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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 811-21823
Pioneer Series Trust V
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: August 31
Date of reporting period: September 1, 2013 through August 31, 2014
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 Absolute Return
Bond Fund
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Annual Report | August 31, 2014
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Ticker Symbols:
Class A ABRDX
Class C ARCBX
Class Y ARBYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 26
Notes to Financial Statements 33
Report of Independent Registered Public Accounting Firm 51
Trustees, Officers and Service Providers 52
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 1
President's Letter
Dear Shareowner,
As we move into the final few months of 2014, we remain confident that U.S.
economic growth remains sustainable, if moderately paced. The weather-related
slowdown in the first quarter is behind us and labor market data continues to
show steady improvement. The number of people filing initial unemployment claims
is at the lowest level since the boom years of 2005-06, the number of job
openings is at the highest level since 2001, and unemployment is down to just
over 6%. Barring an external shock, we think it is likely that the domestic
economic expansion will continue until the economy reaches full employment.
Until then, remaining labor market slack and moderate capacity utilization offer
the potential for continuing non-inflationary growth.
The global economic picture is somewhat less rosy, as the Russia/Ukraine
conflict is exacting a toll on the European economy, Japan is working through
the impact of a large tax increase, and the growth of China's investment-driven
economy is slowing. On balance, though, we expect the global economy to continue
to grow in the second half of 2014, further supporting the U.S. economy.
While our outlook is constructive, the risk of an adverse "external" shock, such
as a military conflict, remains. While many such risks may already be "priced
into" the market, we caution against complacency and believe investors should
always be prepared for possible market volatility.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns.
2 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
On August 11, 2014, I joined Pioneer as the new President and CEO of Pioneer
Investment Management USA, Inc. Since 1928, Pioneer's investment professionals
have worked on behalf of our shareholders to find attractive investment
opportunities, incorporating our proprietary research and prudent risk
management techniques to construct our portfolios.
In my role, I will focus on preserving many of the rich qualities of our
history, while maintaining balance with the demands of this ever-changing world
in which we live.
We greatly appreciate your trust in us and we encourage you to seek investment
guidance and advice from your financial advisor to discuss your goals and
develop an overall investment plan or framework that addresses both your short-
and long-term goals.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA, Inc.
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. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 3
Portfolio Management Discussion | 8/31/14
In the following interview, portfolio managers Tanguy Le Saout and Cosimo
Marasciulo discuss the factors that influenced Pioneer Absolute Return Bond
Fund's performance for the abbreviated annual reporting period beginning with
the Fund's inception on January 30, 2014 and ending August 31, 2014, as well as
their investment approach in managing the Fund. Mr. Le Saout, Head of European
Fixed Income and a portfolio manager based in Pioneer's Dublin office, and Mr.
Marasciulo, Head of Government Bonds and a portfolio manager at Pioneer, also
based in Dublin, are responsible for the day-to-day management of the Fund.
Q Can you provide an overview of the Fund's investment approach?
A Certainly. The big picture is that we aim to have the Fund's annualized
return exceed that of three-month Treasury bills on a rolling three-year
annualized basis, while targeting portfolio volatility that is similar to
that of T-bills as well. To achieve that goal, we seek to provide positive
absolute Fund returns over most trailing 12-month periods, regardless of
market conditions.
Obviously, if we are going to be successful in achieving our objectives, the
Fund's returns cannot be overly dependent on the price performance of one or
more fixed-income categories. Therefore, in seeking positive Fund returns
regardless of market conditions, we divide the portfolio into two distinct
parts.
The core of the Fund's portfolio, representing around 70% of assets, is
currently invested in three-month Treasury bills. The other 30% of assets is
invested in a range of strategies, each of which is designed to provide the
Fund with alpha, or excess return. (Alpha is the additional return produced
from a portfolio manager above that of a passive market index). Each
strategy is focused on a different segment of the fixed-income market.
Importantly, each strategy seeks to benefit from both positive and negative
markets. This means the Fund is positioned in some asset categories within
the broad bond market through long exposures, while also positioned against
other asset categories via short exposures. Each alpha-oriented strategy is
managed independently by a specialist in that particular segment of the
market who is responsible for implementing his or her individual views.
This, in our view, provides the Fund with an added level of diversification*
across different asset classes when compared with investment vehicles where
asset allocation and security selection are more closely tied together.
* Diversification does not assure a profit nor protect against loss in a
declining market.
4 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
Importantly, we closely track the portfolio risks we have assumed across all
of the alpha-related strategies, and operate within an overall "risk budget"
for the portfolio based on our objective of avoiding negative Fund returns
over a 12-month period.
Q How did the Fund perform during the period between January 30, 2014 and
August 31, 2014?
A Pioneer Absolute Return Bond Fund's Class A shares returned -1.20% at net
asset value during the period between January 30, 2014, and August 31, 2014.
During the same period, the Fund's benchmark, the Bank of America Merrill
Lynch (BofA ML) 3-Month U.S. Treasury-Bill Index, returned 0.02%.
Q Can you review the principal portfolio investment strategies you implemented
during the Fund's abbreviated annual reporting period ended August 31, 2014,
and how did those strategies affect the Fund's performance?
A In addition to the core position in 3-month Treasuries, we have implemented
a number of different positions across the alpha portion of the Fund's
portfolio. Looking at the U.S. market, our assessment is that bond prices
have not reflected the likely extent of interest-rate increases as the U.S.
Federal Reserve (the Fed) continues to remove its very accommodative
monetary policy stance. In particular, we expect shorter-term rates to be
impacted meaningfully once markets digest the outlook for a higher Federal
funds rate.
We have used a variety of instruments to implement a portfolio exposure we
believe will benefit the Fund's performance under such a scenario; notably,
a short position in the five-year Treasury bond. The positioning was the
leading detractor from performance during the period from the Fund's
inception through August 31, 2014, as U.S. rates finished lower. Offsetting
that underperformance to some degree was currency positioning. We have been
positioning the Fund in anticipation of the U.S. dollar strengthening
against other major currencies, including the euro, the British pound and
the Japanese yen, and that stance added to performance during the
abbreviated annual reporting period.
The Fund's quantitative fixed-income strategies contributed positively to
performance during the period. In particular, we implemented a number of
successful trades using a multi-factor model that seeks to predict bond
prices in major global markets based on economic and financial market
variables. For example, our momentum-based model that seeks to predict price
trends in the German 10-year bond worked out well and contributed to the
Fund's performance.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 5
The Fund's inflation strategy added to returns during the period, as we
positioned the portfolio for an overall rise in inflation to more normal
levels in major markets, including the U.S. We are maintaining this stance
on the view that Europe's economy has likely bottomed out, and in
recognition that Japan's policymakers continue to strongly focus on
promoting consumption. A number of trades that paired a long portfolio
position in the credit of one issuer with a short position in the credit of
another issuer within the same industry also performed well during the
annual reporting period.
Our efforts to implement relative value trades that sought to benefit from
anomalies, either along a single country's yield curve or between the yield
curves of two countries, detracted from the Fund's results during the
period. Finally, we positioned the Fund for a rise in U.K. interest rates,
given the robust recovery there, but so far that positioning has been a
negative factor in the Fund's performance.
Q What is your assessment of the current macroeconomic climate and the
opportunities it may present?
A We continue to expect volatility to be a feature of the investment backdrop
as it becomes even clearer that the Fed is no longer prepared to step in and
backstop conditions each time there is a run of disappointing economic
releases. The Fed's bond purchases (quantitative easing) are on a track to
cease by the end of the calendar year, and Fed Chair Yellen recently
suggested an increase in the Federal funds rate could follow a few months
after the tapering of quantitative easing is complete. In our view, the
markets have not fully digested the implications of this policy shift for
U.S. interest rates, or for the U.S. dollar as rates rise.
Europe continues to deal with a two-tier economy, despite its common
currency. The European Central Bank (ECB) is focused on avoiding deflation,
having implemented interest-rate cuts and recently announced a possible
program of asset-backed security purchases. We do not expect the ECB to
engage in full-blown quantitative easing involving sovereign-bond purchases,
however, and at current levels we do not see value in European bonds
overall.
These are among the macroeconomic factors we will monitor closely as we
structure the alpha portion of the Fund's portfolio.
6 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
Please refer to the Schedule of Investments on pages 16-25 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
Pioneer Absolute Return Bond invests in derivatives, such as options, futures,
inverse floating-rate obligations, and swaps, among others, which can be
illiquid, may disproportionately increase losses, and have a potentially large
impact on the performance of the portfolio.
The Fund may take short positions, which involves leverage of its assets and
presents additional risks.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the Fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund employs leverage, which increases the volatility of investment returns
and subjects the Fund to magnified losses.
The Fund is subject to duration risk. Duration seeks to measure the price
sensitivity of a fixed income security to interest rates. The longer a
portfolio's duration, the more sensitive it will be to changes in interest
rates.
Investments in fixed-income securities involve interest rate, credit, inflation,
and reinvestment risks.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities 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.
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.
Investments in high-yield or lower-rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
The securities issued by U.S. Government-sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
The portfolio 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 invest in subordinated securities, which may be disproportionately
adversely affected by a default or even a perceived decline in creditworthiness
of the issuer.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 7
The Fund may invest in event-linked bonds, on which the return of principal and
the payment of interest are contingent on the non-occurrence of a pre-defined
"trigger" event, such as a hurricane or an earthquake of a specific magnitude.
The Fund may invest in floating-rate loans; the value of collateral, if any,
securing a floating-rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
There is no assurance that these and other strategies used by the Fund will be
successful. The Fund is not intended to outperform stocks and bonds during
strong market rallies. Please see the prospectus for a more complete discussion
of the Fund's risks.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments 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. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
8 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
Portfolio Summary | 8/31/14
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Securities 76.9%
Foreign Government Bonds 21.7%
Swaptions 1.3%
Options 0.1%
Geographical Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
United States 73.1%
Ireland 6.6%
Japan 5.9%
Italy 5.5%
United Kingdom 4.9%
France 2.6%
Spain 1.4%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)*
1. U.S. Treasury Bills, 0.0%, 2/5/15 16.52%
--------------------------------------------------------------------------------
2. U.S. Treasury Bills, 0.0%, 7/23/15 12.11
--------------------------------------------------------------------------------
3. U.S. Treasury Bills, 0.0%, 4/2/15 11.01
--------------------------------------------------------------------------------
4. U.S. Treasury Bills, 0.0%, 9/18/14 9.91
--------------------------------------------------------------------------------
5. U.S. Treasury Bills, 0.0%, 12/11/14 9.91
--------------------------------------------------------------------------------
6. U.S. Treasury Bills, 0.0%, 11/13/14 7.32
--------------------------------------------------------------------------------
7. Japanese Government CPI Linked Bond, 0.1%, 9/10/23 5.66
--------------------------------------------------------------------------------
8. United Kingdom Gilt Inflation Linked, 0.125%, 11/22/19 4.93
--------------------------------------------------------------------------------
9. U.S. Treasury Bills, 0.0%, 3/5/15 4.62
--------------------------------------------------------------------------------
10. Italy Buoni Poliennali Del Tesoro, 2.35%, 9/15/19 4.04
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 9
Prices and Distributions | 8/31/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/14 1/30/14*
--------------------------------------------------------------------------------
A $9.88 $10.00
--------------------------------------------------------------------------------
C $9.84 $10.00
--------------------------------------------------------------------------------
Y $9.90 $10.00
--------------------------------------------------------------------------------
Distributions per Share: 1/30/14-8/31/14*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ -- $ -- $ --
--------------------------------------------------------------------------------
C $ -- $ -- $ --
--------------------------------------------------------------------------------
Y $ -- $ -- $ --
--------------------------------------------------------------------------------
Index Definitions
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The Bank of America Merrill Lynch (BofA ML) 3-month US Treasury Bill Index is an
unmanaged market index of U.S. Treasury securities maturing in 90 days, that
assumes reinvestment of all income. 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 11-13.
* The Fund commenced operations on January 30, 2013.
10 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
Performance Update | 8/31/14 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 Absolute Return Bond Fund at public
offering price during the periods shown, compared to that of the Bank of America
Merrill Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
Net Public BofA ML
Asset Offering 3-Month
Value Price U.S. Treasury
Period (NAV) (POP) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -1.20 -5.64 0.02%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated January 10, 2014,
as revised January 30, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.34% 1.15%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Absolute BofA ML 3-month
Return Bond Fund US Treasury Bill Index
1/31/2014 $ 9,550 $ 10,000
8/31/2014 $ 9,436 $ 10,002
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through February 1, 2015, for Class A shares. There can be no assurance
that 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.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 11
Performance Update | 8/31/14 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 Absolute Return Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -1.60 -2.58 0.02%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated January 10, 2014,
as revised January 30, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.09% 1.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Absolute BofA ML 3-month
Return Bond Fund US Treasury Bill Index
1/31/2014 $ 10,000 $ 10,000
8/31/2014 $ 9,742 $ 10,002
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through February 1, 2015, for Class C shares. There can be no assurance
that 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.
12 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
Performance Update | 8/31/14 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 Absolute Return Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -1.00 -1.00 0.02%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated January 10, 2014,
as revised January 30, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.09% 0.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Absolute BofA ML 3-month
Return Bond Fund US Treasury Bill Index
1/31/2014 $ 5,000,000 $ 5,000,000
8/31/2014 $ 4,950,000 $ 5,001,045
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class 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 February 1, 2015, for Class Y shares. There can be no assurance
that 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.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Absolute Return Bond Fund
Based on actual returns from March 1, 2014, through August 31, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 3/1/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 8/31/14 $ 990.97 $ 987.95 $ 992.98
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.07 $ 8.77 $ 3.77
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.01%,
1.75% and 0.75% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the partial year period).
14 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
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 Absolute Return Bond Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2014, through August 31, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 3/1/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 8/31/14 $1,020.11 $1,016.38 $1,021.42
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 5.14 $ 8.89 $ 3.82
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.01%,
1.75% and 0.75% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the partial year period).
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 15
Schedule of Investments | 8/31/14
---------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS -- 65.5%
1,330,000 AA+/Aaa U.S. Treasury Bills, 0.0%, 11/13/14 (b) $ 1,329,953
1,800,000 AA+/Aaa U.S. Treasury Bills, 0.0%, 12/11/14 (b) 1,799,899
3,000,000 AA+/Aaa U.S. Treasury Bills, 0.0%, 2/5/15 (b)(c) 2,999,544
840,000 AA+/Aaa U.S. Treasury Bills, 0.0%, 3/5/15 (b) 839,796
2,000,000 AA+/Aaa U.S. Treasury Bills, 0.0%, 4/2/15 (b) 1,999,470
2,200,000 AA+/Aaa U.S. Treasury Bills, 0.0%, 7/23/15 (b) 2,198,566
1,800,000 AA+/Aaa U.S. Treasury Bills, 0.0%, 9/18/14 (b) 1,799,986
-------------
$ 12,967,214
---------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(Cost $12,965,443) $ 12,967,214
---------------------------------------------------------------------------------------
FOREIGN GOVERNMENT
BONDS -- 24.7%
EUR 250,000 AA/Aa1 France Government Bond OAT, 4.0%,
4/25/55 $ 474,756
EUR 220,000 A-/Baa1 Ireland Government Bond, 3.4%, 3/18/24 329,371
EUR 240,000 A-/Baa1 Ireland Government Bond, 3.9%, 3/20/23 373,092
EUR 300,000 A-/Baa1 Ireland Government Bond, 5.0%, 10/18/20 489,062
EUR 509,499 NR/Baa2 Italy Buoni Poliennali Del Tesoro, 2.35%,
9/15/19 734,148
EUR 170,000 NR/Baa2 Italy Buoni Poliennali Del Tesoro, 4.75%,
9/1/44 269,276
JPY 3,597,405 AA-/Aa3 Japanese Government CPI Linked Bond,
0.1%, 3/10/24 37,270
JPY 99,264,000 AA-/Aa3 Japanese Government CPI Linked Bond,
0.1%, 9/10/23 1,028,400
EUR 150,000 BBB/Baa2 Spain Government Bond, 5.15%,
10/31/44 258,952
GBP 508,378 AAA/Aa1 United Kingdom Gilt Inflation Linked,
0.125%, 11/22/19 895,344
-------------
$ 4,889,671
---------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $4,706,872) $ 4,889,671
---------------------------------------------------------------------------------------
PURCHASED PUT OPTIONS -- 0.3%
120,000 Put EUR/Call NOK, 8.30,
9/23/14 $ 3,057
170,000 Put EUR/Call SEK, 9.28,
10/3/14 3,026
90,000 Put EUR/Call USD, 1.315, 11/26/14 1,391
150,000 Put EUR/Call USD, 1.319, 9/2/14 879
150,000 Put EUR/Call USD, 1.337, 9/11/14 3,555
150,000 Put EUR/Call USD, 1.34, 6/25/15 6,666
170,000 Put EUR/Call USD, 1.3615,6/23/15 9,965
The accompanying notes are an integral part of these financial statements.
16 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
---------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------
PURCHASED PUT OPTIONS -- (continued)
90,000 Put EUR/Call USD Knock-out (Up-and-in)
(1.326), 1.32, 9/25/14 $ 177
120,000 Put GBP/Call USD, 1.657, 9/9/14 604
120,000 Put GBP/Call USD, 1.697,11/26/14 5,477
120,000 Put GBP/Call USD Knock-out
(Down-and-out) (1.62), 1.65,9/9/14 250
240,000 Put GBP/Call USD Knock-out
(Down-and-out) (1.6495), 1.69, 9/9/14 8,084
100,000 Put USD/Call INR, 62.2, 12/19/14 2,114
110,000 Put USD/Call TRY, 2.165, 1/7/15 1,388
160,000 Put USD/Call TRY, 2.173, 1/13/15 2,265
---------------------------------------------------------------------------------------
TOTAL PURCHASED PUT OPTIONS
(Premiums paid $26,344) $ 48,898
---------------------------------------------------------------------------------------
PURCHASED CALL OPTIONS -- 0.1%
170,000 Call EUR/Put SEK, 9.5,10/3/14 $ 94
170,000 Call EUR/Put USD, 1.3615, 6/23/15 2,390
150,000 Call USD/Put JPY, 103, 11/26/14 2,766
150,000 Call USD/Put JPY, 107, 5/12/15 1,952
400,000 Call USD/Put KRW Knock-out (Up-and-out)
(1130) 1045,12/18/14 2,877
160,000 Call USD/Put MXN Knock-out (Up-and-out)
(13.8) 13.1, 10/17/14 835
200,000 Call USD/Put SGD, 1.25, 6/25/15 2,795
200,000 Call USD/Put TWD, 30, 6/26/15 1,617
---------------------------------------------------------------------------------------
TOTAL PURCHASED CALL OPTIONS
(Premiums paid $19,221) $ 15,326
---------------------------------------------------------------------------------------
PURCHASED SWAPTIONS -- 0.6%
500,000 Fixed 6/27/26 EUR 2.04% (SWP
6/23/16 Right to pay fixed) $ 8,691
500,000 Fixed 6/27/26 USD 3.42% (SWP
6/23/16 Right to pay fixed) 12,926
2,820,000 Fixed 5/12/17 EUR 0.57% (SWP
5/8/15 Right to receive fixed) 20,375
500,000 Fixed 6/27/26 USD 3.42% (SWP
6/23/16 Right to receive fixed) 27,918
500,000 Fixed 6/27/26 EUR 2.04% (SWP
6/23/16 Right to receive fixed) 44,475
---------------------------------------------------------------------------------------
TOTAL PURCHASED SWAPTIONS
(Premiums paid $90,595) $ 114,385
---------------------------------------------------------------------------------------
INTEREST RATE SWAPTIONS -- 0.6%
58,600,000 Fixed 6/3/35 JPY 1.62% (SWP 6/1/15
Right to pay fixed) $ 5,600
1,950,000 Fixed 4/4/49 USD 4.18% (SWP 4/2/19
Right to pay fixed) 117,084
---------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 17
Schedule of Investments | 8/31/14 (continued)
---------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------
TOTAL INTEREST RATE SWAPTIONS
(Premiums paid $219,100) $ 122,684
---------------------------------------------------------------------------------------
TOTAL INVESTMENT IN
SECURITIES -- 91.8%
(Cost $18,027,575) (a) $ 18,158,178
---------------------------------------------------------------------------------------
WRITTEN PUT OPTIONS -- (0.0)%+
(170,000) Put EUR/Call SEK, 9.28,
10/3/14 $ (3,027)
(150,000) Put USD/Call JPY, 98,11/26/14 (156)
(110,000) Put USD/Call TRY, 2.165, 1/7/15 (1,388)
---------------------------------------------------------------------------------------
TOTAL WRITTEN PUT OPTIONS
(Premiums received $(7,125)) $ (4,571)
---------------------------------------------------------------------------------------
WRITTEN CALL OPTIONS -- (0.0)%+
(170,000) Call EUR/Put SEK, 9.5,10/3/14 $ (94)
(150,000) Call USD/Put JPY, 107.5, 11/26/14 (419)
(110,000) Call USD/Put TRY, 3.03, 1/7/15 (49)
(120,000) Call EUR/Put NOK, 8.5, 9/23/14 (15)
---------------------------------------------------------------------------------------
TOTAL WRITTEN CALL OPTIONS
(Premiums received $(4,237)) $ (577)
---------------------------------------------------------------------------------------
WRITTEN INTEREST RATE
SWAPTION -- (0.6)%
(7,600,000) Fixed 4/2/19 USD 4.63% (SWP 4/7/14
Right to pay fixed) $ (110,738)
---------------------------------------------------------------------------------------
TOTAL WRITTEN INTEREST
RATE SWAPTION
(Premiums received $(200,002)) $ (110,738)
---------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 8.8% $ 1,744,376
---------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 19,786,668
=======================================================================================
+ Amount rounds to less than 0.1% or (0.1)%.
NR Not rated by either S&P or Moody's.
(a) At August 31, 2014, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $18,027,575 was
as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 255,174
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (124,571)
----------
Net unrealized appreciation $ 130,603
==========
(b) Security issued with a zero coupon. Income is earned through
accretion of discount.
(c) All or a portion of this security has been pledged in connection with
open futures and swap contracts.
The accompanying notes are an integral part of these financial statements.
18 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR European Euro
GBP British Pound Sterling
JPY Japanese Yen
NOK Norwegian Krone
SEK Swedish Krone
TRY Turkish Lira
Purchases and sales of securities (excluding temporary cash investments) for the
period ended August 31, 2014 aggregated $6,144,932 and $1,571,997, respectively.
CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
--------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
--------------------------------------------------------------------------------------------------------
EUR (320,000) Barclays Bank Markit iTraxx 1.00% 6/20/19 $ (8,263) $ (574)
Plc Europe Index
EUR (250,000) Credit Suisse Carrefour SA 1.00% 3/20/19 (2,003) (5,390)
International
EUR (280,000) Credit Suisse Cie De 1.00% 6/20/19 (6,915) 1,175
International Saint-Gobain
EUR (280,000) Credit Suisse Continental AG 1.00% 6/20/19 (7,251) 282
International
EUR (280,000) Credit Suisse Iberdrola Finanzas 1.00% 6/20/19 (7,072) 170
International SAU
EUR (270,000) Credit Suisse Bat International 1.00% 9/20/19 (9,461) (1,506)
International Finance Plc
EUR (280,000) Credit Suisse Fortum Oyj 1.00% 9/20/19 (8,782) 206
International
(1,050,000) Deutsche Bank Markit CDX North 1.00% 12/20/18 (18,211) (6,425)
America Investment
Grade Index
EUR (750,000) Deutsche Bank Markit iTraxx 1.00% 6/20/19 2,046 (22,757)
Europe Index
EUR (250,000) Morgan Stanley Standard Chartered 1.00% 3/20/19 3,130 (8,321)
Capital Bank
Services LLC
EUR (500,000) Morgan Stanley Volkswagen 1.00% 3/20/19 (15,573) (4,154)
Capital International
Services LLC Finance NV
EUR (270,000) Morgan Stanley Eni S.p.A. 1.00% 9/20/19 (8,626) (729)
Capital
Services LLC
--------------------------------------------------------------------------------------------------------
$(86,981) $ (48,023)
========================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 19
Schedule of Investments | 8/31/14 (continued)
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
-------------------------------------------------------------------------------------------------------------------
Net
Notional Obligation Premiums Unrealized
Principal Entity/ Credit Expiration Paid Appreciation
($)(1) Counterparty Index Coupon Rating(2) Date (Received) (Depreciation)
-------------------------------------------------------------------------------------------------------------------
EUR 320,000 Barclays Tesco plc 1.00% BBB 9/20/19 $ 410 $ 646
Bank plc
EUR 250,000 Credit Suisse Casino 1.00% BBB- 3/20/19 (3,293) 8,046
International Guichard
Perrachon SA
EUR 250,000 Credit Suisse Electrolux AB 1.00% BBB+ 6/20/19 1,535 3,968
International
EUR 280,000 Credit Suisse Glencore 1.00% BBB 6/20/19 (6,835) 7,061
International Finance
Europe SA
EUR 250,000 Credit Suisse RWE AG 1.00% BBB+ 6/20/19 668 5,851
International
EUR 280,000 Credit Suisse Vinci SA 1.00% A- 6/20/19 7,807 (710)
International
EUR 280,000 Credit Suisse Volvo 1.00% BBB 6/20/19 (53) 4,107
International Treasury AB
EUR 270,000 Credit Suisse Imperial 1.00% BBB 9/20/19 4,493 1,288
International Tobacco
Finance plc
EUR 375,000 Deutsche Bank Markit iTraxx 1.00% NA(3) 12/20/18 (71) 11,139
Europe Index
EUR 375,000 Deutsche Bank Markit iTraxx 1.00% NA(3) 12/20/18 11,086 (25)
Europe Index
EUR 250,000 Morgan Stanley Royal Bank of 1.00% A- 3/20/19 (2,639) 8,185
Capital Services Scotland plc
LLC
EUR 250,000 Morgan Stanley Volvo 1.00% BBB 3/20/19 (1,653) 5,738
Capital Services Treasury AB
LLC
EUR 250,000 Morgan Stanley Pearson plc 1.00% BBB+ 6/20/19 4,642 1,889
Capital Services
LLC
EUR 280,000 Morgan Stanley Experian 1.00% A- 9/20/19 10,780 (1,406)
Capital Services Finance plc
LLC
EUR 270,000 Morgan Stanley Repsol 1.00% BBB- 9/20/19 3,629 1,976
Capital Services International
LLC Finance BV
-------------------------------------------------------------------------------------------------------------------
$ 30,506 $ 57,753
===================================================================================================================
(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) Based on Standard & Poor's rating of the issuer.
(3) Payment is based on a percentage of the index. Referenced indices
are comprised of a number of individual issuers.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EUR Euro
The accompanying notes are an integral part of these financial statements.
20 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
CROSS CURRENCY SWAP AGREEMENTS
-----------------------------------------------------------------------------------------------------
Net
Unrealized
Notional Floating Annual Expiration Appreciation
Principal ($) Counterparty Pay Receive Rate fixed Rate Date (Depreciation)
-----------------------------------------------------------------------------------------------------
2,150,000 Morgan Stanley USD EURO EUROBIBOR 0.00% 1/23/22 $(68,249)
Capital 3-Month
Services LLC
=====================================================================================================
INFLATION RATE SWAP AGREEMENTS
------------------------------------------------------------------------------------------------------
Net
Unrealized
Notional Pay/ Annual Expiration Appreciation
Principal ($) Counterparty Receive Index Fixed Rate Date (Depreciation)
------------------------------------------------------------------------------------------------------
EUR 367,500 Morgan Stanley Receive EUCPI 1.238% 2/7/19 $ (7,608)
Capital Services LLC
EUR 181,000 Morgan Stanley Receive EUCPI 1.210% 3/3/19 (3,509)
Capital Services LLC
675,000 Morgan Stanley Receive USCPI 2.140% 4/23/19 2,641
Capital Services LLC
337,500 Morgan Stanley Receive USCPI 2.138% 5/2/19 1,899
Capital Services LLC
337,500 Morgan Stanley Receive USCPI 2.148% 5/13/19 1,555
Capital Services LLC
325,000 Morgan Stanley Receive USCPI 2.123% 5/15/19 1,875
Capital Services LLC
325,000 Morgan Stanley Receive USCPI 2.240% 6/10/19 (242)
Capital Services LLC
994,250 Credit Suisse International Pay USCPI 2.145% 2/7/19 (5,271)
498,000 Credit Suisse International Pay USCPI 2.138% 3/3/19 (1,818)
------------------------------------------------------------------------------------------------------
$(10,478)
======================================================================================================
EUCPI Eurostat Eurozone HICP Ex Tobacco Unrevised Series NSA
USCPI United States Consumer Price Index
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 21
Schedule of Investments | 8/31/14 (continued)
INTEREST RATE SWAP AGREEMENTS
--------------------------------------------------------------------------------------------------------
Annual Net Unrealized
Notional Pay/ Floating Fixed Expiration Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
--------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c> <c>
AUD 4,170,000 Deutsche Bank Pay LIBOR AUD 3 Month 2.648% 6/30/16 $ (445)
AUD 1,180,000 Deutsche Bank Receive LIBOR AUD 6 Month 3.443% 5/17/21 (3,627)
AUD 1,700,000 Morgan Stanley Pay LIBOR AUD 3 Month 3.205% 6/15/17 10,202
Capital
Services LLC
AUD 2,450,000 Morgan Stanley Receive LIBOR AUD 3 Month 2.815% 9/15/17 11,499
Capital
Services LLC
AUD 1,225,000 Morgan Stanley Receive LIBOR AUD 3 Month 2.875% 9/15/17 (1,538)
Capital
Services LLC
AUD 920,000 Morgan Stanley Receive LIBOR AUD 3 Month 2.898% 10/10/17 (1,331)
Capital
Services LLC
CAD 1,300,000 Goldman Sach Receive Canadian Bankers 2.110% 8/8/18 (634)
International Acceptances
3 Month
CAD 715,000 Goldman Sach Receive Canadian Bankers 2.088% 8/8/18 (439)
International Acceptances
3 Month
CHF 1,140,000 Deutsche Bank Pay CHF LIBOR 6 Month 2.128% 7/9/23 60,032
CNY 12,000,000 Credit Suisse Pay China Fixing Repo 4.780% 2/17/16 33,172
International Rates 7 day
CNY 5,200,000 Credit Suisse Receive China Fixing Repo 4.910% 2/17/19 (38,003)
International Rates 7 day
CNY 4,100,000 Morgan Stanley Pay China Fixing Repo 4.240% 3/21/16 6,495
Capital Rates 7 day
Services LLC
CNY 1,500,000 Morgan Stanley Pay China Fixing Repo 3.630% 5/6/16 74
Capital Rates 7 day
Services LLC
CNY 1,700,000 Morgan Stanley Receive China Fixing Repo 4.480% 3/21/19 (12,394)
Capital Rates 7 day
Services LLC
CNY 1,613,000 Morgan Stanley Pay China Fixing Repo 4.110% 4/28/19 2,213
Capital Rates 7 day
Services LLC
CNY 1,650,000 Morgan Stanley Pay China Fixing Repo 4.120% 4/29/19 3,315
Capital Rates 7 day
Services LLC
CNY 1,650,000 Morgan Stanley Pay China Fixing Repo 4.110% 4/30/19 (470)
Capital Rates 7 day
Services LLC
CNY 1,600,000 Morgan Stanley Pay China Fixing Repo 4.060% 5/5/19 2,541
Capital Rates 7 day
Services LLC
The accompanying notes are an integral part of these financial statements.
22 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
INTEREST RATE SWAP AGREEMENTS (continued)
-----------------------------------------------------------------------------------------------------------
Annual Net Unrealized
Notional Pay / Floating Fixed Expiration Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
-----------------------------------------------------------------------------------------------------------
EUR 1,850,000 Deutsche Bank Pay EURIBOR 6 Month 0.687% 8/1/18 $ 8,456
EUR 1,850,000 Deutsche Bank Pay EURIBOR 6 Month 0.668% 8/1/18 7,388
EUR 372,500 Deutsche Bank Pay EURIBOR 6 Month 1.004% 2/7/19 12,082
EUR 184,000 Deutsche Bank Pay EURIBOR 6 Month 0.948% 3/3/19 5,433
EUR 1,930,000 Deutsche Bank Receive EURIBOR 6 Month 2.703% 7/9/23 (155,737)
EUR 780,000 Deutsche Bank Pay EURIBOR 6 Month 1.900% 2/11/24 84,296
EUR 260,000 Deutsche Bank Receive EURIBOR 6 Month 2.558% 2/11/54 (73,997)
GBP 627,000 Deutsche Bank Receive LIBOR GBP 6 Month 1.969% 3/13/19 (5,618)
HKD 5,520,000 Deutsche Bank Receive HKAB Hong Kong 3.963% 2/12/24 (30,889)
Dollar HIBOR Fixings
3 Month
HKD 1,600,000 Deutsche Bank Receive HKAB Hong Kong 3.425% 6/25/24 (2,822)
Dollar HIBOR Fixings
3 Month
JPY 257,000,000 Deutsche Bank Receive LIBOR JPY 6 Month 0.252% 8/1/18 (138)
JPY 247,000,000 Deutsche Bank Receive LIBOR JPY 6 Month 0.254% 8/1/18 (228)
JPY 54,800,000 Deutsche Bank Pay LIBOR JPY 6 Month 2.463% 2/14/34 13,359
JPY 25,000,000 Deutsche Bank Pay LIBOR JPY 6 Month 2.395% 6/20/34 3,801
JPY 25,000,000 Deutsche Bank Pay LIBOR JPY 6 Month 2.351% 7/10/34 2,800
JPY 67,700,000 Deutsche Bank Receive LIBOR JPY 6 Month 2.410% 2/14/44 (21)
JPY 31,000,000 Deutsche Bank Receive LIBOR JPY 6 Month 2.458% 6/20/44 (1,129)
JPY 31,000,000 Deutsche Bank Receive LIBOR JPY 6 Month 2.456% 7/10/44 (1,128)
MYR 850,000 Morgan Stanley Pay KLIBOR Interbank 4.100% 6/27/19 1,065
Capital Offered rate Fixing
Services LLC 3 Month
MYR 850,000 Morgan Stanley Pay KLIBOR Interbank 4.085% 6/30/19 742
Capital Offered rate Fixing
Services LLC 3 Month
MYR 950,000 Morgan Stanley Pay KLIBOR Interbank 4.085% 7/9/19 912
Capital Offered rate Fixing
Services LLC 3 Month
MYR 900,000 Morgan Stanley Pay KLIBOR Interbank 4.000% 7/17/19 (277)
Capital Offered rate Fixing
Services LLC 3 Month
NZD 1,050,000 Deutsche Bank Pay NZD Bank Bill 4.283% 11/3/17 1,344
3 Month
SEK 4,800,000 Barclays Bank Plc Pay LIBOR SEK 3 Month 0.628% 8/20/16 1,078
SEK 4,750,000 Barclays Bank Plc Pay LIBOR SEK 3 Month 0.615% 8/26/16 897
SEK 4,800,000 Morgan Stanley Pay LIBOR SEK 3 Month 0.628% 8/13/16 1,233
Capital
Services LLC
SEK 4,800,000 Morgan Stanley Pay LIBOR SEK 3 Month 0.630% 8/14/16 1,135
Capital
Services LLC
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 23
Schedule of Investments | 8/31/14 (continued)
INTEREST RATE SWAP AGREEMENTS (continued)
-----------------------------------------------------------------------------------------------------------
Annual Net Unrealized
Notional Pay / Floating Fixed Expiration Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
-----------------------------------------------------------------------------------------------------------
5,530,000 Deutsche Bank Receive LIBOR USD 3 Month 0.678% 6/30/16 $ (2,289)
625,000 Deutsche Bank Receive LIBOR USD 3 Month 0.679% 8/13/16 105
625,000 Deutsche Bank Receive LIBOR USD 3 Month 0.673% 8/14/16 152
625,000 Deutsche Bank Receive LIBOR USD 3 Month 0.648% 8/20/16 677
619,000 Deutsche Bank Receive LIBOR USD 3 Month 0.700% 8/26/16 (5)
2,860,000 Deutsche Bank Receive LIBOR USD 3 Month 0.846% 9/30/16 819
1,015,000 Deutsche Bank Receive LIBOR USD 3 Month 1.599% 2/7/19 685
4,600,000 Deutsche Bank Receive LIBOR USD 3 Month 1.775% 2/28/19 (2,760)
508,000 Deutsche Bank Receive LIBOR USD 3 Month 1.576% 3/3/19 1,427
1,040,000 Deutsche Bank Pay LIBOR USD 3 Month 2.308% 5/15/21 12,346
1,380,000 Deutsche Bank Pay LIBOR USD 3 Month 3.985% 7/9/23 48,783
810,000 Deutsche Bank Pay LIBOR USD 3 Month 4.269% 2/14/24 34,716
250,000 Deutsche Bank Pay LIBOR USD 3 Month 3.723% 6/27/24 4,309
-----------------------------------------------------------------------------------------------------------
$ 43,664
===========================================================================================================
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
AUD Australian Dollar
CAD Canadian Dollar
CHF Swiss Franc
CNY New Chinese Yuan
EUR Euro
GBP British Pound Sterling
HKD Hong Kong Dollar
JPY Japanese Yen
MYR Malaysian Ringgit
NZD New Zealand Dollar
SEK Swedish Krone
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed 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
risk, 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.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
as Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
The following is a summary of the inputs used as of August 31, 2014, in valuing
the Fund's assets:
--------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------------
U.S. Government and
Agency Obligations $ -- $12,967,214 $ -- $12,967,214
Foreign Government Bonds -- 4,889,671 -- 4,889,671
Purchased Put Options -- 48,898 -- 48,898
Purchased Call Options -- 15,326 -- 15,326
Purchased Swaptions -- 114,385 -- 114,385
Interest Rate Swaptions -- 122,684 -- 122,684
--------------------------------------------------------------------------------------------------
Total $ -- $18,158,178 $ -- $18,158,178
==================================================================================================
Other Financial Instruments
Net unrealized depreciation
on futures contracts $ (151,043) $ -- $ -- $ (151,043)
Net unrealized appreciation
on forward foreign
currency contracts -- 205,178 -- 205,178
Net unrealized appreciation
on credit default
swap contracts -- 9,730 -- 9,730
Net unrealized depreciation
on cross currency swaps -- (68,249) -- (68,249)
Net unrealized depreciation
on inflation rate swaps -- (10,478) -- (10,478)
Net unrealized appreciation
on interest rate swaps -- 43,664 -- 43,664
Net unrealized appreciation
on written put options -- 2,554 -- 2,554
Net unrealized appreciation
on written call options -- 3,660 -- 3,660
Net unrealized appreciation
on written interest rate swaption -- 89,264 -- 89,264
--------------------------------------------------------------------------------------------------
Total Other Financial Instruments $ (151,043) $ 275,323 $ -- $ 124,280
==================================================================================================
During the period ended August 31, 2014, there were no transfers between Levels
1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 25
Statement of Assets and Liabilities | 8/31/14
ASSETS:
Investment in securities, at value (cost $18,027,575) $18,158,178
Cash 398,320
Foreign currencies (cost $612,353) 505,755
Futures collateral 304,141
Swap collateral 465,502
Receivables --
Interest 54,648
Swap contracts receivable 63,495
Due from Pioneer Investment Management, Inc. 43,621
Net unrealized appreciation on forward foreign currency contracts 205,178
Prepaid expenses 30,245
-----------------------------------------------------------------------------------------
Total assets $20,229,083
=========================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 1,626
Variation margin 411
Trustee fees 1,075
Swap contracts, premiums received 56,475
Written options and written swaptions (premiums received $211,364) 115,886
Net unrealized depreciation on swap contracts 25,333
Net unrealized depreciation on futures contracts 151,043
Due to affiliates 11,861
Accrued expenses 78,705
-----------------------------------------------------------------------------------------
Total liabilities $ 442,415
=========================================================================================
NET ASSETS:
Paid-in capital $20,022,541
Accumulated net investment loss (120,897)
Accumulated net realized loss on investments, futures contracts,
swap contracts, written options and foreign currency transactions (434,623)
Net unrealized appreciation on investments 130,603
Net unrealized depreciation on futures contracts (151,043)
Net unrealized depreciation on swap contracts (25,333)
Net unrealized appreciation on written options and written swaptions 95,478
Net unrealized appreciation on forward foreign currency contracts
and other assets and liabilities denominated in foreign currencies 269,942
-----------------------------------------------------------------------------------------
Total net assets $ 19,786,668
=========================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $6,606,418/668,593 shares) $ 9.88
Class C (based on $6,558,880/666,667 shares) $ 9.84
Class Y (based on $6,621,370/669,096 shares) $ 9.90
MAXIMUM OFFERING PRICE:
Class A ($9.88 (divided by) 95.5%) $ 10.35
=========================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
Statement of Operations
For the period from 1/30/14 (Commencement of Operations) to 8/31/14
INVESTMENT INCOME:
Interest $ 83,624
-----------------------------------------------------------------------------------------------
Total investment income $ 83,624
-----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 69,437
Distribution fees
Class A 9,649
Class C 38,501
Transfer agent fees
Class A 80
Class C 71
Class Y 93
Shareholder communication expense 479
Administrative reimbursements 11,885
Custodian fees 41,643
Registration fees 14,574
Professional fees 71,104
Printing expense 32,359
Fees and expenses of nonaffiliated Trustees 4,357
Pricing fees 16,528
Miscellaneous 10,393
-----------------------------------------------------------------------------------------------
Total expenses $ 321,153
Less fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (185,805)
-----------------------------------------------------------------------------------------------
Net expenses $ 135,348
-----------------------------------------------------------------------------------------------
Net investment loss $ (51,724)
-----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP CONTRACTS, WRITTEN OPTIONS, WRITTEN SWAPTIONS,
FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments $ (30,495)
Swap contracts (69,752)
Futures contracts (363,725)
Written options and written swaptions 10,413
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (70,682) $(524,241)
-----------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 130,603
Swap contracts (25,333)
Futures contracts (151,043)
Written options and written swaptions 95,478
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 269,942 $ 319,647
-----------------------------------------------------------------------------------------------
Net loss on investments, swap contracts, written options, written
swaptions, futures contracts and foreign currency transactions $(204,594)
-----------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(256,318)
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 27
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------------
1/31/14 (a)
to 8/31/14
-----------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment loss $ (51,724)
Net realized loss on investments, swap contracts, futures contracts, written
options, written swaptions and foreign currency transactions (524,241)
Change in net unrealized appreciation (depreciation) on investments, swap
contracts, futures contracts, written options, written swaptions
and foreign currency transactions 319,647
-----------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (256,318)
-----------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:(b)
Net proceeds from sale of shares $20,044,447
Reinvestment of distributions --
Cost of shares repurchased (1,461)
-----------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $20,042,986
-----------------------------------------------------------------------------------------------
Net increase in net assets $19,786,668
NET ASSETS:
Beginning of period --
-----------------------------------------------------------------------------------------------
End of period $19,786,668
-----------------------------------------------------------------------------------------------
Accumulated net investment loss $ (120,897)
===============================================================================================
(a) Class A, Class C and Class Y shares were first publicly on January 31, 2014.
(b) At August 31, 2014 PIM owned 98.9% of the value of the outstanding shares of
Pioneer Absolute Return Bond Fund.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
---------------------------------------------------------------------------------
'14 Shares '14 Amount
---------------------------------------------------------------------------------
Class A*
Shares sold 668,740 $6,687,114
Reinvestment of distributions -- --
Less shares repurchased (147) (1,461)
---------------------------------------------------------------------------------
Net increase 668,593 $6,685,653
=================================================================================
Class C*
Shares sold 666,667 $6,666,667
Reinvestment of distributions -- --
Less shares repurchased -- --
---------------------------------------------------------------------------------
Net increase 666,667 $6,666,667
=================================================================================
Class Y*
Shares sold 669,096 $6,690,666
Reinvestment of distributions -- --
Less shares repurchased -- --
---------------------------------------------------------------------------------
Net increase 669,096 $6,690,666
=================================================================================
* Class A, Class C and Class Y shares were first publicly offered on January
31, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 29
Financial Highlights
------------------------------------------------------------------------------------
1/30/14
to 8/31/14
------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.00
------------------------------------------------------------------------------------
Decrease from investment operations:
Net investment loss $ (0.02)
Net realized and unrealized loss on investments (0.10)
------------------------------------------------------------------------------------
Net decrease in net assets from investment operations $ (0.12)
------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.12)
------------------------------------------------------------------------------------
Net asset value, end of period $ 9.88
====================================================================================
Total return* (1.20)%***
Ratio of net expenses to average net assets 1.01%**
Ratio of net investment loss to average net assets (0.29)%**
Portfolio turnover rate 62%**
Net assets, end of period (in thousands) $ 6,606
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Total expenses 2.61%**
Net investment loss (1.89)%**
====================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
-----------------------------------------------------------------------------------
1/30/14
to 8/31/14
-----------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.00
-----------------------------------------------------------------------------------
Decrease from investment operations:
Net investment loss $ (0.06)
Net realized and unrealized loss on investments (0.10)
-----------------------------------------------------------------------------------
Net decrease in net assets from investment operations $ (0.16)
-----------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.16)
-----------------------------------------------------------------------------------
Net asset value, end of period $ 9.84
===================================================================================
Total return* (1.60)%***
Ratio of net expenses to average net assets 1.75%**
Ratio of net investment loss to average net assets (1.03)%**
Portfolio turnover rate 62%**
Net assets, end of period (in thousands) $ 6,559
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no
reduction for fees paid indirectly:
Total expenses 3.35%**
Net investment loss (2.63)%**
===================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 31
Financial Highlights (continued)
-----------------------------------------------------------------------------------
1/30/14
to 8/31/14
-----------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.00
-----------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.00)(a)
Net realized and unrealized loss on investments (0.10)
-----------------------------------------------------------------------------------
Net increase in net assets from investment operations $ (0.10)
-----------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.10)
-----------------------------------------------------------------------------------
Net asset value, end of period $ 9.90
===================================================================================
Total return* (1.00)%***
Ratio of net expenses to average net assets 0.75%**
Ratio of net investment loss to average net assets (0.03)%**
Portfolio turnover rate 62%**
Net assets, end of period (in thousands) $ 6,621
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no
reduction for fees paid indirectly:
Total expenses 2.36%**
Net investment loss (1.64)%**
===================================================================================
* 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.
** Annualized.
*** Not Annualized.
(a) Amount rounds to less than $0.01 or $(0.01) per share.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
Notes to Financial Statements | 8/31/14
1. Organization and Significant Accounting Policies
Pioneer Absolute Return Bond Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The Fund's investment objective is to seek total
return.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Class A, Class C and Class Y shares were first publicly offered on
January 31, 2014. 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 the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 33
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Senior
floating rate loan interests (senior loans) 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 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. Fixed income securities with
remaining maturity of more than sixty days are valued at 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. Valuations may be supplemented by dealers
and other sources, as required. Equity securities that have traded on an
exchange are valued at 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. Short-term
fixed income securities with remaining maturities of sixty days or less
generally are valued at amortized cost. Shares of money market mutual funds
are valued at such funds' net asset value.
Trading in foreign 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.
Securities or loan interests for which independent pricing services 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 Pioneer Investment
Management, Inc. (PIM), the Fund's investment advisor, pursuant to
procedures adapted by the Fund's Board of Trustees. PIM's fair valuation
team uses fair value methods approved by the Valuation Committee of the
Board of Trustees. PIM'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.
34 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
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 August 31, 2014, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services).
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 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.
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 is recorded on the
accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in the market price of those securities but are included
with the net realized and unrealized gain or loss on investments.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 35
C. 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
August 31, 2014 was $304,141. Subsequent payments for futures contracts
("variation margin") are paid or received by the Fund, depending on the
daily fluctuation in the value of the contracts, and are recorded by the
Fund as unrealized appreciation or depreciation. When the contract is
closed, the Fund realizes a gain or loss equal to the difference between the
opening and closing value of the contract. The use of futures contracts
involves, to varying degrees, elements of market, interest rate, currency
exchange rate and counterparty risks, which may exceed the amounts
recognized by the Fund. Changes in value of the contracts may not directly
correlate to changes in value of the underlying securities. The average
value of contracts open during the period ended August 31, 2014 was
$24,679,727.
At August 31, 2014, open futures contracts were as follows:
------------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation/
Type Long/(Short) Month Value (Depreciation)
------------------------------------------------------------------------------------
F/C BOBL Euro Future 3 9/14 $ 509,328 $ 3,583
F/C Euro Schatz 3 9/14 436,651 473
F/C Euro BUXL 30 Year
Bond Future 2 9/14 382,774 22,374
F/C Long Gilt Future 2 12/14 376,226 1,653
F/C U.S. 10 yr Note 9 12/14 1,132,031 2,109
F/C Australia 3 yr
Bond Future (6) 9/14 (614,110) 680
F/C Euro OAT Future (10) 9/14 (1,912,032) (92,593)
F/C Euro Bund Future (1) 9/14 (199,086) 13
F/C Euro BTP Future (13) 9/14 (2,229,118) (63,256)
F/C Japan 10 yr Bond
TSE Future (2) 9/14 (2,809,549) (12,105)
F/C 90 Day Euro Future (10) 3/18 (2,430,000) (3,061)
F/C 90 Day Euro Future (10) 9/17 (2,436,000) (2,863)
F/C 90 Day Euro Future (10) 12/17 (2,432,500) (2,858)
F/C 90 Day Euro Future (10) 6/18 (2,427,875) (3,406)
F/C U.S. 5 yr Note (CBT) (8) 12/14 (950,688) (1,786)
------------------------------------------------------------------------------------
$(15,603,948) $ (151,043)
====================================================================================
36 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
D. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation is
recorded in the Fund's financial statements. The Fund records realized gains
and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
August 31, 2014, the Fund did not accrue any interest or penalties with
respect to unrecognized tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years remain subject to examination by
federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences. At
August 31, 2014, the Fund reclassified $69,173 to increase accumulated net
investment loss, $89,618 to decrease accumulated net realized loss on
investments, foreign currency transactions, swap contracts, written options
and futures contracts and $20,445 to decrease paid-in capital to reflect
permanent book/tax differences. These adjustments have no impact on the net
assets or results of operations.
At August 31, 2014, the Fund was permitted to carry forward $297,922 of
long-term losses and $276,319 of short-term losses without limitation.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 37
There were no distributions paid during the fiscal year ended August 31,
2014.
The following shows the components of distributable earnings (losses)
on a federal income tax basis at August 31, 2014:
--------------------------------------------------------------------------------
2014
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 83,945
Capital loss carryforward (574,241)
Unrealized appreciation 254,423
--------------------------------------------------------------------------------
Total $ (235,873)
================================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax adjustments relating to credit default swaps and
the mark to market of futures contracts and credit default swaps.
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned no underwriting commissions on the sale of Class A shares during the
period ended August 31, 2014.
G. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), 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).
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.
38 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
H. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. 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 prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
I. 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 a liability 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. 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, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. 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 value of written option contracts open during the period ended
August 31, 2014 was $4,815. Written call and put option contracts
outstanding at period end are listed at the end of the Fund's schedule of
investments.
The Fund held three written put option contracts that were open at August
31, 2014. If the put options were exercised at August 31, 2014, the maximum
amount the Fund would have been required to pay was $7,125.
The Fund held four written call option contracts that were open at August
31, 2014. If the put options were exercised at August 31, 2014, the maximum
amount the Fund would have been required to pay was $4,237.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 39
Transactions in written options for the period ended August 31, 2014 are
summarized as follows:
--------------------------------------------------------------------------------
Number of Premium
Contracts Paid
--------------------------------------------------------------------------------
Options open at beginning of period -- $ --
Options opened (4,817,000) (21,769)
Options exercised -- --
Options closed -- --
Options expired 3,837,000 10,407
--------------------------------------------------------------------------------
Options open at end of period (980,000) $ (11,362)
================================================================================
J. Purchased Options
The Fund may purchase put and call options to seek increase total return.
Purchased call and put options entitle the Fund to buy and sell a specified
number of shares or units of a particular security, currency or index at a
specified price at a specific date or within a specific period of time. Upon
the purchase of a call or put option, the premium paid by the Fund is
included in the Statement of Assets and Liabilities as an investment. All
premiums are marked-to-market daily, and any unrealized gains or losses are
recorded in the Fund's financial statements. As the purchaser of an index
option, the Fund has the right to receive a cash payment equal to any
depreciation in the value of the index below the strike price of the option
(in the case of a put) or equal to any appreciation in the value of the
index over the strike price of the option (in the case of a call) as of the
valuation date of the option. Premiums paid for purchased calls and put
options which have expired are treated as realized losses on investments in
the Statement of Operations. Upon the exercise or closing of a purchased put
option, the premium is offset against the proceeds on the sale of the
underlying security or financial instrument in order to determine the
realized gain or loss on investments. Upon the exercise or closing of a
purchased call option, the premium is added to the cost of the security or
financial instrument. The risk associated with purchasing options is limited
to the premium originally paid. The average value of purchased options open
during the period ended August 31, 2014 was $39,770. Purchased option
contracts outstanding at period end are listed at the end of the Fund's
schedule of investments.
K. Written Interest Rate Swaptions
The Fund may enter into interest rate swaptions to seek to manage exposure
to fluctuations in interest rates or to seek to enhance yield. A swaption
grants the right but not the obligation to enter into the underlying swap at
a future specified date.
40 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
When the Fund writes a swaption, the Fund receives a premium and becomes
obligated to enter into a swap contract according to the terms of the
underlying agreement. The premium received by the Fund is recorded as a
liability and is subsequently adjusted to the current value of the written
swaption. Premiums received from writing swaptions that expire unexercised
are treated by the Fund on the expiration date as realized gains. 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, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a written swaption is
exercised, the cost basis of the swap is adjusted by the amount of premium
received. The Fund as writer of a swaption bears the market risk of an
unfavorable change in the price of the security underlying the written
swaption.
Open interest rate swaption contracts at August 31, 2014 are listed in the
Schedule of Investments. The average value of written swaption contracts
open during the period ended August 31, 2014 was $100,490.
The Fund held one interest rate swaption that was open at August 31, 2014.
If the swaption were exercised at August 31, 2014, the maximum amount the
Fund would have been required to pay was $200,002.
Transactions in interest rate swaptions for the period ended August 31, 2014
are summarized as follows:
--------------------------------------------------------------------------------
Number of Premium
Contracts Paid
--------------------------------------------------------------------------------
Options open at beginning of period -- $ --
Options opened (7,600,000) (200,002)
Options exercised -- --
Options closed -- --
Options expired -- --
--------------------------------------------------------------------------------
Options open at end of period (7,600,000) $(200,002)
================================================================================
L. Purchased Interest Rate Swaptions
The Fund may purchase put and call swaptions in order to attempt to hedge
against changes in the value of portfolio securities or to seek to increase
total return. Purchased call and put swaptions 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 swaption, the
premium paid by the Fund is included in the Statement of Assets and
Liabilities as an investment. All premiums are marked-to-market daily, and
any unrealized gains or losses are recorded in the Fund's financial
statements. As the purchaser of an index swaption, 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 swaption
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 41
(in the case of a put) or equal to any appreciation in the value of the
index over the strike price of the swaption (in the case of a call) as of
the valuation date of the swaption. Premiums paid for purchased calls and
put swaptions which have expired are treated as realized losses on
investments in the Statement of Operations. Upon the exercise or closing of
a purchased put swaption, 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 swaption, the premium is added to the cost of
the security or financial instrument. The risk associated with purchasing
swaptions is limited to the premium originally paid. The average value of
contracts open during the period ended August 31, 2014 was $220,479.
Purchased swaptions open at period end are listed at the end of the Fund's
Schedule of Investments.
M. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may 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 Fund 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.
When the Fund enters into a credit default swap contract. The protection
buyer, makes an upfront or periodic payment to the protection seller in
exchange for the rights to receive a contingent payment. An upfront payment
made by the Fund, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
42 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Payments received or made as a result of a credit event or upon
termination of the contract are recognized, net of the appropriate amount of
the upfront payment, as realized gains or losses in the Statement of
Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Open credit default swap contracts at August 31, 2014 are listed in the
Schedule of Investments. The average value of credit default swap contracts
open during the period ended August 31, 2014 was $48,942.
N. Cross Currency Swap Contracts
The Fund may enter into a cross currency swap contract to attempt to manage
and/or gain exposure to fluctuations in interest and/or currency exchange
rates. When entering into a cross currency swap contract, the Fund
negotiates with the counterparty to exchange a periodic stream of payments
(determined using fixed or floating rates) based on the notional amount of
two different currencies. The notional amounts are typically determined
based on exchange rates at the opening of the contract.
Cross currency swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Payments received or made under the contract or upon
termination of the contract are recognized, net of the appropriate amount of
any upfront payment, as realized gains or losses in the Statement of
Operations. Cross currency swaps are subject to counterparty risk.
Open cross currency swap contracts at August 31, 2014 are listed in the
Schedule of Investments. The average value of cross currency swap contracts
open during the period ended August 31, 2014 was $4,802.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 43
O. Inflation Rate Swap Contracts
The Fund may enter into inflation rate swap contracts to attempt to hedge
against inflation. Pursuant to the inflation rate swap agreement, the Fund
negotiates with a counterparty to exchange a periodic stream of payments,
based on a benchmark inflation index. One cash flow stream will typically be
a floating rate payment linked to the specified inflation index while the
other is typically a fixed interest rate.
Inflation rate swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Inflation rate swaps are normally issued on a zero coupon basis
where all payments compound during the life of the contract and are netted
upon the termination or maturity of the contract. Final payments received or
paid by the Fund are recorded as realized gains or losses in the Statement
of Operations. Inflation rate swap contracts are subject to movements in
interest rates.
Open inflation rated swap contracts at August 31, 2014 are listed in the
Schedule of Investments. The average value of inflation rate swap contracts
open during the period ended August 31, 2014 was $3,300.
P. Interest Rate Swap Contracts
The Fund may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance its income. Pursuant to the
interest rate swap agreement, the Fund negotiates with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly basis.
Periodic payments received or paid by the Fund are recorded as realized
gains or losses in the Statement of Operations. Interest rate swap contracts
are marked-to-market daily using valuations supplied by independent sources
and the change in value, if any, is recorded as unrealized appreciation or
depreciation in the Statement of Assets and Liabilities. Interest rate swap
contracts are subject to counterparty risk and movements in interest rates.
Open interest rate swap contracts at August 31, 2014 are listed in the
Schedule of Investments. The average value of interest swap swap contracts
open during the period ended August 31, 2014 was $34,282.
44 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at an annual rate of 0.60% of
the average daily net assets of the Fund.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.15%, 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 February 1, 2015. Fees waived
and expenses reimbursed during the period ended August 31, 2014 are reflected on
the Statement of Operations. Fees and expenses of other investment companies in
which the Fund may invest are not included in the expense limitations noted
above. There can be no assurance that PIM 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
$10,921 in management fees, administrative costs and certain other
reimbursements payable to PIM at August 31, 2014.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the period ended August 31, 2014, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $270
Class C 44
Class Y 165
--------------------------------------------------------------------------------
Total $479
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $40 in transfer agent fees and out-of-pocket reimbursements
payable from PIMSS at August 31, 2014.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 45
4. Distribution Plan
The Fund has adopted a Distribution 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 PFD 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 PFD 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 $900 in distribution fees payable to PFD
at August 31, 2014.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y. Proceeds from the CDSCs are paid to PFD. For the period
ended August 31, 2014, no CDSCs were paid to PFD.
5. Forward Foreign Currency Contracts
At August 31, 2014, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the period ended August 31, 2014 was $10,797,729.
Open forward foreign currency contracts at August 31, 2014 were as follows:
----------------------------------------------------------------------------------------------
Net Unrealized
Security Quantity/ Settlement US $ Value Appreciation
Description Shares Book Value Date at 8/31/14 (Depreciation)
----------------------------------------------------------------------------------------------
AUD (Australian Dollar) (170,000) $ (155,248) 10/17/14 $ (158,174) $ (2,926)
BRL (Brazilian Real) 274,332 120,000 9/15/14 122,045 2,045
CAD (Canadian Dollar) 130,921 120,000 10/17/14 120,318 318
CAD (Canadian Dollar) 130,586 120,000 10/17/14 120,010 10
CAD (Canadian Dollar) 130,868 120,000 10/17/14 120,269 269
CAD (Canadian Dollar) (260,173) (243,664) 10/17/14 (239,102) 4,562
CAD (Canadian Dollar) (128,455) (120,000) 10/17/14 (118,052) 1,948
46 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
----------------------------------------------------------------------------------------------
Net Unrealized
Security Quantity/ Settlement US $ Value Appreciation
Description Shares Book Value Date at 8/31/14 (Depreciation)
----------------------------------------------------------------------------------------------
CAD (Canadian Dollar) (130,977) $ (120,000) 10/17/14 $ (120,369) $ (369)
CHF (Swiss Franc) 108,988 118,270 10/17/14 118,748 478
CHF (Swiss Franc) (110,918) (119,966) 10/17/14 (120,850) (884)
CHF (Swiss Franc) (109,035) (118,270) 10/17/14 (118,799) (529)
CNY (New Chinese Yuan) (2,507,400) (400,000) 4/28/15 (401,967) (1,967)
EURO (European Euro) (2,373,443) (3,232,251) 10/17/14 (3,118,959) 113,292
EURO (European Euro) 30,000 40,155 6/25/15 39,514 (641)
EURO (European Euro) (150,000) (197,866) 10/17/14 (197,116) 750
EURO (European Euro) (83,064) (112,703) 10/17/14 (109,155) 3,548
GBP (British Pound Sterling) (10,982) (18,798) 10/17/14 (18,189) 609
GBP (British Pound Sterling)(555,674) (949,892) 10/17/14 (920,313) 29,579
GBP (British Pound Sterling)(119,349) (197,116) 10/17/14 (197,667) (551)
ILS (Israeli Shekel) 544,918 155,000 10/17/14 152,501 (2,499)
ILS (Israeli Shekel) (556,756) (162,350) 10/17/14 (155,815) 6,535
INR Indian Rupee 6,356,000 100,000 7/7/15 98,029 (1,971)
JPY (Japanese Yen) 8,100,960 80,000 10/17/14 77,849 (2,151)
JPY (Japanese Yen) 12,447,612 120,000 10/17/14 119,620 (380)
JPY (Japanese Yen) (124,487,892) (1,224,302) 10/17/14 (1,196,310) 27,992
JPY (Japanese Yen) (3,750,000) (36,951) 10/17/14 (36,037) 914
JPY (Japanese Yen) (12,249,108) (120,000) 10/17/14 (117,712) 2,288
JPY (Japanese Yen) (12,493,944) (120,000) 10/17/14 (120,065) (65)
JPY (Japanese Yen) (12,287,198) (120,000) 10/17/14 (118,078) 1,922
JPY (Japanese Yen) 10,234,816 100,000 10/17/14 98,355 (1,645)
JPY (Japanese Yen) 12,462,794 120,000 10/17/14 119,766 (234)
JPY (Japanese Yen) 12,450,720 120,000 10/17/14 119,650 (350)
JPY (Japanese Yen) (30,750,000) (300,000) 9/2/14 (295,403) 4,597
JPY (Japanese Yen) 15,588,750 150,000 9/2/14 149,755 (245)
JPY (Japanese Yen) 15,588,150 150,000 9/2/14 149,749 (251)
MXN (Mexican Peso) (1,573,890) (120,000) 10/17/14 (120,038) (38)
MXN (Mexican Peso) 1,546,815 118,180 10/17/14 117,973 (207)
NOK (Norwegian Krone) (700,000) (111,268) 10/17/14 (112,703) (1,435)
NOK (Norwegian Krone) (700,000) (112,347) 10/17/14 (112,703) (356)
NZD (New Zealand Dollar) (270,000) (232,656) 10/17/14 (224,690) 7,966
NZD (New Zealand Dollar) 270,000 228,321 10/17/14 224,690 (3,631)
PLN (Polish Zloty) 469,880 150,000 10/17/14 146,241 (3,759)
PLN (Polish Zloty) 481,474 150,000 10/17/14 149,850 (150)
PLN (Polish Zloty) (461,324) (151,062) 10/17/14 (143,578) 7,484
PLN (Polish Zloty) (464,516) (150,000) 10/17/14 (144,572) 5,428
SEK (Swedish Krona) (832,338) (120,000) 10/17/14 (119,043) 957
SEK (Swedish Krona) (769,664) (112,900) 10/17/14 (110,079) 2,821
SEK (Swedish Krona) (768,933) (112,703) 10/17/14 (109,974) 2,729
TRY (Turkish Lira) 263,672 120,000 10/17/14 120,778 778
ZAR (South African Rand) (1,277,589) (120,000) 10/17/14 (118,843) 1,157
ZAR (South African Rand) 1,305,463 120,000 10/17/14 121,436 1,436
----------------------------------------------------------------------------------------------
$ 205,178
==============================================================================================
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 47
6. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the period ended August 31, 2014, the Fund's expenses
were not reduced under such arrangements.
7. Assets and Liabilities Offsetting
Financial instruments subject to an enforceable master netting agreement have
been offset on the Statement of Assets and Liabilities. The following charts
show gross assets and liabilities of the Fund as of August 31, 2014.
----------------------------------------------------------------------------------------------
Assets:
Net Gross Amounts
Gross Amounts Not Offset in
Amounts of Assets the Statement of
Offset Presented Assets and Liabilities
in the in the ------------------------
Gross Statement Statement
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received* Amount
----------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $232,412 $ (27,234) $205,178 $ -- $ -- $205,178
Swap contracts 449,280 (449,280) -- -- -- --
Written options
and written
swaptions -- -- -- -- -- $ --
----------------------------------------------------------------------------------------------
$681,692 $(476,514) $205,178 $ -- $ -- $205,178
==============================================================================================
----------------------------------------------------------------------------------------------
Liabilities:
Net
Gross Amounts of Gross Amounts
Amounts Liabilities Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement ------------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Pledged* Amount
----------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 27,234 $ (27,234) $ -- $ -- $ -- $ --
Swap contracts 474,613 (449,280) 25,333 -- (25,333) --
Written options
and written
swaptions 115,886 -- 115,886 -- -- 115,886
----------------------------------------------------------------------------------------------
$617,733 $(476,514) $ 141,219 $ -- $(25,333) $115,886
==============================================================================================
* 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.
48 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
8. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of August 31, 2014 were as follows:
---------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives 2014 Liabilities Derivatives 2014
Hedging Instruments ----------------------------- --------------------------------
Under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
---------------------------------------------------------------------------------------------
Forward foreign Net unrealized Net unrealized
currency contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $205,178 currency contracts $ --
Swap contracts Net unrealized Net unrealized
appreciation on depreciation on
swap contracts -- swap contracts 25,333
Futures contracts* Net unrealized Net unrealized
appreciation on depreciation on
futures contracts -- futures contracts 151,043
Written options and Net unrealized Net unrealized
written swaptions appreciation on depreciation on
written options -- written options 115,886
---------------------------------------------------------------------------------------------
Total $205,178 $ 292,262
=============================================================================================
* Reflects unrealized appreciation/depreciation of futures contracts (see Note
1C). The current day's variation margin isdisclosed on the Statement of
Assets and Liabilities.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 49
The effect of derivative instruments on the Statement of Operations for the
period ended August 31, 2014 was as follows:
----------------------------------------------------------------------------------------------
Change in
Derivatives Realized Unrealized
Not Accounted Gain or Appreciation or
for as Hedging (Loss) on (Depreciation)
Instruments Under Location of Gain or (Loss) Derivatives on Derivatives
Accounting Standards on Derivatives Recognized Recognized Recognized
Codification (ASC) 815 in Income in Income in Income
----------------------------------------------------------------------------------------------
Forward foreign Net realized gain (loss) on
currency contracts forward foreign currency contracts $ (62,772)
Forward foreign Change in unrealized appreciation
currency contracts (depreciation) on forward foreign
currency contracts $ 205,178
Futures contracts Net realized gain (loss) on
futures contracts $(363,725)
Futures contracts Change in net unrealized appreciation
(depreciation) on futures contracts $(151,043)
Swap contracts Net realized gain (loss) on swap
contracts $ (69,752)
Swap contracts Change in net unrealized appreciation
(depreciation) on swap contracts $ (25,333)
Written options and Net realized gain (loss) on
written swaptions written options $ 10,413
Written options and Change in net unrealized appreciation
written swaptions (depreciation) on written options $ 95,478
50 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V and the Shareowners of
Pioneer Absolute Return Bond Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Absolute Return Bond Fund (the "Fund"), one of the portfolios constituting
Pioneer Series Trust V, including the schedule of investments, as of August 31,
2014, and the related statements of operations and changes in net assets, and
the financial highlights for the period January 30, 2014, (commencement of
operations) through August 31, 2014. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audit.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of August 31, 2014, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Absolute Return Bond Fund as of August 31, 2014, and the results of its
operations, the changes in its net assets, and the financial highlights for the
period January 30, 2014, (commencement of operations) through August 31, 2014,
in conformity with accounting principles generally accepted in the United States
of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
October 29, 2014
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 51
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least the past five years. Trustees who are interested
persons of the Fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the Fund are
referred to as Independent Trustees. Each of the Trustees serves as a Trustee of
each of the 53 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
52 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
Independent Trustees
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (63) Trustee since 2013. Private investor (2004-2008 and Director, Broadridge Financial
Chairman of the Board Serves until a 2013-present); Chairman (2008 - Solutions, Inc. (investor
and Trustee successor trustee is 2013) and Chief Executive Officer communications and securities
elected or earlier (2008 - 2012), Quadriserv, Inc. processing provider for financial
retirement or removal. (technology products for securities services industry) (2009 - present);
lending industry); and Senior Director, Quadriserv, Inc. (2005 -
Executive Vice President, The Bank 2013); and Commissioner, New Jersey
of New York (financial and State Civil Service Commission (2011
securities services) (1986 - 2004) - present)
--------------------------------------------------------------------------------------------------------------------------------
David R. Bock (70) Trustee since 2013. Managing Partner, Federal City Director of Enterprise Community
Trustee Serves until a Capital Advisors (corporate advisory Investment, Inc. (privately held
successor trustee is services company) (1997 - 2004 and affordable housing finance company)
elected or earlier 2008 - present); Interim Chief (1985 - 2010); Director of Oxford
retirement or removal. Executive Officer, Oxford Analytica, Analytica, Inc. 2008 - present);
Inc. (privately held research and Director of The Swiss (Helvetia Fund,
consulting company) (2010); Inc. (closed-end fund) (2010 -
Executive Vice President and Chief present); and Director of New York
Financial Officer, I-trax, Inc. Mortgage Trust (publicly traded
(publicly traded health care mortgage REIT) (2004 - 2009, 2012 -
services company) (2004 - 2007); and present)
Executive Vice President and Chief
Financial Officer, Pedestal Inc.
(internet-based mortgage trading
company) (2000 - 2002)
--------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (70) Trustee since 2013. William Joseph Maier Professor of Trustee, Mellon Institutional Funds
Trustee Serves until a Political Economy, Harvard Investment Trust and Mellon
successor trustee is University (1972 - present) Institutional Funds Master Portfolio
elected or earlier (oversaw 17 portfolios in fund
retirement or removal. complex) (1989-2008)
--------------------------------------------------------------------------------------------------------------------------------
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 53
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (67) Trustee since 2013. Founding Director, Vice President None
Trustee Serves until a and Corporate Secretary, The
successor trustee is Winthrop Group, Inc. (consulting
elected or earlier firm) (1982 - present); Desautels
retirement or removal. Faculty of Management, McGill
University (1999 - present); and
Manager of Research Operations and
Organizational Learning, Xerox PARC,
Xerox's advance research center
(1990-1994)
--------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (66) Trustee since 2013. President and Chief Executive Director of New America High Income
Trustee Serves until a Officer, Newbury, Piret & Company, Fund, Inc. (closed-end investment
successor trustee is Inc. (investment banking firm) (1981 company) (2004 - present); and
elected or earlier - present) member, Board of Governors,
retirement or removal. Investment Company Institute (2000 -
2006)
--------------------------------------------------------------------------------------------------------------------------------
54 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
Interested Trustees
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (56)* Trustee since 2014. Director and Executive Vice President (since 2008) None
Trustee Serves until a and Chief Investment Officer, U.S. (since 2010), of
successor trustee is PIM-USA; Executive Vice President of Pioneer (since
elected or earlier 2008); Executive Vice President of Pioneer
retirement or Institutional Asset Management, Inc. (since 2009);
removal. Portfolio Manager of Pioneer (since 1999)
--------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer of the Fund's
investment adviser and certain of its affiliates.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 55
Fund Officers
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
--------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (52) Since 2014. Serves at Chair, Director, CEO and President of Pioneer None
President and the discretion of the Investment Management USA (since September 2014);
Chief Executive Officer Board. Chair, Director, CEO and President of Pioneer
Investment Management, Inc. (since September 2014);
Chair, Director, CEO and President of Pioneer Funds
Distributor, Inc. (since September 2014); Chair,
Director, CEO and President of Pioneer Institutional
Asset Management, Inc. (since September 2014); and
Chair, Director, and CEO of Pioneer Investment
Management Shareholder Services, Inc. (since
September 2014); Managing Director, Morgan Stanley
Investment Management (2010 - 2013); Director of
Institutional Business, CEO of International, Eaton
Vance Management (2005 - 2010)
--------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (49) Since 2013. Serves at Vice President and Associate General Counsel of None
Secretary and Chief the discretion of the Pioneer since January 2008; Secretary and Chief
Legal Officer Board. 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 Pioneer from July
2002 to December 2007
--------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (53) Since 2013. Serves at Fund Governance Director of Pioneer since December None
Assistant Secretary the discretion of the 2006 and Assistant Secretary of all the Pioneer
Board. Funds since June 2010; Manager - Fund Governance of
Pioneer from December 2003 to November 2006; and
Senior Paralegal of Pioneer from January 2000 to
November 2003
--------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (51) Since 2013. Serves at Senior Counsel of Pioneer since May 2013 and None
Assistant Secretary the discretion of the Assistant Secretary of all the Pioneer Funds since
Board. June 2010; Counsel of Pioneer from June 2007 to May
2013
--------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (54) Since 2013. Serves at Vice President - Fund Treasury of Pioneer; Treasurer None
Treasurer and Chief the discretion of the of all of the Pioneer Funds since March 2008; Deputy
Financial and Accounting Board. Treasurer of Pioneer from March 2004 to February
Officer of the Fund 2008; and Assistant Treasurer of all of the Pioneer
Funds from March 2004 to February 2008
--------------------------------------------------------------------------------------------------------------------------------
56 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
--------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (49) Since 2013. Serves at Director - Fund Treasury of Pioneer; and Assistant None
Assistant Treasurer the discretion of the Treasurer of all of the Pioneer Funds
Board.
--------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (56) Since 2013. Serves at Fund Accounting Manager - Fund Treasury of Pioneer; None
Assistant Treasurer the discretion of the and Assistant Treasurer of all of the Pioneer Funds
Board.
--------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (34) Since 2013. Serves at Fund Administration Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Pioneer since November 2008; Assistant Treasurer of
Board. all of the Pioneer Funds since January 2009; and
Client Service Manager - Institutional Investor
Services at State Street Bank from March 2003 to
March 2007
--------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (61) Since 2013. Serves at Chief Compliance Officer of Pioneer and of all the None
Chief Compliance Officer the discretion of the Pioneer Funds since March 2010; Director of Adviser
Board. and Portfolio Compliance at Pioneer since October
2005; and Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to
October 2005
--------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (43) Since 2013. Serves at Director - Transfer Agency Compliance of Pioneer and None
Anti-Money Laundering the discretion of the Anti-Money Laundering Officer of all the Pioneer
Officer Board. funds since 2006
--------------------------------------------------------------------------------------------------------------------------------
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 57
This page for your notes.
58 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
This page for your notes.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14 59
This page for your notes.
60 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 28082-00-1014
Pioneer Global
Equity Fund
--------------------------------------------------------------------------------
Annual Report | August 31, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A GLOSX
Class B GBSLX
Class C GCSLX
Class Y PGSYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 25
Notes to Financial Statements 33
Report of Independent Registered Public Accounting Firm 47
Trustees, Officers and Service Providers 49
Pioneer Global Equity Fund | Annual Report | 8/31/14 1
President's Letter
Dear Shareowner,
As we move into the final few months of 2014, we remain confident that U.S.
economic growth remains sustainable, if moderately paced. The weather-related
slowdown in the first quarter is behind us and labor market data continues to
show steady improvement. The number of people filing initial unemployment claims
is at the lowest level since the boom years of 2005-06, the number of job
openings is at the highest level since 2001, and unemployment is down to just
over 6%. Barring an external shock, we think it is likely that the domestic
economic expansion will continue until the economy reaches full employment.
Until then, remaining labor market slack and moderate capacity utilization offer
the potential for continuing non-inflationary growth.
The global economic picture is somewhat less rosy, as the Russia/Ukraine
conflict is exacting a toll on the European economy, Japan is working through
the impact of a large tax increase, and the growth of China's investment-driven
economy is slowing. On balance, though, we expect the global economy to continue
to grow in the second half of 2014, further supporting the U.S. economy.
While our outlook is constructive, the risk of an adverse "external" shock, such
as a military conflict, remains. While many such risks may already be "priced
into" the market, we caution against complacency and believe investors should
always be prepared for possible market volatility.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns.
2 Pioneer Global Equity Fund | Annual Report | 8/31/14
On August 11, 2014, I joined Pioneer as the new President and CEO of Pioneer
Investment Management USA, Inc. Since 1928, Pioneer's investment professionals
have worked on behalf of our shareholders to find attractive investment
opportunities, incorporating our proprietary research and prudent risk
management techniques to construct our portfolios.
In my role, I will focus on preserving many of the rich qualities of our
history, while maintaining balance with the demands of this ever-changing world
in which we live.
We greatly appreciate your trust in us and we encourage you to seek investment
guidance and advice from your financial advisor to discuss your goals and
develop an overall investment plan or framework that addresses both your short-
and long-term goals.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA, Inc.
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. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Global Equity Fund | Annual Report | 8/31/14 3
Portfolio Management Discussion | 8/31/14
In the following interview, portfolio managers Marco Pirondini and David Glazer
discuss the factors that influenced the performance of Pioneer Global Equity
Fund during the 12-month period ended August 31, 2014. Mr. Pirondini, Head of
Equities, U.S., Executive Vice President and a portfolio manager at Pioneer, and
Mr. Glazer, a Senior Vice President and a portfolio manager at Pioneer, are
responsible for the day-to-day management of the Fund.
Q How did the Fund perform during the 12-month period ended August 31, 2014?
A Pioneer Global Equity Fund's Class A shares returned 26.13% at net asset
value during the 12-month period ended August 31, 2014, while the Fund's
benchmark, the Morgan Stanley Capital International (MSCI) World (ND) Index
(the MSCI Index)(1), returned 21.10%. During the same period, the average
return of the 54 mutual funds in Lipper's Global Large-Cap Core Funds
category was 19.38%, and the average return of the 1,102 mutual funds in
Morningstar's World Stock Funds category was 19.51%.
Q How would you characterize the global equity markets during the 12-month
period ended August 31, 2014?
A The past 12 months were characterized for the most part by continued "easy"
monetary policy on the part of global central banks, although for a short
time the European Central Bank (ECB) went in the other direction and
tightened policy. Largely favorable policies from central banks paved the
way for positive equity performance, especially in the case of U.S. stocks.
The U.S. economy performed fairly well during the 12-month period, with the
exception of the first quarter of 2014, when severe winter weather in many
parts of the country hurt the U.S. growth rate. The positive economic
performance, including declining unemployment, occurred despite the fact
that government fiscal policy emphasized reducing the U.S.
(1) The MSCI information may only be used for your internal use, may not be
reproduced or re-disseminated in any form and may not be used as a basis
for or a component of any financial instruments or products or indices. None
of the MSCI information is intended to constitute investment advice or a
recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future performance
analysis, forecast or prediction. The MSCI information is provided on an "as
is" basis and the user of this information assumes the entire risk of any
use made of this information. MSCI, each of its affiliates and each other
person involved in or related to compiling, computing or creating any MSCI
information (collectively, the "MSCI Parties") expressly disclaims all
warranties (including, without limitation, any warranties of originality,
accuracy, completeness, timeliness, non-infringement, merchantability and
fitness for a particular purpose) with respect to this information. Without
limiting any of the foregoing, in no event shall any MSCI Party have any
liability for any direct, indirect, special, incidental, punitive,
consequential (including, without limitation, lost profits) or any other
damages.
4 Pioneer Global Equity Fund | Annual Report | 8/31/14
budget deficit, which at times acted as a drag on growth. Elsewhere, some
European countries fell back toward recession; however, toward the end of
the Fund's fiscal year, the ECB significantly eased its policies in the hope
of spurring a recovery. And despite increased geopolitical tensions, market
participants, by and large, did not make their "buy" or "sell" decisions
based on events in the Ukraine, Syria, Iraq or Gaza.
Q Would you review the Fund's overall investment approach?
A When picking investments for the portfolio we examine mid-and
large-capitalization stocks worldwide, including those located in the
emerging markets. From there, we build a diversified* portfolio. We look for
stocks that we think can provide "growth at a reasonable price," and so
there is a strong value component to our analysis. We seek to invest the
Fund in companies that are not only benefiting from operating efficiencies
as reflected in factors such as increased market share and revenues, but
that are also employing their capital efficiently. In particular, we
emphasize strong free cash flow, because that provides companies with the
flexibility to make share buybacks, reinvest in their businesses, make
acquisitions, and raise dividends**. We also look for stocks with attractive
dividend yields as well as those trading at below-market valuations.
Finally, we attempt to assess not only the potential price gains for each
stock, but also the stock's potential for a decline in price if
circumstances become unfavorable. We prefer stocks with the highest
potential upside, relative to their downside.
Q Which of your investment decisions had the biggest effects on the Fund's
performance during the 12-month period ended August 31, 2014?
A In the latter months of the period, we gradually increased the Fund's
exposure to U.S. stocks and reduced its European positions, which
significantly boosted performance. Over the full 12-month period, the Fund
displayed positive performance in nine of 10 equity market sectors. Stock
selection in the consumer discretionary, consumer staples and industrials
sectors contributed to returns, while stock selection within the energy
sector detracted.
Regarding individual stock selection, the Fund's position in the packaged
drink distributor Keurig Green Mountain represented the biggest contributor
to performance during the period. Investors reacted very positively to news
that Keurig Green Mountain had entered into an agreement with Coca-Cola to
add packaged soft drinks to their existing line
* Diversification does not assure a profit nor protect against loss in a
declining market.
** Dividends are not guaranteed.
Pioneer Global Equity Fund | Annual Report | 8/31/14 5
of coffee products. In addition, the portfolio's holdings in American
Airlines represented a major contributor to returns during the period. The
recent merger of US Airways and American's former parent (AMR Corp.) was
strongly endorsed by market participants, who look forward to the prospect
of US Airways' recognized efficiency and superior management bolstering
American's bottom line.
In contrast, the Fund's exposure to Samsung detracted from performance
during the period. The company has not performed well for the Fund, despite
its inexpensive valuation at the time we added it to the portfolio.
Additionally, the Fund's positions in Japanese banks Mitsubishi UFJ
Financial Group and Sumitomo were hurt by increased competition in the
domestic lending business.
Q What is your outlook for the next several months, and how is that outlook
reflected in the Fund's positioning?
A We continue to see positive developments in the United States, as many
U.S.-based businesses are demonstrating discipline in pursuing growth and
deploying capital. Therefore, we plan to maintain the Fund's overweight in
the U.S. We have also increased the portfolio's exposure to Japan. We think
that country's aggressive monetary policies, along with market reforms that
are being instituted there, will support equity prices.
In general, equity valuations - despite some pockets of overvalued stocks -
remain fair to inexpensive. We also believe that global inflation is
currently not a concern. Assuming that any geopolitical shocks remain
relatively contained, we anticipate a favorable investment environment for
global equities during the coming months. In light of our views, we plan to
continue to position the Fund's portfolio with an eye toward taking
advantage of advances in the global economy.
6 Pioneer Global Equity Fund | Annual Report | 8/31/14
Please refer to the Schedule of Investments on pages 16-24 for a full listing of
fund securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
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.
Investments in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
The Fund may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund performance.
Derivatives may have a leveraging effect on the Fund.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments 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. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Global Equity Fund | Annual Report | 8/31/14 7
Portfolio Summary | 8/31/14
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Information Technology 19.7%
Financials 16.8%
Health Care 15.2%
Consumer Discretionary 12.9%
Industrials 11.0%
Energy 10.0%
Telecommunication Services 6.2%
Consumer Staples 4.6%
Materials 2.8%
Utilities 0.8%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
United States 58.5%
Japan 13.6%
Netherlands 4.5%
Switzerland 4.0%
France 2.9%
Ireland 2.3%
United Kingdom 2.3%
India 1.5%
Germany 1.4%
South Korea 1.2%
Sweden 1.2%
Other (individually less than 1%) 6.6%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Microsoft Corp. 4.98%
--------------------------------------------------------------------------------
2. Apple, Inc. 3.68
--------------------------------------------------------------------------------
3. Nippon Telegraph & Telephone Corp. 2.81
--------------------------------------------------------------------------------
4. Cardinal Health, Inc. 2.80
--------------------------------------------------------------------------------
5. CVS Health Corp. 2.80
--------------------------------------------------------------------------------
6. eBay, Inc. 2.62
--------------------------------------------------------------------------------
7. Mitsubishi UFJ Financial Group, Inc. 2.35
--------------------------------------------------------------------------------
8. Royal Dutch Shell Plc 2.33
--------------------------------------------------------------------------------
9. Johnson & Johnson 2.31
--------------------------------------------------------------------------------
10. American Airlines Group, Inc. 2.24
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
8 Pioneer Global Equity Fund | Annual Report | 8/31/14
Prices and Distributions | 8/31/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/14 8/31/13
--------------------------------------------------------------------------------
A $14.05 $11.31
--------------------------------------------------------------------------------
B $13.84 $11.14
--------------------------------------------------------------------------------
C $13.78 $11.11
--------------------------------------------------------------------------------
Y $14.12 $11.37
--------------------------------------------------------------------------------
Distributions per Share: 9/1/13-8/31/14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.1950 $ -- $ --
--------------------------------------------------------------------------------
B $0.0724 $ -- $ --
--------------------------------------------------------------------------------
C $0.0965 $ -- $ --
--------------------------------------------------------------------------------
Y $0.2539 $ -- $ --
--------------------------------------------------------------------------------
The Morgan Stanley Capital International (MSCI) World ND Index is an unmanaged
measure of the performance of stock markets in the developed world. 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 on pages 10-13.
Pioneer Global Equity Fund | Annual Report | 8/31/14 9
Performance Update | 8/31/14 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 Equity Fund at public
offering price during the periods shown, compared to that of the Morgan Stanley
Capital International (MSCI) World ND Index.
Average Annual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
Net Public
Asset Offering MSCI
Value Price World
Period (NAV) (POP) ND Index
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 6.05% 5.33% 6.00%
5 Years 11.61 10.30 12.35
1 Year 26.13 18.87 21.10
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.69% 1.32%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Equity Fund MSCI World ND Index
12/31/2005 $ 9,425 $ 10,000
8/31/2006 $ 10,547 $ 10,949
8/31/2007 $ 12,085 $ 12,807
8/31/2008 $ 10,794 $ 11,261
8/31/2009 $ 9,085 $ 9,323
8/31/2010 $ 8,982 $ 9,467
8/31/2011 $ 9,923 $ 10,836
8/31/2012 $ 10,470 $ 11,716
8/31/2013 $ 12,477 $ 13,781
8/31/2014 $ 15,736 $ 16,688
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, for Class A shares. There can be no assurance
that 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.
10 Pioneer Global Equity Fund | Annual Report | 8/31/14
Performance Update | 8/31/14 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class B shares of Pioneer Global Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index.
Average Annual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
MSCI
If If World
Period Held Redeemed ND Index
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 5.09% 5.09% 6.00%
5 Years 10.60 10.60 12.35
1 Year 24.95 20.95 21.10
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.24% 2.22%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Equity Fund MSCI World ND Index
12/31/2005 $ 10,000 $ 10,000
8/31/2006 $ 11,111 $ 10,949
8/31/2007 $ 12,617 $ 12,807
8/31/2008 $ 11,172 $ 11,261
8/31/2009 $ 9,320 $ 9,323
8/31/2010 $ 9,133 $ 9,467
8/31/2011 $ 9,992 $ 10,836
8/31/2012 $ 10,452 $ 11,716
8/31/2013 $ 12,346 $ 13,781
8/31/2014 $ 15,427 $ 16,688
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus.
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 January 1, 2016, for Class B shares. There can be no assurance
that 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 taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
Pioneer Global Equity Fund | Annual Report | 8/31/14 11
Performance Update | 8/31/14 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 Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index.
Average Annual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
MSCI
If If World
Period Held Redeemed ND Index
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 5.09% 5.09% 6.00%
5 Years 10.60 10.60 12.35
1 Year 24.98 24.98 21.10
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.53% 2.22%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Equity Fund MSCI World ND Index
12/31/2005 $ 10,000 $ 10,000
8/31/2006 $ 11,111 $ 10,949
8/31/2007 $ 12,628 $ 12,807
8/31/2008 $ 11,179 $ 11,261
8/31/2009 $ 9,326 $ 9,323
8/31/2010 $ 9,139 $ 9,467
8/31/2011 $ 9,997 $ 10,836
8/31/2012 $ 10,453 $ 11,716
8/31/2013 $ 12,347 $ 13,781
8/31/2014 $ 15,432 $ 16,688
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2016, for Class C shares. There can be no assurance
that 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.
12 Pioneer Global Equity Fund | Annual Report | 8/31/14
Performance Update | 8/31/14 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 Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index.
Average Annual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
MSCI
If If World
Period Held Redeemed ND Index
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 6.39% 6.39% 6.00%
5 Years 12.16 12.16 12.35
1 Year 26.66 26.66 21.10
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.02% 0.82%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global Equity Fund MSCI World ND Index
12/31/2005 $ 5,000,000 $ 5,000,000
8/31/2006 $ 5,595,596 $ 5,474,445
8/31/2007 $ 6,411,652 $ 6,403,612
8/31/2008 $ 5,726,587 $ 5,630,699
8/31/2009 $ 4,836,744 $ 4,661,475
8/31/2010 $ 4,808,018 $ 4,733,454
8/31/2011 $ 5,335,128 $ 5,417,874
8/31/2012 $ 5,659,822 $ 5,857,774
8/31/2013 $ 6,777,847 $ 6,890,617
8/31/2014 $ 8,584,523 $ 8,344,239
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for periods prior to the inception of the Fund's Class Y
shares on December 31, 2008, is the NAV performance of the Fund's Class A
shares. The performance does not reflect differences in expenses, including the
Rule 12b-1 fees applicable to Class A shares. Since fees for Class A shares are
generally higher than those of Class Y shares, the performance for Class Y
shares prior to their inception would have been higher than the performance
shown. For the period beginning December 31, 2008, the actual performance of
Class Y shares is reflected.
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 January 1, 2016, for Class Y shares. There can be no assurance
that 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.
Pioneer Global Equity Fund | Annual Report | 8/31/14 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments and
redemption fees.
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 Equity Fund
Based on actual returns from March 1, 2014, through August 31, 2014.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 3/1/14
--------------------------------------------------------------------------------
Ending Account $1,069.26 $1,063.77 $1,064.02 $1,071.39
Value on 8/31/14
--------------------------------------------------------------------------------
Expenses Paid $ 7.04 $ 11.70 $ 11.71 $ 4.44
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.35%, 2.25%,
2.25%, and 0.85% for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
14 Pioneer Global Equity Fund | Annual Report | 8/31/14
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) or redemption fees that are charged at the time of the trans-
action. 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 Equity Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2014, through August 31, 2014.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 3/1/14
--------------------------------------------------------------------------------
Ending Account $1,018.40 $1,013.86 $1,013.86 $1,020.92
Value on 8/31/14
--------------------------------------------------------------------------------
Expenses Paid $ 6.87 $ 11.42 $ 11.42 $ 4.33
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.35%, 2.25%,
2.25%, and 0.85% for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
Pioneer Global Equity Fund | Annual Report | 8/31/14 15
Schedule of Investments | 8/31/14
----------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------
COMMON STOCKS -- 98.8%
ENERGY -- 10.0%
Oil & Gas Equipment & Services -- 1.7%
38,690 Halliburton Co. $ 2,615,831
----------------------------------------------------------------------------------------
Integrated Oil & Gas -- 3.1%
89,613 Royal Dutch Shell Plc $ 3,621,316
20,077 Total SA 1,324,892
------------
$ 4,946,208
----------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 4.3%
39,479 Cabot Oil & Gas Corp. $ 1,324,126
23,189 EOG Resources, Inc. 2,548,007
7,556 Pioneer Natural Resources Co. 1,576,559
13,379 Whiting Petroleum Corp.* 1,239,698
------------
$ 6,688,390
----------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.9%
64,952 Avance Gas Holding, Ltd. $ 1,440,837
------------
Total Energy $ 15,691,266
----------------------------------------------------------------------------------------
MATERIALS -- 2.8%
Commodity Chemicals -- 2.2%
29,900 LyondellBasell Industries NV $ 3,419,065
----------------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.5%
7,145 Monsanto Co. $ 826,319
----------------------------------------------------------------------------------------
Steel -- 0.1%
53,941 Fortescue Metals Group, Ltd. $ 210,915
------------
Total Materials $ 4,456,299
----------------------------------------------------------------------------------------
Capital Goods -- 7.6%
Aerospace & Defense -- 0.7%
10,028 United Technologies Corp. $ 1,082,823
----------------------------------------------------------------------------------------
Electrical Components & Equipment -- 2.7%
31,150 Eaton Corp. Plc $ 2,174,582
282,000 Hitachi, Ltd. 2,126,745
------------
$ 4,301,327
----------------------------------------------------------------------------------------
Heavy Electrical Equipment -- 0.5%
21,646 Alstom SA $ 766,047
----------------------------------------------------------------------------------------
Construction & Farm Machinery &
Heavy Trucks -- 0.8%
3,267,000 Nam Cheong, Ltd. $ 1,215,971
----------------------------------------------------------------------------------------
Industrial Machinery -- 2.9%
42,280 Ingersoll-Rand Plc $ 2,545,256
9,061 Parker-Hannifin Corp. 1,046,546
433,000 Sarine Technologies, Ltd. 1,022,528
------------
$ 4,614,330
------------
Total Capital Goods $ 11,980,498
----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Global Equity Fund | Annual Report | 8/31/14
----------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 1.0%
Human Resource &
Employment Services -- 1.0%
15,245 Towers Watson & Co. $ 1,671,309
------------
Total Commercial Services & Supplies $ 1,671,309
----------------------------------------------------------------------------------------
TRANSPORTATION -- 2.2%
Airlines -- 2.2%
89,758 American Airlines Group, Inc. $ 3,492,484
------------
Total Transportation $ 3,492,484
----------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 4.6%
Tires & Rubber -- 1.2%
57,000 Bridgestone Corp. $ 1,956,242
----------------------------------------------------------------------------------------
Automobile Manufacturers -- 3.4%
8,912 Daimler AG $ 728,812
141,000 Great Wall Motor Co, Ltd. 596,991
65,000 Mazda Motor Corp. 1,535,043
396,054 Tata Motors, Ltd. 2,484,146
------------
$ 5,344,992
------------
Total Automobiles & Components $ 7,301,234
----------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 3.4%
Homebuilding -- 2.0%
267,000 Sekisui Chemical Co., Ltd. $ 3,150,379
----------------------------------------------------------------------------------------
Leisure Products -- 0.5%
43,600 Sega Sammy Holdings, Inc. $ 831,441
----------------------------------------------------------------------------------------
Apparel, Accessories & Luxury Goods -- 0.6%
267,600 Samsonite International SA $ 923,473
----------------------------------------------------------------------------------------
Textiles -- 0.3%
434,000 Pacific Textiles Holdings, Ltd. $ 519,633
------------
Total Consumer Durables & Apparel $ 5,424,926
----------------------------------------------------------------------------------------
CONSUMER SERVICES -- 2.7%
Casinos & Gaming -- 0.8%
27,450 Grand Korea Leisure Co., Ltd. $ 1,223,588
----------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.9%
20,158 Marriott International, Inc. $ 1,398,965
----------------------------------------------------------------------------------------
Restaurants -- 1.0%
168,309 Domino's Pizza Group Plc $ 1,651,917
------------
Total Consumer Services $ 4,274,470
----------------------------------------------------------------------------------------
MEDIA -- 0.5%
Movies & Entertainment -- 0.5%
9,054 Viacom, Inc. (Class B) $ 734,732
------------
Total Media $ 734,732
----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/14 17
Schedule of Investments | 8/31/14 (continued)
----------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------
RETAILING -- 1.5%
Department Stores -- 0.8%
19,560 Macy's, Inc. $ 1,218,392
----------------------------------------------------------------------------------------
Apparel Retail -- 0.7%
15,061 Ross Stores, Inc. $ 1,135,901
------------
Total Retailing $ 2,354,293
----------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.8%
Drug Retail -- 2.8%
54,749 CVS Health Corp. $ 4,349,808
------------
Total Food & Staples Retailing $ 4,349,808
----------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.8%
Brewers -- 1.0%
21,977 Molson Coors Brewing Co. (Class B) $ 1,625,199
----------------------------------------------------------------------------------------
Soft Drinks -- 0.8%
26,915 Coca-Cola Enterprises, Inc. $ 1,285,999
------------
Total Food, Beverage & Tobacco $ 2,911,198
----------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.3%
Health Care Equipment -- 0.6%
9,079 Edwards Lifesciences Corp.* $ 901,182
----------------------------------------------------------------------------------------
Health Care Distributors -- 2.7%
59,153 Cardinal Health, Inc. $ 4,359,576
------------
Total Health Care Equipment & Services $ 5,260,758
----------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 11.7%
Biotechnology -- 0.4%
22,093 NPS Pharmaceuticals, Inc.* $ 666,767
----------------------------------------------------------------------------------------
Pharmaceuticals -- 10.8%
2,812 Allergan, Inc. $ 460,268
6,367 Jazz Pharmaceuticals Plc* 1,037,312
34,710 Johnson & Johnson 3,600,468
26,752 Merck & Co., Inc. 1,608,063
38,130 Novartis AG 3,423,317
98,206 Pfizer, Inc. 2,886,274
7,249 Roche Holding AG 2,115,579
11,980 Salix Pharmaceuticals, Ltd.* 1,906,138
------------
$ 17,037,419
----------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.5%
6,044 Thermo Fisher Scientific, Inc. $ 726,549
------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 18,430,735
----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Equity Fund | Annual Report | 8/31/14
----------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------
BANKS -- 6.6%
Diversified Banks -- 5.6%
494,930 Abu Dhabi Commercial Bank PJSC $ 1,081,016
448,512 Commercial Bank of Ceylon Plc 509,678
27,921 Doha Bank QSC 467,892
634,500 Mitsubishi UFJ Financial Group, Inc. 3,651,114
52,962 Nordea Bank AB 690,732
29,100 Sumitomo Mitsui Financial Group, Inc. 1,176,042
50,554 Swedbank AB 1,288,202
------------
$ 8,864,676
----------------------------------------------------------------------------------------
Regional Banks -- 1.0%
17,592 The PNC Financial Services Group, Inc. $ 1,490,922
------------
Total Banks $ 10,355,598
----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 8.1%
Other Diversified Financial Services -- 1.9%
28,366 Citigroup, Inc. $ 1,465,104
26,187 JPMorgan Chase & Co. 1,556,817
------------
$ 3,021,921
----------------------------------------------------------------------------------------
Specialized Finance -- 1.0%
36,823 The NASDAQ OMX Group, Inc. $ 1,600,696
----------------------------------------------------------------------------------------
Consumer Finance -- 2.6%
7,727 American Express Co. $ 691,953
53,970 Discover Financial Services, Inc. 3,366,109
------------
$ 4,058,062
----------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.9%
126,069 Apollo Investment Corp. $ 1,105,625
16,129 TriplePoint Venture Growth BDC Corp. 250,322
------------
$ 1,355,947
----------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 1.7%
78,000 Morgan Stanley Co. $ 2,676,180
------------
Total Diversified Financials $ 12,712,806
----------------------------------------------------------------------------------------
INSURANCE -- 1.5%
Multi-line Insurance -- 1.0%
9,148 Allianz SE* $ 1,559,932
----------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.5%
7,216 ACE, Ltd. $ 767,277
------------
Total Insurance $ 2,327,209
----------------------------------------------------------------------------------------
REAL ESTATE -- 0.5%
Diversified REIT -- 0.5%
60,010 American Realty Capital Properties, Inc. $ 789,732
------------
Total Real Estate $ 789,732
----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/14 19
Schedule of Investments | 8/31/14 (continued)
----------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 11.9%
Internet Software & Services -- 4.8%
73,589 eBay, Inc.* $ 4,084,190
87,726 Yahoo!, Inc.* 3,378,328
------------
$ 7,462,518
----------------------------------------------------------------------------------------
IT Consulting & Other Services -- 1.5%
351,000 Fujitsu, Ltd. $ 2,401,433
----------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.7%
5,084 Visa, Inc. $ 1,080,452
----------------------------------------------------------------------------------------
Systems Software -- 4.9%
170,556 Microsoft Corp. $ 7,748,360
------------
Total Software & Services $ 18,692,763
----------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 7.2%
Communications Equipment -- 0.3%
19,065 Juniper Networks, Inc.* $ 442,117
----------------------------------------------------------------------------------------
Computer Hardware -- 3.7%
55,885 Apple, Inc. $ 5,728,212
----------------------------------------------------------------------------------------
Computer Storage & Peripherals -- 1.3%
16,247 EMC Corp. $ 479,774
35,260 NetApp, Inc. 1,486,562
------------
$ 1,966,336
----------------------------------------------------------------------------------------
Electronic Equipment Manufacturers -- 0.8%
1,437,000 PAX Global Technology, Ltd.* $ 1,306,653
----------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.4%
95,000 Global Display Co., Ltd. $ 686,181
----------------------------------------------------------------------------------------
Office Electronics -- 0.7%
83,889 Xerox Corp. $ 1,158,507
------------
Total Technology Hardware & Equipment $ 11,288,006
----------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.5%
Semiconductors -- 0.5%
224,000 Transcend Information, Inc. $ 754,326
------------
Total Semiconductors & Semiconductor Equipment $ 754,326
----------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 6.2%
Integrated Telecommunication Services -- 4.9%
65,200 Nippon Telegraph & Telephone Corp. $ 4,371,715
124,753 Orange SA 1,890,418
30,015 Verizon Communications, Inc. 1,495,347
------------
$ 7,757,480
----------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.3%
568,505 Vodafone Group Plc $ 1,953,283
------------
Total Telecommunication Services $ 9,710,763
----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Equity Fund | Annual Report | 8/31/14
----------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------
UTILITIES -- 0.4%
Multi-Utilities -- 0.4%
26,372 GDF Suez $ 650,421
------------
Total Utilities $ 650,421
----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $131,393,925) $155,615,634
----------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 98.8%
(Cost $131,393,925) (a) (b) $155,615,634
----------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 1.2% $ 1,905,047
----------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $157,520,681
========================================================================================
* Non-income producing security.
REIT Real Estate Investment Trust.
(a) At August 31, 2014, the net unrealized appreciation (depreciation) on
investments based on cost for federal income tax purposes of $131,557,084
was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $26,558,873
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (2,500,323)
-----------
Net unrealized appreciation $24,058,550
===========
(b) Distributions of investments by country of issue, as a percentage of total
investment in securities (excluding temporary cash investments), is as
follows:
United States 58.5%
Japan 13.6%
Netherlands 4.5%
Switzerland 4.0%
France 2.9%
Ireland 2.3%
United Kingdom 2.3%
India 1.5%
Germany 1.4%
South Korea 1.2%
Sweden 1.2%
Other (individually less than 1%) 6.6%
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2014 aggregated $185,725,840 and $199,062,373,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/14 21
Schedule of Investments | 8/31/14 (continued)
TOTAL RETURN SWAP AGREEMENTS
-----------------------------------------------------------------------------------------------------------
Net
Unrealized
Notional Pay/ Obligation Entity/ Expiration Appreciation
Principal Counterparty Receive Index Coupon Date (Depreciation)
-----------------------------------------------------------------------------------------------------------
JPY (474,190,634) Citibank NA Pay JPX-NIKKEI 1M Libor 6/10/15 $78,710
INDEX 400 +53 bps
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
JPY Japanese Yen
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed 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
risk, 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.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
as Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Equity Fund | Annual Report | 8/31/14
The following is a summary of the inputs used as of August 31, 2014, in valuing
the Fund's investments:
------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------
Common Stocks
Energy
Integrated Oil & Gas $ -- $4,946,208 $ -- $4,946,208
Oil & Gas Storage
& Transportation -- 1,440,837 -- 1,440,837
Materials
Steel -- 210,915 -- 210,915
Capital Goods
Electrical Components
& Equipment 2,174,582 2,126,745 -- 4,301,327
Heavy Electrical Equipment -- 766,047 -- 766,047
Construction & Farm
Machinery & Heavy Trucks -- 1,215,971 -- 1,215,971
Industrial Machinery 3,591,802 1,022,528 -- 4,614,330
Automobiles & Components --
Tires & Rubber -- 1,956,242 -- 1,956,242
Automobile Manufacturers -- 5,344,992 -- 5,344,992
Consumer Durables & Apparel
Homebuilding -- 3,150,379 -- 3,150,379
Leisure Products -- 831,441 -- 831,441
Apparel, Accessories &
Luxury Goods -- 923,473 -- 923,473
Textiles -- 519,633 -- 519,633
Consumer Services
Casinos & Gaming -- 1,223,588 -- 1,223,588
Restaurants -- 1,651,917 -- 1,651,917
Pharmaceuticals,
Biotechnology &
Life Sciences
Pharmaceuticals 11,498,523 5,538,896 -- 17,037,419
Banks
Diversified Banks -- 8,864,676 -- 8,864,676
Insurance
Multi-line Insurance -- 1,559,932 -- 1,559,932
Software & Services
IT Consulting &
Other Services -- 2,401,433 -- 2,401,433
Technology Hardware
& Equipment
Electronic Equipment
Manufacturers -- 1,306,653 -- 1,306,653
Electronic Manufacturing
Services -- 686,181 -- 686,181
Semiconductors &
Semiconductor Equipment
Semiconductors -- 754,326 -- 754,326
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/14 23
Schedule of Investments | 8/31/14 (continued)
--------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------
Telecommunication Services
Integrated Telecommunication
Services $ 1,495,347 $ 6,262,133 $ -- $ 7,757,480
Wireless Telecommunication
Services -- 1,953,283 -- 1,953,283
Utilities
Multi-Utilities -- 650,421 -- 650,421
Other Common Stock 79,546,530 -- -- 79,546,530
--------------------------------------------------------------------------------------
Total $ 98,306,784 $57,308,850 $ -- $155,615,634
======================================================================================
Other Financial Instruments:
Net Unrealized Appreciation
On Forward Foreign
Currency Contracts $ -- $ 47,706 $ -- $ 47,706
Net Unrealized Appreciation
On Total Return Swaps -- 78,710 -- 78,710
Net Unrealized Depreciation
On Futures Contracts (147,350) -- -- (147,350)
--------------------------------------------------------------------------------------
Total $ (147,350) $ 126,416 $ -- $ (20,934)
======================================================================================
During the year ended August 31, 2014, there were no transfers between Levels 1,
2 and 3.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Equity Fund | Annual Report | 8/31/14
Statement of Assets and Liabilities | 8/31/14
ASSETS:
Investment in securities (cost $131,393,925) $155,615,634
Cash 1,155,857
Foreign currencies, at value (cost $537,330) 530,907
Futures collateral 462,000
Receivables --
Investment securities sold 88,191
Fund shares sold 141,589
Dividends and foreign taxes withheld 469,822
Due from Pioneer Investment Management, Inc. 67,011
Net unrealized appreciation on forward foreign currency contracts 47,706
Unrealized appreciation on total return swap 78,710
Other 5,837
------------------------------------------------------------------------------------
Total assets $158,663,264
====================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 467,947
Fund shares repurchased 143,290
Variation margin 13,793
Reserve for repatriation taxes 116,781
Unrealized depreciation on futures contracts 147,350
Due to affiliates 96,054
Trustee fees 1,081
Accrued expenses 156,287
------------------------------------------------------------------------------------
Total liabilities $ 1,142,583
====================================================================================
NET ASSETS:
Paid-in capital $155,835,113
Undistributed net investment income 3,778,748
Accumulated net realized loss on investments and foreign
currency transactions (26,164,865)
Net unrealized appreciation on investments 24,221,709
Net unrealized depreciation on futures contracts (147,350)
Net unrealized appreciation on total return swap 78,710
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (81,384)
------------------------------------------------------------------------------------
Total net assets $157,520,681
====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $76,637,768/5,456,329 shares) $ 14.05
Class B (based on $2,072,707/149,799 shares) $ 13.84
Class C (based on $8,426,605/611,535 shares) $ 13.78
Class Y (based on $70,383,601/4,983,803 shares) $ 14.12
MAXIMUM OFFERING PRICE:
Class A ($14.05 (divided by) 94.25% ) $ 14.91
====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/14 25
Statement of Operations
For the Year Ended 8/31/14
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $114,164) $ 5,223,518
Interest 597
-------------------------------------------------------------------------------------------------------
Total investment income $ 5,224,115
-------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,168,621
Transfer agent fees
Class A 180,607
Class B 22,675
Class C 18,806
Class Y 564
Distribution fees
Class A 178,943
Class B 23,263
Class C 77,081
Shareholder communications expense 99,377
Administrative reimbursements 66,499
Custodian fees 70,198
Registration fees 69,184
Professional fees 65,462
Printing expense 27,142
Fees and expenses of nonaffiliated Trustees 6,652
Miscellaneous 10,865
-------------------------------------------------------------------------------------------------------
Total expenses $ 2,085,939
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (332,343)
-------------------------------------------------------------------------------------------------------
Net expenses $ 1,753,596
-------------------------------------------------------------------------------------------------------
Net investment income $ 3,470,519
-------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS, TOTAL
RETURN SWAP, WRITTEN OPTIONS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments (net of foreign capital gains taxes of $462) $20,804,024
Futures contracts (483,975)
Total return swap 53,095
Written options 230,596
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 734,532 $21,338,272
-------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments (net increase in reserve for capital gains
taxes of $116,781) $11,461,380
Futures contracts (149,683)
Total return swap 78,710
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (206,830) $11,183,577
-------------------------------------------------------------------------------------------------------
Net gain on investments, futures contracts, total return swap, written
options, and foreign currency transactions $32,521,849
-------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $35,992,368
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Equity Fund | Annual Report | 8/31/14
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/14 8/31/13
-----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 3,470,519 $ 2,135,061
Net realized gain (loss) on investments, futures contracts,
total return swap, written options, and foreign
currency transactions 21,338,272 17,999,088
Change in net unrealized appreciation (depreciation)
on investments, futures contracts, total return
swap and foreign currency transactions 11,183,577 3,932,569
-----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 35,992,368 $ 24,066,718
-----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.20 and $0.16 per share, respectively) $ (1,074,448) $ (917,101)
Class B ($0.07 and $0.05 per share, respectively) (14,217) (14,373)
Class C ($0.10 and $0.07 per share, respectively) (57,648) (39,684)
Class Y ($0.25 and $0.21 per share, respectively) (1,568,569) (1,319,980)
-----------------------------------------------------------------------------------------
Total distributions to shareowners $ (2,714,882) $ (2,291,138)
-----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 14,621,595 $ 10,898,587
Reinvestment of distributions 1,128,095 948,339
Cost of shares repurchased (35,112,389) (15,721,764)
-----------------------------------------------------------------------------------------
Net decrease in net assets resulting from Fund
share transactions $ (19,362,699) $ (3,874,838)
-----------------------------------------------------------------------------------------
Net increase in net assets $ 13,914,787 $ 17,900,742
NET ASSETS:
Beginning of year 143,605,894 125,705,152
-----------------------------------------------------------------------------------------
End of year $ 157,520,681 $143,605,894
-----------------------------------------------------------------------------------------
Undistributed net investment income $ 3,778,748 $ 2,279,756
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/14 27
Statements of Changes in Net Assets (continued)
---------------------------------------------------------------------------------------
'14 Shares '14 Amount '13 Shares '13 Amount
---------------------------------------------------------------------------------------
Class A
Shares sold 603,313 $ 7,775,776 622,079 $ 6,711,950
Reinvestment of distributions 81,986 1,045,326 87,882 888,496
Less shares repurchased (798,782) (10,307,534) (1,049,318) (11,277,005)
---------------------------------------------------------------------------------------
Net decrease (113,483) $ (1,486,432) (339,357) $ (3,676,559)
=======================================================================================
Class B
Shares sold or exchanged 10,609 $ 126,556 16,613 $ 170,182
Reinvestment of distributions 1,102 13,921 1,414 14,158
Less shares repurchased (74,502) (944,641) (104,877) (1,102,463)
---------------------------------------------------------------------------------------
Net decrease (62,791) $ (804,164) (86,850) $ (918,123)
=======================================================================================
Class C
Shares sold 158,541 $ 2,023,027 96,013 $ 1,020,165
Reinvestment of distributions 4,350 54,723 3,739 37,351
Less shares repurchased (137,739) (1,776,869) (113,209) (1,192,619)
---------------------------------------------------------------------------------------
Net increase (decrease) 25,152 $ 300,881 (13,457) $ (135,103)
=======================================================================================
Class Y
Shares sold 349,580 $ 4,696,236 289,411 $ 2,996,290
Reinvestment of distributions 1,106 14,125 823 8,334
Less shares repurchased (1,676,590) (22,083,345) (196,154) (2,149,677)
---------------------------------------------------------------------------------------
Net increase (decrease) (1,325,904) $ (17,372,984) 94,080 $ 854,947
=======================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Equity Fund | Annual Report | 8/31/14
Financial Highlights
--------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/14 8/31/13 8/31/12 8/31/11 8/31/10
--------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 11.31 $ 9.64 $ 9.27 $ 8.44 $ 8.56
--------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.27 $ 0.15 $ 0.17 $ 0.13 $ 0.08
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.67 1.68 0.33 0.76 (0.17)
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.94 $ 1.83 $ 0.50 $ 0.89 $ (0.09)
--------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.20) $ (0.16) $ (0.13) $ (0.06) $ (0.03)
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.74 $ 1.67 $ 0.37 $ 0.83 $ (0.12)
--------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.05 $ 11.31 $ 9.64 $ 9.27 $ 8.44
==============================================================================================================
Total return* 26.13% 19.17% 5.50% 10.48% (1.13)%
Ratio of net expenses to average net assets 1.30% 1.30% 1.30% 1.30% 1.30%
Ratio of net investment income to average net assets 2.01% 1.35% 1.71% 1.23% 0.82%
Portfolio turnover rate 121% 160% 152% 194% 114%
Net assets, end of period (in thousands) $76,638 $62,996 $56,970 $60,701 $61,466
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 1.56% 1.67% 1.72% 1.67% 1.71%
Net investment income 1.75% 0.98% 1.29% 0.86% 0.41%
==============================================================================================================
* 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 Equity Fund | Annual Report | 8/31/14 29
Financial Highlights (continued)
-------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/14 8/31/13 8/31/12 8/31/11 8/31/10
-------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 11.14 $ 9.48 $ 9.08 $ 8.30 $ 8.47
-------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.22 $ 0.09 $ 0.16 $ 0.07 $ 0.00(a)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.55 1.62 0.26 0.71 (0.17)
-------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.77 $ 1.71 $ 0.42 $ 0.78 $ (0.17)
-------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.07) $ (0.05) $ (0.02) $ -- $ --
-------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.70 $ 1.66 $ 0.40 $ 0.78 $ (0.17)
-------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.84 $ 11.14 $ 9.48 $ 9.08 $ 8.30
===================================================================================================================
Total return* 24.95% 18.13% 4.60% 9.40% (2.01)%
Ratio of net expenses to average net assets 2.20% 2.20% 2.20% 2.20% 2.20%
Ratio of net investment income (loss) to average net assets 1.11% 0.43% 0.79% 0.29% (0.11)%
Portfolio turnover rate 121% 160% 152% 194% 114%
Net assets, end of period (in thousands) $ 2,073 $ 2,368 $ 2,838 $ 4,175 $ 5,587
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 3.17% 3.22% 3.14% 2.97% 2.93%
Net investment income (loss) 0.14% (0.59)% (0.15)% (0.49)% (0.84)%
===================================================================================================================
(a) Amount rounds to less than $0.01 per share.
* 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.
30 Pioneer Global Equity Fund | Annual Report | 8/31/14
----------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/14 8/31/13 8/31/12 8/31/11 8/31/10
----------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 11.11 $ 9.47 $ 9.09 $ 8.31 $ 8.48
----------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.14 $ 0.05 $ 0.10 $ 0.04 $ 0.00(a)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.63 1.66 0.31 0.74 (0.17)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.77 $ 1.71 $ 0.41 $ 0.78 $ (0.17)
----------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.10) $ (0.07) $ (0.03) $ -- $ --
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.67 $ 1.64 $ 0.38 $ 0.78 $ (0.17)
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.78 $ 11.11 $ 9.47 $ 9.09 $ 8.31
================================================================================================================
Total return* 24.98% 18.11% 4.56% 9.39% (2.00)%
Ratio of net expenses to average net assets 2.20% 2.20% 2.20% 2.20% 2.20%
Ratio of net investment income (loss) to average net assets 1.13% 0.45% 0.82% 0.35% (0.07)%
Portfolio turnover rate 121% 160% 152% 194% 114%
Net assets, end of period (in thousands) $ 8,427 $ 6,516 $ 5,682 $ 6,439 $ 6,118
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 2.35% 2.51% 2.53% 2.48% 2.54%
Net investment income (loss) 0.98% 0.14% 0.49% 0.07% (0.41)%
================================================================================================================
(a) Amount rounds to less than $0.01 per share
* 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 Equity Fund | Annual Report | 8/31/14 31
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/14 8/31/13 8/31/12 8/31/11 8/31/10
--------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 11.37 $ 9.69 $ 9.32 $ 8.49 $ 8.59
--------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.37 $ 0.20 $ 0.21 $ 0.18 $ 0.12
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.63 1.69 0.34 0.76 (0.17)
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.00 $ 1.89 $ 0.55 $ 0.94 $ (0.05)
--------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.25) $ (0.21) $ (0.18) $ (0.11) $ (0.05)
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.75 $ 1.68 $ 0.37 $ 0.83 $ (0.10)
--------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.12 $ 11.37 $ 9.69 $ 9.32 $ 8.49
==============================================================================================================
Total return* 26.66% 19.75% 6.09% 10.96% (0.59)%
Ratio of net expenses to average net assets 0.80% 0.80% 0.80% 0.80% 0.80%
Ratio of net investment income to average net assets 2.58% 1.85% 2.22% 1.74% 1.33%
Portfolio turnover rate 121% 160% 152% 194% 114%
Net assets, end of period (in thousands) $70,384 $71,726 $60,214 $59,927 $58,692
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 0.95% 1.00% 0.97% 0.95% 0.96%
Net investment income 2.43% 1.65% 2.05% 1.59% 1.17%
==============================================================================================================
* 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.
32 Pioneer Global Equity Fund | Annual Report | 8/31/14
Notes to Financial Statements | 8/31/14
1. Organization and Significant Accounting Policies
Pioneer Global Equity Fund, formerly Pioneer Global Select Equity Fund (the
Fund), is one of five portfolios comprising Pioneer Series Trust V, a Delaware
statutory trust. The Fund is registered under the Investment Company Act of 1940
as a diversified, open-end management investment company. The Fund commenced
operations on December 15, 2005. The Fund's investment objective is to seek
long-term capital growth.
The Fund offers four classes of shares designated as Class A, Class B, Class C
and Class Y shares. Class Y shares were first publicly offered on December 31,
2008. Effective as of the close of business on December 31, 2009, Class B shares
are no longer offered to new or existing shareholders, except that dividends
and/or capital gain distributions may continue to be reinvested in Class B
shares, and shareholders may exchange their Class B shares for Class B shares of
other Pioneer funds, as permitted by existing exchange privileges. 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 the flexibility to specify either per-share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per-share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares. Class B shares
convert to Class A shares approximately eight years after the date of purchase.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets
Pioneer Global Equity Fund | Annual Report | 8/31/14 33
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are valued
using the last sale price on the principal exchange where they are traded.
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. Short-term fixed income securities
with remaining maturities of sixty days or less generally are valued at
amortized cost. Shares of money market mutual funds are valued at such
funds' net asset value.
The Fund invests primarily in securities of non-U.S. issuers. The principal
exchanges and markets for such securities have closing times prior to the
close of the NYSE. However, the value of these securities may be influenced
by changes in global markets occurring after the closing times of the local
exchanges and markets up to the time the Fund determines its net asset
value. Consequently, the Board of Trustees of the Fund has determined that
daily adjustments to the valuation of securities of non-U.S. issuers by
utilizing an independent pricing service that supplies an appropriate fair
value factor is appropriate for the Fund.
Securities for which independent pricing services 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 Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by 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,
34 Pioneer Global Equity Fund | Annual Report | 8/31/14
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. PIM'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.
At August 31, 2014, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services or broker-dealers).
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.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of August 31, 2014, the Fund did not accrue any interest or penalties
with respect to uncertain tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years are subject to examination by
Federal and State tax authorities.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain countries. During
the year ended August 31, 2014, the Fund paid $462 in such taxes.
In determining the daily net asset value, the Fund estimates the reserve for
such taxes, if any, associated with investments in certain countries. The
estimated reserve for the capital gains is based on the net unrealized
appreciation on certain portfolio securities, the holding period of such
securities and the related tax rates, tax loss carryforward (if applicable)
and other such factors. As of August 31, 2014, the Fund had $116,781 in
reserve related to capital gains.
Pioneer Global Equity Fund | Annual Report | 8/31/14 35
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. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences. At
August 31, 2014, the Fund reclassified $743,355 to increase undistributed
net investment income and $743,355 to increase accumulated net realized loss
on investments to reflect permanent book/tax differences. These adjustments
have no impact on net assets or the results of operations.
At August 31, 2014, the Fund had a net capital loss carryforward of
$26,144,250, which will expire in 2016 if not utilized.
During the year ended August 31, 2014, a capital loss carryforward of
$20,561,506 was utilized to offset net realized gains by the Fund.
The tax character of distributions paid during the years ended August 31,
2014 and August 31, 2013, was as follows:
----------------------------------------------------------------------------
2014 2013
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $2,714,882 $2,291,138
----------------------------------------------------------------------------
Total $2,714,882 $2,291,138
============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2014:
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 3,900,336
Capital loss carryforward (26,144,250)
Net unrealized appreciation 23,929,482
----------------------------------------------------------------------------
Total $ 1,685,568
============================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales and the mark-to-
market of forwards, futures, and swap contracts.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $7,781 in underwriting commissions on the sale of Class A shares
during the year ended August 31, 2014.
36 Pioneer Global Equity Fund | Annual Report | 8/31/14
D. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates. Net realized gains and losses on foreign currency
transactions, if any, represent, among other things, the net realized gains
and losses on foreign currency contracts, disposition of foreign currencies
and the difference between the amount of income accrued and the U.S. dollars
actually received. Further, the effects of changes in foreign currency
exchange rates on investments are not segregated in the Statement of
Operations from the effects of changes in the market price of those
securities but are included with the net realized and unrealized gain or
loss on investments.
E. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
are recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 6).
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, Class B 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 transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), 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).
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 B, Class C and Class Y shares
can reflect different transfer agent and distribution expense rates.
Pioneer Global Equity Fund | Annual Report | 8/31/14 37
G. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. 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 prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
H. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency 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
August 31, 2014 was $ 462,000. Subsequent payments for futures contracts
("variation margin") are paid or received by the Fund, depending on the
daily fluctuation in the value of the contracts, and are recorded by the
Fund as unrealized appreciation or depreciation. When the contract is
closed, the Fund realizes a gain or loss equal to the difference between the
opening and closing value of the contract as well as any fluctuation in
foreign currency exchange rates where applicable. The use of futures
contracts involves, to varying degrees, elements of market, interest rate,
currency exchange rate and counterparty risks, which may exceed the amounts
recognized by the Fund. Changes in value of the contracts may not directly
correlate to the changes in value of the underlying securities. These risks
may decrease the effectiveness of the Fund's hedging strategies and
potentially result in a loss. The average value of contracts open during the
year ended August 31, 2014 was $2,387,650.
At August 31, 2014, open futures contracts were as follows:
----------------------------------------------------------------------------
Number of
Contracts Settlement Unrealized
Type Long/(Short) Month Value Depreciation
----------------------------------------------------------------------------
F/C S&P 500 Future (12) 9/14 $(6,004,200) $(147,350)
----------------------------------------------------------------------------
Total $(147,350)
============================================================================
I. Purchased Options
The Fund may purchase call and put options in order to attempt to hedge
against changes in the value of portfolio securities or to seek to increase
total return. Purchased call and put options entitle the Fund to buy and
sell a
38 Pioneer Global Equity Fund | Annual Report | 8/31/14
specified number of shares or units of a particular security, currency or
index at a specified price at a specific date or within a specific period of
time. Upon the purchase of a call or put option, the premium paid by the
Fund is included in the Statement of Assets and Liabilities as an
investment. All premiums are marked-to-market daily, and any unrealized
appreciation or depreciation are recorded in the Fund's financial
statements. As the purchaser of an index option, the Fund has the right to
receive a cash payment equal to any depreciation in the value of the index
below the strike price of the option (in the case of a put) or equal to any
appreciation in the value of the index over the strike price of the option
(in the case of a call) as of the valuation date of the option. Premiums
paid for purchased calls and put options which have expired are treated as
realized losses on investments in the Statement of Operations. Upon the
exercise or closing of a purchased put option, the premium is offset against
the proceeds on the sale of the underlying security or financial instrument
in order to determine the realized gain or loss on investments. Upon the
exercise or closing of a purchased call option, the premium is added to the
cost of the security or financial instrument. The risk associated with
purchasing options is limited to the premium originally paid. The average
value of contracts open during the year ended August 31, 2014 was $10,812.
There were no purchased options outstanding at August 31, 2014.
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 a liability 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. 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, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. 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 value of contracts open during the year ended August 31, 2014
was $61,487. Written call option contracts outstanding at period end are
listed at the end of the Fund's schedule of investments. There were no
written options outstanding at August 31, 2014.
Pioneer Global Equity Fund | Annual Report | 8/31/14 39
Transactions in written options for the year ended August 31, 2014 are
summarized as follows:
---------------------------------------------------------------------------
Number of Contracts Premium Paid
Options open at beginning of period -- $ --
Options opened -- --
Options exercised 35 4,506
Options closed -- --
Options expired (35) (4,506)
---------------------------------------------------------------------------
Options open at end of period -- $ --
===========================================================================
K. Total Return Swap Agreements
The Fund may enter into a total return swap to attempt to manage and/or gain
exposure to a security or market. Pursuant to a total return swap agreement,
the Fund negotiates with a counterparty to exchange a periodic stream of
payments. One party makes payments based on the total return of a reference
asset (such as a security or a basket of securities or securities index),
and in return receives fixed or floating rate interest payments. The total
return of the reference asset typically includes appreciation or
depreciation on the reference asset, plus any interest or dividend payments.
To the extent that the total return of the reference asset exceeds or falls
short of the offsetting interest rate obligation, the Fund will receive a
payment from or make a payment to the counterparty.
Total return swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Payments received or made are recorded as realized gains or
losses in the Statement of Operations. Total return swap contracts are
subject to counterparty risk and unanticipated movements in value of
exchange rates, interest rates, securities or the index.
Open total return swap contracts at August 31, 2014 are listed in the
Schedule of Investments. The average value of swap contracts open during the
year ended August 31, 2014 was $28,563.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate equal to
0.75% of the Fund's average daily net assets up to $500 million, 0.70% of the
next $500 million of the Fund's average daily net assets and 0.65% of the Fund's
average daily net assets over $1 billion. For the year ended August 31, 2014,
the effective management fee (excluding waivers and/or assumption of expenses)
was equivalent to 0.75% of the Fund's average daily net assets.
40 Pioneer Global Equity Fund | Annual Report | 8/31/14
PIM has contractually agreed to limit ordinary operating expenses of the Fund to
the extent required to reduce Fund expenses to 1.30%, 2.20%, 2.20%, and 0.80% of
the average daily net assets attributable to Class A, Class B, Class C and Class
Y shares, respectively. Fees waived and expenses reimbursed during the year
ended August 31, 2014 are reflected on the Statement of Operations. These
expense limitations are in effect through January 1, 2015. There can be no
assurance that PIM 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
$68,855 in management fees, administrative costs and certain other
reimbursements payable to PIM at August 31, 2014.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the year ended August 31, 2014, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $79,600
Class B 5,800
Class C 11,600
Class Y 2,377
--------------------------------------------------------------------------------
Total: $99,377
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $23,951 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at August 31, 2014.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B and Class C
shares. Pursuant to the Plan, the Fund pays PFD 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 PFD 1.00% of the
average daily net assets attributable to Class B and Class C shares. The fee
Pioneer Global Equity Fund | Annual Report | 8/31/14 41
for Class B and 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 B and Class C
shares. Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $3,248 in distribution fees payable to PFD at August 31, 2014.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Class B shares that are redeemed within five years
of purchase are subject to a CDSC at declining rates beginning at 4.00%, based
on the lower of cost or market value of shares being redeemed. 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 PFD. For the year ended August 31, 2014, CDSCs in the
amount of $3,402 were paid to PFD.
5. Expense Offsets Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS, which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended August 31, 2014, the Fund's expenses were
not reduced under such arrangements.
6. Forward Foreign Currency Contracts
At August 31, 2014, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the year ended August 31, 2014 was $1,725,316.
Open forward foreign currency contracts at August 31, 2014 were as follows:
----------------------------------------------------------------------------------------------
Net
Net In Unrealized
Contracts Exchange Settlement Appreciation
Currency to Deliver For Date Value (Depreciation)
----------------------------------------------------------------------------------------------
EUR (Euro) 1,500,000 $ 1,980,444 9/25/14 $ 1,970,868 $ (9,576)
EUR (Euro) (1,500,000) (2,028,150) 9/25/14 (1,970,868) 57,282
HKD (Hong Kong Dollar) 282,100 36,400 9/2/14 36,398 2
SGD (Singapore Dollar) 9,404 7,527 9/3/14 7,528 (1)
SGD (Singapore Dollar) 4,702 3,763 9/3/14 3,764 (1)
----------------------------------------------------------------------------------------------
Total $ 47,706
==============================================================================================
42 Pioneer Global Equity Fund | Annual Report | 8/31/14
7. Assets and Liabilities Offsetting
Financial instruments subject to an enforceable master netting agreement have
been offset on the Statement of Assets and Liabilities. The following charts
show gross assets and liabilities of the Fund as of August 31, 2014.
-----------------------------------------------------------------------------------------------
Assets:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented in -------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
----------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 57,284 $ (9,578) $ 47,706 $ -- $ -- $ 47,706
Total return swap $ 78,710 $ -- $ 78,710 $ -- $ -- $ 78,710
----------------------------------------------------------------------------------------------
$135,994 $ (9,578) $126,416 $ -- $ -- $126,416
==============================================================================================
-----------------------------------------------------------------------------------------------
Liabilities:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Liabilities Assets and Liabilities
Gross Statement Presented in -------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Pledged Amount
-----------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 9,578 $ (9,578) $ -- $ -- $ -- $ --
Total return swap $ -- $ -- $ -- $ -- $ -- $ --
-----------------------------------------------------------------------------------------------
$ 9,578 $ (9,578) $ -- $ -- $ -- $ --
===============================================================================================
Pioneer Global Equity Fund | Annual Report | 8/31/14 43
8. Additional Disclosures about Derivative Instruments and Hedging Activities
Values of derivative instruments as of August 31, 2014 were as follows:
-----------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as
Hedging Instruments Asset Derivatives 2014 Liabilities Derivatives 2014
Under Accounting ------------------------------- -----------------------------
Standards Codification Balance Sheet Balance Sheet
(ASC) 815 Location Value Location Value
-----------------------------------------------------------------------------------------------
Forward Foreign Net unrealized Net unrealized
Currency Contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $ 47,706 currency contracts $ --
Total Return Swap Net unrealized Net unrealized
appreciation on depreciation on
total return swap $ 78,710 total return swap $ --
Futures Contracts* Net unrealized Net unrealized
appreciation on depreciation on
futures contracts $ -- futures contracts $147,350
-----------------------------------------------------------------------------------------------
Total $126,416 $147,350
===============================================================================================
* Reflects the net unrealized appreciation on futures contracts (see Note 1H).
The current day's variation margin is separately disclosed on the Statements
of Assets and Liabilities.
44 Pioneer Global Equity Fund | Annual Report | 8/31/14
The effect of derivative instruments on the Statement of Operations for the year
ended August 31, 2014 was as follows:
------------------------------------------------------------------------------------------
Change in
Derivatives Not Unrealized
Accounted for as Realized Gain Appreciation or
Hedging Instruments or (Loss) on (Depreciation)
Under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
------------------------------------------------------------------------------------------
Forward Foreign Net realized gain (loss) on
Currency Contracts forward foreign currency
contracts and other assets
and liabilities denominated
in foreign currencies $ 849,617
Forward Foreign Change in unrealized
Currency Contracts appreciation (depreciation)
on forward foreign currency
contracts and other assets
and liabilities denominated
in foreign currencies $ (76,369)
Total Return Swap Net realized gain (loss) on
total return swap $ 53,095
Total Return Swap Change in unrealized
appreciation (depreciation) on
total return swap $ 78,710
Written Options Net realized gain (loss) on
written options $ 230,596
Written Options Change in unrealized
appreciation (depreciation)
on written options $ --
Futures Contracts Net realized gain (loss) on
futures contracts $(483,975)
Futures Contracts Change in net unrealized
appreciation (depreciation)
on futures contracts $(149,683)
9. Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Fund, with the approval and recommendation of the
Audit Committee, appointed Deloitte & Touche LLP to serve as the Fund's
independent registered public accounting firm for the fiscal year ending August
31, 2014. Deloitte & Touche LLP replaces Ernst & Young LLP, which resigned as
the Fund's independent registered public accounting firm, effective upon
completion of the audit of the Fund's financial statements for the fiscal year
ended August 31, 2013.
Pioneer Global Equity Fund | Annual Report | 8/31/14 45
During the periods that Ernst & Young LLP served as the Fund's independent
registered public accounting firm, including the Fund's fiscal years ended
August 31, 2013 and August 31, 2012, Ernst & Young LLP's reports on the
financial statements of the Fund have not contained an adverse opinion or
disclaimer of opinion and have not been qualified or modified as to uncertainty,
audit scope or accounting principles. Further, there have been no disagreements
with Ernst & Young LLP on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure, which, if not
resolved to the satisfaction of Ernst & Young LLP would have caused Ernst &
Young LLP to make reference to the subject matter of the disagreement in
connection with its report on the financial statements. In addition, there have
been no reportable events of the kind described in Item 304 (a)(1)(v) of
Regulation S-K under the Securities Exchange Act of 1934.
10. Subsequent Event
Upcoming Conversion of Class B Shares
As of the close of business on November 10, 2014 (the "Conversion Date"), all
outstanding Class B shares of the Pioneer funds will be converted to Class A
shares. Shareholders may continue to hold their Class B shares until the
Conversion Date. Prior to the Conversion Date, redemptions of Class B shares are
subject to any applicable contingent deferred sales charges (CDSCs). Class A
shares acquired through the conversion will not be subject to CDSCs, nor will
any sales charges be assessed in connection with the conversion. After the
Conversion Date, subsequent purchases of Class A shares will be subject to sales
charges as described in the Fund's prospectus.
46 Pioneer Global Equity Fund | Annual Report | 8/31/14
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V
and the Shareowners of Pioneer Global Equity Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Global Equity Fund (the "Fund"), one of the portfolios constituting Pioneer
Series Trust V, including the schedule of investments, as of August 31, 2014,
and the related statements of operations and changes in net assets, and the
financial highlights for year then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit. The statement of changes in net assets
of the Fund for the year ended August 31, 2013, and the financial highlights for
the years ended August 31, 2013, 2012, 2011 and 2010 were audited by other
auditors. Those auditors expressed an unqualified opinion on those financial
statements and financial highlights in their report dated October 28, 2013.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of August 31, 2014, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global Equity Fund as of August 31, 2014, and the results of its
operations, the changes in its net assets, and the financial highlights for the
year then ended, in conformity with accounting principles generally accepted in
the United States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
October 29, 2014
Pioneer Global Equity Fund | Annual Report | 8/31/14 47
ADDITIONAL INFORMATION (unaudited)
For the year ended August 31, 2014, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax
Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate up to
the maximum amount of such dividends allowable under the Act, as taxed at a
maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2014 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 53.67%.
48 Pioneer Global Equity Fund | Annual Report | 8/31/14
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least the past five years. Trustees who are interested
persons of the Fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the Fund are
referred to as Independent Trustees. Each of the Trustees serves as a Trustee of
each of the 53 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Global Equity Fund | Annual Report | 8/31/14 49
Independent Trustees
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (63) Trustee since 2006. Private investor (2004-2008 and Director, Broadridge Financial
Chairman of the Board Serves until a 2013-present); Chairman (2008 - Solutions, Inc. (investor
and Trustee successor trustee is 2013) and Chief Executive Officer communications and securities
elected or earlier (2008 - 2012), Quadriserv, Inc. processing provider for financial
retirement or removal. (technology products for securities services industry) (2009 - present);
lending industry); and Senior Director, Quadriserv, Inc. (2005 -
Executive Vice President, The Bank 2013); and Commissioner, New Jersey
of New York (financial and State Civil Service Commission (2011
securities services) (1986 - 2004) - present)
--------------------------------------------------------------------------------------------------------------------------------
David R. Bock (70) Trustee since 2005. Managing Partner, Federal City Director of Enterprise Community
Trustee Serves until a Capital Advisors (corporate advisory Investment, Inc. (privately held
successor trustee is services company) (1997 - 2004 and affordable housing finance company)
elected or earlier 2008 - present); Interim Chief (1985 - 2010); Director of Oxford
retirement or removal. Executive Officer, Oxford Analytica, Analytica, Inc. 2008 - present);
Inc. (privately held research and Director of The Swiss (Helvetia Fund,
consulting company) (2010); Inc. (closed-end fund) (2010 -
Executive Vice President and Chief present); and Director of New York
Financial Officer, I-trax, Inc. Mortgage Trust (publicly traded
(publicly traded health care mortgage REIT) (2004 - 2009, 2012 -
services company) (2004 - 2007); and present)
Executive Vice President and Chief
Financial Officer, Pedestal Inc.
(internet-based mortgage trading
company) (2000 - 2002)
--------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (70) Trustee since 2008. William Joseph Maier Professor of Trustee, Mellon Institutional Funds
Trustee Serves until a Political Economy, Harvard Investment Trust and Mellon
successor trustee is University (1972 - present) Institutional Funds Master Portfolio
elected or earlier (oversaw 17 portfolios in fund
retirement or removal. complex) (1989-2008)
--------------------------------------------------------------------------------------------------------------------------------
50 Pioneer Global Equity Fund | Annual Report | 8/31/14
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (67) Trustee since 2005. Founding Director, Vice President None
Trustee Serves until a and Corporate Secretary, The
successor trustee is Winthrop Group, Inc. (consulting
elected or earlier firm) (1982 - present); Desautels
retirement or removal. Faculty of Management, McGill
University (1999 - present); and
Manager of Research Operations and
Organizational Learning, Xerox PARC,
Xerox's advance research center
(1990-1994)
--------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (66) Trustee since 2005. President and Chief Executive Director of New America High Income
Trustee Serves until a Officer, Newbury, Piret & Company, Fund, Inc. (closed-end investment
successor trustee is Inc. (investment banking firm) (1981 company) (2004 - present); and
elected or earlier - present) member, Board of Governors,
retirement or removal. Investment Company Institute (2000 -
2006)
--------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Equity Fund | Annual Report | 8/31/14 51
Interested Trustees
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (56)* Trustee since 2014. Director and Executive Vice President (since 2008) None
Trustee Serves until a and Chief Investment Officer, U.S. (since 2010), of
successor trustee is PIM-USA; Executive Vice President of Pioneer (since
elected or earlier 2008); Executive Vice President of Pioneer
retirement or Institutional Asset Management, Inc. (since 2009);
removal. Portfolio Manager of Pioneer (since 1999)
--------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer of the Fund's
investment adviser and certain of its affiliates.
52 Pioneer Global Equity Fund | Annual Report | 8/31/14
Fund Officers
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
--------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (52) Since 2014. Serves at Chair, Director, CEO and President of Pioneer None
President and the discretion of the Investment Management USA (since September 2014);
Chief Executive Officer Board. Chair, Director, CEO and President of Pioneer
Investment Management, Inc. (since September 2014);
Chair, Director, CEO and President of Pioneer Funds
Distributor, Inc. (since September 2014); Chair,
Director, CEO and President of Pioneer Institutional
Asset Management, Inc. (since September 2014); and
Chair, Director, and CEO of Pioneer Investment
Management Shareholder Services, Inc. (since
September 2014); Managing Director, Morgan Stanley
Investment Management (2010 - 2013); Director of
Institutional Business, CEO of International, Eaton
Vance Management (2005 - 2010)
--------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (49) Since 2005. Serves at Vice President and Associate General Counsel of None
Secretary and Chief the discretion of the Pioneer since January 2008; Secretary and Chief
Legal Officer Board. 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 Pioneer from July
2002 to December 2007
--------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (53) Since 2010. Serves at Fund Governance Director of Pioneer since December None
Assistant Secretary the discretion of the 2006 and Assistant Secretary of all the Pioneer
Board. Funds since June 2010; Manager - Fund Governance of
Pioneer from December 2003 to November 2006; and
Senior Paralegal of Pioneer from January 2000 to
November 2003
--------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (51) Since 2010. Serves at Senior Counsel of Pioneer since May 2013 and None
Assistant Secretary the discretion of the Assistant Secretary of all the Pioneer Funds since
Board. June 2010; Counsel of Pioneer from June 2007 to May
2013
--------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (54) Since 2008. Serves at Vice President - Fund Treasury of Pioneer; Treasurer None
Treasurer and Chief the discretion of the of all of the Pioneer Funds since March 2008; Deputy
Financial and Accounting Board. Treasurer of Pioneer from March 2004 to February
Officer of the Fund 2008; and Assistant Treasurer of all of the Pioneer
Funds from March 2004 to February 2008
--------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Equity Fund | Annual Report | 8/31/14 53
Fund Officers (continued)
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
--------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (49) Since 2005. Serves at Director - Fund Treasury of Pioneer; and Assistant None
Assistant Treasurer the discretion of the Treasurer of all of the Pioneer Funds
Board.
--------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (56) Since 2005. Serves at Fund Accounting Manager - Fund Treasury of Pioneer; None
Assistant Treasurer the discretion of the and Assistant Treasurer of all of the Pioneer Funds
Board.
--------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (34) Since 2009. Serves at Fund Administration Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Pioneer since November 2008; Assistant Treasurer of
Board. all of the Pioneer Funds since January 2009; and
Client Service Manager - Institutional Investor
Services at State Street Bank from March 2003 to
March 2007
--------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (61) Since 2010. Serves at Chief Compliance Officer of Pioneer and of all the None
Chief Compliance Officer the discretion of the Pioneer Funds since March 2010; Director of Adviser
Board. and Portfolio Compliance at Pioneer since October
2005; and Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to
October 2005
--------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (43) Since 2006. Serves at Director - Transfer Agency Compliance of Pioneer and None
Anti-Money Laundering the discretion of the Anti-Money Laundering Officer of all the Pioneer
Officer Board. funds since 2006
--------------------------------------------------------------------------------------------------------------------------------
54 Pioneer Global Equity Fund | Annual Report | 8/31/14
This page for your notes.
Pioneer Global Equity Fund | Annual Report | 8/31/14 55
This page for your notes.
56 Pioneer Global Equity Fund | Annual Report | 8/31/14
This page for your notes.
Pioneer Global Equity Fund | Annual Report | 8/31/14 57
This page for your notes.
58 Pioneer Global Equity Fund | Annual Report | 8/31/14
This page for your notes.
Pioneer Global Equity Fund | Annual Report | 8/31/14 59
This page for your notes.
60 Pioneer Global Equity Fund | Annual Report | 8/31/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 19431-08-1014
Pioneer High Income
Municipal Fund
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Annual Report | August 31, 2014
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Ticker Symbols:
Class A PIMAX
Class C HICMX
Class Y HIMYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 24
Notes to Financial Statements 31
Report of Independent Registered Public Accounting Firm 39
Trustees, Officers and Service Providers 40
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 1
President's Letter
Dear Shareowner,
As we move into the final few months of 2014, we remain confident that U.S.
economic growth remains sustainable, if moderately paced. The weather-related
slowdown in the first quarter is behind us and labor market data continues to
show steady improvement. The number of people filing initial unemployment claims
is at the lowest level since the boom years of 2005-06, the number of job
openings is at the highest level since 2001, and unemployment is down to just
over 6%. Barring an external shock, we think it is likely that the domestic
economic expansion will continue until the economy reaches full employment.
Until then, remaining labor market slack and moderate capacity utilization offer
the potential for continuing non-inflationary growth.
The global economic picture is somewhat less rosy, as the Russia/Ukraine
conflict is exacting a toll on the European economy, Japan is working through
the impact of a large tax increase, and the growth of China's investment-driven
economy is slowing. On balance, though, we expect the global economy to continue
to grow in the second half of 2014, further supporting the U.S. economy.
While our outlook is constructive, the risk of an adverse "external" shock, such
as a military conflict, remains. While many such risks may already be "priced
into" the market, we caution against complacency and believe investors should
always be prepared for possible market volatility.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns.
2 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
On August 11, 2014, I joined Pioneer as the new President and CEO of Pioneer
Investment Management USA, Inc. Since 1928, Pioneer's investment professionals
have worked on behalf of our shareholders to find attractive investment
opportunities, incorporating our proprietary research and prudent risk
management techniques to construct our portfolios.
In my role, I will focus on preserving many of the rich qualities of our
history, while maintaining balance with the demands of this ever-changing world
in which we live.
We greatly appreciate your trust in us and we encourage you to seek investment
guidance and advice from your financial advisor to discuss your goals and
develop an overall investment plan or framework that addresses both your short-
and long-term goals.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA, Inc.
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. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 3
Portfolio Management Discussion | 8/31/14
Municipal bonds recovered in value over the first eight months of 2014 after
declining in price late in 2013. In the following interview, David Eurkus and
Jonathan Chirunga discuss the factors that influenced the performance of Pioneer
High Income Municipal Fund during the 12-month period ended August 31, 2014. Mr.
Eurkus, Director of Municipals, a senior vice president and a portfolio manager
at Pioneer, manages the Fund along with Jonathan Chirunga, a vice president and
a portfolio manager at Pioneer.
Q How did the Fund perform during the 12-month period ended August 31, 2014?
A Pioneer High Income Municipal Fund's Class A shares returned 7.52% at net
asset value during the 12-month period ended August 31, 2014, while the
Fund's benchmark, the Barclays High Yield Municipal Bond Index (the
Barclays Index), returned 14.74%. During the same period, the average
return of the 135 mutual funds in Lipper's High Yield Municipal Debt Funds
category was 14.10%, and the average return of the 178 mutual funds in
Morningstar's High Yield Municipal Funds category was 13.81%.
Q How would you describe the investment environment for high-yield
municipal bonds during the 12-month period ended August 31, 2014?
A The period saw a remarkable change in market sentiment beginning in
January 2014, as investors began to believe that fears about credit quality
and interest-rate volatility had driven down municipal bond prices -
especially those of higher-yielding municipals - to excessively low
valuations. Over the first eight months of 2014, lower-rated,
higher-yielding securities led a dramatic performance revival among
tax-exempt municipal bonds. The rally was led primarily by growing investor
confidence about the credit-worthiness of the municipalities and
institutions issuing tax-exempt bonds, but increased confidence in the
overall health of the U.S. economy also contributed to the bounce-back.
Less sanguine sentiments about municipal bonds had prevailed when the
12-month period began in September 2013. The municipal bond market as well
as other fixed-income markets had become volatile at that time as investors
worried that the Federal Reserve's (the Fed's) plans to taper its
accommodative monetary policies - its quantitative easing bond-buying
program, in particular - could lead to sharp increases in interest rates and
a corresponding decline in bond prices. The municipal bond market also took
a hit from the City of Detroit's well-publicized bankruptcy filing as well
as from news stories that raised questions about the credit-worthiness of
the Commonwealth of Puerto Rico's bonds. The numerous concerns combined to
drive down the prices of municipal bonds during the final months of 2013,
especially those in the lower-rated, higher-yielding tiers of the market.
4 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
As noted previously, the municipal market began to change course in
January 2014, experiencing a rally that essentially continued through the
end of the 12-month period. Growing investor confidence that the Fed could
engineer a gradual change in monetary policy without disrupting the markets
in a meaningful way coincided with the belief that the debt problems of
Detroit and Puerto Rico were not reflective of conditions in the overall
municipal market. Thus, market sentiment about the credit-worthiness of
municipals improved. Investors also recognized that municipal securities
were selling at very attractive prices relative to the taxable bond market,
resulting in increased demand from both traditional and non-traditional
buyers. Municipal bond prices soon began recovering, with high-yield
municipals bouncing back stronger than the investment-grade segment of the
market.
Q What were the main reasons for the Fund's underperformance relative to the
benchmark Barclays Index during the 12-month period ended August 31, 2014?
A The Fund participated in the market rebound over the last eight months of
the period, but not as much as the Barclays Index benchmark, as we
continued our efforts to restructure the Fund's portfolio, removing both
real and potentially problem credits while significantly increasing
diversification*. The restructuring process had been especially
challenging when the market was in decline, but was also an issue during
times when other investors were selling their most liquid and easily
tradable securities, as those sales affected the values of some of the
Fund's better-quality positions, such as securities backed by proceeds from
tobacco settlement liability lawsuits.
By August 31, 2014, the Fund's portfolio restructuring was essentially
completed, as our review process continued to weed out problem credits.
For example, we reduced the Fund's exposure to continuing care retirement
communities (CCRCs) down to less than 20% by period end, as we sought to
increase the portfolio's diversification by credit issuer and quality. At
the same time, we increased the portfolio's exposure to more liquid, easily-
tradable industries, notably bonds backed by revenues from charter schools,
tobacco liability settlements, and transportation and hospital projects.
Consistent with our investment discipline, the portfolio's holdings were
confined principally to project revenue bonds, which are funded by the
revenue streams produced by specific public projects. We believe revenue
bonds are more reliable investments than general obligation bonds, which are
more exposed to changes in the general financial health of the issuing
municipalities or public agencies.
* Diversification does not assure a profit nor protect against loss in a
declining market.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 5
Over the final months of the 12-month period, the Fund's performance did
improve noticeably, in both absolute and benchmark-relative terms. During
the final six months of the period, for example, the Fund's Class A shares
generated a total return of 5.27% at net asset value, just slightly behind
the 5.85% return of the Barclays Index. Unfortunately, the Fund's
significant underperformance of the benchmark during the first six months of
the 12-month period proved too difficult to overcome.
Q What were some of the individual portfolio investments that had noteworthy
effects on the Fund's performance during the 12-month period ended August
31, 2014?
A The Fund saw good results from investments in bonds backed by charter
schools and hospitals, as well as from some transportation projects.
Charter school project bonds in the portfolio that fared well during the
period included securities backed by the Greenwood Charter School in
Pennsylvania, the Rocky Mountain Charter Academy in Colorado, and the
Universal Academy in Texas. In the hospital sector, issues that performed
well for the Fund included project revenue bonds backed by hospitals in
Pottsville, Pennsylvania, Onondaga County, New York, and Muskingum County in
Ohio.
Among the Fund's underperforming securities during the period were CCRC
bonds backed by projects in Tyler, Texas, and Deerfield, Iowa.
Q What is your investment outlook?
A We anticipate that the domestic economy will continue to grow at a
moderate, but steady pace in the coming months. As key indicators such as
employment, housing and consumer spending improve, so too should the
general fiscal health of municipalities and public agencies. That, in turn,
should buttress the credit quality of the debt issued by those entities.
While the Fed is likely to begin raising short-term interest rates modestly
during 2015, we think it will act gradually so as not to disrupt the
capital markets. We also believe inflation should remain well under control.
As we enter the final quarter of 2014, the outlook for municipal bonds looks
good. So far during 2014, issuance of municipal bonds has been down by 15%
from 2013 levels, and yet demand for municipal bonds has increased
substantially, which has been a boon for municipal bond prices. Meanwhile,
the rising tax revenues that accompany a strengthening economy are improving
the financial health of the government agencies and institutions that issue
municipal bonds.
We plan to continue to emphasize fundamental credit research when selecting
securities for the Fund, while maintaining a well-diversified portfolio of
investments that adhere to our strictest quality standards.
6 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
Please refer to the Schedule of Investments on pages 15-23 for a full listing of
Fund securities.
Investments in high-yield or lower rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed income
securities in the fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet
their debt obligations.
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 value of municipal securities can be adversely affected by changes in finan-
cial condition of municipal issuers, lower revenues, and regulatory and
political developments.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
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.
A portion of income may be subject to local, state, federal, and/or
alternative minimum tax. Capital gains, if any, are subject to a capital
gains tax.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments 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. These opinions should not
be relied upon for any other purposes. Past performance is not a guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 7
Portfolio Summary | 8/31/14
Sector Distribution
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Health 30.2%
Education 19.8%
Special Revenues 18.6%
Pollution Control Revenue 11.0%
Various Revenues 9.9%
Transportation 4.5%
General Obligation 2.6%
Reserves 1.1%
Water & Sewer 1.1%
Insured 0.8%
Housing 0.4%
10 Largest Holdings
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(As a percentage of total investment portfolio)*
1. City of Philippi West Virginia, 7.75%, 10/1/44 5.26%
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2. Sanger Industrial Development Corp., 8.0%, 7/1/38 3.43
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3. State of Texas, 5.0%, 10/1/25 2.62
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4. Capital Trust Agency, Inc., 7.75%, 1/1/41 2.40
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5. Pennsylvania Economic Development Financing Authority, 8.0%, 5/1/29 2.10
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6. Tobacco Settlement Financing Corp. New Jersey, 5.0%, 6/1/41 2.04
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7. Washington State Housing Finance Commission, 5.625%, 1/1/38 1.92
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8. Michigan Tobacco Settlement Finance Authority, 6.0%, 6/1/48 1.84
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9. Michigan Strategic Fund, Floating Rate Note, 3/1/40 1.59
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10. Tarrant County Cultural Education Facilities Finance Corp., 8.125%, 11/15/44 1.55
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* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
8 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
Prices and Distributions | 8/31/14
Net Asset Value per Share
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Class 8/31/14 8/31/13
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A $7.27 $7.19
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C $7.28 $7.19
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Y $7.18 $7.10
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Distributions per Share: 9/1/13-8/31/14
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Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
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A $0.4410 $ -- $ --
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C $0.3864 $ -- $ --
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Y $0.4457 $ -- $ --
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Index Definitions
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The Barclays High Yield Municipal Bond Index is an unmanaged measure of the
performance of the high-yield municipal bond market. 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 shown on pages 10-12.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 9
Performance Update | 8/31/14 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 High Income Municipal Fund at
public offering price during the periods shown, compared to that of the Barclays
High Yield Municipal Bond Index.
Average Annual Total Returns
(As of August 31, 2014)
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Barclays
Net Public High Yield
Asset Offering Municipal
Value Price Bond
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) 2.39% 1.80% 4.45%
5 Years 7.85 6.87 9.95
1 Year 7.52 2.66 14.74
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2013)
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Gross
--------------------------------------------------------------------------------
0.88%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays High Yield
Municipal Fund Municipal Bond Index
10/31/2006 $ 9,550 $10,000
8/31/2007 $ 9,671 $10,076
8/31/2008 $ 9,193 $ 9,635
8/31/2009 $ 7,868 $ 8,750
8/31/2010 $ 9,848 $10,682
8/31/2011 $10,028 $11,051
8/31/2012 $11,154 $12,752
8/31/2013 $10,679 $12,253
8/31/2014 $11,481 $14,060
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The 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.
10 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
Performance Update | 8/31/14 Class C 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 C shares of Pioneer High Income Municipal Fund during
the periods shown, compared to that of the Barclays High Yield Municipal Bond
Index.
Average Annual Total Returns
(As of August 31, 2014)
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Barclays
High Yield
Municipal
If If Bond
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) 1.56% 1.56% 4.45%
5 Years 7.08 7.08 9.95
1 Year 6.85 6.85 14.74
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Expense Ratio
(Per prospectus dated December 31, 2013)
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Gross
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1.63%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays High Yield
Municipal Fund Municipal Bond Index
10/31/2006 $10,000 $10,000
8/31/2007 $10,046 $10,076
8/31/2008 $ 9,449 $ 9,635
8/31/2009 $ 8,015 $ 8,750
8/31/2010 $ 9,948 $10,682
8/31/2011 $10,066 $11,051
8/31/2012 $11,116 $12,752
8/31/2013 $10,562 $12,253
8/31/2014 $11,285 $14,060
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 11
Performance Update | 8/31/14 Class Y Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer High Income Municipal Fund during
the periods shown, compared to that of the Barclays High Yield Municipal Bond
Index.
Average Annual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
Barclays
High Yield
Municipal
If If Bond
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) 2.35% 2.35% 4.45%
5 Years 7.93 7.93 9.95
1 Year 7.69 7.69 14.74
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2013)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.72%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays High Yield
Municipal Fund Municipal Bond Index
10/31/2006 $5,000,000 $5,000,000
8/31/2007 $5,045,674 $5,037,963
8/31/2008 $4,770,728 $4,817,672
8/31/2009 $4,088,458 $4,374,981
8/31/2010 $5,099,360 $5,340,982
8/31/2011 $5,202,265 $5,525,277
8/31/2012 $5,796,676 $6,376,035
8/31/2013 $5,561,596 $6,126,737
8/31/2014 $5,989,184 $7,029,878
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
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 High Income Municipal Fund
Based on actual returns from March 1, 2014, through August 31, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/14
--------------------------------------------------------------------------------
Ending Account Value $1,052.78 $1,050.23 $1,053.82
(after expenses) on 8/31/14
--------------------------------------------------------------------------------
Expenses Paid $ 4.66 $ 8.58 $ 3.68
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.66%
and 0.71% fro Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 13
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 High Income Municipal Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2014, through August 31, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/14
--------------------------------------------------------------------------------
Ending Account Value $1,020.67 $1,016.84 $1,021.63
(after expenses) on 8/31/14
--------------------------------------------------------------------------------
Expenses Paid $ 4.58 $ 8.44 $ 3.62
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.66%
and 0.71% fro Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
14 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
Schedule of Investments | 8/31/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.1%
Alaska -- 0.2%
1,000,000 NR/B2 Northern Tobacco Securitization Corp.,
5.0%, 6/1/46 $ 739,840
-------------------------------------------------------------------------------------------------------------
Arizona -- 2.3%
6,860,000 NR/NR The Industrial Development Authority of
the County of Pima, 5.5%, 7/1/26 $ 6,433,445
1,000,000 NR/NR The Industrial Development Authority of
the County of Pima, 7.0%, 5/1/34 1,026,700
3,000,000 NR/NR The Industrial Development Authority of
the County of Pima, 7.25%, 5/1/44 3,083,460
725,000 NR/NR The Industrial Development Authority of
the County of Pima, 8.5%, 7/1/39 812,957
---------------
$ 11,356,562
-------------------------------------------------------------------------------------------------------------
California -- 11.1%
5,040,000 B-/NR California County Tobacco Securitization
Agency, 5.125%, 6/1/38 $ 4,038,502
6,655,000 NR/B2 California County Tobacco Securitization
Agency, 5.25%, 6/1/45 5,173,863
1,880,000 B-/NR California County Tobacco Securitization
Agency, 5.25%, 6/1/45 1,497,194
3,800,000 NR/B2 California County Tobacco Securitization
Agency, 5.7%, 6/1/46 3,081,648
6,300,000 BB/NR California Municipal Finance Authority,
6.0%, 7/1/42 6,538,455
3,230,000 BB/NR California School Finance Authority,
7.125%, 10/1/48 3,556,230
3,000,000 BB+/NR California School Finance Authority,
7.375%, 10/1/43 3,347,550
1,560,000 NR/NR California Statewide Communities
Development Authority, 6.125%, 11/1/33 1,731,335
4,030,000 NR/NR California Statewide Communities
Development Authority, 6.375%, 11/1/43 4,494,578
2,000,000 NR/NR California Statewide Communities
Development Authority, 7.5%, 6/1/42 2,219,780
315,559 NR/NR California Statewide Communities
Development Authority, 9.0%, 12/1/38 (c) 3
7,000,000 B/B3 Golden State Tobacco Securitization
Corp., 4.5%, 6/1/27 6,378,750
6,000,000 B-/B3 Golden State Tobacco Securitization
Corp., 5.75%, 6/1/47 4,897,260
4,000,000 AA/Aa3 Pittsburg Unified School District, 9/1/38 (d) 853,560
3,925,000 AA/Aa3 Pittsburg Unified School District, 9/1/39 (d) 772,754
2,500,000 AA/Aa3 Pittsburg Unified School District, 9/1/41 (d) 630,825
1,925,000 AA/Aa3 Pittsburg Unified School District, 9/1/42 (d) 460,710
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 15
Schedule of Investments | 8/31/14 (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
California -- (continued)
6,000,000 BB+/B2 Tobacco Securitization Authority of
Southern California, 5.0%, 6/1/37 $ 4,789,020
---------------
$ 54,462,017
-------------------------------------------------------------------------------------------------------------
Colorado -- 2.8%
2,000,000 B+/NR Colorado Educational & Cultural
Facilities Authority, 8.0%, 9/1/43 $ 2,046,260
5,000,000 B+/NR Colorado Educational & Cultural
Facilities Authority, 8.125%, 9/1/48 5,123,150
8,000,000 NR/NR Kremmling Memorial Hospital District,
7.125%, 12/1/45 6,688,080
---------------
$ 13,857,490
-------------------------------------------------------------------------------------------------------------
District of Columbia -- 1.7%
735,000 BBB/Baa1 District of Columbia Tobacco Settlement
Financing Corp., 6.75%, 5/15/40 $ 735,037
3,500,000 BBB-/NR District of Columbia, 5.0%, 10/1/45 3,558,065
4,000,000 BBB+/Baa1 Metropolitan Washington Airports Authority
Dulles Toll Road Revenue, 5.0%, 10/1/53 4,195,040
---------------
$ 8,488,142
-------------------------------------------------------------------------------------------------------------
Florida -- 3.9%
5,000,000 NR/NR Alachua County Health Facilities
Authority, 8.125%, 11/15/46 $ 5,792,250
1,035,000 NR/NR Capital Trust Agency, Inc., 7.375%, 1/1/48 1,050,235
11,000,000 NR/B1 Capital Trust Agency, Inc., 7.75%, 1/1/41 11,440,000
1,820,000 NR/NR County of Liberty Florida, 8.25%,
7/1/28 (c) 549,531
---------------
$ 18,832,016
-------------------------------------------------------------------------------------------------------------
Hawaii -- 0.2%
1,000,000 NR/NR State of Hawaii Department of Budget &
Finance, 9.0%, 11/15/44 $ 1,183,900
-------------------------------------------------------------------------------------------------------------
Illinois -- 5.0%
526,959 NR/NR Illinois Finance Authority, 11/15/52 (d) $ 142,232
526,959 NR/NR Illinois Finance Authority, 11/15/52 (d) 89,536
2,634,795 NR/NR Illinois Finance Authority, 11/15/52 (d) 92,060
485,000 NR/NR Illinois Finance Authority, 11/15/17 (d) 471,949
710,000 NR/NR Illinois Finance Authority, 7.0%, 11/15/27 649,380
3,085,000 NR/NR Illinois Finance Authority, 7.625%, 5/15/25 3,275,067
1,750,000 NR/NR Illinois Finance Authority, 8.0%, 5/15/30 1,155,000
3,195,000 NR/NR Illinois Finance Authority, 8.0%, 5/15/40 3,339,734
4,060,000 BB/NR Illinois Finance Authority, 8.25%, 5/15/45 2,679,600
4,213,653 4.00 NR/NR Illinois Finance Authority, Floating Rate
Note, 11/15/52 2,730,826
2,735,000 NR/NR Southwestern Illinois Development
Authority, 5.625%, 11/1/26 2,209,032
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Illinois -- (continued)
680,000 NR/NR Southwestern Illinois Development
Authority, 6.2%, 6/1/17 $ 704,840
7,020,000 NR/NR Southwestern Illinois Development
Authority, 6.625%, 6/1/37 7,031,513
---------------
$ 24,570,769
-------------------------------------------------------------------------------------------------------------
Indiana -- 3.6%
1,750,000 NR/NR City of Carmel Indiana, 7.0%, 11/15/32 $ 1,887,812
2,000,000 NR/NR City of Carmel Indiana, 7.125%, 11/15/42 2,147,980
2,000,000 NR/NR City of Carmel Indiana, 7.125%, 11/15/47 2,141,280
3,500,000 NR/NR City of Crown Point Indiana,
8.0%, 11/15/39 3,914,855
3,000,000 NR/NR City of Gary Indiana, 2.5%, 5/1/15 3,000,870
4,000,000 BB/NR Vigo County Hospital Authority,
8.0%, 9/1/41 4,632,800
---------------
$ 17,725,597
-------------------------------------------------------------------------------------------------------------
Iowa -- 1.2%
775,200 NR/NR Iowa Finance Authority, 5/15/56 (0.0%
cash, 0.0.% PIK) (PIK) (d) $ 8
4,132,500 2.70 NR/NR Iowa Finance Authority, Floating Rate
Note, 11/15/46 2,070,672
1,000,000 B+/B2 Iowa Tobacco Settlement Authority,
5.6%, 6/1/34 884,650
3,580,000 B+/B2 Iowa Tobacco Settlement Authority,
5.625%, 6/1/46 2,996,388
---------------
$ 5,951,718
-------------------------------------------------------------------------------------------------------------
Louisiana -- 0.9%
5,800,000 NR/NR Tensas Parish Law Enforcement District,
8.5%, 10/1/26 (c) $ 4,393,964
-------------------------------------------------------------------------------------------------------------
Maryland -- 0.9%
1,000,000 NR/NR City of Westminster Maryland,
6.0%, 7/1/34 $ 1,004,330
850,000 NR/NR City of Westminster Maryland,
6.125%, 7/1/39 844,552
1,250,000 NR/NR City of Westminster Maryland,
6.25%, 7/1/44 1,253,512
1,000,000 NR/NR Maryland Health & Higher Educational
Facilities Authority, 6.75%, 7/1/44 1,068,790
---------------
$ 4,171,184
-------------------------------------------------------------------------------------------------------------
Massachusetts -- 1.2%
1,116,746 NR/NR Massachusetts Development Finance
Agency, 11/15/56 (d) $ 4,947
1,235,770 NR/NR Massachusetts Development Finance
Agency, 6.25%, 11/15/26 1,097,166
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 17
Schedule of Investments | 8/31/14 (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
2,224,798 NR/NR Massachusetts Development Finance
Agency, 6.25%, 11/15/39 $ 1,809,228
2,000,000 NR/NR Massachusetts Development Finance
Agency, 6.75%, 10/15/37 2,078,620
870,000 NR/NR Massachusetts Development Finance
Agency, 7.625%, 10/15/37 970,015
3,500,000 NR/NR Massachusetts Health & Educational
Facilities Authority, 6.5%, 1/15/38 (c) 9,205
---------------
$ 5,969,181
-------------------------------------------------------------------------------------------------------------
Michigan -- 8.6%
1,250,000 NR/Ba1 Flint Hospital Building Authority,
7.375%, 7/1/35 $ 1,333,412
5,485,000 BBB-/NR Flint International Academy,
5.75%, 10/1/37 5,560,419
4,460,000 NR/NR Michigan Public Educational Facilities
Authority, 5.875%, 6/1/37 4,488,767
260,000 BB/NR Michigan Public Educational Facilities
Authority, 7.25%, 4/1/20 279,425
2,020,000 BB/NR Michigan Public Educational Facilities
Authority, 8.0%, 4/1/40 2,195,316
3,175,000 NR/NR Michigan Strategic Fund, 7.25%, 1/1/39 3,319,082
4,000,000 6.62 NR/NR Michigan Strategic Fund, Floating Rate
Note, 11/1/41 4,170,840
7,135,000 6.75 A/A2 Michigan Strategic Fund, Floating Rate
Note, 3/1/40 7,544,192
11,090,000 B-/NR Michigan Tobacco Settlement Finance
Authority, 6.0%, 6/1/48 8,749,456
5,050,000 NR/B2 Michigan Tobacco Settlement Finance
Authority, 6.875%, 6/1/42 4,700,035
---------------
$ 42,340,944
-------------------------------------------------------------------------------------------------------------
Minnesota -- 1.3%
4,500,000 NR/NR Bloomington Port Authority, 9.0%, 12/1/35 $ 4,915,305
1,500,000 NR/NR City of Brooklyn Park Minnesota,
9.25%, 3/1/39 1,664,385
---------------
$ 6,579,690
-------------------------------------------------------------------------------------------------------------
Missouri -- 1.8%
5,920,000 BB/NR Community Memorial Hospital District,
6.68%, 12/1/34 $ 6,090,378
2,500,000 NR/NR Kirkwood Industrial Development
Authority, 8.25%, 5/15/45 2,866,975
500,000 NR/NR St. Louis Industrial Development
Authority, 7.2%, 12/15/28 (c) 6,250
1,365,000 NR/NR St. Louis Industrial Development
Authority, 7.25%, 12/15/35 (c) 17,062
---------------
$ 8,980,665
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
New Jersey -- 4.2%
6,000,000 NR/NR New Jersey Economic Development
Authority, 6.625%, 1/1/37 $ 6,106,740
4,500,000 BB+/Ba1 New Jersey Health Care Facilities
Financing Authority, 6.25%, 7/1/35 4,881,690
12,885,000 B-/B2 Tobacco Settlement Financing Corp.
New Jersey, 5.0%, 6/1/41 9,708,848
---------------
$ 20,697,278
-------------------------------------------------------------------------------------------------------------
New Mexico -- 0.9%
5,115,000 NR/NR County of Otero New Mexico, 6.0%, 4/1/28 $ 4,290,002
-------------------------------------------------------------------------------------------------------------
New York -- 5.8%
85,000 BB/B1 New York City Industrial Development
Agency, 5.25%, 12/1/32 $ 85,002
5,000,000 AA+/Aa2 New York City Water & Sewer System,
5.0%, 6/15/47 5,535,650
2,000,000 BB/Ba2 Onondaga Civic Development Corp.,
5.0%, 7/1/42 2,007,580
1,000,000 BB/Ba2 Onondaga Civic Development Corp.,
5.125%, 7/1/31 1,043,180
5,000,000 NR/NR Suffolk Tobacco Asset Securitization
Corp., 6/1/44 4,689,200
8,000,000 NR/NR The Erie County Industrial Development
Agency, 9.25%, 10/1/30 (c) 3,360,160
10,000,000 NR/NR The Erie County Industrial Development
Agency, 9.25%, 10/1/30 (c) 4,200,200
1,795,000 NR/NR The Erie County Industrial Development
Agency, 9.25%, 10/1/30 (c) 753,936
8,230,000 B-/NR TSASC, Inc. New York, 5.125%, 6/1/42 6,536,678
---------------
$ 28,211,586
-------------------------------------------------------------------------------------------------------------
Ohio -- 3.5%
4,000,000 B-/B3 Buckeye Tobacco Settlement Financing
Authority, 5.875%, 6/1/47 $ 3,185,160
8,555,000 B-/B3 Buckeye Tobacco Settlement Financing
Authority, 6.0%, 6/1/42 6,801,139
1,000,000 B-/B3 Buckeye Tobacco Settlement Financing
Authority, 6.5%, 6/1/47 855,030
1,150,000 BB+/Ba2 County of Muskingum Ohio, 5.0%, 2/15/33 1,163,420
5,000,000 BB+/Ba2 County of Muskingum Ohio, 5.0%, 2/15/48 4,915,850
---------------
$ 16,920,599
-------------------------------------------------------------------------------------------------------------
Pennsylvania -- 6.6%
2,005,000 B-/NR Pennsylvania Economic Development
Financing Authority, 7.5%, 5/1/20 $ 2,343,424
8,445,000 B-/NR Pennsylvania Economic Development
Financing Authority, 8.0%, 5/1/29 10,011,548
500,000 BB/NR Philadelphia Authority for Industrial
Development, 5.5%, 6/15/32 495,480
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 19
Schedule of Investments | 8/31/14 (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Pennsylvania -- (continued)
5,200,000 BB/NR Philadelphia Authority for Industrial
Development, 5.75%, 6/15/42 $ 5,142,592
1,000,000 BB-/NR Philadelphia Authority for Industrial
Development, 6.5%, 6/15/33 (144A) 1,020,140
1,500,000 NR/NR Philadelphia Authority for Industrial
Development, 8.2%, 12/1/43 1,602,270
1,180,000 BB+/Ba2 Philadelphia Hospitals & Higher Education
Facilities Authority, 5.625%, 7/1/36 1,238,174
6,000,000 BB+/Ba2 Philadelphia Hospitals & Higher Education
Facilities Authority, 5.625%, 7/1/42 6,260,040
4,000,000 NR/NR Pottsville Hospital Authority Pennsylvania,
6.5%, 7/1/28 4,152,600
---------------
$ 32,266,268
-------------------------------------------------------------------------------------------------------------
Puerto Rico -- 0.3%
10,000,000 AA+/Aa1 Puerto Rico Sales Tax Financing
Corp., 8/1/54 (d) $ 1,350,700
-------------------------------------------------------------------------------------------------------------
Rhode Island -- 0.3%
2,065,000 NR/NR Central Falls Detention Facility Corp.,
7.25%, 7/15/35 $ 1,240,962
-------------------------------------------------------------------------------------------------------------
Texas -- 12.6%
5,500,000 BB/NR Arlington Higher Education Finance
Corp., 7.125%, 3/1/44 $ 5,748,820
2,000,000 B/B2 City of Houston Texas Airport System
Revenue, 5.0%, 7/1/29 2,044,180
234,442 NR/NR Gulf Coast Industrial Development
Authority, 7.0%, 12/1/36 (c) 2
345,000 NR/NR HFDC of Central Texas, Inc.,
6.375%, 11/15/19 (c) 126,781
1,600,000 NR/NR HFDC of Central Texas, Inc.,
7.75%, 11/15/29 (c) 587,968
6,825,000 NR/NR HFDC of Central Texas, Inc.,
7.75%, 11/15/44 (c) 2,508,051
1,455,000 BB/NR Kinney County Public Facilities Corp.,
7.0%, 11/1/25 1,290,018
15,000,000 NR/NR Sanger Industrial Development Corp.,
8.0%, 7/1/38 16,335,000
10,000,000 AAA/Aaa State of Texas, 5.0%, 10/1/25 12,474,600
1,775,000 BB/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.0%, 11/15/28 1,601,103
2,250,000 NR/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.0%, 11/15/29 2,184,300
120,000 NR/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.0%, 11/15/34 139,561
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Texas -- (continued)
5,000,000 NR/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.125%, 11/15/39 $ 4,815,450
6,350,000 NR/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.125%, 11/15/44 7,368,222
5,000,000 NR/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.25%, 11/15/44 4,425,300
1,000,000 NR/NR Texas Midwest Public Facility Corp.,
10/1/30 (c) (d) 245,620
---------------
$ 61,894,976
-------------------------------------------------------------------------------------------------------------
Utah -- 2.0%
1,450,000 NR/NR Utah State Charter School Finance
Authority, 7.25%, 5/15/21 $ 1,579,616
1,985,000 NR/NR Utah State Charter School Finance
Authority, 8.125%, 5/15/31 2,191,321
5,145,000 NR/NR Utah State Charter School Finance
Authority, 8.5%, 5/15/41 5,773,873
---------------
$ 9,544,810
-------------------------------------------------------------------------------------------------------------
Virginia -- 1.3%
9,750,000 B-/B3 Tobacco Settlement Financing Corp.
Virginia, 5.0%, 6/1/47 $ 6,564,968
-------------------------------------------------------------------------------------------------------------
Washington -- 2.6%
3,350,000 NR/NR Washington State Housing Finance
Commission, 5.625%, 1/1/27 $ 3,351,541
9,610,000 NR/NR Washington State Housing Finance
Commission, 5.625%, 1/1/38 9,159,675
---------------
$ 12,511,216
-------------------------------------------------------------------------------------------------------------
West Virginia -- 6.5%
25,000,000 NR/NR City of Philippi West Virginia,
7.75%, 10/1/44 $ 25,026,998
6,385,000 NR/NR West Virginia Hospital Finance Authority,
9.125%, 10/1/41 6,793,257
---------------
$ 31,820,255
-------------------------------------------------------------------------------------------------------------
Wisconsin -- 3.8%
1,590,000 BBB-/NR Public Finance Authority, 5.625%, 7/1/44 $ 1,631,547
2,815,000 NR/NR Public Finance Authority, 6.2%, 10/1/42 2,930,922
5,057,500 NR/NR Public Finance Authority, 7.0%, 10/1/42 4,929,899
5,325,000 NR/NR Public Finance Authority, 8.25%, 6/1/46 6,204,903
3,100,000 NR/NR Public Finance Authority, 8.375%, 6/1/20 3,109,548
---------------
$ 18,806,819
-------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $480,420,520) $ 475,724,118
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 21
Schedule of Investments | 8/31/14 (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED
DEBT OBLIGATION -- 0.0%+
1,175,000 0.00 NR/NR Non-Profit Preferred Funding Trust I,
Floating Rate Note, 9/15/37 (144A) $ 132,951
-------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED
DEBT OBLIGATION
(Cost $1,175,000) $ 132,951
-------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN
SECURITIES -- 97.1%
(Cost $481,595,520) (a) (e) $ 475,857,069
-------------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 2.9% $ 14,125,576
-------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 489,982,645
=============================================================================================================
NR Not rated by either S&P or Moody's.
+ Rounds to less than 0.01%.
(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
August 31, 2014, the value of these securities amounted to $1,153,091 or
0.2% of total net assets.
(PIK) Represents a pay-in-kind security.
(a) At August 31,2014, the net unrealized appreciation/depreciation on
investments based on cost for federal income tax purposes of
$481,300,909 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 27,638,177
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (33,082,017)
------------
Net unrealized depreciation $ (5,443,840)
============
(b) Debt obligation with a variable interest rate. Rate shown is rate at end
of period.
(c) Security is in default and is non-income producing.
(d) Security issued with zero coupon. Income is earned through accretion of
discount.
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
(e) The concentration of investments by type of obligation/market sector is
as follows:
Revenue Bonds:
Health 30.2%
Education 19.8%
Special Revenues 18.6%
Pollution Control Revenue 11.0%
Various Revenues 9.9%
Transportation 4.5%
General Obligation 2.6%
Reserves 1.1%
Water & Sewer 1.1%
Insured 0.8%
Housing 0.4%
----------------------------------------------------------------------------------------
100.0%
========================================================================================
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2014 aggregated $269,587,918 and $408,401,993,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed 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
risk, 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.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
as Level 3. See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of August 31, 2014, in valuing
the Fund's investments:
----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------
Municipal Bonds $ -- $475,724,118 $ -- $475,724,118
Municipal Collateralized Debt Obligation -- 132,951 -- 132,951
----------------------------------------------------------------------------------------
Total $ -- $475,857,069 $ -- $475,857,069
========================================================================================
During the year ended August 31, 2014, there were no transfers between Levels 1,
2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 23
Statement of Assets and Liabilities | 8/31/14
ASSETS:
Investment in securities, at value (cost $481,595,520) $475,857,069
Cash 12,581,140
Receivables --
Investment securities sold 3,655,741
Fund shares sold 3,203,062
Interest 8,654,906
Due from Pioneer Investment Management, Inc. 2,677
Other 32,173
--------------------------------------------------------------------------------
Total assets $503,986,768
================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 10,534,385
Fund shares repurchased 2,696,570
Dividends 551,552
Due to affiliates 105,531
Trustee fees 2,856
Accrued expenses 113,229
--------------------------------------------------------------------------------
Total liabilities $ 14,004,123
================================================================================
NET ASSETS:
Paid-in capital $540,949,017
Undistributed net investment income 8,420,280
Accumulated net realized loss on investments (53,648,201)
Net unrealized depreciation on investments (5,738,451)
--------------------------------------------------------------------------------
Total net assets $489,982,645
================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $240,330,903/33,044,450 shares) $ 7.27
Class C (based on $149,452,825/20,543,341 shares) $ 7.28
Class Y (based on $100,198,917/13,954,458 shares) $ 7.18
MAXIMUM OFFERING PRICE:
Class A ($7.27 (divided by) 95.5%) $ 7.61
================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
Statement of Operations
For the Year Ended 8/31/14
INVESTMENT INCOME:
Interest $34,425,527
--------------------------------------------------------------------------------
Total investment income $34,425,527
--------------------------------------------------------------------------------
EXPENSES:
Management fees $ 2,498,636
Transfer agent fees
Class A 34,595
Class C 10,889
Class Y 2,616
Distribution fees
Class A 595,733
Class C 1,640,385
Shareholder communications expense 278,599
Administrative reimbursement 166,849
Custodian fees 9,517
Registration fees 104,482
Professional fees 137,190
Printing expense 25,761
Fees and expenses of nonaffiliated Trustees 15,982
Interest expense 110,280
Miscellaneous 85,771
--------------------------------------------------------------------------------
Total expenses $ 5,717,285
--------------------------------------------------------------------------------
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (2,677)
--------------------------------------------------------------------------------
Net expenses $ 5,714,608
--------------------------------------------------------------------------------
Net investment income $28,710,919
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $ 2,409,680
--------------------------------------------------------------------------------
Change in net unrealized depreciation on investments $ 3,527,217
--------------------------------------------------------------------------------
Net gain on investments $ 5,936,897
--------------------------------------------------------------------------------
Net increase in net assets resulting from operations $34,647,816
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 25
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/14 8/31/13
----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 28,710,919 $ 48,312,643
Net realized gain on investments 2,409,680 15,135,141
Change in net unrealized appreciation (depreciation)
on investments 3,527,217 (86,344,407)
----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 34,647,816 $ (22,896,623)
----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.44 and $0.44 per share, respectively) $ (14,679,335) $ (19,349,016)
Class C ($0.39 and $0.38 per share, respectively) (8,896,752) (12,640,678)
Class Y ($0.45 and $0.45 per share, respectively) (6,197,281) (10,604,265)
----------------------------------------------------------------------------------------
Total distributions to shareowners $ (29,773,368) $ (42,593,959)
----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 171,100,856 $ 259,833,657
Reinvestment of distributions 23,543,400 32,589,669
Cost of shares repurchased (274,646,597) (476,972,507)
----------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (80,002,341) $ (184,549,181)
----------------------------------------------------------------------------------------
Net decrease in net assets $ (75,127,893) $ (250,039,763)
NET ASSETS:
Beginning of year 565,110,538 815,150,301
----------------------------------------------------------------------------------------
End of year $ 489,982,645 $ 565,110,538
----------------------------------------------------------------------------------------
Undistributed net investment income $ 8,420,280 $ 9,245,949
========================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
-------------------------------------------------------------------------------------------
'14 Shares '14 Amount '13 Shares '13 Amount
-------------------------------------------------------------------------------------------
Class A
Shares sold 13,364,645 $ 95,629,792 14,993,517 $ 120,667,855
Reinvestment of distributions 1,762,944 12,632,777 1,982,918 15,747,383
Less shares repurchased (16,892,168) (120,665,382) (29,176,427) (231,678,201)
-------------------------------------------------------------------------------------------
Net decrease (1,764,579) $ (12,402,813) (12,199,992) $ (95,262,963)
===========================================================================================
Class C
Shares sold 3,088,934 $ 22,128,792 5,733,047 $ 46,286,122
Reinvestment of distributions 969,680 6,948,501 1,208,628 9,597,190
Less shares repurchased (10,680,691) (76,310,340) (13,216,214) (103,481,378)
-------------------------------------------------------------------------------------------
Net decrease (6,622,077) $ (47,233,047) (6,274,539) $ (47,598,066)
===========================================================================================
Class Y
Shares sold 7,547,136 $ 53,342,272 11,686,311 $ 92,879,680
Reinvestment of distributions 560,257 3,962,122 921,213 7,245,096
Less shares repurchased (11,017,755) (77,670,875) (18,272,467) (141,812,928)
-------------------------------------------------------------------------------------------
Net decrease (2,910,362) $ (20,366,481) (5,664,943) $ (41,688,152)
===========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 27
Financial Highlights
------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/14 8/31/13 8/31/12 8/31/11 8/31/10
------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 7.19 $ 7.94 $ 7.58 $ 7.97 $ 6.84
------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.43 $ 0.53 $ 0.47 $ 0.53 $ 0.55
Net realized and unrealized gain (loss) on investments 0.09 (0.84) 0.34 (0.40) 1.12
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.52 $ (0.31) $ 0.81 $ 0.13 $ 1.67
------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.44) $ (0.44) $ (0.45) $ (0.52) $ (0.55)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.08 $ (0.75) $ 0.36 $ (0.39) $ 1.12
------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.27 $ 7.19 $ 7.94 $ 7.58 $ 7.97
========================================================================================================================
Total return* 7.52% (4.26)% 11.24% 1.83% 25.15%
Ratio of net expenses to average net assets 0.90% 0.88% 0.89% 0.88% 0.90%
Ratio of net investment income to average net assets 5.97% 6.26% 6.25% 6.98% 7.08%
Portfolio turnover rate 55% 17% 54% 65% 15%
Net assets, end of period (in thousands) $240,331 $250,163 $373,039 $378,883 $311,324
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Total expenses 0.90% 0.88% 0.89% 0.88% 0.95%
Net investment income 5.97% 6.26% 6.25% 6.98% 7.03%
========================================================================================================================
* 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.
28 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/14 8/31/13 8/31/12 8/31/11 8/31/10
------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 7.19 $ 7.94 $ 7.58 $ 7.96 $ 6.83
------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.41 $ 0.46 $ 0.41 $ 0.47 $ 0.49
Net realized and unrealized gain (loss) on investments 0.07 (0.83) 0.35 (0.39) 1.12
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.48 $ (0.37) $ 0.76 $ 0.08 $ 1.61
------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.39) $ (0.38) $ (0.40) $ (0.46) $ (0.48)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.09 $ (0.75) $ 0.36 $ (0.38) $ 1.13
------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.28 $ 7.19 $ 7.94 $ 7.58 $ 7.96
========================================================================================================================
Total return* 6.85% (4.98)% 10.42% 1.19% 24.11%
Ratio of net expenses to average net assets 1.66% 1.63% 1.63% 1.63% 1.69%
Ratio of net investment income to average net assets 5.23% 5.53% 5.50% 6.24% 6.31%
Portfolio turnover rate 55% 17% 54% 65% 15%
Net assets, end of period (in thousands) $149,453 $195,290 $265,448 $244,848 $184,068
========================================================================================================================
* 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 High Income Municipal Fund | Annual Report | 8/31/14 29
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/14 8/31/13 8/31/12 8/31/11 8/31/10
-----------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 7.10 $ 7.84 $ 7.49 $ 7.88 $ 6.80
-----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.46 $ 0.53 $ 0.48 $ 0.53 $ 0.57
Net realized and unrealized gain (loss) on investments 0.07 (0.82) 0.33 (0.39) 1.08
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.53 $ (0.29) $ 0.81 $ 0.14 $ 1.65
-----------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.45) $ (0.45) $ (0.46) $ (0.53) $ (0.56)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.08 $ (0.74) $ 0.35 $ (0.39) $ 1.09
-----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.18 $ 7.10 $ 7.84 $ 7.49 $ 7.88
=======================================================================================================================
Total return* 7.69% (4.05)% 11.43% 2.02% 24.73%
Ratio of net expenses to average net assets 0.71% 0.72% 0.67% 0.67% 0.67%
Ratio of net investment income to average net assets 6.17% 6.40% 6.46% 7.21% 7.32%
Portfolio turnover rate 55% 17% 54% 65% 15%
Net assets, end of period (in thousands) $100,199 $119,658 $176,664 $198,089 $77,757
=======================================================================================================================
* 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.
30 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
Notes to Financial Statements | 8/31/14
1. Organization and Significant Accounting Policies
Pioneer High Income Municipal Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as an open-end management
investment company. The Fund is non-diversified. The investment objective of the
Fund is to maximize total return through a combination of income that is exempt
from regular federal income tax and capital appreciation.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses, and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements which are consistent with
those policies generally accepted in the investment company industry:
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 31
A. Security Valuation
Security transactions are recorded as of trade date. The net asset
value of the Fund is computed once daily, on each day the New York Stock
Exchange (NYSE) is open, as of the close of regular trading on the NYSE.
Fixed income securities with remaining maturity of more than sixty days are
valued at 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. Valuations may
be supplemented by dealers and other sources, as required. Short-term fixed
income securities with remaining maturities of sixty days or less generally
are valued at amortized cost.
Securities for which independent pricing services 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 Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by 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. PIM'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.
At August 31, 2014, there were no securities that were valued using
fair value methods (other than securities valued using prices supplied by
independent pricing services or broker-dealers).
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis with
a corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the
identified cost method for both financial reporting and federal income tax
purposes.
32 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of August 31, 2014, the Fund did not accrue any interest or penalties
with respect to uncertain tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years remain subject to examination by
Federal and State tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
At August 31, 2014, the Fund reclassified $236,780 to increase
undistributed net investment income, and $236,780 to increase accumulated
net realized loss on investments to reflect permanent book/tax differences.
These adjustments have no impact on net assets or the results of
operations. At August 31, 2014, the Fund was permitted to carry forward
indefinitely $22,886,636 of short-term losses and $22,112,417 of long-term
losses under the Regulated Investment Company Modernization Act of 2010
without limitation. Additionally, at August 31, 2014, the Fund had a net
capital loss carryforward of $8,649,148 of which the following amounts will
expire between 2017 and 2018 if not utilized: $2,640,380 in 2017 and
$6,008,768 in 2018. Since new losses are required to be used first, loss
carryforwards that are subject to expiration may be more likely to expire
unused.
During the year ended August 31, 2014, a capital loss carryforward of
$3,091,072 was utilized to offset net realized gains by the fund.
The tax character of distributions paid during the years ended August 31,
2014 and August 31, 2013 were as follows:
---------------------------------------------------------------------------
2014 2013
---------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $28,444,745 $40,383,212
Ordinary income 1,328,623 2,210,747
---------------------------------------------------------------------------
Total $29,773,368 $42,593,959
===========================================================================
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 33
The following shows the components of distributable earnings on a federal
income tax-basis at August 31, 2014:
---------------------------------------------------------------------------
2014
---------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 8,677,221
Capital loss carryforward (53,648,201)
Dividend payable (551,552)
Net unrealized depreciation (5,443,840)
---------------------------------------------------------------------------
Total $ (50,966,372)
===========================================================================
The difference between book-basis and tax-basis net unrealized
depreciation is attributable to adjustments related to interest on
defaulted bonds, the tax treatment of premium and amortization and
tax-basis adjustments on partnerships.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned $68,113 in underwriting commissions on the sale of
Class A shares during the year ended August 31, 2014.
D. 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 transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), 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
34 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
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.
E. Risks
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 prospectus
contains unaudited information regarding the Fund's principal risks. Please
refer to that document when considering the Fund's principal risks.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate equal to
0.50% of the Fund's average daily net assets up to $500 million; 0.475% of the
next $500 million of the Fund's average daily net assets and 0.45% of the Fund's
average daily net assets over $1 billion. For the year ended August 31, 2014,
the effective management fee (excluding waivers and/or assumption of expenses)
was equivalent to 0.50% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses (excluding
taxes, commissions, interest and extraordinary expenses) of the Fund to the
extent required to reduce Fund expenses to 0.90% and 1.80% of the average daily
net assets attributable to Class A shares and Class C shares, respectively.
Class Y shares do not have an expense limitation. These expense limitations are
in effect through January 1, 2015. There can be no assurance that PIM 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
$32,813 in management fees, administrative costs and certain other
reimbursements payable to PIM at August 31, 2014.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 35
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the year ended August 31, 2014, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 81,991
Class C 88,884
Class Y 107,724
--------------------------------------------------------------------------------
Total $278,599
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $49,781 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at August 31, 2014.
4. Distribution Plan
The Fund has adopted a Distribution 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 PFD 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 PFD 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 $22,937 in distribution fees payable to
PFD at August 31, 2014.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to PFD. For the
year ended August 31, 2014, CDSCs in the amount of $44,474 were paid to PFD.
36 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended August 31, 2014, the Fund's expenses were
not reduced under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until February 12, 2014 was in the amount of $215
million. As of February 12, 2014, the facility is in the amount of $240 million.
Under such facility, depending on the type of loan, interest on borrowings is
payable at the London Interbank Offered Rate (LIBOR) plus 0.90% (0.85% as of
February 12, 2014) on an annualized basis, or the Alternate Base Rate, which is
the greater of (a) the facility's administrative agent's daily announced prime
rate on the borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing
date and (c) 2% plus the overnight Euro dollar rate on the borrowing date. The
Funds pay an annual commitment fee to participate in the credit facility. The
commitment fee is allocated among participating Funds based on an allocation
schedule set forth in the credit agreement. The average borrowings during the
year ended August 31, 2014 was $2,546,301. For the year ended August 31, 2014,
the Fund had no borrowings under the credit agreement.
7. Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Fund, with the approval and recommendation of the
Audit Committee, appointed Deloitte & Touche LLP to serve as the Fund's
independent registered public accounting firm for the fiscal year ending August
31, 2014. Deloitte & Touche LLP replaces Ernst & Young LLP, which resigned as
the Fund's independent registered public accounting firm, effective upon
completion of the audit of the Fund's financial statements for the fiscal year
ended August 31, 2013.
During the periods that Ernst & Young LLP served as the Fund's independent
registered public accounting firm, including the Fund's fiscal years ended
August 31, 2013 and August 31, 2012, Ernst & Young LLP's reports on the
financial statements of the Fund have not contained an adverse opinion or
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 37
disclaimer of opinion and have not been qualified or modified as to uncertainty,
audit scope or accounting principles. Further, there have been no disagreements
with Ernst & Young LLP on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure, which, if not
resolved to the satisfaction of Ernst & Young LLP would have caused Ernst &
Young LLP to make reference to the subject matter of the disagreement in
connection with its report on the financial statements. In addition, there have
been no reportable events of the kind described in Item 304 (a)(1)(v) of
Regulation S-K under the Securities Exchange Act of 1934.
38 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V and the
Shareowners of Pioneer High Income Municipal Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
High Income Municipal Fund (the "Fund"), one of the portfolios constituting
Pioneer Series Trust V, including the schedule of investments, as of August 31,
2014, and the related statements of operations and changes in net assets, and
the financial highlights for year then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit. The statement of changes in net assets
of the Fund for the year ended August 31, 2013, and the financial highlights for
the years ended August 31, 2013, 2012, 2011 and 2010 were audited by other
auditors. Those auditors expressed an unqualified opinion on those financial
statements and financial highlights in their report dated October 28, 2013.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of August 31, 2014, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer High Income Municipal Fund as of August 31, 2014, and the results of its
operations, the changes in its net assets, and the financial highlights for the
year then ended, in conformity with accounting principles generally accepted in
the United States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
October 29, 2014
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 39
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least the past five years. Trustees who are interested
persons of the Fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the Fund are
referred to as Independent Trustees. Each of the Trustees serves as a Trustee of
each of the 53 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
40 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
Independent Trustees
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (63) Trustee since 2006. Private investor (2004-2008 and Director, Broadridge Financial
Chairman of the Board Serves until a 2013-present); Chairman (2008 - Solutions, Inc. (investor
and Trustee successor trustee is 2013) and Chief Executive Officer communications and securities
elected or earlier (2008 - 2012), Quadriserv, Inc. processing provider for financial
retirement or removal. (technology products for securities services industry) (2009 - present);
lending industry); and Senior Director, Quadriserv, Inc. (2005 -
Executive Vice President, The Bank 2013); and Commissioner, New Jersey
of New York (financial and State Civil Service Commission (2011
securities services) (1986 - 2004) - present)
--------------------------------------------------------------------------------------------------------------------------------
David R. Bock (70) Trustee since 2005. Managing Partner, Federal City Director of Enterprise Community
Trustee Serves until a Capital Advisors (corporate advisory Investment, Inc. (privately held
successor trustee is services company) (1997 - 2004 and affordable housing finance company)
elected or earlier 2008 - present); Interim Chief (1985 - 2010); Director of Oxford
retirement or removal. Executive Officer, Oxford Analytica, Analytica, Inc. 2008 - present);
Inc. (privately held research and Director of The Swiss (Helvetia Fund,
consulting company) (2010); Inc. (closed-end fund) (2010 -
Executive Vice President and Chief present); and Director of New York
Financial Officer, I-trax, Inc. Mortgage Trust (publicly traded
(publicly traded health care mortgage REIT) (2004 - 2009, 2012 -
services company) (2004 - 2007); and present)
Executive Vice President and Chief
Financial Officer, Pedestal Inc.
(internet-based mortgage trading
company) (2000 - 2002)
--------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (70) Trustee since 2008. William Joseph Maier Professor of Trustee, Mellon Institutional Funds
Trustee Serves until a Political Economy, Harvard Investment Trust and Mellon
successor trustee is University (1972 - present) Institutional Funds Master Portfolio
elected or earlier (oversaw 17 portfolios in fund
retirement or removal. complex) (1989-2008)
--------------------------------------------------------------------------------------------------------------------------------
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 41
Independent Trustees (continued)
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (67) Trustee since 2006. Founding Director, Vice President None
Trustee Serves until a and Corporate Secretary, The
successor trustee is Winthrop Group, Inc. (consulting
elected or earlier firm) (1982 - present); Desautels
retirement or removal. Faculty of Management, McGill
University (1999 - present); and
Manager of Research Operations and
Organizational Learning, Xerox PARC,
Xerox's advance research center
(1990-1994)
--------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (66) Trustee since 2006. President and Chief Executive Director of New America High Income
Trustee Serves until a Officer, Newbury, Piret & Company, Fund, Inc. (closed-end investment
successor trustee is Inc. (investment banking firm) (1981 company) (2004 - present); and
elected or earlier - present) member, Board of Governors,
retirement or removal. Investment Company Institute (2000 -
2006)
--------------------------------------------------------------------------------------------------------------------------------
42 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
Interested Trustees
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (56)* Trustee since 2014. Director and Executive Vice President (since 2008) None
Trustee Serves until a and Chief Investment Officer, U.S. (since 2010), of
successor trustee is PIM-USA; Executive Vice President of Pioneer (since
elected or earlier 2008); Executive Vice President of Pioneer
retirement or Institutional Asset Management, Inc. (since 2009);
removal. Portfolio Manager of Pioneer (since 1999)
--------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer of the Fund's
investment adviser and certain of its affiliates.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 43
Fund Officers
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
--------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (52) Since 2014. Serves at Chair, Director, CEO and President of Pioneer None
President and the discretion of the Investment Management USA (since September 2014);
Chief Executive Officer Board. Chair, Director, CEO and President of Pioneer
Investment Management, Inc. (since September 2014);
Chair, Director, CEO and President of Pioneer Funds
Distributor, Inc. (since September 2014); Chair,
Director, CEO and President of Pioneer Institutional
Asset Management, Inc. (since September 2014); and
Chair, Director, and CEO of Pioneer Investment
Management Shareholder Services, Inc. (since
September 2014); Managing Director, Morgan Stanley
Investment Management (2010 - 2013); Director of
Institutional Business, CEO of International, Eaton
Vance Management (2005 - 2010)
--------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (49) Since 2006. Serves at Vice President and Associate General Counsel of None
Secretary and Chief the discretion of the Pioneer since January 2008; Secretary and Chief
Legal Officer Board. 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 Pioneer from July
2002 to December 2007
--------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (53) Since 2010. Serves at Fund Governance Director of Pioneer since December None
Assistant Secretary the discretion of the 2006 and Assistant Secretary of all the Pioneer
Board. Funds since June 2010; Manager - Fund Governance of
Pioneer from December 2003 to November 2006; and
Senior Paralegal of Pioneer from January 2000 to
November 2003
--------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (51) Since 2010. Serves at Senior Counsel of Pioneer since May 2013 and None
Assistant Secretary the discretion of the Assistant Secretary of all the Pioneer Funds since
Board. June 2010; Counsel of Pioneer from June 2007 to May
2013
--------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (54) Since 2008. Serves at Vice President - Fund Treasury of Pioneer; Treasurer None
Treasurer and Chief the discretion of the of all of the Pioneer Funds since March 2008; Deputy
Financial and Accounting Board. Treasurer of Pioneer from March 2004 to February
Officer of the Fund 2008; and Assistant Treasurer of all of the Pioneer
Funds from March 2004 to February 2008
--------------------------------------------------------------------------------------------------------------------------------
44 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
--------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (49) Since 2006. Serves at Director - Fund Treasury of Pioneer; and Assistant None
Assistant Treasurer the discretion of the Treasurer of all of the Pioneer Funds
Board.
--------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (56) Since 2006. Serves at Fund Accounting Manager - Fund Treasury of Pioneer; None
Assistant Treasurer the discretion of the and Assistant Treasurer of all of the Pioneer Funds
Board.
--------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (34) Since 2009. Serves at Fund Administration Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Pioneer since November 2008; Assistant Treasurer of
Board. all of the Pioneer Funds since January 2009; and
Client Service Manager - Institutional Investor
Services at State Street Bank from March 2003 to
March 2007
--------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (61) Since 2010. Serves at Chief Compliance Officer of Pioneer and of all the None
Chief Compliance Officer the discretion of the Pioneer Funds since March 2010; Director of Adviser
Board. and Portfolio Compliance at Pioneer since October
2005; and Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to
October 2005
--------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (43) Since 2006. Serves at Director - Transfer Agency Compliance of Pioneer and None
Anti-Money Laundering the discretion of the Anti-Money Laundering Officer of all the Pioneer
Officer Board. funds since 2006
--------------------------------------------------------------------------------------------------------------------------------
45 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
This page for your notes.
46 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
This page for your notes.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 47
This page for your notes.
48 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
This page for your notes.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 49
This page for your notes.
50 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
This page for your notes.
Pioneer High Income Municipal Fund | Annual Report | 8/31/14 51
This page for your notes.
52 Pioneer High Income Municipal Fund | Annual Report | 8/31/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 21203-07-1014
Pioneer Long/Short
Global Bond Fund
--------------------------------------------------------------------------------
Annual Report | August 31, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A LSGAX
Class C LSGCX
Class Y LSGYX
[LOGO] PIONEER
Investments (R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 30
Notes to Financial Statements 37
Report of Independent Registered Public Accounting Firm 52
Trustees, Officers and Service Providers 54
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 1
President's Letter
Dear Shareowner,
As we move into the final few months of 2014, we remain confident that U.S.
economic growth remains sustainable, if moderately paced. The weather-related
slowdown in the first quarter is behind us and labor market data continues to
show steady improvement. The number of people filing initial unemployment claims
is at the lowest level since the boom years of 2005-06, the number of job
openings is at the highest level since 2001, and unemployment is down to just
over 6%. Barring an external shock, we think it is likely that the domestic
economic expansion will continue until the economy reaches full employment.
Until then, remaining labor market slack and moderate capacity utilization offer
the potential for continuing non-inflationary growth.
The global economic picture is somewhat less rosy, as the Russia/Ukraine
conflict is exacting a toll on the European economy, Japan is working through
the impact of a large tax increase, and the growth of China's investment-driven
economy is slowing. On balance, though, we expect the global economy to continue
to grow in the second half of 2014, further supporting the U.S. economy.
While our outlook is constructive, the risk of an adverse "external" shock, such
as a military conflict, remains. While many such risks may already be "priced
into" the market, we caution against complacency and believe investors should
always be prepared for possible market volatility.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns.
2 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
On August 11, 2014, I joined Pioneer as the new President and CEO of Pioneer
Investment Management USA, Inc. Since 1928, Pioneer's investment professionals
have worked on behalf of our shareholders to find attractive investment
opportunities, incorporating our proprietary research and prudent risk
management techniques to construct our portfolios.
In my role, I will focus on preserving many of the rich qualities of our
history, while maintaining balance with the demands of this ever-changing world
in which we live.
We greatly appreciate your trust in us and we encourage you to seek investment
guidance and advice from your financial advisor to discuss your goals and
develop an overall investment plan or framework that addresses both your
short- and long-term goals.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA, Inc.
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. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 3
Portfolio Management Discussion | 8/31/14
In the following interview, portfolio managers Thomas Swaney and Benjamin Gord
discuss the factors that influenced Pioneer Long/Short Global Bond Fund's
performance for the abbreviated annual reporting period beginning with the
Fund's inception on December 30, 2013, and ending August 31, 2014, as well as
their investment approach in managing the Fund. Mr. Swaney, Head of Alternative
Fixed Income, U.S., a senior vice president, and a portfolio manager at Pioneer
(lead portfolio manager of the Fund since 2013), and Mr. Gord, a vice president
and a portfolio manager at Pioneer, are responsible for the day-to-day
management of the Fund.
Q Can you provide an overview of the Fund's approach?
A The big picture is that we seek to have the Fund produce an average annual
return that is greater than the return on 3-month Treasury bills, on an
annualized basis, with volatility lower than one would experience in the
broad equity market. In pursuing this goal, we seek to have the Fund
provide positive returns over most trailing 12-month periods and to
minimize the extent of any negative returns, regardless of market
conditions.
Obviously, if we are going to be successful in achieving our objective, the
Fund's returns cannot be overly dependent on the direction of one or more
financial asset categories. In seeking positive returns regardless of
market conditions, we utilize two distinct strategies. One strategy is
"directional," in that we need to be correct about whether a particular
asset price is poised to go up or down. However, we seek to have the Fund's
performance benefit from both positive and negative returns. This means
that at times we invest the portfolio in some asset categories within the
broad bond market by taking long positions, while speculating against other
asset classes by taking short positions.
The other part of the portfolio utilizes uncorrelated trading strategies,
in which we do not have to take a stance on whether an individual market is
going to rise or fall overall. Instead, we need to identify either a
segment or security within a market that we believe will outperform versus
another market segment or security. We execute these portfolio investment
strategies across several different global financial markets and many
different asset classes. We will seek to "pair" positions, meaning that the
Fund will have a long position in one segment/security of a particular
market, and a short position in another segment/security, such that the
performance of the pair is not dependent on the direction of the market. We
believe this strategy can allow the Fund to benefit from favorable relative
performance, regardless of the overall direction of that market.
4 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
Most importantly, we closely track the risks we have assumed in both
portions of the portfolio and operate within an overall "risk budget,"
which is based on our goal of largely avoiding negative returns over a
12-month period.
Q How did the Fund perform during the abbreviated annual reporting period
from December 30, 2013, through August 31, 2014?
A Pioneer Long/Short Global Bond Fund's Class A shares returned 0.50% at net
asset value during the period between December 30, 2013, and August 31,
2014. During the same period, the Fund's benchmark, the Bank of America
Merrill Lynch (BofA ML) 3-Month U.S. Treasury-Bill Index, returned 0.03%.
Q Can you review the principal portfolio investment strategies you
implemented during the Fund's abbreviated annual reporting period ended
August 31, 2014? How did those strategies help or hinder the Fund's
performance?
A We have implemented a number of strategies within the "uncorrelated"
portion of the Fund's portfolio. The Currency Long/Short strategy has made
a significant positive contribution to the Fund's benchmark-relative return
during the first eight months of the Fund's existence. Specifically, the
portfolio has been "long" the U.S. dollar while shorting the euro. That has
worked out well as the dollar has strengthened versus other major
currencies. The portfolio also implemented a number of curve trades in the
Credit Long/Short strategy, where the Fund is long one part of an
individual issuer's yield curve and short another, depending on our outlook
for the issuer's curve to steepen or flatten. That strategy, too, has
contributed to the Fund's relative returns since inception. We have also
had pair trades within the strategy, utilizing two issuers within the same
industry sector for whom we expect performance to diverge. The Fund also
holds a variety of event-linked (catastrophe) bonds, which are designed to
pay reasonable yields in exchange for insurance protection against major
calamities such as hurricanes, floods and earthquakes. We like catastrophe
bonds for their low correlation to any equity or fixed-income market risks.
That position also contributed to the Fund's performance over the period.
The Fund's Cross Asset Relative Value strategy was the leading detractor
from performance during the period. Under the strategy, we seek to pair
trades in order to take advantage of any distortions in relative valuation
between asset classes: for instance, high-yield versus investment-grade
corporates. The approach has experienced some challenges in the current
environment of low volatility and narrow credit spreads, which are the
differences in yield between various fixed-income securities with similar
maturities. Our long/short trades related to equity and yield curve
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 5
exposures also modestly detracted from the Fund's performance. With regard
to the latter exposure, we have been shorting a very specific point on the
U.S. yield curve, as we do not believe the markets are prepared for the
likely pace of the Federal Reserve's (the Fed's) policy tightening should
the domestic economy return to above-trend growth.
In the "directional" side of the portfolio, we have been wary of taking on
long credit exposure given the spread tightening that has occurred. We
have, however, held a portfolio position in euro-denominated bonds that are
convertible into equity. That position gives the Fund exposure to any
improvement in the European stock market over the next few years, along
with downside protection. We have also taken positions in select U.S.
convertible securities, in particular within the biotech/pharmaceutical
area of the health care sector. More opportunistically, we have traded the
portfolio in and out of high-yield issues in both the U.S. and Europe.
The Fund has meaningful exposure to securitized credit markets, such as
non-agency mortgages, where we see opportunities for the Fund to earn
reasonable risk-adjusted returns with less sensitivity to the direction of
the U.S. equity market. Because we seek to hedge out the accompanying
interest-rate risk, we are isolating the cheapness of mortgage bonds.
Another directional trade has been to take a long portfolio position in
asset-sensitive financial companies, while extracting the equity beta from
those positions using derivatives, along with a corresponding short
position in large-cap industrial companies. (Beta is a statistical
measurement of an investment's sensitivity to market movements in relation
to an index.)
On the short side of the directional portfolio, we took a position with
respect to investment-grade debt in both Asia and Australia, which we
viewed as being vulnerable to the credit slowdown in China. China is
attempting to grow at a 7.5% rate while contracting credit and relying on a
shadow banking system. We believed both the Asian and Australian credit
markets were a prudent and efficient way to get the Fund some short
exposure to a China policy error. We closed the trade during the period,
with a modest negative impact on Fund performance.
Q What is your assessment of the current macroeconomic climate and the
investment opportunities it may present?
A Overall, we expect global economic growth to continue to strengthen. In the
U.S., we are looking for growth to move up into the range of historic
long-term trends, supported by improvements in employment and the
availability of credit. At the same time, we believe there will be
disappointments along the way, and with the Fed no longer committed to
stepping up its accommodative policies to backstop conditions, asset prices
6 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
will likely experience significant volatility. Another macroeconomic
development we are examining is the lack of a clear definition when it
comes to emerging versus developed markets. Many emerging economies are
actually in a better position from the standpoint of debt and current-
account flows, and we anticipate that performance trends in global bond
markets will become increasingly country-specific.
More broadly, we would not be surprised to see market volatility and
performance dispersion increase as global central bank policies diverge and
as the Fed's tightening transitions from tapering quantitative easing to
eventually raising interest rates. We believe that scenario could create
opportunities for an uncorrelated investment strategy such as the Fund's,
and we will seek to identify trades that can help it to capitalize on these
emerging themes.
Please refer to the Schedule of Investments on pages 16-29 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
The portfolio may invest in derivative securities, such as options, futures,
inverse floating-rate obligations, and swaps, among others, which can be
illiquid, may disproportionately increase losses, and have a potentially large
impact on the performance of the portfolio.
The Fund may take short positions, which involves leverage of its assets and
presents additional risks.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the Fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund employs leverage, which increases the volatility of investment returns
and subjects the Fund to magnified losses.
Investments in fixed-income securities involve interest rate, credit, inflation,
and reinvestment risks.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investments in high-yield or lower-rated securities are subject to
greater-than-average price volatility, illiquidity and possibility of default.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 7
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 securities issued by U.S. Government sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
The portfolio 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.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund may invest in event-linked bonds, on which the return of principal and
the payment of interest are contingent on the non-occurrence of a pre-defined
"trigger" event, such as a hurricane or an earthquake of a specific magnitude.
The Fund may invest in floating-rate loans; the value of collateral, if any,
securing a floating-rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
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 is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
These risks may increase share price volatility.
There is no assurance that these and other strategies used by the Fund will be
successful. Please see the prospectus for a more complete discussion of the
Fund's risks.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments 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. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
8 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
Portfolio Summary | 8/31/14
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Foreign Government Bonds 34.3%
Collateralized Mortgage Obligations 26.5%
Convertible Corporate Bonds 8.5%
Temporary Cash Investment 6.2%
U.S. Common Stocks 5.4%
Exchange Traded Fund 4.6%
Senior Secured Loans 4.5%
International Corporate Bonds 3.2%
Asset Backed Securities 2.1%
Convertible Preferred Stocks 1.4%
U.S. Government Securities 1.2%
U.S. Preferred Stocks 1.1%
U.S. Corporate Bonds 1.0%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. Dutch Treasury Certificate, 0.0%, 9/30/14 10.72%
----------------------------------------------------------------------------------------
2. Italy Buoni Ordinari del Tesoro BOT, 0.0%, 10/14/14 10.29
----------------------------------------------------------------------------------------
3. Belgium Treasury Bill, 0.0%, 10/16/14 5.67
----------------------------------------------------------------------------------------
4. JP Morgan Mortgage Trust 2014-1 REMICS, Floating Rate Note, 1/25/44 (144A) 4.09
----------------------------------------------------------------------------------------
5. JP Morgan Mortgage Trust 2014-1 REMICS, Floating Rate Note, 1/25/44 (144A) 4.03
----------------------------------------------------------------------------------------
6. Belgium Treasury Bill, 0.0%, 9/18/14 3.99
----------------------------------------------------------------------------------------
7. Sequoia Mortgage Trust 2013-7, Floating Rate Note, 6/25/43 3.82
----------------------------------------------------------------------------------------
8. France Treasury Bill BTF, 0.0%, 9/4/14 3.63
----------------------------------------------------------------------------------------
9. Sequoia Mortgage Trust 2012-3, Floating Rate Note, 7/25/42 3.17
----------------------------------------------------------------------------------------
10. Sequoia Mortgage Trust 2013-6, Floating Rate Note, 5/26/43 3.02
----------------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 9
Prices and Distributions | 8/31/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/14 12/30/13*
--------------------------------------------------------------------------------
A $10.05 $10.00
--------------------------------------------------------------------------------
C $10.00 $10.00
--------------------------------------------------------------------------------
Y $10.07 $10.00
--------------------------------------------------------------------------------
Distributions per Share: 12/30/13*-8/31/14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ -- $ -- $ --
--------------------------------------------------------------------------------
C $ -- $ -- $ --
--------------------------------------------------------------------------------
Y $ -- $ -- $ --
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bank of America Merrill Lynch (BofA ML) 3-Month US Treasury Bill Index is an
unmanaged market index of U.S. Treasury securities maturing in 90 days, that
assumes reinvestment of all income. 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 11-13.
* The Fund commenced operations on December 30, 2013.
10 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
Performance Update | 8/31/14 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 Long/Short Global Bond Fund at
public offering price during the periods shown, compared to that of the Bank of
America Merrill Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
Net Public BofA ML
Asset Offering 3-Month
Value Price U.S. Treasury
Period (NAV) (POP) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 0.50% -4.01% 0.03%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 6, 2013,
as revised January 8, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.84% 1.60%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month
Global Bond Fund US Treasury Bill Index
12/31/2013 $ 9,550 $ 10,000
8/31/2014 $ 9,599 $ 10,003
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class A shares. There can be no assurance
that 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.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 11
Performance Update | 8/31/14 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 Long/Short Global Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 0.00% -1.00% 0.03%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 6, 2013,
as revised January 8, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.59% 2.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month
Global Bond Fund US Treasury Bill Index
12/31/2013 $ 10,000 $ 10,000
8/31/2014 $ 9,900 $ 10,003
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class C shares. There can be no assurance
that 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.
12 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
Performance Update | 8/31/14 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 Long/Short Global Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 0.70% 0.70% 0.03%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 6, 2013,
as revised January 8, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.59% 1.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Long/Short BofA ML 3-month
Global Bond Fund US Treasury Bill Index
12/31/2013 $ 5,000,000 $ 5,000,000
8/31/2014 $ 5,035,000 $ 5,001,378
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class 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 January 1, 2015, for Class Y shares. There can be no assurance
that 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.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Long/Short Global Bond Fund
Based on actual returns from March 1, 2014, through August 31, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 3/1/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 8/31/14 $1,005.00 $1,001.00 $1,007.00
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 8.29 $ 12.05 $ 7.03
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratio of the underlying funds. These combined totals were 1.64%,
2.39%, and 1.39% for Class A, Class C and Class Y, respectively. These
combined ratios were multiplied by the average account value over value over
the period, and then multiplied by 184/365 (to reflect the partial year
period).
14 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
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 Long/Short Global Bond Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2014, through August 31, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 3/1/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 8/31/14 $1,016.94 $1,013.16 $1,018.20
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 8.34 $ 12.13 $ 7.07
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratio of the underlying funds. These combined totals were 1.64%,
2.39%, and 1.39% for Class A, Class C and Class Y, respectively. These
combined ratios were multiplied by the average account value over value
over the period, and then multiplied by 184/365 (to reflect the partial
year period).
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 15
Schedule of Investments | 8/31/14
-----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-----------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE
BONDS -- 8.1%
MATERIALS -- 0.4%
Diversified Metals & Mining -- 0.4%
100,000 BB/NR Vedanta Resources Jersey, Ltd.,
5.5%, 7/13/16 $ 102,000
-----------
Total Materials $ 102,000
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.5%
Trading Companies &
Distributors -- 0.5%
EUR 100,000 B+/NR Kloeckner & Co. Financial Services
SA, 2.5%, 12/22/17 $ 130,193
-----------
Total Capital Goods $ 130,193
-----------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY
& LIFE SCIENCES -- 2.5%
Biotechnology -- 2.5%
449,000 NR/NR Cubist Pharmaceuticals, Inc., 1.875%,
9/1/20 (144A) $ 510,176
120,000 NR/NR Emergent Biosolutions, Inc., 2.875%,
1/15/21 (144A) 130,350
-----------
$ 640,526
-----------
Total Pharmaceuticals, Biotechnology
& Life Sciences $ 640,526
-----------------------------------------------------------------------------------------------------
BANKS -- 0.6%
Diversified Banks -- 0.6%
EUR 100,000 NR/NR Caja de Ahorros y Pensiones
de Barcelona, 1.0%, 11/25/17 $ 148,060
-----------
Total Banks $ 148,060
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.8%
Multi-Sector Holdings -- 1.8%
EUR 100,000 NR/NR GBL Verwaltung SA, 1.25%, 2/7/17 $ 148,060
EUR 200,000 NR/NR Groupe Bruxelles Lambert SA,
0.125%, 9/21/15 321,186
-----------
$ 469,246
-----------
Total Diversified Financials $ 469,246
-----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.7%
Internet Software & Services -- 0.6%
130,000 NR/NR WebMD Health Corp., 1.5%,
12/1/20 (144A) $ 143,894
-----------------------------------------------------------------------------------------------------
Systems Software -- 1.1%
260,000 NR/NR ServiceNow, Inc., 0.0%,
11/1/18 (144A) (c) $ 282,588
-----------
Total Software & Services $ 426,482
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
-----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-----------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.6%
EUR 100,000 B/Ba1 Parpublica -- Participacoes Publicas
SGPS SA, 5.25%, 9/28/17 $ 150,096
-----------
Total Government $ 150,096
-----------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $2,025,042) $ 2,066,603
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 1.1%
BANKS -- 1.1%
Diversified Banks -- 1.1%
320,000 1.19 BBB/Baa2 JPMorgan Chase Capital XXI, Floating
Rate Note, 1/15/87 $ 276,800
-----------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $259,232) $ 276,800
-----------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED
STOCK -- 0.9%
DIVERSIFIED FINANCIALS -- 0.9%
Other Diversified Financial
Services -- 0.9%
200 BB+/Ba3 Bank of America Corp., 7.25%
(Perpetual) $ 234,200
-----------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $229,386) $ 234,200
-----------------------------------------------------------------------------------------------------
COMMON STOCKS -- 5.1%
ENERGY -- 1.0%
Oil & Gas Exploration &
Production -- 1.0%
3,250 Devon Energy Corp. $ 245,115
-----------
Total Energy $ 245,115
-----------------------------------------------------------------------------------------------------
BANKS -- 1.7%
Regional Banks -- 1.7%
1,950 BankUnited, Inc. $ 61,522
4,004 First Republic Bank 195,796
6,579 Zions Bancorporation 191,712
-----------
$ 449,030
-----------
Total Banks $ 449,030
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 17
Schedule of Investments | 8/31/14 (continued)
-----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Rate (b) Ratings
Shares (unaudited) (unaudited) Value
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.4%
Asset Management & Custody
Banks -- 2.4%
7,358 Ares Capital Corp. $ 126,190
10,000 Fifth Street Finance Corp. 98,300
7,297 Golub Capital BDC, Inc. 129,084
7,251 TCP Capital Corp. 127,835
4,707 Triangle Capital Corp. 129,348
-----------
$ 610,757
-----------
Total Diversified Financials $ 610,757
-----------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,315,975) $ 1,304,902
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Principal
Amount ($)
-----------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 2.0%
BANKS -- 1.6%
Thrifts & Mortgage Finance -- 1.6%
118,041 B+/B3 Accredited Mortgage Loan Trust 2003-3,
5.21%, 1/25/34 (Step) $ 114,831
100,000 NR/NR CAM Mortgage Trust 2014-1, 5.5%,
12/15/53 (Step) (144A) 100,672
45,580 1.46 B+/B2 First Franklin Mortgage Loan Trust
2003-FFC, Floating Rate Note, 11/25/32 43,546
44,657 BBB/NR Icon Brand Holdings LLC, 4.229%,
1/25/43 (144A) 45,066
38,234 3.16 A/Baa2 Irwin Whole Loan Home Equity Trust
2003-C, Floating Rate Note, 6/25/28 38,301
71,621 5.47 B/B1 New Century Home Equity Loan Trust,
Floating Rate Note, 8/25/34 73,908
-----------
$ 416,324
-----------
Total Banks $ 416,324
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.4%
Other Diversified Financial
Services -- 0.4%
95,000 BBB/NR TAL Advantage V LLC, 4.1%, 2/22/39 $ 96,084
-----------
Total Diversified Financials $ 96,084
-----------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $511,050) $ 512,408
-----------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 25.1%
BANKS -- 25.1%
Thrifts & Mortgage Finance -- 25.1%
51,816 1.16 A/Baa1 Bayview Commercial Asset Trust, Floating
Rate Note, 1/25/35 (144A) $ 47,705
The accompanying notes are an integral part of these financial statements.
18 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
-----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage
Finance -- (continued)
100,000 BB/NR Bear Stearns Commercial Mortgage
Securities Trust 2006-PWR14,
5.273%, 12/11/38 $ 101,968
21,901 NR/Baa2 Citicorp Mortgage Securities REMIC
Pass-Through Certificates Trust Series
2005-3, 5.5%, 4/25/35 22,021
175,000 5.57 NR/Ba3 COBALT Commercial Mortgage Trust
2007-C2, Floating Rate Note,
4/15/47 (144A) 179,792
175,000 NR/B3 COMM 2006-C8 Mortgage Trust,
5.377%, 12/10/46 175,422
175,000 3.26 BB-/NR CSMC Trust 2014-SURF, Floating Rate
Note, 2/15/29 (144A) 175,448
200,000 B/B3 JP Morgan Chase Commercial Mortgage
Securities Trust 2006-CIBC16,
5.623%, 5/12/45 201,755
100,000 3.05 BB/NR JP Morgan Chase Commercial Mortgage
Securities Trust 2013-FL3, Floating Rate
Note, 4/17/28 (144A) 100,044
977,831 3.50 AAA/NR JP Morgan Mortgage Trust 2014-1
REMICS, Floating Rate Note,
1/25/44 (144A) 986,678
934,229 4.00 AAA/NR JP Morgan Mortgage Trust 2014-1
REMICS, Floating Rate Note,
1/25/44 (144A) 971,453
125,000 5.39 NR/B1 LB-UBS Commercial Mortgage Trust
2005-C2, Floating Rate Note, 4/15/40 127,859
150,000 5.28 BB/NR LB-UBS Commercial Mortgage Trust
2006-C1, Floating Rate Note, 2/15/41 153,479
55,000 5.48 NR/Ba2 ML-CFC Commercial Mortgage Trust
2006-3, Floating Rate Note, 7/12/46 56,303
9,145 0.94 AAA/Aaa Nomura Asset Acceptance Corp Alternative
Loan Trust Series 2004-AR2, Floating
Rate Note, 10/25/34 9,126
758,623 3.50 NR/Aaa Sequoia Mortgage Trust 2012-3, Floating
Rate Note, 7/25/42 765,724
747,867 3.00 NR/Aaa Sequoia Mortgage Trust 2013-6, Floating
Rate Note, 5/26/43 729,170
944,570 3.00 AAA/NR Sequoia Mortgage Trust 2013-7, Floating
Rate Note, 6/25/43 920,956
124,991 4.75 NR/NR Volt LLC , Series 14-NPL1, Floating Rate
Note, 10/27/53 124,642
250,000 5.37 BB+/B2 Wachovia Bank Commercial Mortgage
Trust Series 2005-C22, Floating Rate
Note, 12/15/44 255,174
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 19
Schedule of Investments | 8/31/14 (continued)
-----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage
Finance -- (continued)
100,000 6.15 B/B1 Wachovia Bank Commercial Mortgage
Trust Series 2007-C34, Floating Rate
Note, 5/15/46 $ 103,729
200,000 3.66 BB/NR Wells Fargo Commercial Mortgage
Trust 2014-TISH, Floating Rate Note,
1/15/27 (144A) 199,748
-----------
$ 6,408,196
-----------
Total Banks $ 6,408,196
-----------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $6,262,404) $ 6,408,196
-----------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 4.0%
INSURANCE -- 4.0%
Reinsurance -- 4.0%
250,000 6.89 NR/NR Caelus Re, Ltd., Floating Rate Note,
4/7/17 (Cat Bond) (144A) $ 261,050
250,000 4.52 BB-/NR Kilimanjaro Re, Ltd., Floating Rate
Note, 4/30/18 (Cat Bond) (144A) 250,150
250,000 8.50 NR/Ba3 Mythen Re, Ltd., Floating Rate Note,
5/7/15 (Cat Bond) (144A) 258,950
250,000 4.53 BB+/NR Residential Reinsurance 2012, Ltd.,
Floating Rate Note, 12/6/16 (Cat
Bond) (144A) 256,575
-----------
$ 1,026,725
-----------
Total Insurance $ 1,026,725
-----------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $1,024,848) $ 1,026,725
-----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATION -- 1.2%
300,000 NR/NR U.S. Treasury Bills, 0.0%, 9/18/14 (c)(d) $ 299,998
-----------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATION
(Cost $299,998) $ 299,998
-----------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT
BONDS -- 32.5%
EUR 1,041,282 NR/NR Belgium Treasury Bill, 0.0%, 10/16/14 (c) $ 1,368,014
EUR 733,588 AA/Aa3 Belgium Treasury Bill, 0.0%, 9/18/14 (c) 963,751
EUR 1,970,000 AA+/Aaa Dutch Treasury Certificate, 0.0%,
9/30/14 (c) 2,588,166
EUR 666,639 NR/NR France Treasury Bill BTF, 0.0%, 9/4/14 (c) 875,797
EUR 1,890,000 NR/NR Italy Buoni Ordinari del Tesoro BOT,
0.0%, 10/14/14 (c) $ 2,482,814
-----------
$ 8,278,542
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
-----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-----------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $8,372,333) $ 8,278,542
-----------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 4.3%**
ENERGY -- 1.0%
Oil & Gas Equipment & Services -- 0.2%
49,750 5.75 B+/B3 FR Dixie Acquisition Corp., Term Loan,
1/23/21 $ 49,962
-----------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.4%
99,500 4.00 BB-/Ba3 Seadrill Operating LP Initial Term
,
Loan, 2/14/21 $ 98,090
-----------------------------------------------------------------------------------------------------
Oil & Gas Exploration &
Production -- 0.4%
99,499 3.88 BB-/Ba2 Fieldwood Energy LLC, Closing Date
Loan, 9/25/18 $ 99,574
-----------
Total Energy $ 247,626
-----------------------------------------------------------------------------------------------------
MATERIALS -- 0.6%
Commodity Chemicals -- 0.1%
29,850 5.00 B+/B2 Nexeo Solutions LLC, Term Loan B3,
9/9/17 $ 29,850
-----------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.2%
49,743 5.00 B+/B3 Univar, Term B Loan, 2/14/17 $ 49,872
-----------------------------------------------------------------------------------------------------
Steel -- 0.1%
35,000 4.50 B/B3 Atkore International, Inc., Term Loan
(First Lien), 3/27/21 $ 34,847
-----------------------------------------------------------------------------------------------------
Paper Products -- 0.2%
49,750 5.25 B/B1 Coveris Holdings SA, USD Term
Loan, 4/14/19 $ 50,330
-----------
Total Materials $ 164,899
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.4%
Aerospace & Defense -- 0.4%
39,180 6.25 B+/Ba3 DynCorp International, Inc., Term
Loan, 7/7/16 $ 39,190
49,747 5.25 B/B2 Sequa Corp., Initial Term Loan, 6/19/17 48,768
24,500 3.25 BB-/Ba3 Wesco Aircraft Hardare Corp., Tranche B
Term Loan (First Lien), 2/24/21 24,286
-----------
$ 112,244
-----------
Total Capital Goods $ 112,244
-----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.4%
Trucking -- 0.4%
50,000 5.50 B/B1 Aegis Toxicology Corp., Tranche B Term
Loan (First Lien), 2/20/21 $ 50,500
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 21
Schedule of Investments | 8/31/14 (continued)
-----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-----------------------------------------------------------------------------------------------------
Trucking -- (continued)
49,750 8.00 CCC+/Ba3 YRC Worldwide, Inc., Initial Term
Loan, 2/12/19 $ 50,496
-----------
$ 100,996
-----------
Total Transportation $ 100,996
-----------------------------------------------------------------------------------------------------
MEDIA -- 0.2%
Broadcasting -- 0.1%
23,485 3.00 BB+/Ba1 CBS Outdoor Americas Capital llc,
Tranche B Term Loan (First Lien), 1/15/21 $ 23,326
-----------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.1%
24,844 6.50 CCC/B2 Deluxe Entertainment Services Group.,
Inc., Tranche B Term Loan (First Lien),
2/26/20 $ 21,800
-----------
Total Media $ 45,126
-----------------------------------------------------------------------------------------------------
RETAILING -- 0.1%
Automotive Retail -- 0.1%
30,000 4.00 BB-/B1 CS Intermediate Holdco 2 LLC, Term
Loan, 3/28/21 $ 29,906
-----------
Total Retailing $ 29,906
-----------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.3%
Agricultural Products -- 0.3%
74,623 4.50 B/B1 Arysta Lifescience SPC LLC, Initial Term
Loan (First Lien), 5/29/20 $ 74,726
-----------
Total Food, Beverage & Tobacco $ 74,726
-----------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL
PRODUCTS -- 0.4%
Personal Products -- 0.4%
75,000 7.75 CCC+/Caa2 Atrium Innovations, Inc., Tranche B Term
Loan (Second Lien), 7/29/21 $ 74,484
36,815 4.00 B/B2 Party City Holdings, Inc., 2014
Replacement Term Loan, 7/27/19 36,484
-----------
$ 110,968
-----------
Total Household & Personal Products $ 110,968
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.4%
Other Diversified Financial
Services -- 0.2%
34,913 4.50 B+/B1 Nord Anglia Education Finance LLC, Initial
Term Loan 3/21/21 $ 34,993
24,938 5.00 B/B1 SBP Holdings, Ltd., Term Loan (First
Lien), 3/24/21 25,083
-----------
$ 60,076
-----------------------------------------------------------------------------------------------------
Consumer Finance -- 0.2%
34,913 4.00 B+/Ba3 Transunion LLC, 2014 Term Loan 3/21/21 $ 34,834
-----------
Total Diversified Financials $ 94,910
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
-----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.1%
Systems Software -- 0.1%
36,908 5.50 B+/B1 SafeNet, Inc., Tranche B Term Loan,
2/28/20 $ 37,000
-----------
Total Software & Services $ 37,000
-----------------------------------------------------------------------------------------------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT -- 0.2%
Semiconductor Equipment -- 0.2%
40,000 3.50 BB+/Ba3 Emtegris, Inc., Term Loan B, 3/25/21 $ 39,717
-----------
Total Semiconductors &
Semiconductor Equipment $ 39,717
-----------------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Electric Utilities -- 0.2%
46,873 4.75 B+/Ba3 Atlantic Power LP Term Loan, 2/20/21
, $ 47,166
-----------
Total Utilities $ 47,166
-----------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE
LOAN INTERESTS
(Cost $1,106,043) $ 1,105,284
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------------
EXCHANGE TRADED FUNDS -- 4.4%
11,921 iShares European Property Yield UCITS ETF $ 484,715
16,217 SPDR S&P Regional Banking ETF 631,652
-----------
$ 1,116,367
-----------------------------------------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUNDS
(Cost $1,133,927) $ 1,116,367
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Principal
Amount ($)
-----------------------------------------------------------------------------------------------------
TEMPORARY CASH
INVESTMENT -- 5.9%
Repurchase Agreement -- 5.9%
1,500,000 RBC Securities, Inc., 0.05%, dated
8/29/14, repurchase price of
$1,500,000 plus accrued interest on
9/2/14 collateralized by the following:
$176,623 Freddie Mac Giant, 3.5-4.0%,
9/1/42-3/1/44
$1,001 Federal National Mortgage
Association (ARM), 2.671%, 7/1/44
$597,983 Federal National Mortgage
Association, 3.5-4.0%, 3/1/26-8/1/42
$754,393 Government National
Mortgage Association, 3.0%, 7/20/42 $ 1,500,000
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 23
Schedule of Investments | 8/31/14 (continued)
-----------------------------------------------------------------------------------------------------
Principal
Amount ($) Value
-----------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,500,000) $ 1,500,000
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------------
PURCHASED CREDIT DEFAULT
SWAPTION -- 0.0%+
1,250,000 MARKIT CME North America High Yield
Index 22.V1 Fixed, 9/17/14, 106%
(SWP 4/11/14 Right to pay fixed) $ 3,016
-----------------------------------------------------------------------------------------------------
TOTAL PURCHASED SWAPTION
(Premiums paid $34,125) $ 3,016
-----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN
SECURITIES -- 94.6%
(Cost $24,074,363) (a) $24,133,041
-----------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 5.4% $ 1,364,844
-----------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $25,497,885
=====================================================================================================
+ Amount rounds to less than 0.1%.
NR Not rated by either S&P or Moody's.
(Perpetual) Security with no stated maturity date.
(Step) Step up bond issued with an initial coupon rate which converts to a
higher rate at a later date.
(Cat Bond) Catastrophe bond is a high-yield debt instrument that is
usually insurance linked and meant to raise money in case of a
catastrophe.
REMICS Real Estate Mortgage Investment Conduits.
** Senior 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 (London InterBank Offered
Rate), (ii) the prime rate offered by one or more major United
States banks, (iii) the certificate of deposit rate or (iv) other
base lending rates used by commercial lenders. The rate shown is the
coupon rate at period end.
(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 August 31, 2014, the value of these securities
amounted to $4,900,339 or 19.2% of total net assets.
(a) At August 31, 2014, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $24,077,438 was as
follows:
Aggregate gross unrealized appreciation for all investments in which there
is an excess of value over tax cost $ 248,174
Aggregate gross unrealized depreciation for all investments in which there
is an excess of tax cost over value (192,571)
--------
Net unrealized appreciation $ 55,603
========
(b) Debt obligation with a variable interest rate. Rate shown is rate at
end of period.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
(c) Security issued with a zero coupon. Income is earned through
accretion of discount.
(d) All or a portion of this security has been pledged in connection
with open futures and swap contracts.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EUR Euro
Purchases and sales of securities (excluding temporary cash investments) for the
period ended August 31, 2014 aggregated $19,917,160 and $5,359,400,
respectively.
CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
------------------------------------------------------------------------------------------------------------
(250,000) Citibank NA Caesars 5.00% 12/20/16 $ 126,299 $ 32,346
Entertainment
Operating Co.
(765,000) Citibank NA Markit CDX North 5.00% 12/20/18 (151,470) 2,542
America High
Yield Index
(600,000) Citibank NA Devon Energy Corp. 1.00% 9/20/19 (16,180) 1,299
(250,000) Citibank NA JPMorgan Chase 1.00% 9/20/19 (6,163) 137
& Co.
(32,000) Citibank NA Russian Federation 1.00% 9/20/19 1,266 972
(780,000) J.P. Morgan Markit CDX North 1.00% 6/20/19 (15,901) (1,281)
Securities LLC America Investment
Grade Index
EUR (1,375,000) J.P. Morgan Markit iTraxx Europe 5.00% 6/20/19 (200,148) (22,320)
Securities LLC Crossover Index
EUR (2,600,000) J.P. Morgan Markit iTraxx Europe 1.00% 6/20/19 (45,676) (24,691)
Securities LLC Senior Financial Index
(125,000) JP Morgan Bank of America Corp. 1.00% 9/20/19 (2,315) (82)
Chase
Bank NA
EUR (375,000) JP Morgan Glencore Finance 1.00% 9/20/19 10,799 (9,652)
Chase Europe SA
Bank NA
(125,000) JP Morgan Pulte Homes, Inc. 5.00% 9/20/19 (20,760) (716)
Chase
Bank NA
(125,000) JP Morgan Standard Pacific 5.00% 9/20/19 (17,672) (897)
Chase Corp.
Bank NA
(250,000) Morgan Radioshack Corp. 5.00% 6/20/17 123,750 14,749
Stanley & Co.
International Plc
(125,000) Morgan D.R. Horton, Inc. 1.00% 9/20/19 3,852 (178)
Stanley & Co.
International Plc
(125,000) Morgan Lennar Corp. 5.00% 9/20/19 (18,845) 131
Stanley & Co.
International Plc
------------------------------------------------------------------------------------------------------------
$(229,164) $ (7,641)
============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 25
Schedule of Investments | 8/31/14 (continued)
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Paid Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Received) (Depreciation)
------------------------------------------------------------------------------------------------------------
125,000 Citibank NA Radioshack Corp. 5.00% C 9/20/14 $ (5,937) $ (7,676)
250,000 Citibank NA Clear Channel 5.00% CCC- 12/20/14 564 2,896
Communications,
Inc.
125,000 Citibank NA Government of 5.00% CCC 12/20/14 (15,400) 12,865
Ukraine
125,000 Citibank NA JC Penny Corp., 5.00% CCC- 12/20/14 (2,500) 5,368
Inc.
250,000 Citibank NA Markit CDX North 5.00% NA(3) 12/20/14 (7,695) 9,800
America
Investment Grade
Index
125,000 Citibank NA Radioshack Corp. 5.00% C 12/20/14 (10,000) (28,732)
250,000 Citibank NA Toys R Us, Inc. 5.00% CCC 12/20/14 (5,000) 6,660
250,000 Citibank NA MBIA, Inc. 5.00% NA 3/20/15 (625) 2,160
250,000 Citibank NA Sears Roebuck 5.00% CCC+ 3/20/15 (16,250) 10,186
Acceptance Corp.
250,000 Citibank NA Travelport LLC 5.00% NR 3/20/15 -- 3,769
250,000 Citibank NA Caesars 5.00% C 6/20/15 (27,500) (86,651)
Entertainment
Operating Co.
EUR 375,000 Citibank NA Markit iTraxx 5.00% NA(3) 6/20/15 (5,154) 14,165
Europe Index
EUR 1,250,000 Citibank NA Markit iTraxx 1.00% NA(3) 6/20/19 (108,271) 12,633
Europe Index
EUR 125,000 Citibank NA Abengoa SA 5.00% B 9/20/19 (1,387) 6,987
EUR 250,000 Citibank NA Alcatel Lucent 5.00% B 9/20/19 21,476 9,620
EUR 250,000 Citibank NA Altice Finco SA 5.00% B- 9/20/19 23,185 611
EUR 250,000 Citibank NA Ardagh Packaging 5.00% CCC+ 9/20/19 4,242 15,202
Finance plc
EUR 250,000 Citibank NA Astaldi SpA 5.00% B+ 9/20/19 7,126 10,912
260,000 Citibank NA Hertz Corp. 5.00% B 9/20/19 31,592 1,013
EUR 250,000 Citibank NA Ineos Group 5.00% B- 9/20/19 19,650 (1,158)
Holdings SA
260,000 Citibank NA MGIC Investment 5.00% B 9/20/19 31,724 606
Corp.
260,000 Citibank NA Radian Group, 5.00% B- 9/20/19 27,138 4,138
Inc.
EUR 250,000 Citibank NA Stena AB 5.00% BB 9/20/19 22,699 4,272
EUR 250,000 Citibank NA Unilabs 5.00% B 9/20/19 (13,620) (3,330)
SubHolding AB
EUR 125,000 Citibank NA Unilabs 5.00% B 9/20/19 (13,411) 4,936
SubHolding AB
The accompanying notes are an integral part of these financial statements.
26 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION (continued)
------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Paid Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Received) (Depreciation)
------------------------------------------------------------------------------------------------------------
EUR 250,000 Citibank NA Wind Acquistion 5.00% NR 9/20/19 $ 23,844 $ 10,122
Finance SA
EUR 250,000 JP Morgan Norske 5.00% CCC 3/20/15 (20,417) 18,527
Chase Bank Skogindustrier
NA ASA
EUR 250,000 JP Morgan Abengoa SA 5.00% B 9/20/19 16,961 (5,758)
Chase Bank
NA
EUR 375,000 JP Morgan ArcelorMittal SA 1.00% BB+ 9/20/19 (34,183) 6,409
Chase Bank
NA
EUR 240,000 JP Morgan Vougeot Bidco plc 5.00% B 9/20/19 25,771 (2,362)
Chase Bank
NA
250,000 Morgan Forest Oil Corp. 5.00% CCC 3/20/15 (3,750) 5,531
Stanley & Co.
International
plc
125,000 Morgan Sears Roebuck 5.00% CCC+ 3/20/15 (5,625) 2,593
Stanley & Co. Acceptance Corp.
International
plc
------------------------------------------------------------------------------------------------------------
$ (40,753) $ 46,314
============================================================================================================
(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) Based on Standard & Poor's rating of the issuer.
(3) Payment is based on a percentage of the index. Referenced indices are
comprised of a number of individual issuers.
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 27
Schedule of Investments | 8/31/14 (continued)
INTEREST RATE SWAP AGREEMENTS
------------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Pay / Floating Fixed Expiration Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
------------------------------------------------------------------------------------------------------------
1,661,212 J.P. Morgan Receive Russian Ruble 1.801% 7/18/19 $ (8,393)
Securities LLC 3 Month
5,292,463 J.P. Morgan Receive Russian Ruble 1.819% 7/24/19 (28,936)
Securities LLC 3 Month
920,860 J.P. Morgan Receive Russian Ruble 1.819% 8/7/19 (4,088)
Securities LLC 3 Month
1,664,87 J.P. Morgan Receive Russian Ruble 2.660% 8/7/24 (28,513)
Securities LLC 3 Month
EUR 1,005,016 J.P. Morgan Receive EURIBOR 1.089% 9/2/24 130
Securities LLC 6 Month
------------------------------------------------------------------------------------------------------------
$(69,800)
============================================================================================================
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
CREDIT DEFAULT SWAPTION SOLD
----------------------------------------------------------------------------------------------------
Notional Expiration
Principal ($) Description Counterparty Coupon Date Value
----------------------------------------------------------------------------------------------------
(2,500,000) Markit CDX North America Citibank NA 103 9/17/14 $(707)
High Yield Index
----------------------------------------------------------------------------------------------------
(Premiums Received $38,750) $(707)
====================================================================================================
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed 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
risk, 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.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
are categorized as Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
The following is a summary of the inputs used as of August 31, 2014, in valuing
the Fund's assets:
---------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 2,066,603 $ -- $ 2,066,603
Preferred Stocks -- 276,800 -- 276,800
Convertible Preferred Stocks 234,200 -- -- 234,200
Common Stocks 1,304,902 -- -- 1,304,902
Asset Backed Securities -- 512,408 -- 512,408
Collateralized Mortgage Obligations -- 6,408,196 -- 6,408,196
Corporate Bonds -- 1,026,725 -- 1,026,725
U.S. Government and
Agency Obligations -- 299,998 -- 299,998
Foreign Government Bonds -- 8,278,542 -- 8,278,542
Senior Floating Rate Loan Interests -- 1,105,284 -- 1,105,284
Exchange Traded Funds 1,116,367 -- -- 1,116,367
Temporary Cash Investments -- 1,500,000 -- 1,500,000
Purchased Swaption -- 3,016 -- 3,016
---------------------------------------------------------------------------------------------
Total $ 2,655,469 $21,477,572 $ -- $24,133,041
=============================================================================================
Other Financial Instruments
Unrealized Appreciation on
Credit Default Swaps $ -- $ 38,673 $ -- $ 38,673
Unrealized Appreciation on
Interest Rate Swaps -- (69,800) -- (69,800)
Unrealized Appreciation on
Written Swaptions -- 38,043 -- 38,043
Unrealized Depreciation on
Futures Contracts (52,564) -- -- (52,564)
Unrealized Appreciation on
forward foreign currency contracts -- 523,188 -- 523,188
---------------------------------------------------------------------------------------------
Total Other Financial Instruments $ (52,564) $ 530,104 $ -- $ 477,540
=============================================================================================
Transfers are calculated based on beginning period values. During the period
ended August 31, 2014, there were no transfers between Levels 1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 29
Statement of Assets and Liabilities | 8/31/14
ASSETS:
Investment in securities, at value (cost $24,074,363) $24,133,041
Futures collateral 355,725
Swap collateral 560,723
Foreign currencies, at value (cost $5,374,228) 5,145,592
Receivables --
Investment securities sold 122,212
Dividends 7,450
Interest 55,581
Due from Pioneer Investment Management, Inc. 47,428
Net unrealized appreciation on forward foreign currency contracts 523,188
Other assets 323,402
------------------------------------------------------------------------------------
Total assets $31,274,342
====================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 5,070,982
Trustee fees 1,060
Futures payable 344
Variation margin 1,414
Due to custodian 245,617
Net unrealized depreciation on swap contracts 31,127
Net unrealized depreciation on futures contracts 52,564
Written swaptions (premiums received $38,750) 707
Credit default swaps, net premiums received 269,917
Due to affiliates 25,332
Accrued expenses 77,393
------------------------------------------------------------------------------------
Total liabilities $ 5,776,457
====================================================================================
NET ASSETS:
Paid-in capital $25,367,795
Accumulated net investment loss (15,210)
Accumulated net realized loss on investments, foreign currency
transactions, futures and swap contracts (384,289)
Net unrealized appreciation on investments 58,678
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 516,559
Net unrealized appreciation on written swaptions 38,043
Net unrealized depreciation on futures contracts (52,564)
Net unrealized depreciation on swap contracts (31,127)
------------------------------------------------------------------------------------
Total net assets $25,497,885
====================================================================================
NET ASSET VALUE PER SHARE: (a)
(No par value, unlimited number of shares authorized)
Class A (based on $8,604,217/855,959 shares) $ 10.05
Class C (based on $8,399,309/839,743 shares) $ 10.00
Class Y (based on $8,494,359/843,613 shares) $ 10.07
MAXIMUM OFFERING PRICE:
Class A ($10.05/95.5%) $ 10.52
====================================================================================
(a) The Fund commenced operations on December 30, 2013.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
Statement of Operations
For the Period from 12/30/13 (Commencement of Operations) to 8/31/14
INVESTMENT INCOME:
Interest $ 175,905
Dividends 39,227
--------------------------------------------------------------------------------------
Total investment income $ 215,132
--------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 177,075
Distribution fees
Class A 14,144
Class C 55,861
Transfer Agent fees
Class A 232
Class C 137
Class Y 101
Shareholder communications expense 262
Administrative reimbursement 14,010
Custodian fees 36,653
Registration fees 40,070
Professional fees 99,411
Printing expense 30,296
Fees and expenses of nonaffiliated Trustees 4,352
Pricing fees 9,638
Miscellaneous 6,983
--------------------------------------------------------------------------------------
Total expenses $ 489,225
--------------------------------------------------------------------------------------
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (199,985)
--------------------------------------------------------------------------------------
Net expenses $ 289,240
--------------------------------------------------------------------------------------
Net investment loss $ (74,108)
--------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP CONTRACTS, WRITTEN SWAPTIONS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (257,873)
Futures contracts (187,785)
Swap contracts (16,824)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 111,146 $ (351,336)
--------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 58,678
Futures contracts (52,564)
Swap contracts (31,127)
Written swaptions 38,043
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 516,559 $ 529,589
--------------------------------------------------------------------------------------
Net gain on investments, futures contracts, swap contracts,
written swaptions and foreign currency transactions $ 178,253
--------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 104,145
======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 31
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------
12/31/13 (a)
to 8/31/14
-----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment loss $ (74,108)
Net realized gain (loss) on investments, futures contracts, swap contracts
and foreign currency transactions (351,336)
Change in net unrealized appreciation (depreciation) on investments,
futures contracts, swap contracts, written swaptions and foreign
currency transactions 529,589
-----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 104,145
-----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS: (b)
Net proceeds from sale of shares $ 25,393,752
Reinvestment of distributions --
Cost of shares repurchased (12)
-----------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 25,393,740
-----------------------------------------------------------------------------------------
Net increase in net assets $ 25,497,885
NET ASSETS:
Beginning of period $ --
-----------------------------------------------------------------------------------------
End of period $ 25,497,885
-----------------------------------------------------------------------------------------
Net investment loss $ (15,210)
=========================================================================================
(a) Class A, Class C and Class Y shares were first publicly offered on December
31, 2013.
(b) At August 31, 2014, PIM owned 98.0% of the value of the outstanding shares
of Pioneer Long/Short Global Bond Fund.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
--------------------------------------------------------------------------------
'14 Shares '14 Amount
--------------------------------------------------------------------------------
Class A*
Shares sold 855,960 $8,559,806
Reinvestment of distributions -- --
Less shares repurchased (1) (12)
--------------------------------------------------------------------------------
Net increase 855,959 $8,559,794
================================================================================
Class C*
Shares sold 839,743 $8,397,613
Reinvestment of distributions -- --
Less shares repurchased -- --
--------------------------------------------------------------------------------
Net increase 839,743 $8,397,613
================================================================================
Class Y*
Shares sold 843,613 $8,436,333
Reinvestment of distributions -- --
Less shares repurchased -- --
--------------------------------------------------------------------------------
Net increase 843,613 $8,436,333
================================================================================
* Class A, Class C and Class Y shares were first publicly offered on December
31, 2013.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 33
Financial Highlights
--------------------------------------------------------------------------------
12/30/13
to 8/31/14
--------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.00
--------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.02)
Net realized and unrealized gain on investments 0.07
--------------------------------------------------------------------------------
Net increase in net assets from investment operations $ 0.05
--------------------------------------------------------------------------------
Net asset value, end of period $ 10.05
================================================================================
Total return* 0.50%***
Ratio of net expenses to average net assets 1.55%**
Ratio of net investment loss to average net assets (0.27)%**
Portfolio turnover rate 65%**
Net assets, end of period (in thousands) $ 8,604
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 2.74%**
Net investment loss (1.46)%**
================================================================================
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
--------------------------------------------------------------------------------
12/30/13
to 8/31/14
--------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.00
--------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.07)
Net realized and unrealized gain on investments 0.07
--------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.00
--------------------------------------------------------------------------------
Net asset value, end of period $ 10.00
================================================================================
Total return* 0.00%***
Ratio of net expenses to average net assets 2.30%**
Ratio of net investment loss to average net assets (1.03)%**
Portfolio turnover rate 65%**
Net assets, end of period (in thousands) $ 8,399
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 3.48%**
Net investment loss (2.21)%**
================================================================================
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 35
Financial Highlights (continued)
--------------------------------------------------------------------------------
12/30/13
to 8/31/14
--------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.00
--------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.00)(a)
Net realized and unrealized gain on investments 0.07
--------------------------------------------------------------------------------
Net increase in net assets from investment operations $ 0.07
--------------------------------------------------------------------------------
Net asset value, end of period $ 10.07
================================================================================
Total return* 0.70%***
Ratio of net expenses to average net assets 1.30%**
Ratio of net investment income to average net assets (0.02)%**
Portfolio turnover rate 65%**
Net assets, end of period (in thousands) $ 8,494
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 2.48%**
Net investment loss (1.20)%**
================================================================================
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
*** Not Annualized.
(a) Amount rounds to less than $0.01 or $(0.01) per share.
The accompanying notes are an integral part of these financial statements.
36 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
Notes to Financial Statements | 8/31/14
1. Organization and Significant Accounting Policies
Pioneer Long/Short Global Bond Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a non-diversified,
open-end management investment company. The Fund's investment objective is to
seek total return.
The Fund offers three classes of shares designated as Class A, Class C, and
Class Y shares. Class A, Class C and Class Y shares were first publicly offered
on December 31, 2013. 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 the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 37
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Senior
floating rate loan interests (senior loans) 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 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. Fixed income securities with
remaining maturity of more than sixty days are valued at 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. Valuations may be supplemented by dealers
and other sources, as required. Equity securities that have traded on an
exchange are valued at 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. Short-term
fixed income securities with remaining maturities of sixty days or less
generally are valued at amortized cost. Shares of money market mutual funds
are valued at such funds' net asset value.
Trading in foreign 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.
Securities or loan interests for which independent pricing services 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 Pioneer Investment
Management, Inc. (PIM), the Fund's investment adviser, pursuant to
procedures adopted by the Fund's Board of Trustees. PIM's fair valuation
team uses fair value methods approved by 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
38 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
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. PIM'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.
At August 31, 2014, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services).
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 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.
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 is recorded on the
accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in the market price of those securities but are included
with the net realized and unrealized gain or loss on investments.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 39
C. 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
August 31, 2014 was $355,725. Subsequent payments for futures contracts
("variation margin") are paid or received by the Fund, depending on the
daily fluctuation in the value of the contracts, and are recorded by the
Fund as unrealized appreciation or depreciation. When the contract is
closed, the Fund realizes a gain or loss equal to the difference between the
opening and closing value of the contract as well as any fluctuation in
foreign currency exchange rates where applicable. The use of futures
contracts involves to varying degrees, element of market, interest rate,
currency exchange rate and counterparty risks, which may exceed the amount
recognized by the Fund. Changes in value of the contracts may not directly
correlate to the changes in value of the underlying securities. The average
value of contracts open during the period ended August 31, 2014 was
$15,324,132.
At August 31, 2014, open futures contracts were as follows:
------------------------------------------------------------------------------
Number of
Contracts Settlement Unrealized
Type Long/(Short) Month Value (Depreciation)
------------------------------------------------------------------------------
F/C Euro BTP future 10 12/14 $ 1,698,810 $ (1,551)
F/C 90-Day Euro (77) 6/17 (18,786,075) (21,278)
F/C U.S. 5 year note (12) 9/14 (1,436,625) (1,500)
F/C S&P500 (13) 9/14 (1,300,910) (28,235)
------------------------------------------------------------------------------
Total $(19,824,800) $(52,564)
==============================================================================
D. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation is
recorded in the Fund's financial statements. The Fund records realized gains
and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
40 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
August 31, 2014, the Fund did not accrue any interest or penalties with
respect to uncertain tax positions, which, if applicable, would be recorded
as an income tax expense in the Statement of Operations.
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. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences. At
August 31, 2014, the Fund reclassified $58,898 to decrease accumulated net
investment loss, $32,953 to increase accumulated net realized loss on
investments, foreign currency transactions, swap contracts and futures
contracts and $25,945 to decrease paid-in capital to reflect permanent
book/tax differences. These adjustments have no impact on the net assets or
results of operations.
At August 31, 2014, the Fund was permitted to carry forward $83,476 of
long-term losses and $353,377 of short-term losses without limitation.
There were no distributions paid during the fiscal year ended August 31,
2014.
The following shows the components of distributable earnings (losses) on a
federal income tax basis at August 31, 2014:
--------------------------------------------------------------------------
2014
--------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 517,080
Capital loss carryforward (436,853)
Unrealized appreciation 49,863
--------------------------------------------------------------------------
Total $ 130,090
==========================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses or wash sales, adjustments
relating to catastrophe bonds and the mark to market of forward, swap and
futures contracts.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 41
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $194 in underwriting commissions on the sale of Class A shares during
the period ended August 31, 2014.
G. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), 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).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
H. Risks
When interest rates rise, the prices of fixed-income securities in the Fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise. Investments in the
Fund are subject to possible loss due to the financial failure of underlying
issues and their ability to meet their debt obligations. 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.
I. Credit Default Swaption Writing
The Fund may write put and covered call swaptions on portfolio securities in
order to attempt to hedge against changes in the value of portfolio
securities or to seek to increase total return. When a swaption 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 swaption.
When the Fund writes an swaption, an amount equal to the premium received by
the Fund is recorded
42 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
as a liability and is subsequently adjusted to the current value of the
swaption written. Premiums received from writing swaptions that expire
unexercised are treated by the Fund on the expiration date as realized gains
from investments. 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, or, if the premium is less than the
amount paid for the closing purchase transaction, as a realized loss. If a
call swaption 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 a swaption bears the market risk of an
unfavorable change in the price of the security underlying the written
swaption.
The average value of contracts open during the period ended August 31, 2014
was $8,014.
The Fund held one written swaption contract that was open at August 31,
2014. If the swaption was exercised at August 31, 2014, the maximum amount
the Fund would have been required to pay was $707. Written swaption
contracts outstanding at period end are listed at the end of the Fund's
schedule of investments.
Transactions in written swaptions for the period ended August 31, 2014 are
summarized as follows:
---------------------------------------------------------------------------
Number of Premiums
Contracts Received
---------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options opened (2,500,000) 38,750
Options exercised -- --
Options closed -- --
Options expired -- --
---------------------------------------------------------------------------
Options outstanding at end of period (2,500,000) $ 38,750
===========================================================================
J. Purchased Credit Default Swaptions
The Fund may purchase put and call swaptions in order to attempt to hedge
against changes in the value of portfolio securities or to seek to increase
total return. Purchased call and put swaptions 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 swaption, the
premium paid by the Fund is included in the Statement of Assets and
Liabilities as an investment. All premiums are marked-to-market daily, and
any unrealized gains or losses are recorded in the Fund's financial
statements. As the purchaser of an index
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 43
swaption, 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
swaption (in the case of a put) or equal to any appreciation in the value of
the index over the strike price of the swaption (in the case of a call) as
of the valuation date of the swaption. Premiums paid for purchased calls and
put swaptions which have expired are treated as realized losses on
investments in the Statement of Operations. Upon the exercise or closing of
a purchased put swaption, 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 swaption, the premium is added to the cost of
the security or financial instrument. The risk associated with purchasing
swaptions is limited to the premium originally paid. The average value of
contracts open during the period ended August 31, 2014 was $9,301. Purchased
swaptions open at period end are listed at the end of the Fund's Schedule of
Investments.
K. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may 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.
When the Fund enters into a credit default swap contract, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the right to receive a contingent payment. An upfront payment
made by the Fund, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
44 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Payments received or made as a result of a credit event or upon
termination of the contract are recognized, net of the appropriate amount of
the upfront payment, as realized gains or losses in the Statement of
Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Open credit default swap contracts at August 31, 2014 are listed in the
Schedule of Investments. The average value of swap contracts open during the
period ended August 31, 2014 was $213,498.
L. Interest Rate Swap Contracts
The Fund may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance its income. Pursuant to the
interest rate swap agreement, the Fund negotiates with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly basis.
Periodic payments received or paid by the Fund are recorded as realized
gains or losses in the Statement of Operations. Interest rate swap contracts
are marked-to-market daily using valuations supplied by independent sources
and the change in value, if any, is recorded as unrealized appreciation or
depreciation in the Statement of Assets and Liabilities. Interest rate swap
contracts are subject to counterparty risk and movements in interest rates.
Open interest rate swap contracts at August 31, 2014 are listed in the
Schedule of Investments. The average value of interest swap contracts open
during the period ended August 31, 2014 was $25,155.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 45
M. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. PIM is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at an annual rate of 1.05% of
the average daily net assets of the Fund up to $1 billion and 0.95% of the
Fund's average daily net assets over $1 billion of the Fund. For the period
ending August 31, 2014, the effective management fee was equivalent to 1.05% of
the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.55%, 2.30% and 1.30% of the average daily
net assets attributable to Class A, Class C and Class Y shares, respectively.
These expense limitations are in effect through January 1, 2015. Fees waived and
expenses reimbursed during the period ended August 31, 2014 are reflected on the
Statement of Operations. Fees and expenses of other investment companies in
which the Fund may invest are not included in the expense limitations noted
above. There can be no assurance that PIM 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
$24,305 in management fees, administrative costs and certain other
reimbursements payable to PIM at August 31, 2014.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
46 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the period ended August 31, 2014, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $195
Class C 33
Class Y 34
--------------------------------------------------------------------------------
Total $262
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $128 in transfer agent fees and out-of-pocket reimbursements
payable from PIMSS at August 31, 2014.
4. Distribution Plan
The Fund has adopted a Distribution 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 PFD 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 PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $1,155 in distribution fees payable to
PFD at August 31, 2014.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSC are paid to PFD. For the
period ended August 31, 2014, there were no CDSCs paid to PFD.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 47
5. Forward Foreign Currency Contracts
At August 31, 2014, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the period ended August 31, 2014 was $16,213,471.
Open forward foreign currency contracts at August 31, 2014 were as follows:
----------------------------------------------------------------------------------------------------------
Net Net Unrealized
Contracts to In Exchange Settlement US $ Value Appreciation
Currency Deliver For Date at 8/31/14 (Depreciation)
----------------------------------------------------------------------------------------------------------
AUD (Australian Dollar) (205,635) $ (189,005) 9/4/14 $ (191,916) $ (2,911)
CAD (Canadian Dollar) (260,941) (239,057) 9/4/14 (240,051) (994)
CAD (Canadian Dollar) (67,567) (63,531) 10/14/14 (62,099) 1,432
CAD (Canadian Dollar) (67,997) (63,675) 10/10/14 (62,501) 1,174
CHF (Swiss Franc) (337,331) (376,649) 9/4/14 (367,385) 9,264
CLP (Chilean Peso) (196,641,497) (354,277) 9/4/14 (335,187) 19,090
CZK (Czech Koruna) (9,965,749) (494,592) 9/4/14 (472,002) 22,590
EURO (European Euro) (6,084,371) (8,365,331) 9/15/14 (7,993,887) 371,444
EURO (European Euro) (646,192) (879,367) 9/4/14 (848,940) 30,427
EURO (European Euro) 1,085,800 1,462,366 9/15/14 1,426,567 (35,799)
EURO (European Euro) (805,356) (1,094,002) 9/15/14 (1,058,109) 35,893
EURO (European Euro) (1,099,832) (1,481,348) 10/24/14 (1,445,372) 35,976
EURO (European Euro) (671,350) (899,025) 10/24/14 (882,271) 16,754
GBP (British Pound Sterling) (224,471) (375,812) 9/4/14 (371,901) 3,911
HUF (Hungarian Forint) (54,189,402) (242,371) 9/4/14 (225,920) 16,451
IDR (Indonesian Rupiah) 2,192,796,750 183,268 9/4/14 187,548 4,280
INR Indian Rupee 26,447,926 440,872 9/4/14 437,011 (3,861)
JPY (Japanese Yen) (98,226,898) (963,003) 9/4/14 (943,632) 19,371
KRW (South Korean Won) 133,749,911 130,001 9/4/14 131,882 1,881
MXN (Mexican Peso) 4,907,548 377,306 9/4/14 375,356 (1,950)
MXN (Mexican Peso) 826,077 63,531 10/14/14 63,016 (515)
NOK (Norwegian Krone) 1,498,539 248,939 9/4/14 241,645 (7,294)
NZD (New Zealand Dollar) 745,626 626,460 9/4/14 623,135 (3,325)
NZD (New Zealand Dollar) (372,803) (321,614) 9/4/14 (311,559) 10,055
PLN (Polish Zloty) 761,742 248,850 9/4/14 237,713 (11,137)
RUB(Russian Ruble) 5,940,086 166,856 9/4/14 160,043 (6,813)
SEK (Swedish Krona) 103 15 9/4/14 15 --
SGD (Singapore Dollar) (469,556) (373,905) 9/4/14 (375,930) (2,025)
TRY (Turkish Lira) (274,929) (127,940) 9/4/14 (127,136) 804
TWD (New Taiwan Dollar) (7,284,775) (242,850) 9/4/14 (243,835) (985)
----------------------------------------------------------------------------------------------------------
$ 523,188
==========================================================================================================
48 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
6. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the period ended August 31, 2014, the Fund's expenses
were not reduced under such arrangements.
7. Assets and Liabilities Offsetting
Financial instruments subject to an enforceable master netting agreement have
been offset on the Statement of Assets and Liabilities. The following charts
show gross assets and liabilities of the Fund as of August 31, 2014.
-----------------------------------------------------------------------------------------------
Assets:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented in -------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received* Amount
----------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $600,797 $ (77,609) $523,188 $ -- $ -- $523,188
Written swaptions -- -- -- -- -- --
Swap contracts 234,287 (234,287) -- -- -- --
-----------------------------------------------------------------------------------------------
$835,084 $(311,896) $523,188 $ -- $ -- $523,188
===============================================================================================
-----------------------------------------------------------------------------------------------
Liabilities:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Liabilities Assets and Liabilities
Gross Statement Presented in -------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Pledged* Amount
-----------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 77,609 $ (77,609) $ -- $ -- $ -- $ --
Written swaptions 707 -- 707 -- -- 707
Swap contracts 265,414 (234,287) 31,127 -- (31,127) --
-----------------------------------------------------------------------------------------------
$343,730 $(311,896) $ 31,834 $ -- $(31,127) $707
===============================================================================================
* 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.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 49
8. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of August 31, 2014 were as follows:
---------------------------------------------------------------------------------------------
Derivatives not
accounted for as Asset Derivatives 2014 Liabilities Derivatives 2014
hedging instruments ---------------------------- ----------------------------
under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
---------------------------------------------------------------------------------------------
Forward Foreign Net unrealized Net unrealized
Currency Contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $523,188 currency contracts $ --
Futures Contracts* Net unrealized Net unrealized
appreciation on depreciation on
futures contracts -- futures contracts 52,564
Written Swaptions Net unrealized Net unrealized
appreciation on depreciation on
written swaptions -- written swaptions 707
Swap Contracts Net unrealized Net unrealized
appreciation on depreciation on
swap contracts -- swap contracts 31,127
---------------------------------------------------------------------------------------------
Total $523,188 $84,398
=============================================================================================
* Reflects unrealized appreciation (depreciation) of futures contracts (see
Note 1C). The current day's variation margin is disclosed on the Statement
of Assets and Liabilities.
50 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
The effect of derivative instruments on the Statement of Operations for the
period ended August 31, 2014 was as follows:
-------------------------------------------------------------------------------------------------
Change in
Derivatives not Realized Unrealized
accounted for as Gain or Appreciation
hedging instruments Loss on (Depreciation)
under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification On Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
-------------------------------------------------------------------------------------------------
Futures Contracts Net realized gain (loss) on
futures contracts $(187,785)
Futures Contracts Change in unrealized appreciation
(depreciation) on futures contracts $(52,564)
Written Swaptions Change in unrealized appreciation
(depreciation) on written swaptions $ 38,043
Forward Foreign Net realized gain (loss) on forward
Currency Contracts foreign currency contracts $ 143,319
Forward Foreign Change in unrealized appreciation
Currency Contracts (depreciation) on forward foreign
currency contracts $523,188
Swap Contracts Net realized gain (loss) on
swap contracts $ (16,824)
Swap Contracts Change in unrealized appreciation
(depreciation) on swap contracts $(31,127)
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 51
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V and the
Shareowners of Pioneer Long/Short Global Bond Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Long/Short Global Bond Fund (the "Fund"), one of the portfolios constituting
Pioneer Series Trust V, including the schedule of investments, as of August 31,
2014, and the related statements of operations and changes in net assets, and
the financial highlights for the period December 30, 2013 (commencement of
operations) through August 31, 2014. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audit.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of August 31, 2014, by correspondence with the custodian
and brokers and agent banks; where replies were not received from brokers and
agent banks, we performed other auditing procedures. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Long/Short Global Bond Fund as of August 31, 2014, and the results of
its operations, the changes in its net assets, and the financial highlights for
the period December 30, 2013, (commencement of operations) through August 31,
2014, in conformity with accounting principles generally accepted in the United
States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
October 29, 2014
52 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
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 27.04%.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 53
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least the past five years. Trustees who are interested
persons of the Fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the Fund are
referred to as Independent Trustees. Each of the Trustees serves as a Trustee of
each of the 53 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
54 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
Independent Trustees
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (63) Trustee since 2013. Private investor (2004-2008 and Director, Broadridge Financial
Chairman of the Board Serves until a 2013-present); Chairman (2008 - Solutions, Inc. (investor
and Trustee successor trustee is 2013) and Chief Executive Officer communications and securities
elected or earlier (2008 - 2012), Quadriserv, Inc. processing provider for financial
retirement or removal. (technology products for securities services industry) (2009 - present);
lending industry); and Senior Director, Quadriserv, Inc. (2005 -
Executive Vice President, The Bank 2013); and Commissioner, New Jersey
of New York (financial and State Civil Service Commission (2011
securities services) (1986 - 2004) - present)
--------------------------------------------------------------------------------------------------------------------------------
David R. Bock (70) Trustee since 2013. Managing Partner, Federal City Director of Enterprise Community
Trustee Serves until a Capital Advisors (corporate advisory Investment, Inc. (privately held
successor trustee is services company) (1997 - 2004 and affordable housing finance company)
elected or earlier 2008 - present); Interim Chief (1985 - 2010); Director of Oxford
retirement or removal. Executive Officer, Oxford Analytica, Analytica, Inc. 2008 - present);
Inc. (privately held research and Director of The Swiss (Helvetia Fund,
consulting company) (2010); Inc. (closed-end fund) (2010 -
Executive Vice President and Chief present); and Director of New York
Financial Officer, I-trax, Inc. Mortgage Trust (publicly traded
(publicly traded health care mortgage REIT) (2004 - 2009, 2012 -
services company) (2004 - 2007); and present)
Executive Vice President and Chief
Financial Officer, Pedestal Inc.
(internet-based mortgage trading
company) (2000 - 2002)
--------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (70) Trustee since 2013. William Joseph Maier Professor of Trustee, Mellon Institutional Funds
Trustee Serves until a Political Economy, Harvard Investment Trust and Mellon
successor trustee is University (1972 - present) Institutional Funds Master Portfolio
elected or earlier (oversaw 17 portfolios in fund
retirement or removal. complex) (1989-2008)
--------------------------------------------------------------------------------------------------------------------------------
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 55
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (67) Trustee since 2013. Founding Director, Vice President None
Trustee Serves until a and Corporate Secretary, The
successor trustee is Winthrop Group, Inc. (consulting
elected or earlier firm) (1982 - present); Desautels
retirement or removal. Faculty of Management, McGill
University (1999 - present); and
Manager of Research Operations and
Organizational Learning, Xerox PARC,
Xerox's advance research center
(1990-1994)
--------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (66) Trustee since 2013. President and Chief Executive Director of New America High Income
Trustee Serves until a Officer, Newbury, Piret & Company, Fund, Inc. (closed-end investment
successor trustee is Inc. (investment banking firm) (1981 company) (2004 - present); and
elected or earlier - present) member, Board of Governors,
retirement or removal. Investment Company Institute (2000 -
2006)
--------------------------------------------------------------------------------------------------------------------------------
56 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
Interested Trustees
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (56)* Trustee since 2014. Director and Executive Vice President (since 2008) None
Trustee Serves until a and Chief Investment Officer, U.S. (since 2010), of
successor trustee is PIM-USA; Executive Vice President of Pioneer (since
elected or earlier 2008); Executive Vice President of Pioneer
retirement or Institutional Asset Management, Inc. (since 2009);
removal. Portfolio Manager of Pioneer (since 1999)
--------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer of the Fund's
investment adviser and certain of its affiliates.
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 57
Fund Officers
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
--------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (52) Since 2014. Serves at Chair, Director, CEO and President of Pioneer None
President and the discretion of the Investment Management USA (since September 2014);
Chief Executive Officer Board. Chair, Director, CEO and President of Pioneer
Investment Management, Inc. (since September 2014);
Chair, Director, CEO and President of Pioneer Funds
Distributor, Inc. (since September 2014); Chair,
Director, CEO and President of Pioneer Institutional
Asset Management, Inc. (since September 2014); and
Chair, Director, and CEO of Pioneer Investment
Management Shareholder Services, Inc. (since
September 2014); Managing Director, Morgan Stanley
Investment Management (2010 - 2013); Director of
Institutional Business, CEO of International, Eaton
Vance Management (2005 - 2010)
--------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (49) Since 2013. Serves at Vice President and Associate General Counsel of None
Secretary and Chief the discretion of the Pioneer since January 2008; Secretary and Chief
Legal Officer Board. 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 Pioneer from July
2002 to December 2007
--------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (53) Since 2013. Serves at Fund Governance Director of Pioneer since December None
Assistant Secretary the discretion of the 2006 and Assistant Secretary of all the Pioneer
Board. Funds since June 2010; Manager - Fund Governance of
Pioneer from December 2003 to November 2006; and
Senior Paralegal of Pioneer from January 2000 to
November 2003
--------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (51) Since 2013. Serves at Senior Counsel of Pioneer since May 2013 and None
Assistant Secretary the discretion of the Assistant Secretary of all the Pioneer Funds since
Board. June 2010; Counsel of Pioneer from June 2007 to May
2013
--------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (54) Since 2013. Serves at Vice President - Fund Treasury of Pioneer; Treasurer None
Treasurer and Chief the discretion of the of all of the Pioneer Funds since March 2008; Deputy
Financial and Accounting Board. Treasurer of Pioneer from March 2004 to February
Officer of the Fund 2008; and Assistant Treasurer of all of the Pioneer
Funds from March 2004 to February 2008
--------------------------------------------------------------------------------------------------------------------------------
58 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
Fund Officers (continued)
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
--------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (49) Since 2013. Serves at Director - Fund Treasury of Pioneer; and Assistant None
Assistant Treasurer the discretion of the Treasurer of all of the Pioneer Funds
Board.
--------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (56) Since 2013. Serves at Fund Accounting Manager - Fund Treasury of Pioneer; None
Assistant Treasurer the discretion of the and Assistant Treasurer of all of the Pioneer Funds
Board.
--------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (34) Since 2013. Serves at Fund Administration Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Pioneer since November 2008; Assistant Treasurer of
Board. all of the Pioneer Funds since January 2009; and
Client Service Manager - Institutional Investor
Services at State Street Bank from March 2003 to
March 2007
--------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (61) Since 2013. Serves at Chief Compliance Officer of Pioneer and of all the None
Chief Compliance Officer the discretion of the Pioneer Funds since March 2010; Director of Adviser
Board. and Portfolio Compliance at Pioneer since October
2005; and Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to
October 2005
--------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (43) Since 2013. Serves at Director - Transfer Agency Compliance of Pioneer and None
Anti-Money Laundering the discretion of the Anti-Money Laundering Officer of all the Pioneer
Officer Board. funds since 2006
--------------------------------------------------------------------------------------------------------------------------------
Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14 59
This page for your notes.
60 Pioneer Long/Short Global Bond Fund | Annual Report | 8/31/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 28080-00-1014
Pioneer Long/Short
Opportunistic
Credit Fund
--------------------------------------------------------------------------------
Annual Report | August 31, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A LRCAX
Class C LRCCX
Class Y LRCYX
[LOGO] PIONEER
Investments (R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 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 33
Notes to Financial Statements 40
Report of Independent Registered Public Accounting Firm 54
Trustees, Officers and Service Providers 55
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 1
President's Letter
Dear Shareowner,
As we move into the final few months of 2014, we remain confident that U.S.
economic growth remains sustainable, if moderately paced. The weather-related
slowdown in the first quarter is behind us and labor market data continues to
show steady improvement. The number of people filing initial unemployment claims
is at the lowest level since the boom years of 2005-06, the number of job
openings is at the highest level since 2001, and unemployment is down to just
over 6%. Barring an external shock, we think it is likely that the domestic
economic expansion will continue until the economy reaches full employment.
Until then, remaining labor market slack and moderate capacity utilization offer
the potential for continuing non-inflationary growth.
The global economic picture is somewhat less rosy, as the Russia/Ukraine
conflict is exacting a toll on the European economy, Japan is working through
the impact of a large tax increase, and the growth of China's investment-driven
economy is slowing. On balance, though, we expect the global economy to continue
to grow in the second half of 2014, further supporting the U.S. economy.
While our outlook is constructive, the risk of an adverse "external" shock, such
as a military conflict, remains. While many such risks may already be "priced
into" the market, we caution against complacency and believe investors should
always be prepared for possible market volatility.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns.
2 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
On August 11, 2014, I joined Pioneer as the new President and CEO of Pioneer
Investment Management USA, Inc. Since 1928, Pioneer's investment professionals
have worked on behalf of our shareholders to find attractive investment
opportunities, incorporating our proprietary research and prudent risk
management techniques to construct our portfolios.
In my role, I will focus on preserving many of the rich qualities of our
history, while maintaining balance with the demands of this ever-changing world
in which we live.
We greatly appreciate your trust in us and we encourage you to seek investment
guidance and advice from your financial advisor to discuss your goals and
develop an overall investment plan or framework that addresses both your short-
and long-term goals.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA, Inc.
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. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 3
Portfolio Management Discussion | 8/31/14
In the following interview, portfolio managers Thomas Swaney and Benjamin Gord
discuss the factors that influenced Pioneer Long/Short Opportunistic Credit
Fund's performance for the abbreviated annual reporting period beginning with
the Fund's inception on December 30, 2013, and ending August 31, 2014, as well
as their investment approach in managing the Fund. Mr. Swaney, Head of
Alternative Fixed Income, U.S., a senior vice president, and a portfolio manager
at Pioneer (lead portfolio manager of the Fund since 2013), and Mr. Gord, a
vice president and a portfolio manager at Pioneer, are responsible for the
day-to-day management of the Fund.
Q Can you provide an overview of the Fund's approach?
A The big picture is that we seek to have the Fund produce an average annual
return that is greater than the return on 3-month Treasury bills, on an
annualized basis, with volatility lower than one would experience in the
broad equity market. In pursuing this goal, we seek to have the Fund provide
positive returns over most trailing 12-month periods and to minimize the
extent of any negative returns, regardless of market conditions.
Obviously, if we are going to be successful in achieving our objective, the
Fund's returns cannot be overly dependent on the direction of one or more
financial asset categories. In seeking positive returns regardless of market
conditions, we utilize two distinct strategies. One strategy is
"directional," in that we need to be correct about whether a particular
asset price is poised to go up or down. However, we seek to have the Fund's
performance benefit from both positive and negative returns. This means that
at times we invest the portfolio in some asset categories within the broad
bond market by taking long positions, while speculating against other asset
classes by taking short positions.
The other part of the portfolio utilizes uncorrelated trading strategies, in
which we do not have to take a stance on whether an individual market is
going to rise or fall overall. Instead, we need to identify either a segment
or security within a market that we believe will outperform versus another
market segment or security. We execute these portfolio investment strategies
across several different global financial markets and many different asset
classes. We will seek to "pair" positions, meaning that the Fund will have a
long position in one segment/security of a particular
4 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
market, and a short position in another segment/security, such that the
performance of the pair is not dependent on the direction of the market. We
believe this strategy can allow the Fund to benefit from favorable relative
performance, regardless of the overall direction of that market.
Most importantly, we closely track the risks we have assumed in both
portions of the portfolio and operate within an overall "risk budget," which
is based on our goal of largely avoiding negative returns over a 12-month
period.
Q How did the Fund perform during the abbreviated annual reporting period from
December 30, 2013, through August 31, 2014?
A Pioneer Long/Short Opportunistic Credit Fund's Class A shares returned 1.10%
at net asset value during the period between December 30, 2013, and August
31, 2014. During the same period, the Fund's benchmark, the Bank of America
Merrill Lynch (BofA ML) 3-Month U.S. Treasury-Bill Index, returned 0.03%.
Q Can you review the principal portfolio investment strategies you implemented
during the Fund's abbreviated annual reporting period ended August 31, 2014?
How did those strategies help or hinder the Fund's performance?
A We have implemented, to overall positive effect, a number of strategies
within the "uncorrelated" portion of the Fund's portfolio. Our Currency
Long/Short strategy has been a significant positive contributor to
benchmark-relative return in the Fund's first eight months of operations.
Specifically, we have taken long positions in the U.S. dollar while shorting
the euro. That positioning has worked out well as the dollar has
strengthened versus other major currencies. Also on the positive side, we
implemented a number of curve trades in the portfolio's Credit Long/Short
strategy, where the Fund is "long" in one part of an individual issuer's
yield curve and short in another, depending on our outlook for the issuer's
curve to steepen or flatten. We also had pair trades within this strategy
utilizing two issuers within the same industry sector, for whom we expect
performance to diverge. In addition, the Fund's portfolio holds a variety of
event-linked (catastrophe) bonds, which are designed to pay reasonable
yields in exchange for insurance protection against major calamities such as
hurricanes, floods and earthquakes. We like catastrophe bonds for their low
correlation to any equity or fixed-income market risks. That position
contributed to the Fund's performance over the period.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 5
On the downside, the Fund's Cross Asset Relative Value strategy was the
leading detractor from performance during the abbreviated annual reporting
period. Under the strategy, we seek to pair trades to take advantage of any
distortions in relative valuation between asset classes: for instance,
high-yield versus investment-grade corporates. The approach has experienced
some challenges in the current environment of low volatility and narrow
credit spreads, which are the differences in yield between various
fixed-income securities with similar maturities. Our long/short trades
related to equity and yield-curve exposures also modestly detracted from the
Fund's performance during the period. With regard to the latter exposure, we
have been shorting a very specific point on the U.S. yield curve, as we do
not believe the markets are prepared for the likely pace of the Federal
Reserve's (the Fed's) policy tightening should the domestic economy return
to above-trend growth.
Turning to the "directional" side of the portfolio, we have been wary of
taking on long credit exposure given the spread tightening that has
occurred. We have, however, held a portfolio position in euro-denominated
bonds that are convertible into equity. That position gives the Fund
exposure to any improvement in the European stock market over the next few
years, along with downside protection. We have also taken positions in
select U.S. convertible securities, in particular within the
biotech/pharmaceutical area of the health care sector. More
opportunistically, we have traded the portfolio in and out of high-yield
issues in both the U.S. and Europe.
The Fund has meaningful exposure to securitized credit markets, such as
non-agency mortgages, where we see opportunities for the Fund to earn
reasonable risk-adjusted returns with less sensitivity to the direction of
the U.S. equity market. Because we seek to hedge out the accompanying
interest-rate risk, we are isolating the cheapness of mortgage bonds.
Another directional trade has been to take a long portfolio position in
asset-sensitive financial companies, while extracting the equity beta from
those positions using derivatives, along with a corresponding short
position in large-cap industrial companies. (Beta is a statistical
measurement of an investment's sensitivity to market movements in relation
to an index.)
On the short side of the directional portfolio, we took a position with
respect to investment-grade debt in both Asia and Australia, which we viewed
as being vulnerable to the credit slowdown in China. China is attempting to
grow at a 7.5% rate while contracting credit and relying on a
6 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
shadow banking system. We believed both the Asian and Australian credit
markets were a prudent and efficient way to get the Fund some short exposure
to a China policy error. We closed the trade during the period, with a
modest negative impact on Fund performance.
Q What is your assessment of the current macroeconomic climate and the
investment opportunities it may present?
A Overall, we expect global economic growth to continue to strengthen. In the
U.S., we are looking for growth to move up into the range of historic
long-term trends, supported by improvements in employment and the
availability of credit. At the same time, we believe there will be
disappointments along the way, and with the Fed no longer committed to
stepping up its accommodative policies to backstop conditions, asset prices
will likely experience significant volatility. Another macroeconomic
development we are examining is the lack of a clear definition when it comes
to emerging versus developed markets. Many emerging economies are actually
in a better position from the standpoint of debt and current-account flows,
and we anticipate that performance trends in global bond markets will become
increasingly country-specific.
More broadly, we would not be surprised to see market volatility and
performance dispersion increase as global central bank policies diverge and
as the Fed's tightening transitions from tapering quantitative easing to
eventually raising interest rates. We believe that scenario could create
opportunities for an uncorrelated investment strategy such as the Fund's,
and we will seek to identify trades that can help it to capitalize on these
emerging themes.
Please refer to the Schedule of Investments on pages 17-33 for a full listing of
Fund securities.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 7
All investments are subject to risk, including the possible loss of principal.
The portfolio may invest in derivative securities, such as options, futures,
inverse floating-rate obligations, and swaps, among others, which can be
illiquid, may disproportionately increase losses, and have a potentially large
impact on the performance of the portfolio.
The Fund may take short positions, which involves leverage of its assets and
presents additional risks.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the Fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund employs leverage, which increases the volatility of investment returns
and subjects the Fund to magnified losses.
Investments in fixed-income securities involve interest rate, credit, inflation,
and reinvestment risks.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investments in high-yield or lower-rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The securities issued by U.S. Government sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
The portfolio 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.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
8 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
The Fund may invest in event-linked bonds, on which the return of principal and
the payment of interest are contingent on the non-occurrence of a pre-defined
"trigger" event, such as a hurricane or an earthquake of a specific magnitude.
The Fund may invest in floating-rate loans; the value of collateral, if any,
securing a floating-rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
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 is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
These risks may increase share price volatility.
There is no assurance that these and other strategies used by the Fund will be
successful. Please see the prospectus for a more complete discussion of the
Fund's risks.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments 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. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 9
Portfolio Summary | 8/31/14
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Collateralized Mortgage Obligations 30.3%
U.S. Government Securities 18.9%
U.S. Common Stocks 13.6%
Convertible Corporate Bonds 10.3%
Temporary Cash Investment 10.0%
Senior Secured Loans 4.6%
Exchange Traded Fund 3.8%
International Corporate Bonds 3.0%
Asset Backed Securities 2.0%
U.S. Preferred Stocks 1.0%
Convertible Preferred Stocks 0.9%
U.S. Corporate Bonds 0.9%
International Common Stocks 0.7%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. U.S. Cash Management Bills, 0.0%, 9/15/14 11.19%
---------------------------------------------------------------------------------------
2. U.S. Treasury Bills, 0.0%, 9/18/14 7.78
---------------------------------------------------------------------------------------
3. JP Morgan Mortgage Trust 2014-1 REMICS, Floating Rate Note, 1/25/44 (144A) 3.84
---------------------------------------------------------------------------------------
4. iShares European Property Yield UCITS ETF 3.83
---------------------------------------------------------------------------------------
5. JP Morgan Mortgage Trust 2014-1 REMICS, Floating Rate Note, 1/25/44 (144A) 3.78
---------------------------------------------------------------------------------------
6. Sequoia Mortgage Trust 2013-7, Floating Rate Note, 6/25/43 3.58
---------------------------------------------------------------------------------------
7. Sequoia Mortgage Trust 2012-3, Floating Rate Note, 7/25/42 2.98
---------------------------------------------------------------------------------------
8. Sequoia Mortgage Trust 2013-6, Floating Rate Note, 5/26/43 2.84
---------------------------------------------------------------------------------------
9. Cubist Pharmaceuticals, Inc., 1.875%, 9/1/20 (144A) 2.01
---------------------------------------------------------------------------------------
10. Groupe Bruxelles Lambert SA, 0.125%, 9/21/15 1.87
---------------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
10 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
Prices and Distributions | 8/31/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/14 12/30/13*
--------------------------------------------------------------------------------
A $10.11 $10.00
--------------------------------------------------------------------------------
C $10.06 $10.00
--------------------------------------------------------------------------------
Y $10.13 $10.00
--------------------------------------------------------------------------------
Distributions per Share: 12/30/13-8/31/14*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ -- $ -- $ --
--------------------------------------------------------------------------------
C $ -- $ -- $ --
--------------------------------------------------------------------------------
Y $ -- $ -- $ --
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bank of America Merrill Lynch (BofA ML) 3-month US Treasury Bill Index is
an unmanaged market index of U.S. Treasury securities maturing in 90 days, that
assumes reinvestment of all income. 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.
* The Fund commenced operations on December 30, 2013.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 11
Performance Update | 8/31/14 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000 invest-
ment made in Class A shares of Pioneer Long/Short Opportunistic Credit Fund at
public offering price during the periods shown, compared to that of the Bank of
America Merrill Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
Net Public BofA ML
Asset Offering 3-Month
Value Price U.S. Treasury
Period (NAV) (POP) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 1.10% -3.44% 0.03%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 6, 2013,
as revised January 8, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.94% 1.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short Opportunistic BofA ML 3-month US
Credit Fund Treasury Bill Index
12/31/2013 $9,550 $10,000
8/31/2014 $9,656 $10,003
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class A shares. There can be no assurance
that 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.
12 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
Performance Update | 8/31/14 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 Long/Short Opportunistic Credit
Fund during the periods shown, compared to that of the Bank of America Merrill
Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 0.60% -0.40% 0.03%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 6, 2013,
as revised January 8, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.69% 2.50%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short Opportunistic BofA ML 3-month US
Credit Fund Treasury Bill Index
12/31/2013 $10,000 $10,000
8/31/2014 $9,960 $10,003
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class C shares. There can be no assurance
that 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.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 13
Performance Update | 8/31/14 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 Long/Short Opportunistic Credit
Fund during the periods shown, compared to that of the Bank of America Merrill
Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of August 31, 2014)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 1.30% 1.30% 0.03%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 6, 2013,
as revised January 8, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.69% 1.50%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Long/Short Opportunistic BofA ML 3-month US
Credit Fund Treasury Bill Index
12/31/2013 $5,000,000 $5,000,000
8/31/2014 $5,065,000 $5,001,378
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class 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 January 1, 2015, for Class Y shares. There can be no assurance
that 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.
14 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
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 Long/Short Opportunistic
Credit Fund
Based on actual returns from March 1, 2014, through August 31, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 3/1/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 8/31/14 $1,011.00 $1,007.01 $1,011.99
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 9.53 $ 13.30 $ 8.27
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratio of the underlying funds. These combined totals were 1.88%,
2.63% and 1.63% for Class A, Class C and Class Y shares, respectively. These
combined ratios were multiplied by the average account value over the period
multiplied by 184/365 (to reflect the partial year period).
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 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 Long/Short Opportunistic Credit
Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2014, through August 31, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 3/1/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 8/31/14 $1,015.73 $1,011.95 $1,016.99
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 9.55 $ 13.34 $ 8.29
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratio of the underlying funds. These combined totals were 1.88%,
2.63% and 1.63% for Class A, Class C and Class Y shares, respectively. These
combined ratios were multiplied by the average account value over the period
multiplied by 184/365 (to reflect the partial year period).
16 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
Schedule of Investments | 8/31/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE
BONDS -- 10.2%
MATERIALS -- 0.8%
Diversified Metals & Mining -- 0.8%
200,000 BB/NR Vedanta Resources Jersey, Ltd.,
5.5%, 7/13/16 $ 204,000
---------------
Total Materials $ 204,000
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.7%
Trading Companies & Distributors -- 0.7%
EUR 150,000 B+/NR Kloeckner & Co. Financial Services SA,
2.5%, 12/22/17 $ 195,289
---------------
Total Capital Goods $ 195,289
-------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY
& LIFE SCIENCES -- 3.0%
Biotechnology -- 3.0%
455,000 NR/NR Cubist Pharmaceuticals, Inc., 1.875%,
9/1/20 (144A) $ 516,994
240,000 NR/NR Emergent Biosolutions, Inc., 2.875%,
1/15/21 (144A) 260,700
---------------
$ 777,694
---------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 777,694
-------------------------------------------------------------------------------------------------------------
BANKS -- 0.6%
Diversified Banks -- 0.6%
EUR 100,000 NR/NR Caja de Ahorros y Pensiones de Barcelona,
1.0%, 11/25/17 $ 148,060
---------------
Total Banks $ 148,060
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.4%
Multi-Sector Holdings -- 2.4%
EUR 100,000 NR/NR GBL Verwaltung SA, 1.25%, 2/7/17 $ 148,060
EUR 300,000 NR/NR Groupe Bruxelles Lambert SA, 0.125%,
9/21/15 481,778
---------------
$ 629,838
---------------
Total Diversified Financials $ 629,838
-------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 2.1%
Internet Software & Services -- 1.0%
240,000 NR/NR WebMD Health Corp., 1.5%,
12/1/20 (144A) $ 265,650
-------------------------------------------------------------------------------------------------------------
Systems Software -- 1.1%
260,000 NR/NR ServiceNow, Inc., 0.0%, 11/1/18
(144A) (c) $ 282,588
---------------
Total Software & Services $ 548,238
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 17
Schedule of Investments | 8/31/14 (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.6%
EUR 100,000 B/Ba1 Parpublica -- Participacoes Publicas
SGPS SA, 5.25%, 9/28/17 $ 150,096
---------------
Total Government $ 150,096
-------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $2,605,651) $ 2,653,215
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Shares
-------------------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 1.0%
BANKS -- 1.0%
Diversified Banks -- 1.0%
320,000 1.19 BBB/Baa2 JPMorgan Chase Capital XXI, Floating
Rate Note, 1/15/87 $ 276,800
-------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $259,232) $ 276,800
-------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED
STOCK -- 0.9%
DIVERSIFIED FINANCIALS -- 0.9%
Other Diversified Financial
Services -- 0.9%
200 BB+/Ba3 Bank of America Corp., 7.25% (Perpetual) $ 234,200
-------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $229,386) $ 234,200
-------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 13.6%
ENERGY -- 1.0%
Oil & Gas Exploration &
Production -- 1.0%
3,358 Devon Energy Corp. $ 253,260
---------------
Total Energy $ 253,260
-------------------------------------------------------------------------------------------------------------
BANKS -- 8.4%
Diversified Banks -- 0.6%
2,062 Comerica, Inc. $ 103,801
1,494 US Bancorp/MN 63,166
---------------
$ 166,967
-------------------------------------------------------------------------------------------------------------
Regional Banks -- 7.3%
1,092 Associated Banc-Corp. $ 19,853
322 Bank of Hawaii Corp. 18,692
3,948 BankUnited, Inc.* 124,559
1,696 BB&T Corp. 63,312
499 City National Corp./CA 37,864
840 Commerce Bancshares, Inc./MO 38,749
491 Cullen/Frost Bankers, Inc., 38,593
The accompanying notes are an integral part of these financial statements.
18 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
-------------------------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------------------------
Regional Banks -- (continued)
1,083 East West Bancorp, Inc. $ 37,732
3,024 Fifth Third Bancorp 61,705
1,609 First Horizon National Corp. 19,565
4,108 First Niagara Financial Group, Inc. 35,740
4,866 First Republic Bank 237,947
1,865 FirstMerit Corp. 32,143
1,463 FNB Corp./PA 18,083
1,540 Fulton Financial Corp. 17,764
684 Glacier Bancorp, Inc. 18,618
538 Hancock Holding Co. 17,883
5,838 Huntington Bancshares, Inc./OH 57,475
4,146 KeyCorp 56,427
638 M&T Bank Corp. 78,876
632 Popular, Inc.* 19,567
647 PrivateBancorp, Inc. 19,093
593 Prosperity Bancshares, Inc. 35,817
11,989 Regions Financial Corp. 121,688
309 Signature Bank* 36,604
1,619 SunTrust Banks, Inc. 61,652
1,692 Susquehanna Bancshares, Inc. 17,461
319 SVB Financial Group* 35,511
1,652 Synovus Financial Corp. 39,896
1,173 TCF Financial Corp. 18,533
310 Texas Capital Bancshares, Inc.* 16,734
1,516 The PNC Financial Services Group, Inc. 128,481
300 UMB Financial Corp. 17,325
1,830 Valley National Bancorp 18,300
632 Webster Financial Corp. 18,644
406 Wintrust Financial Corp. 18,907
7,994 Zions Bancorporation 232,945
---------------
$ 1,888,738
-------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.5%
3,905 Hudson City Bancorp, Inc. $ 38,542
2,420 New York Community Bancorp, Inc. 38,599
2,593 People's United Financial, Inc. 38,765
857 Washington Federal, Inc. 18,640
---------------
$ 134,546
---------------
Total Banks $ 2,190,251
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 19
Schedule of Investments | 8/31/14 (continued)
-------------------------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.2%
Asset Management & Custody
Banks -- 4.2%
13,471 Ares Capital Corp. $ 231,028
15,250 Fifth Street Finance Corp. 149,908
13,358 Golub Capital BDC, Inc. 236,303
13,274 TCP Capital Corp. 234,021
8,618 Triangle Capital Corp. 236,823
---------------
$ 1,088,083
---------------
Total Diversified Financials $ 1,088,083
-------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $3,548,669) $ 3,531,594
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited)
-------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 2.1%
BANKS -- 1.7%
Thrifts & Mortgage Finance -- 1.7%
118,041 B+/B3 Accredited Mortgage Loan Trust 2003-3,
5.21%, 1/25/34 (Step) $ 114,831
125,000 NR/NR CAM Mortgage Trust 2014-1, 5.5%,
12/15/53 (Step) (144A) 125,840
45,580 1.46 B+/B2 First Franklin Mortgage Loan Trust
2003-FFC, Floating Rate Note, 11/25/32 43,546
44,657 BBB/NR Icon Brand Holdings LLC, 4.229%,
1/25/43 (144A) 45,066
38,234 3.16 A/Baa2 Irwin Whole Loan Home Equity Trust
2003-C, Floating Rate Note, 6/25/28 38,301
71,621 5.47 B/B1 New Century Home Equity Loan Trust,
Floating Rate Note, 8/25/34 73,908
---------------
$ 441,492
---------------
Total Banks $ 441,492
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.4%
Other Diversified Financial
Services -- 0.4%
95,000 BBB/NR TAL Advantage V LLC, 4.1%, 2/22/39 $ 96,084
---------------
Total Diversified Financials $ 96,084
-------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $535,935) $ 537,576
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 29.9%
BANKS -- 29.3%
Thrifts & Mortgage Finance -- 29.3%
250,000 6.19 B-/NR Banc of America Commercial Mortgage
Trust 2007-5, Floating Rate Note, 2/10/51 $ 257,538
51,816 1.16 A/Baa1 Bayview Commercial Asset Trust, Floating
Rate Note, 1/25/35 (144A) 47,705
150,000 BB/NR Bear Stearns Commercial Mortgage Securities
Trust 2006-PWR14, 5.273%, 12/11/38 152,952
152,000 4.45 NR/NR CAM Mortgage Trust 2014-2, Floating Rate
Note, 5/15/48 (144A) 152,897
21,901 NR/Baa2 Citicorp Mortgage Securities REMIC Pass-
Through Certificates Trust Series 2005-3,
5.5%, 4/25/35 22,021
47,000 5.97 B-/NR COBALT CMBS Commercial Mortgage Trust
2007-C3, Floating Rate Note, 5/15/46 38,872
175,000 5.57 NR/Ba3 COBALT Commercial Mortgage Trust 2007-C2,
Floating Rate Note, 4/15/47 (144A) 179,792
175,000 NR/B3 COMM 2006-C8 Mortgage Trust,
5.377%, 12/10/46 175,422
300,000 5.10 B/NR Credit Suisse First Boston Mortgage
Securities Corp., Floating Rate Note,
8/15/38 276,304
175,000 3.26 BB-/NR CSMC Trust 2014-SURF, Floating Rate
Note, 2/15/29 (144A) 175,448
100,000 4.91 NR/NR EQTY 2014-MZ Mezzanine Trust, Floating
Rate Note, 5/8/31 (144A) 100,438
250,000 5.79 B+/NR GS Mortgage Securities Trust 2006-GG6,
Floating Rate Note, 4/10/38 250,636
200,000 B/B3 JP Morgan Chase Commercial Mortgage
Securities Trust 2006-CIBC16, 5.623%,
5/12/45 201,755
125,000 3.05 BB/NR JP Morgan Chase Commercial Mortgage
Securities Trust 2013-FL3, Floating Rate
Note, 4/17/28 (144A) 125,056
977,831 3.50 AAA/NR JP Morgan Mortgage Trust 2014-1 REMICS,
Floating Rate Note, 1/25/44 (144A) 986,678
934,229 4.00 AAA/NR JP Morgan Mortgage Trust 2014-1 REMICS,
Floating Rate Note, 1/25/44 (144A) 971,453
125,000 5.39 NR/B1 LB-UBS Commercial Mortgage Trust
2005-C2, Floating Rate Note, 4/15/40 127,859
187,500 5.28 BB/NR LB-UBS Commercial Mortgage Trust
2006-C1, Floating Rate Note, 2/15/41 191,849
70,000 5.48 NR/Ba2 ML-CFC Commercial Mortgage Trust 2006-3,
Floating Rate Note, 7/12/46 71,659
9,145 0.94 AAA/Aaa Nomura Asset Acceptance Corp., Alternative
Loan Trust Series 2004-AR2, Floating Rate
Note, 10/25/34 9,126
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 21
Schedule of Investments | 8/31/14 (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage
Finance -- (continued)
758,623 3.50 NR/Aaa Sequoia Mortgage Trust 2012-3, Floating
Rate Note, 7/25/42 $ 765,724
747,867 3.00 NR/Aaa Sequoia Mortgage Trust 2013-6, Floating
Rate Note, 5/26/43 729,170
944,570 3.00 AAA/NR Sequoia Mortgage Trust 2013-7, Floating
Rate Note, 6/25/43 920,956
124,991 4.75 NR/NR Volt LLC , Series 14-NPL1, Floating Rate
Note, 10/27/53 124,642
250,000 5.37 BB+/B2 Wachovia Bank Commercial Mortgage Trust
Series 2005-C22, Floating Rate Note,
12/15/44 255,174
125,000 6.15 B/B1 Wachovia Bank Commercial Mortgage Trust
Series 2007-C34, Floating Rate Note,
5/15/46 129,661
200,000 3.66 BB/NR Wells Fargo Commercial Mortgage Trust
2014-TISH, Floating Rate Note,
1/15/27 (144A) 199,748
---------------
$ 7,640,535
---------------
Total Banks $ 7,640,535
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.6%
Specialized Finance -- 0.6%
155,000 5.97 B-/NR COBALT CMBS Commercial Mortgage Trust
2007-C3, Floating Rate Note, 5/15/46 $ 142,770
---------------
Total Diversified Financials $ 142,770
-------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $7,627,515) $ 7,783,305
-------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 3.9%
INSURANCE -- 3.9%
Reinsurance -- 3.9%
250,000 6.89 NR/NR Caelus Re, Ltd., Floating Rate Note,
4/7/17 (Cat Bond) (144A) $ 261,050
250,000 4.52 BB-/NR Kilimanjaro Re, Ltd., Floating Rate Note,
4/30/18 (Cat Bond) (144A) 250,150
250,000 8.50 NR/Ba3 Mythen Re, Ltd., Floating Rate Note,
5/7/15 (Cat Bond) (144A) 258,950
250,000 4.53 BB+/NR Residential Reinsurance 2012, Ltd., Floating
Rate Note, 12/6/16 (Cat Bond) (144A) 256,575
---------------
$ 1,026,725
---------------
Total Insurance $ 1,026,725
-------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $1,024,848) $ 1,026,725
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 18.7%
2,875,000 AAA/Aaa U.S. Cash Management Bills, 0.0%,
9/15/14 (c) $ 2,874,999
2,000,000 AAA/Aaa U.S. Treasury Bills, 0.0%, 9/18/14 (c)(d) 1,999,984
---------------
$ 4,874,983
-------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(Cost $4,874,962) $ 4,874,983
-------------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 4.6%**
ENERGY -- 1.3%
Oil & Gas Drilling -- 0.2%
50,020 7.50 B/B3 Jonah Energy LLC, Term Loan (Second
Lien), 5/8/21 $ 50,270
-------------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.2%
49,750 5.75 B+/B3 FR Dixie Acquisition Corp., Term Loan,
1/23/21 $ 49,962
-------------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.5%
50,000 7.50 NR/NR Chief Exploration & Development, Inc. Term
Loan, 5/12/21 $ 50,250
99,500 4.00 BB-/Ba3 Seadrill Operating LP Initial Term Loan,
,
2/14/21 98,090
---------------
$ 148,340
-------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration &
Production -- 0.4%
99,499 3.88 BB-/Ba2 Fieldwood Energy LLC, Closing Date Loan,
9/25/18 $ 99,574
---------------
Total Energy $ 348,146
-------------------------------------------------------------------------------------------------------------
MATERIALS -- 0.6%
Commodity Chemicals -- 0.1%
29,850 5.00 B+/B2 Nexeo Solutions LLC, Term Loan B3,
9/9/17 $ 29,850
-------------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.2%
49,743 5.00 B+/B3 Univar, Term B Loan, 6/30/17 $ 49,872
-------------------------------------------------------------------------------------------------------------
Steel -- 0.1%
35,000 4.50 B/B3 Atkore International, Inc., Term Loan
(First Lien), 3/27/21 $ 34,847
-------------------------------------------------------------------------------------------------------------
Paper Products -- 0.2%
49,750 5.25 B/B1 Coveris Holdings SA, USD Term Loan,
4/14/19 $ 50,330
---------------
Total Materials $ 164,899
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 23
Schedule of Investments | 8/31/14 (continued)
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.4%
Aerospace & Defense -- 0.4%
39,180 6.25 B+/Ba3 DynCorp International, Inc., Term Loan,
7/7/16 $ 39,190
49,747 5.25 B/B2 Sequa Corp., Initial Term Loan, 6/19/17 48,768
24,500 3.25 BB-/Ba3 Wesco Aircraft Hardare Corp., Tranche B
Term Loan (First Lien), 2/24/21 24,286
---------------
$ 112,244
---------------
Total Capital Goods $ 112,244
-------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.4%
Trucking -- 0.4%
50,000 5.50 B/B1 Aegis Toxicology Corp., Tranche B Term
Loan (First Lien), 2/20/21 $ 50,500
49,750 8.00 CCC+/Ba3 YRC Worldwide, Inc., Initial Term Loan,
2/12/19 50,496
---------------
$ 100,996
---------------
Total Transportation $ 100,996
-------------------------------------------------------------------------------------------------------------
MEDIA -- 0.2%
Broadcasting -- 0.1%
23,485 3.00 BB+/Ba1 CBS Outdoor Americas Capital LLC, Tranche B
Term Loan (First Lien), 1/15/21 $ 23,326
-------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.1%
24,844 6.50 CCC/B2 Deluxe Entertainment Services Group., Inc.,
Tranche B Term Loan (First Lien), 2/26/20 $ 21,800
---------------
Total Media $ 45,126
-------------------------------------------------------------------------------------------------------------
RETAILING -- 0.1%
Automotive Retail -- 0.1%
30,000 4.00 BB-/B1 CS Intermediate Holdco 2 LLC, Term Loan,
3/28/21 $ 29,906
---------------
Total Retailing $ 29,906
-------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.3%
Agricultural Products -- 0.3%
74,623 4.50 B/B1 Arysta Lifescience SPC LLC, Initial Term Loan
(First Lien), 5/29/20 $ 74,726
--------------
Total Food, Beverage & Tobacco $ 74,726
------------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.4%
Personal Products -- 0.4%
75,000 7.75 CCC+/Caa2 Atrium Innovations, Inc., Tranche B Term
Loan (Second Lien), 7/29/21 $ 74,484
35,820 4.00 B/B2 Party City Holdings, Inc., 2014
Replacement Term Loan, 7/27/19 35,498
--------------
$ 109,982
--------------
Total Household & Personal Products $ 109,982
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
-------------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.4%
Other Diversified Financial
Services -- 0.2%
34,913 4.50 B+/B1 Nord Anglia Education Finance LLC, Initial
Term Loan 3/21/21 $ 34,993
24,938 5.00 B/B1 SBP Holdings, Ltd., Term Loan (First Lien),
3/24/21 25,083
---------------
$ 60,076
-------------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.2%
34,913 4.00 B+/Ba3 Transunion LLC, 2014 Term Loan 3/21/21 $ 34,834
---------------
Total Diversified Financials $ 94,910
-------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.1%
Systems Software -- 0.1%
35,910 5.50 B+/B1 SafeNet, Inc., Tranche B Term Loan, 2/28/20 $ 36,000
---------------
Total Software & Services $ 36,000
-------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT -- 0.2%
Semiconductor Equipment -- 0.2%
40,000 3.50 BB+/Ba3 Emtegris, Inc., Term Loan B, 3/25/21 $ 39,717
---------------
Total Semiconductors &
Semiconductor Equipment $ 39,717
-------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.2%
Electric Utilities -- 0.2%
46,873 4.75 B+/Ba3 Atlantic Power LP, Term Loan, 2/20/21
$ 47,166
---------------
Total Utilities $ 47,166
-------------------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE
LOAN INTERESTS
(Cost $1,202,872) $ 1,203,818
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Shares
-------------------------------------------------------------------------------------------------------------
EXCHANGE TRADED FUND -- 3.8%
24,226 iShares European Property Yield UCITS ETF $ 985,043
-------------------------------------------------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUND
(Cost $1,038,086) $ 985,043
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 25
Schedule of Investments | 8/31/14 (continued)
-------------------------------------------------------------------------------------------------------------
Principal
Amount ($) Value
-------------------------------------------------------------------------------------------------------------
TEMPORARY CASH
INVESTMENT -- 9.9%
Repurchase Agreement -- 9.9%
2,570,000 RBC Securities, Inc., 0.05%, dated
8/29/14, repurchase price of
$2,570,000 plus accrued interest on
9/2/14 collateralized by the following:
$392,713 Freddie Mac Giant, 3.5-4.0%,
9/1/42-7/1/44
$1,813,301 Federal Home
Loan Mortgage Corp, 3.045%, 7/1/44
$122,402 Federal National Mortgage
Association (ARM), 1.986%, 1/1/36
$177,305 Federal National Mortgage
Association, 3.5-4.5%, 9/1/28-9/1/43
$115,678 Government National Mortgage
Association, 3.0%, 7/20/42 $ 2,570,000
-------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $2,570,000) $ 2,570,000
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Shares
-------------------------------------------------------------------------------------------------------------
PURCHASED CREDIT DEFAULT
SWAPTIONS -- 0.1%
2,550,000 MARKIT CME North America High Yield
Index 22.V1 Fixed, 9/17/14, 106%
(SWP 4/11/14 Right to pay fixed) $ 6,152
2,550,000 MARKIT CME North America High Yield
Index 22.V1 Fixed, 12/17/14, 103%
(SWP 5/12/14 Right to pay fixed) 17,401
---------------
TOTAL PURCHASED SWAPTIONS $ 23,553
---------------
(Premiums paid $113,985) $ 23,553
-------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN
SECURITIES -- 98.7%
(Cost $25,631,141) (a) $ 25,700,812
-------------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 1.3% $ 334,351
-------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 26,035,163
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
* Non-income producing security.
NR Not rated by either S&P or Moody's.
(Cat Bond) Catastrophe bond is a high-yield debt instrument that is
usually insurance linked and meant to raise money in case of a
catastrophe.
(Perpetual) Security with no stated maturity date.
REMICS Real Estate Mortgage Investment Conduits.
(Step) Step up bond issued with an initial coupon rate which converts to a
higher rate at a later date.
(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 August 31, 2014, the value of these securities
amounted to $5,462,778 or 21.0% of total net assets.
** Senior 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 (London InterBank Offered
Rate), (ii) the prime rate offered by one or more major United
States banks, (iii) the certificate of deposit or (iv) other base
lending rates used by commercial lenders. The rate shown is the
coupon rate at period end.
(a) At August 31, 2014, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $25,635,261 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 284,308
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (218,757)
---------
Net unrealized appreciation $ 65,551
=========
(b) Debt obligation with a variable interest rate. Rate shown is rate at
end of period.
(c) Security issued with a zero coupon. Income is earned through
accretion of discount.
(d) All or a portion of this security has been pledged in connection
with open futures and swap contracts.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EUR Euro
Purchases and sales of securities (excluding temporary cash investments) for the
period ended August 31, 2014 aggregated $28,679,798 and $10,189,578,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 27
Schedule of Investments | 8/31/14 (continued)
CREDIT DEFAULT SWAP AGREEMENTS - BUY PROTECTION
------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
------------------------------------------------------------------------------------------------------------
(250,000) Citibank NA Caesars 5.00% 12/20/16 $ 126,250 $ 32,346
Entertainment
Operating Co.
(1,235,000) Citibank NA Markit CDX North 5.00% 12/20/18 (244,530) 4,103
America High
Yield Index
(650,000) Citibank NA Devon Energy Corp. 1.00% 9/20/19 (17,130) 1,010
(250,000) Citibank NA JPMorgan Chase 1.00% 9/20/19 (6,163) 137
& Co.
(80,000) Citibank NA Russian Federation 1.00% 9/20/19 3,165 2,431
(780,000) J.P. Morgan Markit CDX North 1.00% 6/20/19 (15,901) (1,281)
Securities LLC America Investment
Grade Index
EUR (2,750,000) J.P. Morgan Markit iTraxx Europe 5.00% 6/20/19 (401,922) (43,013)
Securities LLC Crossover Index
EUR (2,600,000) J.P. Morgan Markit iTraxx Europe 1.00% 6/20/19 (45,676) (24,691)
Securities LLC Senior Financial Index
(125,000) JP Morgan Bank of America Corp. 1.00% 9/20/19 (2,315) (81)
Chase Bank NA
EUR (375,000) JP Morgan Glencore Finance 1.00% 9/20/19 10,799 (9,651)
Chase Bank NA Europe SA
(250,000) JP Morgan Pulte Homes, Inc. 1.00% 9/20/19 (41,520) (1,434)
Chase Bank NA
(250,000) JP Morgan Standard Pacific Corp. 5.00% 9/20/19 (35,343) (1,795)
Chase Bank NA
(250,000) Morgan Radioshack Corp. 5.00% 6/20/17 123,750 14,749
Stanley & Co.
International Plc
(250,000) Morgan D.R. Horton, Inc. 1.00% 9/20/19 7,704 (356)
Stanley & Co.
International Plc
(250,000) Morgan Lennar Corp. 5.00% 9/20/19 (37,636) 262
Stanley & Co.
International Plc
------------------------------------------------------------------------------------------------------------
$(576,468) $(27,264)
============================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
CREDIT DEFAULT SWAP AGREEMENTS - SELL PROTECTION
------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Paid Appreciation
Principal ($)(1) Counterparty Entity Coupon Rating(2) Date (Received) (Depreciation)
------------------------------------------------------------------------------------------------------------
125,000 Citibank NA Radioshack Corp. 5.00% C 9/20/14 $ (5,938) $ (7,676)
250,000 Citibank NA Clear Channel 5.00% CCC- 12/20/14 564 2,896
Communications,
Inc.
EUR 310,000 Citibank NA Government of 5.00% CCC 12/20/14 (38,191) 31,906
Ukraine
250,000 Citibank NA JCPenney Corp., 5.00% CCC- 12/20/14 (5,000) 10,737
Inc.
125,000 Citibank NA Radioshack Corp. 5.00% C 12/20/14 (10,000) (28,732)
250,000 Citibank NA Toys R Us, Inc. 5.00% CCC 12/20/14 (5,000) 6,660
250,000 Citibank NA MBIA, Inc. 5.00% NA 3/20/15 (625) 2,160
250,000 Citibank NA Sears Roebuck 5.00% CCC+ 3/20/15 (16,250) 10,186
Acceptance Corp.
EUR 250,000 Citibank NA Travelport LLC 5.00% NR 3/20/15 -- 3,769
EUR 250,000 Citibank NA Caesars 5.00% C 6/20/15 (27,500) (86,651)
Entertainment
Operating Co.
125,000 Citibank NA Abengoa SA 5.00% B 9/20/19 (1,386) 6,987
EUR 250,000 Citibank NA Alcatel Lucent 5.00% B 9/20/19 21,476 9,620
EUR 250,000 Citibank NA Altice Finco SA 5.00% B- 9/20/19 23,185 611
250,000 Citibank NA Ardagh 5.00% CCC+ 9/20/19 4,242 15,202
Packaging
Finance plc
250,000 Citibank NA Astaldi SpA 5.00% B+ 9/20/19 7,126 10,912
EUR 260,000 Citibank NA Hertz Corp. 5.00% B 9/20/19 31,592 1,013
EUR 250,000 Citibank NA Ineos Group 5.00% B- 9/20/19 19,650 (1,158)
Holdings SA
EUR 260,000 Citibank NA MGIC 5.00% B 9/20/19 31,725 606
Investment Corp.
EUR 260,000 Citibank NA Radian Group, 1.00% B- 9/20/19 27,138 4,138
Inc.
EUR 250,000 Citibank NA Stena AB 5.00% BB 9/20/19 22,699 4,272
125,000 Citibank NA Unilabs 5.00% NA 9/20/19 (13,621) 4,936
SubHolding AB
EUR 250,000 Citibank NA Unilabs 5.00% B 9/20/19 (13,411) (3,330)
SubHolding AB
EUR 250,000 Citibank NA Wind Acquisition 5.00% NR 9/20/19 23,844 10,122
Finance SA
EUR 500,000 Citibank NA Markit CDX 5.00% NA (3) 12/20/14 (15,391) 19,598
North America
Investment
Grade Index
625,000 Citibank NA Markit iTraxx 5.00% NA (3) 6/20/15 (8,590) 23,608
Europe Index
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 29
Schedule of Investments | 8/31/14 (continued)
CREDIT DEFAULT SWAP AGREEMENTS - SELL PROTECTION
------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Paid Appreciation
Principal ($)(1) Counterparty Entity Coupon Rating(2) Date (Received) (Depreciation)
------------------------------------------------------------------------------------------------------------
2,500,000 Citibank NA Markit iTraxx 1.00% NA (3) 6/20/19 $(216,543) $ 25,267
Europe Index
EUR 250,000 JP Morgan Norske 5.00% CCC 3/20/15 (20,418) 18,527
Chase Bank Skogindustrier
NA ASA
EUR 280,000 JP Morgan Abengoa SA 5.00% B 9/20/19 18,997 (6,449)
Chase Bank
NA
375,000 JP Morgan Arcelormittal 1.00% BB+ 9/20/19 (34,183) 6,409
Chase Bank
NA
240,000 JP Morgan Vougeot Bidco 5.00% B 9/20/19 25,771 (2,362)
Chase Bank plc
NA
250,000 Morgan Forest Oil Corp. 5.00% CCC 3/20/15 (3,750) 5,531
Stanley & Co.
International
plc
125,000 Morgan Sears Roebuck 5.00% CCC+ 3/20/15 (5,625) 2,590
Stanley & Co. Acceptance Corp.
International
plc
------------------------------------------------------------------------------------------------------------
$(183,413) $101,905
============================================================================================================
(1) The notional amount is the maximum amount that a seller of credit protection
would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer.
(3) Payment is based on a percentage of the index. Referenced indices are
comprised of a number of individual issuers.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
The accompanying notes are an integral part of these financial statements.
30 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
INTEREST RATE SWAP AGREEMENTS
----------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Pay / Floating Fixed Expiration Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
----------------------------------------------------------------------------------------------
1,687,669 J.P. Morgan Receive Russian Ruble 1.801% 7/18/19 $ (8,527)
Securities LLC 3 Month
5,370,982 J.P. Morgan Receive Russian Ruble 1.819% 7/24/19 (29,365)
Securities LLC 3 Month
1,853,457 J.P. Morgan Receive Russian Ruble 1.819% 8/7/19 (8,228)
Securities LLC 3 Month
1,660,004 J.P. Morgan Receive Russian Ruble 2.660% 8/7/24 (28,429)
Securities LLC 3 Month
EUR 1,017,181 J.P. Morgan Receive EURIBOR 1.089% 9/2/24 132
Securities LLC 6 Month
----------------------------------------------------------------------------------------------
$ (74,417)
==============================================================================================
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
CREDIT DEFAULT SWAPTIONS SOLD
--------------------------------------------------------------------------------------------------------
Notional Expiration
Principal ($) Description Counterparty Coupon Date Value
--------------------------------------------------------------------------------------------------------
(5,100,000) Markit CDX North America Citibank NA 103 9/17/14 $ (1,443)
High Yield Index
(5,100,000) Markit CDX North America Citibank NA 100 12/17/14 (17,993)
High Yield Index
--------------------------------------------------------------------------------------------------------
(Premiums Received $134,640) $(19,436)
========================================================================================================
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed 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
risk, 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.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
are categorized as Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 31
Schedule of Investments | 8/31/14 (continued)
The following is a summary of the inputs used as of August 31, 2014, in valuing
the Fund's assets:
-----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 2,653,215 $ -- $ 2,653,215
Preferred Stocks -- 276,800 -- 276,800
Convertible Preferred Stocks 234,200 -- -- 234,200
Common Stocks 3,531,594 -- -- 3,531,594
Asset Backed Securities -- 537,576 -- 537,576
Collateralized Mortgage Obligations -- 7,783,305 -- 7,783,305
Corporate Bonds -- 1,026,725 -- 1,026,725
U.S. Government and
Agency Obligations -- 4,874,983 -- 4,874,983
Senior Floating Rate Loan Interests -- 1,203,818 -- 1,203,818
Exchange Traded Funds 985,043 -- -- 985,043
Temporary Cash Investments -- 2,570,000 -- 2,570,000
Purchased Swaptions -- 23,553 -- 23,553
-----------------------------------------------------------------------------------------
Total $ 4,750,837 $20,949,975 $ -- $25,700,812
=========================================================================================
Other Financial Instruments
Unrealized Appreciation on
Credit Default Swaps $ -- $ 74,641 $ -- $ 74,641
Unrealized Depreciation on
Interest Rate Swaps -- (74,417) -- (74,417)
Unrealized Appreciation on
Written Swaptions -- 115,204 -- 115,204
Unrealized Depreciation on
Futures Contracts (85,912) -- -- (85,912)
Unrealized Appreciation on forward
foreign currency contracts -- 216,294 -- 216,294
-----------------------------------------------------------------------------------------
Total Other Financial Instruments $ (85,912) $ 331,722 $ -- $ 245,810
=========================================================================================
The accompanying notes are an integral part of these financial statements.
32 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
Statement of Assets and Liabilities | 8/31/14
ASSETS:
Investment in securities, at value (cost $25,631,141) $25,700,812
Cash 2,539,809
Futures collateral 449,996
Swap collateral 601,763
Receivables --
Investment securities sold 223,727
Fund shares sold 28
Dividends 17,612
Interest 67,035
Due from Pioneer Investment Management, Inc. 55,956
Net unrealized appreciation on forward foreign currency contracts 216,294
Net unrealized appreciation on swap contracts 224
Other 22,184
------------------------------------------------------------------------------------
Total assets $29,895,440
====================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 2,874,978
Variation margin 4,459
Trustee fees 1,078
Futures payable 344
Due to custodian (cost $3,021) 7,766
Written swaptions (premiums received $134,640) 19,436
Swap contracts, premiums received 759,881
Net unrealized depreciation on futures contracts 85,912
Due to affiliates 28,282
Accrued expenses 78,141
------------------------------------------------------------------------------------
Total liabilities $ 3,860,277
====================================================================================
NET ASSETS:
Paid-in capital $25,761,745
Undistributed net investment income 536,247
Accumulated net realized loss on investments, futures contracts,
swap contracts, and foreign currency transactions (566,887)
Net unrealized appreciation on investments 69,671
Net unrealized depreciation on futures contracts (85,912)
Net unrealized appreciation on written swaptions 115,204
Net unrealized appreciation on swap contracts 224
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 204,871
------------------------------------------------------------------------------------
Total net assets $26,035,163
====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $9,040,109/894,309 shares) $ 10.11
Class C (based on $8,402,611/835,402 shares) $ 10.06
Class Y (based on $8,592,443/848,611 shares) $ 10.13
MAXIMUM OFFERING PRICE:
Class A ($10.11 (divided by) 95.5%) $ 10.59
====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 33
Statement of Operations
For the period from 12/30/13 (Commencement of Operations) to 8/31/14
INVESTMENT INCOME:
Interest $ 174,316
Dividends 89,341
------------------------------------------------------------------------------------
Total investment income $ 263,657
------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 196,085
Distribution fees
Class A 14,544
Class C 55,816
Transfer Agent fee
Class A 300
Class C 122
Class Y 101
Shareholder communications expense 472
Administrative reimbursements 14,061
Custodian fees 38,611
Registration fees 39,942
Professional fees 99,023
Printing expense 31,348
Fees and expenses of nonaffiliated Trustees 4,372
Pricing fees 7,959
Miscellaneous 8,979
------------------------------------------------------------------------------------
Total expenses $ 511,735
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (194,198)
------------------------------------------------------------------------------------
Net expenses $ 317,537
------------------------------------------------------------------------------------
Net investment loss $ (53,880)
------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP CONTRACTS, WRITTEN SWAPTIONS, FUTURES
CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments $ 156,397
Swap contracts 77,933
Futures contracts (375,761)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 138,683 $ (2,748)
------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 69,671
Swap contracts 224
Written swaptions 115,204
Futures contracts (85,912)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 204,871 $ 304,058
------------------------------------------------------------------------------------
Net gain on investments, swap contracts, written swaptions,
futures contracts and foreign currency transactions $ 301,310
------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 247,430
====================================================================================
The accompanying notes are an integral part of these financial statements.
34 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------
12/31/13 (a)
to 8/31/14
----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment loss $ (53,880)
Net realized gain on investments, credit default swaps, futures contracts
and foreign currency transactions (2,748)
Change in net unrealized appreciation (depreciation) on investments,
swap contracts, written swaptions, futures contracts and foreign
currency transactions 304,058
----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 247,430
----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS: (b)
Net proceeds from sale of shares $ 25,836,911
Reinvestment of distributions --
Cost of shares repurchased (49,178)
----------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 25,787,733
----------------------------------------------------------------------------------------
Net increase in net assets $ 26,035,163
NET ASSETS:
Beginning of period $ --
----------------------------------------------------------------------------------------
End of period $ 26,035,163
----------------------------------------------------------------------------------------
Undistributed net investment income $ 536,247
========================================================================================
(a) Class A, Class C and Class Y Shares were first publicly offered on December
31, 2013.
(b) At August 31, 2014, PIM owned 96.0% of the value of the outstanding shares
of Pioneer Long/Short Opportunistic Credit Fund.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 35
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------
'14 Shares '14 Amount
--------------------------------------------------------------------------------
Class A*
Shares sold 895,300 $8,956,897
Reinvestment of distributions -- --
Less shares repurchased (991) (10,000)
--------------------------------------------------------------------------------
Net increase 894,309 $8,946,897
================================================================================
Class C*
Shares sold 836,825 $8,368,181
Reinvestment of distributions -- --
Less shares repurchased (1,423) (14,178)
--------------------------------------------------------------------------------
Net increase 835,402 $8,354,003
================================================================================
Class Y*
Shares sold 851,088 $8,511,833
Reinvestment of distributions -- --
Less shares repurchased (2,477) (25,000)
--------------------------------------------------------------------------------
Net increase 848,611 $8,486,833
================================================================================
* Class A, Class C and Class Y shares were first publicly offered on December
31, 2013.
The accompanying notes are an integral part of these financial statements.
36 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
Financial Highlights
--------------------------------------------------------------------------------
12/30/13
to 8/31/14
--------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.00
--------------------------------------------------------------------------------
Decrease from investment operations:
Net investment loss $ (0.01)
Net realized and unrealized gain on investments 0.12
--------------------------------------------------------------------------------
Net increase in net assets from investment operations $ 0.11
--------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.11
--------------------------------------------------------------------------------
Net asset value, end of period $ 10.11
================================================================================
Total return* 1.10%(a)
Ratio of net expenses to average net assets 1.70%**
Ratio of net investment loss to average net assets (0.15)%**
Portfolio turnover rate 100%**
Net assets, end of period (in thousands) $ 9,040
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Total expenses 2.85%**
Net investment loss (1.30)%**
================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) Not annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 37
Financial Highlights (continued)
--------------------------------------------------------------------------------
12/30/13
to 8/31/14
--------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.00
--------------------------------------------------------------------------------
Decrease from investment operations:
Net investment loss $ (0.06)
Net realized and unrealized gain on investments 0.12
--------------------------------------------------------------------------------
Net increase in net assets from investment operations $ 0.06
--------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.06
--------------------------------------------------------------------------------
Net asset value, end of period $ 10.06
================================================================================
Total return* 0.60%(a)
Ratio of net expenses to average net assets 2.45%**
Ratio of net investment loss to average net assets (0.91)%**
Portfolio turnover rate 100%**
Net assets, end of period (in thousands) $ 8,403
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Total expenses 3.58%**
Net investment loss (2.04)%**
================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) Not annualized.
The accompanying notes are an integral part of these financial statements.
38 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
--------------------------------------------------------------------------------
12/30/13
to 8/31/14
--------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $10.00
--------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.01(a)
Net realized and unrealized gain on investments 0.12
--------------------------------------------------------------------------------
Net increase in net assets from investment operations $ 0.13
--------------------------------------------------------------------------------
Net increase in net asset value $ 0.13
--------------------------------------------------------------------------------
Net asset value, end of period $10.13
================================================================================
Total return* 1.30%(b)
Ratio of net expenses to average net assets 1.45%**
Ratio of net investment income to average net assets 0.10%**(a)
Portfolio turnover rate 100%**
Net assets, end of period (in thousands) $8,592
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Total expenses 2.58%**
Net investment loss (1.03)%**
================================================================================
* 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.
** Annualized.
(a) The amount shown for a share outstanding does not correspond to the Net
Investment Loss on the Statement of Operations due to the timing of sales
and repurchases of shares. (b) Not annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 39
Notes to Financial Statements | 8/31/14
1. Organization and Significant Accounting Policies
Pioneer Long/Short Opportunistic Credit Fund (the Fund) is one of five
portfolios comprising Pioneer Series Trust V, a Delaware statutory trust. The
Fund is registered under the Investment Company Act of 1940 as a diversified,
open-end management investment company. The Fund's investment objective is to
seek total return.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Class A, Class C and Class Y shares were first publicly offered on
December 31, 2013. 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 the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
40 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Senior
floating rate loan interests (senior loans) 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 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. Fixed income securities with
remaining maturity of more than sixty days are valued at 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. Valuations may be supplemented by dealers
and other sources, as required. Equity securities that have traded on an
exchange are valued at 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. Short-term
fixed income securities with remaining maturities of sixty days or less
generally are valued at amortized cost. Shares of money market mutual funds
are valued at such funds' net asset value.
Trading in foreign 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.
Securities or loan interests for which independent pricing services 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 Pioneer Investment
Management, Inc. (PIM), the Fund's investment advisor, pursuant to
procedures adopted by the Fund's Board of Trustees. PIM's fair valuation
team uses fair value methods approved by 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.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 41
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.
PIM'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.
At August 31, 2014, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services or broker-dealers).
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 debt securities are accreted/amortized for finan-
cial reporting purposes over the life of the respective securities, and such
accretion/amortization is included in interest income.
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 is recorded on the
accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in the market price of those securities but are included
with the net realized and unrealized gain or loss on investments.
42 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
C. 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 August 31, 2014 was $449,996. 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 gains or losses. 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. The use of futures
contracts involves to varying degrees, element of market, interest rate,
currency exchange rate and counterparty risks, which may exceed the amount
recognized by the Fund. Changes in value of the contracts may not directly
correlate to the changes in value of the underlying securities. The average
value of contracts open during the period ended August 31, 2014 was
$17,135,726.
At August 31, 2014, open futures contracts were as follows:
---------------------------------------------------------------------------------------
Number of
Contracts Settlement Unrealized
Type Long/(Short) Month Value (Depreciation)
---------------------------------------------------------------------------------------
F/C Euro BTP Future 10 12/14 $ 1,698,810 $ (1,551)
F/C 90 Day Euro Future (79) 6/17 (19,274,025) (21,790)
U.S. 5 Year Note (CBT) (14) 9/14 (1,676,063) (4,188)
F/C S&P 500 (26) 9/14 (2,601,820) (58,383)
---------------------------------------------------------------------------------------
$(21,853,098) $ (85,912)
=======================================================================================
D. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation is
recorded in the Fund's financial statements. The Fund records realized gains
and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 43
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distrib-
ute all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
August 31, 2014, the Fund did not accrue any interest or penalties with
respect to unrecognized tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years remain subject to examination by
federal and state tax authorities.
The amount and character of income and capital gain distributions to share-
owners are determined in accordance with federal income tax rules, which may
differ from U.S. generally accepted accounting principles. Distributions in
excess of net investment income or net realized gains are temporary
overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences. At
August 31, 2014, the Fund reclassified $590,127 to increase undistributed
net investment income, $564,139 to increase accumulated net realized gain on
investments, foreign currency transactions, swap contracts and futures
contracts and $25,988 to decrease paid-in capital to reflect permanent
book/tax differences. These adjustments have no impact on the net assets or
results of operations.
At August 31, 2014, the Fund was permitted to carry forward $501,757 of
short-term losses and $149,967 of long-term losses without limitation.
There were no distributions paid during the fiscal year ended August 31,
2014.
The following shows the components of distributable earnings (losses)
on a federal income tax basis at August 31, 2014:
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $820,428
Capital loss carryforward (651,754)
Unrealized appreciation 104,744
----------------------------------------------------------------------------
Total $273,418
============================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of the losses on wash sales, adjustments
relating to catastrophe bonds and credit default swaps and the mark to
market of forwards, swaps and future contracts.
44 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $294 in underwriting commissions on the sale of Class A shares during
the period ended August 31, 2014.
G. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), 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).
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 invest-
ment income dividends to Class A, Class C and Class Y shares can reflect
different transfer agent and distribution expense rates.
H. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. 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 prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
I. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may 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 Fund 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
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 45
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.
When the Fund enters into a credit default swap contract, the protection
buyer, makes an up front payment to the protection seller in exchange for
the rights to receive a contingent payment. An up front payment made by the
Fund, as the protection buyer, is recorded as an asset in the Statement of
Assets and Liabilities. Periodic payments received or paid by the Fund are
recorded as realized gains or losses in the Statement of Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Payments received or made as a result of a credit event or upon
termination of the contract are recognized, net of the appropriate amount
of the upfront payment, as realized gains or losses in the Statement of
Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Open credit default swap contracts at August 31, 2014 are listed in the
Schedule of Investments. The average value of credit default swap contracts
open during the period ended August 31, 2014 was $442,882.
46 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
J. Interest Rate Swap Contracts
The Fund may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance its income. Pursuant to the
interest rate swap agreement, the Fund negotiates with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly basis.
Periodic payments received or paid by the Fund are recorded as realized
gains or losses in the Statement of Operations. Interest rate swap contracts
are marked-to-market daily using valuations supplied by independent sources
and the change in value, if any, is recorded as unrealized appreciation or
depreciation in the Statement of Assets and Liabilities. Interest rate
swap contracts are subject to counterparty risk and movements in interest
rates.
Open interest rate swap contracts at August 31, 2014 are listed in the
Schedule of Investments. The average value of interest swap swap contracts
open during the period ended August 31, 2014 was $25,808.
K. Credit Default Swaption Writing
The Fund may write put and covered call swaptions on portfolio securities in
order to attempt to hedge against changes in the value of portfolio
securities or to seek to increase total return. When a swaption 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 swaption.
When the Fund writes an swaption, an amount equal to the premium received by
the Fund is recorded as a liability and is subsequently adjusted to the
current value of the swaption written. Premiums received from writing
swaptions that expire unexercised are treated by the Fund on the expiration
date as realized gains from investments. 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, or, if the
premium is less than the amount paid for the closing purchase transaction,
as a realized loss. If a call swaption 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 a
swaption bears the market risk of an unfavorable change in the price of the
security underlying the written swaption.
The average value of contracts open during the period ended August 31, 2014
was $33,638. Written swaption contracts outstanding at period end are listed
at the end of the Fund's schedule of investments.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 47
The Fund held two written swaption contracts that were open at August 31,
2014. If the swaptions were exercised at August 31, 2014, the maximum amount
the Fund would have been required to pay was $19,436.
Transactions in written swaptions for the period ended August 31, 2014 are
summarized as follows:
----------------------------------------------------------------------------
Number of Premiums
Contracts Received
----------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options opened (10,200,000) 134,640
Options exercised -- --
Options closed -- --
Options expired -- --
----------------------------------------------------------------------------
Options outstanding at end of period (10,200,000) $ 134,640
============================================================================
L. Purchased Credit Default Swaptions
The Fund may purchase put and call swaptions in order to attempt to hedge
against changes in the value of portfolio securities or to seek to increase
total return. Purchased call and put swaptions 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 swaption, the
premium paid by the Fund is included in the Statement of Assets and
Liabilities as an investment. All premiums are marked-to-market daily, and
any unrealized gains or losses are recorded in the Fund's financial
statements. As the purchaser of an index swaption, 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 swaption (in the case of a put) or equal to
any appreciation in the value of the index over the strike price of the
swaption (in the case of a call) as of the valuation date of the swaption.
Premiums paid for purchased calls and put swaptions which have expired are
treated as realized losses on investments in the Statement of Operations.
Upon the exercise or closing of a purchased put swaption, 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 swaption,
the premium is added to the cost of the security or financial instrument.
The risk associated with purchasing swaptions is limited to the premium
originally paid. The average value of contracts open during the period ended
August 31, 2014 was $33,853. Purchased swaptions open at period end are
listed at the end of the Fund's Schedule of Investments.
48 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at an annual rate of 1.15%
of the average daily net assets of the Fund up to $1 billion and 1.05% of
the Fund's average daily net assets over $1 Billion. For the period ended
August 31, 2014, the annualized management fee was equivalent to 1.15% of
the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the
extent required to reduce Fund expenses to 1.70%, 2.45% and 1.45% of the
average daily net assets attributable to Class A, Class C and Class Y
shares, respectively. These expense limitations are in effect through
January 1, 2015. Fees waived and expenses reimbursed during the period
ended August 31, 2014 are reflected on the Statement of Operations. Fees
and expenses of other investment companies in which the Fund may invest are
not included in the expense limitations noted above. There can be no
assurance that PIM 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 $27,093 in management fees, administrative costs and certain
other reimbursements payable to PIM at August 31, 2014.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the period ended August 31, 2014, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $377
Class C 50
Class Y 45
--------------------------------------------------------------------------------
Total $472
================================================================================
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 49
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $22 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at August 31, 2014.
4. Distribution Plan
The Fund has adopted a Distribution 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 PFD 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 PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $1,167 in distribution fees payable to
PFD at August 31, 2014.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y. Proceeds from the CDSCs are paid to PFD. For the period
ended August 31, 2014, no CDSCs were paid to PFD.
5. Forward Foreign Currency Contracts
At August 31, 2014, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the period ended August 31, 2014 was $5,090,672.
50 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
Open forward foreign currency contracts at August 31, 2014 were as follows:
--------------------------------------------------------------------------------------------------
Net Net Unrealized
Contracts to In Exchange Settlement US $ Value Appreciation
Currency Deliver For Date at 8/31/14 (Depreciation)
--------------------------------------------------------------------------------------------------
AUD (Australian Dollar) $ (414,810) (381,263) 9/4/14 $ (387,137) $ (5,874)
CAD (Canadian Dollar) (381,973) (349,939) 9/4/14 (351,393) (1,454)
CAD (Canadian Dollar) (137,386) (129,180) 10/14/14 (126,269) 2,911
CAD (Canadian Dollar) (138,261) (129,472) 10/10/14 (127,085) 2,387
CHF (Swiss Franc) (497,120) (555,062) 9/4/14 (541,411) 13,651
CLP (Chilean Peso) (286,534,721) (516,232) 9/4/14 (488,415) 27,817
CZK (Czech Koruna) (14,549,990) (722,104) 9/4/14 (689,123) 32,981
EURO (European Euro) (189,514) (258,446) 9/15/14 (248,991) 9,455
EURO (European Euro) (809,649) (1,101,807) 9/4/14 (1,063,683) 38,124
EURO (European Euro) (893,301) (1,216,099) 9/15/14 (1,173,654) 42,445
EURO (European Euro) 1,101,440 1,471,639 10/24/14 1,447,484 (24,155)
EURO (European Euro) (1,116,032) (1,503,167) 10/24/14 (1,466,661) 36,506
EURO (European Euro) (843,000) (1,128,886) 10/24/14 (1,107,849) 21,037
GBP (British Pound Sterling) (326,231) (546,180) 9/4/14 (540,495) 5,685
HUF (Hungarian Forint) (77,897,436) (348,410) 9/4/14 (324,761) 23,649
IDR (Indonesian Rupiah) 3,346,905,250 279,725 9/4/14 286,259 6,534
INR Indian Rupee 39,364,377 656,182 9/4/14 650,436 (5,746)
JPY (Japanese Yen) (143,511,339) (1,406,966) 9/4/14 (1,378,664) 28,302
KRW (South Korean Won) 192,600,474 187,202 9/4/14 189,911 2,709
MXN (Mexican Peso) 7,029,725 540,465 9/4/14 537,671 (2,794)
MXN (Mexican Peso) 1,679,686 129,180 10/14/14 128,132 (1,048)
NOK (Norwegian Krone) 2,607,016 433,083 9/4/14 420,391 (12,692)
NZD (New Zealand Dollar) 1,094,386 919,481 9/4/14 914,601 (4,880)
NZD (New Zealand Dollar) (571,751) (493,245) 9/4/14 (477,824) 15,421
PLN (Polish Zloty) 1,127,380 368,298 9/4/14 351,816 (16,482)
RUB(Russian Ruble) 9,000,099 252,812 9/4/14 242,489 (10,323)
SEK (Swedish Krona) 151 23 9/4/14 22 (1)
SGD (Singapore Dollar) (685,298) (545,700) 9/4/14 (548,655) (2,955)
TRY (Turkish Lira) (412,394) (191,910) 9/4/14 (190,705) 1,205
TWD (New Taiwan Dollar) (10,927,147) (364,275) 9/4/14 (365,752) (1,477)
ZAR (South African Rand) (1,341,599) (124,128) 9/4/14 (125,692) (1,564)
ZAR (South African Rand) (1,358,778) (124,222) 9/4/14 (127,302) (3,080)
$216,294
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 51
6. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the period ended August 31, 2014, the Fund's expenses
were not reduced under such arrangements.
7. Assets and Liabilities
Offsetting Financial instruments subject to an enforceable master netting
agreement have been offset on the Statement of Assets and Liabilities. The
following charts show gross assets and liabilities of the Fund as of August 31,
2014.
-----------------------------------------------------------------------------------------------
Assets:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Assets Assets and Liabilities
Gross Statement Presented in -------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received* Amount
----------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $310,819 $ (94,525) $216,294 $ -- $ -- $216,294
Written
swaptions -- -- -- -- -- --
Swap contracts 293,433 (293,209) 224 -- -- 224
----------------------------------------------------------------------------------------------
$604,252 $(387,734) $216,518 $ -- $ -- $216,518
==============================================================================================
----------------------------------------------------------------------------------------------
Liabilities:
Gross
Amounts Net Gross Amounts Not Offset
Offset Amounts of in the Statement of
in the Liabilities Assets and Liabilities
Gross Statement Presented in -------------------------
Amounts of of Assets the Statement Cash
Recognized and of Assets and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Pledged* Amount
----------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 94,525 $ (94,525) $ -- $ -- $ -- $ --
Written
swaptions 19,436 -- 19,436 -- -- 19,436
Swap contracts 293,209 (293,209) -- -- -- --
----------------------------------------------------------------------------------------------
$(407,170) $(387,734) $ 19,436 $ -- $ -- $19,436
==============================================================================================
* 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.
52 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
8. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of August, 31, 2014 were as follows:
------------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives 2014 Liabilities Derivatives 2014
Hedging Instruments -------------------------------- ----------------------------
Under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
------------------------------------------------------------------------------------------------
Forward foreign Net unrealized Net unrealized
currency contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $216,294 currency contracts $ --
Swap contracts Net unrealized Net unrealized
appreciation on depreciation on
swap contracts 224 swap contracts --
Written swaptions Net unrealized Net unrealized
appreciation on depreciation on
written swaptions -- written swaptions 19,436
Futures contracts* Net unrealized Net unrealized
appreciation on depreciation on
futures contracts -- futures contracts 85,912
------------------------------------------------------------------------------------------------
Total $216,518 $105,348
================================================================================================
* Reflects unrealized appreciation/depreciation of futures contracts (see Note
1C). The current day's variation margin is disclosed on the Statement of
Assets and Liabilities.
The effect of derivative instruments on the Statement of Operations for the
period ended August 31, 2014 was as follows:
------------------------------------------------------------------------------------------------------
Change in
Derivatives Not Realized Unrealized
Accounted for as Gain or Appreciation or
Hedging Instruments (Loss) on (Depreciation)
Under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
------------------------------------------------------------------------------------------------------
Forward foreign Net realized gain (loss) on forward
currency contracts foreign currency contracts $ 143,919
Forward foreign Change in unrealized appreciation
currency contracts (depreciation) on forward foreign
currency contracts $216,294
Written swaptions Change in unrealized appreciation
(depreciation) on written swaptions $115,204
Futures contracts Net realized gain (loss) on
futures contracts $(375,761)
Futures contracts Change in net unrealized appreciation
(depreciation) on futures contracts $(85,912)
Swap contracts Net realized gain (loss) on
swap contracts $ 77,933
Swap contracts Change in net unrealized appreciation
(depreciation) on swap contracts $ 224
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 53
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V and the Shareowners of
Pioneer Long/Short Opportunistic Credit Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Long/Short Opportunistic Credit Fund (the "Fund"), one of the portfolios
constituting Pioneer Series Trust V, including the schedule of investments, as
of August 31, 2014, and the related statements of operations and changes in net
assets, and the financial highlights for the period December 30, 2013,
(commencement of operations) through August 31, 2014. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of August 31, 2014, by correspondence with the custodian,
brokers and agent banks; where replies were not received from brokers, we
performed other auditing procedures. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Long/Short Opportunistic Credit Fund as of August 31, 2014, and the
results of its operations, the changes in its net assets, and the financial
highlights for the period December 30, 2013, (commencement of operations)
through August 31, 2014, in conformity with accounting principles generally
accepted in the United States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
October 29, 2014
54 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least the past five years. Trustees who are interested
persons of the Fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the Fund are
referred to as Independent Trustees. Each of the Trustees serves as a Trustee of
each of the 53 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 55
Independent Trustees
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (63) Trustee since 2013. Private investor (2004-2008 and Director, Broadridge Financial
Chairman of the Board Serves until a 2013-present); Chairman (2008 - Solutions, Inc. (investor
and Trustee successor trustee is 2013) and Chief Executive Officer communications and securities
elected or earlier (2008 - 2012), Quadriserv, Inc. processing provider for financial
retirement or removal. (technology products for securities services industry) (2009 - present);
lending industry); and Senior Director, Quadriserv, Inc. (2005 -
Executive Vice President, The Bank 2013); and Commissioner, New Jersey
of New York (financial and State Civil Service Commission (2011
securities services) (1986 - 2004) - present)
--------------------------------------------------------------------------------------------------------------------------------
David R. Bock (70) Trustee since 2013. Managing Partner, Federal City Director of Enterprise Community
Trustee Serves until a Capital Advisors (corporate advisory Investment, Inc. (privately held
successor trustee is services company) (1997 - 2004 and affordable housing finance company)
elected or earlier 2008 - present); Interim Chief (1985 - 2010); Director of Oxford
retirement or removal. Executive Officer, Oxford Analytica, Analytica, Inc. 2008 - present);
Inc. (privately held research and Director of The Swiss (Helvetia Fund,
consulting company) (2010); Inc. (closed-end fund) (2010 -
Executive Vice President and Chief present); and Director of New York
Financial Officer, I-trax, Inc. Mortgage Trust (publicly traded
(publicly traded health care mortgage REIT) (2004 - 2009, 2012 -
services company) (2004 - 2007); and present)
Executive Vice President and Chief
Financial Officer, Pedestal Inc.
(internet-based mortgage trading
company) (2000 - 2002)
--------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (70) Trustee since 2013. William Joseph Maier Professor of Trustee, Mellon Institutional Funds
Trustee Serves until a Political Economy, Harvard Investment Trust and Mellon
successor trustee is University (1972 - present) Institutional Funds Master Portfolio
elected or earlier (oversaw 17 portfolios in fund
retirement or removal. complex) (1989-2008)
--------------------------------------------------------------------------------------------------------------------------------
56 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (67) Trustee since 2013. Founding Director, Vice President None
Trustee Serves until a and Corporate Secretary, The
successor trustee is Winthrop Group, Inc. (consulting
elected or earlier firm) (1982 - present); Desautels
retirement or removal. Faculty of Management, McGill
University (1999 - present); and
Manager of Research Operations and
Organizational Learning, Xerox PARC,
Xerox's advance research center
(1990-1994)
--------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (66) Trustee since 2013. President and Chief Executive Director of New America High Income
Trustee Serves until a Officer, Newbury, Piret & Company, Fund, Inc. (closed-end investment
successor trustee is Inc. (investment banking firm) (1981 company) (2004 - present); and
elected or earlier - present) member, Board of Governors,
retirement or removal. Investment Company Institute (2000 -
2006)
--------------------------------------------------------------------------------------------------------------------------------
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 57
Interested Trustees
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (56)* Trustee since 2014. Director and Executive Vice President (since 2008) None
Trustee Serves until a and Chief Investment Officer, U.S. (since 2010), of
successor trustee is PIM-USA; Executive Vice President of Pioneer (since
elected or earlier 2008); Executive Vice President of Pioneer
retirement or Institutional Asset Management, Inc. (since 2009);
removal. Portfolio Manager of Pioneer (since 1999)
--------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer of the Fund's
investment adviser and certain of its affiliates.
58 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
Fund Officers
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
--------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (52) Since 2014. Serves at Chair, Director, CEO and President of Pioneer None
President and the discretion of the Investment Management USA (since September 2014);
Chief Executive Officer Board. Chair, Director, CEO and President of Pioneer
Investment Management, Inc. (since September 2014);
Chair, Director, CEO and President of Pioneer Funds
Distributor, Inc. (since September 2014); Chair,
Director, CEO and President of Pioneer Institutional
Asset Management, Inc. (since September 2014); and
Chair, Director, and CEO of Pioneer Investment
Management Shareholder Services, Inc. (since
September 2014); Managing Director, Morgan Stanley
Investment Management (2010 - 2013); Director of
Institutional Business, CEO of International, Eaton
Vance Management (2005 - 2010)
--------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (49) Since 2013. Serves at Vice President and Associate General Counsel of None
Secretary and Chief the discretion of the Pioneer since January 2008; Secretary and Chief
Legal Officer Board. 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 Pioneer from July
2002 to December 2007
--------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (53) Since 2013. Serves at Fund Governance Director of Pioneer since December None
Assistant Secretary the discretion of the 2006 and Assistant Secretary of all the Pioneer
Board. Funds since June 2010; Manager - Fund Governance of
Pioneer from December 2003 to November 2006; and
Senior Paralegal of Pioneer from January 2000 to
November 2003
--------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (51) Since 2013. Serves at Senior Counsel of Pioneer since May 2013 and None
Assistant Secretary the discretion of the Assistant Secretary of all the Pioneer Funds since
Board. June 2010; Counsel of Pioneer from June 2007 to May
2013
--------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (54) Since 2013. Serves at Vice President - Fund Treasury of Pioneer; Treasurer None
Treasurer and Chief the discretion of the of all of the Pioneer Funds since March 2008; Deputy
Financial and Accounting Board. Treasurer of Pioneer from March 2004 to February
Officer of the Fund 2008; and Assistant Treasurer of all of the Pioneer
Funds from March 2004 to February 2008
--------------------------------------------------------------------------------------------------------------------------------
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14 59
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
--------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (49) Since 2013. Serves at Director - Fund Treasury of Pioneer; and Assistant None
Assistant Treasurer the discretion of the Treasurer of all of the Pioneer Funds
Board.
--------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (56) Since 2013. Serves at Fund Accounting Manager - Fund Treasury of Pioneer; None
Assistant Treasurer the discretion of the and Assistant Treasurer of all of the Pioneer Funds
Board.
--------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (34) Since 2013. Serves at Fund Administration Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Pioneer since November 2008; Assistant Treasurer of
Board. all of the Pioneer Funds since January 2009; and
Client Service Manager - Institutional Investor
Services at State Street Bank from March 2003 to
March 2007
--------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (61) Since 2013. Serves at Chief Compliance Officer of Pioneer and of all the None
Chief Compliance Officer the discretion of the Pioneer Funds since March 2010; Director of Adviser
Board. and Portfolio Compliance at Pioneer since October
2005; and Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to
October 2005
--------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (43) Since 2013. Serves at Director - Transfer Agency Compliance of Pioneer and None
Anti-Money Laundering the discretion of the Anti-Money Laundering Officer of all the Pioneer
Officer Board. funds since 2006
--------------------------------------------------------------------------------------------------------------------------------
60 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 28081-00-1014
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
The audit services provided to the Trust were totaled
approximately $203,733 payable to Deloitte & Touche
LLP for the year ended August 31, 2014 and $62,148
were paid to the former auditor, Ernst & Young LLP
for the year ended August 31, 2013.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
There were no audit related fees and other fees for
the Trust payable to Deloitte & Touche LLP for
the year ended August 31, 2014 and no audit
related fees and other fees were paid to the former
auditor, Ernst & Young LLP for the year ended
Augusr 31, 2013.
(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.
Fees for tax compliance services, primarily for tax
returns, totaled approximately $42,100 payable to
Deloitte & Touche LLP for the year ended August 31,
2014 and $16,262 were paid to the former auditor, Ernst
& Young LLP for the year ended August 31, 2013.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
There were no audit related fees and other fees for
the Trust payable to Deloitte & Touche LLP for
the year ended August 31, 2014 and no audit
related fees and other fees were paid to the former
auditor, Ernst & Young LLP for the year ended
Augusr 31, 2013.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
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 August 31,
2014 and 2013, 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 $42,100
payable to Deloitte & Touche LLP for the year ended
August 31, 2014 and $16,262 were paid to the former
auditor, Ernst & Young LLP for the year ended August
31, 2013.
(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 Trust's audit committee of the Board of Trustees has
considered whether the provision of non-audit services
that were rendered to the Affiliates (as defined) that were
not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining
the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust V
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President and Chief Executive Officer
Date October 31, 2014
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 and Chief Executive Officer
Date October 31, 2014
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date October 31, 2014
* Print the name and title of each signing officer under his or her signature.