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, 2019
Date of reporting period: November 1, 2018 through October 31, 2019
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Global Multisector
Income Fund
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Annual Report | October 31, 2019
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Ticker Symbols:
Class A PGABX
Class C PGCBX
Class Y PGYBX
Beginning in April 2021, as permitted by regulations adopted by the Securities
and Exchange Commission, paper copies of the Fund's shareholder reports like
this one will no longer be sent by mail, unless you specifically request paper
copies of the reports from the Fund or from your financial intermediary, such
as a broker-dealer, bank or insurance company. Instead, the reports will be
made available on the Fund's website, and you will be notified by mail each
time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. You may elect
to receive shareholder reports and other communications electronically by
contacting your financial intermediary or, if you invest directly with the
Fund, by calling 1-800-225-6292.
You may elect to receive all future reports in paper free of charge. If you
invest directly with the Fund, you can inform the Fund that you wish to
continue receiving paper copies of your shareholder reports by calling
1-800-225-6292. If you invest through a financial intermediary, you can contact
your financial intermediary to request that you continue to receive paper
copies of your shareholder reports. Your election to receive reports in paper
will apply to all funds held in your account if you invest through your
financial intermediary or all funds held within the Pioneer Fund complex if you
invest directly.
[LOGO] Amundi Pioneer
================
ASSET MANAGEMENT
visit us: www.amundipioneer.com/us
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 40
Notes to Financial Statements 47
Report of Independent Registered Public Accounting Firm 65
Additional Information 67
Approval of Investment Management Agreement 68
Trustees, Officers and Service Providers 73
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 1
President's Letter
Since 1928, active portfolio management based on in-depth, fundamental
research, has been the foundation of Amundi Pioneer's investment approach. We
believe an active management investment strategy is a prudent approach to
investing, especially during periods of market volatility, which can result
from any number of risk factors, including slow U.S. economic growth, rising
interest rates, and geopolitical factors. Of course, in today's global economy,
risk factors extend well beyond U.S. borders. In fact, it's not unusual for
political and economic issues on the international front to cause or contribute
to volatility in U.S. markets.
At Amundi Pioneer, each security under consideration is researched by our team
of experienced investment professionals, who communicate directly with the
management teams of those companies. At the end of this research process, if we
have conviction in a company's business model and management team, and regard
the security as a potentially solid investment opportunity, an Amundi Pioneer
portfolio manager makes an active decision to invest in that security. The
portfolio resulting from these decisions represents an expression of his or her
convictions, and strives to balance overall risk and return opportunity.
As an example, the Standard & Poor's 500 Index -- the predominant benchmark for
many U.S. Large-Cap Core Equity funds -- has 500 stocks. An Amundi Pioneer
portfolio manager chooses to invest in only those companies that he or she
believes can offer the most attractive opportunities to pursue the fund's
investment objective, thus potentially benefiting the fund's shareowners. This
process results in a portfolio that does not own all 500 stocks, but a much
narrower universe.
The same active decision to invest in a company is also applied when we decide
to sell a security, due to changing fundamentals, valuation concerns, or market
risks. We apply this active decision-making across all of our equity,
fixed-income, and global portfolios.
Today, as investors, we have many options. It is our view that active
management can serve shareholders well, not only when markets are thriving, but
also during periods of market volatility and uncertainty, thus making it a
compelling investment choice. As you consider the many choices today, 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.
2 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
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, 2019
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 | 10/31/19 3
Portfolio Management Discussion | 10/31/19
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, 2019. Mr.
Feltus, CFA, 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, U.S., a senior vice president, and a
portfolio manager at Amundi Pioneer, and Mr. 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,
2019?
A Pioneer Global Multisector Income Fund's Class A shares returned 5.89% at
net asset value during the 12-month period ended October 31, 2019, while
the Fund's benchmark, the Bloomberg Barclays Global Aggregate Bond Index
(the Bloomberg Barclays Index), returned 9.54%. During the same period,
the average return of the 216 mutual funds in Morningstar's World Bond
Funds category was 7.72%.
Q How would you describe the investment environment for fixed-income
securities during the 12-month period ended October 31, 2019?
A Global fixed-income markets delivered robust gains over the 12-month
period, as a number of factors combined to fuel a broad-based rally in
both interest-rate and credit-sensitive investments. The favorable
backdrop stemmed, in part, from a persistent slowdown in global economic
growth that gave central banks latitude to adopt easier monetary policies.
In the United States, the U.S. Federal Reserve (Fed), after raising rates
several times in 2018, adopted a more accommodative stance in early 2019
while signaling that it had finished its tightening cycle, at least for
the time being. The Fed eventually enacted three quarter-point rate cuts
between August and October, bringing its benchmark federal funds rate down
to a range of 1.50% of 1.75%. Many global central banks also adopted
accommodative approaches, highlighted by the European Central Bank's (ECB)
pledge to restart its quantitative easing policy. Those developments
contributed to a decline in the 10-year U.S. Treasury yield, from 3.15% at
the start of the 12-month period to 1.69% on October 31, 2019.
4 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
Credit-sensitive segments of the fixed-income market produced strong
returns during the 12-month period, with investment-grade corporates and
emerging markets debt generating double-digit gains. High-yield bonds,
while not keeping pace with the rest of the market, nonetheless posted a
return in the high single digits. The credit-sensitive sectors benefited
from the combination of positive economic growth, healthy corporate
earnings, and elevated investor demand for higher-yielding debt. Given
that a large swath of developed market government bonds offered negative
yields during the 12-month period, investors gravitated to market segments
featuring above-average income potential.
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, 2019?
A Our decisions with respect to the portfolio's currency positioning played
the largest role in the Fund's underperformance of the benchmark Bloomberg
Barclays Index during the 12-month period. At the beginning of the fiscal
year, we had positioned the Fund for a weaker U.S. dollar (USD), with
allocations to the euro, Swedish krona, and Norwegian krone, among other
currencies. The basis for the strategy was our view that economic growth
in the world economy would begin to converge with that of the United
States; but, in fact, the opposite occurred, which served to widen the gap
between U.S. and European interest rates. That led to persistent strength
in the USD, and so the long portfolio positions in certain emerging
markets currencies further pressured the Fund's benchmark-relative
returns.
The Fund's duration positioning also detracted from benchmark-relative
performance over the 12-month period. We maintained a shorter-duration
stance in the portfolio versus the benchmark in both the United States and
Europe, and during a 12-month period that saw yields fall significantly
and bond prices rise, the positioning prevented the Fund from gaining the
full benefit of the rally in the fixed-income markets. (Duration is a
measure of the sensitivity of the price, or the value of principal, of a
fixed-income investment to a change in interest rates, expressed as a
number of years.)
Our asset allocation decisions had a slightly negative effect on the
Fund's benchmark-relative results as well. A position in Treasury
Inflation-Protected Securities (TIPS) weighed on relative returns during
the 12-month period, as inflation remained at subdued levels. An
allocation to insurance-linked securities (ILS), which are debt
instruments sponsored by property-and-casualty insurers to help mitigate
the risk of having to pay claims in the wake of natural disasters, also
detracted from the Fund's relative performance. We liked the ILS category
in part due to the asset class's low correlation with the broader market.
Unfortunately, that feature
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 5
proved to be a negative performance factor during a period that saw strong
returns in the major fixed-income categories. We significantly reduced the
Fund's weighting in ILS as the period progressed, as we felt there were
better opportunities in other areas of the market.
On the positive side, security selection results were a net contributor to
the Fund's benchmark-relative performance over the 12-month period. The
Fund generated the best selection results in the emerging markets, with
holdings in Ukraine and in supranational issues both making meaningful
contributions to relative performance. The Europe/Middle East/Africa
segment of the market was also a source of positive returns for the Fund,
highlighted by positions in Egypt, Bahrain, Turkey, Senegal, and Kenya. A
position in Argentina partially offset those contributions, however, as an
unexpected result in that country's August presidential primary weighed
heavily on its debt market. Within high yield, the Fund's holdings of
industrial and banking issues were another positive contributor to
benchmark-relative results. Finally, despite the overall underperformance
from an asset allocation perspective, the Fund's exposure to the emerging
markets aided benchmark-relative returns over the 12-month period.
Q Did the Fund invest in any derivative securities during the 12-month
period ended October 31, 2019? If so, did the derivatives have a material
effect on benchmark-relative performance?
A We invested the Fund invested in four types of derivatives during the
12-month period: forward foreign currency contracts (currency forwards),
foreign currency options, U.S. Treasury futures, and credit default swaps
(CDS). Since we seek to achieve the portfolio's desired currency
positioning with derivatives, the use of derivatives detracted from the
Fund's benchmark-relative performance due to our bias towards a lower USD.
However, the foreign currency option positions aided benchmark-relative
results.
We invested the portfolio in Treasury futures to help manage interest-rate
risk, and that was a slight detractor from the Fund's relative returns.
The CDS positions had a positive impact on Fund returns, due to the broad
strength in the credit sectors over the 12-month period.
Q Were there any changes in the Fund's distributions* to shareholders during
the 12-month period ended October 31, 2019?
A The Fund's monthly distribution rose over the 12-month period compared
with the distribution level on October 31, 2018. The increase largely
resulted from our additions to the portfolio's holdings of non-USD debt
and certain currencies.
* Distributions are not guaranteed.
6 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
Q What is your outlook as we near the end of the calendar year, and how is
the outlook reflected in the Fund's positioning?
A The 12-month period ended with the Fund having a lower degree of currency
exposure than it had maintained throughout most of the past year. However,
we have remained prepared to rebuild the Fund's position in foreign
currencies. We believe a catalyst for USD weakness could come in the form
of improving relative economic growth trends overseas. We began to see
evidence of a move in that direction late in the 12-month period with the
stabilization of economic data across the international economies. At
period-end, the Fund's foreign currency exposures primarily encompassed
positions in the Japanese yen and select currencies in the emerging
markets, including Russia, Turkey, India, and Indonesia.
We have retained the Fund's lower-duration positioning in both the United
States and Europe, based on the belief that yields had fallen too low and
that the trades had become "crowded." If global economic growth is indeed
improving, central banks will have less of a need to cut interest rates,
meaning that yields in both regions could begin to move higher.
From an allocation perspective, the Fund continues to have an overweight
in the emerging markets, due to the above-average yields available in
those economies and their ability to benefit from a potential improvement
in global economic conditions. We are less enthusiastic on domestic
high-yield investments, however, due to relatively full valuations in the
asset class, but we are striving to capitalize on specific opportunities
among the more higher-rated credits in the category. The Fund closed the
12-month period with an underweight in investment-grade corporates, where
the robust gains of the past year have led to a less favorable risk/return
profile. In addition, we chose to reduce the Fund's weighting in senior
bank loans, based on the expectation that their floating-rate features are
likely to see lower investor demand now that the Fed appears to be in
rate-cutting mode.
The bond market and the USD both have experienced nearly uninterrupted
rallies in the past year, but we do not believe it is reasonable to expect
that the environment will remain so favorable indefinitely. As the
investment backdrop evolves, we believe our flexible, selective investment
approach can help us manage portfolio risk and help the Fund capitalize on
potential values as they emerge.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 7
Please refer to the Schedule of Investments on pages 17-39 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 held by the
Fund will generally fall. Conversely, when interest rates fall, the prices of
fixed income securities held by the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investments in high-yield or lower rated securities are subject to
greater-than-average price volatility, illiquidity and possibility of default.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The Fund may invest in mortgage-backed securities, which during times of
fluctuating 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.
8 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
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 | 10/31/19 9
Portfolio Summary | 10/31/19
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 37.6%
Foreign Government Bonds 24.1%
U.S. Government and Agency Obligations 21.1%
Collateralized Mortgage Obligations 6.9%
Senior Secured Floating Rate Loan Interests 6.5%
Affiliated Closed-End Fund (m) 2.6%
Asset Backed Securities 0.5%
Convertible Preferred Stock 0.4%
Municipal Bonds 0.1%
Insurance-Linked Securities 0.1%
Over The Counter (OTC) 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 51.2%
United Kingdom 8.6%
Japan 4.8%
France 4.2%
Netherlands 3.6%
Egypt 2.5%
Italy 2.0%
Mexico 1.8%
Switzerland 1.7%
Austria 1.2%
Argentina 1.2%
Sri Lanka 1.2%
Luxembourg 1.1%
Turkey 1.1%
Oman 1.0%
Sweden 1.0%
Germany 1.0%
Other (individually less than 1%) 10.8%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investments)*
1. U.S. Treasury Bills, 11/19/19 3.61%
--------------------------------------------------------------------------------
2. Japan Government Twenty Year Bond, 0.6%, 12/20/37 2.83
--------------------------------------------------------------------------------
3. Pioneer ILS Interval Fund (m) 2.60
--------------------------------------------------------------------------------
4. United Kingdom Gilt, 3.5%, 1/22/45 2.29
--------------------------------------------------------------------------------
5. Japan Government Thirty Year Bond, 0.8%, 12/20/47 2.00
--------------------------------------------------------------------------------
6. United Kingdom Gilt, 0.5%, 7/22/22 1.59
--------------------------------------------------------------------------------
7. Mexican Bonos, 8.0%, 12/7/23 1.26
--------------------------------------------------------------------------------
8. U.S. Treasury Inflation Indexed Bonds, 1.0%, 2/15/48 1.25
--------------------------------------------------------------------------------
9. U.S. Treasury Inflation Indexed Bonds, 0.875%, 2/15/47 1.10
--------------------------------------------------------------------------------
10. United Kingdom Gilt, 4.25%, 9/7/39 0.79
--------------------------------------------------------------------------------
* 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.
(m) 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 | 10/31/19
Prices and Distributions | 10/31/19
Net Asset Value per Share
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--------------------------------------------------------------------------------
Class 10/31/19 10/31/18
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A $10.32 $10.00
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C $10.35 $10.03
--------------------------------------------------------------------------------
Y $10.41 $10.08
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Distributions per Share: 11/1/18-10/31/19
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--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term Tax Return
Class Income Capital Gains Capital Gains of Capital
--------------------------------------------------------------------------------
A $0.0549 $ -- $ -- $0.2081
--------------------------------------------------------------------------------
C $0.0247 $ -- $ -- $0.1554
--------------------------------------------------------------------------------
Y $0.0817 $ -- $ -- $0.2091
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Index Definitions
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The Bloomberg Barclays Global Aggregate Bond Index is an unmanaged index that
provides a broad-based measure of the global investment-grade fixed-income
markets. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 12-14.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 11
Performance Update | 10/31/19 Class A Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Global Multisector Income Fund at
public offering price during the periods shown, compared to that of the
Bloomberg Barclays Global Aggregate Bond Index.
Average Annual Total Returns
(As of October 31, 2019)
------------------------------------------------
BBG
Barclays
Net Public Global
Asset Offering Aggregate
Value Price Bond
Period (NAV) (POP) Index
------------------------------------------------
10 years 2.83% 2.36% 2.36%
5 years 1.88 0.95 2.13
1 year 5.89 1.12 9.54
------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2019)
------------------------------------------------
Gross Net
------------------------------------------------
2.06% 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
10/09 $ 9,550 $10,000
10/10 $10,238 $10,689
10/11 $10,568 $11,124
10/12 $11,200 $11,518
10/13 $11,151 $11,341
10/14 $11,503 $11,366
10/15 $11,388 $11,016
10/16 $12,025 $11,632
10/17 $12,476 $11,769
10/18 $11,926 $11,528
10/19 $12,628 $12,627
Call 1-800-225-6292 or visit www.amundipioneer.com/us 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, 2020, 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 more current expense ratios.
12 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
Performance Update | 10/31/19 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, 2019)
------------------------------------------------
BBG
Barclays
Global
Aggregate
If If Bond
Period Held Redeemed Index
------------------------------------------------
10 years 1.98% 1.98% 2.36%
5 years 1.02 1.02 2.13
1 year 5.02 5.02 9.54
------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2019)
------------------------------------------------
Gross Net
------------------------------------------------
2.21% 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
10/09 $10,000 $10,000
10/10 $10,645 $10,689
10/11 $10,900 $11,124
10/12 $11,455 $11,518
10/13 $11,313 $11,341
10/14 $11,566 $11,366
10/15 $11,349 $11,016
10/16 $11,879 $11,632
10/17 $12,222 $11,769
10/18 $11,587 $11,528
10/19 $12,168 $12,627
Call 1-800-225-6292 or visit www.amundipioneer.com/us 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, 2020, 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 more current expense ratios.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 13
Performance Update | 10/31/19 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, 2019)
------------------------------------------------
BBG
Barclays
Net Global
Asset Aggregate
Value Bond
Period (NAV) Index
------------------------------------------------
10 years 3.11% 2.36%
5 years 2.15 2.13
1 year 6.23 9.54
------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2019)
------------------------------------------------
Gross Net
------------------------------------------------
1.21% 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
10/09 $5,000,000 $5,000,000
10/10 $5,374,009 $5,344,329
10/11 $5,570,689 $5,562,122
10/12 $5,919,539 $5,759,089
10/13 $5,904,653 $5,670,368
10/14 $6,106,325 $5,682,871
10/15 $6,068,346 $5,508,176
10/16 $6,416,439 $5,816,111
10/17 $6,679,210 $5,884,517
10/18 $6,392,341 $5,763,921
10/19 $6,790,365 $6,313,638
Call 1-800-225-6292 or visit www.amundipioneer.com/us 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, 2020, 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 more current expense ratios.
14 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
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, 2019 through October 31, 2019.
------------------------------------------------------------------------------------------
Share Class A C Y
------------------------------------------------------------------------------------------
Beginning Account Value on 5/1/19 $1,000.00 $1,000.00 $1,000.00
------------------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,028.96 $1,024.59 $1,030.06
on 10/31/19
------------------------------------------------------------------------------------------
Expenses Paid During Period* $5.11 $9.39 $3.84
------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.84%,
and 0.75% for Class A, Class C, and Class Y respectively, multiplied by
the average account value over the period, multiplied by 184/365 (to
reflect the partial year period).
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 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, 2019 through October 31, 2019.
------------------------------------------------------------------------------------------
Share Class A C Y
------------------------------------------------------------------------------------------
Beginning Account Value on 5/1/19 $1,000.00 $1,000.00 $1,000.00
------------------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,020.16 $1,015.93 $1,021.42
on 10/31/19
------------------------------------------------------------------------------------------
Expenses Paid During Period* $5.09 $9.35 $3.82
------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.84%,
and 0.75% for Class A, Class C, and Class Y respectively, multiplied by
the average account value over the period, multiplied by 184/365 (to
reflect the partial year period).
16 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
Schedule of Investments | 10/31/19
-----------------------------------------------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 93.5%
CONVERTIBLE PREFERRED STOCK -- 0.4%
of Net Assets
Banks -- 0.4%
95(a) Wells Fargo & Co., 7.5% $ 143,402
-----------
Total Banks $ 143,402
-----------------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $120,744) $ 143,402
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($)
-----------------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 0.4%
of Net Assets
69,300 Hardee's Funding LLC, Series 2018-1A, Class A2II,
4.959%, 6/20/48 (144A) $ 70,687
100,000 Progress Residential Trust, Series 2017-SFR1, Class E,
4.261%, 8/17/34 (144A) 102,574
-----------------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $169,299) $ 173,261
-----------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 6.6%
of Net Assets
100,000^(b) Arbor Realty Commercial Real Estate Notes, Ltd., Series
2017-FL1, Class B, 4.414% (1 Month USD LIBOR +
250 bps), 4/15/27 (144A) $ 100,000
80,000 BANK, Series 2017-BNK5, Class AS, 3.624%, 6/15/60 85,507
50,000(c) BANK, Series 2017-BNK8, Class B, 3.929%, 11/15/50 54,259
49,003(d)(e) Bayview Commercial Asset Trust, Series 2007-2A,
Class IO, 7/25/37 (144A) --
150,000 Benchmark Mortgage Trust, Series 2018-B2, Class A4,
3.615%, 2/15/51 163,045
200,000 Benchmark Mortgage Trust, Series 2018-B6, Class A3,
3.995%, 10/10/51 224,122
2,099(c) CHL Mortgage Pass-Through Trust, Series 2003-56,
Class 4A2, 4.327%, 12/25/33 2,096
100,000(c) Citigroup Commercial Mortgage Trust, Series 2014-GC19,
Class B, 4.805%, 3/10/47 108,924
75,000(c) Citigroup Commercial Mortgage Trust, Series 2014-GC25,
Class B, 4.345%, 10/10/47 80,326
100,000 Citigroup Commercial Mortgage Trust, Series 2015-GC27,
Class A5, 3.137%, 2/10/48 104,648
250,000 Citigroup Commercial Mortgage Trust, Series 2016-P5,
Class D, 3.0%, 10/10/49 (144A) 225,247
100,000(b) CLNS Trust, Series 2017-IKPR, Class C, 3.027% (1 Month
USD LIBOR + 110 bps), 6/11/32 (144A) 99,969
50,000 COMM Mortgage Trust, Series 2013-LC6, Class A4,
2.941%, 1/10/46 51,184
100,000(c) COMM Mortgage Trust, Series 2015-CR23, Class CMD,
3.685%, 5/10/48 (144A) 100,161
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 17
Schedule of Investments | 10/31/19 (continued)
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- (continued)
100,000(c) COMM Mortgage Trust, Series 2015-CR25, Class B,
4.543%, 8/10/48 $ 108,174
238,263 COMM Mortgage Trust, Series 2016-CR28, Class AHR,
3.651%, 2/10/49 250,577
50,000(c) CSAIL Commercial Mortgage Trust, Series 2016-C5,
Class C, 4.536%, 11/15/48 53,825
3,730 Federal National Mortgage Association REMICS, Series
2009-36, Class HX, 4.5%, 6/25/29 3,884
45,000(c) FREMF Mortgage Trust, Series 2010-K9, Class B, 5.208%,
9/25/45 (144A) 45,884
50,000(c) FREMF Mortgage Trust, Series 2015-K51, Class B, 3.954%,
10/25/48 (144A) 52,808
19,719 Government National Mortgage Association, Series 2005-61,
Class UZ, 5.25%, 8/16/35 20,719
15,995 Government National Mortgage Association, Series 2009-83,
Class EB, 4.5%, 9/20/39 17,572
191,286 Government National Mortgage Association, Series 2018-20,
Class A, 2.5%, 9/16/49 191,708
100,000(b) IMT Trust, Series 2017-APTS, Class BFL, 2.864% (1 Month
USD LIBOR + 95 bps), 6/15/34 (144A) 99,860
35,070(b) Interstar Millennium Trust, Series 2003-3G, Class A2,
2.6% (3 Month USD LIBOR + 50 bps), 9/27/35 33,960
62,818 JP Morgan Chase Commercial Mortgage Securities Trust,
Series 2012-LC9, Class A5, 2.84%, 12/15/47 63,977
50,000(c) Morgan Stanley Bank of America Merrill Lynch Trust, Series
2015-C22, Class D, 4.236%, 4/15/48 (144A) 47,199
105,000 Morgan Stanley Capital I Trust, Series 2016-UBS9,
Class D, 3.0%, 3/15/49 (144A) 97,404
68(b) RALI Trust, Series 2002-QS16, Class A2, 2.373% (1 Month
USD LIBOR + 55 bps), 10/25/17 70
190,017(c) Sequoia Mortgage Trust, Series 2013-4, Class A2,
2.5%, 4/25/43 188,292
-----------------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $2,593,835) $ 2,675,401
-----------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 36.1% of Net Assets
Aerospace & Defense -- 0.1%
40,000 United Technologies Corp., 4.125%, 11/16/28 $ 45,389
-----------
Total Aerospace & Defense $ 45,389
-----------------------------------------------------------------------------------------------------------------------
Agriculture -- 1.1%
EUR 160,000 Altria Group, Inc., 3.125%, 6/15/31 $ 196,458
EUR 100,000 BAT Capital Corp., 1.125%, 11/16/23 114,221
EUR 100,000 Imperial Brands Finance Plc, 2.25%, 2/26/21 114,060
-----------
Total Agriculture $ 424,739
-----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
Auto Manufacturers -- 0.5%
110,000 Ford Motor Co., 4.346%, 12/8/26 $ 110,598
90,000 General Motors Co., 6.6%, 4/1/36 104,484
-----------
Total Auto Manufacturers $ 215,082
-----------------------------------------------------------------------------------------------------------------------
Banks -- 9.6%
200,000 Access Bank Plc, 10.5%, 10/19/21 (144A) $ 220,900
EUR 200,000(c) Barclays Plc, 2.625% (5 Year EUR Swap Rate +
245 bps), 11/11/25 226,519
EUR 150,000 BNP Paribas SA, 2.375%, 2/17/25 181,810
EUR 200,000 BPCE SA, 2.875%, 4/22/26 254,561
75,000 Cooperatieve Rabobank UA, 3.875%, 2/8/22 78,065
200,000(a)(c) Credit Suisse Group AG, 7.125% (5 Year USD Swap
Rate + 511 bps) 213,750
EUR 200,000(a)(c) Erste Group Bank AG, 8.875% (5 Year EUR Swap
Rate + 902 bps) 253,704
150,000 Freedom Mortgage Corp., 8.125%, 11/15/24 (144A) 140,625
EUR 100,000 Goldman Sachs Group, Inc., 1.625%, 7/27/26 119,302
105,000(c) Goldman Sachs Group, Inc., 4.223% (3 Month USD
LIBOR + 130 bps), 5/1/29 114,750
EUR 100,000 HSBC Holdings Plc, 0.875%, 9/6/24 115,304
EUR 200,000(c) ING Groep NV, 3.0% (5 Year EUR Swap Rate +
285 bps), 4/11/28 241,090
EUR 200,000(a)(c) Intesa Sanpaolo S.p.A., 7.75% (5 Year EUR Swap
Rate + 719 bps) 265,517
128,000(a)(c) JPMorgan Chase & Co., 5.0% (3 Month SOFR + 338 bps) 133,120
EUR 200,000(a)(c) Lloyds Banking Group Plc, 6.375% (5 Year EUR Swap
Rate + 529 bps) 229,309
EUR 100,000(b) Mediobanca Banca di Credito Finanziario S.p.A., 0.396%
(3 Month EURIBOR + 80 bps), 5/18/22 111,754
EUR 100,000 Nykredit Realkredit AS, 0.75%, 7/14/21 113,021
200,000 QNB Finansbank AS, 4.875%, 5/19/22 (144A) 199,500
200,000(a)(c) Societe Generale SA, 7.375% (5 Year USD Swap Rate +
624 bps) (144A) 210,500
EUR 200,000 UBS Group AG, 1.75%, 11/16/22 234,213
200,000(a)(c) UBS Group AG, 7.0% (5 Year USD Swap Rate +
434 bps) (144A) 214,500
-----------
Total Banks $ 3,871,814
-----------------------------------------------------------------------------------------------------------------------
Beverages -- 0.7%
115,000 Anheuser-Busch InBev Worldwide, Inc., 5.55%, 1/23/49 $ 151,870
100,000 Bacardi, Ltd., 5.3%, 5/15/48 (144A) 112,626
-----------
Total Beverages $ 264,496
-----------------------------------------------------------------------------------------------------------------------
Biotechnology -- 0.2%
50,000 Biogen, Inc., 5.2%, 9/15/45 $ 61,315
-----------
Total Biotechnology $ 61,315
-----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 19
Schedule of Investments | 10/31/19 (continued)
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
Building Materials -- 0.9%
EUR 100,000 Buzzi Unicem S.p.A., 2.125%, 4/28/23 $ 117,404
EUR 100,000 HeidelbergCement AG, 2.25%, 6/3/24 120,458
EUR 100,000 Holcim Finance Luxembourg SA, 2.25%, 5/26/28 124,519
-----------
Total Building Materials $ 362,381
-----------------------------------------------------------------------------------------------------------------------
Chemicals -- 0.4%
EUR 100,000 Arkema SA, 1.5%, 1/20/25 $ 119,113
28,000 CF Industries, Inc., 5.375%, 3/15/44 28,700
23,000 Dow Chemical Co., 4.8%, 5/15/49 (144A) 25,580
-----------
Total Chemicals $ 173,393
-----------------------------------------------------------------------------------------------------------------------
Commercial Services -- 0.3%
EUR 100,000 Brisa Concessao Rodoviaria SA, 2.0%, 3/22/23 $ 118,484
-----------
Total Commercial Services $ 118,484
-----------------------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 0.3%
125,000 Capital One Financial Corp., 4.25%, 4/30/25 $ 136,205
-----------
Total Diversified Financial Services $ 136,205
-----------------------------------------------------------------------------------------------------------------------
Electric -- 1.7%
GBP 125,000 Cadent Finance Plc, 2.125%, 9/22/28 $ 164,954
EUR 100,000 Coentreprise de Transport d'Electricite SA, 0.875%, 9/29/24 115,504
EUR 100,000 EDP Finance BV, 1.875%, 9/29/23 118,737
GBP 75,000 innogy Finance BV, 5.625%, 12/6/23 113,738
31,000 New York State Electric & Gas Corp., 3.3%, 9/15/49 (144A) 30,661
85,000 NextEra Energy Capital Holdings, Inc., 3.55%, 5/1/27 90,553
65,000 Sempra Energy, 3.4%, 2/1/28 66,521
-----------
Total Electric $ 700,668
-----------------------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.6%
EUR 100,000 Belden, Inc., 2.875%, 9/15/25 (144A) $ 112,586
EUR 100,000 Legrand SA, 1.875%, 7/6/32 128,043
-----------
Total Electrical Components & Equipment $ 240,629
-----------------------------------------------------------------------------------------------------------------------
Electronics -- 0.6%
41,000 Amphenol Corp., 3.2%, 4/1/24 $ 42,324
63,000 Amphenol Corp., 4.35%, 6/1/29 70,062
115,000 Flex, Ltd., 4.875%, 6/15/29 124,296
-----------
Total Electronics $ 236,682
-----------------------------------------------------------------------------------------------------------------------
Engineering & Construction -- 0.3%
EUR 100,000(a)(c) Ferrovial Netherlands BV, 2.124% (5 Year EUR Swap
Rate + 213 bps) $ 108,188
-----------
Total Engineering & Construction $ 108,188
-----------------------------------------------------------------------------------------------------------------------
Entertainment -- 0.1%
28,000 Scientific Games International, Inc., 10.0%, 12/1/22 $ 28,805
-----------
Total Entertainment $ 28,805
-----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
Forest Products & Paper -- 0.1%
50,000 International Paper Co., 4.8%, 6/15/44 $ 54,241
5,000 International Paper Co., 6.0%, 11/15/41 6,175
-----------
Total Forest Products & Paper $ 60,416
-----------------------------------------------------------------------------------------------------------------------
Gas -- 0.3%
15,000 Boston Gas Co., 3.15%, 8/1/27 (144A) $ 15,656
77,214 Nakilat, Inc., 6.267%, 12/31/33 (144A) 92,480
-----------
Total Gas $ 108,136
-----------------------------------------------------------------------------------------------------------------------
Healthcare-Products -- 0.1%
24,000 Abbott Laboratories, 3.75%, 11/30/26 $ 26,296
-----------
Total Healthcare-Products $ 26,296
-----------------------------------------------------------------------------------------------------------------------
Healthcare-Services -- 0.4%
38,000 Anthem, Inc., 3.35%, 12/1/24 $ 39,854
40,000 Anthem, Inc., 3.65%, 12/1/27 42,305
6,000 Anthem, Inc., 4.101%, 3/1/28 6,524
80,000 Humana, Inc., 3.95%, 3/15/27 85,725
-----------
Total Healthcare-Services $ 174,408
-----------------------------------------------------------------------------------------------------------------------
Insurance -- 3.9%
EUR 100,000(a)(c) Allianz SE, 3.375% (10 Year EUAMDB + 320 bps) $ 123,147
EUR 200,000 Assicurazioni Generali S.p.A., 4.125%, 5/4/26 260,224
EUR 100,000(c) Aviva Plc, 6.125% (5 Year EUR Swap Rate +
513 bps), 7/5/43 130,544
EUR 100,000(a)(c) AXA SA, 3.875% (11 Year EUR Swap Rate + 325 bps) 125,933
60,000 AXA SA, 8.6%, 12/15/30 87,072
16,000 CNO Financial Group, Inc., 5.25%, 5/30/25 17,520
9,000 CNO Financial Group, Inc., 5.25%, 5/30/29 9,926
EUR 100,000(c) CNP Assurances, 6.0% (3 Month EURIBOR +
447 bps), 9/14/40 117,011
35,000 Delphi Financial Group, Inc., 7.875%, 1/31/20 35,466
20,000(c) Farmers Exchange Capital III, 5.454% (3 Month USD
LIBOR + 345 bps), 10/15/54 (144A) 23,030
100,000(c) Farmers Insurance Exchange, 4.747% (3 Month USD
LIBOR + 323 bps), 11/1/57 (144A) 102,618
100,000 Liberty Mutual Insurance Co., 7.697%, 10/15/97 (144A) 147,857
EUR 100,000(c) Muenchener Rueckversicherungs-Gesellschaft AG in
Muenchen, 6.25% (3 Month EURIBOR +
495 bps), 5/26/42 128,721
EUR 100,000(a)(c) NN Group NV, 4.375% (3 Month EURIBOR + 390 bps) 122,625
100,000 Teachers Insurance & Annuity Association of America,
4.9%, 9/15/44 (144A) 125,693
13,000 Willis North America, Inc., 2.95%, 9/15/29 12,936
-----------
Total Insurance $ 1,570,323
-----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 21
Schedule of Investments | 10/31/19 (continued)
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
Internet -- 0.6%
125,000 Booking Holdings, Inc., 3.55%, 3/15/28 $ 134,656
68,000 Expedia Group, Inc., 3.25%, 2/15/30 (144A) 68,046
50,000 Expedia Group, Inc., 3.8%, 2/15/28 52,459
-----------
Total Internet $ 255,161
-----------------------------------------------------------------------------------------------------------------------
Lodging -- 0.3%
EUR 100,000 Accor SA, 1.25%, 1/25/24 $ 115,454
-----------
Total Lodging $ 115,454
-----------------------------------------------------------------------------------------------------------------------
Media -- 1.1%
60,000 Comcast Corp., 4.15%, 10/15/28 $ 67,775
200,000 CSC Holdings LLC, 5.375%, 2/1/28 (144A) 211,500
EUR 150,000 Sky, Ltd., 1.5%, 9/15/21 172,164
-----------
Total Media $ 451,439
-----------------------------------------------------------------------------------------------------------------------
Mining -- 0.3%
EUR 100,000 Anglo American Capital Plc, 3.25%, 4/3/23 $ 122,439
-----------
Total Mining $ 122,439
-----------------------------------------------------------------------------------------------------------------------
Multi-National -- 1.2%
200,000 African Export-Import Bank, 3.994%, 9/21/29 (144A) $ 200,064
200,000 Banque Ouest Africaine de Development, 4.7%,
10/22/31 (144A) 201,264
IDR 1,160,000,000 Inter-American Development Bank, 7.875%, 3/14/23 86,201
-----------
Total Multi-National $ 487,529
-----------------------------------------------------------------------------------------------------------------------
Oil & Gas -- 1.7%
40,000 Apache Corp., 4.25%, 1/15/30 $ 38,955
65,000 Apache Corp., 4.375%, 10/15/28 64,497
95,000 EQT Corp., 3.9%, 10/1/27 84,659
80,000 Marathon Petroleum Corp., 5.375%, 10/1/22 80,955
65,000 Noble Energy, Inc., 5.25%, 11/15/43 70,163
18,000 Occidental Petroleum Corp., 3.2%, 8/15/26 18,221
4,000 Occidental Petroleum Corp., 4.4%, 8/15/49 4,057
EUR 200,000(c) Repsol International Finance BV, 4.5% (10 Year EUR
Swap Rate + 420 bps), 3/25/75 255,804
29,000 Valero Energy Corp., 6.625%, 6/15/37 37,842
ARS 2,154,200 YPF SA, 16.5%, 5/9/22 (144A) 12,294
-----------
Total Oil & Gas $ 667,447
-----------------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 1.2%
EUR 100,000 Bausch Health Cos., Inc., 4.5%, 5/15/23 $ 112,671
116,000 Cardinal Health, Inc., 3.079%, 6/15/24 117,913
45,000 Cigna Corp., 4.375%, 10/15/28 49,422
11,129 CVS Pass-Through Trust, 5.773%, 1/10/33 (144A) 12,715
200,000 Perrigo Finance Unlimited Co., 3.9%, 12/15/24 205,220
-----------
Total Pharmaceuticals $ 497,941
-----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
Pipelines -- 2.7%
40,000 Cheniere Energy Partners LP, 5.25%, 10/1/25 $ 41,400
100,000 Enable Midstream Partners LP, 4.4%, 3/15/27 99,084
75,000 Enable Midstream Partners LP, 4.95%, 5/15/28 76,818
100,000 Energy Transfer Operating LP, 5.875%, 1/15/24 111,030
50,000 Energy Transfer Operating LP, 6.0%, 6/15/48 57,893
10,000 Energy Transfer Operating LP, 6.125%, 12/15/45 11,674
155,000 EnLink Midstream Partners LP, 5.45%, 6/1/47 118,575
20,000 EnLink Midstream Partners LP, 5.6%, 4/1/44 15,350
125,000 MPLX LP, 4.875%, 12/1/24 136,149
125,000 Phillips 66 Partners LP, 3.75%, 3/1/28 131,267
60,000 Sabine Pass Liquefaction LLC, 5.0%, 3/15/27 65,904
60,000 Sunoco Logistics Partners Operations LP, 6.1%, 2/15/42 67,777
90,000 Texas Eastern Transmission LP, 3.5%, 1/15/28 (144A) 93,660
57,000 Williams Cos., Inc., 5.75%, 6/24/44 65,785
13,000 Williams Cos., Inc., 7.75%, 6/15/31 17,140
-----------
Total Pipelines $ 1,109,506
-----------------------------------------------------------------------------------------------------------------------
Real Estate -- 0.9%
EUR 100,000 Akelius Residential Property AB, 1.125%, 3/14/24 $ 114,145
EUR 100,000 Annington Funding Plc, 1.65%, 7/12/24 115,300
EUR 100,000(a)(c) ATF Netherlands BV, 3.75% (5 Year EUR Swap Rate +
438 bps) 117,229
-----------
Total Real Estate $ 346,674
-----------------------------------------------------------------------------------------------------------------------
REITs -- 1.4%
2,000 Alexandria Real Estate Equities, Inc., 3.9%, 6/15/23 $ 2,112
23,000 Alexandria Real Estate Equities, Inc., 4.3%, 1/15/26 25,246
EUR 200,000 GELF Bond Issuer I SA, 0.875%, 10/20/22 227,262
30,000 GLP Capital LP/GLP Financing II, Inc., 4.0%, 1/15/30 30,344
60,000 Healthcare Trust of America Holdings LP, 3.75%, 7/1/27 63,219
35,000 Highwoods Realty LP, 3.625%, 1/15/23 36,239
EUR 100,000 Merlin Properties Socimi SA, 2.225%, 4/25/23 118,533
50,000 SBA Tower Trust, 2.877%, 7/9/21 (144A) 50,227
27,000 UDR, Inc., 4.0%, 10/1/25 29,282
-----------
Total REITs $ 582,464
-----------------------------------------------------------------------------------------------------------------------
Savings & Loans -- 0.3%
EUR 100,000 Leeds Building Society, 1.375%, 5/5/22 $ 115,162
-----------
Total Savings & Loans $ 115,162
-----------------------------------------------------------------------------------------------------------------------
Software -- 0.3%
EUR 100,000 IQVIA, Inc., 2.875%, 9/15/25 (144A) $ 114,510
-----------
Total Software $ 114,510
-----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 23
Schedule of Investments | 10/31/19 (continued)
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
Telecommunications -- 1.6%
200,000 Digicel, Ltd., 6.0%, 4/15/21 (144A) $ 149,002
40,000 Frontier Communications Corp., 7.125%, 1/15/23 18,000
GBP 100,000 Koninklijke KPN NV, 5.0%, 11/18/26 150,441
EUR 125,000(a)(c) Orange SA, 5.0% (5 Year EUR Swap Rate + 399 bps) 168,301
36,000 Sprint Corp., 7.25%, 9/15/21 38,414
EUR 100,000 Telekom Finanzmanagement GmbH, 3.5%, 7/4/23 125,480
-----------
Total Telecommunications $ 649,638
-----------------------------------------------------------------------------------------------------------------------
Water -- 0.3%
EUR 100,000 FCC Aqualia SA, 1.413%, 6/8/22 $ 114,703
-----------
Total Water $ 114,703
-----------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $14,333,958) $14,557,916
-----------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 23.2%
of Net Assets
Angola -- 0.5%
200,000 Angolan Government International Bond, 8.25%,
5/9/28 (144A) $ 208,782
-----------
Total Angola $ 208,782
-----------------------------------------------------------------------------------------------------------------------
Argentina -- 1.1%
100,000 Argentine Republic Government International Bond,
6.875%, 1/26/27 $ 39,251
300,000 Argentine Republic Government International Bond,
7.5%, 4/22/26 127,203
250,000 Ciudad Autonoma De Buenos Aires, 7.5%, 6/1/27 (144A) 189,375
300,000 Provincia de Buenos Aires, 9.125%, 3/16/24 (144A) 102,750
-----------
Total Argentina $ 458,579
-----------------------------------------------------------------------------------------------------------------------
Austria -- 0.2%
EUR 50,000 Republic of Austria Government Bond, 4.15%,
3/15/37 (144A) $ 93,739
-----------
Total Austria $ 93,739
-----------------------------------------------------------------------------------------------------------------------
Bahrain -- 0.6%
200,000 Bahrain Government International Bond, 7.0%,
10/12/28 (144A) $ 230,580
-----------
Total Bahrain $ 230,580
-----------------------------------------------------------------------------------------------------------------------
Dominican Republic -- 0.4%
DOP 8,000,000 Dominican Republic International Bond, 8.9%,
2/15/23 (144A) $ 151,061
-----------
Total Dominican Republic $ 151,061
-----------------------------------------------------------------------------------------------------------------------
Egypt -- 1.9%
EGP 1,754,000 Egypt Government Bond, 15.7%, 11/7/27 $ 116,145
EGP 1,130,000 Egypt Government Bond, 16.1%, 5/7/29 76,632
269,000 Egypt Government International Bond, 7.6%, 3/1/29 (144A) 284,319
EGP 1,050,000(f) Egypt Treasury Bills, 3/3/20 61,833
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
Egypt -- (continued)
EGP 3,875,000(f) Egypt Treasury Bills, 2/4/20 $ 230,852
-----------
Total Egypt $ 769,781
-----------------------------------------------------------------------------------------------------------------------
Indonesia -- 0.6%
IDR 3,744,000,000 Indonesia Treasury Bond, 6.125%, 5/15/28 $ 254,359
-----------
Total Indonesia $ 254,359
-----------------------------------------------------------------------------------------------------------------------
Ivory Coast -- 0.3%
EUR 110,000 Ivory Coast Government International Bond, 5.875%,
10/17/31 (144A) $ 124,032
-----------
Total Ivory Coast $ 124,032
-----------------------------------------------------------------------------------------------------------------------
Japan -- 4.6%
JPY 75,000,000 Japan Government Thirty Year Bond, 0.8%, 12/20/47 $ 774,170
JPY 110,000,000 Japan Government Twenty Year Bond, 0.6%, 12/20/37 1,093,756
-----------
Total Japan $ 1,867,926
-----------------------------------------------------------------------------------------------------------------------
Kenya -- 0.5%
200,000 Kenya Government International Bond, 7.25%,
2/28/28 (144A) $ 210,957
-----------
Total Kenya $ 210,957
-----------------------------------------------------------------------------------------------------------------------
Mexico -- 1.7%
MXN 300,000 Mexican Bonos, 7.5%, 6/3/27 $ 16,305
MXN 8,955,000 Mexican Bonos, 8.0%, 12/7/23 489,605
MXN 3,629,415 Mexican Udibonos, 2.0%, 6/9/22 182,290
-----------
Total Mexico $ 688,200
-----------------------------------------------------------------------------------------------------------------------
Oman -- 1.0%
200,000 Oman Government International Bond, 5.375%,
3/8/27 (144A) $ 198,000
200,000 Oman Government International Bond, 5.625%,
1/17/28 (144A) 197,750
-----------
Total Oman $ 395,750
-----------------------------------------------------------------------------------------------------------------------
Portugal -- 0.4%
EUR 100,000 Portugal Obrigacoes do Tesouro OT, 4.95%,
10/25/23 (144A) $ 134,659
-----------
Total Portugal $ 134,659
-----------------------------------------------------------------------------------------------------------------------
Russia -- 0.8%
RUB 17,256,000 Russian Federal Bond - OFZ, 8.15%, 2/3/27 $ 297,474
-----------
Total Russia $ 297,474
-----------------------------------------------------------------------------------------------------------------------
Senegal -- 0.5%
200,000 Senegal Government International Bond, 6.25%,
5/23/33 (144A) $ 204,154
-----------
Total Senegal $ 204,154
-----------------------------------------------------------------------------------------------------------------------
Sri Lanka -- 1.1%
220,000 Sri Lanka Government International Bond, 7.55%,
3/28/30 (144A) $ 222,502
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 25
Schedule of Investments | 10/31/19 (continued)
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
Sri Lanka -- (continued)
225,000 Sri Lanka Government International Bond, 7.85%,
3/14/29 (144A) $ 232,846
-----------
Total Sri Lanka $ 455,348
-----------------------------------------------------------------------------------------------------------------------
Sweden -- 0.7%
SEK 2,300,000 Sweden Government Bond, 2.5%, 5/12/25 $ 275,724
-----------
Total Sweden $ 275,724
-----------------------------------------------------------------------------------------------------------------------
Turkey -- 0.6%
250,000 Turkey Government International Bond, 3.25%, 3/23/23 $ 236,655
-----------
Total Turkey $ 236,655
-----------------------------------------------------------------------------------------------------------------------
Ukraine -- 0.6%
200,000 Ukraine Government International Bond, 8.994%,
2/1/24 (144A) $ 222,500
-----------
Total Ukraine $ 222,500
-----------------------------------------------------------------------------------------------------------------------
United Kingdom -- 4.5%
GBP 475,000 United Kingdom Gilt, 0.5%, 7/22/22 $ 615,794
GBP 450,000 United Kingdom Gilt, 3.5%, 1/22/45 885,302
GBP 150,000 United Kingdom Gilt, 4.25%, 9/7/39 305,959
-----------
Total United Kingdom $ 1,807,055
-----------------------------------------------------------------------------------------------------------------------
Uruguay -- 0.6%
UYU 9,771,000 Uruguay Government International Bond, 9.875%,
6/20/22 (144A) $ 254,419
-----------
Total Uruguay $ 254,419
-----------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $9,361,917) $ 9,341,734
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Face
Amount USD ($)
-----------------------------------------------------------------------------------------------------------------------
INSURANCE-LINKED SECURITIES -- 0.1%
of Net Assets(g)
Reinsurance Sidecars -- 0.1%
Multiperil -- Worldwide -- 0.1%
30,000+(h)(i) Lorenz Re 2018, 7/1/21 $ 6,297
30,000+(j) Pangaea Re 2015-2, 5/29/20 45
30,000+(j) Pangaea Re 2016-1, 11/30/20 82
50,000+(i)(j) Pangaea Re 2017-1, 11/30/21 805
50,000+(i)(j) Pangaea Re 2018-1, 12/31/21 2,940
40,962+(i)(j) Pangaea Re 2019-1, 2/1/23 40,749
-----------
Total Reinsurance Sidecars $ 50,918
-----------------------------------------------------------------------------------------------------------------------
TOTAL INSURANCE-LINKED SECURITIES
(Cost $74,174) $ 50,918
-----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 0.1% of Net Assets(k)
Municipal General -- 0.1%
30,000 Virginia Commonwealth Transportation Board, Transportation
Capital Projects, 4.0%, 5/15/32 $ 32,852
-----------
Total Municipal General $ 32,852
-----------------------------------------------------------------------------------------------------------------------
Municipal Higher Education -- 0.0%+
15,000 Massachusetts Development Finance Agency, Harvard
University, Series A, 5.0%, 7/15/40 $ 21,798
-----------
Total Municipal Higher Education $ 21,798
-----------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $50,765) $ 54,650
-----------------------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 6.3% of Net Assets*(b)
Automobile -- 0.4%
81,170 American Axle & Manufacturing, Inc., Tranche B Term Loan,
4.102% (LIBOR + 225 bps), 4/6/24 $ 77,619
107,182 CWGS Group LLC, Term Loan, 4.759% (LIBOR +
275 bps), 11/8/23 91,105
-----------
Total Automobile $ 168,724
-----------------------------------------------------------------------------------------------------------------------
Broadcasting & Entertainment -- 0.2%
98,481 Sinclair Television Group, Inc., Tranche B Term Loan, 4.04%
(LIBOR + 225 bps), 1/3/24 $ 98,512
-----------
Total Broadcasting & Entertainment $ 98,512
-----------------------------------------------------------------------------------------------------------------------
Chemicals, Plastics & Rubber -- 0.4%
98,500 Axalta Coating Systems Dutch Holding B BV (Axalta Coating
Systems US Holdings, Inc.), Term B-3 Dollar Loan,
3.854% (LIBOR + 175 bps), 6/1/24 $ 98,531
41,732 PQ Corp., Third Amendment Tranche B-1 Term Loan, 4.427%
(LIBOR + 250 bps), 2/8/25 41,784
-----------
Total Chemicals, Plastics & Rubber $ 140,315
-----------------------------------------------------------------------------------------------------------------------
Computers & Electronics -- 0.5%
25,758 Energy Acquisition LP, (aka Electrical Components
International), First Lien Initial Term Loan,
6.354% (LIBOR + 425 bps), 6/26/25 $ 23,697
123,125 Iron Mountain Information Management LLC, Incremental
Term B Loan, 3.536% (LIBOR + 175 bps), 1/2/26 121,740
57,489 Microchip Technology, Inc., Initial Term Loan, 3.79%
(LIBOR + 200 bps), 5/29/25 57,777
-----------
Total Computers & Electronics $ 203,214
-----------------------------------------------------------------------------------------------------------------------
Diversified & Conglomerate Service -- 0.7%
95,742 ASGN, Inc. (fka On Assignment, Inc.), Initial Term B-2 Loan,
3.786% (LIBOR + 200 bps), 4/2/25 $ 96,173
19,477 Change Healthcare Holdings, Inc. (fka Emdeon, Inc.),
Closing Date Term Loan, 4.286% (LIBOR +
250 bps), 3/1/24 19,390
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 27
Schedule of Investments | 10/31/19 (continued)
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
Diversified & Conglomerate Service -- (continued)
49,270 DG Investment Intermediate Holdings 2, Inc. (aka
Convergint Technologies Holdings LLC), First Lien Initial
Term Loan, 4.786% (LIBOR + 300 bps), 2/3/25 $ 48,069
49,252 NVA Holdings, Inc., First Lien Term B-3 Loan, 4.536%
(LIBOR + 275 bps), 2/2/25 49,240
74,063 West Corp., Incremental Term B-1 Loan, 5.427% (LIBOR +
350 bps), 10/10/24 61,888
-----------
Total Diversified & Conglomerate Service $ 274,760
-----------------------------------------------------------------------------------------------------------------------
Electric & Electrical -- 0.0%+
7,878 Rackspace Hosting, Inc., First Lien Term B Loan, 5.287%
(LIBOR + 300 bps), 11/3/23 $ 7,035
-----------
Total Electric & Electrical $ 7,035
-----------------------------------------------------------------------------------------------------------------------
Electronics -- 0.1%
49,250 Scientific Games International, Inc., Initial Term B-5 Loan,
4.536% (LIBOR + 275 bps), 8/14/24 $ 48,733
-----------
Total Electronics $ 48,733
-----------------------------------------------------------------------------------------------------------------------
Environmental Services -- 0.2%
98,777 GFL Environmental, Inc., Effective Date Incremental Term
Loan, 4.786% (LIBOR + 300 bps), 5/30/25 $ 98,617
-----------
Total Environmental Services $ 98,617
-----------------------------------------------------------------------------------------------------------------------
Financial Services -- 0.1%
46,386 RPI Finance Trust, Initial Term Loan B-6, 3.786% (LIBOR +
200 bps), 3/27/23 $ 46,651
-----------
Total Financial Services $ 46,651
-----------------------------------------------------------------------------------------------------------------------
Healthcare & Pharmaceuticals -- 0.3%
97,750 Endo Luxembourg Finance Co. I S.a r.l., Initial Term Loan,
6.063% (LIBOR + 425 bps), 4/29/24 $ 89,825
36,177 Gentiva Health Services, Inc., First Lien Closing Date
Initial Term Loan, 5.563% (LIBOR + 375 bps), 7/2/25 36,279
-----------
Total Healthcare & Pharmaceuticals $ 126,104
-----------------------------------------------------------------------------------------------------------------------
Healthcare, Education & Childcare -- 0.5%
49,237 ATI Holdings Acquisition, Inc., First Lien Initial Term
Loan, 5.304% (LIBOR + 350 bps), 5/10/23 $ 47,267
48,633 KUEHG Corp. (fka KC MergerSub, Inc.) (aka KinderCare),
Term B-3 Loan, 5.854% (LIBOR + 375 bps), 2/21/25 48,134
98,246 Life Time Fitness, Inc., 2017 Refinancing Term Loan,
4.874% (LIBOR + 275 bps), 6/10/22 98,015
-----------
Total Healthcare, Education & Childcare $ 193,416
-----------------------------------------------------------------------------------------------------------------------
Hotel, Gaming & Leisure -- 0.1%
47,053 1011778 BC Unlimited Liability Co. (New Red Finance, Inc.)
(aka Burger King/Tim Hortons), Term B-3 Loan,
4.036% (LIBOR + 225 bps), 2/16/24 $ 47,200
-----------
Total Hotel, Gaming & Leisure $ 47,200
-----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
Insurance -- 0.4%
45,655 Asurion LLC (fka Asurion Corp.), New B-7 Term Loan,
4.786% (LIBOR + 300 bps), 11/3/24 $ 45,752
48,858 Integro Parent, Inc., First Lien Initial Term Loan, 7.795%
(LIBOR + 575 bps), 10/31/22 47,636
49,246 USI, Inc. (fka Compass Investors, Inc.), 2017 New Term
Loan, 5.104% (LIBOR + 300 bps), 5/16/24 47,869
-----------
Total Insurance $ 141,257
-----------------------------------------------------------------------------------------------------------------------
Leasing -- 0.4%
94,711 Avolon TLB Borrower 1 (US) LLC, Term B-3 Loan, 3.596%
(LIBOR + 175 bps), 1/15/25 $ 95,212
73,875 IBC Capital I, Ltd. (aka Goodpack, Ltd.), First Lien Tranche
B-1 Term Loan, 5.895% (LIBOR + 375 bps), 9/11/23 73,182
-----------
Total Leasing $ 168,394
-----------------------------------------------------------------------------------------------------------------------
Manufacturing -- 0.2%
62,848 Aristocrat Leisure, Ltd., Term B-3 Loan, 3.716% (LIBOR +
175 bps), 10/19/24 $ 63,074
-----------
Total Manufacturing $ 63,074
-----------------------------------------------------------------------------------------------------------------------
Media -- 0.2%
31,535 CSC Holdings LLC (fka CSC Holdings, Inc. (Cablevision)),
October 2018 Incremental Term Loan, 4.171%
(LIBOR + 225 bps), 1/15/26 $ 31,401
49,375 CSC Holdings LLC (fka CSC Holdings, Inc. (Cablevision)),
September 2019 Initial Term Loan, 4.327% (LIBOR +
250 bps), 4/15/27 49,375
-----------
Total Media $ 80,776
-----------------------------------------------------------------------------------------------------------------------
Metals & Mining -- 0.2%
46,310 Atkore International, Inc., First Lien Initial Incremental
Term Loan, 4.86% (LIBOR + 275 bps), 12/22/23 $ 46,303
48,265 Zekelman Industries, Inc. (fka JMC Steel Group, Inc.),
Term Loan, 4.073% (LIBOR + 225 bps), 6/14/21 48,250
-----------
Total Metals & Mining $ 94,553
-----------------------------------------------------------------------------------------------------------------------
Personal, Food & Miscellaneous Services -- 0.2%
97,487 Revlon Consumer Products Corp., Initial Term B Loan,
5.624% (LIBOR + 350 bps), 9/7/23 $ 76,985
-----------
Total Personal, Food & Miscellaneous Services $ 76,985
-----------------------------------------------------------------------------------------------------------------------
Professional & Business Services -- 0.3%
98,500 Lamar Media Corp., Term B Loan, 3.563% (LIBOR +
175 bps), 3/14/25 $ 99,054
-----------
Total Professional & Business Services $ 99,054
-----------------------------------------------------------------------------------------------------------------------
Securities & Trusts -- 0.2%
65,000(l) Stonepeak Lonestar Holdings LLC, Initial Term
Loan, 10/19/26 $ 63,903
-----------
Total Securities & Trusts $ 63,903
-----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 29
Schedule of Investments | 10/31/19 (continued)
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
Telecommunications -- 0.5%
18,405 Go Daddy Operating Co., LLC (GD Finance Co., Inc.),
Tranche B-1 Term Loan, 3.536% (LIBOR +
175 bps), 2/15/24 $ 18,447
98,750 SBA Senior Finance II LLC, Initial Term Loan, 3.79%
(LIBOR + 200 bps), 4/11/25 99,100
97,992 Sprint Communications, Inc., Initial Term Loan, 4.313%
(LIBOR + 250 bps), 2/2/24 97,052
-----------
Total Telecommunications $ 214,599
-----------------------------------------------------------------------------------------------------------------------
Utilities -- 0.2%
67,562 Vistra Operations Co. LLC (fka Tex Operations Co. LLC),
Initial Term Loan, 3.786% (LIBOR + 200 bps), 8/4/23 $ 67,861
-----------
Total Utilities $ 67,861
-----------------------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE LOAN INTERESTS
(Cost $2,589,051) $ 2,523,737
-----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS --
20.2% of Net Assets
18,276 Fannie Mae, 3.0%, 5/1/31 $ 18,849
35,322 Fannie Mae, 3.0%, 2/1/43 36,436
23,955 Fannie Mae, 3.0%, 3/1/43 24,711
22,917 Fannie Mae, 3.0%, 5/1/43 23,653
26,173 Fannie Mae, 3.0%, 5/1/43 26,999
26,050 Fannie Mae, 3.0%, 6/1/45 26,887
19,879 Fannie Mae, 3.0%, 9/1/46 20,416
38,905 Fannie Mae, 3.0%, 10/1/46 39,948
55,246 Fannie Mae, 3.0%, 11/1/46 56,715
38,468 Fannie Mae, 3.0%, 1/1/47 39,824
30,621 Fannie Mae, 3.0%, 3/1/47 31,417
38,793 Fannie Mae, 3.5%, 6/1/42 40,762
101,417 Fannie Mae, 3.5%, 9/1/42 106,441
92,885 Fannie Mae, 3.5%, 5/1/44 96,304
27,309 Fannie Mae, 3.5%, 2/1/45 28,945
71,118 Fannie Mae, 3.5%, 2/1/45 75,694
17,549 Fannie Mae, 3.5%, 6/1/45 18,340
13,313 Fannie Mae, 3.5%, 8/1/45 13,812
34,231 Fannie Mae, 3.5%, 8/1/45 35,691
17,660 Fannie Mae, 3.5%, 9/1/45 18,797
52,876 Fannie Mae, 3.5%, 9/1/45 55,002
79,323 Fannie Mae, 3.5%, 10/1/45 82,887
17,032 Fannie Mae, 3.5%, 1/1/46 17,753
18,428 Fannie Mae, 3.5%, 7/1/46 19,163
30,520 Fannie Mae, 3.5%, 9/1/46 31,773
58,521 Fannie Mae, 3.5%, 12/1/46 60,837
29,955 Fannie Mae, 3.5%, 1/1/47 31,305
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
37,420 Fannie Mae, 3.5%, 1/1/47 $ 39,493
39,133 Fannie Mae, 3.5%, 1/1/47 40,665
31,020 Fannie Mae, 4.0%, 10/1/40 33,598
62,176 Fannie Mae, 4.0%, 1/1/42 66,453
12,280 Fannie Mae, 4.0%, 2/1/42 13,118
22,123 Fannie Mae, 4.0%, 5/1/42 23,606
34,216 Fannie Mae, 4.0%, 11/1/43 36,726
13,630 Fannie Mae, 4.0%, 10/1/44 14,407
63,218 Fannie Mae, 4.0%, 11/1/44 66,826
50,254 Fannie Mae, 4.0%, 10/1/45 53,171
40,456 Fannie Mae, 4.0%, 12/1/45 42,764
29,633 Fannie Mae, 4.0%, 6/1/46 31,247
28,365 Fannie Mae, 4.0%, 8/1/46 29,838
16,548 Fannie Mae, 4.0%, 11/1/46 17,412
19,768 Fannie Mae, 4.0%, 11/1/46 20,738
121,080 Fannie Mae, 4.0%, 1/1/47 127,193
19,256 Fannie Mae, 4.0%, 4/1/47 20,431
30,377 Fannie Mae, 4.0%, 4/1/47 31,888
32,600 Fannie Mae, 4.0%, 4/1/47 34,570
19,692 Fannie Mae, 4.0%, 6/1/47 20,672
60,844 Fannie Mae, 4.0%, 6/1/47 63,848
16,797 Fannie Mae, 4.0%, 7/1/47 17,627
30,905 Fannie Mae, 4.0%, 8/1/47 32,423
38,870 Fannie Mae, 4.0%, 12/1/47 40,717
127,158 Fannie Mae, 4.0%, 4/1/48 132,941
55,000 Fannie Mae, 4.0%, 11/1/48 (TBA) 57,075
7,906 Fannie Mae, 4.0%, 9/1/49 8,228
10,666 Fannie Mae, 4.5%, 4/1/41 11,564
8,149 Fannie Mae, 4.5%, 5/1/41 8,914
22,745 Fannie Mae, 4.5%, 11/1/43 24,465
26,170 Fannie Mae, 4.5%, 2/1/44 28,113
32,678 Fannie Mae, 4.5%, 2/1/44 35,106
24,056 Fannie Mae, 4.5%, 5/1/46 25,647
25,151 Fannie Mae, 4.5%, 2/1/47 26,558
24,788 Fannie Mae, 5.0%, 8/1/31 26,511
11,730 Fannie Mae, 5.0%, 6/1/40 12,955
7,517 Fannie Mae, 5.5%, 10/1/35 8,419
10,809 Federal Home Loan Mortgage Corp., 3.0%, 9/1/42 11,163
13,063 Federal Home Loan Mortgage Corp., 3.0%, 1/1/43 13,491
25,660 Federal Home Loan Mortgage Corp., 3.0%, 2/1/43 26,502
29,456 Federal Home Loan Mortgage Corp., 3.0%, 4/1/43 30,403
49,179 Federal Home Loan Mortgage Corp., 3.0%, 4/1/43 50,791
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 31
Schedule of Investments | 10/31/19 (continued)
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
13,614 Federal Home Loan Mortgage Corp., 3.0%, 5/1/43 $ 14,049
20,048 Federal Home Loan Mortgage Corp., 3.0%, 9/1/46 20,593
19,967 Federal Home Loan Mortgage Corp., 3.0%, 12/1/46 20,476
58,539 Federal Home Loan Mortgage Corp., 3.0%, 2/1/47 60,095
13,769 Federal Home Loan Mortgage Corp., 3.5%, 10/1/42 14,476
72,265 Federal Home Loan Mortgage Corp., 3.5%, 6/1/45 76,318
90,238 Federal Home Loan Mortgage Corp., 3.5%, 11/1/45 94,346
14,763 Federal Home Loan Mortgage Corp., 3.5%, 3/1/46 15,373
64,885 Federal Home Loan Mortgage Corp., 3.5%, 7/1/46 68,993
27,280 Federal Home Loan Mortgage Corp., 3.5%, 8/1/46 28,699
75,063 Federal Home Loan Mortgage Corp., 3.5%, 8/1/46 78,804
90,202 Federal Home Loan Mortgage Corp., 3.5%, 8/1/46 95,261
57,001 Federal Home Loan Mortgage Corp., 3.5%, 12/1/46 60,198
85,360 Federal Home Loan Mortgage Corp., 4.0%, 1/1/44 90,655
140,754 Federal Home Loan Mortgage Corp., 4.0%, 5/1/44 148,882
10,375 Federal Home Loan Mortgage Corp., 4.0%, 12/1/44 10,974
17,292 Federal Home Loan Mortgage Corp., 4.0%, 1/1/46 18,281
26,142 Federal Home Loan Mortgage Corp., 4.0%, 2/1/46 27,622
18,282 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 19,302
18,386 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 19,508
34,627 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 36,352
39,415 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 41,840
79,775 Federal Home Loan Mortgage Corp., 4.0%, 4/1/47 83,812
93,231 Federal Home Loan Mortgage Corp., 4.0%, 5/1/47 97,968
171,002 Federal Home Loan Mortgage Corp., 4.0%, 10/1/47 179,502
122,431 Federal Home Loan Mortgage Corp., 4.0%, 12/1/47 128,975
112,339 Federal Home Loan Mortgage Corp., 4.0%, 7/1/49 116,635
38,388 Federal Home Loan Mortgage Corp., 4.0%, 9/1/49 39,909
33,025 Federal Home Loan Mortgage Corp., 4.5%, 6/1/41 35,829
51,500 Federal Home Loan Mortgage Corp., 4.5%, 5/1/47 54,528
17,433 Federal Home Loan Mortgage Corp., 4.5%, 7/1/49 18,401
16,371 Federal Home Loan Mortgage Corp., 5.0%, 9/1/38 18,079
19,050 Federal Home Loan Mortgage Corp., 5.0%, 10/1/38 21,040
2,930 Federal Home Loan Mortgage Corp., 5.0%, 5/1/39 3,232
5,780 Federal Home Loan Mortgage Corp., 5.0%, 12/1/39 6,389
10,075 Federal Home Loan Mortgage Corp., 6.0%, 8/1/37 11,237
14,222 Federal Home Loan Mortgage Corp., 6.5%, 1/1/38 16,868
23,364 Federal Home Loan Mortgage Corp., 6.5%, 4/1/38 26,338
41,806 Government National Mortgage Association I,
3.5%, 11/15/41 44,109
7,986 Government National Mortgage Association I,
3.5%, 10/15/42 8,425
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
-----------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
26,773 Government National Mortgage Association I,
3.5%, 8/15/46 $ 28,012
29,318 Government National Mortgage Association I,
4.0%, 4/15/45 31,576
39,520 Government National Mortgage Association I,
4.0%, 6/15/45 42,571
22,407 Government National Mortgage Association I,
4.5%, 1/15/40 24,532
17,777 Government National Mortgage Association I,
4.5%, 9/15/40 19,347
7,588 Government National Mortgage Association I,
4.5%, 10/15/40 8,254
16,069 Government National Mortgage Association I,
4.5%, 7/15/41 17,481
27,240 Government National Mortgage Association II,
3.0%, 9/20/46 28,187
24,192 Government National Mortgage Association II,
4.5%, 9/20/41 26,159
53,352 Government National Mortgage Association II,
4.5%, 9/20/44 56,156
15,263 Government National Mortgage Association II,
4.5%, 10/20/44 16,366
32,362 Government National Mortgage Association II,
4.5%, 11/20/44 34,697
109,912 Government National Mortgage Association II,
4.5%, 4/20/48 115,917
1,400,000(f) U.S. Treasury Bills, 11/19/19 1,398,932
207,000 U.S. Treasury Bonds, 3.0%, 2/15/49 244,034
393,247 U.S. Treasury Inflation Indexed Bonds, 0.875%, 2/15/47 425,329
243,626 U.S. Treasury Inflation Indexed Bonds, 1.0%, 2/15/46 270,450
431,766 U.S. Treasury Inflation Indexed Bonds, 1.0%, 2/15/48 482,360
235,518 U.S. Treasury Inflation Indexed Bonds, 1.0%, 2/15/49 264,818
107,000 U.S. Treasury Notes, 2.625%, 2/15/29 115,685
-----------------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $7,882,511) $ 8,160,874
-----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 33
Schedule of Investments | 10/31/19 (continued)
------------------------------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Notional Price Date Value
------------------------------------------------------------------------------------------------------------------------
OVER THE COUNTER (OTC) CURRENCY PUT
OPTIONS PURCHASED -- 0.1%
1,230,000 Put EUR Bank of
Call USD America NA EUR 16,929 EUR 1.13 1/9/20 $ 19,120
825,000 Put EUR Bank of
Call USD America NA EUR 11,993 EUR 1.12 1/17/20 8,112
------------
$ 27,232
------------------------------------------------------------------------------------------------------------------------
TOTAL OVER THE COUNTER (OTC) CURRENCY PUT
OPTIONS PURCHASED
(Premiums paid $28,921) $ 27,232
------------------------------------------------------------------------------------------------------------------------
TOTAL OPTIONS PURCHASED
(Premiums paid $28,921) $ 27,232
------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS -- 93.5%
(Cost $37,205,175) $37,709,125
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Net Change in Net
Realized Unrealized
Dividend Gain Appreciation
Shares Income (Loss) (Depreciation)
------------------------------------------------------------------------------------------------------------------------
AFFILIATED ISSUER -- 2.5%
CLOSED-END FUND -- 2.5% of Net Assets
114,057(m) Pioneer ILS
Interval Fund $94,988 $(94,990) $(104,976) $ 1,004,846
------------------------------------------------------------------------------------------------------------------------
TOTAL CLOSED-END FUND
(Cost $1,108,478) $ 1,004,846
------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED ISSUER -- 2.5%
(Cost $1,108,478) $ 1,004,846
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Notional Price Date
------------------------------------------------------------------------------------------------------------------------
OVER THE COUNTER (OTC) CURRENCY CALL
OPTIONS WRITTEN -- (0.0)%+
(1,230,000) Call EUR Bank of
Put USD America NA EUR 16,929 EUR 1.25 1/9/20 $ (2)
(825,000) Call EUR Bank of
Put USD America NA EUR 11,993 EUR 1.23 1/17/20 (14)
------------
$ (16)
------------------------------------------------------------------------------------------------------------------------
TOTAL OVER THE COUNTER (OTC) CURRENCY CALL
OPTIONS WRITTEN
(Premiums received $(28,921)) $ (16)
------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 4.0% $ 1,632,378
------------------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $40,346,333
========================================================================================================================
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
bps Basis Points.
EUAMDB Euribor ICE Swap Rate.
EURIBOR Euro Interbank Offered Rate.
FREMF Freddie Mac Multifamily Fixed-Rate Mortgage Loans.
LIBOR London Interbank Offered Rate.
REIT Real Estate Investment Trust.
REMICS Real Estate Mortgage Investment Conduits.
SOFR Secured Overnight Financing Rate.
(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, 2019, the value of these securities
amounted to $7,192,312, or 17.8% of net assets.
(TBA) "To Be Announced" Securities.
+ 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, 2019.
+ Security that used significant unobservable inputs to determine its
value.
^ Security is valued using fair value methods (other than supplied by
independent pricing services).
(a) Security is perpetual in nature and has no stated maturity date.
(b) Floating rate note. Coupon rate, reference index and spread are
shown at October 31, 2019.
(c) The interest rate is subject to change periodically. The interest
rate and/or reference index and spread is shown at October 31, 2019.
(d) 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, 2019.
(e) Security represents the interest-only portion payments on a pool of
underlying mortgages or mortgage-backed securities.
(f) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(g) Securities are restricted as to resale.
(h) Issued as preference shares. (i) Non-income producing security.
(j) Issued as participation notes.
(k) Consists of Revenue Bonds unless otherwise indicated.
(l) This term loan will settle after October 31, 2019, at which time the
interest rate will be determined.
(m) 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.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 35
Schedule of Investments | 10/31/19 (continued)
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
--------------------------------------------------------------------------------------------------------------
Unrealized
Currency Currency Settlement Appreciation
Purchased In Exchange for Sold Deliver Counterparty Date (Depreciation)
--------------------------------------------------------------------------------------------------------------
SEK 7,564,198 USD (779,164) Bank of America NA 11/26/19 $ 4,551
TRY 1,147,000 ZAR (3,038,624) Bank of America NA 12/3/19 (1,732)
CHF 410,894 USD (416,388) Citibank NA 11/26/19 596
CZK 11,566,647 USD (491,626) Citibank NA 11/26/19 13,717
EUR 35,144 USD (38,952) Citibank NA 11/27/19 274
USD 110,843 EUR (100,000) Citibank NA 11/27/19 (770)
CAD 1,064,000 USD (799,736) Goldman Sachs 12/3/19 8,515
International
EUR 379,825 GBP (337,161) Goldman Sachs 11/29/19 (12,592)
International
JPY 86,738,091 TWD (25,077,419) Goldman Sachs 12/3/19 (18,360)
International
COP 639,775,000 USD (186,377) HSBC Bank USA NA 12/17/19 2,585
INR 16,386,000 USD (229,979) HSBC Bank USA NA 12/17/19 (96)
USD 440,128 MXN (8,488,000) HSBC Bank USA NA 12/18/19 1,676
USD 291,752 GBP (235,588) JPMorgan Chase 11/26/19 (13,275)
Bank NA
AUD 1,196,495 NZD (1,292,536) State Street Bank 12/19/19 (4,247)
& Trust Co.
EUR 4,796,153 USD (5,274,515) State Street Bank 11/27/19 78,596
& Trust Co.
JPY 453,009,838 USD (4,169,664) State Street Bank 12/18/19 37,967
& Trust Co.
NOK 5,314,802 USD (587,725) State Street Bank 11/26/19 (10,360)
& Trust Co.
USD 555,915 EUR (500,000) State Street Bank 11/27/19 (2,148)
& Trust Co.
USD 151,237 MXN (2,904,682) The Bank of 12/18/19 1,194
New York Mellon
USD 404,867 SEK (3,981,828) The Bank of 11/26/19 (7,684)
New York Mellon
--------------------------------------------------------------------------------------------------------------
TOTAL FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS $ 78,407
==============================================================================================================
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
FUTURES CONTRACTS
FIXED INCOME INDEX FUTURES CONTRACTS
----------------------------------------------------------------------------------------
Number of
Contracts Expiration Notional Market Unrealized
Long Description Date Amount Value (Depreciation)
----------------------------------------------------------------------------------------
11 Australia 12/16/19 $1,123,528 $1,104,605 $ (18,923)
10-Year Bond
6 Canada 12/18/19 658,610 647,353 (11,257)
10-Year Bond
5 Euro BUXL 12/6/19 1,230,910 1,169,950 (60,960)
30 Year Bond
4 Euro-Bund 12/6/19 783,325 765,672 (17,653)
1 U.S. Ultra Bond 12/19/19 198,313 189,750 (8,563)
----------------------------------------------------------------------------------------
$3,994,686 $3,877,330 $(117,356)
========================================================================================
----------------------------------------------------------------------------------------
Number of
Contracts Expiration Notional Market Unrealized
Short Description Date Amount Value Appreciation
----------------------------------------------------------------------------------------
17 Euro-Bobl 12/6/19 $ 2,586,082 $ 2,550,464 $ 35,618
1 U.S. 5 Year Note 12/31/19 120,023 119,203 820
24 U.S. 10 Year Note 12/19/19 3,165,000 3,127,125 37,875
25 U.S. 10 Year Ultra 12/19/19 3,592,492 3,552,734 39,758
6 U.S. Long Bond 12/19/19 995,250 968,250 27,000
----------------------------------------------------------------------------------------
$10,458,847 $10,317,776 $141,071
----------------------------------------------------------------------------------------
TOTAL FUTURES CONTRACTS $(6,464,161) $(6,440,446) $ 23,715
========================================================================================
Principal amounts are denominated in U.S. dollars ("USD") unless otherwise
noted.
ARS -- Argentine Peso
AUD -- Australian Dollar
CAD -- Canadian Dollar
CHF -- Swiss Franc
COP -- Colombian Peso
CZK -- Czech Koruna
DOP -- Dominican Republic Peso
EGP -- Egyptian Pound
EUR -- Euro
GBP -- Great British Pound
IDR -- Indonesian Rupiah
INR -- Indian Rupee
JPY -- Japanese Yen
MXN -- Mexican Peso
NOK -- Norwegian Krone
NZD -- New Zealand Dollar
RUB -- Russian Ruble
SEK -- Swedish Krona
TRY -- Turkish Lira
TWD -- Taiwan Dollar
UYU -- Uruguayan Peso
ZAR -- South African Rand
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 37
Schedule of Investments | 10/31/19 (continued)
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 2019, were as follows:
----------------------------------------------------------------------------------------
Purchases Sales
----------------------------------------------------------------------------------------
Long-Term U.S. Government $1,201,478 $ 2,464,935
Other Long-Term Securities $5,315,419 $15,941,424
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, 2019, the Fund did not engage in any cross
trade activity.
At October 31, 2019, the net unrealized appreciation on investments based on
cost for federal tax purposes of $38,438,378 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 2,161,137
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (1,783,438)
-----------
Net unrealized appreciation $ 377,699
===========
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.
38 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
The following is a summary of the inputs used as of October 31, 2019, in
valuing the Fund's investments:
------------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------------------------
Convertible Preferred Stock $143,402 $ -- $ -- $ 143,402
Asset Backed Securities -- 173,26 -- 173,261
Collateralized Mortgage Obligations -- 2,575,401 100,000 2,675,401
Corporate Bonds -- 14,557,916 -- 14,557,916
Foreign Government Bonds -- 9,341,734 -- 9,341,734
Insurance-Linked Securities
Reinsurance Sidecars
Multiperil -- Worldwide -- -- 50,918 50,918
Municipal Bonds -- 54,650 -- 54,650
Senior Secured Floating Rate Loan Interests -- 2,523,737 -- 2,523,737
U.S. Government and Agency Obligations -- 8,160,874 -- 8,160,874
Over The Counter (OTC) Currency
Put Option Purchased -- 27,232 -- 27,232
Affiliated Closed-End Fund -- 1,004,846 -- 1,004,846
------------------------------------------------------------------------------------------------------------
Total Investments in Securities $143,402 $38,419,651 $150,918 $38,713,971
============================================================================================================
Other Financial Instruments
Over The Counter (OTC) Currency
Call Option Written $ -- $ (16) $ -- $ (16)
Net unrealized appreciation on forward
foreign currency exchange contracts -- 78,407 -- 78,407
Net unrealized appreciation
on futures contracts 23,715 -- -- 23,715
------------------------------------------------------------------------------------------------------------
Total Other Financial Instruments $ 23,715 $ 78,391 $ -- $ 102,106
============================================================================================================
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
------------------------------------------------------------------------------------------------------
Collateralized Insurance-
Mortgage Linked
Obligations Securities Total
------------------------------------------------------------------------------------------------------
Balance as of 10/31/18 $ -- $ 87,326 $ 87,326
Realized gain (loss)(1) -- (114) (114)
Change in unrealized appreciation (depreciation)(2) (2,250) (12,593) (14,843)
Accrued discounts/premiums -- -- --
Purchases -- 40,962 40,962
Sales -- (64,663) (64,663)
Transfer in to Level 3* 102,250 -- 102,250
Transfer out of Level 3* -- --
------------------------------------------------------------------------------------------------------
Balance as of 10/31/19 $100,000 $ 50,918 $150,918
======================================================================================================
(1) Realized gain (loss) on these securities is included in the 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. During the
year ended October 31, 2019, an investment having a value of $102,250 was
transferred from Level 2 to Level 3, due to valuing the security using
unobservable inputs. For the year ended October 31, 2019, there were no
other 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, 2019: $(16,900)
--------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 39
Statement of Assets and Liabilities | 10/31/19
ASSETS:
Investments in unaffiliated issuers, at value (cost $37,205,175) $37,709,125
Investments in affiliated issuers, at value (cost $1,108,478) 1,004,846
Cash 454,877
Foreign currencies, at value (cost $615,921) 627,175
Futures collateral 133,256
Due from broker for futures 134,936
Net unrealized appreciation on forward foreign currency exchange contracts 78,407
Net unrealized appreciation on futures contracts 23,715
Receivables --
Investment securities sold 233,187
Fund shares sold 15,498
Interest 335,548
Due from the Adviser 38,507
Other assets 29,191
----------------------------------------------------------------------------------------------------
Total assets $40,818,268
====================================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 178,530
Fund shares repurchased 49,510
Distributions 53,564
Trustees' fees 368
Administrative fees 16,370
Professional fees 52,068
Transfer agent fees 25,450
Pricing fees 11,636
Custodian fees 14,104
Variation margin for futures contracts 41,886
Written options outstanding (net premiums received $(28,921)) 16
Due to affiliates 15,690
Accrued expenses 12,743
----------------------------------------------------------------------------------------------------
Total liabilities $ 471,935
====================================================================================================
NET ASSETS:
Paid-in capital $40,464,780
Distributable earnings (loss) (118,447)
----------------------------------------------------------------------------------------------------
Net assets $40,346,333
====================================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $18,445,149/1,787,563 shares) $ 10.32
Class C (based on $8,435,564/815,344 shares) $ 10.35
Class Y (based on $13,465,620/1,293,869 shares) $ 10.41
MAXIMUM OFFERING PRICE PER SHARE:
Class A (based on $10.32 net asset value per share/100%-4.50%
maximum sales charge) $ 10.81
====================================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
Statement of Operations
For the Year Ended 10/31/19
INVESTMENT INCOME:
Interest from unaffiliated issuers (net of foreign taxes
withheld $1,074) $1,523,283
Dividends from unaffiliated issuers 14,892
Dividends from affiliated issuers 94,988
------------------------------------------------------------------------------------------------------------
Total investment income $ 1,633,163
------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 214,023
Administrative expense 75,354
Transfer agent fees
Class A 110,810
Class C 3,836
Class Y 1,300
Distribution fees
Class A 46,484
Class C 87,088
Shareowner communications expense 5,547
Custodian fees 44,533
Registration fees 56,670
Professional fees 67,558
Printing expense 71,250
Pricing fees 42,928
Trustees' fees 7,139
Insurance expense 828
Miscellaneous 25,671
------------------------------------------------------------------------------------------------------------
Total expenses $ 861,019
Less fees waived and expenses reimbursed
by the Adviser (399,032)
------------------------------------------------------------------------------------------------------------
Net expenses $ 461,987
------------------------------------------------------------------------------------------------------------
Net investment income $ 1,171,176
------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $ (635,706)
Investments in affiliated issuers (94,990)
Written options 37,293
Forward foreign currency exchange contracts (783,590)
Futures contracts (167,146)
Swap contracts 52,234
Other assets and liabilities denominated in foreign currencies (46,782) $(1,638,687)
------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $2,769,641
Investments in affiliated issuers (104,976)
Written options (1,052)
Forward foreign currency exchange contracts 298,596
Futures contracts (81,011)
Swap contracts (2,317)
Other assets and liabilities denominated in foreign currencies 19,619 $ 2,898,500
------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ 1,259,813
------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 2,430,989
============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 41
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/19 10/31/18
----------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 1,171,176 $ 1,416,690
Net realized gain (loss) on investments (1,638,687) (1,518,415)
Change in net unrealized appreciation (depreciation)
on investments 2,898,500 (3,298,829)
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 2,430,989 $ (3,400,554)
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Class A ($0.05 and $0.05 per share, respectively) $ (102,417) $ (114,781)
Class C ($0.02 and $0.04 per share, respectively) (21,637) (35,907)
Class Y ($0.08 and $0.06 per share, respectively) (139,987) (78,523)
Tax return of capital:
Class A ($0.21 and $0.19 per share, respectively) (376,399) (469,180)
Class C ($0.16 and $0.11 per share, respectively) (131,529) (102,276)
Class Y ($0.21 and $0.21 per share, respectively) (293,323) (568,688)
----------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (1,065,292) $ (1,369,355)
----------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales of shares $ 2,798,300 $ 78,877,441
Reinvestment of distributions 439,831 735,353
Cost of shares repurchased (13,187,825) (73,833,356)
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Fund
share transactions $ (9,949,694) $ 5,779,438
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (8,583,997) $ 1,009,529
----------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year $ 48,930,330 $ 47,920,801
----------------------------------------------------------------------------------------------------
End of year $ 40,346,333 $ 48,930,330
====================================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
-----------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/19 10/31/19 10/31/18 10/31/18
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------
Class A
Shares sold 157,779 $ 1,610,050 1,975,874 $ 21,070,396
Reinvestment of distributions 28,071 286,795 32,537 341,157
Less shares repurchased (293,315) (2,981,953) (2,286,732) (23,964,912)
-----------------------------------------------------------------------------------------------
Net decrease (107,465) $(1,085,108) (278,321) $ (2,553,359)
===============================================================================================
Class C
Shares sold 41,334 $ 417,087 782,897 $ 8,390,073
Reinvestment of distributions 3,892 39,874 4,183 44,184
Less shares repurchased (105,304) (1,074,273) (845,759) (9,033,239)
-----------------------------------------------------------------------------------------------
Net decrease (60,078) $ (617,312) (58,679) $ (598,982)
===============================================================================================
Class Y
Shares sold 74,904 $ 771,163 4,588,417 $ 49,416,972
Reinvestment of distributions 11,076 113,162 32,990 350,012
Less shares repurchased (894,957) (9,131,599) (3,874,730) (40,835,205)
-----------------------------------------------------------------------------------------------
Net increase
(decrease) (808,977) $(8,247,274) 746,677 $ 8,931,779
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 43
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/19 10/31/18 10/31/17 10/31/16* 10/31/15*
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.00 $ 10.70 $ 10.60 $ 10.40 $ 10.91
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) (a) $ 0.29 $ 0.24 $ 0.30 $ 0.31 $ 0.31
Net realized and unrealized gain (loss) on investments 0.29 (0.70) 0.09 0.25 (0.41)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.58 $ (0.46) $ 0.39 $ 0.56 $ (0.10)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.05) $ (0.05) $ (0.19) $ (0.28) $ (0.31)
Net realized gain -- -- (0.06) -- (0.10)
Tax return of capital (0.21) (0.19) (0.04) (0.08) --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.26) $ (0.24) $ (0.29) $ (0.36) $ (0.41)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.32 $ (0.70) $ 0.10 $ 0.20 $ (0.51)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.32 $ 10.00 $ 10.70 $ 10.60 $ 10.40
====================================================================================================================================
Total return (b) 5.89% (4.41)% 3.75% 5.59% (1.00)%
Ratio of net expenses to average net assets 1.00% 1.00% 1.00% 1.00% 1.00%
Ratio of net investment income (loss) to average net assets 2.80% 2.31% 2.83% 2.99% 2.87%
Portfolio turnover rate 16% 64% 70% 37% 34%
Net assets, end of period (in thousands) $18,445 $18,954 $23,252 $13,579 $12,737
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 2.29% 1.99% 2.13% 2.67% 2.67%
Net investment income (loss) to average net assets 1.51% 1.32% 1.70% 1.32% 1.20%
====================================================================================================================================
* 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.
44 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/19 10/31/18 10/31/17 10/31/16* 10/31/15*
------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $10.03 $10.73 $ 10.63 $10.43 $10.94
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) (a) $ 0.20 $ 0.16 $ 0.21 $ 0.22 $ 0.21
Net realized and unrealized gain (loss) on investments 0.30 (0.71) 0.09 0.25 (0.41)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.50 $(0.55) $ 0.30 $ 0.47 $(0.20)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $(0.02) $(0.04) $ (0.10) $(0.19) $(0.21)
Net realized gain -- -- (0.06) -- (0.10)
Tax return of capital (0.16) (0.11) (0.04) (0.08) --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.18) $(0.15) $ (0.20) $(0.27) $(0.31)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.32 $(0.70) $ 0.10 $ 0.20 $(0.51)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.35 $10.03 $ 10.73 $10.63 $10.43
====================================================================================================================================
Total return (b) 5.02% (5.19)% 2.88% 4.67% (1.87)%
Ratio of net expenses to average net assets 1.84% 1.81% 1.81% 1.90% 1.90%
Ratio of net investment income (loss) to average net assets 1.97% 1.53% 2.00% 2.10% 1.96%
Portfolio turnover rate 16% 64% 70% 37% 34%
Net assets, end of period (in thousands) $8,436 $8,781 $10,024 $4,370 $4,113
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 2.49% 2.14% 2.21% 2.53% 2.56%
Net investment income (loss) to average net assets 1.32% 1.20% 1.60% 1.46% 1.30%
====================================================================================================================================
* 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 | 10/31/19 45
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/19 10/31/18 10/31/17 10/31/16* 10/31/15*
------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.08 $ 10.80 $ 10.69 $ 10.50 $ 11.00
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) (a) $ 0.32 $ 0.26 $ 0.33 $ 0.34 $ 0.33
Net realized and unrealized gain (loss) on investments 0.30 (0.71) 0.10 0.24 (0.39)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.62 $ (0.45) $ 0.43 $ 0.58 $ (0.06)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.08) $ (0.06) $ (0.22) $ (0.31) $ (0.34)
Net realized gain -- -- (0.06) -- (0.10)
Tax return of capital (0.21) (0.21) (0.04) (0.08) --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.29) $ (0.27) $ (0.32) $ (0.39) $ (0.44)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.33 $ (0.72) $ 0.11 $ 0.19 $ (0.50)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.41 $ 10.08 $ 10.80 $ 10.69 $ 10.50
====================================================================================================================================
Total return (b) 6.23% (4.29)% 4.10% 5.73% (0.62)%
Ratio of net expenses to average net assets 0.75% 0.75% 0.75% 0.75% 0.75%
Ratio of net investment income (loss) to average net assets 3.08% 2.46% 3.10% 3.24% 3.12%
Portfolio turnover rate 16% 64% 70% 37% 34%
Net assets, end of period (in thousands) $13,466 $21,195 $14,645 $10,767 $12,178
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 1.41% 1.14% 1.17% 1.41% 1.39%
Net investment income (loss) to average net assets 2.42% 2.07% 2.68% 2.59% 2.48%
====================================================================================================================================
* 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.
46 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
Notes to Financial Statements | 10/31/19
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 four classes of shares designated as Class A, Class C, Class K,
and Class Y shares. Class K had not commenced operations as of October 31,
2019. 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 Securities and Exchange Commission ("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
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 47
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.
48 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
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.
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 | 10/31/19 49
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, 2019, one security was 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 0.25% of net assets. The value of this fair valued security
was $100,000.
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.
50 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
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.
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 exchange 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, 2019, 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
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 51
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, 2019, the Fund was permitted to carry forward indefinitely
$50,253 of short-term and $399,073 of long-term losses under the Regulated
Investment Company Modernization Act of 2010 without limitation.
The tax character of distributions paid during the years ended October 31,
2019 and October 31, 2018, were as follows:
--------------------------------------------------------------------------
2019 2018
--------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 264,042 $ --
Distribution in excess -- 229,211
Return of capital 801,250 1,140,144
--------------------------------------------------------------------------
Total $1,065,292 $1,369,355
==========================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at October 31, 2019:
--------------------------------------------------------------------------
2019
--------------------------------------------------------------------------
Distributable earnings:
Capital loss carryforward $(449,326)
Current year dividend payable (53,564)
Unrealized appreciation 384,443
--------------------------------------------------------------------------
Total $(118,447)
==========================================================================
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 and futures contracts, adjustments
relating to catastrophe bonds.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor earned $566 in underwriting commissions on the sale of Class A
shares during the year ended October 31, 2019.
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
52 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
paid to the Fund's transfer agent for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
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. 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.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or
other risks affecting those industries and sectors. The Fund's investments
in foreign markets and countries with limited developing markets may
subject the Fund to a greater degree of risk than investments in a
developed market. These risks include disruptive political or economic
conditions and the imposition of adverse governmental laws or currency
exchange restrictions.
The Fund 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 | 10/31/19 53
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 shareowner 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 ILS. The Fund could lose a portion or all of the
principal it has invested in an ILS, and the right to additional interest
or dividend 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 and/or dividend 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.
54 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
The Fund's investments in ILS may include event-linked bonds. ILS also 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,
2019, 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 | 10/31/19 55
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, 2019, was $66,269. Open purchased options at
October 31, 2019, 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,
2019, was $(6,412). Open written options contracts at October 31, 2019,
are listed in the Fund's Schedule of Investments.
K. Forward Foreign Currency Exchange Contracts
The Fund may enter into forward foreign currency exchange 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).
56 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
At October 31, 2019, the Fund had entered into various forward foreign
currency exchange 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 exchange
contract, the Fund may close out such contract by entering into an
offsetting contract.
The average market value of forward foreign currency exchange contracts
open during the year ended October 31, 2019, was $11,538,255. Open forward
foreign currency exchange contracts outstanding at October 31, 2019, 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, 2019, 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 futures contracts open during the year ended
October 31, 2019, was $(5,419,089). Open futures contracts outstanding at
October 31, 2019, are listed in the Schedule of Investments.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 57
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 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
58 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
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, 2019, 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, 2019, was $22,702. There were no open credit
default swap contracts at October 31, 2019.
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 Fund's average daily net
assets over $1 billion. Prior to October 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, 2019, the effective management fee
(excluding waivers and/or assumption of expenses) was equivalent to 0.44% of
the Fund's average daily net assets.
The Adviser has agreed to waive its management fee with respect to any portion
of the Fund's assets invested in Pioneer ILS Interval Fund, an affiliated fund
managed by the Adviser. For the year ended October 31, 2019, the Adviser waived
$26,095 in management fees with respect to the Fund, which is reflected on the
Statement of Operations as an expense waiver.
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 | 10/31/19 59
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. These
expense limitations are in effect through March 1, 2020. There can be no
assurance that the Adviser will extend the expense limitation agreement beyond
the date referred to above. Fees waived and expenses reimbursed during the year
ended October 31, 2019, are reflected on the Statement of Operations.
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
$14,622 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at October 31, 2019.
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, 2019, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareowner Communications:
--------------------------------------------------------------------------------
Class A $3,524
Class C 1,584
Class Y 439
--------------------------------------------------------------------------------
Total $5,547
================================================================================
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
60 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
distribution services with regard to Class C shares. Included in "Due to
affiliates" reflected on the Statement of Assets and Liabilities is $1,068 in
distribution fees payable to the Distributor at October 31, 2019.
In addition, redemptions of Class A and Class C 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, 2019, CDSCs in the amount of $112 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 credit
facility or the limits set for borrowing by the Fund's prospectus and the 1940
Act. Effective August 1, 2018, the Fund participates in a credit facility in
the amount of $250 million. Under such facility, depending on the type of loan,
interest on borrowings is payable at the London Interbank Offered Rate
("LIBOR") plus a credit spread. The Funds also 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, 2019, 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 of 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.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 61
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 set-off may be restricted or prohibited by the bankruptcy
or insolvency laws of the particular jurisdiction to which each specific ISDA
Master Agreement 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, 2019.
--------------------------------------------------------------------------------------------------------------
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 $ 31,783 $ (1,748) $ -- $ -- $ 30,035
Citibank NA 14,587 (770) -- -- 13,817
Goldman Sachs
International 8,515 (8,515) -- -- --
HSBC Bank USA NA 4,261 (96) -- -- 4,165
JPMorgan Chase
Bank NA -- -- -- -- --
State Street Bank &
Trust Co. 116,563 (16,755) -- -- 99,808
The Bank of
New York Mellon 1,194 (1,194) -- -- --
--------------------------------------------------------------------------------------------------------------
Total $176,903 $(29,078) $ -- $ -- $147,825
==============================================================================================================
62 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
--------------------------------------------------------------------------------------------------------------
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 $ 1,748 $ (1,748) $ -- $ -- $ --
Citibank NA 770 (770) -- -- --
Goldman Sachs
International 30,952 (8,515) -- -- 22,437
HSBC Bank USA NA 96 (96) -- -- --
JPMorgan Chase
Bank NA 13,275 -- -- -- 13,275
State Street Bank &
Trust Co. 16,755 (16,755) -- -- --
The Bank of
New York Mellon 7,684 (1,194) -- -- 6,490
--------------------------------------------------------------------------------------------------------------
Total $71,280 $(29,078) $ -- $ -- $42,202
==============================================================================================================
(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.
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.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 63
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at October 31,
2019, was as follows:
-----------------------------------------------------------------------------------------------
Foreign
Statement of Assets Interest Credit Exchange Equity Commodity
and Liabilities Rate Risk Risk Rate Risk Risk Risk
-----------------------------------------------------------------------------------------------
Assets
Options purchased* $ -- $ -- $ 27,232 $ -- $ --
Net unrealized appreciation
on forward foreign currency
exchange contracts -- -- 78,407 -- --
Net unrealized appreciation
on futures contracts 23,715 -- -- -- --
-----------------------------------------------------------------------------------------------
Total Value $23,715 $ -- $105,639 $ -- $ --
===============================================================================================
Liabilities
Written options outstanding $ -- $ -- $ 16 $ -- $ --
-----------------------------------------------------------------------------------------------
Total Value $ -- $ -- $ 16 $ -- $ --
===============================================================================================
* 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.
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, 2019, was as follows:
---------------------------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Operations Rate Risk Risk Rate Risk Risk Risk
---------------------------------------------------------------------------------------------------
Net realized gain (loss) on:
Options purchased* $ -- $ -- $ 6,837 $ -- $ --
Written options -- -- 37,293 -- --
Forward foreign currency
exchange contracts -- -- (783,590) -- --
Futures contracts (167,146) -- -- -- --
Swap contracts -- 52,234 -- -- --
---------------------------------------------------------------------------------------------------
Total Value $(167,146) $52,234 $(739,460) $ -- $ --
===================================================================================================
Change in net unrealized
appreciation
(depreciation) on:
Options purchased* $ -- $ -- $ (28,221) $ -- $ --
Written options -- -- (1,052) -- --
Forward foreign currency
exchange contracts -- -- 298,596 -- --
Futures contracts (81,011) -- -- -- --
Swap contracts -- (2,317) -- -- --
---------------------------------------------------------------------------------------------------
Total Value $ (81,011) $(2,317) $ 269,323 $ -- $ --
===================================================================================================
* 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.
64 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII and the Shareowners of
Pioneer Global Multisector Income Fund:
--------------------------------------------------------------------------------
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Pioneer
Global Multisector Income Fund (the "Fund") (one of the funds constituting
Pioneer Series Trust VII (the "Trust")), including the schedule of investments,
as of October 31, 2019, and the related statement of operations for the year
then ended, the statements of changes in net assets for each of the two years
in the period then ended, the financial highlights for each of the three years
in the period then ended and the related notes (collectively referred to as the
"financial statements"). The financial highlights for the periods ended 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 (one of the funds constituting Pioneer Series Trust VII)
at October 31, 2019, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and its financial highlights for each of the three years in the period then
ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust'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 Trust is not required to have,
nor were we engaged to perform, an audit of the Trust'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 Trust's internal
control over financial reporting. Accordingly, we express no such opinion.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 65
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, 2019, 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 20, 2019
66 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
Additional Information (unaudited)
The percentages of the Fund's ordinary income distributions that are exempt
from nonresident alien (NRA) tax withholding resulting from qualified interest
income was 89.33%.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 67
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 2019 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 2019,
July 2019 and September 2019. 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 2019, 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 2019, 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 2019.
At a meeting held on September 17, 2019, 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
68 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
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 | 10/31/19 69
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
considered that the expense ratio of the Fund's Class A shares for the most
recent fiscal year was in the second 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
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.
70 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
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 | 10/31/19 71
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 $1.6
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.
72 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
Trustees, Officers and Service Providers
Investment Adviser and Administrator
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
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/us. 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, except for Mr. Bock and Ms. Durnin, serve as Trustees of
each of the 45 U.S. registered investment portfolios for which Amundi Pioneer
serves as investment adviser (the "Pioneer Funds"). Mr. Bock and Ms. Durnin
serve as Trustees of 39 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 | 10/31/19 73
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
Chairman of the Board Serves until a successor present); Chairman (2008 - 2013) and Chief Financial Solutions,
and Trustee trustee is elected or earlier Executive Officer (2008 - 2012), Quadriserv, Inc. (investor
retirement or removal. Inc. (technology products for securities communications and
lending industry); and Senior Executive Vice securities processing
President, The Bank of New York (financial provider for financial
and securities services) (1986 - 2004) services industry)
(2009 - present);
Director, Quadriserv,
Inc. (2005 - 2013);
and Commissioner, New
Jersey State Civil
Service Commission
(2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
John E. Baumgardner, Jr. (68) Trustee since 2019. Of Counsel (2019 - present), Partner Chairman, The Lakeville
Trustee Serves until a successor (1983-2018), Sullivan & Cromwell LLP Journal Company,
trustee is elected or earlier (law firm). LLC, (privately-held
retirement or removal. community newspaper
group) (2015 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (75) Trustee since 2007. Managing Partner, Federal City Capital Director of New York
Trustee Serves until a successor Advisors (corporate advisory services Mortgage Trust
trustee is elected or earlier company) (1997 - 2004 and 2008 - present); (publicly-traded
retirement or removal. Interim Chief Executive Officer, Oxford mortgage REIT)
Analytica, Inc. (privately held research and (2004 - 2009, 2012 -
consulting company) (2010); Executive Vice present); Director
President and Chief Financial Officer, of The Swiss
I-trax, Inc. (publicly traded health care Helvetia Fund, Inc.
services company) (2004 - 2007); and (closed-end fund)
Executive Vice President and Chief Financial (2010 - 2017);
Officer, Pedestal Inc. (internet-based Director of Oxford
mortgage trading company) (2000 - 2002); Analytica, Inc.
Private Consultant (1995 - 1997); Managing (2008 - 2015); and
Director, Lehman Brothers (1992 - 1995); and Director of
Executive, The World Bank (1979 - 1992) Enterprise Community
Investment, Inc.
(privately-held
affordable housing
finance company)
(1985 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
74 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Diane Durnin (62) Trustee since 2019. Managing Director - Head of Product Strategy None
Trustee Serves until a successor and Development, BNY Mellon Investment
trustee is elected or earlier Management (2012-2018); Vice Chairman - The
retirement or removal. Dreyfus Corporation (2005 - 2018): Executive
Vice President Head of Product, BNY Mellon
Investment Management (2007-2012); Executive
Director- Product Strategy, Mellon Asset
Management (2005-2007); Executive Vice
President Head of Products, Marketing and
Client Service, Dreyfus Corporation
(2000-2005); and Senior Vice President
Strategic Product and Business Development,
Dreyfus Corporation (1994-2000)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (75) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon
Trustee Serves until a successor Economy, Harvard University (1972 - present) Institutional Funds
trustee is elected or earlier Investment Trust and
retirement or removal. Mellon Institutional
Funds Master Portfolio
(oversaw 17 portfolios
in fund complex)
(1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (72) Trustee since 2007. Founding Director, Vice-President and None
Trustee Serves until a successor Corporate Secretary, The Winthrop Group,
trustee is elected or earlier Inc. (consulting firm) (1982 - present);
retirement or removal. Desautels Faculty of Management, McGill
University (1999 - 2017); and Manager of
Research Operations and 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 from (healthcare workers union pension funds)
2014 - 2017). Serves until a (2001 - present); Vice President -
successor trustee is elected International Investments Group, American
or earlier retirement International Group, Inc. (insurance
or removal. company) (1993 - 2001); Vice President -
Corporate Finance and Treasury Group,
Citibank, N.A. (1980 - 1986 and 1990 -
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)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 75
Independent Trustees (continued)
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (71) Trustee since 2007. President and Chief Executive Officer, Director of New
Trustee Serves until a successor Metric Financial Inc. (formerly known as America High Income
trustee is elected or earlier Newbury Piret Company) (investment banking Fund, Inc. (closed-end
retirement or removal. firm) (1981 - present) investment company)
(2004 - present); and
Member, Board of
Governors, Investment
Company Institute
(2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (72) Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a successor (2012 - present); Executive Vice President,
trustee is elected or earlier BNY Mellon (financial and investment company
retirement or removal. services) (1969 - 2012); Director, BNY
International Financing Corp. (financial
services) (2002 - 2012); Director, Mellon
Overseas Investment Corp. (financial
services) (2009 - 2012); Director, Financial
Models (technology) (2005-2007); Director,
BNY Hamilton Funds, Ireland (offshore
investment companies) (2004-2007);
Chairman/Director, AIB/BNY Securities
Services, Ltd., Ireland (financial services)
(1999-2006); and Chairman, BNY Alternative
Investment Services, Inc. (financial
services) (2005-2007)
------------------------------------------------------------------------------------------------------------------------------------
76 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
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 (57)* Trustee since 2017. Director, CEO and President of Amundi None
Trustee, President and Serves until a successor Pioneer Asset Management USA, Inc. (since
Chief Executive Officer trustee is elected or earlier September 2014); Director, CEO and President
retirement or removal of Amundi Pioneer Asset Management, Inc.
(since September 2014); Director, CEO and
President of Amundi 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); Director of Institutional Business,
CEO of International, Eaton Vance Management
(2005 - 2010); and Director of Amundi USA,
Inc. (since 2017)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (61)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a successor 2008) and Chief Investment Officer, U.S.
trustee is elected or earlier (since 2010) of Amundi Pioneer Asset
retirement or removal Management USA, Inc.; Director and Executive
Vice President and Chief Investment Officer,
U.S. of Amundi Pioneer (since 2008);
Executive Vice President and Chief
Investment Officer, U.S. of Amundi Pioneer
Institutional Asset Management, Inc. (since
2009); Portfolio Manager of Amundi Pioneer
(since 1999); and Director of Amundi USA,
Inc. (since 2017)
------------------------------------------------------------------------------------------------------------------------------------
* 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.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 77
Fund Officers
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (54) Since 2007. Serves at the Vice President and Associate General Counsel None
Secretary and Chief discretion of the Board of Amundi Pioneer since January 2008;
Legal Officer Secretary and 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 (58) Since 2010. Serves at the Fund Governance Director of Amundi Pioneer None
Assistant Secretary discretion of the Board since December 2006 and Assistant Secretary
of all the 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 (56) Since 2010. Serves at the Senior Counsel of Amundi Pioneer since May None
Assistant Secretary discretion of the Board 2013 and Assistant Secretary of all the
Pioneer Funds since June 2010; and Counsel
of Amundi Pioneer from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (59) Since 2008. Serves at the Vice President - Fund Treasury of Amundi None
Treasurer and Chief discretion of the Board Pioneer; Treasurer of all of the Pioneer
Financial and Funds since March 2008; Deputy Treasurer of
Accounting Officer Amundi 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 (54) Since 2007. Serves at the Director - Fund Treasury of Amundi Pioneer; None
Assistant Treasurer discretion of the Board and Assistant Treasurer of all of the
Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (61) Since 2007. Serves at the Senior Manager - Fund Treasury of Amundi None
Assistant Treasurer discretion of the Board Pioneer; and Assistant Treasurer of all of
the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
78 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
John Malone (48) Since 2018. Serves at the Managing Director, Chief Compliance Officer None
Chief Compliance Officer discretion of the Board of Amundi Pioneer Asset Management; Amundi
Pioneer 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 (48) Since 2007. Serves at the Vice President - Amundi Pioneer Asset None
Anti-Money discretion of the Board Management; and Anti-Money Laundering
Laundering Officer Officer of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 79
This page is for your notes.
80 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
This page is for your notes.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 81
This page is for your notes.
82 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
This page is for your notes.
Pioneer Global Multisector Income Fund | Annual Report | 10/31/19 83
This page is for your notes.
84 Pioneer Global Multisector Income Fund | Annual Report | 10/31/19
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
FactFoneSM 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 219427
Kansas City, MO 64121-9427
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/us
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year as
an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form
N-PORT by visiting the Commission's web site at https://www.sec.gov.
[LOGO] Amundi Pioneer
================
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com/us
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
[C] 2019 Amundi Pioneer Asset Management 22520-11-1219
Pioneer Global High
Yield Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2019
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PGHYX
Class C PGYCX
Class Y GHYYX
Beginning in April 2021, as permitted by regulations adopted by the Securities
and Exchange Commission, paper copies of the Fund's shareholder reports like
this one will no longer be sent by mail, unless you specifically request paper
copies of the reports from the Fund or from your financial intermediary, such
as a broker-dealer, bank or insurance company. Instead, the reports will be
made available on the Fund's website, and you will be notified by mail each
time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. You may elect
to receive shareholder reports and other communications electronically by
contacting your financial intermediary or, if you invest directly with the
Fund, by calling 1-800-225-6292.
You may elect to receive all future reports in paper free of charge. If you
invest directly with the Fund, you can inform the Fund that you wish to
continue receiving paper copies of your shareholder reports by calling
1-800-225-6292. If you invest through a financial intermediary, you can contact
your financial intermediary to request that you continue to receive paper
copies of your shareholder reports. Your election to receive reports in paper
will apply to all funds held in your account if you invest through your
financial intermediary or all funds held within the Pioneer Fund complex if you
invest directly.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com/us
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 40
Notes to Financial Statements 47
Report of Independent Registered Public Accounting Firm 65
Additional Information 67
Approval of Investment Management Agreement 68
Trustees, Officers and Service Providers 73
Pioneer Global High Yield Fund | Annual Report | 10/31/19 1
President's Letter
Since 1928, active portfolio management based on in-depth, fundamental
research, has been the foundation of Amundi Pioneer's investment approach. We
believe an active management investment strategy is a prudent approach to
investing, especially during periods of market volatility, which can result
from any number of risk factors, including slow U.S. economic growth, rising
interest rates, and geopolitical factors. Of course, in today's global economy,
risk factors extend well beyond U.S. borders. In fact, it's not unusual for
political and economic issues on the international front to cause or contribute
to volatility in U.S. markets.
At Amundi Pioneer, each security under consideration is researched by our team
of experienced investment professionals, who communicate directly with the
management teams of those companies. At the end of this research process, if we
have conviction in a company's business model and management team, and regard
the security as a potentially solid investment opportunity, an Amundi Pioneer
portfolio manager makes an active decision to invest in that security. The
portfolio resulting from these decisions represents an expression of his or her
convictions, and strives to balance overall risk and return opportunity.
As an example, the Standard & Poor's 500 Index -- the predominant benchmark for
many U.S. Large-Cap Core Equity funds -- has 500 stocks. An Amundi Pioneer
portfolio manager chooses to invest in only those companies that he or she
believes can offer the most attractive opportunities to pursue the fund's
investment objective, thus potentially benefiting the fund's shareowners. This
process results in a portfolio that does not own all 500 stocks, but a much
narrower universe.
The same active decision to invest in a company is also applied when we decide
to sell a security, due to changing fundamentals, valuation concerns, or market
risks. We apply this active decision-making across all of our equity,
fixed-income, and global portfolios.
Today, as investors, we have many options. It is our view that active
management can serve shareholders well, not only when markets are thriving, but
also during periods of market volatility and uncertainty, thus making it a
compelling investment choice. As you consider the many choices today, 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.
2 Pioneer Global High Yield Fund | Annual Report | 10/31/19
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, 2019
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 | 10/31/19 3
Portfolio Management Discussion | 10/31/19
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, 2019. Mr. Feltus, Managing Director, Co-Director of High
Yield, and a portfolio manager at Amundi Pioneer Asset Management, Inc. (Amundi
Pioneer), is responsible for the day-to-day management of the Fund, along with
Kenneth J. Monaghan, Managing Director, Co-Director of High Yield, and a
portfolio manager at Amundi Pioneer, and Matthew Shulkin, a vice president and
a portfolio manager at Amundi Pioneer*.
Q How did the Fund perform during the 12-month period ended October 31,
2019?
A Pioneer Global High Yield Fund's Class A shares returned 6.27% at net
asset value during the 12-month period ended October 31, 2019, 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 7.77% and 8.32%, respectively. During
the same period, the average return of the 708 mutual funds in
Morningstar's High Yield Bond Funds category was 7.14%.
Q Could you please describe the investment environment in the global
high-yield market during the 12-month period ended October 31, 2019?
A Late 2018 saw investor sentiment for riskier assets weaken based on a
range of concerns, including U.S.-China trade tensions, softening economic
growth overseas, Italy's budget crisis, and geopolitical uncertainty. In
mid-December 2018, the U.S. Federal Reserve (Fed) met expectations and
raised its short-term rate target to the 2.25% to 2.50% range, its fourth
rate increase during calendar year 2018. The Fed also noted the potential
for two additional rate hikes in 2019. In combination with signs of
slowing global economic growth and yet another setback in negotiations to
avoid a chaotic exit by the United Kingdom from the European Union
("Brexit"), fears that the Fed would overshoot and raise interest rates
too much led to a spike in volatility in the market for riskier assets.
During December 2018, the 10-year Treasury yield declined from 3.01% to
2.69% as investors sought a "safe haven" from the market turmoil. The U.S.
high-yield market declined by 2.2% that month, and by 4.7% for the full
fourth quarter of 2018. Energy-related issues, in particular, were
battered, as crude oil prices plunged over the fourth quarter due to
concerns about a weaker demand outlook and higher-than-expected supply
driven in part by a loosening of U.S. sanctions on Iran.
* Mr. Shulkin became a portfolio manager on the Fund effective September 30,
2019.
4 Pioneer Global High Yield Fund | Annual Report | 10/31/19
Risk-oriented assets rebounded sharply in January of 2019, however, as the
Fed pivoted from its tightening stance on monetary policy to a
less-aggressive stance, indicating that it was leaning toward putting
future rate increases on pause, while also announcing an early end to its
balance-sheet reduction program.
At the same time, weak economic data out of the euro zone and China led to
renewed monetary accommodation from the European Central Bank and the
People's Bank of China, to go along with the Fed's actions. Modest
progress on trade matters, a firming in oil prices, and positive corporate
earnings reports also helped boost investor sentiment towards the credit
markets. While the overall pace of gains moderated and there was some
interim market volatility, credit-sensitive assets continued to outperform
less-risky investments as the 12-month-period progressed.
Over the final six months of the period, the Treasury yield curve
continued to move lower, the result of a mid-year shift to an easing of
monetary policy by the Fed and a "flight to safety" driven by geopolitical
headlines, including those pertaining to the U.S.-China trade dispute,
Brexit, and a September attack on Saudi Arabian oil facilities. Against a
backdrop of slowing economic growth and low inflation, the Fed cut
short-term interest rates by a quarter point three times before the end of
the period, on July 31, September 19, and October 30, bringing the
benchmark federal funds target rate down to a range of 1.50% to 1.75% . In
addition, the market appeared to expect two or three additional Fed
interest-rate cuts by the middle of 2020.
Returns in the fixed-income markets were strong overall for the full
12-month period, with performance supported by the notable decline in
Treasury yields and the rebound in credit-market sentiment over the first
quarter of 2019. The 12-month period was unusual in that returns for both
U.S. Treasuries and high-yield corporates ended up well into positive
territory.
Q What were the principal factors that influenced the Fund's performance
relative to the benchmark over the 12-month period ended October 31, 2019?
A The main detractor from the Fund's benchmark-relative performance over the
12-month period was duration positioning, as the portfolio was underweight
(or shorter in duration) versus the benchmark. (Duration is a measure of
the sensitivity of the price (the value of principal) of a fixed income
investment to a change in interest rates, expressed as a number of years.)
The portfolio's underweight to sovereign issues in Argentina, Ecuador,
Lebanon, and other emerging markets drove the Fund's below-benchmark
stance with respect to duration, which hurt relative returns in a
declining-rate environment.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 5
Also in the emerging markets, the Fund's exposure to mobile service
provider Digicell detracted from benchmark-relative returns as weak
earnings results raised concerns about the company's ability to refinance
its maturing debt. A position in Argentina-based electrical energy
wholesaler Stoneway Capital also constrained the Fund's relative
performance as market participants anticipated that a new government in
that country would implement polices to regulate energy markets.
Another individual portfolio holding that detracted from the Fund's
benchmark-relative performance was telecommunications firm Frontier
Communications. The default of Frontier's peer, Windstream, after that
company lost a court case related to a spin-off of assets, weighed on the
entire wireline communications segment of the market, and negatively
affected Frontier as well. In addition, Frontier has been evaluating a
restructuring of its debt, which raised market concerns and exerted
further downward pressure on the bond price. However, we view the current
bond price as significantly overstating the negative case for Frontier,
and have maintained the Fund's position.
A modest out-of-benchmark position in leveraged bank loans was another
detractor from the Fund's benchmark-relative results, as the loan asset
class underperformed high yield for the 12-month period. However, we
believe investments in bank loans and insurance-linked securities (ILS)
can help mitigate the effect of any rise in interest rates, while also
offering a relative lack of correlation to the performance of traditional
fixed-income investments. ILS are sponsored by property-and-casualty
insurers to help mitigate the risk of having to pay claims after a natural
disaster. The Fund's cash position also detracted from relative results
given strong high-yield market performance.
On the positive side, security selection results generally aided the
Fund's benchmark-relative performance over the 12-month period. Within the
U.S. high-yield corporate bond market, selection results within energy
more than offset the negative impact of a portfolio overweight to the
sector, which struggled in the wake of late-2018's sharp decline in crude
oil prices. In particular, a focus on holding the debt of lower-volatility
midstream and refining companies within the energy sector added notably to
the Fund's relative returns, led by an overweight to oil-and-gas
wholesaler Global Partners. Selection results were positive within health
care as well, highlighted by the Fund's exposure to the convertible bonds
of The Medicines Company, a pharmaceutical firm. Our investment thesis
that the company would eventually be acquired began to play out during the
12-month period, with management announcing plans for a sale and
6 Pioneer Global High Yield Fund | Annual Report | 10/31/19
reports of interested buyers. Portfolio exposure to housing-related
companies, given the backdrop of declining interest rates, also benefited
the Fund's benchmark-relative performance. In particular, two Fund holdings
-- homebuilder Beazer Homes and mortgage servicer Freedom Mortgage --
reported better-than-expected results supported by continued growth in the
housing market throughout the 12-month period.
Within emerging markets, stock selection results versus the benchmark were
supported by the portfolio's limited exposure to Argentina, Ecuador, and
Lebanon, even as the underweight to sovereign issues in those countries
helped drive the Fund's duration-related underperformance. In terms of
individual issues in the emerging markets, contributors to the Fund's
benchmark-relative returns were highlighted by a position in Russian
aluminum producer RUSAL, which saw its bond price rebound as the
implementation of U.S. sanctions was cancelled in December of 2018.
Other positive contributors to the Fund's benchmark-relative results
during the 12-month period included an underweight to Europe, as a
weakening euro relative to the U.S. dollar (USD) weighed on returns within
the region. In addition, European high-yield bonds underperformed U.S.
high yield due to low coupon rates, slowing economic growth, and volatile
political conditions. Finally, our hedging of the Fund's exposure to
issues denominated in the euro and British pound benefited relative
returns for the 12-month period.
Q Did the Fund have any investments in derivative securities during the
12-month period ended October 31, 2019?
A Yes, as part of our efforts to maintain an appropriate level of portfolio
liquidity, we utilized credit-default-swap indices to achieve a portion of
the Fund's U.S. high-yield exposure. In an environment of declining
Treasury yields, the instruments experienced positive returns but
detracted slightly from the Fund's results relative to the benchmark due
to their lack of duration and corresponding interest-rate sensitivity.
In addition, we invested the Fund in forward foreign currency contracts to
manage currency risk in the portfolio, and those instruments were a small
positive contributor to performance as the euro declined relative to the
USD over the 12-month period. We also used options on currencies as
another vehicle to hedge currency risk, and the options were another small
positive contributor to the Fund's return.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 7
Q Did the Fund's distributions** to shareholders change during the 12-month
period ended October 31, 2019?
A The Fund's distributions remained relatively stable during the 12-month
period, despite volatility in both Treasury yields and credit spreads.
(Credit spreads are commonly defined as the differences in yield between
Treasuries and other types of fixed-income securities with similar
maturities.)
Q What is your investment outlook?
A Our base scenario is for slow, but steady economic growth over the next
several quarters. Those who anticipate a near-term recession frequently
note that economic expansions do not last forever. From our perspective,
we are less concerned with the age of the economic expansion than with the
potential spread of global manufacturing weakness into the broader U.S.
economy. The length of any particular economic expansion is always
unpredictable, and many analysts have been claiming for years that we are
"in the 9th inning" of the current expansion. For the moment, however, the
risks to global economic growth from an uncontrolled trade war seem to
have receded.
The accommodative direction of many global central banks, including the
Fed, has lent support to the corporate credit market. Based on historical
averages, high-yield valuations are relatively rich, and while we do not
view current valuations as extreme, given our expectations for a continued
low default rate and a strong technical backdrop, we have a somewhat
cautious stance on adding credit risk to the portfolio. We see near-term
high-yield performance as most likely to be driven by the coupon component
of return as opposed to further spread tightening. In addition, under
conditions of tight spreads, investor jitters over any sign of recession,
and elevated geopolitical uncertainty, we expect to see continued
performance dispersion among individual issuers within the high-yield
asset class. As a result, we view security selection as having even
greater importance in the current environment.
In terms of positioning, in broad terms, the Fund is overweight versus the
benchmark to the U.S. market and continues to have a conservative stance
within high-yield corporates, with moderate exposure to floating-rate
issues in the form of bank loans and ILS. We view high-yield valuations in
Europe as somewhat inexpensive, but the Fund is essentially neutrally
positioned with respect to our long-term target for the region, given
currency risk, and
** Distributions are not guaranteed.
8 Pioneer Global High Yield Fund | Annual Report | 10/31/19
is underweight in Europe relative to the benchmark. The Fund is also
underweight to the emerging markets compared to the benchmark, with a
focus on less-interest-rate-sensitive corporates relative to sovereigns.
As always, we will utilize intensive research when picking the Fund's
investments, with a focus on the fundamentals and risk/reward profile of
each individual security and issuer.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 9
Please refer to the Schedule of Investments on pages 18-39 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 held by the
Fund will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities held by the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, and economic and political
conditions.
Prepayment risk is the chance that an issuer may exercise its right to repay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The Fund may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other
fixed-income securities. Mortgage-backed securities are also subject to
pre-payments.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund 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 | 10/31/19
Portfolio Summary | 10/31/19
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Corporate Bonds 77.3%
Foreign Government Bonds 8.6%
Insurance-Linked Securities 4.4%
U.S. Government and Agency Obligations 3.6%
Senior Secured Floating Rate Loan Interests 3.3%
Convertible Corporate Bonds 1.7%
Convertible Preferred Stocks 0.3%
Common Stocks 0.3%
Collateralized Mortgage Obligations 0.3%
Asset Backed Security 0.1%
Over The Counter (OTC) Currency Put Options Purchased 0.1%
Rights/Warrants 0.0%+
Over The Counter (OTC) Call Options Purchased 0.0%+
+ Amount rounds to less than 0.1%.
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of total investments based on country of domicile)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
United States 52.8%
Luxembourg 7.2%
Canada 4.7%
Bermuda 4.2%
Netherlands 3.2%
Argentina 3.1%
United Kingdom 2.8%
Cayman Islands 2.3%
Mexico 2.1%
Egypt 1.7%
Turkey 1.6%
Ireland 1.1%
Italy 0.9%
Other (individually less than 1%) 12.3%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investments)*
1. U.S. Treasury Bills, 11/5/19 2.00%
------------------------------------------------------------------------------------------------
2. Sprint Corp., 7.25%, 9/15/21 1.15
------------------------------------------------------------------------------------------------
3. Minerva Luxembourg S.A., 5.875%, 1/19/28 (144A) 1.03
------------------------------------------------------------------------------------------------
4. Nationstar Mortgage LLC/Nationstar Capital Corp., 6.5%, 6/1/22 1.03
------------------------------------------------------------------------------------------------
5. Platin 1426 GmbH, 5.375%, 6/15/23 (144A) 0.89
------------------------------------------------------------------------------------------------
6. Hidrovias International Finance S.a.r.l., 5.95%, 1/24/25 (144A) 0.85
------------------------------------------------------------------------------------------------
7. Taylor Morrison Communities , Inc., 5.875%, 6/15/27 (144A) 0.81
------------------------------------------------------------------------------------------------
8. Turkey Government International Bond, 3.25%, 3/23/23 0.81
------------------------------------------------------------------------------------------------
9. Financiera Independencia S.A.B de CV SOFOM ENR, 8.0%, 7/19/24 (144A) 0.78
------------------------------------------------------------------------------------------------
10. International Game Technology Plc, 2.375%, 4/15/28 (144A) 0.78
------------------------------------------------------------------------------------------------
* 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.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 11
Prices and Distributions | 10/31/19
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/19 10/31/18
--------------------------------------------------------------------------------
A $8.57 $8.51
--------------------------------------------------------------------------------
C $8.55 $8.49
--------------------------------------------------------------------------------
Y $8.41 $8.36
--------------------------------------------------------------------------------
Distributions per Share: 11/1/18-10/31/19
--------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Net Investment Short-Term Long-Term Tax Return
Class Income Capital Gains Capital Gains of Capital
------------------------------------------------------------------------------------------
A $0.4408 $ -- $ -- $0.0182
------------------------------------------------------------------------------------------
C $0.3738 $ -- $ -- $0.0182
------------------------------------------------------------------------------------------
Y $0.4558 $ -- $ -- $0.0163
------------------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bloomberg Barclays Global High Yield Index is an unmanaged index that
provides a broad-based measure of the global high-yield fixed-income markets.
The index represents the union of the Barclays U.S. High-Yield, Barclays
Pan-European High-Yield, Barclays U.S. Emerging Markets High-Yield, and
Barclays Pan-European Emerging Markets High-Yield Indices. The ICE BofA ML U.S.
High Yield Index is an unmanaged, commonly accepted measure of the performance
of high-yield securities. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The indices defined here pertain to the "Value of $10,000 Investment" and
"Value of $5 Million Investment" charts appearing on pages 13-15.
12 Pioneer Global High Yield Fund | Annual Report | 10/31/19
Performance Update | 10/31/19 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, 2019)
-------------------------------------------------------
BBG ICE
Barclays BofA
Net Public Global ML U.S.
Asset Offering High High
Value Price Yield Yield
Period (NAV) (POP) Index Index
-------------------------------------------------------
10 years 5.70% 5.22% 7.31% 7.69%
5 years 2.93 1.98 4.58 5.17
1 year 6.27 1.49 7.77 8.32
-------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2019,
as supplemented October 1, 2019)
-------------------------------------------------------
Gross Net
-------------------------------------------------------
1.17% 1.14%
-------------------------------------------------------
[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
10/09 $ 9,550 $10,000 $10,000
10/10 $11,571 $11,946 $11,926
10/11 $11,628 $12,362 $12,500
10/12 $13,010 $14,140 $14,147
10/13 $13,916 $15,476 $15,396
10/14 $14,395 $16,181 $16,297
10/15 $13,479 $15,849 $15,963
10/16 $14,441 $17,406 $17,585
10/17 $15,932 $19,154 $19,193
10/18 $15,647 $18,786 $19,358
10/19 $16,629 $20,246 $20,969
Call 1-800-225-6292 or visit www.amundipioneer.com/us 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 net expense ratio reflects the contractual expense limitation in effect
through March 1, 2021, 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 more current expense ratios.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 13
Performance Update | 10/31/19 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, 2019)
-------------------------------------------------------
BBG ICE
Barclays BofA
Global ML U.S.
High High
If If Yield Yield
Period Held Redeemed Index Index
-------------------------------------------------------
10 years 4.96% 4.96% 7.31% 7.69%
5 years 2.21 2.21 4.58 5.17
1 year 5.46 5.46 7.77 8.32
-------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2019,
as supplemented October 1, 2019)
-------------------------------------------------------
Gross
-------------------------------------------------------
1.90%
-------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Bloomberg Barclays ICE BofA
High Yield Global High ML U.S. High
Fund Yield Index Yield Index
10/09 $10,000 $10,000 $10,000
10/10 $12,043 $11,946 $11,926
10/11 $12,028 $12,362 $12,500
10/12 $13,372 $14,140 $14,147
10/13 $14,205 $15,476 $15,396
10/14 $14,553 $16,181 $16,297
10/15 $13,541 $15,849 $15,963
10/16 $14,407 $17,406 $17,585
10/17 $15,770 $19,154 $19,193
10/18 $15,392 $18,786 $19,358
10/19 $16,232 $20,246 $20,969
Call 1-800-225-6292 or visit www.amundipioneer.com/us 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 more current expense ratios.
14 Pioneer Global High Yield Fund | Annual Report | 10/31/19
Performance Update | 10/31/19 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, 2019)
-------------------------------------------------------
BBG ICE
Barclays BofA
Net Global ML U.S.
Asset High High
Value Yield Yield
Period (NAV) Index Index
-------------------------------------------------------
10 years 5.96% 7.31% 7.69%
5 years 3.19 4.58 5.17
1 year 6.43 7.77 8.32
-------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2019,
as supplemented October 1, 2019)
-------------------------------------------------------
Gross Net
-------------------------------------------------------
0.92% 0.90%
-------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global Bloomberg Barclays ICE BofA
High Yield Global High ML U.S. High
Fund Yield Index Yield Index
10/09 $5,000,000 $ 5,000,000 $ 5,000,000
10/10 $6,067,305 $ 5,972,844 $ 5,962,948
10/11 $6,118,593 $ 6,181,180 $ 6,249,950
10/12 $6,874,236 $ 7,069,964 $ 7,073,721
10/13 $7,374,236 $ 7,738,119 $ 7,698,116
10/14 $7,626,940 $ 8,090,451 $ 8,148,479
10/15 $7,163,520 $ 7,924,274 $ 7,981,302
10/16 $7,689,339 $ 8,703,249 $ 8,792,569
10/17 $8,504,866 $ 9,576,987 $ 9,596,278
10/18 $8,384,270 $ 9,392,959 $ 9,679,083
10/19 $8,923,563 $10,123,216 $10,484,548
Call 1-800-225-6292 or visit www.amundipioneer.com/us 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 in effect
through March 1, 2021, 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 more current expense ratios.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 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, 2019 through October 31, 2019.
---------------------------------------------------------------------------------------------------
Share Class A C Y
---------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 5/1/19
---------------------------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,020.75 $1,016.97 $1,020.91
on 10/31/19
---------------------------------------------------------------------------------------------------
Expenses Paid During Period* $6.37 $10.02 $4.89
---------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 1.97%,
and 0.96% 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 partial year period).
16 Pioneer Global High Yield Fund | Annual Report | 10/31/19
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, 2019 through October 31, 2019.
---------------------------------------------------------------------------------------------------
Share Class A C Y
---------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 5/1/19
---------------------------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,018.90 $1,015.27 $1,020.37
on 10/31/19
---------------------------------------------------------------------------------------------------
Expenses Paid During Period* $6.36 $10.01 $4.89
---------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 1.97%,
and 0.96% 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 partial year period).
Pioneer Global High Yield Fund | Annual Report | 10/31/19 17
Schedule of Investments | 10/31/19
-------------------------------------------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 97.2%
COMMON STOCKS -- 0.3% of Net Assets
Construction & Engineering -- 0.0%+
6,013,974(a) Abengoa SA, Class B $ 65,012
------------
Total Construction & Engineering $ 65,012
-------------------------------------------------------------------------------------------------------------------------------
Household Durables -- 0.0%+
1,443,476(a) Desarrolladora Homex SAB de CV $ 6,232
------------
Total Household Durables $ 6,232
-------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.3%
Amplify Energy Corp. $ 181
5,735,146+^(a) Ascent CNR Corp. 860,272
------------
Total Oil, Gas & Consumable Fuels $ 860,453
-------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products -- 0.0%+
459,481^ Emerald Plantation Holdings, Ltd. $ 18,379
------------
Total Paper & Forest Products $ 18,379
-------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $4,810,205) $ 950,076
-------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 0.3%
of Net Assets
Banks -- 0.3%
650(b) Wells Fargo & Co., 7.5% $ 981,175
------------
Total Banks $ 981,175
-------------------------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $830,680) $ 981,175
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($)
-------------------------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITY -- 0.2%
of Net Assets
450,000 InSite Issuer LLC, Series 2016-1A, Class C, 6.414%,
11/15/46 (144A) $ 469,230
-------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITY
(Cost $450,000) $ 469,230
-------------------------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATION -- 0.3%
of Net Assets
825,985(c) Banc of America Commercial Mortgage Trust, Series 2007-4,
Class H, 5.862%, 2/10/51 (144A) $ 812,051
-------------------------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATION
(Cost $812,666) $ 812,051
-------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global High Yield Fund | Annual Report | 10/31/19
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS -- 1.6%
of Net Assets
Airlines -- 0.2%
520,000 GOL Equity Finance SA, 3.75%, 7/15/24 (144A) $ 590,192
------------
Total Airlines $ 590,192
-------------------------------------------------------------------------------------------------------------------------------
Banks -- 0.0%+
IDR 11,178,198,000^ PT Bakrie & Brothers Tbk, 0.0%, 12/22/22 $ 79,634
------------
Total Banks $ 79,634
-------------------------------------------------------------------------------------------------------------------------------
Biotechnology -- 0.6%
945,000 Insmed, Inc., 1.75%, 1/15/25 $ 806,749
807,000 Medicines Co., 2.75%, 7/15/23 1,008,246
------------
Total Biotechnology $ 1,814,995
-------------------------------------------------------------------------------------------------------------------------------
Computers -- 0.1%
473,000 Pure Storage, Inc., 0.125%, 4/15/23 $ 496,087
------------
Total Computers $ 496,087
-------------------------------------------------------------------------------------------------------------------------------
Healthcare-Products -- 0.2%
618,000 Wright Medical Group, Inc., 1.625%, 6/15/23 $ 590,307
------------
Total Healthcare-Products $ 590,307
-------------------------------------------------------------------------------------------------------------------------------
Media -- 0.2%
723,000 DISH Network Corp., 2.375%, 3/15/24 $ 648,099
------------
Total Media $ 648,099
-------------------------------------------------------------------------------------------------------------------------------
Transportation -- 0.3%
875,000 Golar LNG, Ltd., 2.75%, 2/15/22 $ 774,922
------------
Total Transportation $ 774,922
-------------------------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $5,734,457) $ 4,994,236
-------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 75.2% of Net Assets
Advertising -- 0.7%
2,340,000 MDC Partners, Inc., 6.5%, 5/1/24 (144A) $ 2,237,625
------------
Total Advertising $ 2,237,625
-------------------------------------------------------------------------------------------------------------------------------
Aerospace & Defense -- 1.0%
685,000 Bombardier, Inc., 7.5%, 3/15/25 (144A) $ 654,449
2,137,000 Bombardier, Inc., 7.875%, 4/15/27 (144A) 2,014,122
327,000 F-Brasile S.p.A./F-Brasile US LLC, 7.375%, 8/15/26 (144A) 341,715
------------
Total Aerospace & Defense $ 3,010,286
-------------------------------------------------------------------------------------------------------------------------------
Agriculture -- 0.4%
1,295,000 Kernel Holding SA, 6.5%, 10/17/24 (144A) $ 1,300,180
------------
Total Agriculture $ 1,300,180
-------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 19
Schedule of Investments | 10/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
Airlines -- 1.0%
435,224 Guanay Finance, Ltd., 6.0%, 12/15/20 (144A) $ 438,271
1,210,000 Latam Finance, Ltd., 6.875%, 4/11/24 (144A) 1,278,970
1,385,000 Latam Finance, Ltd., 7.0%, 3/1/26 (144A) 1,491,645
------------
Total Airlines $ 3,208,886
-------------------------------------------------------------------------------------------------------------------------------
Auto Manufacturers -- 0.5%
1,495,000 JB Poindexter & Co., Inc., 7.125%, 4/15/26 (144A) $ 1,558,538
------------
Total Auto Manufacturers $ 1,558,538
-------------------------------------------------------------------------------------------------------------------------------
Auto Parts & Equipment -- 1.5%
1,400,000 American Axle & Manufacturing, Inc., 6.25%, 3/15/26 $ 1,330,000
EUR 770,000 Garrett LX I S.a.r.l./Garrett Borrowing LLC, 5.125%,
10/15/26 (144A) 793,767
EUR 925,000 Panther BF Aggregator 2 LP/Panther Finance Co., Inc.,
4.375%, 5/15/26 (144A) 1,038,598
1,931,000 Titan International, Inc., 6.5%, 11/30/23 1,593,075
------------
Total Auto Parts & Equipment $ 4,755,440
-------------------------------------------------------------------------------------------------------------------------------
Banks -- 3.7%
1,150,000 Akbank TAS, 5.125%, 3/31/25 $ 1,097,790
2,000,000(b)(c) Alfa Bank AO Via Alfa Bond Issuance Plc, 8.0% (5 Year USD
Swap Rate + 666 bps) 2,047,020
ARS 8,000,000(d) Banco de la Ciudad de Buenos Aires, 60.613% (BADLARPP +
399 bps), 12/5/22 124,643
1,026,000(b)(c) Banco Mercantil del Norte SA, 6.75% (5 Year CMT Index +
497 bps) (144A) 1,047,556
1,400,000(b)(c) Barclays Plc, 7.75% (5 Year USD Swap Rate + 484 bps) 1,491,000
2,230,000 Freedom Mortgage Corp., 8.125%, 11/15/24 (144A) 2,090,625
1,565,000 Freedom Mortgage Corp., 8.25%, 4/15/25 (144A) 1,475,013
750,000(b)(c) Intesa Sanpaolo S.p.A., 7.7% (5 Year USD Swap Rate +
546 bps) (144A) 790,312
1,122,000 Provident Funding Associates LP/PFG Finance Corp., 6.375%,
6/15/25 (144A) 1,090,808
9,000(c) Turkiye Vakiflar Bankasi TAO, 8.0% (5 Year USD Swap Rate +
585 bps),11/1/27 (144A) 8,280
------------
Total Banks $ 11,263,047
-------------------------------------------------------------------------------------------------------------------------------
Building Materials -- 1.5%
1,011,000 Builders FirstSource, Inc., 6.75%, 6/1/27 (144A) $ 1,096,935
EUR 541,000 Cemex SAB de CV, 3.125%, 3/19/26 (144A) 621,101
1,201,000 Patrick Industries, Inc., 7.5%, 10/15/27 (144A) 1,246,038
1,497,000 Standard Industries, Inc., 4.75%, 1/15/28 (144A) 1,553,138
------------
Total Building Materials $ 4,517,212
-------------------------------------------------------------------------------------------------------------------------------
Chemicals -- 3.5%
1,275,000 Braskem Netherlands Finance BV, 4.5%, 1/10/28 (144A) $ 1,279,462
EUR 1,920,000 INEOS Finance Plc, 2.875%, 5/1/26 (144A) 2,112,997
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global High Yield Fund | Annual Report | 10/31/19
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
Chemicals (continued)
2,250,000 Nufarm Australia, Ltd./Nufarm Americas, Inc., 5.75%,
4/30/26 (144A) $ 2,261,250
EUR 545,000 OCI NV, 3.125%, 11/1/24 (144A) 619,523
455,000 OCI NV, 5.25%, 11/1/24 (144A) 470,925
996,000 Olin Corp., 5.625%, 8/1/29 1,034,117
1,218,000 Rain CII Carbon LLC/CII Carbon Corp., 7.25%,
4/1/25 (144A) 1,184,505
1,875,000 Trinseo Materials Operating SCA/Trinseo Materials Finance,
Inc., 5.375%, 9/1/25 (144A) 1,807,031
------------
Total Chemicals $ 10,769,810
-------------------------------------------------------------------------------------------------------------------------------
Coal -- 0.2%
670,000 SunCoke Energy Partners LP/SunCoke Energy Partners
Finance Corp., 7.5%, 6/15/25 (144A) $ 569,500
------------
Total Coal $ 569,500
-------------------------------------------------------------------------------------------------------------------------------
Commercial Services -- 4.8%
EUR 1,355,000 Avis Budget Finance Plc, 4.75%, 1/30/26 (144A) $ 1,558,251
776,000 Cardtronics, Inc./Cardtronics USA, Inc., 5.5%,
5/1/25 (144A) 801,220
1,305,000 GW B-CR Security Corp., 9.5%, 11/1/27 (144A) 1,340,887
917,000 Herc Holdings, Inc., 5.5%, 7/15/27 (144A) 950,241
847,000 Hertz Corp., 7.125%, 8/1/26 (144A) 874,527
EUR 650,000 House of Finance NV, 4.375%, 7/15/26 (144A) 708,344
EUR 695,000 Intertrust Group BV, 3.375%, 11/15/25 (144A) 810,482
EUR 705,000 Loxam SAS, 6.0%, 4/15/25 (144A) 787,651
560,000 Prime Security Services Borrower LLC/Prime Finance, Inc.,
5.25%, 4/15/24 (144A) 573,300
915,000 Prime Security Services Borrower LLC/Prime Finance, Inc.,
5.75%, 4/15/26 (144A) 937,601
1,237,000 Prime Security Services Borrower LLC/Prime Finance, Inc.,
9.25%, 5/15/23 (144A) 1,301,324
1,425,000 Sotheby's, 7.375%, 10/15/27 (144A) 1,425,000
1,330,000 Team Health Holdings, Inc., 6.375%, 2/1/25 (144A) 857,850
510,000 United Rentals North America, Inc., 3.875%, 11/15/27 515,228
315,000 United Rentals North America, Inc., 5.25%, 1/15/30 331,144
979,000 Verscend Escrow Corp., 9.75%, 8/15/26 (144A) 1,041,411
------------
Total Commercial Services $ 14,814,461
-------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 3.0%
1,644,000 Banco BTG Pactual SA, 5.5%, 1/31/23 (144A) $ 1,722,090
2,615,000 Financiera Independencia SAB de CV SOFOM ENR, 8.0%,
7/19/24 (144A) 2,346,989
3,070,000 Nationstar Mortgage LLC/Nationstar Capital Corp.,
6.5%, 6/1/22 3,077,675
1,966,000 Unifin Financiera SAB de CV, 8.375%, 1/27/28 (144A) 2,017,608
------------
Total Diversified Financial Services $ 9,164,362
-------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 21
Schedule of Investments | 10/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
Electric -- 1.9%
530,000(c) AES Gener SA, 7.125% (5 Year USD Swap Rate +
464 bps), 3/26/79 (144A) $ 550,489
1,150,000 Cemig Geracao e Transmissao SA, 9.25%, 12/5/24 (144A) 1,340,911
587,000 Clearway Energy Operating LLC, 5.75%, 10/15/25 602,409
425,000(b)(c) Electricite de France SA, 5.25% (USD Swap Rate +
371 bps) (144A) 438,813
1,120,000 Genneia SA, 8.75%, 1/20/22 (144A) 756,000
880,000 Light Servicos de Eletricidade SA/Light Energia SA, 7.25%,
5/3/23 (144A) 948,209
1,000,709 Stoneway Capital Corp., 10.0%, 3/1/27 (144A) 510,371
370,000 Talen Energy Supply LLC, 6.625%, 1/15/28 (144A) 357,050
200,000 Talen Energy Supply LLC, 7.25%, 5/15/27 (144A) 199,500
------------
Total Electric $ 5,703,752
-------------------------------------------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.8%
EUR 815,000 Belden, Inc., 3.375%, 7/15/27 (144A) $ 928,636
EUR 1,302,000 Belden, Inc., 3.875%, 3/15/28 (144A) 1,509,699
------------
Total Electrical Components & Equipment $ 2,438,335
-------------------------------------------------------------------------------------------------------------------------------
Energy-Alternate Sources -- 0.8%
1,085,000 TerraForm Power Operating LLC, 4.75%, 1/15/30 (144A) $ 1,121,619
1,560,000 YPF Energia Electrica SA, 10.0%, 7/25/26 (144A) 1,177,800
------------
Total Energy-Alternate Sources $ 2,299,419
-------------------------------------------------------------------------------------------------------------------------------
Engineering & Construction -- 1.2%
995,000 IHS Netherlands Holdco BV, 7.125%, 3/18/25 (144A) $ 1,027,536
800,000 IHS Netherlands Holdco BV, 8.0%, 9/18/27 (144A) 836,160
EUR 1,200,000 Novafives SAS, 5.0%, 6/15/25 (144A) 1,109,698
EUR 490,000 Swissport Financing S.a.r.l., 5.25%, 8/15/24 (144A) 561,098
------------
Total Engineering & Construction $ 3,534,492
-------------------------------------------------------------------------------------------------------------------------------
Entertainment -- 4.7%
GBP 900,000 AMC Entertainment Holdings, Inc., 6.375%, 11/15/24 $ 1,112,718
1,296,000 Caesars Resort Collection LLC/CRC Finco, Inc., 5.25%,
10/15/25 (144A) 1,326,780
EUR 1,175,000 Cirsa Finance International S.a.r.l., 6.25%, 12/20/23 (144A) 1,386,410
EUR 1,720,000 Codere Finance 2 Luxembourg SA, 6.75%, 11/1/21 (144A) 1,657,810
1,330,000 Codere Finance 2 Luxembourg SA, 7.625%, 11/1/21 (144A) 1,141,140
1,373,000 Enterprise Development Authority, 12.0%, 7/15/24 (144A) 1,503,435
EUR 2,100,000 International Game Technology Plc, 2.375%, 4/15/28 (144A) 2,323,846
EUR 1,124,000 Scientific Games International, Inc., 3.375%, 2/15/26 (144A) 1,268,300
EUR 1,312,000 Scientific Games International, Inc., 5.5%, 2/15/26 (144A) 1,425,517
344,000 Scientific Games International, Inc., 8.25%, 3/15/26 (144A) 363,780
809,000 Scientific Games International, Inc., 10.0%, 12/1/22 832,259
------------
Total Entertainment $ 14,341,995
-------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global High Yield Fund | Annual Report | 10/31/19
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
Environmental Control -- 1.0%
957,000 Covanta Holding Corp., 6.0%, 1/1/27 $ 1,000,065
945,000 GFL Environmental, Inc., 8.5%, 5/1/27 (144A) 1,039,500
1,081,000 Tervita Corp., 7.625%, 12/1/21 (144A) 1,067,488
------------
Total Environmental Control $ 3,107,053
-------------------------------------------------------------------------------------------------------------------------------
Food -- 4.2%
754,000 Albertsons Cos. LLC/Safeway, Inc./New Albertsons
LP/Albertson's LLC, 5.75%, 3/15/25 $ 780,164
863,000 Albertsons Cos. LLC/Safeway, Inc./New Albertsons
LP/Albertson's LLC, 5.875%, 2/15/28 (144A) 921,252
266,000 Albertsons Cos. LLC/Safeway, Inc./New Albertsons
LP/Albertson's LLC, 7.5%, 3/15/26 (144A) 295,592
1,285,000 C&S Group Enterprises LLC, 5.375%, 7/15/22 (144A) 1,288,213
1,275,000 FAGE International SA/FAGE USA Dairy Industry, Inc.,
5.625%, 8/15/26 (144A) 1,145,970
2,100,000 JBS USA LUX SA/JBS USA Finance, Inc., 6.75%,
2/15/28 (144A) 2,310,021
620,000 JBS USA LUX SA/JBS USA Food Co./JBS USA Finance, Inc.,
5.5%, 1/15/30 (144A) 667,275
505,000 JBS USA LUX SA/JBS USA Food Co./JBS USA Finance, Inc.,
6.5%, 4/15/29 (144A) 561,828
3,041,000 Minerva Luxembourg SA, 5.875%, 1/19/28 (144A) 3,100,299
1,250,000 Nova Austral SA, 8.25%, 5/26/21 (144A) 700,000
713,000 Pilgrim's Pride Corp., 5.875%, 9/30/27 (144A) 763,994
555,000 Simmons Foods, Inc., 5.75%, 11/1/24 (144A) 543,206
------------
Total Food $ 13,077,814
-------------------------------------------------------------------------------------------------------------------------------
Forest Products & Paper -- 0.8%
1,335,000 Mercer International, Inc., 7.375%, 1/15/25 (144A) $ 1,385,062
909,000 Schweitzer-Mauduit International, Inc., 6.875%,
10/1/26 (144A) 970,358
------------
Total Forest Products & Paper $ 2,355,420
-------------------------------------------------------------------------------------------------------------------------------
Healthcare-Services -- 1.9%
1,940,000 BCPE Cycle Merger Sub II, Inc., 10.625%, 7/15/27 (144A) $ 1,813,900
430,000 Encompass Health Corp., 4.75%, 2/1/30 443,437
488,000 HCA, Inc., 5.625%, 9/1/28 548,390
1,584,000 Surgery Centre Holdings, Inc., 10.0%, 4/15/27 (144A) 1,603,800
555,000 Tenet Healthcare Corp., 5.125%, 11/1/27 (144A) 577,200
755,000 WellCare Health Plans, Inc., 5.25%, 4/1/25 790,155
------------
Total Healthcare-Services $ 5,776,882
-------------------------------------------------------------------------------------------------------------------------------
Holding Companies-Diversified -- 0.5%
1,680,000 VistaJet Malta Finance Plc/XO Management Holding, Inc.,
10.5%, 6/1/24 (144A) $ 1,633,800
------------
Total Holding Companies-Diversified $ 1,633,800
-------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 23
Schedule of Investments | 10/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
Home Builders -- 2.7%
750,000 Beazer Homes USA, Inc., 5.875%, 10/15/27 $ 735,000
1,984,000 Beazer Homes USA, Inc., 6.75%, 3/15/25 2,053,440
155,000 Beazer Homes USA, Inc., 7.25%, 10/15/29 (144A) 162,362
1,516,000 Brookfield Residential Properties, Inc./Brookfield
Residential US Corp., 6.25%, 9/15/27 (144A) 1,546,320
637,000 KB Home, 6.875%, 6/15/27 726,180
515,000 Lennar Corp., 4.75%, 11/29/27 556,200
2,162,000 Taylor Morrison Communities, Inc., 5.875%,
6/15/27 (144A) 2,414,305
------------
Total Home Builders $ 8,193,807
-------------------------------------------------------------------------------------------------------------------------------
Home Furnishings -- 0.5%
EUR 1,485,000 International Design Group S.p.A., 6.5%,
11/15/25 (144A) $ 1,671,508
------------
Total Home Furnishings $ 1,671,508
-------------------------------------------------------------------------------------------------------------------------------
Household Products & Wares -- 0.2%
EUR 750,000 Diamond BC BV, 5.625%, 8/15/25 (144A) $ 764,959
------------
Total Household Products & Wares $ 764,959
-------------------------------------------------------------------------------------------------------------------------------
Insurance -- 0.4%
GBP 585,000 Galaxy Bidco, Ltd., 6.5%, 7/31/26 (144A) $ 767,310
EUR 390,000(c) Liberty Mutual Group, Inc., 3.625% (5 Year EUR Swap
Rate + 370 bps), 5/23/59 (144A) 450,986
------------
Total Insurance $ 1,218,296
-------------------------------------------------------------------------------------------------------------------------------
Internet -- 0.9%
EUR 670,000 eDreams ODIGEO SA, 5.5%, 9/1/23 (144A) $ 785,867
EUR 540,000 Netflix, Inc., 3.625%, 6/15/30 (144A) 601,051
EUR 1,250,000 Netflix, Inc., 3.875%, 11/15/29 (144A) 1,425,312
------------
Total Internet $ 2,812,230
-------------------------------------------------------------------------------------------------------------------------------
Iron & Steel -- 1.2%
20,000 Commercial Metals Co., 5.375%, 7/15/27 $ 20,525
758,000 Commercial Metals Co., 5.75%, 4/15/26 781,687
748,000 Metinvest BV, 7.75%, 4/23/23 (144A) 782,034
2,165,000 Metinvest BV, 7.75%, 10/17/29 (144A) 2,140,319
------------
Total Iron & Steel $ 3,724,565
-------------------------------------------------------------------------------------------------------------------------------
Leisure Time -- 1.0%
2,027,000 Viking Cruises, Ltd., 5.875%, 9/15/27 (144A) $ 2,153,688
955,000 Viking Cruises, Ltd., 6.25%, 5/15/25 (144A) 995,587
------------
Total Leisure Time $ 3,149,275
-------------------------------------------------------------------------------------------------------------------------------
Lodging -- 0.6%
1,315,000 Grupo Posadas SAB de CV, 7.875%, 6/30/22 (144A) $ 1,315,000
546,000 MGM Resorts International, 5.5%, 4/15/27 600,600
------------
Total Lodging $ 1,915,600
-------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global High Yield Fund | Annual Report | 10/31/19
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
Machinery-Diversified -- 1.1%
650,000 Cloud Crane LLC, 10.125%, 8/1/24 (144A) $ 686,562
EUR 2,542,000 Platin 1426 GmbH, 5.375%, 6/15/23 (144A) 2,661,370
------------
Total Machinery-Diversified $ 3,347,932
-------------------------------------------------------------------------------------------------------------------------------
Media -- 2.7%
600,000 Altice Finco SA, 8.125%, 1/15/24 (144A) $ 618,750
1,063,000 Altice Luxembourg SA, 10.5%, 5/15/27 (144A) 1,202,519
1,065,000 CCO Holdings LLC/CCO Holdings Capital Corp., 4.75%,
3/1/30 (144A) 1,085,980
1,400,000 CCO Holdings LLC/CCO Holdings Capital Corp., 5.125%,
5/1/27 (144A) 1,475,250
459,000 Clear Channel Worldwide Holdings, Inc., 9.25%,
2/15/24 (144A) 504,900
575,000 CSC Holdings LLC, 5.5%, 4/15/27 (144A) 609,506
2,018,000 Diamond Sports Group LLC/Diamond Sports Finance Co.,
6.625%, 8/15/27 (144A) 2,078,540
745,000 LCPR Senior Secured Financing, DAC, 6.75%,
10/15/27 (144A) 764,556
------------
Total Media $ 8,340,001
-------------------------------------------------------------------------------------------------------------------------------
Mining -- 1.5%
236,000 Coeur Mining, Inc., 5.875%, 6/1/24 $ 234,258
705,000 First Quantum Minerals, Ltd., 6.875%, 3/1/26 (144A) 690,019
1,722,000 Freeport-McMoRan, Inc., 5.25%, 9/1/29 1,752,652
931,000 Hudbay Minerals, Inc., 7.25%, 1/15/23 (144A) 962,328
900,000 Novelis Corp., 5.875%, 9/30/26 (144A) 945,090
------------
Total Mining $ 4,584,347
-------------------------------------------------------------------------------------------------------------------------------
Oil & Gas -- 5.6%
1,144,000 Ensign Drilling, Inc., 9.25%, 4/15/24 (144A) $ 972,400
684,000 Great Western Petroleum LLC/Great Western Finance Corp.,
9.0%, 9/30/21 (144A) 555,750
1,055,000 Gulfport Energy Corp., 6.0%, 10/15/24 677,837
901,000 Indigo Natural Resources LLC, 6.875%, 2/15/26 (144A) 819,910
645,000 Medco Oak Tree Pte, Ltd., 7.375%, 5/14/26 (144A) 656,640
980,000 MEG Energy Corp., 7.0%, 3/31/24 (144A) 918,750
1,460,000 Neptune Energy Bondco Plc, 6.625%, 5/15/25 (144A) 1,452,700
1,434,000 Oasis Petroleum, Inc., 6.875%, 3/15/22 1,258,335
465,000 Parkland Fuel Corp., 5.875%, 7/15/27 (144A) 492,119
960,000 Parsley Energy LLC/Parsley Finance Corp., 5.375%,
1/15/25 (144A) 988,301
415,000 PBF Holding Co. LLC/PBF Finance Corp., 7.0%, 11/15/23 427,450
1,873,000 SEPLAT Petroleum Development Co. Plc, 9.25%,
4/1/23 (144A) 1,967,025
2,070,000 Shelf Drilling Holdings, Ltd., 8.25%, 2/15/25 (144A) 1,738,800
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 25
Schedule of Investments | 10/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
Oil & Gas (continued)
150,000 SM Energy Co., 6.125%, 11/15/22 $ 142,875
945,000 SM Energy Co., 6.75%, 9/15/26 810,337
335,000 Transocean Sentry, Ltd., 5.375%, 5/15/23 (144A) 331,650
1,590,000 Transocean, Inc., 7.25%, 11/1/25 (144A) 1,403,175
185,000 WPX Energy, Inc., 5.25%, 10/15/27 179,913
1,800,000 YPF SA, 6.95%, 7/21/27 (144A) 1,343,718
ARS 22,125,000 YPF SA, 16.5%, 5/9/22 (144A) 126,269
------------
Total Oil & Gas $ 17,263,954
-------------------------------------------------------------------------------------------------------------------------------
Oil & Gas Services -- 1.0%
875,000 Archrock Partners LP/Archrock Partners Finance Corp.,
6.875%, 4/1/27 (144A) $ 903,350
788,000 Exterran Energy Solutions LP/EES Finance Corp.,
8.125%, 5/1/25 780,120
778,000 FTS International, Inc., 6.25%, 5/1/22 555,298
505,000 SESI LLC, 7.75%, 9/15/24 277,750
573,000 USA Compression Partners LP/USA Compression Finance
Corp., 6.875%, 9/1/27 (144A) 573,000
------------
Total Oil & Gas Services $ 3,089,518
-------------------------------------------------------------------------------------------------------------------------------
Packaging & Containers -- 0.4%
EUR 700,000(e) ARD Finance SA, 6.625% (7.375% PIK 6.625%
cash), 9/15/23 $ 807,458
EUR 410,000 Ardagh Packaging Finance Plc/Ardagh Holdings USA, Inc.,
6.75%, 5/15/24 (144A) 479,789
------------
Total Packaging & Containers $ 1,287,247
-------------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 2.7%
370,000 Bausch Health Americas, Inc., 8.5%, 1/31/27 (144A) $ 415,214
EUR 1,795,000 Bausch Health Cos., Inc., 4.5%, 5/15/23 2,022,443
755,000 Bausch Health Cos., Inc., 7.0%, 3/15/24 (144A) 789,862
1,033,000 Horizon Pharma USA, Inc., 5.5%, 8/1/27 (144A) 1,078,194
918,000 Par Pharmaceutical, Inc., 7.5%, 4/1/27 (144A) 872,100
EUR 1,315,000 Rossini S.a.r.l., 6.75%, 10/30/25 (144A) 1,619,819
EUR 1,820,000 Teva Pharmaceutical Finance Netherlands II BV,
1.625%, 10/15/28 1,460,375
190,000 Teva Pharmaceutical Finance Netherlands III BV,
2.8%, 7/21/23 164,350
------------
Total Pharmaceuticals $ 8,422,357
-------------------------------------------------------------------------------------------------------------------------------
Pipelines -- 3.0%
1,600,000 American Midstream Partners LP/American Midstream
Finance Corp., 9.5%, 12/15/21 (144A) $ 1,488,000
610,000 Cheniere Energy Partners LP, 4.5%, 10/1/29 (144A) 621,437
1,033,000 DCP Midstream Operating LP, 5.6%, 4/1/44 976,495
1,500,000 Delek Logistics Partners LP/Delek Logistics Finance Corp.,
6.75%, 5/15/25 1,496,250
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global High Yield Fund | Annual Report | 10/31/19
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
Pipelines (continued)
1,110,000 Genesis Energy LP/Genesis Energy Finance Corp.,
6.25%, 5/15/26 $ 1,026,750
1,395,000 Genesis Energy LP/Genesis Energy Finance Corp.,
6.5%, 10/1/25 1,325,250
1,058,000 Global Partners LP/GLP Finance Corp., 7.0%, 6/15/23 1,093,163
327,000 Global Partners LP/GLP Finance Corp., 7.0%,
8/1/27 (144A) 340,136
850,000 Targa Resources Partners LP/Targa Resources Partners
Finance Corp., 4.25%, 11/15/23 853,995
------------
Total Pipelines $ 9,221,476
-------------------------------------------------------------------------------------------------------------------------------
REITS -- 1.0%
1,835,000 iStar, Inc., 4.75%, 10/1/24 $ 1,892,344
1,066,000 MPT Operating Partnership LP/MPT Finance Corp.,
4.625%, 8/1/29 1,111,987
------------
Total REITS $ 3,004,331
-------------------------------------------------------------------------------------------------------------------------------
Retail -- 1.5%
970,000 AAG FH LP/AAG FH Finco, Inc., 9.75%, 7/15/24 (144A) $ 894,825
995,000 Golden Nugget, Inc., 8.75%, 10/1/25 (144A) 1,047,238
525,000 JC Penney Corp., Inc., 5.875%, 7/1/23 (144A) 456,750
2,225,000 Michaels Stores, Inc., 8.0%, 7/15/27 (144A) 2,196,520
------------
Total Retail $ 4,595,333
-------------------------------------------------------------------------------------------------------------------------------
Software -- 0.3%
EUR 606,000 IQVIA, Inc., 2.25%, 1/15/28 (144A) $ 689,877
341,000 Rackspace Hosting, Inc., 8.625%, 11/15/24 (144A) 312,015
------------
Total Software $ 1,001,892
-------------------------------------------------------------------------------------------------------------------------------
Telecommunications -- 5.6%
1,267,000 CenturyLink, Inc., 5.625%, 4/1/25 $ 1,335,228
400,000 CommScope Technologies LLC, 6.0%, 6/15/25 (144A) 355,880
2,820,000 Digicel, Ltd., 6.0%, 4/15/21 (144A) 2,100,928
3,875,000 Frontier Communications Corp., 8.75%, 4/15/22 1,811,563
775,000 Frontier Communications Corp., 11.0%, 9/15/25 363,281
1,215,000 Intelsat Jackson Holdings SA, 5.5%, 8/1/23 1,136,025
1,310,000 Level 3 Financing, Inc., 4.625%, 9/15/27 (144A) 1,332,925
1,233,000 Millicom International Cellular SA, 6.25%, 3/25/29 (144A) 1,345,487
1,540,000 MTN Mauritius Investments, Ltd., 5.373%, 2/13/22 (144A) 1,590,712
3,235,000 Sprint Corp., 7.25%, 9/15/21 3,451,939
565,000 Sprint Corp., 7.625%, 3/1/26 625,031
1,825,000 Windstream Services LLC/Windstream Finance Corp.,
8.625%, 10/31/25 (144A) 1,827,281
------------
Total Telecommunications $ 17,276,280
-------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 27
Schedule of Investments | 10/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
Transportation -- 1.7%
1,000,000(d) Golar LNG Partners LP, 8.408% (3 Month USD LIBOR +
625 bps), 5/18/21 (144A) $ 985,001
2,445,000 Hidrovias International Finance S.a.r.l., 5.95%,
1/24/25 (144A) 2,548,937
1,725,000 Navios South American Logistics, Inc./Navios Logistics
Finance US, Inc., 7.25%, 5/1/22 (144A) 1,699,125
------------
Total Transportation $ 5,233,063
-------------------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $238,063,823) $231,556,280
-------------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 8.4%
of Net Assets
Angola -- 0.4%
1,132,000 Angolan Government International Bond, 8.25%,
5/9/28 (144A) $ 1,181,706
------------
Total Angola $ 1,181,706
-------------------------------------------------------------------------------------------------------------------------------
Argentina -- 1.7%
875,000 Argentine Republic Government International Bond,
6.875%, 1/26/27 $ 343,446
1,850,000 Argentine Republic Government International Bond,
7.5%, 4/22/26 784,418
2,000,000 Ciudad Autonoma De Buenos Aires, 7.5%, 6/1/27 (144A) 1,515,000
418,048 Province of Salta Argentina, 9.5%, 3/16/22 (144A) 374,153
1,840,000 Provincia de Entre Rios Argentina, 8.75%, 2/8/25 (144A) 1,021,200
1,665,000 Provincia del Chubut Argentina, 7.75%, 7/26/26 (144A) 1,078,088
------------
Total Argentina $ 5,116,305
-------------------------------------------------------------------------------------------------------------------------------
Bahrain -- 0.6%
785,000 Bahrain Government International Bond, 5.625%,
9/30/31 (144A) $ 823,650
780,000 Bahrain Government International Bond, 7.0%,
10/12/28 (144A) 899,262
------------
Total Bahrain $ 1,722,912
-------------------------------------------------------------------------------------------------------------------------------
Dominican Republic -- 0.3%
DOP 57,750,000 Dominican Republic International Bond, 8.9%,
2/15/23 (144A) $ 1,090,476
------------
Total Dominican Republic $ 1,090,476
-------------------------------------------------------------------------------------------------------------------------------
Egypt -- 1.7%
EUR 1,100,000 Egypt Government International Bond, 4.75%,
4/11/25 (144A) $ 1,268,046
1,658,000 Egypt Government International Bond, 7.6%,
3/1/29 (144A) 1,752,420
EGP 28,275,000(f) Egypt Treasury Bills, 2/4/20 1,684,474
EGP 7,675,000(f) Egypt Treasury Bills, 3/3/20 451,972
------------
Total Egypt $ 5,156,912
-------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global High Yield Fund | Annual Report | 10/31/19
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
Ivory Coast -- 0.2%
EUR 495,000 Ivory Coast Government International Bond, 5.875%,
10/17/31 (144A) $ 558,146
------------
Total Ivory Coast $ 558,146
-------------------------------------------------------------------------------------------------------------------------------
Oman -- 0.4%
1,010,000 Oman Government International Bond, 5.375%,
3/8/27 (144A) $ 999,900
304,000 Oman Government International Bond, 6.0%,
8/1/29 (144A) 303,620
------------
Total Oman $ 1,303,520
-------------------------------------------------------------------------------------------------------------------------------
Sri Lanka -- 0.8%
1,760,000 Sri Lanka Government International Bond, 7.55%,
3/28/30 (144A) $ 1,780,014
575,000 Sri Lanka Government International Bond, 7.85%,
3/14/29 (144A) 595,051
------------
Total Sri Lanka $ 2,375,065
-------------------------------------------------------------------------------------------------------------------------------
Tunisia -- 0.5%
EUR 1,397,000 Banque Centrale de Tunisie International Bond, 6.375%,
7/15/26 (144A) $ 1,518,432
------------
Total Tunisia $ 1,518,432
-------------------------------------------------------------------------------------------------------------------------------
Turkey -- 1.1%
2,550,000 Turkey Government International Bond, 3.25%, 3/23/23 $ 2,413,881
EUR 1,005,000 Turkey Government International Bond, 4.625%, 3/31/25 1,153,623
------------
Total Turkey $ 3,567,504
-------------------------------------------------------------------------------------------------------------------------------
Ukraine -- 0.4%
1,175,000 Ukraine Government International Bond, 8.994%,
2/1/24 (144A) $ 1,307,187
------------
Total Ukraine $ 1,307,187
-------------------------------------------------------------------------------------------------------------------------------
Uruguay -- 0.3%
UYU 37,635,000 Uruguay Government International Bond, 9.875%,
6/20/22 (144A) $ 979,947
------------
Total Uruguay $ 979,947
-------------------------------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $28,987,616) $ 25,878,112
-------------------------------------------------------------------------------------------------------------------------------
INSURANCE-LINKED SECURITIES -- 4.2%
of Net Assets(g)
Catastrophe Linked Bonds -- 1.4%
Earthquakes -- California -- 0.3%
250,000(d) Ursa Re, 6.904% (3 Month U.S. Treasury Bill +
537 bps), 12/10/20 (144A) $ 246,500
600,000(d) Ursa Re, 7.534% (3 Month U.S. Treasury Bill +
600 bps), 5/27/20 (144A) 592,800
------------
$ 839,300
-------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 29
Schedule of Investments | 10/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
Earthquakes -- Mexico -- 0.1%
250,000(d) International Bank for Reconstruction & Development,
10.208% (3 Month USD LIBOR + 825 bps),
2/14/20 (144A) $ 249,450
-------------------------------------------------------------------------------------------------------------------------------
Earthquakes -- Peru -- 0.0%+
175,000(d) International Bank for Reconstruction & Development,
7.958% (3 Month USD LIBOR + 600 bps), 2/15/21 (144A) $ 172,078
-------------------------------------------------------------------------------------------------------------------------------
Multiperil -- U.S. -- 0.6%
500,000(d) Caelus Re V, 2.034% (1 Month U.S. Treasury Bill +
50 bps), 6/5/20 (144A) $ 50
250,000(d) Caelus Re V, 9.354% (3 Month U.S. Treasury Bill +
782 bps), 6/7/21 (144A) 219,625
500,000(d) Kilimanjaro II Re, 12.373% (6 Month USD LIBOR +
1,061 bps), 4/20/21 (144A) 505,700
400,000(d) Northshore Re II 2017 A, 9.064% (3 Month U.S. Treasury
Bill + 753 bps), 7/6/20 (144A) 407,160
500,000(d) Residential Reinsurance 2016, 6.964% (3 Month U.S.
Treasury Bill + 543 bps), 12/6/20 (144A) 492,850
250,000(d) Tailwind Re, 12.124% (3 Month U.S. Treasury Bill +
1,059 bps), 1/8/22 (144A) 251,500
------------
$ 1,876,885
-------------------------------------------------------------------------------------------------------------------------------
Multiperil -- Worldwide -- 0.4%
300,000(d) Galilei Re, 7.461% (6 Month USD LIBOR + 560 bps),
1/8/20 (144A) $ 300,180
300,000(d) Galilei Re, 8.641% (6 Month USD LIBOR + 678 bps),
1/8/20 (144A) 300,210
300,000(d) Galilei Re, 8.661% (6 Month USD LIBOR + 678 bps),
1/8/21 (144A) 300,300
250,000(d) Galilei Re, 10.491% (6 Month USD LIBOR + 863 bps),
1/8/20 (144A) 250,450
------------
$ 1,151,140
-------------------------------------------------------------------------------------------------------------------------------
Pandemic -- Worldwide -- 0.0%+
250,000(d) International Bank for Reconstruction & Development,
13.313% (6 Month USD LIBOR + 1,150 bps),
7/15/20 (144A) $ 150,000
------------
Total Catastrophe Linked Bonds $ 4,438,853
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
Face
Amount USD ($)
-------------------------------------------------------------------------------------------------------------------------------
Collateralized Reinsurance -- 0.7%
Multiperil -- U.S. -- 0.0%+
300,000+(a)(h) Kingsbarns Re 2017, 5/19/20 $ 300
-------------------------------------------------------------------------------------------------------------------------------
Multiperil -- Worldwide -- 0.6%
600,000+(a)(h) Cypress Re 2017, 1/10/20 $ 10,920
462,359+(a)(h) Dartmouth Re 2018, 1/15/20 208,062
115,581+(a)(h) Dartmouth Re 2019, 1/31/20 91,101
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global High Yield Fund | Annual Report | 10/31/19
-------------------------------------------------------------------------------------------------------------------------------
Face
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
Multiperil -- Worldwide (continued)
250,000+(a)(h) Dingle Re 2019, 2/1/20 $ 253,597
389,876+(a)(h) Gloucester Re 2018, 1/15/20 169,596
150,000+(a)(h) Gloucester Re 2019, 1/31/20 150,110
368,836+(h) Kilarney Re 2018, 4/15/20 186,188
12,000+(h) Limestone Re, 8/31/21 14,540
12,000+(h) Limestone Re 2016-1, 8/31/21 (144A) 14,540
250,000+(h) Merion Re 2018, 12/31/21 15,875
259,644+(a)(h) Merion Re 2019-1, 12/31/22 256,145
277,770+(a)(h) Oyster Bay Re 2018, 1/15/20 252,104
400,000+(a)(h) Resilience Re, 4/6/20 40
283,700+(a)(h) Seminole Re 2018, 1/15/20 89,963
71,428+(a)(h) Seminole Re 2019, 1/31/20 71,425
276,582+(a)(h) Walton Health Re 2018, 6/15/20 138,291
------------
$ 1,922,497
-------------------------------------------------------------------------------------------------------------------------------
Windstorm -- Florida -- 0.1%
250,000+(h) Formby Re 2018, 2/28/20 $ 79,216
86,906+(a)(h) Formby Re 2018-2, 3/31/20 713
300,000+(a)(h) Portrush Re 2017, 6/15/20 191,810
------------
$ 271,739
-------------------------------------------------------------------------------------------------------------------------------
Windstorm -- U.S. Regional -- 0.0%+
250,000+(a)(h) Oakmont Re 2017, 4/15/20 $ 7,350
------------
Total Collateralized Reinsurance $ 2,201,886
-------------------------------------------------------------------------------------------------------------------------------
Industry Loss Warranties -- 0.2%
Multiperil -- U.S. -- 0.2%
500,000+(a)(h) Cypress Re 2019, 1/31/20 $ 500,649
------------
Total Industry Loss Warranties $ 500,649
-------------------------------------------------------------------------------------------------------------------------------
Reinsurance Sidecars -- 1.9%
Multiperil -- U.S. -- 0.4%
3,900,000+(a)(h) Carnoustie Re 2015, 7/31/20 $ 12,480
2,600,000+(a)(h) Carnoustie Re 2016, 11/30/20 70,200
800,000+(a)(h) Carnoustie Re 2017, 11/30/21 203,360
250,000+(a)(h) Carnoustie Re 2018, 12/31/21 24,950
1,000,000+(a)(i) Harambee Re 2018, 12/31/21 115,000
695,349+(a)(i) Harambee Re 2019, 12/31/22 743,954
1,300,000+(a)(h) Prestwick Re 2015-1, 7/31/20 22,100
------------
$ 1,192,044
-------------------------------------------------------------------------------------------------------------------------------
Multiperil -- Worldwide -- 1.5%
250,000+(a)(h) Alturas Re 2019-2, 3/10/22 $ 266,500
1,300,000+(a)(h) Arlington Re 2015, 2/1/20 63,180
490,000+(a)(h) Bantry Re 2016, 3/30/20 39,494
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 31
Schedule of Investments | 10/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------------------
Face
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
Multiperil -- Worldwide (continued)
300,000+(a)(h) Bantry Re 2017, 3/31/20 $ 95,130
250,000+(a)(h) Bantry Re 2018, 12/31/21 15,350
250,000+(a)(h) Bantry Re 2019, 12/31/22 262,003
1,422,258+(h) Berwick Re 2018-1, 12/31/21 227,135
556,791+(a)(h) Berwick Re 2019-1, 12/31/22 595,975
250,000+(a)(i) Blue Lotus Re 2018, 12/31/21 267,325
22,500+(a)(h) Eden Re II, 3/22/22 (144A) 42,301
12,500+(a)(h) Eden Re II, 3/22/22 (144A) 28,250
1,600,000+(h) Gleneagles Re 2016, 11/30/20 49,920
250,000+(a)(h) Gleneagles Re 2018, 12/31/21 29,575
8,000+(h) Limestone Re, 3/1/22 27,406
450,000+(a)(i) Lorenz Re 2018, 7/1/21 94,455
231,508+(a)(i) Lorenz Re 2019, 6/30/22 247,991
600,000+(a)(h) Merion Re 2018-2, 12/31/21 598,800
3,900,000+(h) Pangaea Re 2015-1, 2/1/20 5,102
3,500,000+(h) Pangaea Re 2016-1, 11/30/20 9,602
1,000,000+(h) Pangaea Re 2016-2, 11/30/20 2,976
300,000+(a)(h) Pangaea Re 2018-1, 12/31/21 17,640
300,000+(a)(h) Pangaea Re 2018-3, 7/1/22 14,880
245,774+(a)(h) Pangaea Re 2019-1, 2/1/23 244,496
220,594+(a)(h) Pangaea Re 2019-3, 7/1/23 214,572
500,000+(a)(h) St. Andrews Re 2017-1, 2/1/20 33,900
521,395+(a)(h) St. Andrews Re 2017-4, 6/1/20 51,305
250,000+(a)(i) Thopas Re 2018, 12/31/21 29,825
250,000+(a)(i) Thopas Re 2019, 12/31/22 255,075
600,000+(a)(h) Versutus Re 2017, 11/30/21 7,800
300,000+(a)(h) Versutus Re 2018, 12/31/21 --
264,763+(a)(h) Versutus Re 2019-A, 12/31/21 282,184
35,236+(a)(h) Versutus Re 2019-B, 12/31/21 37,555
250,000+(a)(i) Viribus Re 2018, 12/31/21 59,225
106,153+(a)(i) Viribus Re 2019, 12/31/22 122,501
253,645+(a)(h) Woburn Re 2018, 12/31/21 107,799
244,914+(a)(h) Woburn Re 2019, 12/31/22 264,333
------------
$ 4,711,560
------------
Total Reinsurance Sidecars $ 5,903,604
-------------------------------------------------------------------------------------------------------------------------------
TOTAL INSURANCE-LINKED SECURITIES
(Cost $13,918,162) $ 13,044,992
-------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global High Yield Fund | Annual Report | 10/31/19
-------------------------------------------------------------------------------------------------------------------------------
Principal
Amount USD ($) Value
-------------------------------------------------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS -- 3.2% of Net Assets*(d)
Diversified & Conglomerate Service -- 0.3%
850,000 DynCorp International, Inc., Term Loan, 7.914% (LIBOR +
600 bps), 8/18/25 $ 833,000
------------
Total Diversified & Conglomerate Service $ 833,000
-------------------------------------------------------------------------------------------------------------------------------
Healthcare, Education & Childcare -- 0.6%
836,719 Alliance HealthCare Services, Inc., First Lien Initial Term
Loan, 6.286% (LIBOR + 450 bps), 10/24/23 $ 740,496
1,164,706 Regionalcare Hospital Partners Holdings, Inc., First Lien
Term B Loan, 6.304% (LIBOR + 450 bps), 11/16/25 1,164,160
------------
Total Healthcare, Education & Childcare $ 1,904,656
-------------------------------------------------------------------------------------------------------------------------------
Machinery -- 0.5%
1,587,083 Shape Technologies Group, Inc., Initial Term Loan, 4.934%
(LIBOR + 300 bps), 4/21/25 $ 1,452,181
------------
Total Machinery $ 1,452,181
-------------------------------------------------------------------------------------------------------------------------------
Media -- 0.3%
825,000 Diamond Sports Group LLC, Term Loan, 5.08% (LIBOR +
325 bps), 8/24/26 $ 829,641
------------
Total Media $ 829,641
-------------------------------------------------------------------------------------------------------------------------------
Metals & Mining -- 0.4%
1,382,500 Aleris International, Inc., Initial Term Loan, 6.536%
(LIBOR + 475 bps), 2/27/23 $ 1,385,956
------------
Total Metals & Mining $ 1,385,956
-------------------------------------------------------------------------------------------------------------------------------
Personal, Food & Miscellaneous Services -- 0.6%
2,507,139 Revlon Consumer Products Corp., Initial Term B Loan,
5.624% (LIBOR + 350 bps), 9/7/23 $ 1,979,857
------------
Total Personal, Food & Miscellaneous Services $ 1,979,857
-------------------------------------------------------------------------------------------------------------------------------
Telecommunications -- 0.5%
1,660,000 Commscope, Inc., Initial Term Loan, 5.036% (LIBOR +
325 bps),4/6/26 $ 1,635,618
------------
Total Telecommunications $ 1,635,618
-------------------------------------------------------------------------------------------------------------------------------
TOTAL SENIOR SECURED FLOATING RATE LOAN INTERESTS
(Cost $10,555,256) $ 10,020,909
-------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 3.5%
of Net Assets
6,000,000(f) U.S. Treasury Bills, 11/5/19 $ 5,998,987
1,700,000(f) U.S. Treasury Bills, 11/12/19 1,699,210
1,000,000(f) U.S. Treasury Bills, 11/19/19 999,237
2,000,000(f) U.S. Treasury Bills, 11/26/19 1,997,861
-------------------------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $10,694,854) $ 10,695,295
-------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 33
Schedule of Investments | 10/31/19 (continued)
-------------------------------------------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.0%+ of Net Assets
Metals & Mining -- 0.0%+
318,254(j) ANR, Inc. $ 3,501
------------
Total Metals & Mining $ 3,501
-------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.0%+
7,774^(a)(k) Amplify Energy Corp. $ --
61(a)(l) Contura Energy, Inc. 305
------------
Total Oil, Gas & Consumable Fuels $ 305
-------------------------------------------------------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $36,833) $ 3,806
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Notional Price Date
-------------------------------------------------------------------------------------------------------------------------------
OVER THE COUNTER (OTC) CALL OPTIONS
PURCHASED -- 0.0%
297,012^(m) Desarrolladora Bank of
Homex New York
SAB de CV Mellon Corp. MXN -- MXN --(o) 10/23/22 $ --
297,012^(n) Desarrolladora Bank of
Homex New York
SAB de CV Mellon Corp. MXN -- MXN --(o) 10/23/22 --
------------
$ --
-------------------------------------------------------------------------------------------------------------------------------
TOTAL OVER THE COUNTER (OTC) CALL OPTIONS
PURCHASED
(Premiums paid $0) $ --
-------------------------------------------------------------------------------------------------------------------------------
OVER THE COUNTER (OTC) CURRENCY PUT
OPTIONS PURCHASED -- 0.0%+
5,925,000 Put EUR Bank of
Call USD America NA EUR 81,546 EUR 1.13 1/9/20 $ 92,102
10,940,000 Put EUR Bank of
Call USD America NA EUR 116,141 EUR 1.10 4/29/20 72,252
------------
$ 164,354
-------------------------------------------------------------------------------------------------------------------------------
TOTAL OVER THE COUNTER (OTC) CURRENCY PUT
OPTIONS PURCHASED
(Premiums paid $197,687) $ 164,354
-------------------------------------------------------------------------------------------------------------------------------
TOTAL OPTIONS PURCHASED
(Premiums paid $197,687) $ 164,354
-------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS -- 97.2%
(Cost $315,092,239) $299,570,516
-------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global High Yield Fund | Annual Report | 10/31/19
-------------------------------------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Notional Price Date Value
-------------------------------------------------------------------------------------------------------------------------------
OVER THE COUNTER (OTC) CURRENCY CALL
OPTIONS WRITTEN -- (0.0)%+
(5,925,000) Call EUR Bank of
Put USD America NA EUR 81,546 EUR 1.25 1/9/20 $ (8)
(10,940,000) Call EUR Bank of
Put USD America NA EUR 116,141 EUR 1.21 4/29/20 (14,774)
-------------
$ (14,782)
--------------------------------------------------------------------------------------------------------------------------------
TOTAL OVER THE COUNTER (OTC) CURRENCY CALL
OPTIONS WRITTEN
(Premiums received $(197,687)) $ (14,782)
--------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 2.8% $ 8,537,674
--------------------------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $308,093,408
================================================================================================================================
BADLARPP Argentine Deposit Rate Badlar Private Banks 30-35 Days.
bps Basis Points.
CMT Constant Maturity Treasury Index.
REIT Real Estate Investment Trust.
LIBOR London Interbank Offered Rate.
(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, 2019, the value of these securities
amounted to $202,722,322, or 65.8% 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, 2019.
+ Security that used significant unobservable inputs to determine
its value.
^ Security is valued using fair value methods (other than supplied
by independent pricing services).
(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 is shown at October 31,
2019.
(d) Floating rate note. Coupon rate, reference index and spread are
shown at October 31, 2019.
(e) Payment-in-kind (PIK) security which may pay interest in the form
of additional principal amount.
(f) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(g) Securities are restricted as to resale.
(h) Issued as participation notes.
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 35
Schedule of Investments | 10/31/19 (continued)
(i) Issued as preference shares.
(j) ANR, Inc. warrants are exercisable into 318,254 shares.
(k) Amplify Energy Corp. warrants are exercisable into 7,774 shares.
(l) Contura Energy, Inc. warrants are exercisable into 61 shares.
(m) Option does not become effective until underlying company's
outstanding common shares reach a market capitalization of MXN
12.5 Billion.
(n) Option does not become effective until underlying company's
outstanding common shares reach a market capitalization of MXN
15.0 Billion.
(o) Strike price is 1 Mexican Peso (MXN).
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
-------------------------------------------------------------------------------------------------------
In Unrealized
Currency Exchange Currency Settlement Appreciation
Purchased for Sold Deliver Counterparty Date (Depreciation)
-------------------------------------------------------------------------------------------------------
USD 774,378 EUR (700,000) Brown Brothers 11/27/19 $ (6,911)
Harriman & Co.
USD 542,613 EUR (490,000) Citibank NA 11/27/19 (4,288)
NOK 20,928,737 EUR (2,101,827) HSBC Bank 11/29/19 (72,613)
USA NA
GBP 255,000 EUR (295,196) JPMorgan Chase 12/18/19 416
Bank NA
USD 765,177 EUR (692,000) JPMorgan Chase 11/27/19 (7,183)
Bank NA
EUR 3,754,258 USD (4,131,881) State Street 11/27/19 58,346
Bank & Trust Co.
USD 2,168,068 EUR (1,950,000) State Street 11/27/19 (8,378)
Bank & Trust Co.
-------------------------------------------------------------------------------------------------------
TOTAL FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS $(40,611)
=======================================================================================================
SWAP CONTRACTS
CENTRALLY CLEARED CREDIT DEFAULT SWAP CONTRACTS -- SELL PROTECTION
--------------------------------------------------------------------------------------------------------------------
Obligation Annual Premiums Unrealized
Notional Reference/ Pay/ Fixed Expiration Paid/ Appreciation Market
Amount ($)(1) Index Receive(2) Rate Date (Received) (Depreciation) Value
--------------------------------------------------------------------------------------------------------------------
1,306,650 Markit CDX Receive 5.00% 12/20/20 $ (6,170) $ 47,675 $ 41,505
North America
High Yield Index
Series 25
3,111,400 Markit CDX Receive 5.00% 6/20/21 217,084 (76,747) 140,337
North America
High Yield Index
Series 26
--------------------------------------------------------------------------------------------------------------------
TOTAL CENTRALLY CLEARED CREDIT DEFAULT
SWAP CONTRACTS -- SELL PROTECTION $210,914 $(29,072) $181,842
====================================================================================================================
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global High Yield Fund | Annual Report | 10/31/19
OVER THE COUNTER (OTC) CREDIT DEFAULT SWAP CONTRACTS -- SELL PROTECTION
--------------------------------------------------------------------------------------------------------------------------
Obligation Annual
Notional Reference/ Pay/ Fixed Expiration Premiums Unrealized Market
Amount ($)(1) Counterparty Index Receive(2) Rate Date (Received) (Depreciation) Value
--------------------------------------------------------------------------------------------------------------------------
690,000 Goldman Sachs Chesapeake Receive 5.00% 6/20/22 $ (77,625) $(27,017) $(104,642)
International Energy Corp.
415,000 Goldman Sachs Chesapeake Receive 5.00% 6/20/22 (50,838) (12,099) (62,937)
International Energy Corp.
650,000 Goldman Sachs Chesapeake Receive 5.00% 6/20/22 (79,625) (18,951) (98,576)
International Energy Corp.
--------------------------------------------------------------------------------------------------------------------------
TOTAL OVER THE COUNTER (OTC) CREDIT DEFAULT SWAP CONTRACTS --
SELL PROTECTION $(208,088) $(58,067) $(266,155)
--------------------------------------------------------------------------------------------------------------------------
TOTAL SWAP CONTRACTS $ 2,826 $(87,139) $ (84,313)
==========================================================================================================================
(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
EGP -- Egyptian Pound
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
the year ended October 31, 2019, aggregated $167,326,198 and $239,800,620,
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 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,
2019, the Fund engaged in purchases of $1,998,484 and sales of $4,226,705
pursuant to these procedures, which resulted in a net realized gain/(loss) of
$125,790.
At October 31, 2019, the net unrealized depreciation on investments based on
cost for federal tax purposes of $315,831,289 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 9,486,091
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value $(25,886,570)
------------
Net unrealized depreciation $(16,400,479)
============
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 37
Schedule of Investments | 10/31/19 (continued)
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 following is a summary of the inputs used as of October 31, 2019, in
valuing the Fund's investments:
-------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------------------
Common Stocks
Oil, Gas & Consumable Fuels $ 181 $ -- $ 860,272 $ 860,453
Paper & Forest Products -- 18,379 -- 18,379
All Other Common Stocks 71,244 -- -- 71,244
Convertible Preferred Stock 981,175 -- -- 981,175
Asset Backed Security -- 469,230 -- 469,230
Collateralized Mortgage
Obligation -- 812,051 -- 812,051
Convertible Corporate Bonds -- 4,994,236 -- 4,994,236
Corporate Bonds 231,556,280 231,556,280
Foreign Government Bonds -- 25,878,112 -- 25,878,112
Insurance-Linked Securities
Catastrophe Linked Bonds
Pandemic - Worldwide -- 150,000 -- 150,000
Collateralized Reinsurance
Multiperil - U.S. -- -- 300 300
Multiperil - Worldwide -- -- 1,922,497 1,922,497
Windstorm - Florida -- -- 271,739 271,739
Windstorm - U.S. Regional -- -- 7,350 7,350
Industry Loss Warranties
Multiperil - U.S. -- -- 500,649 500,649
Reinsurance Sidecars
Multiperil - U.S. -- -- 1,192,044 1,192,044
Multiperil - Worldwide -- -- 4,711,560 4,711,560
All Other Insurance-Linked
Securities -- 4,288,853 -- 4,288,853
Senior Secured Floating Rate
Loan Interests -- 10,020,909 -- 10,020,909
U.S. Government and Agency
Obligations -- 10,695,295 -- 10,695,295
Rights/Warrants
Metals & Mining -- 3,501 -- 3,501
Oil, Gas & Consumable Fuels 305 -- -- 305
Over The Counter (OTC) Call
Option Purchased -- -- -- --
Over The Counter (OTC) Currency
Put Option Purchased -- 164,354 -- 164,354
-------------------------------------------------------------------------------------------------------
Total Investments in Securities $1,052,905 $289,051,200 $9,466,411 $299,570,516
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
38 Pioneer Global High Yield Fund | Annual Report | 10/31/19
-------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------------------
Other Financial Instruments
Over The Counter (OTC)
Currency Call Option Written $ -- $ (14,782) $ -- $ (14,782)
Net unrealized depreciation
on forward foreign
currency exchange contracts -- (40,611) -- (40,611)
Swap contracts, at value -- (84,313) -- (84,313)
-------------------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ -- $ (139,706) $ -- $ (139,706)
=======================================================================================================
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
-----------------------------------------------------------------------------------------------------------
Insurance
Common Linked
Stocks Securities Total
-----------------------------------------------------------------------------------------------------------
Balance as of 10/31/18 $1,233,056 $13,830,093 $15,063,149
Realized gain (loss)(1) -- (101,792) (101,792)
Change in unrealized appreciation (depreciation)(2) (372,784) (872,957) (1,245,741)
Accrued discounts/premiums -- 707 707
Purchases -- 5,432,578 5,432,578
Sales -- (9,682,491) (9,682,491)
Transfers in to Level 3* -- -- --
Transfers out of Level 3* -- -- --
-----------------------------------------------------------------------------------------------------------
Balance as of 10/31/19 $ 860,272 $ 8,606,139 $ 9,466,411
-----------------------------------------------------------------------------------------------------------
(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, 2019, there were no transfers between Level 1, 2 and 3.
Net change in unrealized appreciation (depreciation) of Level 3 investments still held
and considered Level 3 at October 31, 2019: $(1,135,092)
-----------
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 39
Statement of Assets and Liabilities | 10/31/19
ASSETS:
Investments in unaffiliated issuers, at value (cost $315,092,239) $ 299,570,516
Foreign currencies, at value (cost $1,103,038) 1,105,943
Swaps collateral 576,214
Receivables --
Investment securities sold 5,091,716
Fund shares sold 138,908
Interest 4,584,629
Due from the Adviser 15,543
Other assets 30,721
-------------------------------------------------------------------------------------------------------
Total assets $ 311,114,190
=======================================================================================================
LIABILITIES:
Due to custodian $ 39,411
Payables --
Investment securities purchased 1,275,577
Fund shares repurchased 695,553
Distributions 145,428
Trustees' fees 1,037
Transfer agent fees 98,832
Due to broker for options collateral 263,075
Due to broker for swaps 183,077
Variation margin for centrally cleared swap contracts 12,377
Written options outstanding (net premiums received $(197,687)) 14,782
Net unrealized depreciation on forward foreign currency exchange contracts 40,611
Swap contracts, at value (net premiums paid $2,826) 84,313
Due to affiliates 23,324
Accrued expenses 143,385
-------------------------------------------------------------------------------------------------------
Total liabilities $ 3,020,782
=======================================================================================================
NET ASSETS:
Paid-in capital $ 609,266,071
Distributable earnings (loss) (301,172,663)
-------------------------------------------------------------------------------------------------------
Net assets $ 308,093,408
=======================================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $160,056,953/18,685,837 shares) $ 8.57
Class C (based on $34,512,961/4,037,993 shares) $ 8.55
Class Y (based on $113,523,494/13,493,747 shares) $ 8.41
MAXIMUM OFFERING PRICE PER SHARE:
Class A (based on $8.57 net asset value per share/100%-4.50%
maximum sales charge) $ 8.97
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer Global High Yield Fund | Annual Report | 10/31/19
Statement of Operations
For the Year Ended 10/31/19
INVESTMENT INCOME:
Interest from unaffiliated issuers $ 21,851,156
Dividends from unaffiliated issuers (net of foreign taxes
withheld $10,708) 736,667
----------------------------------------------------------------------------------------------------------
Total investment income $ 22,587,823
==========================================================================================================
EXPENSES:
Management fees $ 2,319,737
Administrative expense 157,074
Transfer agent fees
Class A 225,161
Class C 53,144
Class Y 134,750
Distribution fees
Class A 410,316
Class C 475,885
Shareowner communications expense 42,870
Custodian fees 42,726
Registration fees 57,638
Professional fees 47,536
Printing expense 81,267
Pricing fees 23,232
Trustees' fees 11,040
Insurance expense 6,087
Miscellaneous 64,051
----------------------------------------------------------------------------------------------------------
Total expenses $ 4,152,514
Less fees waived and expenses reimbursed by the Adviser (15,542)
----------------------------------------------------------------------------------------------------------
Net expenses $ 4,136,972
----------------------------------------------------------------------------------------------------------
Net investment income $ 18,450,851
----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $(16,922,655)
Written options 362,256
Forward foreign currency exchange contracts (254,437)
Swap contracts 512,472
Other assets and liabilities denominated in
foreign currencies 267,219 $(16,035,145)
----------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $ 17,519,328
Written options (130,105)
Forward foreign currency exchange contracts (4,992)
Swap contracts (418,670)
Other assets and liabilities denominated in
foreign currencies 37,098 $ 17,002,659
----------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ 967,513
----------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 19,418,365
==========================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 41
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/19 10/31/18
------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 18,450,851 $ 28,464,225
Net realized gain (loss) on investments (16,035,145) (4,779,834)
Change in net unrealized appreciation (depreciation)
on investments 17,002,659 (31,734,115)
------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 19,418,365 $ (8,049,724)
------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Class A ($0.44 and $0.45 per share, respectively) $ (8,505,350) $ (8,507,743)
Class C ($0.37 and $0.39 per share, respectively) (2,108,733) (5,087,160)
Class Y ($0.45 and $0.47 per share, respectively) (6,505,082) (12,802,730)
Tax return of capital:
Class A ($0.02 and $-- per share, respectively) (347,180) --
Class C ($0.02 and $-- per share, respectively) (97,011) --
Class Y ($0.02 and $-- per share, respectively) (255,692) --
------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (17,819,048) $ (26,397,633)
------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales of shares $ 47,115,843 $ 128,334,116
Reinvestment of distributions 15,175,861 22,985,297
Cost of shares repurchased (123,101,208) (368,719,457)
------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (60,809,504) $(217,400,044)
------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (59,210,187) $(251,847,401)
NET ASSETS:
Beginning of year $ 367,303,595 $ 619,150,996
------------------------------------------------------------------------------------------------------
End of year $ 308,093,408 $ 367,303,595
======================================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer Global High Yield Fund | Annual Report | 10/31/19
----------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/19 10/31/19 10/31/18 10/31/18
Shares Amount Shares Amount
----------------------------------------------------------------------------------------------------
Class A
Shares sold 2,888,912 $ 24,625,526 7,151,862 $ 61,978,329
Reinvestment of
distributions 921,422 7,839,734 825,177 7,294,518
Less shares repurchased (5,516,071) (46,818,686) (7,649,884) (67,507,298)
----------------------------------------------------------------------------------------------------
Net increase
(decrease) (1,705,737) $(14,353,426) 327,155 $ 1,765,549
====================================================================================================
Class C
Shares sold 105,877 $ 886,605 1,264,768 $ 10,969,813
Reinvestment of
distributions 220,439 1,867,374 517,538 4,577,234
Less shares repurchased (3,438,461) (29,154,418) (10,426,906) (90,716,240)
----------------------------------------------------------------------------------------------------
Net decrease (3,112,145) $(26,400,439) (8,644,600) $ (75,169,193)
====================================================================================================
Class Y
Shares sold 2,583,429 $ 21,603,712 6,297,721 $ 55,385,974
Reinvestment of
distributions 654,812 5,468,753 1,275,654 11,113,545
Less shares repurchased (5,657,715) (47,128,104) (24,359,673) (210,495,919)
----------------------------------------------------------------------------------------------------
Net decrease (2,419,474) $(20,055,639) (16,786,298) $(143,996,400)
====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 43
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/19 10/31/18 10/31/17 10/31/16* 10/31/15*
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 8.51 $ 9.12 $ 8.71 $ 8.64 $ 9.79
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) (a) $ 0.47 $ 0.49 $ 0.51 $ 0.54 $ 0.58
Net realized and unrealized gain (loss) on investments 0.05 (0.65) 0.37 0.04(b) (1.19)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.52 $ (0.16) $ 0.88 $ 0.58 $ (0.61)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.44) $ (0.45) $ (0.42) $ (0.47) $ (0.46)
Tax return of capital (0.02) -- (0.05) (0.04) (0.08)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.46) $ (0.45) $ (0.47) $ (0.51) $ (0.54)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.06 $ (0.61) $ 0.41 $ 0.07 $ (1.15)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.57 $ 8.51 $ 9.12 $ 8.71 $ 8.64
====================================================================================================================================
Total return (c) 6.27% (1.78)% 10.33% 7.14%(d) (6.36)%
Ratio of net expenses to average net assets 1.25% 1.17% 1.18% 1.19% 1.17%
Ratio of net investment income (loss) to average net assets 5.57% 5.56% 5.71% 6.50% 6.31%
Portfolio turnover rate 54% 48% 53% 40% 32%
Net assets, end of period (in thousands) $160,057 $173,588 $182,900 $201,360 $254,056
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 1.26% 1.17% 1.18% 1.19% 1.17%
Net investment income (loss) to average net assets 5.56% 5.56% 5.71% 6.50% 6.31%
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) The amount shown for a share outstanding does not correspond with the
aggregate loss on investments for the period due to the timing of sales
and repurchases of shares in relation to fluctuating market values of the
investments of the Fund.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(d) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended October 31, 2016, the total return would
have been 7.01%.
The accompanying notes are an integral part of these financial statements.
44 Pioneer Global High Yield Fund | Annual Report | 10/31/19
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/19 10/31/18 10/31/17 10/31/16* 10/31/15*
------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 8.49 $ 9.09 $ 8.69 $ 8.62 $ 9.76
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) (a) $ 0.41 $ 0.42 $ 0.44 $ 0.48 $ 0.51
Net realized and unrealized gain (loss) on investments 0.04 (0.63) 0.36 0.04(b) (1.17)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.45 $ (0.21) $ 0.80 $ 0.52 $ (0.66)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.37) $ (0.39) $ (0.35) $ (0.41) $ (0.40)
Tax return of capital (0.02) -- (0.05) (0.04) (0.08)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.39) $ (0.39) $ (0.40) $ (0.45) $ (0.48)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.06 $ (0.60) $ 0.40 $ 0.07 $ (1.14)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.55 $ 8.49 $ 9.09 $ 8.69 $ 8.62
====================================================================================================================================
Total return (c) 5.46% (2.39)% 9.46% 6.40%(d) (6.96)%
Ratio of net expenses to average net assets 1.97% 1.90% 1.89% 1.90% 1.87%
Ratio of net investment income (loss) to average net assets 4.86% 4.75% 5.01% 5.79% 5.61%
Portfolio turnover rate 54% 48% 53% 40% 32%
Net assets, end of period (in thousands) $34,513 $60,700 $143,587 $183,542 $237,163
====================================================================================================================================
* 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.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 45
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/19 10/31/18 10/31/17 10/31/16* 10/31/15*
------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 8.36 $ 8.95 $ 0.55 $ 8.49 $ 9.62
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) (a) $ 0.49 $ 0.50 $ 0.52 $ 0.57 $ 0.60
Net realized and unrealized gain (loss) on investments 0.03 (0.62) 0.36 0.01(b) (1.17)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.52 $ (0.12) $ 0.88 $ 0.58 $ (0.57)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.45) $ (0.47) $ (0.43) $ (0.48) $ (0.48)
Tax return of capital (0.02) -- (0.05) (0.04) (0.08)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.47) $ (0.47) $ (0.48) $ (0.52) $ (0.56)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.05 $ (0.59) $ 0.40 $ 0.06 $ (1.13)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.41 $ 8.36 $ 8.95 $ 8.55 $ 8.49
====================================================================================================================================
Total return (c) 6.43% (1.41)% 10.60% 7.34% (6.08)%
Ratio of net expenses to average net assets 0.96% 0.92% 0.91% 0.90% 0.87%
Ratio of net investment income (loss) to average net assets 5.85% 5.73% 5.96% 6.93% 6.60%
Portfolio turnover rate 54% 48% 53% 40% 32%
Net assets, end of period (in thousands) $113,523 $133,015 $292,664 $280,262 $485,344
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 0.96% 0.92% 0.91% 0.90% 0.87%
Net investment income (loss) to average net assets 5.85% 5.73% 5.96% 6.93% 6.60%
====================================================================================================================================
* 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.
46 Pioneer Global High Yield Fund | Annual Report | 10/31/19
Notes to Financial Statements | 10/31/19
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 four classes of shares designated as Class A, Class C, Class K
and Class Y shares. Class K shares had not commenced operations as of October
31, 2019. 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 Securities and Exchange Commission ("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.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 47
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 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
48 Pioneer Global High Yield Fund | Annual Report | 10/31/19
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.
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.
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.
Repurchase agreements are valued at par. Cash may include overnight time
deposits at approved financial institutions.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 49
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, 2019, 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 0.31% of net assets. The value of this fair valued
security was $958,285.
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
50 Pioneer Global High Yield Fund | Annual Report | 10/31/19
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.
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, 2019, 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 High Yield Fund | Annual Report | 10/31/19 51
At October 31, 2019, the Fund was permitted to carry forward indefinitely
$22,665,905 of short-term and $261,957,667 of long-term losses under the
Regulated Investment Company Modernization Act of 2010 without limitation.
The tax character of distributions paid during the years ended October 31,
2019 and October 31, 2018, were as follows:
--------------------------------------------------------------------------
2019 2018
--------------------------------------------------------------------------
Distributions paid from:
Ordinary income $17,119,165 $26,397,633
Tax return of capital 699,883 --
--------------------------------------------------------------------------
Total $17,819,048 $26,397,633
==========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2019:
--------------------------------------------------------------------------
2019
--------------------------------------------------------------------------
Distributable earnings:
Capital loss carryforward $(284,623,572)
Dividend payable (145,428)
Net unrealized depreciation (16,403,663)
--------------------------------------------------------------------------
Total $(301,172,663)
==========================================================================
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 $5,689 in underwriting commissions on the sale of Class
A shares during the year ended October 31, 2019.
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).
52 Pioneer Global High Yield Fund | Annual Report | 10/31/19
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. 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.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or
other risks affecting those industries and sectors. The Fund's investments
in foreign markets and countries with limited developing markets may
subject the Fund to a greater degree of risk than investments in a
developed market. These risks include disruptive political or economic
conditions and the imposition of adverse governmental laws or currency
exchange restrictions.
The Fund 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 mitigate, such cyber-attacks, there are inherent limitations in
such plans and systems, including the possibility that certain risks have
not been identified.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 53
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 shareowner 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 ILS. The Fund could lose a portion or all of the
principal it has invested in an ILS, and the right to additional interest
or dividend 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 and/or dividend 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.
54 Pioneer Global High Yield Fund | Annual Report | 10/31/19
The Fund's investments in ILS may include event-linked bonds. ILS also 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.
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 the Fund. Additionally,
if the counterparty becomes insolvent, there is some risk that the Fund
will not have a right to the securities, or the immediate right to sell
the securities.
As of and for the year ended October 31, 2019, the Fund had no open
repurchase agreements.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 55
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, 2019, was $461,336. Open purchased options at
October 31, 2019, 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
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
56 Pioneer Global High Yield Fund | Annual Report | 10/31/19
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,
2019, was $(43,412). Open written options contracts at October 31, 2019,
are listed in the Fund's Schedule of Investments.
L. Forward Foreign Currency Exchange Contracts
The Fund may enter into forward foreign currency exchange 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, 2019, the Fund had entered into various forward foreign
currency exchange 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 exchange contracts
open during the year ended October 31, 2019, was $(32,060). Open forward
foreign currency exchange contracts outstanding at October 31, 2019, 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 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
Pioneer Global High Yield Fund | Annual Report | 10/31/19 57
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.
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
58 Pioneer Global High Yield Fund | Annual Report | 10/31/19
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, 2019, 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, 2019, was $291,871. Open credit default swap
contracts at October 31, 2019, 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, 2019, the effective management fee (excluding waivers and/or
assumption of expenses) was equivalent to 0.70% of the Fund's average daily net
assets.
Effective October 1, 2019, the Adviser has contractually agreed to limit
ordinary operating expenses (ordinary operating expenses means all fund
expenses other than extraordinary expenses, such as litigation, taxes,
brokerage commissions and acquired fund fees and expenses) of the Fund to the
extent required to reduce Fund expenses to 1.14% and 0.90% of the average daily
net assets attributable to Class A and Class Y shares, respectively. These
expense limitations are in effect through March 1, 2021 for Class A shares and
Class Y shares. Fees waived and expenses reimbursed during the year ended
October 31, 2019 are reflected on the Statement of Operations. 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
$17,191 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at October 31, 2019.
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.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 59
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, 2019, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareowner Communications
--------------------------------------------------------------------------------
Class A $31,015
Class C 6,109
Class Y 5,746
--------------------------------------------------------------------------------
Total $42,870
================================================================================
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 $6,133 in distribution fees payable to the Distributor at
October 31, 2019.
In addition, redemptions of Class A and Class C 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, 2019, CDSCs in the amount of $1,038 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 credit
facility or the limits set for borrowing by the Fund's prospectus and the 1940
60 Pioneer Global High Yield Fund | Annual Report | 10/31/19
Act. Effective August 1, 2018, the Fund participates in a credit facility in
the amount of $250 million. Under such facility, depending on the type of loan,
interest on borrowings is payable at the London Interbank Offered Rate
("LIBOR") plus a credit spread. The Funds also 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, 2019, the Fund had no borrowings
under the credit facility.
6. Master Netting Agreement
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all of 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
Pioneer Global High Yield Fund | Annual Report | 10/31/19 61
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 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, 2019.
--------------------------------------------------------------------------------------------------------
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 $164,354 $(14,782) $ -- $(149,572) $ --
JPMorgan
Chase
Bank NA 416 (416) -- -- --
State Street
Bank &
Trust Co. 58,346 (8,378) -- -- 49,968
--------------------------------------------------------------------------------------------------------
Total $223,116 $(23,576) $ -- $(149,572) $49,968
========================================================================================================
-------------------------------------------------------------------------------------------------------------
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 $ 14,782 $(14,782) $ -- $ -- $ --
Brown
Brothers & Co. 6,911 -- -- -- 6,911
Citibank N.A. 4,288 -- -- -- 4,288
HSBC Bank 72,613 -- -- -- 72,613
Goldman Sachs
International 58,067 -- -- (58,067) --
JPMorgan
Chase Bank NA 7,183 (416) -- -- 6,767
State Street
Bank &
Trust Co. 8,378 (8,378) -- -- --
--------------------------------------------------------------------------------------------------------------
Total $172,222 $(23,576) $ -- $(58,067) $90,579
==============================================================================================================
(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.
62 Pioneer Global High Yield Fund | Annual Report | 10/31/19
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, 2019, was as follows:
----------------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Assets and Liabilities Rate Risk Risk Rate Risk Risk Risk
----------------------------------------------------------------------------------------
Assets
Options purchased* $ -- $ -- $164,354 $ -- $ --
----------------------------------------------------------------------------------------
Total Value $ -- $ -- $164,354 $ -- $ --
========================================================================================
Liabilities
Written options
outstanding $ -- $ -- $ 14,782 $ -- $ --
Net unrealized
depreciation on
forward foreign
currency contracts -- -- 40,611 -- --
Swap contracts,
at value -- 84,313 -- -- --
----------------------------------------------------------------------------------------
Total Value $ -- $84,313 $ 55,393 $ -- $ --
========================================================================================
* 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.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 63
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, 2019 was as follows:
------------------------------------------------------------------------------------------------
Foreign
Statement Interest Credit Exchange Equity Commodity
of Operations Rate Risk Risk Rate Risk Risk Risk
------------------------------------------------------------------------------------------------
Net realized gain (loss) on:
Written options $ -- $ -- $ 362,256 $ -- $ --
Forward foreign
currency contracts -- -- (254,437) -- --
Swap contracts -- 512,472 -- -- --
------------------------------------------------------------------------------------------------
Total Value $ -- $ 512,472 $ 107,819 $ -- $ --
================================================================================================
Change in net unrealized
appreciation
(depreciation) on:
Options purchased** $ -- $ -- $(293,077) $ -- $ --
Written options -- -- (130,105) -- --
Forward foreign
currency contracts -- -- (4,992) -- --
Swap contracts -- (418,670) -- -- --
------------------------------------------------------------------------------------------------
Total Value $ -- $(418,670) $(428,174) $ -- $ --
================================================================================================
** 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.
64 Pioneer Global High Yield Fund | Annual Report | 10/31/19
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VII and the Shareowners of
Pioneer Global High Yield Fund:
--------------------------------------------------------------------------------
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Pioneer
Global High Yield Fund (the "Fund") (one of the funds constituting Pioneer
Series Trust VII (the "Trust")), including the schedule of investments, as of
October 31, 2019, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, the financial highlights for each of the three years in the
period then ended and the related notes (collectively referred to as the
"financial statements"). The financial highlights for the periods ended 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 (one of the funds constituting Pioneer Series Trust VII)
at October 31, 2019, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and its financial highlights for each of the three years in the period then
ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust'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 Trust is not required to have,
nor were we engaged to perform, an audit of the Trust'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 Trust's internal
control over financial reporting. Accordingly, we express no such opinion.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 65
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, 2019, 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 20, 2019
66 Pioneer Global High Yield Fund | Annual Report | 10/31/19
Additional Information (unaudited)
The percentages of the Fund's ordinary income distributions that are exempt
from nonresident alien (NRA) tax withholding resulting from qualified interest
income was 48.70%.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 67
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 2019 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 2019,
July 2019 and September 2019. 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 2019, 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 2019, 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 2019.
At a meeting held on September 17, 2019, 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
68 Pioneer Global High Yield Fund | Annual Report | 10/31/19
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 | 10/31/19 69
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
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 noted the resource
commitment necessary to manage a fund that invests significantly in non-U.S.
securities. 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, effective October 1, 2019.
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
70 Pioneer Global High Yield Fund | Annual Report | 10/31/19
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.
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
Pioneer Global High Yield Fund | Annual Report | 10/31/19 71
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.
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 $1.6
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.
72 Pioneer Global High Yield Fund | Annual Report | 10/31/19
Trustees, Officers and Service Providers
Investment Adviser and Administrator
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
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/us. 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, except for Mr. Bock and Ms. Durnin, serve as Trustees of
each of the 45 U.S. registered investment portfolios for which Amundi Pioneer
serves as investment adviser (the "Pioneer Funds"). Mr. Bock and Ms. Durnin
serve as Trustees of 39 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 | 10/31/19 73
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
Chairman of the Board Serves until a successor present); Chairman (2008 - 2013) and Chief Financial Solutions,
and Trustee trustee is elected or earlier Executive Officer (2008 - 2012), Quadriserv, Inc. (investor
retirement or removal. Inc. (technology products for securities communications and
lending industry); and Senior Executive Vice securities processing
President, The Bank of New York (financial provider for financial
and securities services) (1986 - 2004) services industry)
(2009 - present);
Director, Quadriserv,
Inc. (2005 - 2013);
and Commissioner, New
Jersey State Civil
Service Commission
(2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
John E. Baumgardner, Jr. (68) Trustee since 2019. Of Counsel (2019 - present), Partner Chairman, The Lakeville
Trustee Serves until a successor (1983-2018), Sullivan & Cromwell LLP Journal Company,
trustee is elected or earlier (law firm). LLC, (privately-held
retirement or removal. community newspaper
group) (2015 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (75) Trustee since 2005. Managing Partner, Federal City Capital Director of New York
Trustee Serves until a successor Advisors (corporate advisory services Mortgage Trust
trustee is elected or earlier company) (1997 - 2004 and 2008 - present); (publicly-traded
retirement or removal. Interim Chief Executive Officer, Oxford mortgage REIT)
Analytica, Inc. (privately held research and (2004 - 2009, 2012 -
consulting company) (2010); Executive Vice present); Director
President and Chief Financial Officer, of The Swiss
I-trax, Inc. (publicly traded health care Helvetia Fund, Inc.
services company) (2004 - 2007); and (closed-end fund)
Executive Vice President and Chief Financial (2010 - 2017);
Officer, Pedestal Inc. (internet-based Director of Oxford
mortgage trading company) (2000 - 2002); Analytica, Inc.
Private Consultant (1995 - 1997); Managing (2008 - 2015); and
Director, Lehman Brothers (1992 - 1995); and Director of
Executive, The World Bank (1979 - 1992) Enterprise Community
Investment, Inc.
(privately-held
affordable housing
finance company)
(1985 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
74 Pioneer Global High Yield Fund | Annual Report | 10/31/19
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Diane Durnin (62) Trustee since 2019. Managing Director - Head of Product Strategy None
Trustee Serves until a successor and Development, BNY Mellon Investment
trustee is elected or earlier Management (2012-2018); Vice Chairman - The
retirement or removal. Dreyfus Corporation (2005 - 2018): Executive
Vice President Head of Product, BNY Mellon
Investment Management (2007-2012); Executive
Director- Product Strategy, Mellon Asset
Management (2005-2007); Executive Vice
President Head of Products, Marketing and
Client Service, Dreyfus Corporation
(2000-2005); and Senior Vice President
Strategic Product and Business Development,
Dreyfus Corporation (1994-2000)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (75) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon
Trustee Serves until a successor Economy, Harvard University (1972 - present) Institutional Funds
trustee is elected or earlier Investment Trust and
retirement or removal. Mellon Institutional
Funds Master Portfolio
(oversaw 17 portfolios
in fund complex)
(1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (72) Trustee since 2001. Founding Director, Vice-President and None
Trustee Serves until a successor Corporate Secretary, The Winthrop Group,
trustee is elected or earlier Inc. (consulting firm) (1982 - present);
retirement or removal. Desautels Faculty of Management, McGill
University (1999 - 2017); and Manager of
Research Operations and 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 from (healthcare workers union pension funds)
2014 - 2017). Serves until a (2001 - present); Vice President -
successor trustee is elected International Investments Group, American
or earlier retirement International Group, Inc. (insurance
or removal. company) (1993 - 2001); Vice President -
Corporate Finance and Treasury Group,
Citibank, N.A. (1980 - 1986 and 1990 -
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)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/19 75
Independent Trustees (continued)
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (71) Trustee since 2001. President and Chief Executive Officer, Director of New
Trustee Serves until a successor Metric Financial Inc. (formerly known as America High Income
trustee is elected or earlier Newbury Piret Company) (investment banking Fund, Inc. (closed-end
retirement or removal. firm) (1981 - present) investment company)
(2004 - present); and
Member, Board of
Governors, Investment
Company Institute
(2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (72) Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a successor (2012 - present); Executive Vice President,
trustee is elected or earlier BNY Mellon (financial and investment company
retirement or removal. services) (1969 - 2012); Director, BNY
International Financing Corp. (financial
services) (2002 - 2012); Director, Mellon
Overseas Investment Corp. (financial
services) (2009 - 2012); Director, Financial
Models (technology) (2005-2007); Director,
BNY Hamilton Funds, Ireland (offshore
investment companies) (2004-2007);
Chairman/Director, AIB/BNY Securities
Services, Ltd., Ireland (financial services)
(1999-2006); and Chairman, BNY Alternative
Investment Services, Inc. (financial
services) (2005-2007)
------------------------------------------------------------------------------------------------------------------------------------
76 Pioneer Global High Yield Fund | Annual Report | 10/31/19
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 (57)* Trustee since 2017. Director, CEO and President of Amundi None
Trustee, President and Serves until a successor Pioneer Asset Management USA, Inc. (since
Chief Executive Officer trustee is elected or earlier September 2014); Director, CEO and President
retirement or removal of Amundi Pioneer Asset Management, Inc.
(since September 2014); Director, CEO and
President of Amundi 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); Director of Institutional Business,
CEO of International, Eaton Vance Management
(2005 - 2010); and Director of Amundi USA,
Inc. (since 2017)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (61)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a successor 2008) and Chief Investment Officer, U.S.
trustee is elected or earlier (since 2010) of Amundi Pioneer Asset
retirement or removal Management USA, Inc.; Director and Executive
Vice President and Chief Investment Officer,
U.S. of Amundi Pioneer (since 2008);
Executive Vice President and Chief
Investment Officer, U.S. of Amundi Pioneer
Institutional Asset Management, Inc. (since
2009); Portfolio Manager of Amundi Pioneer
(since 1999); and Director of Amundi USA,
Inc. (since 2017)
------------------------------------------------------------------------------------------------------------------------------------
* 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.
Pioneer Global High Yield Fund | Annual Report | 10/31/19 77
Fund Officers
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (54) Since 2003. Serves at the Vice President and Associate General Counsel None
Secretary and Chief discretion of the Board of Amundi Pioneer since January 2008;
Legal Officer Secretary and 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 (58) Since 2010. Serves at the Fund Governance Director of Amundi Pioneer None
Assistant Secretary discretion of the Board since December 2006 and Assistant Secretary
of all the 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 (56) Since 2010. Serves at the Senior Counsel of Amundi Pioneer since May None
Assistant Secretary discretion of the Board 2013 and Assistant Secretary of all the
Pioneer Funds since June 2010; and Counsel
of Amundi Pioneer from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (59) Since 2008. Serves at the Vice President - Fund Treasury of Amundi None
Treasurer and Chief discretion of the Board Pioneer; Treasurer of all of the Pioneer
Financial and Funds since March 2008; Deputy Treasurer of
Accounting Officer Amundi 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 (54) Since 2001. Serves at the Director - Fund Treasury of Amundi Pioneer; None
Assistant Treasurer discretion of the Board and Assistant Treasurer of all of the
Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (61) Since 2002. Serves at the Senior Manager - Fund Treasury of Amundi None
Assistant Treasurer discretion of the Board Pioneer; and Assistant Treasurer of all of
the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
78 Pioneer Global High Yield Fund | Annual Report | 10/31/19
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
John Malone (48) Since 2018. Serves at the Managing Director, Chief Compliance Officer None
Chief Compliance Officer discretion of the Board of Amundi Pioneer Asset Management; Amundi
Pioneer 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 (48) Since 2006. Serves at the Vice President - Amundi Pioneer Asset None
Anti-Money discretion of the Board Management; and Anti-Money Laundering
Laundering Officer Officer of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global High Yield Fund | Annual Report | 10/31/19 79
This page is for your notes.
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Pioneer Global High Yield Fund | Annual Report | 10/31/19 81
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82 Pioneer Global High Yield Fund | Annual Report | 10/31/19
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Pioneer Global High Yield Fund | Annual Report | 10/31/19 83
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84 Pioneer Global High Yield Fund | Annual Report | 10/31/19
How to Contact Amundi Pioneer
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Call us for:
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--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 219427
Kansas City, MO 64121-9427
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/us
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year as
an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form
N-PORT by visiting the Commission's web site at https://www.sec.gov.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com/us
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
[C] 2019 Amundi Pioneer Asset Management 19440-13-1219
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)).
Mr. David R. Bock, 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, 2019 and $80,000
for the year ended October 31, 2018.
(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.
Audit-Related Fees
There were no audit-related services in 2019 or 2018.
(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, 2019 and $20,230
for the year ended October 31, 2018.
(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.
Other Fees
There were no other fees in 2019 or 2018.
(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 2019 and 2018, 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, 2019 and $20,230 for the year
ended October 31, 2018.
(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.
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 December 27, 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 December 27, 2019
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 27, 2019
* Print the name and title of each signing officer under his or her signature.