02) (0.12)
------- ------- ---------
Net increase (decrease) in net asset value $ 2.75 $ (0.95) $ (0.49)
------- ------- ---------
Net asset value, end of period $ 11.31 $ 8.56 $ 9.51
------- ------- ---------
Total return* 45.58% 0.31% (3.65)%
Ratio of net expenses to average net assets+ 0.75% 0.75% 0.75%**
Ratio of net investment income to average net assets+ 9.76% 10.79% 7.17%**
Portfolio turnover rate 124% 47% 89%**
Net assets, end of period (in thousands) $ 848 $ 642 $ 713
Ratios with no waiver of management fees and
assumption of expenses by PIM:
Net expenses 14.37% 18.70% 30.55%**
Net investment loss (3.68)% (7.16)% (22.63)%**
* 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.
** Annualized
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 15
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/03
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Global High Yield Fund (the Fund), is a Delaware statutory trust,
registered under the Investment Company Act of 1940 as a non-diversified,
open-end management investment company. The Fund was organized on May 5, 2001
and commenced operations on August 27, 2001. Prior to August 27, 2001 the Fund
had no operations other than those relating to organizational matters and the
initial capitalization of the Fund by Pioneer Funds Distributor, Inc. (PFD). To
date, no shares have been offered to the public. The Fund shares outstanding at
October 31, 2003 are owned by PFD. The investment objective of the Fund is to
maximize total return through a combination of income and capital appreciation.
The Fund's financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America that require the
management of the Fund to, among other things, make estimates and assumptions
that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of income, expenses and gain or loss on investments during
the reporting periods. Actual results could differ from those estimates. The
following is a summary of significant accounting policies consistently followed
by the Fund, which are in conformity with those generally accepted in the
investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Securities are valued
at prices supplied by independent pricing services, which consider such
factors as Treasury spreads, yields, maturities and rating. Valuations may
be supplemented by dealers and other sources, as required. Securities for
which market quotations are not readily available are valued at their fair
values as determined by, or under the direction of the Board of Trustees and
may include yield equivalents or a pricing matrix. Market discounts and
premiums are accreted or amortized daily; respectively maturity basis and
are included in interest income on a yield-to-maturity basis with a
corresponding increase in the cost basis of the security. Interest income,
including interest on income bearing cash accounts, is recorded on the
accrual basis, net of unrecoverable foreign taxes
16
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
withheld at the applicable country rates. Temporary cash investments are
valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
The Fund invests in below investment grade (high yield) debt securities and
preferred stocks. These high yield securities may be convertible into equity
securities of the issuer. Debt securities rated below investment grade are
commonly referred to as "junk bonds" and are considered speculative. These
securities involve greater risk of loss, are subject to greater price
volatility, and are less liquid, especially during periods of economic
uncertainty or change, than higher rated debt securities. The Fund is not
diversified, which means that it can invest a higher percentage of its
assets in any one issuer than a diversified fund. Being non-diversified may
magnify the Fund's losses from adverse events affecting a particular issuer.
The Fund's investments in foreign markets or countries with limited
developing markets may subject the Fund to a greater degree of risk than in
a developed market. These risks include disruptive political or economic
conditions and the possible imposition of adverse governmental laws or
currency exchange restrictions.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollars actually received. Further,
the effects of changes in foreign currency exchange rates on investments are
not segregated in the statement of operations from the effects of changes in
market price of those securities but are included with the net realized and
unrealized gain or loss on investments.
17
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/03 (continued)
- --------------------------------------------------------------------------------
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a future
date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Fund's
financial statements. The Fund records realized gains and losses at the time
a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the
terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar. At October 31, 2003, the
Fund had no outstanding portfolio or settlement hedges.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
The characterization of distributions to shareowners for financial reporting
purposes is determined in accordance with federal income tax rules.
Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/
tax differences that may exist.
The tax character of distributions paid during the years ended October 31,
2003 and 2002 were as follows:
- --------------------------------------------------------------------------------
2003 2002
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $74,909 $76,147
Long-term capital gain -
Return of capital - -
------- -------
Total $74,909 $76,147
- --------------------------------------------------------------------------------
18
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The following shows components of distributable earnings on a federal income
tax basis at October 31, 2003.
- --------------------------------------------------------------------------------
2003
- --------------------------------------------------------------------------------
Undistributed ordinary income $ 23,548
Undistributed long-term gain 15,586
Unrealized appreciation 66,958
--------
Total $106,092
- --------------------------------------------------------------------------------
At October 31, 2003, The Fund reclassified $18,017 to reduce accumulated
net realized gain on investments and $18,017 to decrease accumulated
distributions in excess of net investment income. This reclassification has
no impact on the net assets of the Fund and presents the Fund's capital
accounts on a tax basis.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. PFD,
the principal underwriter for the Fund and a wholly owned indirect
subsidiary of UniCredito Italiano S.p.A. (UniCredito Italiano), earned no
underwriting commissions on the sale of Fund shares during the year ended
October 31, 2003.
F. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
dividends on the securities loaned. Gain or loss on the fair value of the
loaned securities that may occur during the term of the loan will be for
account of the Fund. The loans are secured by collateral of at least 102%,
at all times, of the fair value of the loaned securities. The amount of the
collateral will be adjusted daily to reflect any price fluctuation in the
value of the loaned securities. The Fund has the right under the lending
agreements to recover the securities on loan from the borrower on demand.
The Fund invests cash collateral in the Securities Lending
19
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/03 (continued)
- --------------------------------------------------------------------------------
Investment Fund, which is managed by Brown Brothers Harriman & Co., the
Fund's custodian.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), the Fund's investment adviser,
manages the Fund's portfolio and is a wholly owned indirect subsidiary of
UniCredito Italiano. Management fees are calculated daily at the annual rate of
0.70% of the Fund's average daily net assets up to $500 million; 0.65% of the
next $500 million; and 0.60% on the assets over $1 billion.
PIM has agreed not to impose all or portion of its management fee and to assume
other operating expenses of the Fund to the extent necessary to limit expenses
to 0.75% of the Fund's average daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At October 31, 2003, $3,109 was payable to PIM
related to management fees, administrative fees and certain other services, and
is included in due to affiliates.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly owned
indirect subsidiary of UniCredito Italiano, provides substantially all transfer
agent and shareowner services to the Fund at negotiated rates. Included in due
to affiliates is $795 in transfer agent fees payable to PIMSS at October 31,
2003.
4. Distribution Plans
The Fund adopted a plan of distribution for Class A shares in accordance with
Rule 12b-1 under the Investment Company Act of 1940. Pursuant to the Class A
Plan, the Fund pays PFD a service fee of up to 0.25% of the average daily net
assets attributable to Class A shares in reimbursement of its actual
expenditures to finance activities primarily intended to result in the sale of
Class A shares. Included in due to affiliates is $185 in distribution fees
payable to PFD at October 31, 2003.
5. Subsequent Event
The Fund commenced offering Class A, Class B and Class C shares to the general
public on December 1, 2003.
20
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer Global High Yield Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Global High Yield Fund (the "Fund") as
of October 31, 2003, and the related statement of operations for the year then
ended, and the statements of changes in net assets and the financial highlights
for each of the two years in the period then ended. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for the
period ended October 31, 2001 were audited by other auditors who have ceased
operations and whose report, dated December 7, 2001, expressed an unqualified
opinion on those financial highlights.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities as of October 31, 2003, by correspondence with the
custodian and brokers or by other appropriate auditing procedures where replies
from brokers were not received. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global High Yield Fund at October 31, 2003, the results of its
operations for the year then ended, and the changes in its net assets and the
financial highlights for each of the two years in the period then ended in
conformity with accounting principles generally accepted in the United States.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 12, 2003
21
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
For information about any Pioneer mutual fund, please contact your investment
professional, or call Pioneer at 1-800-225-6292. Ask for a free fund information
kit, which includes a fund prospectus. Please read the prospectus carefully
before you invest.
U.S. Equity
Pioneer Fund
Pioneer Balanced Fund
Pioneer Core Equity Fund
Pioneer Equity Income Fund
Pioneer Growth Shares
Pioneer Mid Cap Growth Fund
Pioneer Mid Cap Value Fund
Pioneer Real Estate Shares
Pioneer Small Cap Value Fund
Pioneer Small Company Fund
Pioneer Value Fund
International/Global Equity
Pioneer Emerging Markets Fund
Pioneer Europe Select Fund
Pioneer Europe Fund
Pioneer International Equity Fund
Pioneer International Value Fund
Fixed Income
Pioneer America Income Trust
Pioneer Bond Fund
Pioneer High Yield Fund
Pioneer Stable Value Fund
Pioneer Strategic Income Fund
Pioneer Tax Free Income Fund
Money Market
Pioneer Cash Reserves Fund*
* An investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund.
22
Pioneer Global High Yield Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Auditors
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's affairs.
The officers of the Fund are responsible for the Fund's operations. The Fund's
Trustees and officers are listed below, together with their principal
occupations during the past five years. Trustees who are interested persons of
the Fund within the meaning of the Investment Company Act of 1940 are referred
to as Interested Trustees. Trustees who are not interested persons of the Fund
are referred to as Independent Trustees. Each of the Trustees serves as a
trustee of each of the 50 U.S. registered investment portfolios for which
Pioneer Investment Management, Inc. ("Pioneer") serves as investment adviser
(the "Pioneer Funds"). The address for all Interested Trustees and all officers
of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Fund's statement of additional information provides more detailed
information regarding the Fund's Trustees and is available upon request, without
charge, by calling 1-800-225-6292.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). This information
is also available at pioneerfunds.com.
23
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Name and Age Positions Held With the Fund Term of Office and Length of Service
John F. Cogan, Jr. (77)* Chairman of the Board, Since 2001.
Trustee and President Serves until a successor
trustee is elected or earlier
retirement or removal.
*Mr. Cogan is an Interested Trustee because he is an officer or director of
Pioneer and certain of its affiliates.
=========================================================================================================
Osbert M. Hood (51)** Trustee and Since June, 2003
Executive Vice President Serves until a successor
trustee is elected or earlier
retirement or removal.
=========================================================================================================
**Mr. Hood is an Interested Trustee because he is an officer or director of
Pioneer and certain of its affiliates.
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Address Positions Held With the Fund Term of Office and Length of Service
Mary K. Bush (55) Trustee Since 2001.
3509 Woodbine Street, Serves until a successor trustee is
Chevy Chase, MD 20815 elected or earlier retirement or removal.
=========================================================================================================
Richard H. Egdahl, M.D. (77) Trustee Since 2001.
Boston University Healthcare Serves until a successor trustee is
Entrepreneurship Program, elected or earlier retirement or removal.
53 Bay State Road,
Boston, MA 02215
=========================================================================================================
24
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this Trustee
Deputy Chairman and a Director of Pioneer Global Asset Director of Harbor Global Company,
Management S.p.A. ("PGAM"); Non-Executive Chairman Ltd.
and a Director of Pioneer Investment Management USA
Inc. ("PIM-USA"); Chairman and a Director of Pioneer;
Director of Pioneer Alternative Investment Management
Limited (Dublin); President and a Director of Pioneer
Alternative Investment Management (Bermuda) Limited and
affiliated funds; President and Director of Pioneer
Funds Distributor, Inc. ("PFD"); President of all of
the Pioneer Funds; and Of Counsel (since 2000, partner
prior to 2000), Hale and Dorr LLP (counsel to PIM-USA
and the Pioneer Funds)
=====================================================================================================
President and Chief Executive Officer, PIM-USA since None
May, 2003 (Director since January, 2001); President
and Director of Pioneer since May, 2003; Chairman
and Director of Pioneer Investment Management
Shareholder Services, Inc. ("PIMSS") since May, 2003;
Executive Vice President of all of the Pioneer Funds
since June, 2003; Executive Vice President and Chief
Operating Officer of PIM-USA, November 2000 to May
2003; Executive Vice President, Chief Financial Officer
and Treasurer, John Hancock Advisers, L.L.C., Boston,
MA, November 1999 to November 2000; Senior Vice
President and Chief Financial Officer, John Hancock
Advisers, L.L.C., April 1997 to November 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this Trustee
President, Bush International (international financial Director of Brady Corporation
advisory firm) (industrial identification and
specialty coated material products
manufacturer), Millennium Chemicals,
Inc. (commodity chemicals), Mortgage
Guaranty Insurance Corporation, and
R.J. Reynolds Tobacco Holdings, Inc.
(tobacco)
=====================================================================================================
Alexander Graham Bell Professor of Health Care None
Entrepreneurship, Boston University; Professor
of Management, Boston University School of
Management; Professor of Public Health, Boston
University School of Public Health; Professor of
Surgery, Boston University School of Medicine; and
University Professor, Boston University
=====================================================================================================
25
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Address Positions Held With the Fund Term of Office and Length of Service
Margaret B.W. Graham (56) Trustee Since 2001.
1001 Sherbrooke Street West, Serves until a successor trustee is
Montreal, Quebec, Canada elected or earlier retirement or removal.
H3A 1G5
========================================================================================================
Marguerite A. Piret (55) Trustee Since 2001.
One Boston Place, 28th Floor, Serves until a successor trustee is
Boston, MA 02108 elected or earlier retirement or removal.
========================================================================================================
Stephen K. West (75) Trustee Since 2001.
125 Broad Street, Serves until a successor trustee is
New York, NY 10004 elected or earlier retirement or removal.
========================================================================================================
John Winthrop (67) Trustee Since 2001.
One North Adgers Wharf, Serves until a successor trustee is
Charleston, SC elected or earlier retirement or removal.
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Name and Age Positions Held With the Fund Term of Office and Length of Service
Dorothy E. Bourassa (55) Secretary Serves at the discretion of board.
=========================================================================================================
Christopher J. Kelley (39) Assistant Secretary Serves at the discretion of board.
=========================================================================================================
David C. Phelan (46) Assistant Secretary Serves at the discretion of board.
=========================================================================================================
Vincent Nave (58) Treasurer Serves at the discretion of board.
=========================================================================================================
Luis I. Presutti (38) Assistant Treasurer Serves at the discretion of board.
=========================================================================================================
26
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this
Trustee
Founding Director, The Winthrop Group, Inc. (consulting None
firm); Professor of Management, Faculty of Management,
McGill University
=========================================================================================================
President and Chief Executive Officer, Newbury, Piret & None
Company, Inc. (investment banking firm)
=========================================================================================================
Senior Counsel, Sullivan & Cromwell (law firm) Director, The Swiss Helvetia Fund,
Inc. (closed-end
investment company)
and AMVESCAP PLC
(investment
managers)
=========================================================================================================
President, John Winthrop & Co., Inc. None
(private investment firm)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this
Officer
Secretary of PIM-USA: Senior Vice President-Legal of None
Pioneer; and Secretary/Clerk of most of PIM-USA's
subsidiaries since October 2000; Secretary of all of the
Pioneer Funds since September 2003 (Assistant
Secretary from November 2000 to September 2003);
and Senior Counsel, Assistant Vice President and Director
of Compliance of PIM-USA from April 1998 through
October 2000
=====================================================================================================
Assistant Vice President and Senior Counsel of Pioneer None
since July 2002; Vice President and Senior Counsel of
BISYS Fund Services, Inc. (April 2001 to June 2002);
Senior Vice President and Deputy General Counsel of
Funds Distributor, Inc. (July 2000 to April 2001; Vice
President and Associate General Counsel from July 1996
to July 2000); Assistant Secretary of all of the Pioneer
Funds since September 2003
=====================================================================================================
Partner, Hale and Dorr LLP; Assistant Secretary of all of None
Pioneer Funds since September 2003
=====================================================================================================
Vice President-Fund Accounting, Administration and None
Custody Services of Pioneer (Manager from September
1996 to February 1999); and Treasurer of all of the
Pioneer Funds (Assistant Treasurer from June 1999 to
November 2000)
=====================================================================================================
Assistant Vice President-Fund Accounting, Administration None
and Custody Services of Pioneer (Fund Accounting Manager
from 1994 to 1999); and Assistant Treasurer of all of the
Pioneer Funds since November 2000
=====================================================================================================
27
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Name and Age Positions Held With the Fund Term of Office and Length of Service
Gary Sullivan (45) Assistant Treasurer Serves at the discretion of board.
=====================================================================================================
Katherine Kim Sullivan (30) Assistant Treasurer Serves at the discretion of board.
=====================================================================================================
28
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Other Directorships Held by this
Principal Occupation During Past Five Years Officer
Fund Accounting Manager-Fund Accounting, Administration None
and Custody Services of Pioneer; and Assistant Treasurer
of all of the Pioneer Funds since May 2002
=====================================================================================================
Fund Administration Manager-Fund Accounting, None
Administration and Custody Services since June 2003;
Assistant Vice President-Mutual Fund Operations of
State Street Corporation from June 2002 to June 2003
(formerly Deutsche Bank Asset Management); Pioneer
Fund Accounting, Administration and Custody Services
(Fund Accounting Manager from August 1999 to May 2002,
Fund Accounting Supervisor from 1997 to July 1999);
Assistant Treasurer of all of the Pioneer Funds since
September 2003
=====================================================================================================
29
HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvest.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
[LOGO]
Pioneer Investment Management, Inc.
60 State Street
Boston, Massachusetts 02109
www.pioneerfunds.com
14633-00-1203
(C) 2003 Pioneer Funds Distributor, Inc.
Underwriter of Pioneer mutual funds, Member SIPC
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
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.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
Not applicable; to be answered on annual submissions after December 15, 2003.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation of
these controls and procedures as of a date within 90 days prior to the filing
date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
Filed herewith.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Global High Yield Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date December XX, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date December XX, 2003
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date December XX, 2003
* Print the name and title of each signing officer under his or her signature.