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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, 2014 through August 31, 2015
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
--------------------------------------------------------------------------------
Annual Report | August 31, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A ABRDX
Class C ARCBX
Class K ARBKX
Class Y ARBYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 29
Notes to Financial Statements 37
Report of Independent Registered Public Accounting Firm 56
Trustees, Officers and Service Providers 58
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 1
President's Letter
Dear Shareowner,
In the second half of 2015, two main issues have been dominating the attention
of global investors and policymakers alike, and shaping the current investment
environment: The Federal Reserve System's (the Fed's) deliberations over when to
begin normalizing interest rates in the U.S., and the increasing divergence in
economic activity around the globe. As 2015 began, market expectations were that
the Fed would likely begin raising interest rates by the middle of the year, but
a sluggish gross domestic product report in the first calendar quarter as well
as relatively benign inflation and wage growth contributed to the Fed's taking a
more cautionary approach and delaying the start of its rate-hike cycle. At the
same time, however, the U.S. labor market has continued its robust improvement,
moving the Fed closer to declaring victory on one of its main monetary policy
objectives -- full employment.
Meanwhile, global economic activity has continued to diverge, with developed
economies experiencing above-trend growth and most emerging markets economies
lagging the rest of the world. The slower pace of economic activity in the
emerging markets has been most evident in China, as the country's economy
continues to undergo a long, potentially painful adjustment from investment-led
growth to consumption-oriented growth. This divergence in global economic cycles
is likely to continue for some time, and we would expect an increased level of
volatility as global capital markets and policymakers adjust.
Pioneer Investments believes that investors in today's environment can
potentially benefit from the consistent and disciplined investment approach we
have used since our founding in 1928. We focus on identifying value across
global markets using proprietary research, careful risk management, and a
long-term perspective. Our ongoing goal is to produce compelling returns
consistent with the stated objectives of our investment products, and with our
shareowners' expectations. We believe our shareowners can benefit from the
experience and tenure of our investment teams as well as the insights generated
from our extensive research process.
2 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short-and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
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 | 8/31/15 3
Portfolio Management Discussion | 8/31/15
In the following interview, portfolio managers Tanguy Le Saout and Cosimo
Marasciulo discuss the factors that influenced Pioneer Absolute Return Bond
Fund's performance during the 12-month period ended August 31, 2015, 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 How did the Fund perform during the 12-month period ended August 31, 2015?
A Pioneer Absolute Return Bond Fund's Class A shares returned -1.24% at net
asset value during the 12-month period ended August 31, 2015, while the
Fund's benchmark, the Bank of America Merrill Lynch (BofA ML) 3-Month U.S.
Treasury Bill Index, returned 0.03%. During the same period, the average
return of the 231 mutual funds in Lipper's Alternative Credit Focus Funds
category was -2.22%, and the average return of the 418 mutual funds in
Morningstar's Non-Traditional Bond Funds category was -1.38%.
Q Can you provide an overview of the Fund's investment approach?
A The big picture is that we aim to have the Fund's annualized return exceed
that of three-month Treasury bills, while targeting portfolio volatility
that is similar to that of T-bills as well. To achieve this, we seek to
provide positive absolute Fund returns, regardless of market conditions.
Obviously, if we are going to be successful in achieving our goals, 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 is currently invested in three-month
Treasury bills. This part of the portfolio effectively aims to match the
return of the BofA ML Index benchmark. For the remainder of the portfolio,
an overlay approach is utilized, based on investments in a wide variety of
lowly correlated, highly diversified securities which we believe are
sources of potential return for the Fund. Each of those investments is
designed to provide the Fund with alpha, or excess return. (Alpha measures
risk-adjusted performance, representing excess return relative to the
return of the benchmark.)
4 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
The overlay approach is mainly implemented via investments in derivatives;
however, in cases where derivatives cannot be used, the remaining 30% of
the portfolio's "alpha-geared" investments can be allocated into bonds,
each of which is focused on a different segment of the fixed-income market.
Importantly, each investment in the "alpha" sleeve of the Fund's portfolio
seeks to benefit from both positive and negative market returns. 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. 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.
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 Can you review the investment strategies that detracted from the Fund's
performance during the 12-month period ended August 31, 2015?
A The Fund's underperformance of the benchmark during the period was
attributable to a few factors. First, the portfolio was short two- and
five-year U.S. Treasuries early in the period in anticipation of rising
interest rates due to solidifying market expectations with respect to
future rate hikes by the U.S. Federal Reserve System (the Fed). The short
positions detracted from performance as interest rates in the U.S. made an
unprecedented intra-day roundtrip journey in mid-October 2014, declining
sharply on a wave of disappointing economic data releases before bouncing
back close to their starting point. We closed the short positions at a loss
to the Fund prior to the rebound in rates as the period progressed.
Also, the Fund's interest-rate exposure in Europe detracted from
performance during the 12-month period. We had decided to go short in the
portfolio on longer-term rates, which then declined when the European
Central Bank (ECB) announced plans to implement a quantitative easing (QE)
sovereign-bond purchase program. We closed that position at a loss pursuant
to the Fund's risk-management guidelines. We did, however, subsequently
reinstate the position, which added some value to performance over the last
several weeks of the period.
Finally, the portfolio's positioning with respect to inflation was another
meaningful detractor from Fund performance during the period. We took a
position based on the view that the market was overly pessimistic with
* Diversification does not assure a profit nor protect against loss.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 5
respect to global inflation levels, especially given the ECB's announcement
regarding its QE program designed to stimulate economic activity. However,
the steep decline in oil prices during the 12-month period led to a
lowering of market inflation expectations, a development which caused the
portfolio's inflation stance to hurt Fund performance.
Q Can you review the investment strategies that benefited the Fund's
performance during the 12-month period ended August 31, 2015?
A In addition to the core position in three-month Treasuries, we established
a number of different positions across the alpha portion of the portfolio.
The Fund's relative-value positions were the leading positive contributors
to returns over the 12 months. In particular, the Fund had a position
designed to benefit from a narrowing in market expectations regarding the
future spread between European five-year interest rates versus U.S. and
Swiss five-year rates. The position contributed to the Fund's performance
as Swiss rates fell on the news that the country's central bank would
discontinue efforts to cap the value of the Swiss currency against the
euro. Another investment strategy that worked well for the Fund during the
period was based on a quantitative model which looks at the price action on
10-year and five-year German bonds in order to determine when to go long or
short on the 10-year issue. Pursuant to the model, the Fund was long the
10-year German bond for much of the period as German rates fell, and then
we moved to a short position just in time for the Fund's performance to
benefit when rates backed up late in the period. A successful example of
this strategy was our decision to pair a long position in the Norwegian
10-year bond with a short position in the German 10-year bond, in
anticipation that investors would seek AAA-rated issues outside of
low-yielding Germany in the wake of the ECB's announcement of its QE
program.
Finally, we utilized a derivatives-based approach to gain portfolio
exposure to the Chinese five-year sovereign bond, which allowed the Fund's
performance to benefit as the Chinese government devalued its currency late
in the period and interest rates in the country declined.
6 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
Q Please discuss the role of derivatives in implementing the Fund's
investment approach and their impact on the Fund's performance during the
12-month period ended August 31, 2015.
A Virtually all of the Fund's strategies are implemented via derivatives, and
so the Fund's performance will always be influenced by the use of such
securities. For instance, when we want to short U.S. Treasuries in the
portfolio, we will do so mainly by selling Treasury futures, or sometimes
by buying "put" options. (A "put" option is a contractual agreement that
gives the contract owner the right, but not the obligation, to sell a
security at a pre-determined, fixed price for a certain period of time,
regardless of the current market price of that security.)
Similarly, with the portfolio's currency investments, we use forward
contracts and options to gain the desired exposures. With respect to credit
markets where there are no liquid futures contracts, we may use credit
default swaps to manage the portfolio's exposures. In other situations, we
utilize instruments such as interest-rate or inflation swaps to implement
our investment views.
Q What is your assessment of the current macroeconomic climate and the
opportunities it may present?
A Looking at the U.S. economy, the employment picture has improved notably.
We also believe upward pressure on wages is building and should follow the
employment numbers before long. As such, our view is that there is little
justification for the Fed to maintain a zero-interest-rate approach at this
point, though market pressures may cause it to further delay any increase.
Market participants appear to have become somewhat complacent with respect
to the extent and pace of interest-rate increases once the Fed begins to
move forward with raising them.
Under these circumstances, we see little value in bonds, and so the Fund
was short U.S. Treasuries as of the end of August. Higher U.S. rates could
support another move upward for the U.S. dollar versus other major
currencies, after its recent softening. At current yield levels, European
bonds do not reflect much in the way of inflation or term premiums, however
we believe the ECB's intervention is likely to have much of its desired
impact on the region's economy, leading to higher growth. In particular,
German bond yields are exceptionally low and the Fund was short that market
at the end of the 12-month period. We have also positioned the Fund to
potentially benefit from an uptick in U.K. rates if the Bank of England
begins to tighten its monetary policy. With respect to peripheral European
Union (E.U.) countries such as Italy and Spain, we view yield spreads
(yield differences) versus the sovereign bonds of the core E.U. nations as
overly tight.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 7
China has dominated the headlines of late, and we believe there is reason
for concern about the outlook for its economy as the government seeks to
reform and modernize over time, while maintaining growth at adequate
levels. Should Chinese economic growth ease further, we could see
additional currency devaluation, despite the government's protestations to
the contrary.
These are among the macroeconomic factors we will monitor closely as we
seek to inform the various positions implemented within the alpha portion
of the Fund's portfolio.
Please refer to the Schedule of Investments on pages 18-28 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.
8 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
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.
The Fund may invest in event-linked bonds and other insurance-linked securities.
The return of principal and the payment of interest on insurance-linked
securities 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. Past performance is no
guarantee of future results.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 9
Portfolio Summary | 8/31/15
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 64.4%
Foreign Government Bonds 32.3%
Swaptions 3.1%
Options 0.2%
Geographical Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
United States 67.7%
Spain 12.5%
Germany 7.4%
Ireland 4.6%
Italy 4.0%
Japan 2.2%
Norway 1.6%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. U.S. Treasury Bills, 1/7/16 21.93%
--------------------------------------------------------------------------------
2. U.S. Treasury Bills, 7/21/16 21.78
--------------------------------------------------------------------------------
3. U.S. Treasury Bills, 11/12/15 12.99
--------------------------------------------------------------------------------
4. Spain Letras del Tesoro, 2/19/16 10.27
--------------------------------------------------------------------------------
5. U.S. Treasury Bills, 3/3/16 7.69
--------------------------------------------------------------------------------
6. Deutsche Bundesrepublik Inflation Linked Bond, 0.1%, 4/15/23 5.53
--------------------------------------------------------------------------------
7. Italy Buoni Poliennali Del Tesoro, 2.35%, 9/15/19 2.78
--------------------------------------------------------------------------------
8. Spain Government Bond, 5.15%, 10/31/44 2.27
--------------------------------------------------------------------------------
9. Japanese Government CPI Linked Bond, 0.1%, 9/10/23 2.08
--------------------------------------------------------------------------------
10. Ireland Government Bond, 3.4%, 3/18/24 1.71
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
Due to the exclusion of derivatives, the list may not represent the Fund's
market exposures. See the Schedule of Investments. 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 Absolute Return Bond Fund | Annual Report | 8/31/15
Prices and Distributions | 8/31/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/15 8/31/14
--------------------------------------------------------------------------------
A $9.67 $9.88
--------------------------------------------------------------------------------
C $9.63 $9.84
--------------------------------------------------------------------------------
Y $9.69 $9.90
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/15 12/31/14**
--------------------------------------------------------------------------------
K $9.70 $9.64
--------------------------------------------------------------------------------
Distributions per Share: 9/1/14-8/31/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.0877 $-- $--
--------------------------------------------------------------------------------
C $0.0193 $-- $--
--------------------------------------------------------------------------------
K $ -- $-- $--
--------------------------------------------------------------------------------
Y $0.1125 $-- $--
--------------------------------------------------------------------------------
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 12-15.
** Share class commenced operations on December 31, 2014.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 11
Performance Update | 8/31/15 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 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 Annual Total Returns
(As of August 31, 2015)
--------------------------------------------------------------------------------
Net Public BofA ML
Asset Offering 3-Month
Value Price U.S. Treasury
Period (NAV) (POP) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -1.54% -4.35% 0.03%
--------------------------------------------------------------------------------
1 Year -1.24 -5.72 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.61% 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
Dates Return Bond Fund US Treasury Bill Index
1/14 $9,550 $10,000
8/14 $9,436 $10,002
8/15 $9,320 $10,005
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, 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.
12 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
Performance Update | 8/31/15 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 Annual Total Returns
(As of August 31, 2015)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -2.23% -2.23% 0.03%
--------------------------------------------------------------------------------
1 Year -1.94 -1.94 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.35% 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
Dates Return Bond Fund US Treasury Bill Index
1/14 $10,000 $10,000
8/14 $ 9,840 $10,002
8/15 $ 9,649 $10,005
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.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 13
Performance Update | 8/31/15 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class K 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 Annual Total Returns
(As of August 31, 2015)
--------------------------------------------------------------------------------
Net BofA ML
Asset 3-Month
Value U.S. Treasury
Period (NAV) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -1.34% 0.03%
--------------------------------------------------------------------------------
1 Year -0.93 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Absolute BofA ML 3-month
Dates Return Bond Fund US Treasury Bill Index
1/14 $10,000 $10,000
8/14 $9,880 $10,002
8/15 $9,788 $10,005
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.
The performance shown for Class K shares for the period prior to the
commencement of operations of Class K shares on December 31, 2014, is the net
asset value performance of the Fund's Class A shares, which has not been
restated to reflect any differences in expenses, including Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares generally are higher
than those of Class K shares, the performance of Class K shares prior to their
inception would have been higher than the performance shown. For the period
beginning December 31, 2014, the actual performance of Class K shares is
reflected. Class K 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.
14 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
Performance Update | 8/31/15 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 Annual Total Returns
(As of August 31, 2015)
--------------------------------------------------------------------------------
Net BofA ML
Asset 3-Month
Value U.S. Treasury
Period (NAV) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -1.25% 0.03%
--------------------------------------------------------------------------------
1 Year -0.98 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.36% 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
Dates Return Bond Fund US Treasury Bill Index
1/14 $5,000,000 $5,000,000
8/14 $4,950,000 $5,001,045
8/15 $4,901,483 $5,002,358
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, 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 Absolute Return Bond Fund | Annual Report | 8/31/15 15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Absolute Return Bond Fund
Based on actual returns from March 1, 2015, through August 31, 2015.
------------------------------------------------------------------------------------------------------
Share Class A C K Y
------------------------------------------------------------------------------------------------------
Beginning Account
Value on 3/1/15 $1,000.00 $1,000.00 $1,000.00 $1,000.00
------------------------------------------------------------------------------------------------------
Ending Account
Value (after expenses)
on 8/31/15 $ 998.89 $ 995.84 $1,010.34 $1,001.01
------------------------------------------------------------------------------------------------------
Expenses Paid
During Period* $ 5.19 $ 8.95 $ 3.80 $ 3.78
------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.03%,
1.78%, 0.75% and 0.75% for Class A, Class C, Class K and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
16 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
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 Absolute Return Bond Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2015, through August 31, 2015.
-----------------------------------------------------------------------------------------------------
Share Class A C K Y
-----------------------------------------------------------------------------------------------------
Beginning Account
Value on 3/1/15 $1,000.00 $1,000.00 $1,000.00 $1,000.00
-----------------------------------------------------------------------------------------------------
Ending Account
Value (after expenses)
on 8/31/15 $1,020.01 $1,016.23 $1,021.42 $1,021.42
-----------------------------------------------------------------------------------------------------
Expenses Paid
During Period* $ 5.21 $ 9.05 $ 3.82 $ 3.82
-----------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.03%,
1.78%, 0.75% and 0.75% for Class A, Class C, Class K 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 Absolute Return Bond Fund | Annual Report | 8/31/15 17
Schedule of Investments | 8/31/15
----------------------------------------------------------------------------------------------------
Principal
Amount ($) Value
----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 64.2%
4,560,000 U.S. Treasury Bills, 1/7/16 (b) $ 4,558,198
2,700,000 U.S. Treasury Bills, 11/12/15 (b)(c) 2,699,946
1,600,000 U.S. Treasury Bills, 3/3/16 (b) 1,597,906
4,540,000 U.S. Treasury Bills, 7/21/16 (b) 4,526,094
-----------
$13,382,144
----------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $13,383,129) $13,382,144
----------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS -- 32.2%
EURO 987,791 Deutsche Bundesrepublik Inflation Linked Bond, 0.1%, 4/15/23 $ 1,149,206
EURO 161,922 Deutsche Bundesrepublik Inflation Linked Bond, 0.1%, 4/15/26 189,582
EURO 163,138 Deutsche Bundesrepublik Inflation Linked Bond, 0.1%, 4/15/46 192,567
EURO 259,000 Ireland Government Bond, 2.4%, 5/15/30 308,515
EURO 270,000 Ireland Government Bond, 3.4%, 3/18/24 355,686
EURO 220,000 Ireland Government Bond, 3.9%, 3/20/23 297,785
EURO 476,889 Italy Buoni Poliennali Del Tesoro, 2.35%, 9/15/19 578,493
EURO 166,000 Italy Buoni Poliennali Del Tesoro, 4.75%, 9/1/44 250,881
JPY 3,597,405 Japanese Government CPI Linked Bond, 0.1%, 3/10/24 31,384
JPY 49,632,000 Japanese Government CPI Linked Bond, 0.1%, 9/10/23 432,378
NOK 2,600,000 Norway Government Bond, 1.75%, 3/13/25 320,835
EURO 305,000 Spain Government Bond, 5.15%, 10/31/44 472,597
EURO 1,900,000 Spain Letras del Tesoro, 2/19/16 (b) 2,133,966
-----------
$ 6,713,875
----------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $6,966,854) $ 6,713,875
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
Principal Strike Expiration
Amount ($) Description Counterparty Price Date Value
----------------------------------------------------------------------------------------------------
CURRENCY CALL OPTIONS PURCHASED -- 0.1%
120,000 Call USD Put JPY Goldman Sachs & Co. 121.50 11/19/15 $ 2,013
230,000 Call USD Put CNY Barclays Plc 6.40 10/25/16 9,264
250,000 Call USD Put CNY Barclays Plc 6.40 10/25/16 10,070
250,000 Call USD Put CNY Deutsche Bank 6.40 10/25/16 10,070
----------------------------------------------------------------------------------------------------
$ 31,417
TOTAL CURRENCY CALL OPTIONS PURCHASED -----------
(Premiums paid $14,684) $ 31,417
----------------------------------------------------------------------------------------------------
CURRENCY PUT OPTIONS PURCHASED -- 0.1%
130,000 Put USD Call TRY Goldman Sachs & Co. 2.65 6/28/16 $ 394
280,000 Put USD Call JPY Barclays Plc 122.90 9/18/15 5,477
280,000 Put USD Call JPY Goldman Sachs & Co. 124.00 9/2/15 6,722
----------------------------------------------------------------------------------------------------
$ 12,593
TOTAL CURRENCY PUT OPTIONS PURCHASED -----------
(Premiums paid $5,387) $ 12,593
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
--------------------------------------------------------------------------------------------------------------
Principal Pay/ Floating Pay/ Fixed Expiration
Amount ($) Receive Rate Receive Rate Counterparty Date Value
--------------------------------------------------------------------------------------------------------------
INTEREST RATE SWAPTIONS PURCHASED -- 3.1%
500,000 Receive USD 10Y Pay 2.74% Morgan
Stanley Co. 3/9/17 $ 16,807
500,000 Pay USD 10Y Receive 2.74% Morgan
Stanley Co. 3/9/17 21,144
EURO 600,000 Receive EUR 10Y Pay 2.21% Goldman
Sachs & Co. 11/12/15 18
EURO 2,400,000 Receive EUR 10Y Pay 2.21% Goldman
Sachs & Co. 11/12/15 74
2,200,000 Receive USD 2Y Pay 1.65% Goldman
Sachs & Co. 11/9/15 219
EURO 600,000 Pay EUR 10Y Receive 0.80% Goldman
Sachs & Co. 11/12/15 1,001
2,250,000 Receive USD 2Y Pay 1.71% Morgan
Stanley Co. 2/23/16 2,222
EURO 900,000 Pay EUR 30Y Receive 0.80% Goldman
Sachs & Co. 1/26/46 3,457
EURO 2,400,000 Pay EUR 10Y Receive 0.80% Morgan
Stanley Co. 11/12/15 4,005
EURO 600,000 Receive EUR 10Y Pay 1.21% Goldman
Sachs & Co. 11/12/15 6,418
EURO 625,000 Pay EUR 10Y Receive 0.97% Morgan
Stanley Co. 2/13/17 9,789
2,250,000 Pay USD 2Y Receive 1.70% Morgan
Stanley Co. 2/23/16 24,534
EURO 2,400,000 Receive EUR 10Y Pay 1.21% Goldman
Sachs & Co. 11/12/15 25,670
2,200,000 Pay USD 2Y Receive 1.65% Goldman
Sachs & Co. 11/9/15 28,075
JPY 275,000,000 Receive JPY 5 Y Pay 0.96% Barclays Plc 5/22/20 34,732
EURO 625,000 Receive EUR 10Y Pay 0.97% Morgan
Stanley Co. 2/13/17 39,422
JPY 275,000,000 Pay JPY 5 Y Receive 0.96% Barclays Plc 5/22/20 44,772
1,000,000 Pay USD 30Y Receive 2.80% Goldman
Sachs & Co. 5/26/17 77,848
1,000,000 Receive USD 30Y Pay 2.80% Goldman
Sachs & Co. 5/26/17 93,721
EURO 900,000 Receive EUR 30Y Pay 0.80% Goldman
Sachs & Co. 1/22/16 208,219
--------------------------------------------------------------------------------------------------------------
TOTAL INTEREST RATE SWAPTIONS PURCHASED $ 642,147
-----------
(Premiums paid $619,217) $ 642,147
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.7%
(Cost $20,989,271) (a) $20,782,176
--------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 19
Schedule of Investments | 8/31/15 (continued)
--------------------------------------------------------------------------------------------------------------
Principal Pay/ Floating Pay/ Fixed Expiration
Amount ($) Receive Rate Receive Rate Counterparty Date Value
--------------------------------------------------------------------------------------------------------------
INTEREST RATE SWAPTIONS WRITTEN -- (1.7)%
EURO (2,500,000) Receive EUR 10Y Pay 0.56% Goldman
Sachs & Co. 1/26/26 $ (171,590)
GBP (600,000) Pay GBP 30Y Receive 2.30% Goldman
Sachs & Co. 5/26/17 (82,519)
GBP (600,000) Receive GBP 30Y Pay 2.30% Goldman
Sachs & Co. 5/26/17 (81,905)
EURO (1,200,000) Receive EUR 10Y Pay 1.71% Goldman
Sachs & Co. 11/12/15 1,029
EURO (4,800,000) Receive EUR 10Y Pay 1.71% Goldman
Sachs & Co. 11/12/15 (4,116)
EURO (2,500,000) Pay EUR 10Y Receive 0.56% Goldman
Sachs & Co. 1/22/16 (2,769)
-----------
$ (341,870)
--------------------------------------------------------------------------------------------------------------
TOTAL INTEREST RATE SWAPTIONS WRITTEN
(Premiums received $(325,169)) $ (341,870)
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Principal Strike Expiration
Amount ($) Description Counterparty Price Date Value
--------------------------------------------------------------------------------------------------------------
CURRENCY CALL OPTIONS WRITTEN -- (0.0)%+
(130,000) Call USD Put TRY Goldman Sachs & Co. 3.70 6/28/16 $ (3,180)
(80,000) Call USD Put TRY Credit Suisse 3.40 11/3/15 (243)
-----------
$ (3,423)
--------------------------------------------------------------------------------------------------------------
TOTAL CURRENCY CALL OPTIONS WRITTEN
(Premiums received $(3,339)) $ (3,423)
--------------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 2.0% $ 411,408
--------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $20,848,291
==============================================================================================================
+ Amount rounds to less than 0.1% or (0.1)%
(a) At August 31, 2015, the net unrealized depreciation on investments
based on cost for federal income tax purposes of $20,989,271 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 235,906
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (443,001)
----------
Net unrealized depreciation $ (207,095)
==========
(b) Security issued with a zero coupon. Income is earned through
accretion of discount. Principal amounts are denominated in U.S.
Dollars unless otherwise noted:
CNY New Chinese Yuan
EURO European Euro
GBP British Pound Sterling
JPY Japanese Yen
NOK Norwegian Krone
TRY Turkish Lira
(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.
20 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2015 aggregated $5,569,816 and $5,274,118, respectively.
CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
------------------------------------------------------------------------------------------------------
Net
Notional Obligation Expiration Premiums Unrealized
Principal ($) Counterparty Entity/Index Coupon Date Received Appreciation
------------------------------------------------------------------------------------------------------
(2,000,000) Morgan
Stanley Capital Kingdom of
Services LLC Spain 1.00% 6/20/20 $ (13,291) $ 912
------------------------------------------------------------------------------------------------------
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
------------------------------------------------------------------------------------------------------
Net
Notional Obligation Credit Expiration Premiums Unrealized
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date Paid Appreciation
------------------------------------------------------------------------------------------------------
EUR1,900,000 Intercontinental Markit iTraxx
Exchange Europe Index 1.00% A- 6/20/20 $25,097 $ 8,058
-------------------------------------------------------------------------------------------------------
(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 or weighted average
of all the underlying securities of the index.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EUR Euro
INFLATION RATE SWAP AGREEMENTS
-----------------------------------------------------------------------------------------------------------------
Net
Unrealized
Notional Pay/ Annual Expiration Appreciation
Principal ($) Counterparty Receive Index Fixed Rate Date (Depreciation)
-----------------------------------------------------------------------------------------------------------------
498,000 Credit Suisse International Pay USCPI 2.138% 3/3/19 $ 22,441
994,250 Credit Suisse International Pay USCPI 2.145% 2/7/19 43,225
EUR (320,000) Goldman Sachs
International Pay EUCPI 0.750% 3/3/20 (459)
EUR (140,000) Goldman Sachs
International Receive EUCPI 0.825% 12/5/19 (1,674)
EUR (600,000) Goldman Sachs
International Receive EUCPI 1.209% 2/5/25 (3,337)
EUR 600,000 Goldman Sachs
International Pay EUCPI 0.770% 2/5/20 2,453
EUR (320,000) Goldman Sachs
International Receive EUCPI 1.200% 3/3/25 142
EUR (367,500) Morgan Stanley Capital
Services LLC Receive EUCPI 1.238% 2/7/19 (15,488)
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 21
Schedule of Investments | 8/31/15 (continued)
INFLATION RATE SWAP AGREEMENTS (continued)
------------------------------------------------------------------------------------------------------------
Net
Unrealized
Notional Pay/ Annual Expiration Appreciation
Principal ($) Counterparty Receive Index Fixed Rate Date (Depreciation)
------------------------------------------------------------------------------------------------------------
EUR (181,000) Morgan Stanley Capital
Services LLC
EUR (575,000) Morgan Stanley Capital Receive EUCPI 1.210% 3/3/19 $ (7,524)
Services LLC
480,000 Morgan Stanley Capital Pay EUCPI 0.525% 1/20/20 (4,797)
Services LLC
EUR (310,000) Morgan Stanley Capital Pay USCPI 1.647% 2/20/20 3,273
Services LLC
338,000 Morgan Stanley Capital Receive EUCPI 0.728% 2/26/20 (514)
Services LLC
EUR 155,000 Goldman Sachs Pay USCPI 1.700% 12/5/19 11,173
International
EUR (155,000) Goldman Sachs Pay EUCPI 0.990% 3/30/20 1,911
International
EUR (275,000) Morgan Stanley Capital Receive EUCPI 1.345% 3/30/25 (2,502)
Services LLC
EUR (300,000) Morgan Stanley Capital Receive EUCPI 1.078% 5/22/19 (3,824)
Services LLC
EUR (900,000) Goldman Sachs Receive EUCPI 0.988% 5/29/19 (2,929)
International
GBP 650,000 Goldman Sachs Receive EUCPI 1.153% 6/9/20 (17,096)
International
EUR 510,000 Goldman Sachs Pay UKRPI 2.933% 6/5/20 13,684
International
EUR (598,000) Morgan Stanley Capital Pay EUCPI 1.548% 6/30/25 17,412
Services LLC
EUR 350,000 Goldman Sachs Pay EUCPI 0.853% 8/17/20 (1,651)
International
EUR (350,000) Goldman Sachs Pay EUCPI 0.839% 8/17/20 691
International
GBP 416,000 Morgan Stanley Capital Receive EUCPI 0.839% 8/17/25 (312)
Services LLC
EUR 200,000 Morgan Stanley Capital Pay UKRPI 2.865% 8/13/20 5,040
Services LLC
EUR (575,000) Morgan Stanley Capital Pay EUCPI 1.120% 8/26/25 (2,861)
Services LLC
Receive EUCPI 1.030% 1/20/25 7,194
------------------------------------------------------------------------------------------------------------
$ 63,671
============================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
EUCPI Eurostat Eurozone HICP Ex Tobacco Unrevised Series NSA
USCPI United States Consumer Price Index
UKRPI United Kingdom Retail Price Index
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
GBP British Pound Sterling
INTEREST RATE SWAP AGREEMENTS
---------------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Pay/ Floating Fixed Expiration Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
---------------------------------------------------------------------------------------------------------------
AUD (545,000) Morgan Stanley
Capital Services LLC Receive LIBOR AUD 3 Month 3.600% 10/16/24 $ (22,898)
AUD (588,500) Morgan Stanley
Capital Services LLC Receive LIBOR AUD 3 Month 3.280% 1/13/25 5,232
AUD (618,000) Morgan Stanley
Capital Services LLC Receive LIBOR AUD 3 Month 3.160% 2/5/25 8,132
AUD (655,000) Morgan Stanley
Capital Services LLC Receive LIBOR AUD 3 Month 3.240% 5/22/25 (11,330)
AUD (701,000) Morgan Stanley
Capital Services LLC Receive LIBOR AUD 3 Month 3.210% 7/23/25 (10,629)
EUR (1,930,000) Deutsche Bank Receive EURIBOR 6 Month 2.703% 7/9/23 (165,368)
EUR (970,000) Deutsche Bank Receive EURIBOR 6 Month 1.530% 12/15/64 (8,882)
EUR 400,000 Deutsche Bank Pay EURIBOR 6 Month 1.320% 2/16/55 (8,902)
EUR 300,000 Deutsche Bank Pay EURIBOR 6 Month 0.290% 2/26/20 (788)
EUR 140,000 Deutsche Bank Pay EURIBOR 6 Month 0.410% 12/5/19 852
EUR 1,105,000 Deutsche Bank Pay EONIA 1 Day
Interbank Rate 0.730% 3/20/45 (218,326)
EUR 691,000 Deutsche Bank Pay EONIA 1 Day
Interbank Rate 0.290% 3/20/25 (36,951)
EUR 200,000 Deutsche Bank Pay EONIA 1 Day
Interbank Rate 1.490% 3/20/45 2,372
EUR 1,310,000 Deutsche Bank Pay EONIA 1 Day
Interbank Rate 0.760% 11/25/24 (5,184)
EUR 1,460,000 Deutsche Bank Pay EONIA 1 Day
Interbank Rate 1.890% 7/27/35 (16,994)
EUR (1,375,000) Deutsche Bank Receive EURIBOR 6 Month 0.920% 3/20/45 252,741
EUR 275,000 Deutsche Bank Pay EURIBOR 6 Month 0.270% 5/22/19 71
EUR (300,000) Deutsche Bank Pay EURIBOR 6 Month 0.260% 5/29/19 (99)
EUR 2,650,000 Deutsche Bank Pay EURIBOR 6 Month 0.600% 6/9/19 9,837
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 23
Schedule of Investments | 8/31/15 (continued)
INTEREST RATE SWAP AGREEMENTS (continued)
----------------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Pay/ Floating Fixed Expiration Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
----------------------------------------------------------------------------------------------------------------
EUR 900,000 Deutsche Bank Pay EURIBOR 6 Month 0.520% 6/9/20 $ 5,857
EUR (250,000) Deutsche Bank Receive EURIBOR 6 Month 1.650% 3/20/45 (2,476)
EUR (450,000) Deutsche Bank Receive EURIBOR 6 Month 1.350% 1/26/26 (7,402)
EUR 310,000 Deutsche Bank Pay EURIBOR 6 Month 1.820% 12/15/54 2,952
EUR (230,000) Deutsche Bank Receive EURIBOR 6 Month 1.480% 12/15/64 (1,484)
EUR 1,000,000 Deutsche Bank Pay EURIBOR 6 Month 0.560% 7/14/19 2,171
EUR 125,000 Deutsche Bank Pay EURIBOR 6 Month 1.520% 2/15/27 1,348
EUR 598,000 Deutsche Bank Pay EURIBOR 6 Month 0.380% 8/17/20 (2,175)
EUR (510,000) Deutsche Bank Receive EURIBOR 6 Month 0.980% 2/16/65 10,779
EUR 184,000 Deutsche Bank Pay EURIBOR 6 Month 0.940% 3/3/19 5,866
EUR 372,500 Deutsche Bank Pay EURIBOR 6 Month 1.004% 2/7/19 13,172
EUR 660,000 Deutsche Bank Pay EURIBOR 6 Month 1.800% 12/15/54 5,368
GBP (1,100,000) Deutsche Bank Receive LIBOR GBP 6 Month 1.380% 2/5/19 2,864
GBP (1,100,000) Deutsche Bank Receive LIBOR GBP 6 Month 1.420% 2/8/19 788
GBP (340,000) Deutsche Bank Receive LIBOR GBP 6 Month 1.960% 5/5/25 (618)
GBP (665,000) Deutsche Bank Receive LIBOR GBP 6 Month 1.620% 6/5/20 (4,756)
GBP (434,000) Deutsche Bank Receive LIBOR GBP 6 Month 1.670% 8/13/20 (2,776)
GBP (350,000) Deutsche Bank Receive LIBOR GBP 6 Month 2.140% 8/20/45 5,343
INR 33,700,000 Barclays Bank Plc Pay Mumbai Interbank
Offer Rate 6.960% 2/12/17 (599)
INR (14,400,000) Barclays Bank Plc Receive Mumbai Interbank
Offer Rate 6.560% 2/12/20 4,552
INR 33,700,000 Goldman Sachs Mumbai Interbank
International Pay Offer Rate 6.820% 2/3/17 (3,523)
INR (14,400,000) Goldman Sachs Mumbai Interbank
International Receive Offer Rate 6.430% 2/3/20 5,392
INR 40,600,000 Morgan Stanley Mumbai Interbank
Capital Services LLC Pay Offer Rate 6.940% 2/26/17 (793)
INR 33,700,000 Morgan Stanley Mumbai Interbank
Capital Services LLC Pay Offer Rate 6.930% 2/4/17 (906)
INR (14,400,000) Morgan Stanley Mumbai Interbank
Capital Services LLC Receive Offer Rate 6.540% 2/4/20 4,344
INR (17,300,000) Morgan Stanley Mumbai Interbank
Capital Services LLC Receive Offer Rate 6.560% 2/26/20 4,800
INR 33,200,000 Morgan Stanley Mumbai Interbank
Capital Services LLC Pay Offer Rate 7.010% 3/13/17 (1,065)
The accompanying notes are an integral part of these financial statements.
24 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
INTEREST RATE SWAP AGREEMENTS (continued)
----------------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Pay/ Floating Fixed Expiration Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
----------------------------------------------------------------------------------------------------------------
INR (13,500,000) Morgan Stanley Mumbai Interbank
Capital Services LLC Receive Offer Rate 6.800% 3/13/20 $ 1,576
INR 20,500,000 Goldman Sachs Mumbai Interbank
International Pay Offer Rate 6.980% 5/27/17 (276)
INR (9,000,000) Goldman Sachs Mumbai Interbank
International Receive Offer Rate 6.870% 5/27/20 401
JPY (373,000,000) Deutsche Bank Receive LIBOR JPY 6 Month 0.310% 6/9/19 (6,572)
JPY (136,000,000) Deutsche Bank Receive LIBOR JPY 6 Month 0.280% 7/14/19 (1,663)
JPY (49,900,000) Deutsche Bank Receive LIBOR JPY 6 Month 0.620% 10/10/24 (5,314)
JPY (137,000,000) Deutsche Bank Receive LIBOR JPY 6 Month 0.320% 2/4/22 (1,074)
JPY (65,600,000) Deutsche Bank Receive LIBOR JPY 6 Month 2.010% 2/17/45 2,376
JPY (65,600,000) Deutsche Bank Receive LIBOR JPY 6 Month 1.990% 2/17/45 3,028
JPY 54,700,000 Deutsche Bank Pay LIBOR JPY 6 Month 1.900% 2/17/35 1,765
JPY 54,700,000 Deutsche Bank Pay LIBOR JPY 6 Month 1.920% 2/19/35 2,320
KRW 768,000,000 Goldman Sachs South Korea Overnight
International Pay Interbank Rate 2.100% 2/3/25 1,637
NOK 2,826,000 Deutsche Bank Pay Norwegian Interbank
Offer Rate 6 Month 1.790% 10/23/17 5,398
NOK 3,000,000 Morgan Stanley Norwegian Interbank
Capital Services LLC Pay Offer Rate 6 Month 1.630% 11/12/17 4,650
NOK 2,826,000 Morgan Stanley Norwegian Interbank
Capital Services LLC Pay Offer Rate 6 Month 1.760% 10/28/17 5,248
NOK 2,550,000 Goldman Sachs Norwegian Interbank
International Pay Offer Rate 6 Month 1.020% 3/21/18 205
NZD 711,000 Morgan Stanley NZD Bank Bill
Capital Services LLC Pay 3 Month 3.760% 2/7/25 (5,385)
NZD 702,000 Morgan Stanley NZD Bank Bill
Capital Services LLC Pay 3 Month 3.850% 1/13/25 (3,732)
NZD 5,977,000 Goldman Sachs NZD Bank Bill
International Pay 3 Month 3.090% 6/29/17 19,458
NZD (5,098,000) Goldman Sachs NZD Bank Bill
International Receive 3 Month 3.450% 6/29/20 (55,127)
NZD 1,408,000 Goldman Sachs NZD Bank Bill
International Pay 3 Month 3.940% 6/29/25 29,196
SEK 3,310,000 Barclays Bank Plc Pay LIBOR SEK 3 Month 0.390% 10/28/16 4,566
SEK 5,040,000 Barclays Bank Plc Pay LIBOR SEK 3 Month 0.550% 9/18/16 9,056
SEK 4,800,000 Barclays Bank Plc Pay LIBOR SEK 3 Month 0.620% 8/20/16 5,630
SEK 4,800,000 Morgan Stanley
Capital Services LLC Pay LIBOR SEK 3 Month 0.620% 8/13/16 5,388
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 25
Schedule of Investments | 8/31/15 (continued)
INTEREST RATE SWAP AGREEMENTS (continued)
-----------------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Pay/ Floating Fixed Expiration Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
-----------------------------------------------------------------------------------------------------------------
SEK 4,800,000 Morgan Stanley
Capital Services LLC Pay LIBOR SEK 3 Month 0.630% 8/14/16 $ 5,417
SEK 2,075,000 Barclays Bank Plc Pay LIBOR SEK 3 Month 0.760% 6/22/20 4,154
SEK 2,390,000 Goldman Sachs
International Pay LIBOR SEK 3 Month 0.650% 7/16/20 2,956
SEK 4,900,000 Barclays Bank Plc Pay LIBOR SEK 3 Month 0.500% 8/11/20 738
SEK 2,252,000 Barclays Bank Plc Pay LIBOR SEK 3 Month 0.460% 8/21/20 (330)
(410,000) Deutsche Bank Receive LIBOR USD 3 Month 0.640% 10/28/16 (690)
(1,690,000) Deutsche Bank Receive LIBOR USD 3 Month 3.040% 11/28/22 (24,683)
3,150,000 Deutsche Bank Pay LIBOR USD 3 Month 1.810% 1/23/19 5,262
CAD (1,154,000) Goldman Sachs Canadian 3 Month
International Receive Prime Lending Rate 1.270% 7/17/20 (7,437)
CAD 606,000 Goldman Sachs Canadian 3 Month
International Pay Prime Lending Rate 2.060% 7/17/25 7,104
CAD (1,154,000) Goldman Sachs Canadian 3 Month
International Receive Prime Lending Rate 1.260% 7/17/20 (7,009)
CAD 606,000 Goldman Sachs Canadian 3 Month
International Receive Prime Lending Rate 2.060% 7/17/25 7,104
CAD 2,128,026 Credit Suisse Pay Canadian 3 Month
Prime Lending Rate 0.680% 8/21/17 (676)
CAD 2,128,026 Credit Suisse Pay Canadian 3 Month
Prime Lending Rate 0.660% 8/21/17 (1,519)
MYR 5,300,000 Goldman Sachs Malaysian Overnight
International Pay Policy Rate 4.440% 7/8/25 (10,783)
MYR (25,300,000) Goldman Sachs Malaysian Overnight
International Receive Policy Rate 3.800% 7/8/17 31,289
1,800,000 Deutsche Bank Pay LIBOR USD 3 Month 1.590% 2/10/19 8,083
(1,015,000) Deutsche Bank Receive LIBOR USD 3 Month 1.599% 2/7/19 (11,031)
(508,000) Deutsche Bank Receive LIBOR USD 3 Month 1.570% 3/3/19 (11,853)
(350,000) Deutsche Bank Receive LIBOR USD 3 Month 1.750% 12/5/19 (5,020)
(630,000) Deutsche Bank Receive LIBOR USD 3 Month 0.770% 9/18/16 (5,793)
(500,000) Deutsche Bank Receive LIBOR USD 3 Month 1.710% 2/26/20 (3,931)
(340,000) Deutsche Bank Receive LIBOR USD 3 Month 1.520% 11/12/17 (3,396)
(371,500) Deutsche Bank Receive LIBOR USD 3 Month 1.420% 10/28/17 (3,221)
(625,000) Deutsche Bank Receive LIBOR USD 3 Month 0.670% 8/13/16 (1,043)
(625,000) Deutsche Bank Receive LIBOR USD 3 Month 0.670% 8/14/16 (590)
(371,500) Deutsche Bank Receive LIBOR USD 3 Month 1.370% 10/23/17 (2,866)
The accompanying notes are an integral part of these financial statements.
26 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
INTEREST RATE SWAP AGREEMENTS (continued)
----------------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Pay/ Floating Fixed Expiration Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
----------------------------------------------------------------------------------------------------------------
(625,000) Deutsche Bank Receive LIBOR USD 3 Month 0.640% 8/20/16 $ (685)
(1,630,000) Deutsche Bank Receive LIBOR USD 3 Month 2.340% 1/23/23 19,411
3,130,000 Deutsche Bank Pay LIBOR USD 3 Month 2.250% 11/28/18 36,998
(2,220,000) Deutsche Bank Receive LIBOR USD 3 Month 1.440% 2/6/20 6,291
(259,500) Deutsche Bank Receive LIBOR USD 3 Month 1.820% 6/19/20 (3,427)
(330,000) Deutsche Bank Receive LIBOR USD 3 Month 1.770% 2/6/20 (3,841)
(286,000) Deutsche Bank Receive LIBOR USD 3 Month 1.830% 7/16/20 (3,423)
(574,000) Deutsche Bank Receive LIBOR USD 3 Month 1.750% 8/11/20 (3,835)
(270,000) Deutsche Bank Receive LIBOR USD 3 Month 1.690% 8/21/20 (1,177)
(100,000) Deutsche Bank Receive LIBOR USD 3 Month 2.540% 3/13/27 804
(1,000,000) Deutsche Bank Receive LIBOR USD 3 Month 1.270% 11/11/17 (5,121)
(700,000) Deutsche Bank Receive LIBOR USD 3 Month 1.470% 2/25/18 (3,862)
530,000 Deutsche Bank Pay LIBOR USD 3 Month 2.220% 5/6/25 3,283
(680,000) Deutsche Bank Receive LIBOR USD 3 Month 2.730% 2/15/41 (1,859)
1,380,000 Deutsche Bank Pay LIBOR USD 3 Month 3.985% 7/9/23 84,352
----------------------------------------------------------------------------------------------------------------
$ (63,191)
================================================================================================================
Principal amounts are denominated in U.S. Dollars unless
otherwise noted:
AUD Australian Dollar
CAD Canadian Dollar
EUR Euro
GBP British Pound Sterling
INR Indian Rupee
JPY Japanese Yen
KRW South Korean Won
MYR Malaysian Ringgit
NOK Norwegian Krone
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.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 27
Schedule of Investments | 8/31/15 (continued)
The following is a summary of the inputs used as of August 31, 2015, in valuing
the Fund's assets:
-------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------
U.S. Government and
Agency Obligations $ -- $ 13,382,144 $ -- $13,382,144
Foreign Government Bonds -- 6,713,875 -- 6,713,875
Currency Call Options Purchased -- 31,417 -- 31,417
Currency Put Options Purchased -- 12,593 -- 12,593
Interest Rate Swaptions Purchased -- 642,147 -- 642,147
-------------------------------------------------------------------------------------------
Total $ -- $ 20,782,176 $ -- $20,782,176
===========================================================================================
Other Financial Instruments
Net unrealized appreciation on
futures contracts $ 59,415 $ -- $ -- $ 59,415
Net unrealized appreciation on
forward foreign currency contracts -- 151,803 -- 151,803
Net unrealized depreciation on
forward foreign currency contracts -- (259,105) -- (259,105)
Net unrealized appreciation on
credit default swap contracts -- 8,970 -- 8,970
Net unrealized appreciation on
inflation rate swaps -- 63,671 -- 63,671
Net unrealized depreciation on
interest rate swaps -- (63,191) -- (63,191)
Interest rate swaptions written -- (341,870) -- (341,870)
Currency call options written -- (3,423) -- (3,423)
-------------------------------------------------------------------------------------------
Total Other Financial Instruments $ 59,415 $ (443,145) $ -- $ (383,730)
===========================================================================================
During the year ended August 31, 2015, there were no transfers between Levels 1,
2 and 3.
The following is a summary of the fair valuation of certain Fund's assets and
liabilities as of August 31, 2015.
---------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------
Assets:
Futures collateral $ -- $ 314,342 $ -- $ 314,342
Foreign cash, at value
(cost $184,883) -- 182,672 -- 182,672
Centrally cleared swap collateral -- 223,989 -- 223,989
Liabilities:
Variation margin for centrally
cleared swap contracts -- (26,799) -- (26,799)
Variation margin for
futures contracts (10,749) -- -- (10,749)
Swap collateral -- (245,516) -- (245,516)
---------------------------------------------------------------------------------------
Total $(10,749) $ 448,688 $ -- $ 437,939
=======================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
Statement of Assets and Liabilities | 8/31/15
ASSETS:
Investment in securities, at value (cost $20,989,271) $20,782,176
Cash 410,747
Foreign currencies, at value (cost $184,883) 182,672
Futures collateral 314,342
Swap collateral 223,989
Receivables --
Investment securities sold 1,835,938
Fund shares sold 59
Interest 40,403
Swap contracts receivable 12,515
Futures receivable 12,477
Due from Pioneer Investment Management, Inc. 29,100
Swap contracts, premiums paid 11,806
Net unrealized appreciation on forward foreign currency contracts 151,803
Net unrealized appreciation on futures contracts 59,415
Net unrealized appreciation on swap contracts 9,450
Other assets 26,809
-------------------------------------------------------------------------------------
Total assets $24,103,701
=====================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 2,247,906
Trustee fees 1,126
Swap collateral 245,516
Written options and written swaptions (premiums received $328,508) 345,293
Variation margin for futures contracts 10,749
Variation margin for centrally cleared swap contracts 26,799
Net unrealized depreciation on forward foreign currency contracts 259,105
Due to affiliates 12,910
Accrued expenses 106,006
-------------------------------------------------------------------------------------
Total liabilities $ 3,255,410
=====================================================================================
NET ASSETS:
Paid-in capital $21,531,975
Undistributed net investment income 451,416
Accumulated net realized loss on investments, futures contracts,
swap contracts, written options and foreign currency transactions (870,715)
Net unrealized depreciation on investments (207,095)
Net unrealized appreciation on futures contracts 59,415
Net unrealized appreciation on swap contracts 9,450
Net unrealized depreciation on written options and written swaptions (16,785)
Net unrealized depreciation on forward foreign currency contracts
and other assets and liabilities denominated in foreign currencies (109,370)
-------------------------------------------------------------------------------------
Total net assets $20,848,291
=====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $7,543,761/779,851 shares) $ 9.67
Class C (based on $6,809,863/707,353 shares) $ 9.63
Class K (based on $10,060/1,037 shares) $ 9.70
Class Y (based on $6,484,607/669,189 shares) $ 9.69
MAXIMUM OFFERING PRICE:
Class A ($9.67 (divided by) 95.5%) $ 10.13
=====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 29
Statement of Operations
For the year ended 8/31/15
INVESTMENT INCOME:
Interest $ 78,484
-------------------------------------------------------------------------------------
Total investment income $ 78,484
-------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 121,171
Distribution fees
Class A 17,141
Class C 68,381
Transfer agent fees
Class A 472
Class C 451
Class Y 286
Shareholder communication expense 1,731
Administrative reimbursements 23,734
Custodian fees 83,701
Registration fees 76,266
Professional fees 106,936
Printing expense 42,345
Fees and expenses of nonaffiliated Trustees 6,516
Pricing fees 60,671
Miscellaneous 25,432
-------------------------------------------------------------------------------------
Total expenses $ 635,234
Less fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (394,284)
-------------------------------------------------------------------------------------
Net expenses $ 240,950
-------------------------------------------------------------------------------------
Net investment loss $ (162,466)
-------------------------------------------------------------------------------------
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 $ (360,395)
Swap contracts (237,337)
Futures contracts (334,329)
Written options and written swaptions 71,346
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 1,306,790 $ 446,075
-------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ (337,698)
Swap contracts 34,783
Futures contracts 210,458
Written options and written swaptions (112,263)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (379,312) $ (584,032)
-------------------------------------------------------------------------------------
Net realized and unrealized loss on investments, swap contracts,
written options, written swaptions, futures contracts and
foreign currency transactions $ (137,957)
-------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (300,423)
=====================================================================================
The accompanying notes are an integral part of these financial statements.
30 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------
Year
Ended 1/30/14 (a)
8/31/15 to 8/31/14
--------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment loss $ (162,466) $ (51,724)
Net realized gain (loss) on investments, swap contracts,
futures contracts, written options, written swaptions and
foreign currency transactions 446,075 (524,241)
Change in net unrealized appreciation (depreciation) on
investments, swap contracts, futures contracts, written
options, written swaptions and foreign currency transactions (584,032) 319,647
--------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (300,423) $ (256,318)
--------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.09 and $0.00 per share, respectively) $ (58,842) $ --
Class C ($0.02 and $0.00 per share, respectively) (13,546) --
Class K* ($0.00 and $0.00 per share, respectively) -- --
Class Y ($0.11 and $0.00 per share, respectively) (75,000) --
--------------------------------------------------------------------------------------------
Total distributions to shareowners $ (147,388) $ --
--------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:(b)
Net proceeds from sale of shares $ 2,868,119 $ 20,044,447
Reinvestment of distributions 1,055 --
Cost of shares repurchased (1,359,740) (1,461)
--------------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund
share transactions $ 1,509,434 $ 20,042,986
--------------------------------------------------------------------------------------------
Net increase in net assets $ 1,061,623 $ 19,786,668
NET ASSETS:
Beginning of year 19,786,668 --
--------------------------------------------------------------------------------------------
End of year $20,848,291 $ 19,786,668
--------------------------------------------------------------------------------------------
Undistributed net investment income
(Accumulated net investment loss) $ 451,416 $ (120,897)
============================================================================================
(a) Class A, Class C and Class Y shares commenced operations on January 30,
2014.
(b) At August 31, 2015 PIM owned 92.7% of the value of the outstanding shares
of Pioneer Absolute Return Bond Fund.
* Class K shares commenced operations on December 31, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 31
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------
Year Year
Ended Ended 1/30/14* 1/30/14*
8/31/15 8/31/15 to 8/31/14 to 8/31/14
Shares Amount Shares Amount
--------------------------------------------------------------------------------
Class A*
Shares sold 232,901 $ 2,278,455 668,740 $ 6,687,114
Reinvestment of distributions 39 375 -- --
Less shares repurchased (121,682) (1,179,105) (147) (1,461)
--------------------------------------------------------------------------------
Net increase 111,258 $ 1,099,725 668,593 $ 6,685,653
================================================================================
Class C*
Shares sold 56,774 $ 555,464 666,667 $ 6,666,667
Reinvestment of distributions 70 680 -- --
Less shares repurchased (16,158) (156,514) -- --
--------------------------------------------------------------------------------
Net increase 40,686 $ 399,630 666,667 $ 6,666,667
================================================================================
Class K**
Shares sold 1,037 $ 10,000 -- $ --
Reinvestment of distributions -- -- -- --
Less shares repurchased -- -- -- --
--------------------------------------------------------------------------------
Net increase 1,037 $ 10,000 -- $ --
================================================================================
Class Y*
Shares sold 2,522 $ 24,200 669,096 $ 6,690,666
Reinvestment of distributions -- -- -- --
Less shares repurchased (2,429) (24,121) -- --
--------------------------------------------------------------------------------
Net increase 93 $ 79 669,096 $ 6,690,666
================================================================================
* Class A, Class C and Class Y shares commenced operations on January 30,
2014.
** Class K shares commenced operations on December 31, 2014.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
Financial Highlights
---------------------------------------------------------------------------------------
Year
Ended 1/30/14
8/31/15 to 8/31/14
---------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.88 $ 10.00
---------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.03) $ (0.02)
Net realized and unrealized gain (loss) on investments (0.09) (0.10)
---------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.12) $ (0.12)
---------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.09) $ --
---------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.21) $ (0.12)
---------------------------------------------------------------------------------------
Net asset value, end of period $ 9.67 $ 9.88
=======================================================================================
Total return* (1.24)% (1.20)%***
Ratio of net expenses to average net assets 1.03% 1.01%**
Ratio of net investment income (loss) to average net assets (0.58)% (0.29)%**
Portfolio turnover rate 99% 62%**
Net assets, end of period (in thousands) $ 7,544 $ 6,606
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 2.98% 2.61%**
Net investment income (loss) to average net assets (2.53)% (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.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 33
Financial Highlights (continued)
---------------------------------------------------------------------------------------
Year
Ended 1/30/14
8/31/15 to 8/31/14
---------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.84 $ 10.00
---------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.13) $ (0.06)
Net realized and unrealized gain (loss) on investments (0.06) (0.10)
---------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.19) $ (0.16)
---------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.02) $ --
---------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.21) (0.16)
---------------------------------------------------------------------------------------
Net asset value, end of period $ 9.63 9.84
=======================================================================================
Total return* (1.94)% (1.60)%***
Ratio of net expenses to average net assets 1.78% 1.75%**
Ratio of net investment income (loss) to average net assets (1.41)% (1.03)%**
Portfolio turnover rate 99% 62%**
Net assets, end of period (in thousands) $ 6,810 $ 6,559
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 3.73% 3.35%**
Net investment income (loss) to average net assets (3.36)% (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.
34 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
------------------------------------------------------------------------------
12/31/14
to 8/31/15
------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 9.64
------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.09)
Net realized and unrealized gain (loss) on investments 0.15(a)
------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.06
------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ --
------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.06
------------------------------------------------------------------------------
Net asset value, end of period $ 9.70
==============================================================================
Total return* 0.62%***
Ratio of net expenses to average net assets 0.75%**
Ratio of net investment income (loss) to average net assets (1.34)%**
Portfolio turnover rate 99%
Net assets, end of period (in thousands) $ 10
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 2.70%**
Net investment income (loss) to average net assets (3.29)%**
==============================================================================
* 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.
** Annualized.
*** Not annualized.
(a) The amount shown for a share outstanding does not correspond with the
aggregate loss on investments for the period due to the timing of sales and
repurchases of shares in relation to fluctuating market values of the
investments of the Fund.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 35
Financial Highlights (continued)
---------------------------------------------------------------------------------------
Year
Ended 1/30/14
8/31/15 to 8/31/14
---------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.90 $ 10.00
---------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.04) $ (0.00)(a)
Net realized and unrealized gain (loss) on investments (0.06) (0.10)
---------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.10) $ (0.10)
---------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.11) $ --
---------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.21) $ (0.10)
---------------------------------------------------------------------------------------
Net asset value, end of period $ 9.69 $ 9.90
=======================================================================================
Total return* (0.98)% (1.00)%***
Ratio of net expenses to average net assets 0.75% 0.75%**
Ratio of net investment income (loss) to average net assets (0.39)% (0.03)%**
Portfolio turnover rate 99% 62%**
Net assets, end of period (in thousands) $ 6,485 $ 6,621
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 2.70% 2.36%**
Net investment income (loss) (2.34)% (1.64)%**
=======================================================================================
* 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.
** 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 Absolute Return Bond Fund | Annual Report | 8/31/15
Notes to Financial Statements | 8/31/15
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 four classes of shares designated as Class A, Class C, Class K
and Class Y shares. Class A, Class C and Class Y shares commenced operations on
January 30, 2014. Class K shares commenced operations on December 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 K or
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:
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 are valued at prices supplied by independent pricing
services,
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 37
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. Shares of money market mutual funds
are valued at such funds' net asset value. Cash may include overnight time
deposits at approved financial institutions.
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. 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.
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, 2015, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services).
B. Investment Income and Transactions
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly
38 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
paydowns. All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
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.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the statement of operations from
the effects of changes in the market price of those securities but are
included with the net realized and unrealized gain or loss on investments.
D. 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, 2015 was $314,342. 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
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 39
contracts may not directly correlate to changes in value of the underlying
securities. The average value of contracts open during the year ended
August 31, 2015 was $(6,871,174).
At August 31, 2015, open futures contracts were as follows:
------------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation/
Type Long/(Short) Month Value (Depreciation)
------------------------------------------------------------------------------------
F/C Australia 10 yr
Bond Future 15 9/15 $ 1,375,995 $ 27,166
F/C Euro Bond Future 8 9/15 1,375,605 (13,574)
F/C Euro BUXL 30yr
Bond Future (9) 9/15 (1,532,292) 25,519
F/C Euro OAT Future (13) 9/15 (2,156,802) 37,627
F/C Euro BTP Future (24) 9/15 (3,643,751) (14,973)
F/C U.S. Ultra Bond (CBT) 7 12/15 1,108,844 (2,350)
------------------------------------------------------------------------------------
$(3,472,401) $ 59,415
====================================================================================
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
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).
F. 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, 2015, 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
40 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
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, 2015, the Fund reclassified $882,167 to increase undistributed
net investment income and $882,167 to increase accumulated net realized
loss on investments, futures contracts, swap contracts, written options and
foreign currency transactions to reflect permanent book/tax differences.
These adjustments have no impact on net assets or the results of
operations.
At August 31, 2015, the Fund was permitted to carry forward indefinitely
$347,935 of short-term losses and $490,531 of long-term losses under the
Regulated Investment Company Modernization Act of 2010 without limitation.
There were no distributions paid during the year ended August 31, 2014. The
tax character of distributions during the year ended August 31, 2015 was as
follows:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $147,388
---------------------------------------------------------------------------
Total $147,388
===========================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at August 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 362,041
Capital loss carryforward (838,466)
Unrealized depreciation (207,259)
---------------------------------------------------------------------------
Total $(683,684)
===========================================================================
The difference between book-basis and tax-basis net unrealized depreciation
is attributable to the tax adjustments relating to credit default swaps and
the mark to market of futures contracts and credit default swaps.
G. 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 $137 in underwriting commissions on the sale of Class A
shares during the year ended August 31, 2015.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 41
H. 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 K or 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, Class K and Class Y shares
can reflect different transfer agent and distribution expense rates.
I. 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.
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
42 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
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 year ended
August 31, 2015 was $(9,773). Written option contracts outstanding at
August 31, 2015 are listed in the schedule of investments.
The Fund held two written options that were open at August 31, 2015. If the
options were exercised at August 31, 2015, the maximum amount the Fund
would have been required to pay was $3,339.
Transactions in written options for the year ended August 31, 2015 are
summarized as follows:
---------------------------------------------------------------------------
Number of Premium
Contracts Received
---------------------------------------------------------------------------
Options open at beginning of period (980,000) $(11,362)
Options opened (1,980,000) (66,987)
Options exercised 200,000 7,360
Options closed -- --
Options expired 2,550,000 67,650
---------------------------------------------------------------------------
Options open at end of period (210,000) $ (3,339)
===========================================================================
K. 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
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 43
value of purchased options open during the year ended August 31, 2015 was
$88,134. Purchased option contracts outstanding at period end are listed
within the Fund's schedule of investments.
L. 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.
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, 2015 are listed in the
Schedule of Investments. The average value of written swaption contracts
open during the year ended August 31, 2015 was $(150,446).
The Fund held six interest rate swaptions that were open at August 31,
2015. If the swaptions were exercised at August 31, 2015, the maximum
amount the Fund would have been required to pay was $325,169.
Transactions in interest rate swaptions for the year ended August 31, 2015
are summarized as follows:
---------------------------------------------------------------------------
Number of Premium
Contracts Received
---------------------------------------------------------------------------
Options open at beginning of period (7,600,000) $(200,002)
Options opened (18,050,000) (505,081)
Options exercised 11,450,000 377,228
Options closed -- --
Options expired 2,000,000 2,686
---------------------------------------------------------------------------
Options open at end of period (12,200,000) $(325,169)
===========================================================================
44 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
M. 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 (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
year ended August 31, 2015 was $375,891. Purchased swaptions open at period
end are listed at the end of the Fund's Schedule of Investments.
N. 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 sell
or buy credit default swap contracts to seek to increase the Fund's income,
or to attempt to hedge the risk of default on 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.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 45
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.
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.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as variation margin on
centrally cleared swaps on the Statement of Assets and Liabilities.
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, 2015 are listed in the
Schedule of Investments. The average value of credit default swap contracts
open during the year ended August 31, 2015 was $(22,665).
O. 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.
46 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
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.
There were no open cross currency swap contracts at August 31, 2015. The
average value of cross currency swap contracts open during the year ended
August 31, 2015 was $(48,167).
P. 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, 2015 are listed in the
Schedule of Investments. The average value of inflation rate swap contracts
open during the year ended August 31, 2015 was $34,685.
Q. 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.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 47
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, 2015 are listed in the
Schedule of Investments. The average value of interest swap contracts open
during the year ended August 31, 2015 was $(72,720).
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%, 0.75% and 0.75% of the average
daily net assets attributable to Class A, Class C, Class K and Class Y shares,
respectively. These expense limitations are in effect through January 1, 2017.
Fees waived and expenses reimbursed during the year ended August 31, 2015 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
$11,673 in management fees, administrative costs and certain other
reimbursements payable to PIM at August 31, 2015.
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, 2015, such out-of-pocket expenses by class of shares
were as follows:
48 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 718
Class C 1,010
Class Y 3
--------------------------------------------------------------------------------
Total $1,731
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $285 in transfer agent fees and out-of-pocket reimbursements
payable from PIMSS at August 31, 2015.
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 $952 in distribution fees payable to PFD
at August 31, 2015.
In addition, redemptions of each class of shares (except Class K or 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 K or Class Y shares. Proceeds from the
CDSCs are paid to PFD. For the year ended August 31, 2015, no CDSCs were paid to
PFD.
5. Forward Foreign Currency Contracts
At August 31, 2015, 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, 2015 was $(5,840,675).
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 49
Open forward foreign currency contracts at August 31, 2015 were as follows:
------------------------------------------------------------------------------------------------------------
Net
Currency Quantity Currency Quantity Settlement Unrealized
Purchased Purchased Sold Sold Counterparty Date Appreciation
------------------------------------------------------------------------------------------------------------
USD 120,000 INR (Indian 7,788,000 Barclays Plc 9/22/15 $ 3,074
Rupee)
USD 760,000 CNY (Chinese 4,873,310 Morgan 3/7/16 5,667
Yuan Renminbi) Stanley Co.
EUR (Euro) 260,000 AUD (Austrialian 396,570 Morgan 10/16/15 10,439
Dollar) Stanley Co.
GBP (British 180,000 AUD (Austrialian 374,264 Credit Suisse 10/16/15 10,292
Pound Sterling) Dollar)
CAD (Canadian 200,000 MXN (Mexican 2,517,394 Credit Suisse 10/16/15 1,663
Dollar) Dollar)
JP (Japanese Yen) 62,251,704 USD 502,000 Morgan 10/16/15 12,141
Stanley Co.
JP (Japanese Yen) 58,061,094 USD 470,746 Credit Suisse 10/16/15 8,785
USD 290,000 CAD (Canadian 373,003 Morgan 10/16/15 6,864
Dollar) Stanley Co.
EUR (Euro) 350,000 USD 389,327 Morgan 10/16/15 4,060
Stanley Co.
GBP (British 100,000 CHF (Swiss Franc) 146,439 Credit Suisse 10/16/15 1,639
Pound Sterling)
USD 628,996 NOK (Norwegian 5,095,000 Credit Suisse 10/16/15 14,093
Krone)
USD 119,669 NZD (New 180,000 Credit Suisse 10/16/15 5,973
Zealand Dollar)
USD 408,155 ZAR (South 5,278,548 Morgan 10/16/15 13,092
African Rand) Stanley Co.
USD 174,349 AUD (Austrialian 233,290 Credit Suisse 10/16/15 8,579
Dollar)
SEK (Swedish 540,411 NOK (Norwegian 520,000 Credit Suisse 10/16/15 1,335
Krona) Krone)
USD 150,000 CAD (Canadian 194,292 Credit Suisse 10/16/15 2,519
Dollar)
NZD (New 226,672 AUD (Austrialian 200,000 Morgan 10/16/15 1,062
Zealand Dollar) Dollar) Stanley Co.
EUR (Euro) 213,096 GBP (British 149,228 Credit Suisse 10/16/15 10,504
Pound Sterling)
GBP (British 140,000 NZD (New 336,917 Credit Suisse 10/16/15 2,035
Pound Sterling) Zealand Dollar)
EUR (Euro) 200,000 HUN (Hungarian 62,155,831 Credit Suisse 10/16/15 2,308
Forint)
PLN (Polish Zloty) 539,418 USD 140,000 Morgan 10/16/15 2,812
Stanley Co.
USD 150,000 MXN (Mexican 2,470,079 Morgan 10/16/15 2,671
Dollar) Stanley Co.
USD 190,939 EUR (Euro) 165,000 Credit Suisse 10/16/15 5,484
EUR (Euro) 250,000 USD 275,811 Credit Suisse 10/16/15 5,180
EUR (Euro) 220,000 SGD (Singapore 344,346 Credit Suisse 10/16/15 3,507
Dollar)
USD 164,374 AUD (Austrialian 230,000 Morgan 10/16/15 942
Dollar) Stanley Co.
USD 277,281 GBP (British 180,000 Credit Suisse 10/16/15 1,047
Pound Sterling)
USD 140,000 INR (Indian 9,221,520 Morgan 9/21/15 1,523
Rupee) Stanley Co.
USD 140,000 KRW (South 165,413,500 Morgan 3/2/16 582
Korean Won) Stanley Co.
50 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
-----------------------------------------------------------------------------------------------------------
Net
Currency Quantity Currency Quantity Settlement Unrealized
Purchased Purchased Sold Sold Counterparty Date Appreciation
-----------------------------------------------------------------------------------------------------------
CAD (Canadian 176,981 NZD (New 210,000 Morgan 10/16/15 $ 1,695
Dollar) Zealand Dollar) Stanley Co.
USD 100,000 TWD (Taiwan 3,238,430 Morgan 12/1/15 236
Dollar) Stanley Co.
-----------------------------------------------------------------------------------------------------------
$ 151,803
===========================================================================================================
-----------------------------------------------------------------------------------------------------------
Net
Currency Quantity Currency Quantity Settlement Unrealized
Purchased Purchased Sold Sold Counterparty Date Depreciation
-----------------------------------------------------------------------------------------------------------
INR (Indian 7,780,800 USD 120,000 Credit Suisse 9/22/15 $ (3,183)
Rupee)
CNY (Chinese 2,364,360 USD 380,000 Barclays Plc 3/7/16 (14,024)
Yuan Renminbi)
CNY (Chinese 2,363,220 USD 380,000 Credit Suisse 3/7/16 (14,200)
Yuan Renminbi)
INR (Indian 9,135,000 USD 140,000 Barclays Plc 9/21/15 (2,823)
Rupee)
MXN (Mexican 2,512,428 CAD (Canadian 200,000 Morgan 10/16/15 (1,960)
Dollar) Dollar) Stanley Co.
HUN (Hungarian 62,574,751 EUR (Euro) 200,000 Morgan 10/16/15 (808)
Forint) Stanley Co.
AUD (Austrialian 310,156 EUR (Euro) 200,000 Credit Suisse 10/16/15 (4,404)
Dollar)
JP (Japanese Yen) 36,637,677 EUR (Euro) 270,000 Credit Suisse 10/16/15 (877)
GBP (British 85,337 EUR (Euro) 120,000 Morgan 10/16/15 (3,914)
Pound Sterling) Stanley Co.
CHF (Swiss Franc) 104,794 USD 111,273 Credit Suisse 10/16/15 (2,625)
USD 442,000 JPY (Japanese 53,899,421 Morgan 10/16/15 (3,159)
Yen) Stanley Co.
USD 1,236,509 JPY (Japanese 151,955,472 Credit Suisse 10/16/15 (18,502)
Yen)
CAD (Canadian 567,352 USD 440,000 Morgan 10/16/15 (9,339)
Dollar) Stanley Co.
USD 42,533 SEK (Swedish 360,000 Credit Suisse 10/16/15 (163)
Krona)
USD 6,125,082 EUR (Euro) 5,543,142 Morgan 10/16/15 (105,212)
Stanley Co.
NOK (Norwegian 1,680,000 SEK (Swedish 1,739,101 Morgan 10/16/15 (3,500)
Krone) Krona) Stanley Co.
NZD (New 180,000 USD 116,958 Credit Suisse 10/16/15 (3,261)
Zealand Dollar)
ZAR (South 3,910,814 USD 310,000 Morgan 10/16/15 (17,302)
African Rand) Stanley Co.
AUD (Austrialian 379,466 GBP (British 180,000 Morgan 10/16/15 (6,595)
Dollar) Pound Sterling) Stanley Co.
GBP (British 92,582 EUR (Euro) 130,000 Credit Suisse 10/16/15 (4,035)
Pound Sterling)
NZD (New 328,082 GBP (British 140,000 Credit Suisse 10/16/15 (7,616)
Zealand Dollar) Pound Sterling)
PLN (Polish Zloty) 263,279 USD 70,000 Credit Suisse 10/16/15 (296)
USD 70,000 PLN (Polish Zloty) 264,677 Credit Suisse 10/16/15 (74)
USD 140,000 PLN (Polish Zloty) 531,049 Morgan 10/16/15 (597)
Stanley Co.
MXN (Mexican 2,432,939 USD 150,000 Morgan 10/16/15 (4,887)
Dollar) Stanley Co.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 51
-------------------------------------------------------------------------------------------------------------
Net
Currency Quantity Currency Quantity Settlement Unrealized
Purchased Purchased Sold Sold Counterparty Date Depreciation
-------------------------------------------------------------------------------------------------------------
SGD (Singapore 341,590 EUR (Euro) 220,000 Credit Suisse 10/16/15 $ (5,458)
Dollar)
AUD (Austrialian 170,000 USD 124,712 Morgan 10/16/15 (3,915)
Dollar) Stanley Co.
GBP (British 90,000 USD 140,604 Morgan 10/16/15 (2,487)
Pound Sterling) Stanley Co.
NOK (Norwegian 2,500,000 USD 302,462 Morgan 10/16/15 (743)
Krone) Stanley Co.
NZD (New 210,000 CAD (Canadian 181,449 Credit Suisse 10/16/15 (5,087)
Zealand Dollar) Dollar)
GBP (British 90,000 USD 141,162 Credit Suisse 10/16/15 (3,045)
Pound Sterling)
USD 82,938 CNY (Chinese 543,037 Goldman 2/24/16 (1,167)
Yuan Renminbi) Sachs & Co.
USD 57,062 CNY (Chinese 373,798 Morgan 2/24/16 (832)
Yuan Renminbi) Stanley Co.
USD 140,000 CNY (Chinese 923,650 Barclays Plc 2/29/16 (3,015)
Yuan Renminbi)
-------------------------------------------------------------------------------------------------------------
$(259,105)
=============================================================================================================
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 year ended August 31, 2015, the Fund's expenses were
not reduced under such arrangements.
7. Assets and Liabilities Offsetting
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the trading
of certain OTC derivatives and typically contains, among other things, close-out
and set-off provisions which apply upon the occurrence of event of a default
and/or termination event as defined under the relevant ISDA Master Agreement.
The ISDA Master Agreement may also give a party the right to terminate all
transactions traded under such agreement if, among other things, there is
deterioration in the credit quality of the other party. Upon an event of default
or a termination of the ISDA Master Agreement, the non-defaulting party has the
right to close out all transactions under such agreement and to net amounts owed
under each transaction to determine one net amount payable by one party to the
other. The right to close out and net payments across all transactions under the
ISDA Master Agreement could result in a reduction of the Fund's credit risk to
its counterparty equal to any amounts payable by the Fund under the applicable
transactions, if any. However, the
52 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
Fund's right to setoff may be restricted or prohibited by the bankruptcy or
insolvency laws of the particular jurisdiction to which a specific ISDA
counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collateral pledged for the benefit of the Fund and/or
counterparty is held in segregated accounts by the Fund's custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Fund's collateral obligations, if any, will be
reported separately in the Statement of Assets and Liabilities as "Futures
collateral", "Swap Collateral" or "Deposit with broker." Securities pledged by
the Fund as collateral, if any, are identified as such in the Schedule of
Investments.
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Fund
as of August 31, 2015.
----------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
----------------------------------------------------------------------------------------------
Barclays Bank Plc $ 31,770 $ (20,791) $ -- $ -- $10,979
Credit Suisse
International 150,609 (75,263) -- -- 75,346
Goldman Sachs
International 141,035 (141,035) -- -- --
Deutsche Bank 501,752 (501,752) -- -- --
Morgan Stanley
Capital
Services LLC 136,165 (136,165) -- -- --
----------------------------------------------------------------------------------------------
$961,331 $ (875,006) $ -- $ -- $86,325
==============================================================================================
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 53
----------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Assets (c)
----------------------------------------------------------------------------------------------
Barclays Bank Plc $ (20,791) $ 20,791 $ -- $ -- $ --
Credit Suisse
International (75,263) 75,263 -- -- --
Goldman Sachs
International (455,752) 141,035 -- -- (314,717)
Deutsche Bank (599,151) 501,752 97,399 -- --
Morgan Stanley
Capital
Services LLC (261,576) 136,165 -- -- (125,411)
----------------------------------------------------------------------------------------------
$ (1,412,533) $875,006 $ 97,399 $ -- $ (440,128)
==============================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
8. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of August 31, 2015 were as follows:
-----------------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives Liabilities Derivatives
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 $151,803 currency contracts $259,105
Swap contracts Net unrealized Net unrealized
appreciation on depreciation on
swap contracts 9,450 swap contracts --
Futures contracts Net unrealized Net unrealized
appreciation on depreciation on
futures contracts 59,415 futures contracts --
Written options and Written options Written options
written swaptions and swaptions -- and swaptions 345,293
-----------------------------------------------------------------------------------------------------
Total $220,668 $604,398
=====================================================================================================
54 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
The effect of derivative instruments on the Statement of Operations for
the year ended August 31, 2015 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
and other assets and liabilities
denominated in foreign currencies $ 902,880
Forward foreign Change in unrealized appreciation
currency contracts (depreciation) on forward foreign
currency contracts and other assets
and liabilities denominated in
foreign currencies $(312,480)
Futures contracts Net realized gain (loss) on
futures contracts $(334,329)
Futures contracts Change in net unrealized
appreciation (depreciation) on
futures contracts $ 210,458
Swap contracts Net realized gain (loss) on
swap contracts $(237,337)
Swap contracts Change in net unrealized
appreciation (depreciation) on
swap contracts $ 34,783
Written options Net realized gain (loss) on
and written written options and $ 71,346
swaptions written swaptions
Written options Change in net unrealized
and written appreciation (depreciation) on
swaptions written options and
written swaptions $(112,263)
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 55
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V and the Shareowners of
Pioneer Absolute Bond Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Absolute Bond Fund, one of the portfolios constituting Pioneer Series Trust V,
including the schedule of investments, as of August 31, 2015, and the related
statement of operations for the year then ended, and the statements of changes
in net assets and the financial highlights for the year then ended, and for the
period from 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 audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
The Fund is not required to have, nor were we engaged to perform, an audit of
its internal control over financial reporting. Our audits included consideration
of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, 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, 2015, 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 audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Absolute Bond Fund as of August 31, 2015, the results of its operations
for the year then ended, and the changes in its net assets, and the financial
highlights for the year then ended and for the period from 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 & Touch LLP
Boston, Massachusetts
October 28, 2015
56 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
Additional Information (unaudited)
PIM, the Fund's investment adviser, is currently an indirect, wholly-owned
subsidiary of UniCredit. On April 23, 2015, UniCredit announced that it signed a
preliminary and exclusive agreement with Banco Santander and affiliates of
Warburg Pincus and General Atlantic (the "Private Equity Firms") with respect to
Pioneer Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as described in the UniCredit announcement, will entail the
establishment of a holding company, with the name Pioneer Investments, to be
owned by UniCredit (50%) and the Private Equity Firms (50% between them). The
holding company will control Pioneer's U.S. operations, including the Adviser.
The holding company also will own 66.7% of Pioneer's and SAM's combined
operations outside the U.S., while Banco Santander will own directly the
remaining 33.3% stake. The completion of the Transaction is subject to the
signing of a definitive agreement, as well as certain regulatory and corporate
approvals, and other conditions.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's investment advisory agreement with the Adviser to terminate. In
connection with the Transaction, the Fund's Board of Trustees will be asked to
approve a new investment advisory agreement for the Fund. If approved by the
Board, the Fund's new investment advisory agreement will be submitted to the
shareholders of the Fund for their approval.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 57
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
Morgan, Lewis & Bockius 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 51 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.
58 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
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 (64) Trustee since 2013. Private investor (2004-2008 and Director, Broadridge
Chairman of the Board Serves until a successor 2013-present); Chairman (2008-2013) and Financial Solutions, Inc.
and Trustee trustee is elected or earlier Chief Executive Officer (2008-2012), (investor communications
retirement or removal. Quadriserv, Inc. (technology products for and securities processing
securities lending industry); and Senior provider for financial
Executive Vice President, The Bank of New services industry) (2009-
York (financial and securities services) present); Director,
(1986-2004) Quadriserv, Inc.
(2005-2013); and
Commissioner, New Jersey
State Civil Service
Commission (2011-present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Trustee since 2013. Managing Partner, Federal City Capital Director of New York
Trustee Serves until a successor Advisors (corporate advisory services Mortgage Trust
trustee is elected or earlier company) (1997-2004 and 2008-present); (publicly-traded mortgage
retirement or removal. Interim Chief Executive Officer, Oxford REIT) (2004-2009,
Analytica, Inc. (privately-held research 2012-present); Director
and consulting company) (2010); Executive of The Swiss Helvetia
Vice President and Chief Financial Fund, Inc. (closed-end
Officer, I-trax, Inc. (publicly traded fund) (2010-present);
health care services company) Director of Oxford
(2004-2007); and Executive Vice President Analytica, Inc.
and Chief Financial Officer, Pedestal (2008-present); and
Inc. (internet-based mortgage trading Director of Enterprise
company) (2000-2002); Private consultant Community Investment,
(1995-1997), Managing Director, Lehman Inc. (privately-held
Brothers (investment banking firm) affordable housing
(1992-1995); and Executive, The World finance company)
Bank (1979-1992) (1985-2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (71) Trustee since 2013. William Joseph Maier Professor of Trustee, Mellon
Trustee Serves until a successor Political Economy, Harvard University Institutional Funds
trustee is elected or earlier (1972-present) Investment Trust and
retirement or removal. Mellon Institutional
Funds Master Portfolio
(oversaw 17 portfolios in
fund complex) (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 59
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 (68) Trustee since 2013. Founding Director, Vice President and None
Trustee Serves until a successor Corporate Secretary, The Winthrop Group,
trustee is elected or earlier Inc. (consulting firm) (1982-present);
retirement or removal. Desautels Faculty of Management, McGill
University (1999-present); and Manager of
Research Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (67) Trustee since 2013. President and Chief Executive Officer, Director of New America
Trustee Serves until a successor Newbury, Piret & Company, Inc. High Income Fund, Inc.
trustee is elected or earlier (investment banking firm) (1981-present) (closed-end investment
retirement or removal. company) (2004-present);
and Member, Board of
Governors, Investment
Company Institute
(2000-2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (68) Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a successor (2012-present); Executive Vice President,
trustee is elected or earlier BNY Mellon (financial and investment
retirement or removal. company services) (1969-2012); Director,
BNY International Financing Corp.
(financial services) (2002-2012); and
Director, Mellon Overseas Investment
Corp. (financial services) (2009-2012)
------------------------------------------------------------------------------------------------------------------------------------
60 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
Interested Trustee
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 (57)* Trustee since 2014. Director and Executive Vice President None
Trustee Serves until a successor (since 2008) and Chief Investment
trustee is elected or earlier Officer, U.S. (since 2010) of PIM-USA;
retirement or removal. Executive Vice President of Pioneer
(since 2008); Executive Vice President of
Pioneer Institutional Asset Management,
Inc. (since 2009); and 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 | 8/31/15 61
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine Monchak (59)** Advisory Trustee since 2014. Chief Investment Officer, 1199 SEIU Funds None
Advisory Trustee (healthcare workers union pension funds)
(2001-present); Vice
President-International Investments
Group, American International Group, Inc.
(insurance company) (1993-2001); Vice
President Corporate Finance and Treasury
Group, Citibank, N.A.(1980-1986 and 1990-
1993); Vice President-Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer
of debt securities) (1988-1990); Mortgage
Strategies Group, Shearson Lehman Hutton,
Inc. (investment bank) (1987-1988); and
Mortgage Strategies Group, Drexel Burnham
Lambert, Ltd. (investment bank)
(1986-1987)
------------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak is a non-voting advisory trustee.
62 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (53) Since 2014. Serves at the Chair, Director, CEO and President of None
President and discretion of the Board. Pioneer Investment Management-USA (since
Chief Executive Officer September 2014); 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); and
Director of Institutional Business, CEO
of International, Eaton Vance Management
(2005-2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (50) Since 2013. Serves at the Vice President and Associate General None
Secretary and Chief discretion of the Board. Counsel of Pioneer since January 2008;
Legal Officer Secretary and Chief Legal Officer of all
of the Pioneer Funds since June 2010;
Assistant Secretary of all of the Pioneer
Funds from September 2003 to May 2010;
and Vice President and Senior Counsel of
Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (54) Since 2013. Serves at the Fund Governance Director of Pioneer since None
Assistant Secretary discretion of the Board. December 2006 and Assistant Secretary of
all the Pioneer 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 (52) Since 2013. Serves at the Senior Counsel of Pioneer since May 2013 None
Assistant Secretary discretion of the Board. and Assistant Secretary of all the
Pioneer Funds since June 2010; and
Counsel of Pioneer from June 2007 to May
2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2013. Serves at the Vice President-Fund Treasury of Pioneer; None
Treasurer and Chief discretion of the Board. Treasurer of all of the Pioneer Funds
Financial since March 2008; Deputy Treasurer of
and Accounting Officer Pioneer from March 2004 to February 2008;
and Assistant Treasurer of all of the
Pioneer Funds from March 2004 to February
2008
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 63
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 2013. Serves at the Director-Fund Treasury of Pioneer; and None
Assistant Treasurer discretion of the Board. Assistant Treasurer of all of the Pioneer
Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (57) Since 2013. Serves at the Fund Accounting Manager-Fund Treasury of None
Assistant Treasurer discretion of the Board. Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2013. Serves at the Fund Administration Manager-Fund Treasury None
Assistant Treasurer discretion of the Board. of Pioneer since November 2008; Assistant
Treasurer of 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 (62) Since 2013. Serves at the Chief Compliance Officer of Pioneer and None
Chief Compliance Officer discretion of the Board. of all the Pioneer Funds since March
2010; Chief Compliance Officer of Pioneer
Institutional Asset Management, Inc.
since January 2012; Chief Compliance
Officer of Vanderbilt Capital Advisors,
LLC since July 2012: Director of Adviser
and Portfolio Compliance at Pioneer since
October 2005; and Senior Compliance
Officer for Columbia Management Advisers,
Inc. from October 2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (44) Since 2013. Serves at the Director-Transfer Agency Compliance of None
Anti-Money Laundering discretion of the Board. Pioneer and Anti-Money Laundering Officer
Officer of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
64 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
This page for your notes.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 65
This page for your notes.
66 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
This page for your notes.
Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15 67
This page for your notes.
68 Pioneer Absolute Return Bond Fund | Annual Report | 8/31/15
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) 2015 Pioneer Investments 28082-01-1015
Pioneer Global
Equity Fund
--------------------------------------------------------------------------------
Annual Report | August 31, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A GLOSX
Class C GCSLX
Class K PGEKX
Class R PRGEX
Class Y PGSYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 25
Notes to Financial Statements 34
Report of Independent Registered Public Accounting Firm 44
Trustees, Officers and Service Providers 46
Pioneer Global Equity Fund | Annual Report | 8/31/15 1
President's Letter
Dear Shareholder,
In the second half of 2015, two main issues have been dominating the attention
of global investors and policymakers alike, and shaping the current investment
environment: The Federal Reserve System's (the Fed's) deliberations over when to
begin normalizing interest rates in the U.S., and the increasing divergence in
economic activity around the globe. As 2015 began, market expectations were that
the Fed would likely begin raising interest rates by the middle of the year, but
a sluggish gross domestic product report in the first calendar quarter as well
as relatively benign inflation and wage growth contributed to the Fed's taking a
more cautionary approach and delaying the start of its rate-hike cycle. At the
same time, however, the U.S. labor market has continued its robust improvement,
moving the Fed closer to declaring victory on one of its main monetary policy
objectives -- full employment.
Meanwhile, global economic activity has continued to diverge, with developed
economies experiencing above-trend growth and most emerging markets economies
lagging the rest of the world. The slower pace of economic activity in the
emerging markets has been most evident in China, as the country's economy
continues to undergo a long, potentially painful adjustment from investment-led
growth to consumption-oriented growth. This divergence in global economic cycles
is likely to continue for some time, and we would expect an increased level of
volatility as global capital markets and policymakers adjust.
Pioneer Investments believes that investors in today's environment can
potentially benefit from the consistent and disciplined investment approach we
have used since our founding in 1928. We focus on identifying value across
global markets using proprietary research, careful risk management, and a
long-term perspective. Our ongoing goal is to produce compelling returns
consistent with the stated objectives of our investment products, and with our
shareowners' expectations. We believe our shareowners can benefit from the
experience and tenure of our investment teams as well as the insights generated
from our extensive research process.
2 Pioneer Global Equity Fund | Annual Report | 8/31/15
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
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 | 8/31/15 3
Portfolio Management Discussion | 8/31/15
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, 2015. 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, 2015?
A Pioneer Global Equity Fund's Class A shares returned -4.88% at net asset
value during the 12-month period ended August 31, 2015, while the Fund's
benchmarks, the Morgan Stanley Capital International (MSCI) World ND Index
(the MSCI Index) and the MSCI All Country World ND Index(1), returned
-4.13% and -6.29%, respectively*. During the same period, the average
return of the 161 mutual funds in Lipper's Global Multi-Cap Core Funds
category was -4.30%, and the average return of the 1,204 mutual funds in
Morningstar's World Stock Funds category was -4.88%.
Q How would you characterize the investment environment in the global equity
markets during the 12-month period ended August 31, 2015?
A The past 12 months have seen increased global market volatility, especially
during the second half of the period. Some trends that were in place in
2014, including plunging energy and commodity prices, continued during the
period and even deteriorated somewhat. We also have seen signs of economic
recovery in Europe, where the European Central Bank's quantitative easing
program seems to be having a positive effect, and in Japan, due in part to
a new emphasis on increased return on equity from the country's government
and business leaders.
Less positively, the debacle in the commodity and energy sectors has taken
its toll on the emerging markets, spurring sharply increased market
volatility as well as currency devaluations within a number of emerging
markets
1 The MSCI information may only be used for your internal use, may not be
reproduced or redisseminated 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.
* The MSCI All Country World ND Index was recently added as a Fund benchmark,
and the MSCI World ND Index remains a Fund benchmark. Going forward,
Pioneer will report performance for both indices. For the 12-month period
ended August 31, 2015, the MSCI World ND Index was the Fund's benchmark.
4 Pioneer Global Equity Fund | Annual Report | 8/31/15
nations. Though Greece's debt crisis and China's slumping economy were a
source of negative headlines and a major focus for investors in July and
August, we found the economic and currency crises in several South American
countries, especially Brazil, to be more worrisome. Current concerns
regarding emerging markets economies extend to certain multinational
companies, which have been negatively affected by currency devaluations and
market volatility. In addition, the International Monetary Fund and the
World Bank have reduced their forecasts for global economic growth a number
of times over the past 12 months, although growth in the United States,
Europe, Japan, and even China has offset some of the negative effects of
the sharp economic downturns in the emerging markets countries.
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 or individual portfolio holdings either
aided or detracted from the Fund's performance relative to the MSCI World
ND Index during the 12-month period ended August 31, 2015?
A During a period when there were sharp differences in performance between a
number of market sectors, the Fund's overweight position in the
outperforming health care sector relative to the benchmark contributed to
relative returns, while significant portfolio underweights in energy and
materials, which were down substantially during the period, also
contributed to benchmark-relative performance.
However, during the period, unfavorable stock selection results outweighed
the Fund's positive sector allocations with regard to benchmark-relative
performance. Most of the negative effects from stock selection came from
holdings in the industrials and consumer discretionary sectors. In consumer
discretionary, the Fund had significant exposure to the automotive
sub-sector, including a position in Volkswagen, which struggled
* Diversification does not assure a profit nor protect against loss.
** Dividends are not guaranteed.
Pioneer Global Equity Fund | Annual Report | 8/31/15 5
during the period because of emerging markets-related concerns. In the
media sub-sector, the portfolio's holding in U.S. broadcaster CBS also was
down significantly. Among the Fund's Japanese holdings, Sekisui Chemical,
which had contributed strongly to relative performance in the past, endured
a significant sell-off during the 12-month period. Lastly, within
industrials, Fund positions in American Airlines and Ingersoll Rand
detracted from relative returns.
On the positive side, stock selection within the financials sector
contributed to benchmark-relative returns, as the Fund's position in the
Swiss financial services company UBS represented the largest individual
contributor to performance. UBS is a recent addition to the portfolio, and
the company has been rewarded by investors for rebuilding its capital
levels and restoring profitability. Stock selection in materials and
telecommunication services also contributed to the Fund's
benchmark-relative returns. Within materials, portfolio holdings in the
Japanese specialty chemical company Nitto Denko performed well, as did a
position in the Swiss agribusiness firm Syngenta. Also in Japan, the Fund's
position in Nippon Telegraph & Telephone represented a significant
contributor to benchmark-relative performance.
Q Did you employ derivatives in managing the Fund during the 12-month period
ended August 31, 2015, and did those investments have an effect on
performance?
A Over the 12-month period, we utilized derivatives very sparingly, mainly to
give the Fund some exposure to the Japanese market. The positions had a
slightly positive effect on performance.
Q What is your outlook and how is it reflected in the Fund's current
positioning?
A We believe that it may take some time for the recent bout of market
volatility to subside, given the negative environment for commodities and
for a number of emerging markets economies, especially those in South
America. The geopolitical situation in the Middle East also remains a
concern. Additionally, market participants are closely monitoring the
strength of the overall global economy, which has been benefiting from
substantial economic stimulus by central banks, but, nevertheless, seems on
the verge of deceleration.
For those reasons -- even though we intend to reduce the Fund's current 5%
cash allocation in the near future -- we plan to maintain a defensive
stance within the portfolio over the coming months, provided that there are
no dramatic shifts in market conditions. As part of taking the defensive
posture, we have reduced some of the Fund's geographic weightings. At
period end, the Fund maintained a small overweight to Japan, and we had
increased exposure to Europe. The Greek debt crisis has, in our opinion,
created some attractive equity valuations within Europe, and so we have
sought to take advantage. In addition, the Fund is underweight the
commodity-sensitive countries of Canada and Australia.
6 Pioneer Global Equity Fund | Annual Report | 8/31/15
Among defensive and non-cyclical sectors, we have continued to emphasize
holdings in health care and telecommunication services. Within cyclical
market sectors, the Fund is overweight financials and consumer
discretionary. The Fund also maintained meaningful underweights in energy,
materials and industrials as of period end.
Overall, we believe that valuations in the market are attractive, and that
our focus on owning companies that are in a stronger-than-average financial
position should benefit the Fund's performance over time.
Please refer to the Schedule of Investments on pages 17-24 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. Past performance is no
guarantee of future results.
Pioneer Global Equity Fund | Annual Report | 8/31/15 7
Portfolio Summary | 8/31/15
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 26.9%
Health Care 19.6%
Information Technology 18.3%
Consumer Discretionary 12.5%
Consumer Staples 9.4%
Industrials 6.1%
Telecommunication Services 3.5%
Energy 1.9%
Materials 1.8%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 54.7%
Japan 13.7%
Switzerland 8.4%
Germany 5.3%
United Kingdom 4.7%
Ireland 2.2%
France 1.8%
Sweden 1.8%
United Arab Emirates 1.4%
Hong Kong 1.2%
Other (individually less than 1%) 4.8%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Microsoft Corp. 3.88%
--------------------------------------------------------------------------------
2. Cardinal Health, Inc. 3.46
--------------------------------------------------------------------------------
3. CVS Health Corp. 3.33
--------------------------------------------------------------------------------
4. Johnson & Johnson 3.11
--------------------------------------------------------------------------------
5. Apple, Inc. 2.69
--------------------------------------------------------------------------------
6. Allianz SE 2.65
--------------------------------------------------------------------------------
7. Pfizer, Inc. 2.52
--------------------------------------------------------------------------------
8. Roche Holding AG 2.52
--------------------------------------------------------------------------------
9. JPMorgan Chase & Co. 2.35
--------------------------------------------------------------------------------
10. Novartis AG 2.23
--------------------------------------------------------------------------------
* 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 | 8/31/15
Prices and Distributions | 8/31/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/15 8/31/14
--------------------------------------------------------------------------------
A $13.00 $14.05
--------------------------------------------------------------------------------
C $12.72 $13.78
--------------------------------------------------------------------------------
Y $13.06 $14.12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/15 12/31/14*
--------------------------------------------------------------------------------
K $13.03 $13.51
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/15 7/1/15**
--------------------------------------------------------------------------------
R $12.99 $14.08
--------------------------------------------------------------------------------
Distributions per Share:9/1/14-8/31/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.3828 $-- $--
--------------------------------------------------------------------------------
C $0.3047 $-- $--
--------------------------------------------------------------------------------
K $ -- $-- $--
--------------------------------------------------------------------------------
R $ -- $-- $--
--------------------------------------------------------------------------------
Y $0.4492 $-- $--
--------------------------------------------------------------------------------
The Morgan Stanley Capital International (MSCI) World ND Index is an unmanaged
measure of the performance of stock markets in the developed world. The MSCI All
Country World ND Index is an unmanaged, free-float-adjusted,
market-capitalization-weighted index that is designed to measure the equity
market performance of developed and emerging markets. The Index consists of 45
country indices comprising 24 developed and 21 emerging market country indices.
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 10-14.
* Class K shares commenced operations on December 31, 2014.
** Class R shares commenced operations on July 1, 2015.
Pioneer Global Equity Fund | Annual Report | 8/31/15 9
Performance Update | 8/31/15 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 and the MSCI All Country World ND
Index.
Average Annual Total Returns
(As of August 31, 2015)
--------------------------------------------------------------------------------
MSCI
Net Public MSCI All
Asset Offering World Country
Value Price ND World
Period (NAV) (POP) Index ND Index
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 4.87% 4.23% 4.90% 4.74%
5 Years 10.75 9.46 11.07 9.60
1 Year -4.88 -10.37 -4.13 -6.29
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated July 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.61% 1.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI World MSCI AC
Equity Fund ND Index World ND IX
12/05 $ 9,425 $ 10,000 $ 10,000
8/06 $ 10,547 $ 10,949 $ 10,962
8/07 $ 12,085 $ 12,807 $ 13,052
8/08 $ 10,794 $ 11,261 $ 11,493
8/09 $ 9,085 $ 9,323 $ 9,605
8/10 $ 8,982 $ 9,467 $ 9,941
8/11 $ 9,923 $ 10,836 $ 11,304
8/12 $ 10,470 $ 11,716 $ 12,007
8/13 $ 12,477 $ 13,781 $ 13,865
8/14 $ 15,736 $ 16,688 $ 16,775
8/15 $ 14,968 $ 15,999 $ 15,720
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, 2017, 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 | 8/31/15
Performance Update | 8/31/15 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 and the MSCI All Country World ND Index.
Average Annual Total Returns
(As of August 31, 2015)
--------------------------------------------------------------------------------
MSCI
MSCI All
World Country
If If ND World
Period Held Redeemed Index ND Index
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 3.94% 3.94% 4.90% 4.74%
5 Years 9.77 9.77 11.07 9.60
1 Year -5.60 -5.60 -4.13 -6.29
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated July 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.40% 2.25%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI World MSCI AC
Equity Fund ND Index World ND IX
12/05 $ 10,000 $ 10,000 $ 10,000
8/06 $ 11,111 $ 10,949 $ 10,962
8/07 $ 12,628 $ 12,807 $ 13,052
8/08 $ 11,179 $ 11,261 $ 11,493
8/09 $ 9,326 $ 9,323 $ 9,605
8/10 $ 9,139 $ 9,467 $ 9,941
8/11 $ 9,997 $ 10,836 $ 11,304
8/12 $ 10,453 $ 11,716 $ 12,007
8/13 $ 12,347 $ 13,781 $ 13,865
8/14 $ 15,432 $ 16,688 $ 16,775
8/15 $ 14,567 $ 15,999 $ 15,720
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, 2017, 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 Global Equity Fund | Annual Report | 8/31/15 11
Performance Update | 8/31/15 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class K shares of Pioneer Global Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index and the MSCI All Country World ND Index.
Average Annual Total Returns
(As of August 31, 2015)
--------------------------------------------------------------------------------
MSCI
Net MSCI All
Asset World Country
Value ND World
Period (NAV) Index ND Index
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 4.89% 4.90% 4.74%
5 Years 10.80 11.07 9.60
1 Year -4.66 -4.13 -6.29
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated July 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.00% 0.85%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI World MSCI AC
Equity Fund ND Index World ND IX
12/05 $ 10,000 $ 10,000 $ 10,000
8/06 $ 11,191 $ 10,949 $ 10,962
8/07 $ 12,823 $ 12,807 $ 13,052
8/08 $ 11,453 $ 11,261 $ 11,493
8/09 $ 9,640 $ 9,323 $ 9,605
8/10 $ 9,530 $ 9,467 $ 9,941
8/11 $ 10,529 $ 10,836 $ 11,304
8/12 $ 11,109 $ 11,716 $ 12,007
8/13 $ 13,238 $ 13,781 $ 13,865
8/14 $ 16,697 $ 16,688 $ 16,775
8/15 $ 15,918 $ 15,999 $ 15,720
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.
The performance shown for Class K shares for the period prior to the
commencement of operations of Class K shares on December 31, 2014, is the net
asset value performance of the Fund's Class A shares, which has not been
restated to reflect any differences in expenses, including Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares generally are higher
than those of Class K shares, the performance of Class K shares prior to their
inception would have been higher than the performance shown. For the period
beginning December 31, 2014, the actual performance of Class K shares is
reflected. Class K 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, 2017, for Class K 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 | 8/31/15
Performance Update | 8/31/15 Class R Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer Global Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index and the MSCI All Country World ND Index.
Average Annual Total Returns
(As of August 31, 2015)
--------------------------------------------------------------------------------
MSCI
Net MSCI All
Asset World Country
Value ND World
Period (NAV) Index ND Index
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 4.86% 4.90% 4.74%
5 Years 10.74 11.07 9.60
1 Year -4.96 -4.13 -6.29
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated July 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.72% 1.60%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI World MSCI AC
Equity Fund ND Index World ND IX
12/05 $ 10,000 $ 10,000 $ 10,000
8/06 $ 11,191 $ 10,949 $ 10,962
8/07 $ 12,823 $ 12,807 $ 13,052
8/08 $ 11,453 $ 11,261 $ 11,493
8/09 $ 9,640 $ 9,323 $ 9,605
8/10 $ 9,530 $ 9,467 $ 9,941
8/11 $ 10,529 $ 10,836 $ 11,304
8/12 $ 11,109 $ 11,716 $ 12,007
8/13 $ 13,238 $ 13,781 $ 13,865
8/14 $ 16,697 $ 16,688 $ 16,775
8/15 $ 15,869 $ 15,999 $ 15,720
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.
The performance shown for Class R shares for the period prior to the
commencement of operations of Class R shares on July 1, 2015, is the net asset
value performance of the Fund's Class A shares, which has not been restated to
reflect any differences in expenses, including Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares generally are higher than those of
Class R shares, the performance of Class R shares prior to their inception would
have been higher than the performance shown. For the period beginning July 1,
2015, the actual performance of Class R shares is reflected. Class R 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, 2017, for Class R 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 | 8/31/15 13
Performance Update | 8/31/15 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 and the MSCI All Country World ND Index.
Average Annual Total Returns
(As of August 31, 2015)
--------------------------------------------------------------------------------
MSCI
Net MSCI All
Asset World Country
Value ND World
Period (NAV) Index ND Index
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 5.22% 4.90% 4.74%
5 Years 11.27 11.07 9.60
1 Year -4.48 -4.13 -6.29
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated July 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.00% 0.85%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global MSCI World MSCI AC
Equity Fund ND Index World ND IX
12/05 $ 5,000,000 $ 5,000,000 $ 5,000,000
8/06 $ 5,595,596 $ 5,474,445 $ 5,481,196
8/07 $ 6,411,652 $ 6,403,612 $ 6,525,919
8/08 $ 5,726,587 $ 5,630,699 $ 5,746,515
8/09 $ 4,836,744 $ 4,661,475 $ 4,802,534
8/10 $ 4,808,018 $ 4,733,454 $ 4,970,309
8/11 $ 5,335,128 $ 5,417,874 $ 5,651,996
8/12 $ 5,659,822 $ 5,857,774 $ 6,003,320
8/13 $ 6,777,847 $ 6,890,617 $ 6,932,391
8/14 $ 8,584,523 $ 8,344,239 $ 8,387,474
8/15 $ 8,200,228 $ 7,999,625 $ 7,860,207
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, 2017, 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 Global Equity Fund | Annual Report | 8/31/15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments 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, 2015, through August 31, 2015.
--------------------------------------------------------------------------------
Share Class A C K R Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 3/1/15
--------------------------------------------------------------------------------
Ending Account $ 932.64 $ 914.20 $ 964.50 $ 922.60 $ 934.18
Value on 8/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 6.53 $ 10.08 $ 4.11 $ 2.32 $ 4.10
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratios of the underlying funds. These combined totals were 1.34%,
2.09%, 0.83%, 1.42% and 0.84% for Class A, Class C, Class K, Class R, and
Class Y shares, respectively. These combined ratios were multiplied by the
average account value over the period and then multiplied by 184/365 and
(62/365) for Class R shares (to reflect the one-half year period).
Pioneer Global Equity Fund | Annual Report | 8/31/15 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) or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global Equity Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2015, through August 31, 2015.
--------------------------------------------------------------------------------
Share Class A C K R Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 3/1/15
--------------------------------------------------------------------------------
Ending Account $1,018.45 $1,014.67 $1,021.02 $1,006.08 $1,020.97
Value on 8/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 6.82 $ 10.61 $ 4.23 $ 2.42 $ 4.28
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratios of the underlying funds. These combined totals were 1.34%,
2.09%, 0.83%, 1.42% and 0.84% for Class A, Class C, Class K, Class R, and
Class Y shares, respectively. These combined ratios were multiplied by the
average account value over the period and then multiplied by 184/365 and
(62/365) for Class R shares (to reflect the one-half year period).
16 Pioneer Global Equity Fund | Annual Report | 8/31/15
Schedule of Investments | 8/31/15
---------------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------------
COMMON STOCKS -- 95.3%
ENERGY -- 1.8%
Oil & Gas Equipment & Services -- 1.1%
18,276 Baker Hughes, Inc. $ 1,023,456
11,160 Schlumberger, Ltd. 863,449
-------------
$ 1,886,905
---------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.7%
74,988 Southwestern Energy Co.* $ 1,217,805
-------------
Total Energy $ 3,104,710
---------------------------------------------------------------------------------------------
MATERIALS -- 1.5%
Commodity Chemicals -- 0.6%
14,427 Methanex Corp. $ 589,675
12,389 Methanex Corp. 504,976
-------------
$ 1,094,651
---------------------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.9%
4,276 Syngenta AG $ 1,480,611
-------------
Total Materials $ 2,575,262
---------------------------------------------------------------------------------------------
CAPITAL GOODS -- 2.5%
Heavy Electrical Equipment -- 1.2%
206,000 Mitsubishi Electric Corp. $ 2,048,672
---------------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.4%
5,999 WABCO Holdings, Inc.* $ 691,805
---------------------------------------------------------------------------------------------
Industrial Machinery -- 0.9%
26,206 Ingersoll-Rand Plc $ 1,448,930
158,400 Sarine Technologies, Ltd. 156,579
-------------
$ 1,605,509
-------------
Total Capital Goods $ 4,345,986
---------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.7%
Diversified Support Services -- 0.0%+
1,667 TransUnion $ 43,109
---------------------------------------------------------------------------------------------
Human Resource & Employment Services -- 0.7%
10,151 Towers Watson & Co. $ 1,205,228
-------------
Total Commercial Services & Supplies $ 1,248,337
---------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.5%
Airlines -- 2.5%
67,104 American Airlines Group, Inc. $ 2,615,714
68,098 EasyJet Plc 1,745,852
-------------
$ 4,361,566
-------------
Total Transportation $ 4,361,566
---------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 3.8%
Auto Parts & Equipment -- 0.7%
76,650 SAF-Holland SA* $ 1,088,364
---------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/15 17
Schedule of Investments | 8/31/15 (continued)
---------------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------------
Tires & Rubber -- 1.2%
62,700 Bridgestone Corp. $ 2,097,975
---------------------------------------------------------------------------------------------
Automobile Manufacturers -- 1.9%
25,886 Daimler AG $ 2,083,896
6,509 Volkswagen AG 1,218,437
-------------
$ 3,302,333
-------------
Total Automobiles & Components $ 6,488,672
---------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 3.0%
Consumer Electronics -- 0.5%
80,700 Panasonic Corp. $ 887,621
---------------------------------------------------------------------------------------------
Homebuilding -- 2.5%
49,573 PulteGroup, Inc. $ 1,025,665
286,000 Sekisui Chemical Co., Ltd. 3,147,941
-------------
$ 4,173,606
-------------
Total Consumer Durables & Apparel $ 5,061,227
---------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 2.2%
Hotels, Resorts & Cruise Lines -- 1.4%
44,540 InterContinental Hotels Group Plc $ 1,671,116
10,021 Marriott International, Inc. 708,084
-------------
$ 2,379,200
---------------------------------------------------------------------------------------------
Restaurants -- 0.8%
99,658 Domino's Pizza Group Plc $ 1,313,639
-------------
Total Consumer Services $ 3,692,839
---------------------------------------------------------------------------------------------
MEDIA -- 2.1%
Advertising -- 0.8%
19,037 Publicis Groupe SA $ 1,353,072
---------------------------------------------------------------------------------------------
Broadcasting -- 1.1%
40,760 CBS Corp. (Class B) $ 1,843,982
---------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.2%
10,877 Viacom, Inc. (Class B) $ 443,455
-------------
Total Media $ 3,640,509
---------------------------------------------------------------------------------------------
RETAILING -- 0.9%
Apparel Retail -- 0.9%
30,890 Ross Stores, Inc. $ 1,501,872
-------------
Total Retailing $ 1,501,872
---------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 5.4%
Drug Retail -- 3.4%
53,013 CVS Health Corp. $ 5,428,531
9,000 Sundrug Co., Ltd. 504,302
-------------
$ 5,932,833
---------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Equity Fund | Annual Report | 8/31/15
---------------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------------
Food Retail -- 2.0%
66,781 Jeronimo Martins SGPS SA $ 923,721
28,323 Walgreens Boots Alliance, Inc. 2,451,356
-------------
$ 3,375,077
-------------
Total Food & Staples Retailing $ 9,307,910
---------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 3.6%
Soft Drinks -- 1.0%
166,998 Britvic Plc $ 1,705,622
---------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 1.1%
19,955 Keurig Green Mountain, Inc. $ 1,129,453
1,259,500 WH Group, Ltd.* 659,052
-------------
$ 1,788,505
---------------------------------------------------------------------------------------------
Tobacco -- 1.5%
72,800 Japan Tobacco, Inc. $ 2,591,653
-------------
Total Food, Beverage & Tobacco $ 6,085,780
---------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.8%
Health Care Equipment -- 0.6%
7,510 Edwards Lifesciences Corp.* $ 1,058,009
---------------------------------------------------------------------------------------------
Health Care Distributors -- 3.5%
68,540 Cardinal Health, Inc. $ 5,638,786
12,202 Fagron 323,273
-------------
$ 5,962,059
---------------------------------------------------------------------------------------------
Health Care Technology -- 0.7%
54,630 NNIT A/S $ 1,256,931
-------------
Total Health Care Equipment & Services $ 8,276,999
---------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 13.9%
Biotechnology -- 1.1%
17,250 Gilead Sciences, Inc.* $ 1,812,458
---------------------------------------------------------------------------------------------
Pharmaceuticals -- 12.1%
8,148 Jazz Pharmaceuticals Plc* $ 1,375,545
53,931 Johnson & Johnson 5,068,435
30,551 Merck & Co., Inc. 1,645,171
37,195 Novartis AG 3,638,039
127,664 Pfizer, Inc. 4,113,334
15,134 Roche Holding AG 4,108,276
10,951 Shire Plc 846,256
-------------
$ 20,795,056
---------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.7%
9,476 Thermo Fisher Scientific, Inc. $ 1,188,006
-------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 23,795,520
---------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/15 19
Schedule of Investments | 8/31/15 (continued)
---------------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------------
BANKS -- 13.3%
Diversified Banks -- 10.7%
823,387 Abu Dhabi Commercial Bank PJSC $ 1,791,803
265,702 Aldermore Group Plc 1,233,829
23,552 Citigroup, Inc. 1,259,561
132,154 First Gulf Bank PJSC 515,839
59,879 JPMorgan Chase & Co. 3,838,244
515,000 Mitsubishi UFJ Financial Group, Inc. 3,387,457
140,885 Nordea Bank AB 1,664,638
82,100 Sumitomo Mitsui Financial Group, Inc. 3,350,148
55,873 Swedbank AB 1,274,527
-------------
$ 18,316,046
---------------------------------------------------------------------------------------------
Regional Banks -- 2.6%
35,000 Citizens Financial Group, Inc. $ 868,700
38,836 The PNC Financial Services Group, Inc. 3,538,736
-------------
$ 4,407,436
-------------
Total Banks $ 22,723,482
---------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 9.0%
Other Diversified Financial Services -- 1.5%
60,287 Voya Financial, Inc. $ 2,597,164
---------------------------------------------------------------------------------------------
Specialized Finance -- 2.5%
9,169 Intercontinental Exchange, Inc. $ 2,094,291
42,370 Nasdaq, Inc. 2,168,920
-------------
$ 4,263,211
---------------------------------------------------------------------------------------------
Consumer Finance -- 1.3%
39,738 Discover Financial Services, Inc. $ 2,135,123
---------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 1.4%
69,881 Morgan Stanley Co. $ 2,407,400
---------------------------------------------------------------------------------------------
Diversified Capital Markets -- 2.3%
70,725 Credit Suisse Group AG $ 1,900,973
100,363 UBS Group AG 2,076,510
-------------
$ 3,977,483
-------------
Total Diversified Financials $ 15,380,381
---------------------------------------------------------------------------------------------
INSURANCE -- 2.8%
Multi-line Insurance -- 2.8%
27,005 Allianz SE* $ 4,314,910
1,816 Zurich Insurance Group AG 498,592
-------------
$ 4,813,502
-------------
Total Insurance $ 4,813,502
---------------------------------------------------------------------------------------------
REAL ESTATE -- 0.6%
Diversified Real Estate Activities -- 0.6%
195,800 Leopalace21 Corp. $ 950,389
-------------
Total Real Estate $ 950,389
---------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Equity Fund | Annual Report | 8/31/15
---------------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 10.3%
Internet Software & Services -- 4.3%
57,401 eBay, Inc. * $ 1,556,141
4,466 Google, Inc. (Class A)* 2,893,164
4,688 Google, Inc. (Class C) 2,898,356
-------------
$ 7,347,661
---------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 2.3%
57,401 PayPal Holdings, Inc. $ 2,009,035
26,582 Visa, Inc. 1,895,297
-------------
$ 3,904,332
---------------------------------------------------------------------------------------------
Systems Software -- 3.7%
145,544 Microsoft Corp. $ 6,334,076
-------------
Total Software & Services $ 17,586,069
---------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 5.8%
Communications Equipment -- 0.7%
22,127 Qualcomm, Inc. $ 1,251,946
---------------------------------------------------------------------------------------------
Computer Storage & Peripherals -- 2.6%
38,829 Apple, Inc. $ 4,378,358
---------------------------------------------------------------------------------------------
Computer Hardware Storage & Peripherals -- 1.4%
76,662 NetApp, Inc. $ 2,450,118
---------------------------------------------------------------------------------------------
Electronic Equipment Manufacturers -- 0.9%
922,000 PAX Global Technology, Ltd.* $ 854,704
628,000 Wasion Group Holdings, Ltd. 598,779
-------------
$ 1,453,483
---------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.2%
95,000 Global Display Co., Ltd. $ 327,544
-------------
Total Technology Hardware & Equipment $ 9,861,449
---------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 1.4%
Semiconductors -- 1.4%
501,000 Advanced Semiconductor Engineering, Inc. $ 509,636
42,865 SK Hynix, Inc. 1,296,623
224,000 Transcend Information, Inc. 603,533
-------------
$ 2,409,792
-------------
Total Semiconductors & Semiconductor Equipment $ 2,409,792
---------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 3.4%
Integrated Telecommunication Services -- 3.4%
66,522 Euskaltel SA $ 782,953
88,800 Nippon Telegraph & Telephone Corp. 3,393,624
106,136 Orange SA 1,675,620
-------------
$ 5,852,197
-------------
Total Telecommunication Services $ 5,852,197
---------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/15 21
Schedule of Investments | 8/31/15 (continued)
---------------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $159,521,016) $ 163,064,450
---------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 95.3%
(Cost $159,521,016) (a) (b) $ 163,064,450
---------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 4.7% $ 8,026,760
---------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 171,091,210
=============================================================================================
* Non-income producing security.
+ Amount rounds to less than 0.1%.
(a) At August 31, 2015, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $159,667,839 was as
follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost $ 12,977,044
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value (9,580,433)
-------------
Net unrealized appreciation $ 3,396,611
=============
(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 54.7%
Japan 13.7%
Switzerland 8.4%
Germany 5.3%
United Kingdom 4.7%
Ireland 2.2%
France 1.8%
Sweden 1.8%
United Arab Emirates 1.4%
Hong Kong 1.2%
Other (individually less than 1%) 4.8%
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2015 aggregated $188,886,111 and $176,728,085,
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 accompanying notes are an integral part of these financial statements.
22 Pioneer Global Equity Fund | Annual Report | 8/31/15
The following is a summary of the inputs used as of August 31, 2015, in valuing
the Fund's investments:
---------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------
Common Stocks
Energy
Oil & Gas Equipment
& Services $ 1,886,905 $ -- $ -- $ 1,886,905
Oil & Gas Exploration
& Production 1,217,805 -- -- 1,217,805
Materials
Commodity Chemicals 1,094,651 -- -- 1,094,651
Capital Goods
Construction & Farm
Machinery & Heavy Trucks 691,805 -- -- 691,805
Industrial Machinery 1,448,930 156,579 -- 1,605,509
Commercial Services
& Supplies
Diversified Support Services 43,109 -- -- 43,109
Human Resource &
Employment Services 1,205,228 -- -- 1,205,228
Transportation
Airlines 2,615,714 1,745,852 -- 4,361,566
Consumer Durables & Apparel
Homebuilding 1,025,665 3,147,941 -- 4,173,606
Consumer Services
Hotels, Resorts &
Cruise Lines 708,084 1,671,116 -- 2,379,200
Media
Broadcasting 1,843,982 -- -- 1,843,982
Movies & Entertainment 443,455 -- -- 443,455
Retailing
Apparel Retail 1,501,872 -- -- 1,501,872
Food & Staples Retailing
Drug Retail 5,428,531 504,302 -- 5,932,833
Food Retail 2,451,356 923,721 -- 3,375,077
Food, Beverage & Tobacco
Packaged Foods & Meats 1,129,453 659,052 -- 1,788,505
Health Care Equipment
& Services
Health Care Equipment 1,058,009 -- -- 1,058,009
Health Care Distributors 5,638,786 323,273 -- 5,962,059
Pharmaceuticals, Biotechnology
& Life Sciences
Biotechnology 1,812,458 -- -- 1,812,458
Pharmaceuticals 12,202,485 8,592,571 -- 20,795,056
Life Sciences Tools & Services 1,188,006 -- -- 1,188,006
Banks
Diversified Banks 5,097,805 13,218,241 -- 18,316,046
Regional Banks 4,407,436 -- -- 4,407,436
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/15 23
Schedule of Investments | 8/31/15 (continued)
----------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------
Diversified Financials
Other Diversified
Financial Services $ 2,597,164 $ -- $ -- $ 2,597,164
Specialized Finance 4,263,211 -- -- 4,263,211
Consumer Finance 2,135,123 -- -- 2,135,123
Investment Banking
& Brokerage 2,407,400 -- -- 2,407,400
Software & Services
Internet Software & Services 7,347,661 -- -- 7,347,661
Data Processing &
Outsourced Services 3,904,332 -- -- 3,904,332
Systems Software 6,334,076 -- -- 6,334,076
Technology Hardware
& Equipment
Communications Equipment 1,251,946 -- -- 1,251,946
Computer Storage
& Peripherals 4,378,358 -- -- 4,378,358
Computer Hardware
Storage & Peripherals 2,450,118 -- -- 2,450,118
All Other Common Stocks -- 38,910,883 -- 38,910,883
----------------------------------------------------------------------------------
Total $93,210,919 $ 69,853,531 $ -- $163,064,450
==================================================================================
During the year ended August 31, 2015, there were no transfers between Levels 1,
2 and 3.
The following is a summary of the fair valuation of certain Fund's assets and
liabilities as of August 31, 2015.
----------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------
Assets:
Restricted cash $ -- $ 839,500 $ -- $ 839,500
Cash at broker -- 93,000 -- 93,000
Foreign currencies -- 1,309,010 -- 1,309,010
----------------------------------------------------------------------------------
Total $ -- $2,241,510 $ -- $2,241,510
==================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Equity Fund | Annual Report | 8/31/15
Statement of Assets and Liabilities | 8/31/15
ASSETS:
Investment in securities (cost $159,521,016) $163,064,450
Cash 8,157,728
Foreign currencies, at value (cost $1,298,712) 1,309,010
Restricted cash 839,500
Cash at broker 93,000
Receivables --
Investment securities sold 505,333
Fund shares sold 120,799
Dividends and foreign taxes withheld of $20,801 564,675
Due from Pioneer Investment Management, Inc. 90,318
Other assets 27,514
--------------------------------------------------------------------------------------
Total assets $174,772,327
======================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 3,319,701
Fund shares repurchased 109,972
Trustee fees 985
Due to affiliates 81,865
Accrued expenses 168,594
--------------------------------------------------------------------------------------
Total liabilities $ 3,681,117
======================================================================================
NET ASSETS:
Paid-in capital $182,841,703
Undistributed net investment income 1,034,603
Accumulated net realized loss on investments, futures contracts,
swap contracts and foreign currency transactions (16,301,904)
Net unrealized appreciation on investments 3,543,434
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (26,626)
--------------------------------------------------------------------------------------
Total net assets $171,091,210
======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $77,114,732/5,932,173 shares) $ 13.00
Class C (based on $13,552,129/1,065,094 shares) $ 12.72
Class K (based on $54,304,618/4,166,062 shares) $ 13.03
Class R (based on $2,304,255/177,324 shares) $ 12.99
Class Y (based on $23,815,476/1,823,103 shares) $ 13.06
MAXIMUM OFFERING PRICE:
Class A ($13.00 (divided by) 94.25%) $ 13.79
======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/15 25
Statement of Operations
For the Year Ended 8/31/15
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $174,485) $ 3,204,244
Interest 600
---------------------------------------------------------------------------------------------------------------
Total investment income $ 3,204,844
---------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,265,457
Transfer agent fees
Class A 173,985
Class B* 4,270
Class C 19,846
Class R 15
Class Y 575
Distribution fees
Class A 200,168
Class B* 3,685
Class C 120,428
Class R 860
Shareholder communications expense 116,422
Administrative reimbursements 63,583
Custodian fees 46,924
Registration fees 67,226
Professional fees 64,007
Printing expense 34,911
Fees and expenses of nonaffiliated Trustees 6,826
Miscellaneous 18,055
---------------------------------------------------------------------------------------------------------------
Total expenses $ 2,207,243
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (306,852)
---------------------------------------------------------------------------------------------------------------
Net expenses $ 1,900,391
---------------------------------------------------------------------------------------------------------------
Net investment income $ 1,304,453
---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES
CONTRACTS,WRITTEN OPTIONS, TOTAL RETURN SWAP AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments (net of foreign capital gains taxes of $113,048) $ 10,046,481
Futures contracts (717,347)
Total return swap 1,303,407
Written options 61,281
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (188,525) $ 10,505,297
---------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ (20,678,275)
Futures contracts 147,350
Total return swap (78,710)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 54,758 $ (20,554,877)
---------------------------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments, futures contracts,
total return swap and foreign currency transactions $ (10,049,580)
---------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (8,745,127)
===============================================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Equity Fund | Annual Report | 8/31/15
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/15 8/31/14
--------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 1,304,453 $ 3,470,519
Net realized gain on investments, futures contracts,
total return swap, written options, and foreign
currency transactions 10,505,297 21,338,272
Change in net unrealized appreciation (depreciation)
on investments, futures contracts, total return
swap and foreign currency transactions (20,554,877) 11,183,577
--------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (8,745,127) $ 35,992,368
--------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.38 and $0.20 per share, respectively) $ (2,165,744) $ (1,074,448)
Class B* ($0.00 and $0.07 per share, respectively) -- (14,217)
Class C ($0.30 and $0.10 per share, respectively) (252,529) (57,648)
Class Y ($0.45 and $0.25 per share, respectively) (2,272,661) (1,568,569)
--------------------------------------------------------------------------------------------
Total distributions to shareowners $ (4,690,934) $ (2,714,882)
--------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS: (a)
Net proceeds from sale or exchange of shares $121,389,969 $ 14,621,595
Reinvestment of distributions 2,627,476 1,128,095
Cost of shares repurchased (97,010,855) (35,112,389)
--------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Fund
share transactions $ 27,006,590 $ (19,362,699)
--------------------------------------------------------------------------------------------
Net increase in net assets $ 13,570,529 $ 13,914,787
NET ASSETS:
Beginning of year $157,520,681 $ 143,605,894
--------------------------------------------------------------------------------------------
End of year $171,091,210 $ 157,520,681
--------------------------------------------------------------------------------------------
Undistributed net investment income $ 1,034,603 $ 3,778,748
============================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
(a) At August 31, 2015 Pioneer Asset Allocation Trust owed 30.3% of the value of
outstanding shares of Pioneer Global Equity Fund.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/15 27
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
8/31/15 8/31/15 8/31/14 8/31/14
Shares Amount Shares Amount
--------------------------------------------------------------------------------------------
Class A
Shares sold 1,540,016 $ 21,741,127 603,313 $ 7,775,776
Reinvestment of distributions 152,847 2,090,959 81,986 1,045,326
Less shares repurchased (1,217,019) (17,064,588) (798,782) (10,307,534)
--------------------------------------------------------------------------------------------
Net increase (decrease) 475,844 $ 6,767,498 (113,483) $ (1,486,432)
============================================================================================
Class B*
Shares sold or exchanged -- $ -- 10,609 $ 126,556
Reinvestment of distributions -- -- 1,102 13,921
Less shares repurchased (149,799) (2,044,742) (74,502) (944,641)
--------------------------------------------------------------------------------------------
Net decrease (149,799) $ (2,044,742) (62,791) $ (804,164)
============================================================================================
Class C
Shares sold 625,499 $ 8,578,097 158,541 $ 2,023,027
Reinvestment of distributions 17,966 241,637 4,350 54,723
Less shares repurchased (189,906) (2,624,849) (137,739) (1,776,869)
--------------------------------------------------------------------------------------------
Net increase 453,559 $ 6,194,885 25,152 $ 300,881
============================================================================================
Class K**
Shares sold 4,271,583 $ 57,908,556 -- $ --
Reinvestment of distributions -- -- -- --
Less shares repurchased (105,521) (1,492,962) -- --
--------------------------------------------------------------------------------------------
Net increase 4,166,062 $ 56,415,594 -- $ --
============================================================================================
Class R***
Shares sold 181,756 $ 2,526,092 -- $ --
Reinvestment of distributions -- -- -- --
Less shares repurchased (4,432) (62,198) -- --
--------------------------------------------------------------------------------------------
Net increase 177,324 $ 2,463,894 -- $ --
============================================================================================
Class Y
Shares sold 2,156,949 $ 30,636,097 349,580 $ 4,696,236
Reinvestment of distributions 21,508 294,880 1,106 14,125
Less shares repurchased (5,339,157) (73,721,516) (1,676,590) (22,083,345)
--------------------------------------------------------------------------------------------
Net decrease (3,160,700) $ (42,790,539) (1,325,904) $ (17,372,984)
============================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
** Class K shares commenced operations on December 31, 2014.
*** Class R shares commenced operations on July 1, 2015.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Equity Fund | Annual Report | 8/31/15
Financial Highlights
--------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/15 8/31/14 8/31/13 8/31/12 8/31/11
--------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 14.05 $ 11.31 $ 9.64 $ 9.27 $ 8.44
--------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.07 $ 0.27 $ 0.15 $ 0.17 $ 0.13
Net realized and unrealized gain (loss) on investments (0.74) 2.67 1.68 0.33 0.76
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.67) $ 2.94 $ 1.83 $ 0.50 $ 0.89
--------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.38) $ (0.20) $ (0.16) $ (0.13) $ (0.06)
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.05) $ 2.74 $ 1.67 $ 0.37 $ 0.83
--------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.00 $ 14.05 $ 11.31 $ 9.64 $ 9.27
==============================================================================================================
Total return* (4.88)% 26.13% 19.17% 5.50% 10.48%
Ratio of net expenses to average net assets 1.30% 1.30% 1.30% 1.30% 1.30%
Ratio of net investment income (loss) to average net assets 0.60% 2.01% 1.35% 1.71% 1.23%
Portfolio turnover rate 109% 121% 160% 152% 194%
Net assets, end of period (in thousands) $77,115 $76,638 $62,996 $56,970 $60,701
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.50% 1.56% 1.67% 1.72% 1.67%
Net investment income (loss) to average net assets 0.40% 1.75% 0.98% 1.29% 0.86%
==============================================================================================================
* 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 | 8/31/15 29
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/15 8/31/14 8/31/13 8/31/12 8/31/11
----------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 13.78 $ 11.11 $ 9.47 $ 9.09 $ 8.31
----------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.08)(a) $ 0.14 $ 0.05 $ 0.10 $ 0.04
Net realized and unrealized gain (loss) on investments (0.68) 2.63 1.66 0.31 0.74
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.76) $ 2.77 $ 1.71 $ 0.41 $ 0.78
----------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.30) $ (0.10) $ (0.07) $ (0.03) $ --
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.06) $ 2.67 $ 1.64 $ 0.38 $ 0.78
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.72 $ 13.78 $ 11.11 $ 9.47 $ 9.09
================================================================================================================
Total return* (5.60)% 24.98% 18.11% 4.56% 9.39%
Ratio of net expenses to average net assets 2.05% 2.20% 2.20% 2.20% 2.20%
Ratio of net investment income (loss) to average net assets (0.14)% 1.13% 0.45% 0.82% 0.35%
Portfolio turnover rate 109% 121% 160% 152% 194%
Net assets, end of period (in thousands) $13,552 $ 8,427 $ 6,516 $ 5,682 $ 6,439
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 2.21% 2.35% 2.51% 2.53% 2.48%
Net investment income (loss) to average net assets (0.30)% 0.98% 0.14% 0.49% 0.07%
================================================================================================================
* 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.
(a) The amount shown for a share outstanding does not correspond with net
investment income on the Statement of Operations for the period due to
timing of the sales and repurchase of shares.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Equity Fund | Annual Report | 8/31/15
--------------------------------------------------------------------------------
12/31/14
to
8/31/15
--------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 13.51
--------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.11
Net realized and unrealized gain (loss) on investments (0.59)
--------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.48)
--------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ --
--------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.48)
--------------------------------------------------------------------------------
Net asset value, end of period $ 13.03
================================================================================
Total return* (3.55)%***
Ratio of net expenses to average net assets 0.79%**
Ratio of net investment income (loss) to average net assets 1.44%**
Portfolio turnover rate 109%
Net assets, end of period (in thousands) $ 54,305
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 0.95%**
Net investment income (loss) 1.28%**
================================================================================
* 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.
** Annualized.
*** Not annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/15 31
Financial Highlights (continued)
--------------------------------------------------------------------------------
7/1/15
to
8/31/15
--------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 14.08
--------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.00(a)
Net realized and unrealized gain (loss) on investments (1.09)
--------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.09)
--------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ --
--------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.09)
--------------------------------------------------------------------------------
Net asset value, end of period $ 12.99
================================================================================
Total return* (7.74)%***
Ratio of net expenses to average net assets 1.38%**
Ratio of net investment income (loss) to average net assets 0.25%**
Portfolio turnover rate 109%
Net assets, end of period (in thousands) $ 2,304
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.55%**
Net investment income (loss) to average net assets 0.08%**
================================================================================
* 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.
** 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 Global Equity Fund | Annual Report | 8/31/15
--------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/15 8/31/14 8/31/13 8/31/12 8/31/11
--------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 14.12 $ 11.37 $ 9.69 $ 9.32 $ 8.49
--------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.01 $ 0.37 $ 0.20 $ 0.21 $ 0.18
Net realized and unrealized gain (loss) on investments (0.62) 2.63 1.69 0.34 0.76
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.61) $ 3.00 $ 1.89 $ 0.55 $ 0.94
--------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.45) $ (0.25) $ (0.21) $ (0.18) $ (0.11)
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.06) $ 2.75 $ 1.68 $ 0.37 $ 0.83
--------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.06 $ 14.12 $ 11.37 $ 9.69 $ 9.32
==============================================================================================================
Total return* (4.48)% 26.66% 19.75% 6.09% 10.96%
Ratio of net expenses to average net assets 0.80% 0.80% 0.80% 0.80% 0.80%
Ratio of net investment income (loss) to average net assets 0.85% 2.58% 1.85% 2.22% 1.74%
Portfolio turnover rate 109% 121% 160% 152% 194%
Net assets, end of period (in thousands) $23,815 $70,384 $71,726 $60,214 $59,927
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.96% 0.95% 1.00% 0.97% 0.95%
Net investment income (loss) to average net assets 0.69% 2.43% 1.65% 2.05% 1.59%
==============================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/15 33
Notes to Financial Statements | 8/31/15
1. Organization and Significant Accounting Policies
Pioneer Global 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 five classes of shares designated as Class A, Class C, Class K,
Class R and Class Y shares. Class K shares commenced operations on December 31,
2014. Class R shares commenced operations on July 1, 2015. Class B shares were
converted to Class A shares as of the close of business on November 10, 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 of Trustees the flexibility to specify
either per-share voting or dollar-weighted voting when submitting matters for
shareholder approval. Under per-share voting, each share of a class of the Fund
is entitled to one vote. Under dollar-weighted voting, a shareholder's voting
power is determined not by the number of shares owned, but by the dollar value
of the shares on the record date. Each share class has exclusive voting rights
with respect to matters affecting only that class, including with respect to the
distribution plan for that class. There is no distribution plan for Class Y
shares.
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:
34 Pioneer Global Equity Fund | Annual Report | 8/31/15
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. Shares of money market mutual funds
are valued at such funds' net asset value. Cash may include overnight time
deposits at approved financial institutions.
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, 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.
Pioneer Global Equity Fund | Annual Report | 8/31/15 35
At August 31, 2015, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services or broker-dealers).
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income 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.
C. 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, 2015, 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, 2015, the Fund paid no 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, 2015, the Fund had $113,048 in
reserve related to capital gains.
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
36 Pioneer Global Equity Fund | Annual Report | 8/31/15
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, 2015, the Fund reclassified $642,336 to increase undistributed
net investment income and $642,336 to decrease accumulated net realized loss
on investments, futures contracts, swap contracts and foreign currency
transactions to reflect permanent book/tax differences. These adjustments
have no impact on net assets or the results of operations.
At August 31, 2015, the Fund had a net capital loss carryforward of
$16,155,081, which will expire in 2016 if not utilized.
During the year ended August 31, 2015, a capital loss carryforward of
$9,989,169 was utilized to offset net realized gains by the Fund.
The tax character of distributions during the years ended August 31, 2015
and August 31, 2014 were as follows:
----------------------------------------------------------------------------
2015 2014
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $4,690,934 $2,714,882
----------------------------------------------------------------------------
Total $4,690,934 $2,714,882
============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2015:
----------------------------------------------------------------------------
2015
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,034,603
Capital loss carryforward (16,155,081)
Net unrealized appreciation 3,369,985
----------------------------------------------------------------------------
Total $(11,750,493)
============================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales.
D. 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 $19,487 in underwriting commissions on the sale of Class A shares
during the year ended August 31, 2015.
Pioneer Global Equity Fund | Annual Report | 8/31/15 37
E. 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.
F. 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).
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, Class C and Class R shares of the Fund,
respectively (see Note 4). Class K and 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, Class K, Class R and Class
Y shares can reflect different transfer agent and distribution expense
rates.
38 Pioneer Global Equity Fund | Annual Report | 8/31/15
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. 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. 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,
2015 was $(939,606). There were no outstanding futures contracts open at
August 31, 2015.
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
Pioneer Global Equity Fund | Annual Report | 8/31/15 39
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 year ended
August 31, 2015 was $(4,521). There were no written options outstanding at
August 31, 2015.
Transactions in written options for the year ended August 31, 2015 are
summarized as follows:
----------------------------------------------------------------------------
Number of Premium
Contracts Paid
----------------------------------------------------------------------------
Options open at beginning of period -- $ --
Options opened (327) (138,765)
Options exercised 129 55,134
Options closed 66 23,562
Options expired 132 60,069
----------------------------------------------------------------------------
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.
The average value of swap contracts open during the year ended August 31,
2015 was $101,227. There are no outstanding total return swap contracts at
August 31, 2015.
40 Pioneer Global Equity Fund | Annual Report | 8/31/15
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, 2015,
the effective management fee (excluding waivers and/or assumption of expenses)
was equivalent to 0.75% of the Fund's average daily net assets.
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%, 0.80%, 1.55% and
0.80% of the average daily net assets attributable to Class A, Class C, Class K,
Class R and Class Y shares, respectively. Fees waived and expenses reimbursed
during the year ended August 31, 2015 are reflected on the Statement of
Operations. These expense limitations are in effect through January 1, 2017.
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
$47,183 in management fees, administrative costs and certain other
reimbursements payable to PIM at August 31, 2015.
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, 2015, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 83,999
Class B 1,148
Class C 13,700
Class R 215
Class Y 17,360
--------------------------------------------------------------------------------
Total: $116,422
================================================================================
Pioneer Global Equity Fund | Annual Report | 8/31/15 41
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $30,199 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at August 31, 2015.
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 C and Class R
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. Pursuant to the plan, the
Fund further pays PFD 0.50% of the average daily net assets attributable to
Class R shares held by such plans. Included in "Due to affiliates" reflected on
the Statement of Assets and Liabilities is $4,483 in distribution fees payable
to PFD at August 31, 2015.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Fund a
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares held by such plans.
In addition, redemptions of each class of shares (except Class R or 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 R or Class Y shares. Proceeds from the
CDSCs are paid to PFD. For the year ended August 31, 2015, CDSCs in the amount
of $689 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, 2015, the Fund's expenses were
not reduced under such arrangements.
42 Pioneer Global Equity Fund | Annual Report | 8/31/15
6. Forward Foreign Currency Contracts
At August 31, 2015, 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, 2015 was $(266,983).
There were no outstanding forward foreign currency contracts at August 31, 2015.
7. Additional Disclosures about Derivative Instruments and Hedging Activities
The effect of derivative instruments on the Statement of Operations for the year
ended August 31, 2015 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
Currency Contracts forward foreign currency contracts
and other assets and liabilities
denominated in foreign currencies $ 40,615
Forward Foreign Change in unrealized appreciation
Currency Contracts (depreciation) on forward foreign
currency contracts and other
assets and liabilities denominated
in foreign currencies $ (47,706)
Total Return Swap Net realized gain (loss) on total
return swap $1,303,407
Total Return Swap Change in unrealized appreciation
(depreciation) on total return swap $ (78,710)
Futures Contracts Net realized gain (loss) on
futures contracts $ (717,347)
Futures Contracts Change in net unrealized
appreciation (depreciation) on
futures contracts $ 147,350
Written Options Net realized gain (loss) on
written options $ 61,281
8. 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 Fund were converted to Class A shares.
Pioneer Global Equity Fund | Annual Report | 8/31/15 43
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, 2015,
and the related statement of operations for year then ended and the statements
of changes in net assets and the financial highlights for each of the two years
in the period then ended. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits. The financial highlights for the years ended August 31, 2013,
2012, and 2011 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 audits 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 audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, 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, 2015, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global Equity Fund as of August 31, 2015, the results of its operations
for the year then ended, and the changes in its net assets and the financial
highlights for each of the two years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
October 28, 2015
44 Pioneer Global Equity Fund | Annual Report | 8/31/15
Additional Information (unaudited)
PIM, the Fund's investment adviser, is currently an indirect, wholly-owned
subsidiary of UniCredit. On April 23, 2015, UniCredit announced that it signed a
preliminary and exclusive agreement with Banco Santander and affiliates of
Warburg Pincus and General Atlantic (the "Private Equity Firms") with respect to
Pioneer Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as described in the UniCredit announcement, will entail the
establishment of a holding company, with the name Pioneer Investments, to be
owned by UniCredit (50%) and the Private Equity Firms (50% between them). The
holding company will control Pioneer's U.S. operations, including the Adviser.
The holding company also will own 66.7% of Pioneer's and SAM's combined
operations outside the U.S., while Banco Santander will own directly the
remaining 33.3% stake. The completion of the Transaction is subject to the
signing of a definitive agreement, as well as certain regulatory and corporate
approvals, and other conditions.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's investment advisory agreement with the Adviser to terminate. In
connection with the Transaction, the Fund's Board of Trustees will be asked to
approve a new investment advisory agreement for the Fund. If approved by the
Board, the Fund's new investment advisory agreement will be submitted to the
shareholders of the Fund for their approval.
For the year ended August 31, 2015, 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 2015 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 58.76%.
Pioneer Global Equity Fund | Annual Report | 8/31/15 45
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
Morgan, Lewis & Bockius 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 51 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.
46 Pioneer Global Equity Fund | Annual Report | 8/31/15
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 (64) Trustee since 2006. Private investor (2004-2008 and Director, Broadridge
Chairman of the Board Serves until a successor 2013-present); Chairman (2008-2013) and Financial Solutions, Inc.
and Trustee trustee is elected or earlier Chief Executive Officer (2008-2012), (investor communications
retirement or removal. Quadriserv, Inc. (technology products for and securities processing
securities lending industry); and Senior provider for financial
Executive Vice President, The Bank of New services industry) (2009-
York (financial and securities services) present); Director,
(1986-2004) Quadriserv, Inc.
(2005-2013); and
Commissioner, New Jersey
State Civil Service
Commission (2011-present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Trustee since 2005. Managing Partner, Federal City Capital Director of New York
Trustee Serves until a successor Advisors (corporate advisory services Mortgage Trust
trustee is elected or earlier company) (1997-2004 and 2008-present); (publicly-traded mortgage
retirement or removal. Interim Chief Executive Officer, Oxford REIT) (2004-2009,
Analytica, Inc. (privately-held research 2012-present); Director
and consulting company) (2010); Executive of The Swiss Helvetia
Vice President and Chief Financial Fund, Inc. (closed-end
Officer, I-trax, Inc. (publicly traded fund) (2010-present);
health care services company) Director of Oxford
(2004-2007); and Executive Vice President Analytica, Inc.
and Chief Financial Officer, Pedestal (2008-present); and
Inc. (internet-based mortgage trading Director of Enterprise
company) (2000-2002); Private consultant Community Investment,
(1995-1997), Managing Director, Lehman Inc. (privately-held
Brothers (investment banking firm) affordable housing
(1992-1995); and Executive, The World finance company)
Bank (1979-1992) (1985-2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (71) Trustee since 2008. William Joseph Maier Professor of Trustee, Mellon
Trustee Serves until a successor Political Economy, Harvard University Institutional Funds
trustee is elected or earlier (1972-present) Investment Trust and
retirement or removal. Mellon Institutional
Funds Master Portfolio
(oversaw 17 portfolios in
fund complex) (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Equity Fund | Annual Report | 8/31/15 47
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 (68) Trustee since 2005. Founding Director, Vice President and None
Trustee Serves until a successor Corporate Secretary, The Winthrop Group,
trustee is elected or earlier Inc. (consulting firm) (1982-present);
retirement or removal. Desautels Faculty of Management, McGill
University (1999-present); and Manager of
Research Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (67) Trustee since 2005. President and Chief Executive Officer, Director of New America
Trustee Serves until a successor Newbury, Piret & Company, Inc. High Income Fund, Inc.
trustee is elected or earlier (investment banking firm) (1981-present) (closed-end investment
retirement or removal. company) (2004-present);
and Member, Board of
Governors, Investment
Company Institute
(2000-2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (68) Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a successor (2012-present); Executive Vice President,
trustee is elected or earlier BNY Mellon (financial and investment
retirement or removal. company services) (1969-2012); Director,
BNY International Financing Corp.
(financial services) (2002-2012); and
Director, Mellon Overseas Investment
Corp. (financial services) (2009-2012)
------------------------------------------------------------------------------------------------------------------------------------
48 Pioneer Global Equity Fund | Annual Report | 8/31/15
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
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 (57)* Trustee since 2014. Director and Executive Vice President None
Trustee Serves until a successor (since 2008) and Chief Investment
trustee is elected or earlier Officer, U.S. (since 2010) of PIM-USA;
retirement or removal. Executive Vice President of Pioneer
(since 2008); Executive Vice President of
Pioneer Institutional Asset Management,
Inc. (since 2009); and 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 Global Equity Fund | Annual Report | 8/31/15 49
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine Monchak (59)** Advisory Trustee since 2014. Chief Investment Officer, 1199 SEIU Funds None
Advisory Trustee (healthcare workers union pension funds)
(2001-present); Vice
President-International Investments
Group, American International Group, Inc.
(insurance company) (1993-2001); Vice
President Corporate Finance and Treasury
Group, Citibank, N.A.(1980-1986 and 1990-
1993); Vice President-Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer
of debt securities) (1988-1990); Mortgage
Strategies Group, Shearson Lehman Hutton,
Inc. (investment bank) (1987-1988); and
Mortgage Strategies Group, Drexel Burnham
Lambert, Ltd. (investment bank)
(1986-1987)
------------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak is a non-voting advisory trustee.
50 Pioneer Global Equity Fund | Annual Report | 8/31/15
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (53) Since 2014. Serves at the Chair, Director, CEO and President of None
President and discretion of the Board. Pioneer Investment Management-USA (since
Chief Executive Officer September 2014); 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); and
Director of Institutional Business, CEO
of International, Eaton Vance Management
(2005-2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (50) Since 2005. Serves at the Vice President and Associate General None
Secretary and Chief discretion of the Board. Counsel of Pioneer since January 2008;
Legal Officer Secretary and Chief Legal Officer of all
of the Pioneer Funds since June 2010;
Assistant Secretary of all of the Pioneer
Funds from September 2003 to May 2010;
and Vice President and Senior Counsel of
Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (54) Since 2010. Serves at the Fund Governance Director of Pioneer since None
Assistant Secretary discretion of the Board. December 2006 and Assistant Secretary of
all the Pioneer 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 (52) Since 2010. Serves at the Senior Counsel of Pioneer since May 2013 None
Assistant Secretary discretion of the Board. and Assistant Secretary of all the
Pioneer Funds since June 2010; and
Counsel of Pioneer from June 2007 to May
2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2008. Serves at the Vice President-Fund Treasury of Pioneer; None
Treasurer and Chief discretion of the Board. Treasurer of all of the Pioneer Funds
Financial since March 2008; Deputy Treasurer of
and Accounting Officer Pioneer from March 2004 to February 2008;
and Assistant Treasurer of all of the
Pioneer Funds from March 2004 to February
2008
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Equity Fund | Annual Report | 8/31/15 51
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 2005. Serves at the Director-Fund Treasury of Pioneer; and None
Assistant Treasurer discretion of the Board. Assistant Treasurer of all of the Pioneer
Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (57) Since 2005. Serves at the Fund Accounting Manager-Fund Treasury of None
Assistant Treasurer discretion of the Board. Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2009. Serves at the Fund Administration Manager-Fund Treasury None
Assistant Treasurer discretion of the Board. of Pioneer since November 2008; Assistant
Treasurer of 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 (62) Since 2010. Serves at the Chief Compliance Officer of Pioneer and None
Chief Compliance Officer discretion of the Board. of all the Pioneer Funds since March
2010; Chief Compliance Officer of Pioneer
Institutional Asset Management, Inc.
since January 2012; Chief Compliance
Officer of Vanderbilt Capital Advisors,
LLC since July 2012: Director of Adviser
and Portfolio Compliance at Pioneer since
October 2005; and Senior Compliance
Officer for Columbia Management Advisers,
Inc. from October 2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (44) Since 2006. Serves at the Director-Transfer Agency Compliance of None
Anti-Money Laundering discretion of the Board. Pioneer and Anti-Money Laundering Officer
Officer of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer Global Equity Fund | Annual Report | 8/31/15
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) 2015 Pioneer Investments 19431-09-1015
Pioneer High Income
Municipal Fund
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Annual Report | August 31, 2015
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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
President's Letter 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 25
Notes to Financial Statements 32
Report of Independent Registered Public Accounting Firm 39
Trustees, Officers and Service Providers 41
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 1
President's Letter
Dear Shareholder,
In the second half of 2015, two main issues have been dominating the attention
of global investors and policymakers alike, and shaping the current investment
environment: The Federal Reserve System's (the Fed's) deliberations over when to
begin normalizing interest rates in the U.S., and the increasing divergence in
economic activity around the globe. As 2015 began, market expectations were that
the Fed would likely begin raising interest rates by the middle of the year, but
a sluggish gross domestic product report in the first calendar quarter as well
as relatively benign inflation and wage growth contributed to the Fed's taking a
more cautionary approach and delaying the start of its rate-hike cycle. At the
same time, however, the U.S. labor market has continued its robust improvement,
moving the Fed closer to declaring victory on one of its main monetary policy
objectives -- full employment.
Meanwhile, global economic activity has continued to diverge, with developed
economies experiencing above-trend growth and most emerging markets economies
lagging the rest of the world. The slower pace of economic activity in the
emerging markets has been most evident in China, as the country's economy
continues to undergo a long, potentially painful adjustment from investment-led
growth to consumption-oriented growth. This divergence in global economic cycles
is likely to continue for some time, and we would expect an increased level of
volatility as global capital markets and policymakers adjust.
Pioneer Investments believes that investors in today's environment can
potentially benefit from the consistent and disciplined investment approach we
have used since our founding in 1928. We focus on identifying value across
global markets using proprietary research, careful risk management, and a
long-term perspective. Our ongoing goal is to produce compelling returns
consistent with the stated objectives of our investment products, and with our
shareowners' expectations. We believe our shareowners can benefit from the
experience and tenure of our investment teams as well as the insights generated
from our extensive research process.
2 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
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 | 8/31/15 3
Portfolio Management Discussion | 8/31/15
High-yield municipal bonds outperformed most other domestic fixed-income asset
classes during the 12-month period ended August 31, 2015. In the following
interview, Jonathan Chirunga and David Eurkus discuss the factors that
influenced the performance of Pioneer High Income Municipal Fund during the
12-month period. Mr. Chirunga, a vice president and a portfolio manager at
Pioneer, manages the Fund along with Mr. Eurkus, Director of Municipals, a
senior vice president and a portfolio manager at Pioneer.
Q How did the Fund perform during the 12-month period ended August 31, 2015?
A Pioneer High Income Municipal Fund's Class A shares returned 4.88% during
the 12- month period ended August 31, 2015, while the Fund's benchmark, the
Barclays High Yield Municipal Bond Index (the Barclays Index), returned
-0.07%. During the same period, the average return of the 145 mutual funds
in Lipper's High-Yield Municipal Debt Funds category was 3.88%, and the
average return of the 194 mutual funds in Morningstar's High-Yield
Municipal Funds category was 3.59%.
Q How did you position the Fund's portfolio during the 12-month period ended
August 31, 2015?
A Throughout the 12 months, we continued the portfolio-restructuring program
we began when the current management team took responsibility for the Fund
in 2013, increasing the diversification* of the portfolio's investments,
both by sector as well as by geographical region. As we did this, we
further reduced the Fund's exposure to bonds backed by continuing care
retirement securities, which had represented a major share of the Fund's
invested assets back in 2013. During the period, we continued to emphasize
owning project revenue bonds in the Fund's portfolio, while keeping a much
lower exposure to general obligation bonds (G.O. bonds). At the end of the
period, G.O. bonds represented slightly more than 3% of the Fund's total
investment portfolio. The Fund's largest exposures by sector as of period
end were to health care bonds (30% of the Fund's total investment
portfolio), followed by special revenue bonds (nearly 26%), which include
securities backed by revenues from tobacco lawsuit settlements, and then
education bonds, which represented slightly less than 21% of the Fund's
total investment portfolio.
* Diversification does not assure a profit nor protect against loss.
4 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
Q What types of investments or asset allocation decisions had the greatest
effects on the Fund's benchmark-relative performance during the 12-month
period ended August 31, 2015?
A Strong credit research and security selection, the portfolio's overall
diversification, and our emphasis on holding securities backed by project-
specific revenue sources all factored into the Fund's good
benchmark-relative performance during the period.
Tobacco-revenue bonds, which are backed by proceeds from settlements of
liability lawsuits against tobacco companies, performed very well during
the 12-month period, and the Fund's significant exposure to such bonds
provided strong support to benchmark-relative results.
With regard to individual securities, the portfolio's holdings of bonds
backed by revenues to correctional facilities in Otero County, New Mexico
and Tensas Parish, Louisiana, also performed well and aided the Fund's
benchmark-relative returns. In addition, the Fund's relative performance
benefited from exposure to securities issued by the Esperanza Academy, a
charter school in Pennsylvania, and debt backed by revenues to the Linden
Ponds continuing care retirement community in Massachusetts.
On the negative side, the most significant detractor from the Fund's
benchmark-relative performance during the 12-month period was a large
portfolio position in a security issued by the Philippi Municipal Building
Commission for a small private university in West Virginia.
It should be noted that although high-yield municipal bonds performed well
over the full 12-month period, the asset class, and the Fund's performance,
slumped into negative territory in the second calendar quarter of 2015 due
to rising market interest rates. In addition, high-yield municipals
struggled at times during the period because of the underperformance of
debt securities issued by municipalities and institutions in the
Commonwealth of Puerto Rico, which make up about 26% of the value of the
securities in the Fund's Barclays Index benchmark. However, the portfolio's
significant underweight to Puerto Rican bonds limited the damage to the
Fund's performance and contributed positively to benchmark-relative results
over the full 12-month period. Puerto Rican bonds represented just 2.6% of
the Fund's total investment portfolio as of period end.
The high-yield municipal market, including Puerto Rican bonds, did recover
somewhat in August 2015, the final month of the period.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 5
Q Did you invest the Fund's portfolio in any derivative securities during the
12-month period ended August 31, 2015?
A No, the Fund did not have any exposure to derivatives during the period.
Q What factors affected the Fund's yield during the 12-month period ended
August 31, 2015?
A Although market interest rates were volatile during the period, especially
in the second quarter of 2015 (April through June), the Fund's dividend
remained relatively stable. The limited supply of new high-yield municipal
bonds during the period helped the performance of the high-yield market and
supported the current income levels the Fund received from its investments,
which remained fairly consistent over the full 12 months.
Q What is your investment outlook for the high-yield municipal market?
A We believe high-yield municipal bonds should remain attractive and that
they offer a good investment opportunity for appropriate investors. We
believe the domestic economy should continue to grow modestly, outpacing
weaker growth in most foreign markets. At the same time, we believe
inflation is likely to remain muted and that interest rates should remain
relatively stable, while the new-issue supply in the high-yield municipal
market is likely to continue to fall short of investment demand. Such
conditions would create an investment environment that should favor
credit-sensitive debt securities, including high-yield municipal bonds.
6 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
Please refer to the Schedule of Investments on pages 15-24 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
financial 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. Past performance is not a
guarantee of future results.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 7
Portfolio Summary | 8/31/15
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Sector Distribution
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(As a percentage of total investment portfolio)
Health 30.0%
Special Revenues 25.9%
Education 20.9%
Pollution Control Revenue 8.3%
Various Revenues 8.0%
General Obligation 3.4%
Transportation 2.4%
Housing 0.7%
Insured 0.2%
Escrowed 0.2%
10 Largest Holdings
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(As a percentage of total investment portfolio)*
1. City of Philippi West Virginia, Alderson-Broaddus College, 7.75%, 10/1/44 3.66%
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2. Sanger Industrial Development Corp., Texas Pellets, Inc., 8.0%, 7/1/38 3.12
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3. Commonwealth of Puerto Rico, 8.0%, 7/1/35 2.55
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4. Golden State Tobacco Securitization Corp., 5.75%, 6/1/47 2.09
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5. Washington State Housing Finance Commission, Skyline at First Hill
Project, 5.625%, 1/1/38 2.03
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6. Pennsylvania Economic Development Financing Authority, US Airways Group
Series B, 8.0%, 5/1/29 1.95
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7. Tobacco Settlement Financing Corp., New Jersey, 5.0%, 6/1/41 1.92
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8. Tobacco Settlement Financing Corp., Virginia, 5.0%, 6/1/47 1.90
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9. TSASC, Inc., New York, Series 1, 5.125%, 6/1/42 1.53
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10. Michigan Strategic Fund, CFP Michigan II LLC, Floating Rate Note, 3/1/40 1.51
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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 | 8/31/15
Prices and Distributions | 8/31/15
Net Asset Value per Share
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Class 8/31/15 8/31/14
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A $7.22 $7.27
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C $7.22 $7.28
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Y $7.12 $7.18
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Distributions per Share: 9/1/14-8/31/15
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Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
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A $0.4010 $ -- $ --
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C $0.3456 $ -- $ --
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Y $0.4091 $ -- $ --
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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 | 8/31/15 9
Performance Update | 8/31/15 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, 2015)
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Barclays
Net Public High Yield
Asset Offering Municipal
Value Price Bond
Period (NAV) (POP) Index
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Life-of-Class
(10/17/06) 2.67% 2.14% 3.92%
5 Years 4.11 3.14 5.63
1 Year 4.88 0.19 -0.07
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Expense Ratio
(Per prospectus dated December 31, 2014)
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Gross
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0.90%
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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
10/06 $ 9,550 $10,000
8/07 $ 9,662 $10,076
8/08 $ 9,184 $ 9,635
8/09 $ 7,861 $ 8,750
8/10 $ 9,838 $10,682
8/11 $10,018 $11,051
8/12 $11,144 $12,752
8/13 $10,669 $12,253
8/14 $11,470 $14,060
8/15 $12,030 $14,050
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 | 8/31/15
Performance Update | 8/31/15 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, 2015)
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Barclays
High Yield
Municipal
If If Bond
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) 1.83% 1.83% 3.92%
5 Years 3.35 3.35 5.63
1 Year 3.95 3.95 -0.07
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Expense Ratio
(Per prospectus dated December 31, 2014)
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Gross
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1.66%
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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
10/06 $10,000 $10,000
8/07 $10,026 $10,076
8/08 $ 9,430 $ 9,635
8/09 $ 7,999 $ 8,750
8/10 $ 9,928 $10,682
8/11 $10,046 $11,051
8/12 $11,094 $12,752
8/13 $10,541 $12,253
8/14 $11,263 $14,060
8/15 $11,708 $14,050
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 | 8/31/15 11
Performance Update | 8/31/15 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, 2015)
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Barclays
Net High Yield
Asset Municipal
Value Bond
Period (NAV) Index
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Life-of-Class
(10/17/06) 2.63% 3.92%
5 Years 4.27 5.63
1 Year 4.92 -0.07
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Expense Ratio
(Per prospectus dated December 31, 2014)
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Gross
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0.71%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer High Income Barclays High Yield
Municipal Fund Municipal Bond Index
10/06 $5,000,000 $5,000,000
8/07 $5,040,643 $5,037,963
8/08 $4,765,972 $4,817,672
8/09 $4,084,381 $4,374,981
8/10 $5,094,276 $5,340,982
8/11 $5,197,079 $5,525,277
8/12 $5,790,897 $6,376,035
8/13 $5,556,051 $6,126,737
8/14 $5,983,213 $7,029,878
8/15 $6,277,406 $7,024,878
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 | 8/31/15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on actual returns from March 1, 2015, through August 31, 2015.
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Share Class A C Y
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Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/15
--------------------------------------------------------------------------------
Ending Account Value $ 998.95 $ 993.88 $ 998.19
(after expenses) on 8/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 4.48 $ 8.29 $ 3.58
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.89%, 1.65%
and 0.71% for Class A, Class C and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 184/365 (to
reflect the one-half year period).
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 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, 2015, through August 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/15
--------------------------------------------------------------------------------
Ending Account Value $1,020.72 $1,016.89 $1,021.63
(after expenses) on 8/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 4.53 $ 8.39 $ 3.62
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.89%, 1.65%
and 0.71% for Class A, Class C and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 184/365 (to
reflect the one-half year period).
14 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
Schedule of Investments | 8/31/15
-------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.4% (f)
Alaska -- 0.2%
1,250,000 Northern Tobacco Securitization Corp., 5.0%, 6/1/46 $ 960,012
-------------------------------------------------------------------------------------------------------
Arizona -- 1.0%
1,000,000 The Industrial Development Authority of the County of
Pima, Desert Heights Charter School, 7.0%, 5/1/34 $ 1,034,620
3,000,000 The Industrial Development Authority of the County of
Pima, Desert Heights Charter School, 7.25%, 5/1/44 3,110,760
725,000 The Industrial Development Authority of the County of
Pima, Legacy Transition Charter School, 8.5%, 7/1/39 895,194
-------------
$ 5,040,574
-------------------------------------------------------------------------------------------------------
California -- 13.6%
2,715,000 California County Tobacco Securitization Agency,
Los Angeles County Securitization Corp., 5.6%, 6/1/36 $ 2,494,270
3,800,000 California County Tobacco Securitization Agency,
Los Angeles County Securitization Corp., 5.7%, 6/1/46 3,415,326
6,755,000 California County Tobacco Securitization Agency, Merced
County Tobacco Funding Corp., 5.25%, 6/1/45 5,457,770
5,040,000 California County Tobacco Securitization Agency,
Sonoma County Securitization Corp., 5.125%, 6/1/38 4,237,884
1,880,000 California County Tobacco Securitization Agency,
Sonoma County Securitization Corp., 5.25%, 6/1/45 1,534,118
1,300,000 California Municipal Finance Authority, John Adams
Academics Project Series A, 5.25%, 10/1/45 1,302,730
6,300,000 California Municipal Finance Authority, Santa Rosa
Academy, 6.0%, 7/1/42 6,575,184
3,000,000 California School Finance Authority, Classical Academies
Project Series A, 7.375%, 10/1/43 3,491,340
830,000 California School Finance Authority, View Park Elementary
School, 5.625%, 10/1/34 843,820
1,475,000 California School Finance Authority, View Park Elementary
School, 5.875%, 10/1/44 1,508,232
1,000,000 California School Finance Authority, View Park Elementary
School, 6.0%, 10/1/49 1,027,630
3,230,000 California School Finance Authority, View Park High School
Series A, 7.125%, 10/1/48 3,575,416
1,560,000 California Statewide Communities Development Authority,
California Baptist University, 6.125%, 11/1/33 1,685,050
4,030,000 California Statewide Communities Development Authority,
California Baptist University, 6.375%, 11/1/43 4,393,224
2,000,000 California Statewide Communities Development Authority,
Lancer Educational Housing, 7.5%, 6/1/42 2,198,200
315,559 California Statewide Communities Development Authority,
Micrology Holdings Project, 9.0%, 12/1/38 (c) 3
12,500,000 Golden State Tobacco Securitization Corp.,
5.75%, 6/1/47 10,672,375
5,130,000 Golden State Tobacco Securitization Corp., 6/1/37 4,206,908
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 15
Schedule of Investments | 8/31/15 (continued)
-------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
California -- (continued)
2,500,000 Pittsburg Unified School District, 9/1/41 (e) $ 707,475
1,925,000 Pittsburg Unified School District, 9/1/42 (e) 518,961
3,500,000 River Islands Public Financing Authority, 5.5%, 9/1/45 3,602,830
6,000,000 Tobacco Securitization Authority of Southern
California, San Diego County Securitization Corp.,
5.0%, 6/1/37 5,166,360
2,800,000 Tobacco Securitization Authority of Southern
California, San Diego County Securitization Corp.,
5.125%, 6/1/46 2,331,700
-------------
$ 70,946,806
-------------------------------------------------------------------------------------------------------
Colorado -- 3.7%
2,860,000 Castle Oaks Metropolitan District No 3, 6.25%,
12/1/44 (g) $ 2,825,594
1,000,000 Colorado Educational & Cultural Facilities
Authority, Charter School University,
5.0%, 12/15/45 980,050
2,000,000 Colorado Educational & Cultural Facilities
Authority, Rocky Mountain Classical Charter School,
8.0%, 9/1/43 2,114,680
5,000,000 Colorado Educational & Cultural Facilities Authority,
Rocky Mountain Classical Charter School,
8.125%, 9/1/48 5,308,750
8,000,000 Kremmling Memorial Hospital District,
7.125%, 12/1/45 6,581,120
1,500,000 Promenade Castle Rock Metropolitan District No 1
Series A, 5.75%, 12/1/39 (g) 1,470,075
-------------
$ 19,280,269
-------------------------------------------------------------------------------------------------------
Connecticut -- 0.5%
2,640,000 Town of Hamden Connecticut, Whitney Center
Project Series A, 7.75%, 1/1/43 $ 2,751,434
-------------------------------------------------------------------------------------------------------
District of Columbia -- 0.9%
735,000 District of Columbia Tobacco Settlement Financing
Corp., 6.75%, 5/15/40 $ 734,926
4,000,000 District of Columbia, Provident Group Howard
Properties LLC, 5.0%, 10/1/45 3,785,880
-------------
$ 4,520,806
-------------------------------------------------------------------------------------------------------
Florida -- 2.9%
5,000,000 Alachua County Health Facilities Authority, Terraces
Bonita Springs Project Series A, 8.125%, 11/15/46 $ 5,859,950
5,000,000 Capital Trust Agency, Inc., Million Air One LLC,
7.75%, 1/1/41 4,746,350
1,820,000 County of Liberty Florida, Twin Oaks Project
8.25%, 7/1/28 272,090
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
-------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Florida -- (continued)
1,000,000 Florida Development Finance Corp., Tuscan Isle
Obligated Group, 7.0%, 6/1/35 $ 1,026,120
3,000,000 Florida Development Finance Corp., Tuscan Isle
Obligated Group, 7.0%, 6/1/45 3,050,370
-------------
$ 14,954,880
-------------------------------------------------------------------------------------------------------
Hawaii -- 0.2%
1,000,000 State of Hawaii Department of Budget & Finance,
Craigside Project Series A, 9.0%, 11/15/44 $ 1,252,790
-------------------------------------------------------------------------------------------------------
Illinois -- 3.9%
526,959 Illinois Finance Authority, Clare Oaks Project
Series C2, 11/15/52 (e) $ 144,208
526,959 Illinois Finance Authority, Clare Oaks Project
Series C3 11/15/52 (e) 90,626
2,634,795 Illinois Finance Authority, Clare Oaks Project
Series C1, 11/15/52 (e) 90,795
485,000 Illinois Finance Authority, Clare Oaks Project
Series A3, 7.0%, 11/15/17 485,141
1,250,000 Illinois Finance Authority, Norwegian American
Hospital, Inc., 7.625%, 9/15/28 1,382,725
4,845,000 Illinois Finance Authority, Norwegian American
Hospital, Inc., 7.75%, 9/15/38 5,551,837
4,213,653 4.00 Illinois Finance Authority, Clare Oaks Project Series E,
Floating Rate Note, 11/15/52 (Step) 2,693,704
2,520,000 Southwestern Illinois Development Authority, Village
of Sauget, 5.625%, 11/1/26 2,318,602
485,000 Southwestern Illinois Development Authority, St Claire
County Comprehensive Behavioral Health Center,
6.2%, 6/1/17 494,622
7,020,000 Southwestern Illinois Development Authority, St Claire
County Comprehensive Behavioral Health Center,
6.625%, 6/1/37 7,132,320
-------------
$ 20,384,580
-------------------------------------------------------------------------------------------------------
Indiana -- 2.9%
1,750,000 City of Carmel Indiana, Barrington Carmel Project
Series A, 7.0%, 11/15/32 $ 1,934,905
2,000,000 City of Carmel Indiana, Barrington Carmel Project
Series A, 7.125%, 11/15/42 2,218,320
2,000,000 City of Carmel Indiana, Barrington Carmel Project
Series A, 7.125%, 11/15/47 2,213,780
3,500,000 City of Crown Point Indiana, Wittenberg Lutheran
Project Series A, 8.0%, 11/15/39 3,932,915
4,000,000 Vigo County Hospital Authority, Union Hospital, Inc.,
8.0%, 9/1/41 4,780,080
-------------
$ 15,080,000
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 17
Schedule of Investments | 8/31/15 (continued)
-------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Iowa -- 1.0%
105,000 Iowa Tobacco Settlement Authority, 5.5%, 6/1/42 $ 91,933
1,000,000 Iowa Tobacco Settlement Authority, 5.6%, 6/1/34 944,490
4,580,000 Iowa Tobacco Settlement Authority, 5.625%, 6/1/46 4,060,216
-------------
$ 5,096,639
-------------------------------------------------------------------------------------------------------
Louisiana -- 0.7%
5,800,000 Tensas Parish Law Enforcement District, 8.5%,
10/1/26 (c) $ 3,481,276
-------------------------------------------------------------------------------------------------------
Maryland -- 0.2%
1,000,000 Maryland Health & Higher Educational Facilities
Authority, City Neighbors Project Series A,
6.75%, 7/1/44 $ 1,080,900
-------------------------------------------------------------------------------------------------------
Massachusetts -- 2.1%
1,116,746 Massachusetts Development Finance Agency,
Linden Ponds Series A, 11/15/56 (e) $ 6,555
4,003,354 Massachusetts Development Finance Agency,
Linden Ponds Facility, 5.5%, 11/15/46 3,409,737
1,235,770 Massachusetts Development Finance Agency,
Linden Ponds Series A, 6.25%, 11/15/26 1,203,640
3,340,294 Massachusetts Development Finance Agency,
Linden Ponds Series A, 6.25%, 11/15/39 3,187,910
2,000,000 Massachusetts Development Finance Agency,
Advent Care Project Series A, 6.75%, 10/15/37 2,068,880
860,000 Massachusetts Development Finance Agency,
Advent Care Project Series A, 7.625%, 10/15/37 958,169
3,500,000 Massachusetts Health & Educational Facilities
Authority, Quincy Medical Center, 6.5%, 1/15/38 (c) 8,575
-------------
$ 10,843,466
-------------------------------------------------------------------------------------------------------
Michigan -- 6.5%
1,250,000 Flint Hospital Building Authority, Hurley Medical
Center, 5.25%, 7/1/39 $ 1,221,825
1,250,000 Flint Hospital Building Authority, Hurley Medical
Center, 7.375%, 7/1/35 1,414,875
5,485,000 Flint International Academy, 5.75%, 10/1/37 5,522,079
225,000 Michigan Public Educational Facilities Authority,
Dr Joseph F Pollack Academic Center of Excellence,
7.25%, 4/1/20 238,694
2,020,000 Michigan Public Educational Facilities Authority,
Dr Joseph F Pollack Academic Center of Excellence,
8.0%, 4/1/40 2,148,937
4,410,000 Michigan Public Educational Facilities Authority,
Dadid Ellis Academy West, 5.875%, 6/1/37 4,411,720
4,000,000 6.62 Michigan Strategic Fund, CFP Taylor Governmental
Center LLC, Floating Rate Note, 11/1/41 4,274,560
7,135,000 6.75 Michigan Strategic Fund, CFP Michigan II LLC,
Floating Rate Note, 3/1/40 7,705,301
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
-------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Michigan -- (continued)
750,000 Michigan Tobacco Settlement Finance Authority,
6.0%, 6/1/34 $ 653,430
6,290,000 Michigan Tobacco Settlement Finance Authority,
6.0%, 6/1/48 5,242,526
1,250,000 Michigan Tobacco Settlement Finance Authority,
6.875%, 6/1/42 1,218,662
-------------
$ 34,052,609
-------------------------------------------------------------------------------------------------------
Minnesota -- 0.8%
2,000,000 Bloomington Port Authority, Radison Blu MOA LLC,
9.0%, 12/1/35 $ 2,293,980
1,500,000 City of Brooklyn Park Minnesota, Prarie Seeds
Academy, 9.25%, 3/1/39 (Pre Refunded) 1,718,820
-------------
$ 4,012,800
-------------------------------------------------------------------------------------------------------
Missouri -- 1.7%
5,740,000 Community Memorial Hospital District,
6.68%, 12/1/34 $ 5,957,776
2,500,000 Kirkwood Industrial Development Authority, Aberdeen
Heights Series A, 8.25%, 5/15/45 2,828,375
-------------
$ 8,786,151
-------------------------------------------------------------------------------------------------------
New Jersey -- 5.1%
6,000,000 New Jersey Economic Development Authority,
Gloucester Marine Project, 6.625%, 1/1/37 $ 6,030,180
4,500,000 New Jersey Health Care Facilities Financing Authority,
St Peters University Hospital, 6.25%, 7/1/35 4,837,680
7,580,000 Tobacco Settlement Financing Corp. New Jersey,
4.75%, 6/1/34 5,682,726
13,000,000 Tobacco Settlement Financing Corp. New Jersey,
5.0%, 6/1/41 9,848,280
-------------
$ 26,398,866
-------------------------------------------------------------------------------------------------------
New Mexico -- 1.1%
6,055,000 County of Otero New Mexico, 6.0%, 4/1/28 $ 5,822,185
-------------------------------------------------------------------------------------------------------
New York -- 4.6%
85,000 New York City Industrial Development Agency,
British Airways Plc, 5.25%, 12/1/32 $ 85,255
2,210,000 New York Counties Tobacco Trust IV, 5.0%, 6/1/45 1,883,296
10,000,000 New York Counties Tobacco Trust V, 6/1/38 (e) 2,250,700
2,000,000 Onondaga Civic Development Corp., St Joseph's
Hospital Health Center, 5.0%, 7/1/42 2,060,520
4,500,000 Suffolk Tobacco Asset Securitization Corp., 6/1/44 4,458,285
10,000,000 The Erie County Industrial Development Agency,
Galvstar LLC Project Series A, 9.25%, 10/1/30 (c) 2,548,100
8,000,000 The Erie County Industrial Development Agency,
Galvstar LLC Project Series B, 9.25%, 10/1/30 (c) 2,038,480
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 19
Schedule of Investments | 8/31/15 (continued)
-------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
New York -- (continued)
1,795,000 The Erie County Industrial Development Agency,
Galvstar LLC Project Series C, 9.25%, 10/1/30 (c) $ 457,384
9,040,000 TSASC, Inc. New York, Series 1, 5.125%, 6/1/42 7,833,702
100,000 Westchester Tobacco Asset Securitization New York,
5.125%, 6/1/38 96,351
-------------
$ 23,712,073
-------------------------------------------------------------------------------------------------------
Ohio -- 6.5%
6,000,000 Buckeye Tobacco Settlement Financing Authority,
5.75%, 6/1/34 $ 4,807,860
8,000,000 Buckeye Tobacco Settlement Financing Authority,
5.875%, 6/1/47 6,410,400
8,555,000 Buckeye Tobacco Settlement Financing Authority,
6.0%, 6/1/42 6,972,753
5,010,000 Buckeye Tobacco Settlement Financing Authority,
6.5%, 6/1/47 4,352,538
1,150,000 County of Muskingum Ohio, Genesis Healthcare
System, 5.0%, 2/15/33 1,206,097
5,000,000 County of Muskingum Ohio, Genesis Healthcare
System, 5.0%, 2/15/48 5,177,450
2,900,000 Southeastern Ohio Port Authority, Marietta Aera
Health Care, Inc., 6.0%, 12/1/42 3,118,051
500,000 Southeastern Ohio Port Authority, Memorial Health
Systems, 5.0%, 12/1/43 502,535
1,000,000 Southeastern Ohio Port Authority, Memorial Health
Systems, 5.5%, 12/1/43 1,044,120
-------------
$ 33,591,804
-------------------------------------------------------------------------------------------------------
Pennsylvania -- 9.3%
680,000 Allegheny County Hospital Development Authority,
Ohio Valley General Hospital, 5.125%, 4/1/35 $ 675,730
3,000,000 Pennsylvania Economic Development Financing
Authority, Northwestern Human Services, Inc.,
5.25%, 6/1/28 3,001,590
2,005,000 Pennsylvania Economic Development Financing
Authority, US Airways Group Series A, 7.5%, 5/1/20 2,304,567
8,445,000 Pennsylvania Economic Development Financing
Authority, US Airways Group Series B, 8.0%, 5/1/29 9,979,710
2,200,000 Philadelphia Authority for Industrial Development,
Greater Philadelphia Health, 6.5%, 6/1/45 2,170,080
3,145,000 Philadelphia Authority for Industrial Development,
Greater Philadelphia Health, 6.625%, 6/1/50 3,104,587
2,500,000 Philadelphia Authority for Industrial Development,
Green Woods Charter School, 5.5%, 6/15/32 2,565,225
5,200,000 Philadelphia Authority for Industrial Development,
Green Woods Charter School, 5.75%, 6/15/42 5,352,412
6,000,000 Philadelphia Authority for Industrial Development,
Nueva Esperanza, Inc., 8.2%, 12/1/43 6,616,800
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
-------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Pennsylvania -- (continued)
3,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School, 6.75%,
6/15/43 (144A) $ 3,158,250
1,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School, 6.5%, 6/15/33 (144A) 1,047,490
4,000,000 Philadelphia Hospitals & Higher Education Facilities
Authority, Temple University Health System,
5.625%, 7/1/42 4,190,040
4,000,000 Pottsville Hospital Authority Pennsylvania, Schuylkill
Health System, 6.5%, 7/1/28 4,273,640
-------------
$ 48,440,121
-------------------------------------------------------------------------------------------------------
Puerto Rico -- 2.5%
18,000,000 Commonwealth of Puerto Rico, 8.0%, 7/1/35 (g) $ 13,072,680
-------------------------------------------------------------------------------------------------------
Rhode Island -- 0.1%
2,065,000 Central Falls Detention Facility Corp., 7.25%,
7/15/35 (c) $ 513,008
-------------------------------------------------------------------------------------------------------
Tennessee -- 0.0%+
5,000 Johnson City Health & Educational Facilities Board,
Appalachian Christian, 5.0%, 2/15/43 $ 5,128
-------------------------------------------------------------------------------------------------------
Texas -- 10.3%
14,850,000 Sanger Industrial Development Corp., Texas Pellets,
Inc., 8.0%, 7/1/38 $ 15,950,534
6,350,000 Tarrant County Cultural Education Facilities Finance
Corp., MRC Crestview Project, 8.125%, 11/15/44 7,292,784
5,500,000 Arlington Higher Education Finance Corp., LTTS
Charter School, Inc., 7.125%, 3/1/44 5,817,350
5,000,000 Tarrant County Cultural Education Facilities Finance
Corp., Stayton at Museum Way, 8.25%, 11/15/44 4,982,550
5,000,000 Tarrant County Cultural Education Facilities Finance
Corp., Mirador Project, 8.125%, 11/15/39 4,724,950
2,700,000 City of Celina Texas, 6.25%, 9/1/40 2,607,444
2,250,000 Tarrant County Cultural Education Facilities Finance
Corp., Mirador Project, 8.0%, 11/15/29 2,181,128
2,000,000 La Vernia Higher Education Finance Corp., Meridian
World School Series A, 5.5%, 8/15/45 1,997,020
1,775,000 Tarrant County Cultural Education Facilities Finance
Corp., Stayton at Museum Way, 8.0%, 11/15/28 1,779,722
1,380,000 Kinney County Public Facilities Corp., 7.0%, 11/1/25 1,239,682
1,075,000 City of Celina Texas, 6.0%, 9/1/30 1,046,029
1,000,000 City of Celina Texas, 5.5%, 9/1/24 980,560
650,000 City of Celina Texas, 5.875%, 9/1/40 626,925
500,000 City of Mclendon-Chisholm Texas, Sonoma Public
Import District Phase, 5.125%, 9/15/28 491,135
450,000 City of Mclendon-Chisholm Texas, Sonoma Public
Import District Phase, 5.375%, 9/15/35 439,740
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 21
Schedule of Investments | 8/31/15 (continued)
-------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Texas -- (continued)
400,000 City of Mclendon-Chisholm Texas, Sonoma Public
Import District Phase, 5.5%, 9/15/40 $ 389,912
400,000 City of Celina Texas, 5.375%, 9/1/28 389,788
250,000 City of Celina Texas, 5.5%, 9/1/32 242,488
120,000 Tarrant County Cultural Education Facilities Finance
Corp., MRC Crestview Project, 8.0%, 11/15/34 138,085
1,000,000 Texas Midwest Public Facility Corp., Secure Treatment
Facility, 9.0%, 10/1/30 (c) 129,000
234,442 Gulf Coast Industrial Development Authority, Micrology
Holdings LLC, 7.0%, 12/1/36 (c) 2
-------------
$ 53,446,828
-------------------------------------------------------------------------------------------------------
Utah -- 1.8%
1,285,000 Utah State Charter School Finance Authority, Summit
Academy High School, 7.25%, 5/15/21 $ 1,410,827
1,985,000 Utah State Charter School Finance Authority, Summit
Academy High School, 8.125%, 5/15/31 2,241,621
5,145,000 Utah State Charter School Finance Authority, Summit
Academy High School, 8.5%, 5/15/41 5,894,163
-------------
$ 9,546,611
-------------------------------------------------------------------------------------------------------
Virginia -- 2.3%
2,100,000 Cherry Hill Community Development Authority,
Potomac Shores Project, 5.4%, 3/1/45 $ 2,132,277
13,840,000 Tobacco Settlement Financing Corp. Virginia,
5.0%, 6/1/47 9,733,257
-------------
$ 11,865,534
-------------------------------------------------------------------------------------------------------
Washington -- 2.7%
3,500,000 Washington State Housing Finance Commission,
Skyline at First Hill Project, 5.625%, 1/1/27 $ 3,513,720
10,610,000 Washington State Housing Finance Commission,
Skyline at First Hill Project, 5.625%, 1/1/38 10,404,272
-------------
$ 13,917,992
-------------------------------------------------------------------------------------------------------
West Virginia -- 4.7%
25,000,000 City of Philippi West Virginia, Alderson-Broaddus
College, 7.75%, 10/1/44 $ 18,750,246
5,395,000 West Virginia Hospital Finance Authority, Highland
Hospital, 9.125%, 10/1/41 5,978,631
-------------
$ 24,728,877
-------------------------------------------------------------------------------------------------------
Wisconsin -- 4.6%
1,245,000 Public Finance Authority, Voyager Foundation, Inc.,
5.125%, 10/1/45 $ 1,248,610
1,590,000 Public Finance Authority, Coral Academy of Science,
5.625%, 7/1/44 1,677,561
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
-------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Wisconsin -- (continued)
1,500,000 Public Finance Authority, Roseman University
Health Sciences, 5.75%, 4/1/35 $ 1,504,290
4,150,000 Public Finance Authority, Roseman University Health
Sciences, 5.875%, 4/1/45 4,158,798
2,815,000 Public Finance Authority, Voyager Foundation Inc.,
6.2%, 10/1/42 3,010,811
5,057,500 Public Finance Authority, Las Ventanas Retirement
Community, 7.0%, 10/1/42 5,062,659
5,325,000 Public Finance Authority, Glenridge of Palmer Ranch,
8.25%, 6/1/46 6,195,797
1,265,000 Public Finance Authority, Searstone Project,
8.375%, 6/1/20 1,269,137
-------------
$ 24,127,663
-------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $515,479,520) $ 511,715,362
-------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT
OBLIGATION -- 0.0%+
1,175,000 0.00 Non-Profit Preferred Funding Trust I, Floating Rate
Note, 9/15/37 (144A) $ 73,214
-------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED DEBT OBLIGATION
(Cost $1,172,488) $ 73,214
-------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 98.4%
(Cost $516,652,008) (a)(h) $ 511,788,576
-------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 1.6% $ 8,319,142
-------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 520,107,718
=======================================================================================================
(Pre-Refunded) Pre-Refunded bonds have been collateralized by U.S. Treasury
securities which are held in escrow and used to pay principal
and interest on the tax-exempt issue and to retire the bonds in
full at the earliest refunding date.
(Step) Step up bond issued with an initial coupon which converts to a
higher rate at a later date.
+ Amount 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, 2015, the value of these securities
amounted to $4,278,954 or 0.8% of total net assets.
(a) At August 31, 2015, the net unrealized depreciation on
investments based on cost for federal income tax purposes of
$516,560,524 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 32,321,859
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (37,093,807)
------------
Net unrealized depreciation $ (4,771,948)
============
(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.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 23
Schedule of Investments | 8/31/15 (continued)
(c) Security is in default.
(d) Security is non-income producing.
(e) Security issued with a zero coupon. Income is earned through
accretion of discount.
(f) Consists of Revenue Bonds unless otherwise indicated.
(g) Represents a General Obligation bond.
(h) The concentration of investments by type of obligation/market
sector is as follows:
Revenue Bonds:
Health 30.0%
Special Revenues 25.9%
Education 20.9%
Pollution Control Revenue 8.3%
Various Revenues 8.0%
General Obligation 3.4%
Transportation 2.4%
Housing 0.7%
Insured 0.2%
Escrowed 0.2%
--------------------------------------------------------------------------------
100.0%
================================================================================
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2015 aggregated $195,366,952 and $142,900,631,
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, 2015, in valuing
the Fund's investments:
----------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------
Municipal Bonds $ -- $511,715,362 $ -- $511,715,362
Municipal Collateralized
Debt Obligation -- 73,214 -- 73,214
----------------------------------------------------------------------------------
Total $ -- $511,788,576 $ -- $511,788,576
==================================================================================
During the year ended August 31, 2015, there were no transfers between Levels 1,
2 and 3.
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
Statement of Assets and Liabilities | 8/31/15
ASSETS:
Investment in securities, at value (cost $516,652,008) $511,788,576
Receivables --
Investment securities sold 1,055,902
Fund shares sold 1,974,095
Interest 9,849,201
Other Assets 38,577
-------------------------------------------------------------------------------
Total assets $524,706,351
===============================================================================
LIABILITIES:
Payables --
Fund shares repurchased $ 1,974,690
Dividends 422,174
Trustee fees 3,514
Due to affiliates 108,126
Due to custodian 1,941,085
Accrued expenses 149,044
-------------------------------------------------------------------------------
Total liabilities $ 4,598,633
===============================================================================
NET ASSETS:
Paid-in capital $576,077,176
Undistributed net investment income 9,220,468
Accumulated net realized loss on investments (60,326,494)
Net unrealized depreciation on investments (4,863,432)
-------------------------------------------------------------------------------
Total net assets $520,107,718
===============================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $245,876,824/34,067,992 shares) $ 7.22
Class C (based on $146,029,311/20,232,106 shares) $ 7.22
Class Y (based on $128,201,583/17,995,378 shares) $ 7.12
MAXIMUM OFFERING PRICE:
Class A ($7.22 (divided by) 95.5%) $ 7.56
===============================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 25
Statement of Operations
For the Year Ended 8/31/15
INVESTMENT INCOME:
Interest $33,283,048
----------------------------------------------------------------------------------------
Total investment income $33,283,048
----------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 2,563,968
Transfer agent fees
Class A 24,439
Class C 8,298
Class Y 1,882
Distribution fees
Class A 616,497
Class C 1,496,621
Shareholder communications expense 323,310
Administrative reimbursement 157,501
Custodian fees 9,355
Registration fees 46,000
Professional fees 95,400
Printing expense 31,804
Fees and expenses of nonaffiliated Trustees 18,870
Miscellaneous 92,598
----------------------------------------------------------------------------------------
Total expenses $ 5,486,543
----------------------------------------------------------------------------------------
Net investment income $27,796,505
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $(6,679,877)
----------------------------------------------------------------------------------------
Change in net unrealized appreciation on investments $ 875,019
----------------------------------------------------------------------------------------
Net realized and unrealized loss on investments $(5,804,858)
----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $21,991,647
========================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/15 8/31/14
-----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 27,796,505 $ 28,710,919
Net realized gain (loss) on investments (6,679,877) 2,409,680
Change in net unrealized appreciation (depreciation)
on investments 875,019 3,527,217
-----------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 21,991,647 $ 34,647,816
-----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.40 and $0.44 per share, respectively) $ (13,393,020) $ (14,679,335)
Class C ($0.35 and $0.39 per share, respectively) (7,010,653) (8,896,752)
Class Y ($0.41 and $0.45 per share, respectively) (6,591,060) (6,197,281)
-----------------------------------------------------------------------------------------
Total distributions to shareowners $ (26,994,733) $ (29,773,368)
-----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 169,528,293 $ 171,100,856
Reinvestment of distributions 22,079,945 23,543,400
Cost of shares repurchased (156,480,079) (274,646,597)
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ 35,128,159 $ (80,002,341)
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 30,125,073 $ (75,127,893)
NET ASSETS:
Beginning of year $ 489,982,645 $ 565,110,538
-----------------------------------------------------------------------------------------
End of year $ 520,107,718 $ 489,982,645
-----------------------------------------------------------------------------------------
Undistributed net investment income $ 9,220,468 $ 8,420,280
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 27
Statements of Changes in Net Assets (continued)
----------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
8/31/15 8/31/15 8/31/14 8/31/14
Shares Amount Shares Amount
----------------------------------------------------------------------------------------------
Class A
Shares sold 11,663,809 $ 85,671,600 13,364,645 $ 95,629,792
Reinvestment of distributions 1,603,795 11,756,863 1,762,944 12,632,777
Less shares repurchased (12,244,062) (89,616,434) (16,892,168) (120,665,382)
----------------------------------------------------------------------------------------------
Net increase (decrease) 1,023,542 $ 7,812,029 (1,764,579) $ (12,402,813)
==============================================================================================
Class C
Shares sold 3,106,826 $ 22,852,098 3,088,934 $ 22,128,792
Reinvestment of distributions 775,852 5,689,573 969,680 6,948,501
Less shares repurchased (4,193,913) (30,726,011) (10,680,691) (76,310,340)
----------------------------------------------------------------------------------------------
Net decrease (311,235) $ (2,184,340) (6,622,077) $ (47,233,047)
==============================================================================================
Class Y
Shares sold 8,395,575 $ 61,004,595 7,547,136 $ 53,342,272
Reinvestment of distributions 640,635 4,633,509 560,257 3,962,122
Less shares repurchased (4,995,290) (36,137,634) (11,017,755) (77,670,875)
----------------------------------------------------------------------------------------------
Net increase (decrease) 4,040,920 $ 29,500,470 (2,910,362) $ (20,366,481)
==============================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
Financial Highlights
----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/15 8/31/14 8/31/13 8/31/12 8/31/11
----------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 7.27 $ 7.19 $ 7.94 $ 7.58 $ 7.97
----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.41 $ 0.43 $ 0.53 $ 0.47 $ 0.53
Net realized and unrealized gain (loss) on investments (0.06) 0.09 (0.84) 0.34 (0.40)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.35 $ 0.52 $ (0.31) $ 0.81 $ 0.13
----------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.40) $ (0.44) $ (0.44) $ (0.45) $ (0.52)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.05) $ 0.08 $ (0.75) $ 0.36 $ (0.39)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.22 $ 7.27 $ 7.19 $ 7.94 $ 7.58
============================================================================================================================
Total return* 4.88% 7.52% (4.26)% 11.24% 1.83%
Ratio of net expenses to average net assets 0.89% 0.90% 0.88% 0.89% 0.88%
Ratio of net investment income (loss) to average net assets 5.59% 5.97% 6.26% 6.25% 6.98%
Portfolio turnover rate 29% 55% 17% 54% 65%
Net assets, end of period (in thousands) $245,877 $240,331 $250,163 $373,039 $378,883
============================================================================================================================
* 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 | 8/31/15 29
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/15 8/31/14 8/31/13 8/31/12 8/31/11
----------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 7.28 $ 7.19 $ 7.94 $ 7.58 $ 7.96
----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.36 $ 0.41 $ 0.46 $ 0.41 $ 0.47
Net realized and unrealized gain (loss) on investments (0.07) 0.07 (0.83) 0.35 (0.39)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.29 $ 0.48 $ (0.37) $ 0.76 $ 0.08
----------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.35) $ (0.39) $ (0.38) $ (0.40) $ (0.46)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.06) $ 0.09 $ (0.75) $ 0.36 $ (0.38)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.22 $ 7.28 $ 7.19 $ 7.94 $ 7.58
============================================================================================================================
Total return* 3.95% 6.85% (4.98)% 10.42% 1.19%
Ratio of net expenses to average net assets 1.65% 1.66% 1.63% 1.63% 1.63%
Ratio of net investment income (loss) to average net assets 4.83% 5.23% 5.53% 5.50% 6.24%
Portfolio turnover rate 29% 55% 17% 54% 65%
Net assets, end of period (in thousands) $146,029 $149,453 $195,290 $265,448 $244,848
============================================================================================================================
* 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 High Income Municipal Fund | Annual Report | 8/31/15
----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/15 8/31/14 8/31/13 8/31/12 8/31/11
----------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 7.18 $ 7.10 $ 7.84 $ 7.49 $ 7.88
----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.39 $ 0.46 $ 0.53 $ 0.48 $ 0.53
Net realized and unrealized gain (loss) on investments (0.04) 0.07 (0.82) 0.33 (0.39)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.35 $ 0.53 $ (0.29) $ 0.81 $ 0.14
----------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.41) $ (0.45) $ (0.45) $ (0.46) $ (0.53)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.06) $ 0.08 $ (0.74) $ 0.35 $ (0.39)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.12 $ 7.18 $ 7.10 $ 7.84 $ 7.49
============================================================================================================================
Total return* 4.92% 7.69% (4.05)% 11.43% 2.02%
Ratio of net expenses to average net assets 0.71% 0.71% 0.72% 0.67% 0.67%
Ratio of net investment income (loss) to average net assets 5.77% 6.17% 6.40% 6.46% 7.21%
Portfolio turnover rate 29% 55% 17% 54% 65%
Net assets, end of period (in thousands) $128,202 $100,199 $119,658 $176,664 $198,089
============================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 31
Notes to Financial Statements | 8/31/15
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:
32 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
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 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. Cash may include overnight time deposits at approved financial
institutions.
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, 2015, 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).
B. Investment Income and Transactions
Discount and premium on purchase prices of 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.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 33
C. 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, 2015, 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, 2015, the Fund reclassified $1,584 to decrease undistributed net
investment income and $1,584 to decrease 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, 2015, the Fund was permitted to carry forward indefinitely
$21,308,836 of short-term losses and $30,332,774 of long-term losses under
the Regulated Investment Company Modernization Act of 2010 without
limitation. Additionally, at August 31, 2015, 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.
The tax character of distributions during the years ended August 31, 2015
and August 31, 2014 were as follows:
---------------------------------------------------------------------------
2015 2014
---------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $26,502,250 $28,444,745
Ordinary income 492,483 1,328,623
---------------------------------------------------------------------------
Total $26,994,733 $29,773,368
===========================================================================
34 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
The following shows the components of distributable earnings on a federal
income tax-basis at August 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 9,515,422
Capital loss carryforward (60,290,758)
Current year dividend payable (422,174)
Net unrealized depreciation (4,771,948)
---------------------------------------------------------------------------
Total $(55,969,458)
===========================================================================
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 amortization and tax-basis adjustments on partnerships.
D. 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 $75,010 in underwriting commissions on the sale of
Class A shares during the year ended August 31, 2015.
E. 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 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.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 35
F. 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, 2015,
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. Class C and Class Y shares do not
have an expense limitation. This expense limitation is in effect through January
1, 2016 for Class A shares. 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
$29,649 in management fees, administrative costs and certain other
reimbursements payable to PIM at August 31, 2015.
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, 2015, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 94,768
Class C 81,928
Class Y 146,614
--------------------------------------------------------------------------------
Total $323,310
================================================================================
36 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $55,802 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at August 31, 2015.
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 $22,675 in distribution fees payable to
PFD at August 31, 2015.
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, 2015, CDSCs in the amount of $14,380 were paid to PFD.
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, 2015, 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 June 9, 2015 was in the amount of $215 million.
As of June 9, 2015, 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
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 37
Interbank Offered Rate (LIBOR) plus 0.85% (0.90% 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 eurodollar 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. For the year ended August 31, 2015, the Fund had no
borrowings under the credit agreement.
38 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
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,
2015, and the related statement of operations for year then ended and the
statements of changes in net assets and the financial highlights for each of the
two years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for the years ended August 31,
2013, 2012, and 2011 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 audits 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 audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, 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, 2015, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer High Income Municipal Fund as of August 31, 2015, the results of its
operations for the year then ended, and the changes in its net assets and the
financial highlights for each of the two years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
October 28, 2015
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 39
Additional Information (unaudited)
PIM, the Fund's investment adviser, is currently an indirect, wholly-owned
subsidiary of UniCredit. On April 23, 2015, UniCredit announced that it signed a
preliminary and exclusive agreement with Banco Santander and affiliates of
Warburg Pincus and General Atlantic (the "Private Equity Firms") with respect to
Pioneer Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as described in the UniCredit announcement, will entail the
establishment of a holding company, with the name Pioneer Investments, to be
owned by UniCredit (50%) and the Private Equity Firms (50% between them). The
holding company will control Pioneer's U.S. operations, including the Adviser.
The holding company also will own 66.7% of Pioneer's and SAM's combined
operations outside the U.S., while Banco Santander will own directly the
remaining 33.3% stake. The completion of the Transaction is subject to the
signing of a definitive agreement, as well as certain regulatory and corporate
approvals, and other conditions.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's investment advisory agreement with the Adviser to terminate. In
connection with the Transaction, the Fund's Board of Trustees will be asked to
approve a new investment advisory agreement for the Fund. If approved by the
Board, the Fund's new investment advisory agreement will be submitted to the
shareholders of the Fund for their approval.
The percentage of the Fund's ordinary income distributions that are exempt from
nonresident alien (NRA) tax withholding resulting from qualified interest income
and qualified short term gains were 100.00% and 0.00%, respectively.
40 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
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
Morgan, Lewis & Bockius 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 51 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 High Income Municipal Fund | Annual Report | 8/31/15 41
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 (64) Trustee since 2006. Private investor (2004-2008 and Director, Broadridge
Chairman of the Board Serves until a successor 2013-present); Chairman (2008-2013) and Financial Solutions, Inc.
and Trustee trustee is elected or earlier Chief Executive Officer (2008-2012), (investor communications
retirement or removal. Quadriserv, Inc. (technology products for and securities processing
securities lending industry); and Senior provider for financial
Executive Vice President, The Bank of New services industry) (2009-
York (financial and securities services) present); Director,
(1986-2004) Quadriserv, Inc.
(2005-2013); and
Commissioner, New Jersey
State Civil Service
Commission (2011-present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Trustee since 2005. Managing Partner, Federal City Capital Director of New York
Trustee Serves until a successor Advisors (corporate advisory services Mortgage Trust
trustee is elected or earlier company) (1997-2004 and 2008-present); (publicly-traded mortgage
retirement or removal. Interim Chief Executive Officer, Oxford REIT) (2004-2009,
Analytica, Inc. (privately-held research 2012-present); Director
and consulting company) (2010); Executive of The Swiss Helvetia
Vice President and Chief Financial Fund, Inc. (closed-end
Officer, I-trax, Inc. (publicly traded fund) (2010-present);
health care services company) Director of Oxford
(2004-2007); and Executive Vice President Analytica, Inc.
and Chief Financial Officer, Pedestal (2008-present); and
Inc. (internet-based mortgage trading Director of Enterprise
company) (2000-2002); Private consultant Community Investment,
(1995-1997), Managing Director, Lehman Inc. (privately-held
Brothers (investment banking firm) affordable housing
(1992-1995); and Executive, The World finance company)
Bank (1979-1992) (1985-2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (71) Trustee since 2008. William Joseph Maier Professor of Trustee, Mellon
Trustee Serves until a successor Political Economy, Harvard University Institutional Funds
trustee is elected or earlier (1972-present) Investment Trust and
retirement or removal. Mellon Institutional
Funds Master Portfolio
(oversaw 17 portfolios in
fund complex) (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
42 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
------------------------------------------------------------------------------------------------------------------------------------
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 (68) Trustee since 2006. Founding Director, Vice President and None
Trustee Serves until a successor Corporate Secretary, The Winthrop Group,
trustee is elected or earlier Inc. (consulting firm) (1982-present);
retirement or removal. Desautels Faculty of Management, McGill
University (1999-present); and Manager of
Research Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (67) Trustee since 2006. President and Chief Executive Officer, Director of New America
Trustee Serves until a successor Newbury, Piret & Company, Inc. High Income Fund, Inc.
trustee is elected or earlier (investment banking firm) (1981-present) (closed-end investment
retirement or removal. company) (2004-present);
and Member, Board of
Governors, Investment
Company Institute
(2000-2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (68) Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a successor (2012-present); Executive Vice President,
trustee is elected or earlier BNY Mellon (financial and investment
retirement or removal. company services) (1969-2012); Director,
BNY International Financing Corp.
(financial services) (2002-2012); and
Director, Mellon Overseas Investment
Corp. (financial services) (2009-2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 43
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
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 (57)* Trustee since 2014. Director and Executive Vice President None
Trustee Serves until a successor (since 2008) and Chief Investment
trustee is elected or earlier Officer, U.S. (since 2010) of PIM-USA;
retirement or removal. Executive Vice President of Pioneer
(since 2008); Executive Vice President of
Pioneer Institutional Asset Management,
Inc. (since 2009); and 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.
44 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine Monchak (59)** Advisory Trustee since 2014. Chief Investment Officer, 1199 SEIU Funds None
Advisory Trustee (healthcare workers union pension funds)
(2001-present); Vice
President-International Investments
Group, American International Group, Inc.
(insurance company) (1993-2001); Vice
President Corporate Finance and Treasury
Group, Citibank, N.A.(1980-1986 and 1990-
1993); Vice President-Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer
of debt securities) (1988-1990); Mortgage
Strategies Group, Shearson Lehman Hutton,
Inc. (investment bank) (1987-1988); and
Mortgage Strategies Group, Drexel Burnham
Lambert, Ltd. (investment bank)
(1986-1987)
------------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak is a non-voting advisory trustee.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 45
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (53) Since 2014. Serves at the Chair, Director, CEO and President of None
President and discretion of the Board. Pioneer Investment Management-USA (since
Chief Executive Officer September 2014); 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); and
Director of Institutional Business, CEO
of International, Eaton Vance Management
(2005-2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (50) Since 2006. Serves at the Vice President and Associate General None
Secretary and Chief discretion of the Board. Counsel of Pioneer since January 2008;
Legal Officer Secretary and Chief Legal Officer of all
of the Pioneer Funds since June 2010;
Assistant Secretary of all of the Pioneer
Funds from September 2003 to May 2010;
and Vice President and Senior Counsel of
Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (54) Since 2010. Serves at the Fund Governance Director of Pioneer since None
Assistant Secretary discretion of the Board. December 2006 and Assistant Secretary of
all the Pioneer 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 (52) Since 2010. Serves at the Senior Counsel of Pioneer since May 2013 None
Assistant Secretary discretion of the Board. and Assistant Secretary of all the
Pioneer Funds since June 2010; and
Counsel of Pioneer from June 2007 to May
2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2008. Serves at the Vice President-Fund Treasury of Pioneer; None
Treasurer and Chief discretion of the Board. Treasurer of all of the Pioneer Funds
Financial since March 2008; Deputy Treasurer of
and Accounting Officer Pioneer from March 2004 to February 2008;
and Assistant Treasurer of all of the
Pioneer Funds from March 2004 to February
2008
------------------------------------------------------------------------------------------------------------------------------------
46 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 2006. Serves at the Director-Fund Treasury of Pioneer; and None
Assistant Treasurer discretion of the Board. Assistant Treasurer of all of the Pioneer
Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (57) Since 2006. Serves at the Fund Accounting Manager-Fund Treasury of None
Assistant Treasurer discretion of the Board. Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2009. Serves at the Fund Administration Manager-Fund Treasury None
Assistant Treasurer discretion of the Board. of Pioneer since November 2008; Assistant
Treasurer of 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 (62) Since 2010. Serves at the Chief Compliance Officer of Pioneer and None
Chief Compliance Officer discretion of the Board. of all the Pioneer Funds since March
2010; Chief Compliance Officer of Pioneer
Institutional Asset Management, Inc.
since January 2012; Chief Compliance
Officer of Vanderbilt Capital Advisors,
LLC since July 2012: Director of Adviser
and Portfolio Compliance at Pioneer since
October 2005; and Senior Compliance
Officer for Columbia Management Advisers,
Inc. from October 2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (44) Since 2006. Serves at the Director-Transfer Agency Compliance of None
Anti-Money Laundering discretion of the Board. Pioneer and Anti-Money Laundering Officer
Officer of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 47
This page for your notes.
48 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
This page for your notes.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 49
This page for your notes.
50 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
This page for your notes.
Pioneer High Income Municipal Fund | Annual Report | 8/31/15 51
This page for your notes.
52 Pioneer High Income Municipal Fund | Annual Report | 8/31/15
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) 2015 Pioneer Investments 21203-08-1015
Pioneer Long/Short
Bond Fund
(Formerly Pioneer Long/Short Global
Bond Fund)*
--------------------------------------------------------------------------------
Annual Report | August 31, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A LSGAX
Class C LSGCX
Class Y LSGYX
* Effective June 1, 2015, the Fund was renamed Pioneer
Long/Short Bond Fund.
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 28
Notes to Financial Statements 35
Report of Independent Registered Public Accounting Firm 53
Trustees, Officers and Service Providers 55
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 1
President's Letter
Dear Shareholder,
In the second half of 2015, two main issues have been dominating the attention
of global investors and policymakers alike, and shaping the current investment
environment: The Federal Reserve System's (the Fed's) deliberations over when to
begin normalizing interest rates in the U.S., and the increasing divergence in
economic activity around the globe. As 2015 began, market expectations were that
the Fed would likely begin raising interest rates by the middle of the year, but
a sluggish gross domestic product report in the first calendar quarter as well
as relatively benign inflation and wage growth contributed to the Fed's taking a
more cautionary approach and delaying the start of its rate-hike cycle. At the
same time, however, the U.S. labor market has continued its robust improvement,
moving the Fed closer to declaring victory on one of its main monetary policy
objectives -- full employment.
Meanwhile, global economic activity has continued to diverge, with developed
economies experiencing above-trend growth and most emerging markets economies
lagging the rest of the world. The slower pace of economic activity in the
emerging markets has been most evident in China, as the country's economy
continues to undergo a long, potentially painful adjustment from investment-led
growth to consumption-oriented growth. This divergence in global economic cycles
is likely to continue for some time, and we would expect an increased level of
volatility as global capital markets and policymakers adjust.
Pioneer Investments believes that investors in today's environment can
potentially benefit from the consistent and disciplined investment approach we
have used since our founding in 1928. We focus on identifying value across
global markets using proprietary research, careful risk management, and a
long-term perspective. Our ongoing goal is to produce compelling returns
consistent with the stated objectives of our investment products, and with our
shareowners' expectations. We believe our shareowners can benefit from the
experience and tenure of our investment teams as well as the insights generated
from our extensive research process.
2 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
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 Bond Fund | Annual Report | 8/31/15 3
Portfolio Management Discussion | 8/31/15
In the following interview, portfolio managers Thomas Swaney and Benjamin Gord
discuss the factors that influenced Pioneer Long/Short Bond Fund's performance
during the 12-month period ended August 31, 2015, 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 How did the Fund perform during the 12-month period ended August 31, 2015?
A Pioneer Long/Short Bond Fund's Class A shares returned 1.14% at net asset
value during the 12-month period ended August 31, 2015, while the Fund's
benchmark, the Bank of America Merrill Lynch (BofA ML) 3-Month U.S.
Treasury-Bill Index, returned 0.03%. During the same period, the average
return of the 231 mutual funds in Lipper's Alternative Credit Focus Funds
category was -2.22%, and the average return of the 418 mutual funds in
Morningstar's Non-Traditional Bond Funds category was -1.38%.
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 three-month Treasury bills, on an
annualized basis, with volatility that is about the same as that of the
broad fixed-income market. In pursuing this goal, we seek to have the Fund
provide positive returns while trying 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 taking an unfavorable
view of other asset classes by taking short positions.
The other part of the portfolio utilizes uncorrelated, relative-value-based
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
4 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
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. 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. We operate within an overall "risk budget" for
the portfolio based on our objective of largely avoiding negative 12-month
returns.
Q Can you review the principal portfolio investment strategies you
implemented during the 12-month period ended August 31, 2015? How did those
strategies help or hinder the Fund's performance?
A On the relative value side of the portfolio, which seeks to realize gains
regardless of market direction, one strategy we use is to seek to take
advantage of the slope of the spread (yield) curve for individual corporate
bond issuers. For instance, the long-term debt of companies with weaker
balance sheets may react more strongly to changes in business conditions
than the same companies' short term debt. Within this strategy, a curve
trade in retailer Radio Shack added to the Fund's performance during the
period, while a curve trade in gaming company Caesars Entertainment
detracted. On the whole, the Fund's long/short curve trading strategies
contributed positively to returns over the 12-month period.
Another positive contributor to performance was based on our view that the
sharp decline in oil prices during the period had affected the
investment-grade debt of energy firms to a disproportionate extent. We took
a portfolio position designed to benefit from an eventual narrowing of
spreads for such credits versus the overall investment-grade bond universe,
while shorting an index that represented the broader investment-grade
universe in an attempt to eliminate market risk. This strategy worked out
well for the Fund as spreads for investment-grade energy credits eventually
began to normalize against other investment-grade bonds. Our utilization of
credit index tranches, while shorting the overall market index, also
benefited the Fund's performance during the period. This strategy allowed
the Fund to efficiently accentuate its exposure to certain index
constituents that are more susceptible to overall changes in business
conditions.
We have been cautious with respect to credit markets in general, and
high-yield corporates in particular, given the spread tightening that has
occurred. We did, however, successfully take positions in corporate bonds,
including high-yield issues, on weakness at various points during the
period. The Fund also benefited from long positions in both commercial
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 5
mortgage-backed (CMBS) and residential mortgage-backed securities (MBS), as
credit profiles of existing borrowers improved along with the domestic
economic backdrop. As the period progressed, we reduced the portfolio's MBS
exposure based on our view that the segment had become close to fairly
valued.
The Fund's currency strategies aided returns during the period as we
positioned the portfolio from a macroeconomic perspective in order to
benefit from the relative strengthening of the U.S. dollar. In particular,
we went long the U.S. dollar in the portfolio, while shorting the euro, the
Japanese yen, and the Swedish krona. In addition, we were long the U.S.
dollar versus a number of currencies that were affected by fears of slowing
economic growth in China; specifically, the Korean won, Taiwan dollar,
Singapore dollar and Australian dollar.
The Fund also benefited by taking positions in specific issuers where we
believe the market's views, from a credit-default perspective, were
excessively pessimistic. Specifically, we took long positions in relatively
short-term obligations of such issuers, while attempting to hedge out the
impact of the broader market's performance.
Our management of the Fund's interest-rate exposures detracted modestly
from returns during the period. The portfolio had a short-duration stance
in the United States at various times as longer-term rates declined.
(Duration is a measure of the sensitivity of the price - the value of
principal - of a fixed-income investment to a change in interest rates,
expressed as a number of years.) The short-duration position was based on
our view that U.S. rates would rise as the Federal Reserve System (the Fed)
solidified expectations for when it would begin to hike its benchmark rate.
However, the market remained sanguine with respect to the rates outlook,
and the yield curve flattened. We eventually removed the position from the
portfolio, based on the significant level of market uncertainty about the
U.S. economic trajectory and over the timing of any Fed action on interest
rates in response to that uncertainty.
On the directional side of the portfolio, we will take long or short
positions in fixed-income markets and securities based on our performance
outlook, while attempting to hedge out interest-rate risk. The Fund's
directional trading became challenged as volatility spiked in the latter
part of the period.
Q Could you discuss the use of derivative positions in the portfolio during
the 12-month period ended August 31, 2015, and their effect on the Fund's
performance?
A Virtually all of the portfolio's strategies are implemented via
derivatives, and so the Fund's performance will always be affected by
derivatives trading. For instance, when we want to short U.S. Treasuries,
we will do so mainly by
6 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
selling Treasury futures or sometimes by buying "put" options. (A "put"
option is a contractual agreement that gives the contract owner the right,
but not the obligation, to sell a security at a pre-determined, fixed price
for a certain period of time, regardless of the current market price of
that security.) Similarly, in the currency sleeve of the Fund, we use
forwards and options to gain the desired exposures. With respect to credit
markets, where there are no liquid futures contracts, we may use credit
default swaps to manage the portfolio's exposures. In other situations, we
utilize instruments such as interest-rate or inflation swaps to implement
our strategies.
Q What is your assessment of the current macroeconomic climate and the
opportunities it may present?
A The portfolio is currently positioned neutrally with respect to U.S.
interest rates. While we believe the Fed will be justified in raising rates
given the relative strength of the U.S. economy, weaker conditions overseas
and investment flows into the United States could keep expectations
tempered with respect to longer-term Treasury yields.
We believe the timing of the Fed's first rate hike is less important than
the trajectory and ultimate endpoint of the increases over the next few
years. That will depend on whether the U.S. economy displays sufficient
strength to support a traditional rate-hiking cycle, as defined by the
cycle's pace and end point. It appears to us that the market is currently
somewhat more pessimistic about the U.S. economy than is the Fed.
In general, asset valuations appear to be ahead of economic growth trends.
At the same time, corporate balance sheets are in good shape. At present,
we see relatively few directional investment opportunities in the fixed-
income markets. CMBS continue to appear attractively valued on a relative
basis, while spreads for corporate bonds have widened to a degree where we
are now actively evaluating the asset class.
The Fed's extraordinarily supportive policies have helped to underpin
conditions in recent years. While the beginning of Fed policy tightening is
anticipated to a large degree by the market, volatility and performance
dispersion could still increase as the speculation about increased rates
moves out of the realm of benign prospect and becomes a reality. Slowing
economic growth in China and the impact of oil prices on different
countries and sectors will also be closely monitored by investors.
On balance, we expect an environment of heightened volatility across fixed-
income markets that could very well provide opportunities for the
portfolio's relative value strategies. In such an environment, we will be
focused on identifying the opportunities that do emerge as market reactions
overshoot developments on various macroeconomic fronts.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 7
Note to Shareholders: Effective June 1, 2015, Pioneer Long/Short Global
Bond Fund was renamed Pioneer Long/Short Bond Fund. In addition, the
investment policy to allocate at least 40% of the Fund's assets in non-U.S.
securities was eliminated. The Fund's investment objectives and overall
strategy did not change.
Please refer to the Schedule of Investments on pages 17-27 for a full
listing of Fund securities.
All investments are subject to risk, including the possible loss of
principal.
The Fund 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 Fund.
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 Fund may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other
fixed-income securities. Mortgage-backed securities are also subject to
pre-payments.
8 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
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 and other insurance-linked
securities. The return of principal and the payment of interest on
insurance-linked securities 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. Past
performance is no guarantee of future results.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 9
Portfolio Summary | 8/31/15
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 58.7%
Temporary Cash Investment 21.1%
Collateralized Mortgage Obligations 9.3%
International Corporate Bonds 5.3%
Asset Backed Securities 2.8%
U.S. Corporate Bonds 2.1%
U.S. Preferred Stocks 0.7%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. U.S. Treasury Bills, 0.0%, 9/10/15 8.81%
--------------------------------------------------------------------------------
2. U.S. Treasury Bills, 0.0%, 11/5/15 6.52
--------------------------------------------------------------------------------
3. U.S. Treasury Bills, 0.0%, 10/29/15 6.23
--------------------------------------------------------------------------------
4. U.S. Treasury Bills, 0.0%, 9/3/15 6.15
--------------------------------------------------------------------------------
5. U.S. Cash Management Bills, 0.0%, 9/15/15 6.15
--------------------------------------------------------------------------------
6. U.S. Treasury Note, Floating Rate Note, 1/31/17 6.12
--------------------------------------------------------------------------------
7. U.S. Treasury Note, Floating Rate Note, 4/30/17 6.12
--------------------------------------------------------------------------------
8. U.S. Treasury Note, Floating Rate Note, 7/31/16 6.12
--------------------------------------------------------------------------------
9. U.S. Treasury Note, Floating Rate Note, 10/31/16 6.12
--------------------------------------------------------------------------------
10. U.S. Treasury Note, Floating Rate Note, 4/30/16 6.12
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
Due to the exclusion of derivatives, the list may not represent the Fund's
market exposures. See the Schedule of Investments. 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 Bond Fund | Annual Report | 8/31/15
Prices and Distributions |8/31/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/15 8/31/14
--------------------------------------------------------------------------------
A $9.95 $10.05
--------------------------------------------------------------------------------
C $9.87 $10.00
--------------------------------------------------------------------------------
Y $9.97 $10.07
--------------------------------------------------------------------------------
Distributions per Share: 9/1/14-8/31/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2127 $-- $--
--------------------------------------------------------------------------------
C $0.1634 $-- $--
--------------------------------------------------------------------------------
Y $0.2303 $-- $--
--------------------------------------------------------------------------------
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.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 11
Performance Update | 8/31/15 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 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, 2015)
--------------------------------------------------------------------------------
Net Public BofA ML
Asset Offering 3-Month
Value Price U.S. Treasury
Period (NAV) (POP) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 0.99% -1.76% 0.03%
1 Year 1.14 -3.37 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014, as revised June 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.83% 1.64%
--------------------------------------------------------------------------------
[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
Bond Fund US Treasury Bill Index
12/13 $ 9,550 $ 10,000
8/14 $ 9,599 $ 10,003
8/15 $ 9,709 $ 10,005
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, 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.
12 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
Performance Update | 8/31/15 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 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, 2015)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 0.21% 0.21% 0.03%
1 Year 0.34 0.34 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014, as revised June 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.57% 2.39%
--------------------------------------------------------------------------------
[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
Bond Fund US Treasury Bill Index
12/13 $ 10,000 $ 10,000
8/14 $ 10,000 $ 10,003
8/15 $ 10,034 $ 10,005
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.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 13
Performance Update | 8/31/15 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 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, 2015)
--------------------------------------------------------------------------------
Net BofA ML
Asset 3-Month
Value U.S. Treasury
Period (NAV) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 1.21% 0.03%
1 Year 1.32 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014, as revised June 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.57% 1.39%
--------------------------------------------------------------------------------
[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
Bond Fund US Treasury Bill Index
12/13 $ 5,000,000 $ 5,000,000
8/14 $ 5,035,000 $ 5,001,378
8/15 $ 5,101,671 $ 5,002,692
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, 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.
14 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Long/Short Bond Fund
Based on actual returns from March 1, 2015, through August 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 3/1/15 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $ 990.99 $ 986.92 $ 991.00
on 8/31/15
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 7.98 $ 11.72 $ 6.72
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratio of the underlying funds. These combined totals were 1.59%, 2.34%, and
1.34% for Class A, Class C and Class Y shares respectively. These combined
ratios were multiplied by the average account value over the period, and
then multiplied by 184/365 (to reflect the one-half year period).
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 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 Bond Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2015, through August 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 3/1/15 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses) $1,017.19 $1,013.41 $1,018.45
on 8/31/15
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 8.08 $ 11.88 $ 6.82
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratio of the underlying funds. These combined totals were 1.59%, 2.34%, and
1.34% for Class A, Class C and Class Y shares respectively. These combined
ratios were multiplied by the average account value over the period, and
then multiplied by 184/365 (to reflect the one-half year period).
16 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
Schedule of Investments | 8/31/15
-------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 0.5%
DIVERSIFIED FINANCIALS -- 0.5%
Investment Banking & Brokerage -- 0.5%
10,000 7.12 Morgan Stanley, Floating Rate Note (Perpetual) $ 277,600
---------------
Total Diversified Financials $ 277,600
-------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $284,103) $ 277,600
-------------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 2.9%
BANKS -- 0.3%
Thrifts & Mortgage Finance -- 0.3%
40,013 1.50 First Franklin Mortgage Loan Trust 2003-FFC,
Floating Rate Note, 11/25/32 $ 38,299
41,165 Icon Brand Holdings LLC, 4.229%, 1/26/43 (144A) 41,362
26,895 3.20 Irwin Whole Loan Home Equity Trust 2003-C, Floating
Rate Note, 6/25/28 26,867
44,920 5.47 New Century Home Equity Loan Trust, Floating Rate
Note, 8/25/34 45,518
---------------
$ 152,046
---------------
Total Banks $ 152,046
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.6%
Other Diversified Financial Services -- 0.2%
85,000 TAL Advantage V LLC, 4.1%, 2/22/39 $ 85,552
-------------------------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 2.4%
630,000 RMAT 2015-1 LLC, 5.0%, 7/27/20 (Step) (144A) $ 618,975
630,000 VOLT XXXVII LLC, 4.375%, 7/25/45 (Step) (144A) 618,715
---------------
$ 1,237,690
---------------
Total Diversified Financials $ 1,323,242
-------------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $1,480,461) $ 1,475,288
-------------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 9.4%
BANKS -- 9.4%
Thrifts & Mortgage Finance -- 9.4%
300,000 1.16 Alternative Loan Trust 2005-J4, Floating Rate Note,
7/25/35 $ 271,258
185,000 2.72 BAMLL Commercial Mortgage Securities Trust
2014-INLD, Floating Rate Note, 12/17/29 (144A) 170,572
100,000 Bear Stearns Commercial Mortgage Securities Trust
2006-PWR14, 5.273%, 12/11/38 100,754
115,000 2.78 Carefree Portfolio Trust 2014-CARE, Floating Rate
Note, 11/15/19 (144A) 112,257
240,000 4.80 CFCRE 2015-RUM Mortgage Trust, Floating Rate
Note, 7/15/30 (144A) 240,081
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 17
Schedule of Investments | 8/31/15 (continued)
-------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) unaudited) Value
-------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
280,000 3.21 Citigroup Commercial Mortgage Trust 2014-GC23
REMICS, Floating Rate Note, 7/12/47 (144A) $ 202,629
175,000 5.57 COBALT Commercial Mortgage Trust 2007-C2,
Floating Rate Note, 4/15/47 175,483
175,000 COMM 2006-C8 Mortgage Trust, 5.377%, 12/10/46 175,108
490,000 5.80 COMM 2007-C9 Mortgage Trust, Floating Rate Note,
12/10/49 (144A) 463,852
175,000 5.23 Credit Suisse First Boston Mortgage Securities Corp.,
Floating Rate Note, 12/17/40 174,776
380,000 4.89 CSMC Trust 2015-SAND, Floating Rate Note,
8/15/30 (144A) 380,006
110,000 3.38 GAHR Commercial Mortgage Trust 2015-NRF,
Floating Rate Note, 12/15/19 (144A) 103,013
125,000 4.94 GS Mortgage Securities Corp II Series 2005-GG4,
Floating Rate Note, 7/10/39 122,819
200,000 JP Morgan Chase Commercial Mortgage Securities
Trust 2006-CIBC16, 5.623%, 5/12/45 201,789
725,000 5.35 LB-UBS Commercial Mortgage Trust 2005-C7,
Floating Rate Note, 11/15/40 (144A) 739,720
150,000 5.28 LB-UBS Commercial Mortgage Trust 2006-C1,
Floating Rate Note, 2/15/41 150,779
55,000 5.48 ML-CFC Commercial Mortgage Trust 2006-3,
Floating Rate Note, 7/12/46 55,517
320,000 4.80 PFP 2015-2, Ltd., Floating Rate Note, 7/14/34
(144A) 320,018
250,000 5.56 Wachovia Bank Commercial Mortgage Trust Series
2005-C22, Floating Rate Note, 12/15/44 250,310
100,000 5.95 Wachovia Bank Commercial Mortgage Trust Series
2007-C34, Floating Rate Note, 5/15/46 103,486
195,000 Wells Fargo Commercial Mortgage Trust 2010-C1,
4.0%, 11/18/43 (144A) 178,417
200,000 3.70 Wells Fargo Commercial Mortgage Trust 2014-TISH,
Floating Rate Note, 1/15/27 (144A) 196,881
---------------
$ 4,889,525
---------------
Total Banks $ 4,889,525
-------------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $4,874,370) $ 4,889,525
-------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 7.6%
ENERGY -- 3.1%
Integrated Oil & Gas -- 2.4%
1,251,000 Petrobras Global Finance BV, 3.875%, 1/27/16 $ 1,250,336
-------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.7%
390,000 Chesapeake Energy Corp., 3.25%, 3/15/16 $ 383,175
---------------
Total Energy $ 1,633,511
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
-------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.9%
Aerospace & Defense -- 0.9%
505,000 Bombardier, Inc., 7.5%, 3/15/18 (144A) $ 472,175
---------------
Total Capital Goods $ 472,175
-------------------------------------------------------------------------------------------------------------
BANKS -- 2.0%
Diversified Banks -- 2.0%
250,000 6.50 Bank of America Corp., Floating Rate Note,
10/23/49 $ 257,500
250,000 5.90 Citigroup, Inc., Floating Rate Note (Perpetual) 245,625
250,000 6.62 Credit Agricole SA, Floating Rate Note (Perpetual)
(144A) 245,138
300,000 6.50 ING Groep NV, Floating Rate Note (Perpetual) 287,812
---------------
$ 1,036,075
---------------
Total Banks $ 1,036,075
-------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Other Diversified Financial Services -- 0.1%
INR 3,700,000 European Bank for Reconstruction & Development,
6.0%, 3/3/16 $ 55,414
---------------
Total Diversified Financials $ 55,414
-------------------------------------------------------------------------------------------------------------
INSURANCE -- 1.5%
Reinsurance -- 1.5%
250,000 6.86 Caelus Re, Ltd., Floating Rate Note, 4/7/17 (Cat
Bond) (144A) $ 256,100
250,000 4.52 Kilimanjaro Re, Ltd., Floating Rate Note, 4/30/18
(Cat Bond) (144A) 244,825
250,000 4.51 Residential Reinsurance 2012, Ltd., Floating Rate
Note, 12/6/16 (Cat Bond) (144A) 252,175
---------------
$ 753,100
---------------
Total Insurance $ 753,100
-------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $4,032,810) $ 3,950,275
-------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 59.5%
2,550,000 U.S. Cash Management Bills, 0.0%, 9/15/15 (c) $ 2,549,924
2,580,000 U.S. Treasury Bills, 0.0%, 10/29/15 (c) 2,579,972
2,700,000 U.S. Treasury Bills, 0.0%, 11/5/15 (c) 2,700,054
3,650,000 U.S. Treasury Bills, 0.0%, 9/10/15 (c) 3,649,996
1,570,000 U.S. Treasury Bills, 0.0%, 9/17/15 (c) 1,570,002
30,000 U.S. Treasury Bills, 0.0%, 9/24/15 (c) 30,000
2,550,000 U.S. Treasury Bills, 0.0%, 9/3/15 (c) 2,550,000
2,535,000 0.10 U.S. Treasury Note, Floating Rate Note, 1/31/16 (d) 2,535,428
2,535,000 0.13 U.S. Treasury Note, Floating Rate Note, 1/31/17 2,537,013
2,535,000 0.10 U.S. Treasury Note, Floating Rate Note, 10/31/16 (d) 2,536,199
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 19
Schedule of Investments | 8/31/15 (continued)
-------------------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- (continued)
2,535,000 0.12 U.S. Treasury Note, Floating Rate Note, 4/30/16 (d) $ 2,535,897
2,535,000 0.12 U.S. Treasury Note, Floating Rate Note, 4/30/17 (d) 2,536,502
2,535,000 0.12 U.S. Treasury Note, Floating Rate Note, 7/31/16 2,536,262
-------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $30,841,793) $ 30,847,249
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Number of Expiration
Contracts Description Counterparty Strike Price Date
-------------------------------------------------------------------------------------------------------------
PUT OPTIONS PURCHASED -- 1.2%
96 S&P500 EMINI Citibank NA $1,670 12/18/15 $ 131,520
96 S&P500 EMINI Citibank NA $1,985 12/18/15 484,800
---------------
$ 616,320
-------------------------------------------------------------------------------------------------------------
TOTAL OPTIONS PURCHASED
(Premiums paid $295,713) $ 616,320
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Principal
Amount ($)
-------------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 21.4%
Commercial Papers -- 9.8%
2,550,000 BNP Paribas, Discount Note, 9/1/15 $ 2,549,993
2,550,000 Societe Generale North America, Inc., Discount
Note, 9/1/15 2,550,001
---------------
$ 5,099,994
-------------------------------------------------------------------------------------------------------------
Repurchase Agreement -- 11.6%
6,000,000 $6,000,000 RBC Capital Markets LLC, 0.13%,
dated 8/31/15 plus accrued interest on 9/1/15
collateralized by the following:
$3,131,884 Government National Mortgage
Association II, 3.0% - 4.0%, 11/20/43 - 8/20/45
$8,049 Freddie Mac Giant, 4.0%, 6/1/42 - 7/1/45
$616,483 Federal Home Loan Mortgage Corp.,
2.229% - 3.673%, 9/1/40 - 5/1/45
$421,960 Federal National Mortgage Association
(ARM), 2.513% - 4.866%, 9/1/33 - 6/1/45
$1,941,624 Federal National Mortgage Association,
2.5% - 4.0%, 2/1/26 - 8/1/45 $ 6,000,000
-------------------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $11,100,000) $ 11,099,994
-------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 102.5%
(Cost $52,909,250) (a) $ 53,156,251
-------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
-------------------------------------------------------------------------------------------------------------
Number of Expiration
Contracts Description Counterparty Strike Price Date Value
-------------------------------------------------------------------------------------------------------------
PUT OPTIONS WRITTEN -- (1.0)%
(96) S&P500 EMINI Citibank NA $1,775 12/18/15 $ (203,040)
(96) S&P500 EMINI Citibank NA $1,880 12/18/15 (312,000)
---------------
TOTAL PUT OPTIONS WRITTEN
(Premiums received $237,087) $ (515,040)
-------------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- (1.5)% $ (760,091)
-------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 51,881,120
=============================================================================================================
(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, 2015, the value of these securities
amounted to $5,856,911 or 11.3% of total net assets.
(Cat Bond) Catastrophe or Event Linked Bond. At August 31, 2015, the value of
these securities amounted to $753,100, or 1.5% of total net assets.
See Notes to Financial Statements -- Note 1I.
(Perpetual) Security with no stated maturity date.
(Step) Bond issued with an initial coupon rate which converts to a higher
rate at a later date.
REMICS Real Estate Mortgage Investment Conduits.
(a) At August 31, 2015, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $52,914,895 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 352,377
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (111,021)
---------------
Net unrealized appreciation $ 241,356
===============
(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) A portion of this security has been pledged as collateral for swaps
contracts.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
INR Indian Rupee
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2015 were as follows:
-------------------------------------------------------------------------------------------------
Purchases Sales
-------------------------------------------------------------------------------------------------
Long-Term U.S. Government $10,492,375 $ 100,008
Other Long-Term Securities $24,309,320 $ 28,553,504
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 21
Schedule of Investments | 8/31/15 (continued)
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
-------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
-------------------------------------------------------------------------------------------------------------------
(2,915,000) Chicago Markit CDX North 1.00% 6/20/20 $ (28,400) $(24,120)
Mercantile America Investment
Exchange Grade Index
(1,483,500) Chicago Markit CDX North 5.00% 12/20/16 (88,419) 11,376
Mercantile America High
Exchange Yield Index
(3,925,350) Chicago Markit CDX North 5.00% 6/20/20 (191,691) (22,899)
Mercantile America High
Exchange Yield Index
EUR (1,375,000) Intercontinental Markit iTraxx Europe 5.00% 6/20/19 (200,148) 20,439
Exchange Consumer Index
$(508,658) $(15,204)
===================================================================================================================
CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
-------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
-------------------------------------------------------------------------------------------------------------------
(187,500) Barclays Morgan Stanley 1.00% 9/20/20 $ (1,573) $ 397
Bank Plc
(734,400) Citibank NA Markit CDX North 5.00% 12/20/18 (145,411) 30,101
America High
Yield Index
(525,000) Goldman Sachs Domtar Corp. 1.00% 9/20/20 13,146 1,437
International
(335,200) Goldman Sachs MBIA, Inc. 5.00% 9/20/20 93,018 1,720
International
EUR (1,450,000) Goldman Sachs Norske 5.00% 9/20/17 779,624 (957)
International Skogindustrier ASA
(187,500) JPMorgan Bank of America 1.00% 9/20/20 (2,792) 759
Chase Bank NA Corp.
(550,000) JPMorgan Best Buy Co., Inc. 5.00% 9/20/20 (69,352) (15,398)
Chase Bank NA
(187,500) JPMorgan Citigroup, Inc. 1.00% 9/20/20 (1,853) 720
Chase Bank NA
EUR (210,000) JPMorgan Credit Agricole SA 1.00% 9/20/20 (2,752) (318)
Chase Bank NA
EUR (225,000) JPMorgan ING Bank NV 1.00% 9/20/20 (3,728) (605)
Chase Bank NA
-------------------------------------------------------------------------------------------------------------------
$ 658,327 $ 17,856
===================================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
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)
---------------------------------------------------------------------------------------------------------------------------------
EUR 825,000 Barclays Bank Abengoa SA 5.00% B+ 12/20/16 $ (67,830) $ (215,046)
Plc
150,000 Barclays Bank Ally Financial, Inc. 5.00% BB+ 9/20/20 23,155 785
Plc
600,000 Barclays Bank Apache Corp. 1.00% BBB+ 9/20/20 (16,959) 1,475
Plc
450,000 Barclays Bank Apache Corp. 1.00% BBB+ 9/20/20 (9,989) (1,624)
Plc
800,000 Barclays Bank Devon Energy 1.00% BBB+ 9/20/20 (31,376) 13,009
Plc Corp.
520,000 Barclays Bank Frontier 5.00% BB- 9/20/20 (5,248) (1,351)
Plc Communications
Corp.
540,000 Barclays Bank Mcclatchy Co. 5.00% CCC 6/20/16 -- 3,733
Plc
EUR 250,000 Barclays Bank Norske 5.00% CCC- 12/20/15 (52,243) 34,398
Plc Skogindustrier ASA
485,000 Barclays Bank Toys R Us, Inc. 5.00% CCC 3/20/16 (2,425) (11,590)
Plc
500,000 Citibank NA Energy Transfer 1.00% BBB- 9/20/20 (13,628) (3,858)
Partners LP
550,000 Citibank NA Energy Transfer 1.00% BBB- 9/20/20 (17,509) (1,725)
Partners LP
550,000 Citibank NA Kinder Morgan, 1.00% BBB- 9/20/20 (20,497) (8,070)
Inc.
645,000 Citibank NA Markit CDX 5.00% BBB+ 12/20/17 (31,605) (26,415)
North America
Investment
Grade Index
EUR 1,250,000 Citibank NA Markit iTraxx 1.00% A- 6/20/19 (108,271) 64,448
Europe Index
250,000 Citibank NA Parker Drilling Co. 5.00% B+ 9/20/20 (16,875) (9,070)
300,000 Citibank NA Parker Drilling Co. 5.00% B+ 9/20/20 (30,000) (1,134)
1,080,000 Goldman Sachs AK Steel Corp. 5.00% B- 12/20/16 (27,000) 67
International
525,000 Goldman Sachs Ally Financial, Inc. 5.00% BB+ 9/20/20 80,424 3,364
International
300,000 Goldman Sachs Claire's Stores 5.00% CC 12/20/15 (12,000) (2,012)
International Inc.
525,000 Goldman Sachs iHeart 5.00% CCC- 12/20/15 (14,437) 13,052
International Communications
825,000 Goldman Sachs iHeart 5.00% CCC- 12/20/16 (45,375) (64,923)
International Communications
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 23
Schedule of Investments | 8/31/15 (continued)
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)
---------------------------------------------------------------------------------------------------------------------------------
525,000 Goldman Sachs Frontier 5.00% BB- 9/20/20 $ (9,104) $ 2,441
International Communications
Corp.
335,200 Goldman Sachs MBIA, Inc. 5.00% A- 12/20/16 (38,548) (4,676)
International
EUR 225,000 Goldman Sachs Norske 5.00% CCC- 3/20/16 (4,933) (36,650)
International Skogindustrier ASA
EUR 1,450,000 Goldman Sachs Norske 5.00% CCC- 9/20/20 (1,153,194) (349)
International Skogindustrier ASA
140,000 Goldman Sachs Peabody Energy 5.00% B- 3/20/16 (10,500) (5,994)
International Corp.
525,000 Goldman Sachs Sears Roebuck 5.00% B 12/20/15 (21,000) 25,076
International Acceptance Corp.
300,000 Goldman Sachs Toys R Us, Inc. 5.00% CCC 12/20/15 (10,500) 8,575
International
EUR 400,000 JPMorgan Abengoa SA 5.00% B+ 12/20/15 (31,981) 4,624
Chase Bank
NA
500,000 JPMorgan Diamond 1.00% NR 9/20/20 (48,109) (10,647)
Chase Bank Offshore Drill
NA
550,000 JPMorgan Diamond 1.00% BBB+ 9/20/20 (71,284) 6,653
Chase Bank Offshore Drilling,
NA Inc.
500,000 JPMorgan Kinder Morgan, 1.00% BBB- 9/20/20 (21,839) (4,131)
Chase Bank Inc.
NA
500,000 JPMorgan Nabors 1.00% BBB 9/20/20 (36,630) (14,106)
Chase Bank Industries, Inc.
NA
550,000 JPMorgan Nabors 1.00% BBB 9/20/20 (49,890) (5,919)
Chase Bank Industries, Inc.
NA
500,000 JPMorgan Noble Holding 1.00% BBB 9/20/20 (54,147) (25,801)
Chase Bank International, Ltd.
NA
EUR 250,000 JPMorgan Norske 5.00% CCC- 12/20/15 (50,506) 32,661
Chase Bank Skogindustrier ASA
NA
500,000 JPMorgan Weatherford 1.00% BBB- 9/20/20 (36,630) (39,143)
Chase Bank International, Ltd.
NA
The accompanying notes are an integral part of these financial statements.
24 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
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)
---------------------------------------------------------------------------------------------------------------------------------
550,000 JPMorgan Weatherford 1.00% BBB- 9/20/20 $ (68,188) $ (15,162)
Chase Bank International, Ltd.
NA
525,000 Morgan JC Penney 5.00% CCC- 12/20/16 (15,750) 38,136
Stanley Capital Corp., Inc.
Services LLC
400,000 Morgan Markit CDX 5.00% BBB+ 12/20/17 (14,500) (21,482)
Stanley Capital North America
Services LLC Investment
Grade Index
250,000 Morgan MBIA, Inc. 5.00% A- 12/20/15 (3,125) 2,432
Stanley Capital
Services LLC
250,000 Morgan MBIA, Inc. 5.00% A- 12/20/15 (13,750) 13,057
Stanley Capital
Services LLC
820,000 Morgan Sears Roebuck 5.00% B 12/20/16 (22,550) 3,699
Stanley Capital Acceptance Corp.
Services LLC
---------------------------------------------------------------------------------------------------------------------------------
$(2,206,346) $(259,193)
=================================================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer or weighted average of all
the underlying securities of the index.
NR Not rated by either S&P.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 25
Schedule of Investments | 8/31/15 (continued)
INTEREST RATE SWAP AGREEMENTS
---------------------------------------------------------------------------------------------------------------------------------
Annual Premiums Net
Notional Pay / Floating Fixed Expiration Paid Unrealized
Principal ($) Counterparty Receive Rate Rate Date (Received) Depreciation
---------------------------------------------------------------------------------------------------------------------------------
(442,126) J.P. Morgan Receive LIBOR USD 1.810% 8/7/19 $2 $ (7,194)
Chase Bank 3 Month
NA
(850,473) J.P. Morgan Receive LIBOR USD 2.200% 5/6/25 7 (3,578)
Chase Bank 3 Month
NA
---------------------------------------------------------------------------------------------------------------------------------
$9 $ (10,772)
=================================================================================================================================
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 following is a summary of the inputs used as of August 31, 2015, in valuing
the Fund's assets:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Preferred Stocks $ 277,600 $ -- $ -- $ 277,600
Asset Backed Securities -- 1,475,288 -- 1,475,288
Collateralized Mortgage
Obligations -- 4,889,525 -- 4,889,525
Corporate Bonds -- 3,950,275 -- 3,950,275
U.S. Government and
Agency Obligations -- 30,847,249 -- 30,847,249
Put Options Purchased 616,320 -- -- 616,320
Commercial Papers 5,099,994 -- 5,099,994
Repurchase Agreement -- 6,000,000 -- 6,000,000
--------------------------------------------------------------------------------
Total $ 893,920 $52,262,331 $ -- $53,156,251
================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Other Financial Instruments
Unrealized Depreciation on
Credit Default Swaps $ -- $ (256,541) $ -- $ (256,541)
Unrealized Depreciation on
Interest Rate Swaps -- (10,772) -- (10,772)
Written Options (515,040) -- -- (515,040)
Unrealized Depreciation on
Futures Contracts (547) -- -- (547)
Unrealized Appreciation on
Forward Foreign
Currency Contracts -- 72,079 -- 72,079
Unrealized Depreciation on
Forward Foreign
Currency Contracts -- (63,816) -- (63,816)
--------------------------------------------------------------------------------
Total Other
Financial Instruments $ (515,587) $ (259,050) $ -- $ (774,637)
================================================================================
During the year ended August 31, 2015, there were no transfers between Levels 1,
2 and 3.
The following is a summary of the fair valuation of certain Fund's assets as of
August 31, 2015:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Assets:
Foreign currencies, at value $ -- $ 35,341 $ -- $ 35,341
Centrally cleared swap collateral -- 517,984 -- 517,984
Variation margin for futures
contracts 152 -- -- 152
Variation margin for centrally
cleared swap contracts -- 8,560 -- 8,560
--------------------------------------------------------------------------------
Total $ 152 $561,885 $ -- $562,037
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 27
Statement of Assets and Liabilities | 8/31/15
ASSETS:
Investment in securities (cost $46,909,250) $47,156,251
Repurchase agreements (cost $6,000,000) 6,000,000
-------------------------------------------------------------------------------------
Total investment in securities (cost $52,909,250) 53,156,251
Cash 2,617,561
Foreign currencies, at value (cost $35,212) 35,341
Centrally cleared swap collateral 517,984
Receivables --
Investment securities sold 194,293
Swap payments 687,283
Interest 76,781
Due from Pioneer Investment Management, Inc. 50,214
Variation margin for futures contracts 152
Variation margin for centrally cleared swap contracts 8,560
Net unrealized appreciation on forward foreign currency contracts 72,079
Other assets 61,628
-------------------------------------------------------------------------------------
Total assets $57,478,127
=====================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 2,549,928
Fund shares repurchased 10,134
Trustee fees 1,191
Net unrealized depreciation on forward foreign currency contracts 63,816
Net unrealized depreciation on swap contracts 267,313
Net unrealized depreciation on futures contracts 547
Swap contracts, net premiums received 2,056,668
Written options (premiums received $237,087) 515,040
Due to affiliates 50,450
Accrued expenses 81,920
-------------------------------------------------------------------------------------
Total liabilities $ 5,597,007
=====================================================================================
NET ASSETS:
Paid-in capital $52,397,551
Undistributed of net investment income 677,498
Accumulated net realized loss on investments, futures contracts,
written options, swap contracts, and foreign currency transactions (907,056)
Net unrealized appreciation on investments 247,001
Net unrealized depreciation on futures contracts (547)
Net unrealized depreciation on written options (277,953)
Net unrealized depreciation on swap contracts (267,313)
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 11,939
-------------------------------------------------------------------------------------
Total net assets $51,881,120
=====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $13,075,779/1,314,809 shares) $ 9.95
Class C (based on $9,605,675/973,712 shares) $ 9.87
Class Y (based on $29,199,666/2,930,222 shares) $ 9.97
MAXIMUM OFFERING PRICE:
Class A ($9.95 / 95.5%) $ 10.42
=====================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
Statement of Operations
For the Year Ended 8/31/15
INVESTMENT INCOME:
Dividends $ 122,876
Interest 384,583
------------------------------------------------------------------------------------------
Total investment income $ 507,459
------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 330,714
Distribution fees
Class A 25,401
Class C 88,312
Transfer Agent fees
Class A 823
Class C 415
Class Y 320
Shareholder communications expense 2,626
Administrative reimbursement 25,615
Custodian fees 51,464
Registration fees 59,242
Professional fees 92,621
Printing fees 40,270
Pricing fees 19,308
Fees and expenses of nonaffiliated Trustees 6,614
Miscellaneous 16,642
------------------------------------------------------------------------------------------
Total expenses $ 760,387
------------------------------------------------------------------------------------------
Less fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (237,219)
------------------------------------------------------------------------------------------
Net expenses $ 523,168
------------------------------------------------------------------------------------------
Net investment loss $ (15,709)
------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS, WRITTEN OPTIONS,
SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (1,490,510)
Futures contracts (322,703)
Written options 173,103
Swap contracts 232,074
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 2,110,907 $ 702,871
------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 188,323
Futures contracts 52,017
Written options (315,996)
Swap contracts (236,186)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (504,620) $ (816,462)
------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments, futures contracts,
written options, swap contracts, and foreign
currency transactions $ (113,591)
------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (129,300)
==========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 29
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------------
Year Ended 12/30/13 (a)
8/31/15 to 8/31/14
-------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ (15,709) $ (74,108)
Net realized gain (loss) on investments, futures contracts, written
options, swap contracts, and foreign currency transactions 702,871 (351,336)
Change in net unrealized appreciation (depreciation) on
investments, futures contracts, swap
contracts, and foreign currency transactions (816,462) 529,589
-------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (129,300) $ 104,145
-------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.21 and $0.00 per share, respectively) $ (183,685) $ --
Class C ($0.16 and $0.00 per share, respectively) (139,321) --
Class Y ($0.23 and $0.00 per share, respectively) (194,215) --
-------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (517,221) $ --
-------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS: (b)(c)
Net proceeds from sale of shares $28,019,541 $ 25,393,752
Reinvestment of distributions 517,221 --
Cost of shares repurchased (1,507,006) (12)
-------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $27,029,756 $ 25,393,740
-------------------------------------------------------------------------------------------------
Net increase in net assets $26,383,235 $ 25,497,885
NET ASSETS:
Beginning of year $25,497,885 $ --
-------------------------------------------------------------------------------------------------
End of year $51,881,120 $ 25,497,885
-------------------------------------------------------------------------------------------------
Undistributed (distributions in excess) of net investment income $ 677,498 $ (15,210)
-------------------------------------------------------------------------------------------------
(a) Class A, Class C and Class Y shares commenced operations on December 30,
2013.
(b) At August 31, 2015, PIM owned 48.9% of the value of the outstanding shares
of Pioneer Long/Short Bond Fund.
(c) At August 31, 2015, Pioneer Asset Allocation Trust owned 35.0% of the value
of outstanding shares of Pioneer Long/Short Bond Fund.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
-------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
8/31/15 8/31/15 8/31/14 8/31/14
Shares Amount Shares Amount
-------------------------------------------------------------------------------------
Class A*
Shares sold 572,122 $ 5,771,154 855,960 $8,559,806
Reinvestment of distributions 18,675 183,683 -- --
Less shares repurchased (131,947) (1,316,466) (1) (12)
-------------------------------------------------------------------------------------
Net increase 458,850 $ 4,638,371 855,959 $8,559,794
=====================================================================================
Class C*
Shares sold 131,285 $ 1,318,030 839,743 $8,397,613
Reinvestment of distributions 14,202 139,323 -- --
Less shares repurchased (11,518) (113,947) -- --
-------------------------------------------------------------------------------------
Net increase 133,969 $ 1,343,406 839,743 $8,397,613
=====================================================================================
Class Y*
Shares sold 2,074,561 $20,930,357 843,613 $8,436,333
Reinvestment of distributions 19,737 194,215 -- --
Less shares repurchased (7,689) (76,593) -- --
-------------------------------------------------------------------------------------
Net increase 2,086,609 $21,047,979 843,613 $8,436,333
=====================================================================================
* Class A, Class C and Class Y shares commenced operations on December 30,
2013.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 31
Financial Highlights
----------------------------------------------------------------------------------------
Year Ended 12/30/13
8/31/15 to 8/31/14
----------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.05 $ 10.00
----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.08 $ (0.02)
Net realized and unrealized gain (loss) on investments 0.03 0.07
----------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.11 $ 0.05
----------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.21) $ --
----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.10) $ 0.05
----------------------------------------------------------------------------------------
Net asset value, end of period $ 9.95 $ 10.05
========================================================================================
Total return* 1.14% 0.50%***
Ratio of net expenses to average net assets 1.55% 1.55%**
Ratio of net investment income (loss) to average net assets 0.12% (0.27)%**
Portfolio turnover rate 176% 65%**
Net assets, end of period (in thousands) $13,076 $ 8,604
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 2.31% 2.74%**
Net investment income (loss) to average net assets (0.64)% (1.46)%**
========================================================================================
* 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.
32 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
----------------------------------------------------------------------------------------
Year Ended 12/30/13
8/31/15 to 8/31/14
----------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.00 $ 10.00
----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.02) $ (0.07)
Net realized and unrealized gain (loss) on investments 0.05 0.07
----------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.03 $ --
----------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.16) $ --
----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.13) $ --
----------------------------------------------------------------------------------------
Net asset value, end of period $ 9.87 $ 10.00
========================================================================================
Total return* 0.34% 0.00%***
Ratio of net expenses to average net assets 2.30% 2.30%**
Ratio of net investment income (loss) to average net assets (0.51)% (1.03)%**
Portfolio turnover rate 176% 65%**
Net assets, end of period (in thousands) $ 9,606 $ 8,399
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 3.06% 3.48%**
Net investment income (loss) to average net assets (1.27)% (2.21)%**
========================================================================================
* 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 Long/Short Bond Fund | Annual Report | 8/31/15 33
Financial Highlights (continued)
----------------------------------------------------------------------------------------
Year Ended 12/30/13
8/31/15 to 8/31/14
----------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.07 $ 10.00
----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.15 $ (0.00)(a)
Net realized and unrealized gain (loss) on investments (0.02) 0.07
----------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.13 $ 0.07
----------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.23) $ --
----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.10) $ 0.07
----------------------------------------------------------------------------------------
Net asset value, end of period $ 9.97 $ 10.07
========================================================================================
Total return* 1.32% 0.70%***
Ratio of net expenses to average net assets 1.30% 1.30%**
Ratio of net investment income (loss) to average net assets 0.14% (0.02)%**
Portfolio turnover rate 176% 65%**
Net assets, end of period (in thousands) $29,200 $ 8,494
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 2.04% 2.48%**
Net investment income (loss) to average net assets (0.60)% (1.20)%**
========================================================================================
* 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.
(a) Amount rounds to less than $0.01 or $(0.01) per share.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
Notes to Financial Statements | 8/31/15
1. Organization and Significant Accounting Policies
Pioneer Long/Short Bond Fund, (formerly, 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 commenced operations on
December 30, 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:
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 35
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 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. 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. Event-linked bonds are valued at the bid price obtained from an
independent third party pricing service. Other insurance-linked securities
may be valued at the bid price obtained from an independent pricing
service, or through a third party using a pricing matrix, insurance
industry valuation models, or other fair value methods or techniques to
provide an estimated value of the instrument. Equity securities that have
traded on an exchange are valued 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. Shares of money market mutual funds are valued at such funds'
net asset value. Cash may include overnight time deposits at approved
financial institutions.
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.
36 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
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, 2015, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services or broker-dealers or using a third party insurance industry
pricing model).
B. Investment Income and Transactions
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are
accreted/amortized for financial reporting purposes over the life of the
respective securities, and such accretion/amortization is included in
interest income.
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.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 37
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.
D. 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. 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 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 year ended August 31, 2015 was
$(7,109,548).
At August 31, 2015, open futures contracts were as follows:
---------------------------------------------------------------------------
Number of
Contracts Settlement Unrealized
Type Long/(Short) Month/Year Value Depreciation
---------------------------------------------------------------------------
U.S. 5 Year Note (1) 9/15 $(119,812) $(547)
---------------------------------------------------------------------------
Total $(119,812) $(547)
===========================================================================
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
is recorded in
38 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
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).
F. 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, 2015, 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, 2015, the Fund reclassified $1,225,638 to increase
undistributed net investment income and $1,225,638 to decrease accumulated
net realized gain on investments to reflect permanent book/tax differences.
These adjustments have no impact on net assets or the results of
operations.
At August 31, 2015, the Fund was permitted to carry forward indefinitely
$134,106 of long-term losses and $730,842 of short-term losses under the
Regulated Investment Company Modernization Act of 2010 without limitation.
The tax character of distributions paid during the fiscal years ended
August 31, 2015 was as follows:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $517,221
---------------------------------------------------------------------------
Total $517,221
===========================================================================
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 39
The following shows the components of distributable earnings (losses) on a
federal income tax basis at August 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 797,526
Capital loss carryforward (864,948)
Unrealized depreciation (449,009)
---------------------------------------------------------------------------
Total $(516,431)
===========================================================================
The difference between book-basis and tax-basis net unrealized depreciation
is attributable to the tax deferral of losses on wash sales, adjustments
relating to catastrophe bonds, the mark to market of forwards, swaps,
options and future contracts.
G. 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 $56 in underwriting commissions on the sale of Class A
shares during the year ended August 31, 2015.
H. 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.
I. 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
40 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
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.
The Fund invests in event-linked bonds. Event-linked bonds are floating
rate debt obligations for which the return of principal and the payment of
interest are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude. The
trigger event's magnitude may be based on losses to a company or industry,
industry indexes or readings of scientific instruments, or may be based on
specified actual losses. If a trigger event, as defined within the terms of
an event-linked bond occurs, the Fund may lose a portion or all of its
accrued interest and/or principal invested in such event-linked bond. The
Fund is entitled to receive principal and interest payments so long as no
trigger event occurs of the description and magnitude specified by the
instrument. In addition to the specified trigger events, event-linked bonds
may expose the Fund to other risks, including but not limited to issuer
(credit) default, adverse regulatory or jurisdictional interpretations and
adverse tax consequences.
In addition to event-linked bonds, the Fund also may invest in other
insurance-linked securities ("ILS"). The Fund's investments in ILS may
include special purpose vehicles ("SPVs") or similar instruments structured
to comprise a portion of a reinsurer's catastrophe-oriented business, known
as quota share instruments (sometimes referred to as reinsurance sidecars),
or to provide reinsurance relating to specific risks to insurance or
reinsurance companies through a collateralized instrument, known as
collateralized reinsurance. Structured reinsurance investments also may
include industry loss warranties ("ILWs"), are subject to the same risks as
event-linked bonds. In addition, because quota share instruments represent
an interest in a basket of underlying reinsurance contracts, the Fund has
limited transparency into the individual underlying contracts and therefore
must rely upon the risk assessment and sound underwriting practices of the
issuer. Accordingly, it may be more difficult for PIM to fully evaluate the
underlying risk profile of the Fund's investment in quota share instruments
and therefore place the Fund's assets at greater risk of loss than if PIM
had more complete information. These securities may be difficult to
purchase, sell or unwind and may be difficult to value.
J. 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 a swaption, an amount equal to the premium received by
the Fund is
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 41
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 Fund did not hold any written
swaption contracts at August 31, 2015.
The average value of written swaption contracts open during the year ended
August 31, 2015 was $110.
Transactions in written swaptions for the year ended August 31, 2015 are
summarized as follows:
---------------------------------------------------------------------------
Premiums
Number of Received/
Contracts Paid
---------------------------------------------------------------------------
Options outstanding at beginning of period (2,500,000) $ (38,750)
Options opened (5,270,000) (26,087)
Options exercised -- --
Options closed -- --
Options expired 7,770,000 64,837
---------------------------------------------------------------------------
Options outstanding at end of period -- $ --
===========================================================================
K. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price,
upon the exercise of the option. When the Fund writes an option, an amount
equal to the premium received by the Fund is recorded as 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
42 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
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 options contracts open during the year ended
August 31, 2015 was $(90,744). 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 two written put option contracts that were open at August 31,
2015. If the put options were exercised at August 31, 2015, the maximum
amount the Fund would have been required to pay was $237,087.
---------------------------------------------------------------------------
Number of Premiums
Contracts Received
---------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options opened (972) (439,086)
Options exercised -- --
Options closed 364 140,931
Options expired 416 61,068
---------------------------------------------------------------------------
Options outstanding at end of period (192) $(237,087)
===========================================================================
L. Options Purchased
The Fund may purchase put and call options in order to seek to increase
total return. Purchased call and put options entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time. Upon the purchase of a call or put option, the
premium paid by the Fund is included in the Statement of Assets and
Liabilities as an investment. All premiums are marked-to-market daily, and
any unrealized appreciation or depreciation are recorded in the Fund's
financial statements. As the purchaser of an index option, the Fund has the
right to receive a cash payment equal to any depreciation in the value of
the index below the strike price of the option (in the case of a put) or
equal to any appreciation in the value of the index over the strike price
of the option (in the case of a call) as of the valuation date of the
option. Premiums paid for purchased 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.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 43
The average value of purchased options contracts open during the year ended
August 31, 2015 was $108,524. Purchased option contracts outstanding at
period end are listed within the Fund's schedule of investments.
M. Credit Default Swaps
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may sell
or buy credit default swap contracts to seek to increase the Fund's income,
or to attempt to hedge the risk of default on portfolio securities. A
credit default swap index is used to hedge risk or take a position on a
basket of credit entities or indices. As a seller of protection, the Fund
would be required to pay the notional (or other agreed-upon) value of the
referenced debt obligation to the counterparty in the event of a default by
a U.S. or foreign corporate issuer of a debt obligation, which would likely
result in a loss to the Fund. In return, the Fund would receive from the
counterparty a periodic stream of payments during the term of the contract
provided that no event of default occurred. The maximum exposure of loss to
the seller would be the notional value of the credit default swaps
outstanding. If no default occurs, the Fund would keep the stream of
payments and would have no payment obligation. The Fund may also buy credit
default swap contracts in order to hedge against the risk of default of
debt securities, in which case the Fund would function as the counterparty
referenced above.
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.
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.
44 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as variation margin on
centrally cleared swaps on the Statement of Assets and Liabilities.
Open credit default swap contracts at August 31, 2015 are listed in the
Schedule of Investments. The average value of credit default swap contracts
open during the year ended August 31, 2015 was $(896,510).
N. 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, 2015 are listed in the
Schedule of Investments. The average value of interest swap contracts open
during the year ended August 31, 2015 was $(67,614).
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 45
O. 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 year ended
August 31, 2015, 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, 2016. Fees waived and
expenses reimbursed during the year ended August 31, 2015 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
$49,576 in management fees, administrative costs and certain other
reimbursements payable to PIM at August 31, 2015.
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, 2015, such out-of-pocket expenses by class of shares
were as follows:
46 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $1,555
Class C 662
Class Y 409
--------------------------------------------------------------------------------
Total $2,626
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $(532) in transfer agent fees and out-of-pocket reimbursements
payable from PIMSS at August 31, 2015.
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 $1,406 in distribution fees payable to
PFD at August 31, 2015.
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
year ended August 31, 2015, there were no CDSCs paid to PFD.
5. Forward Foreign Currency Contracts
At August 31, 2015, 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, 2015 was $(10,526,132).
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 47
Open forward foreign currency contracts at August 31, 2015 were as follows:
-------------------------------------------------------------------------------------------
Net
Currency Quantity Currency Quantity Settlement Unrealized
Purchased Purchased Sold Sold Counterparty Date Appreciation
-------------------------------------------------------------------------------------------
Brown Brothers
EURO 689,280 USD 772,214 Harriman & Co. 9/16/15 $ 2,139
EURO 219,712 USD 239,785 Citibank NA 9/16/15 7,044
USD 354,680 EURO 311,042 Citibank NA 10/19/15 5,062
USD 328,048 HUF 91,138,228 Citibank NA 11/25/15 1,802
USD 353,582 KRW 411,760,920 Citibank NA 10/26/15 5,870
USD 402,600 SGD 551,162 Citibank NA 10/26/15 12,590
USD 139,147 ZAR 1,828,142 Citibank NA 11/25/15 3,306
JPMorgan
MXN 2,697,746 USD 158,665 Chase Bank NA 11/25/15 1,760
JPMorgan
RUB 9,699,338 USD 149,994 Chase Bank NA 10/26/15 1,131
JPMorgan
USD 162,584 AUD 222,216 Chase Bank NA 11/25/15 5,002
JPMorgan
USD 238,612 CAD 312,122 Chase Bank NA 11/24/15 1,712
JPMorgan
USD 330,836 CHF 314,711 Chase Bank NA 11/25/15 4,078
JPMorgan
USD 422,359 EURO 370,794 Chase Bank NA 11/25/15 5,310
JPMorgan
USD 137,958 KRW 160,175,000 Chase Bank NA 10/26/15 2,697
JPMorgan
USD 242,416 NZD 364,918 Chase Bank NA 11/25/15 12,576
-------------------------------------------------------------------------------------------
$72,079
===========================================================================================
48 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
---------------------------------------------------------------------------------------------
Net
Currency Quantity Currency Quantity Settlement Unrealized
Purchased Purchased Sold Sold Counterparty Date Depreciation
---------------------------------------------------------------------------------------------
Brown Brothers
EURO 310,927 USD 349,887 Harriman & Co. 10/19/15 $ (398)
MXN 1,090,181 CAD 87,924 Citibank NA 10/26/15 (1,767)
PLN 1,253,293 EURO 295,488 Citibank NA 11/25/15 (899)
USD 403,223 CZK 9,953,193 Citibank NA 10/26/15 (10,840)
JP Morgan
USD 144,148 RUB 9,557,021 Chase Bank NA 10/26/15 (4,759)
JPMorgan
IDR 2,227,922,154 USD 162,052 Chase Bank NA 10/26/15 (5,542)
JPMorgan
INR 10,666,585 USD 165,196 Chase Bank NA 10/26/15 (6,027)
JPMorgan
MXN 5,399,167 CAD 437,275 Chase Bank NA 10/26/15 (10,138)
JPMorgan
MXN 154,250 MXN 2,653,028 Chase Bank NA 11/25/15 (3,516)
JPMorgan
PLN 615,663 CZK 3,920,693 Chase Bank NA 11/25/15 (408)
JPMorgan
USD 36,072 EURO 32,359 Chase Bank NA 10/19/15 (301)
JPMorgan
USD 583,461 JPY 71,367,188 Chase Bank NA 11/25/15 (6,295)
JPMorgan
USD 419,798 SEK 3,609,912 Chase Bank NA 10/26/15 (8,447)
JPMorgan
USD 469,950 TWD 15,402,146 Chase Bank NA 11/25/15 (4,479)
---------------------------------------------------------------------------------------------
$ (63,816)
=============================================================================================
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 year ended August 31, 2015, the Fund's expenses were
not reduced under such arrangements.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 49
7. Assets and Liabilities Offsetting
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the trading
of certain OTC derivatives and typically contains, among other things, close-out
and set-off provisions which apply upon the occurrence of event of a default
and/or termination event as defined under the relevant ISDA Master Agreement.
The ISDA Master Agreement may also give a party the right to terminate all
transactions traded under such agreement if, among other things, there is
deterioration in the credit quality of the other party. Upon an event of default
or a termination of the ISDA Master Agreement, the non-defaulting party has the
right to close out all transactions under such agreement and to net amounts owed
under each transaction to determine one net amount payable by one party to the
other. The right to close out and net payments across all transactions under the
ISDA Master Agreement could result in a reduction of the Fund's credit risk to
its counterparty equal to any amounts payable by the Fund under the applicable
transactions, if any. However, the Fund's right to setoff may be restricted or
prohibited by the bankruptcy or insolvency laws of the particular jurisdiction
to which a specific ISDA counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collateral pledged for the benefit of the Fund and/or
counterparty is held in segregated accounts by the Fund's custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Fund's collateral obligations, if any, will be
reported separately in the Statement of Assets and Liabilities as "Futures
collateral", "Swap Collateral" or "Deposit with broker." Securities pledged by
the Fund as collateral, if any, are identified as such in the Schedule of
Investments.
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Fund
as of August 31, 2015.
50 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
-----------------------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
-----------------------------------------------------------------------------------------------------------
Barclays Bank Plc $ 53,797 $ (53,797) $ -- $ -- $ --
Citibank NA 130,223 (130,223) -- -- --
Goldman Sachs International 55,732 (55,732) -- -- --
JP Morgan Chase Bank NA 79,683 (79,683) -- -- --
Morgan Stanley Capital
Services LLC 57,324 (21,482) -- -- 35,842
-----------------------------------------------------------------------------------------------------------
$376,759 $ (340,917) $ -- $ -- $ 35,842
===========================================================================================================
-----------------------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
-----------------------------------------------------------------------------------------------------------
Barclays Bank Plc $ (229,611) $ 53,797 $175,814 $ -- $ --
Citibank NA (578,818) 130,223 446,151 -- (2,444)
Goldman Sachs International (115,561) 55,732 -- -- (59,829)
JP Morgan Chase Bank NA (191,914) 79,683 112,231 -- --
Morgan Stanley Capital
Services LLC (21,482) 21,482 -- -- --
-----------------------------------------------------------------------------------------------------------
$ (1,137,386) $340,917 $734,196 $ -- $ (62,273)
===========================================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 51
8. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of August 31, 2015 were as follows:
--------------------------------------------------------------------------------------------
Derivatives not
accounted for as Asset Derivatives Liabilities Derivatives
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 $72,079 currency contracts $ 63,816
Futures Contracts Net unrealized Net unrealized
appreciation on depreciation on
futures contracts -- futures contracts 547
Written Option Written option Written option
Contracts contracts -- contracts 515,040
Swap Contracts Net unrealized Net unrealized
appreciation on depreciation on
swap contracts -- swap contracts 267,313
--------------------------------------------------------------------------------------------
Total $72,079 $846,716
============================================================================================
The effect of derivative instruments on the Statement of Operations for the year
ended August 31, 2015 was as follows:
--------------------------------------------------------------------------------------------
Change in
Derivatives not Unrealized
accounted for as Realized Appreciation
hedging instruments Location of Gain Gain or Loss (Depreciation)
under Accounting or (Loss) on on Derivatives on Derivatives
Standards Codification Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
--------------------------------------------------------------------------------------------
Futures Contracts Net realized gain (loss) on
futures contracts $ (322,703)
Futures Contracts Change in unrealized appreciation
(depreciation) on futures contracts $ 52,017
Written Options Net realized gain (loss) on
written swaptions $ 173,103
Written Options Change in unrealized appreciation
(depreciation) on written swaptions $(315,996)
Forward Foreign Net realized gain (loss) on forward
Currency Contracts foreign currency contracts $2,183,590
Forward Foreign Change in unrealized appreciation
Currency Contracts (depreciation) on forward foreign
currency contracts $(514,925)
Swap Contracts Net realized gain (loss) on
swap contracts $ 232,074
Swap Contracts Change in unrealized appreciation
(depreciation) on swap contracts $(236,186)
52 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V and the Shareowners of
Pioneer Long/Short Bond Fund (formerly, Pioneer Long/ Short Global Bond Fund):
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Long/Short Bond Fund (formerly, Pioneer Long/ Short Global Bond Fund), one of
the portfolios constituting Pioneer Series Trust V, including the schedule of
investments, as of August 31, 2015, and the related statement of operations for
the year then ended, and the statement of changes in net assets and the
financial highlights for the year then ended and for the period from 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 audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the 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 audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, 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, 2015, 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 audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Long/Short Bond Fund (formerly, Pioneer Long/ Short Global Bond Fund) as
of August 31, 2015, the results of its operations for the year then ended, and
the changes in its net assets, and the financial highlights for the year then
ended and for the period from 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 28, 2015
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 53
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 27.28%.
The Board of Trustees of the Fund has approved the elimination of the Fund's
current policy normally to invest at least 40% of the net assets in securities
of assets located outside of the United States. In connection with the
elimination of this policy, the Fund was renamed Pioneer Long/Short Bond Fund.
These changes went into effect on June 1, 2015.
PIM, the Fund's investment adviser, is currently an indirect, wholly-owned
subsidiary of UniCredit. On April 23, 2015, UniCredit announced that it signed a
preliminary and exclusive agreement with Banco Santander and affiliates of
Warburg Pincus and General Atlantic (the "Private Equity Firms") with respect to
Pioneer Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as described in the UniCredit announcement, will entail the
establishment of a holding company, with the name Pioneer Investments, to be
owned by UniCredit (50%) and the Private Equity Firms (50% between them). The
holding company will control Pioneer's U.S. operations, including the Adviser.
The holding company also will own 66.7% of Pioneer's and SAM's combined
operations outside the U.S., while Banco Santander will own directly the
remaining 33.3% stake. The completion of the Transaction is subject to the
signing of a definitive agreement, as well as certain regulatory and corporate
approvals, and other conditions.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's investment advisory agreement with the Adviser to terminate. In
connection with the Transaction, the Fund's Board of Trustees will be asked to
approve a new investment advisory agreement for the Fund. If approved by the
Board, the Fund's new investment advisory agreement will be submitted to the
shareholders of the Fund for their approval.
54 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
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
Morgan, Lewis & Bockius 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 51 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 Bond Fund | Annual Report | 8/31/15 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 (64) Trustee since 2013. Private investor (2004-2008 and Director, Broadridge
Chairman of the Board Serves until a successor 2013-present); Chairman (2008-2013) and Financial Solutions, Inc.
and Trustee trustee is elected or earlier Chief Executive Officer (2008-2012), (investor communications
retirement or removal. Quadriserv, Inc. (technology products for and securities processing
securities lending industry); and Senior provider for financial
Executive Vice President, The Bank of New services industry) (2009-
York (financial and securities services) present); Director,
(1986-2004) Quadriserv, Inc.
(2005-2013); and
Commissioner, New Jersey
State Civil Service
Commission (2011-present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Trustee since 2013. Managing Partner, Federal City Capital Director of New York
Trustee Serves until a successor Advisors (corporate advisory services Mortgage Trust
trustee is elected or earlier company) (1997-2004 and 2008-present); (publicly-traded mortgage
retirement or removal. Interim Chief Executive Officer, Oxford REIT) (2004- 2009,
Analytica, Inc. (privately-held research 2012-present); Director
and consulting company) (2010); Executive of The Swiss Helvetia
Vice President and Chief Financial Fund, Inc. (closed-end
Officer, I-trax, Inc. (publicly traded fund) (2010-present);
health care services company) Director of Oxford
(2004-2007); and Executive Vice President Analytica, Inc.
and Chief Financial Officer, Pedestal (2008-present); and
Inc. (internet-based mortgage trading Director of Enterprise
company) (2000-2002); Private consultant Community Investment,
(1995-1997), Managing Director, Lehman Inc. (privately-held
Brothers (investment banking firm) affordable housing
(1992-1995); and Executive, The World finance company)
Bank (1979-1992) (1985-2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (71) Trustee since 2013. William Joseph Maier Professor of Trustee, Mellon
Trustee Serves until a successor Political Economy, Harvard University Institutional Funds
trustee is elected or earlier (1972-present) Investment Trust and
retirement or removal. Mellon Institutional
Funds Master Portfolio
(oversaw 17 portfolios in
fund complex) (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
56 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
------------------------------------------------------------------------------------------------------------------------------------
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 (68) Trustee since 2013. Founding Director, Vice President and None
Trustee Serves until a successor Corporate Secretary, The Winthrop Group,
trustee is elected or earlier Inc. (consulting firm) (1982-present);
retirement or removal. Desautels Faculty of Management, McGill
University (1999-present); and Manager of
Research Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (67) Trustee since 2013. President and Chief Executive Officer, Director of New America
Trustee Serves until a successor Newbury, Piret & Company, Inc. High Income Fund, Inc.
trustee is elected or earlier (investment banking firm) (1981-present) (closed-end investment
retirement or removal. company) (2004-present);
and Member, Board of
Governors, Investment
Company Institute
(2000-2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (68) Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a successor (2012-present); Executive Vice President,
trustee is elected or earlier BNY Mellon (financial and investment
retirement or removal. company services) (1969-2012); Director,
BNY International Financing Corp.
(financial services) (2002-2012); and
Director, Mellon Overseas Investment
Corp. (financial services) (2009-2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 57
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
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 (57)* Trustee since 2014. Director and Executive Vice President None
Trustee Serves until a successor (since 2008) and Chief Investment
trustee is elected or earlier Officer, U.S. (since 2010) of PIM-USA;
retirement or removal. Executive Vice President of Pioneer
(since 2008); Executive Vice President of
Pioneer Institutional Asset Management,
Inc. (since 2009); and 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 Bond Fund | Annual Report | 8/31/15
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine Monchak (59)** Advisory Trustee since 2014. Chief Investment Officer, 1199 SEIU Funds None
Advisory Trustee (healthcare workers union pension funds)
(2001-present); Vice
President-International Investments
Group, American International Group, Inc.
(insurance company) (1993-2001); Vice
President Corporate Finance and Treasury
Group, Citibank, N.A.(1980-1986 and 1990-
1993); Vice President-Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer
of debt securities) (1988-1990); Mortgage
Strategies Group, Shearson Lehman Hutton,
Inc. (investment bank) (1987-1988); and
Mortgage Strategies Group, Drexel Burnham
Lambert, Ltd. (investment bank)
(1986-1987)
------------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak is a non-voting advisory trustee.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 59
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (53) Since 2014. Serves at the Chair, Director, CEO and President of None
President and discretion of the Board. Pioneer Investment Management-USA (since
Chief Executive Officer September 2014); 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); and
Director of Institutional Business, CEO
of International, Eaton Vance Management
(2005-2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (50) Since 2013. Serves at the Vice President and Associate General None
Secretary and Chief discretion of the Board. Counsel of Pioneer since January 2008;
Legal Officer Secretary and Chief Legal Officer of all
of the Pioneer Funds since June 2010;
Assistant Secretary of all of the Pioneer
Funds from September 2003 to May 2010;
and Vice President and Senior Counsel of
Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (54) Since 2013. Serves at the Fund Governance Director of Pioneer since None
Assistant Secretary discretion of the Board. December 2006 and Assistant Secretary of
all the Pioneer 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 (52) Since 2013. Serves at the Senior Counsel of Pioneer since May 2013 None
Assistant Secretary discretion of the Board. and Assistant Secretary of all the
Pioneer Funds since June 2010; and
Counsel of Pioneer from June 2007 to May
2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2013. Serves at the Vice President-Fund Treasury of Pioneer; None
Treasurer and Chief discretion of the Board. Treasurer of all of the Pioneer Funds
Financial since March 2008; Deputy Treasurer of
and Accounting Officer Pioneer from March 2004 to February 2008;
and Assistant Treasurer of all of the
Pioneer Funds from March 2004 to February
2008
------------------------------------------------------------------------------------------------------------------------------------
60 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 2013. Serves at the Director-Fund Treasury of Pioneer; and None
Assistant Treasurer discretion of the Board. Assistant Treasurer of all of the Pioneer
Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (57) Since 2013. Serves at the Fund Accounting Manager-Fund Treasury of None
Assistant Treasurer discretion of the Board. Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2013. Serves at the Fund Administration Manager-Fund Treasury None
Assistant Treasurer discretion of the Board. of Pioneer since November 2008; Assistant
Treasurer of 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 (62) Since 2013. Serves at the Chief Compliance Officer of Pioneer and None
Chief Compliance Officer discretion of the Board. of all the Pioneer Funds since March
2010; Chief Compliance Officer of Pioneer
Institutional Asset Management, Inc.
since January 2012; Chief Compliance
Officer of Vanderbilt Capital Advisors,
LLC since July 2012: Director of Adviser
and Portfolio Compliance at Pioneer since
October 2005; and Senior Compliance
Officer for Columbia Management Advisers,
Inc. from October 2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (44) Since 2013. Serves at the Director-Transfer Agency Compliance of None
Anti-Money Laundering discretion of the Board. Pioneer and Anti-Money Laundering Officer
Officer of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 61
This page for your notes.
62 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
This page for your notes.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 63
This page for your notes.
64 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
This page for your notes.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 65
This page for your notes.
66 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
This page for your notes.
Pioneer Long/Short Bond Fund | Annual Report | 8/31/15 67
This page for your notes.
68 Pioneer Long/Short Bond Fund | Annual Report | 8/31/15
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) 2015 Pioneer Investments 28080-01-1015
Pioneer Long/Short
Opportunistic
Credit Fund
--------------------------------------------------------------------------------
Annual Report | August 31, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A LRCAX
Class C LRCCX
Class Y LRCYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 28
Notes to Financial Statements 35
Report of Independent Registered Public Accounting Firm 52
Trustees, Officers and Service Providers 54
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 1
President's Letter
Dear Shareowner,
In the second half of 2015, two main issues have been dominating the attention
of global investors and policymakers alike, and shaping the current investment
environment: The Federal Reserve System's (the Fed's) deliberations over when to
begin normalizing interest rates in the U.S., and the increasing divergence in
economic activity around the globe. As 2015 began, market expectations were that
the Fed would likely begin raising interest rates by the middle of the year, but
a sluggish gross domestic product report in the first calendar quarter as well
as relatively benign inflation and wage growth contributed to the Fed's taking a
more cautionary approach and delaying the start of its rate-hike cycle. At the
same time, however, the U.S. labor market has continued its robust improvement,
moving the Fed closer to declaring victory on one of its main monetary policy
objectives -- full employment.
Meanwhile, global economic activity has continued to diverge, with developed
economies experiencing above-trend growth and most emerging markets economies
lagging the rest of the world. The slower pace of economic activity in the
emerging markets has been most evident in China, as the country's economy
continues to undergo a long, potentially painful adjustment from investment-led
growth to consumption-oriented growth. This divergence in global economic cycles
is likely to continue for some time, and we would expect an increased level of
volatility as global capital markets and policymakers adjust.
Pioneer Investments believes that investors in today's environment can
potentially benefit from the consistent and disciplined investment approach we
have used since our founding in 1928. We focus on identifying value across
global markets using proprietary research, careful risk management, and a
long-term perspective. Our ongoing goal is to produce compelling returns
consistent with the stated objectives of our investment products, and with our
shareowners' expectations. We believe our shareowners can benefit from the
experience and tenure of our investment teams as well as the insights generated
from our extensive research process.
2 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
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 | 8/31/15 3
Portfolio Management Discussion | 8/31/15
In the following interview, portfolio managers Thomas Swaney and Benjamin Gord
discuss the factors that influenced Pioneer Long/Short Opportunistic Credit
Fund's performance during the 12-month period ended August 31, 2015, as well as
their investment approach in managing the Fund. Mr. Swaney, Head of Alter-
native 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 How did the Fund perform during the 12-month period ended August 31, 2015?
A Pioneer Long/Short Opportunistic Credit Fund's Class A shares returned
1.12% at net asset value during the 12-month period ended August 31, 2015,
while the Fund's benchmark, the Bank of America Merrill Lynch (BofA ML)
3-Month U.S. Treasury-Bill Index, returned 0.03%. During the same period,
the average return of the 231 mutual funds in Lipper's Alternative Credit
Focus Funds category was -2.22%, and the average return of the 418 mutual
funds in Morningstar's Non-Traditional Bond Funds category was -1.38%.
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 three-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 while trying 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 taking an unfavorable
view of other asset classes by taking short positions.
4 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
The other part of the portfolio utilizes uncorrelated, relative-value-based
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. 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 Can you review the principal portfolio investment strategies you
implemented during the 12-month period ended August 31, 2015? How did those
strategies help or hinder the Fund's performance?
A On the relative value side of the portfolio, which seeks to realize gains
regardless of market direction, one strategy we use is to seek to take
advantage of the slope of the spread (yield) curve for individual corporate
bond issuers. For instance, the long-term debt of companies with weaker
balance sheets may react more strongly to changes in business conditions
than the same companies' short term debt. Within this strategy, a curve
trade in retailer Radio Shack added to the Fund's performance during the
period, while a curve trade in gaming company Caesars Entertainment
detracted. On the whole, the Fund's long/short curve trading strategies
contributed positively to returns over the 12-month period.
Another positive contributor to performance was based on our view that the
sharp decline in oil prices during the period had affected the
investment-grade debt of energy firms to a disproportionate extent. We took
a portfolio position designed to benefit from an eventual narrowing of
spreads for such credits versus the overall investment-grade bond universe,
while shorting an index that represented the broader investment-grade
universe in an attempt to eliminate market risk. This strategy worked out
well for the Fund as spreads for investment-grade energy credits eventually
began to normalize against other investment-grade bonds. Our utilization of
credit index tranches, while shorting the overall market index, also
benefited the Fund's performance during the period. This strategy allowed
the Fund to efficiently accentuate its exposure to certain index
constituents that are more susceptible to overall changes in business
conditions.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 5
We have been cautious with respect to credit markets in general, and
high-yield corporates in particular, given the spread tightening that has
occurred. We did, however, successfully take positions in corporate bonds,
including high-yield issues, on weakness at various points during the
period. The Fund also benefited from long positions in both commercial
mortgage-backed (CMBS) and residential mortgage-backed securities (MBS), as
credit profiles of existing borrowers improved along with the domestic
economic backdrop. As the period progressed, we reduced the portfolio's MBS
exposure based on our view that the segment had become close to fairly
valued.
The Fund's currency strategies aided returns during the period as we
positioned the portfolio from a macroeconomic perspective in order to
benefit from the relative strengthening of the U.S. dollar. In particular,
we went long the U.S. dollar in the portfolio, while shorting the euro, the
Japanese yen, and the Swedish krona. In addition, we were long the U.S.
dollar versus a number of currencies that were affected by fears of slowing
economic growth in China; specifically, the Korean won, Taiwan dollar,
Singapore dollar and Australian dollar.
The Fund also benefited by taking positions in specific issuers where we
believe the market's views, from a credit-default perspective, were
excessively pessimistic. Specifically, we took long positions in relatively
short-term obligations of such issuers, while attempting to hedge out the
impact of the broader market's performance.
Our management of the Fund's interest-rate exposures detracted modestly
from returns during the period. The portfolio had a short-duration stance
in the United States at various times as longer-term rates declined.
(Duration is a measure of the sensitivity of the price - the value of
principal - of a fixed-income investment to a change in interest rates,
expressed as a number of years.) The short-duration position was based on
our view that U.S. rates would rise as the Federal Reserve System (the Fed)
solidified expectations for when it would begin to hike its benchmark rate.
However, the market remained sanguine with respect to the rates outlook,
and the yield curve flattened. We eventually removed the position from the
portfolio, based on the significant level of market uncertainty about the
U.S. economic trajectory and over the timing of any Fed action on interest
rates in response to that uncertainty.
On the directional side of the portfolio, we will take long or short
positions in fixed-income markets and securities based on our performance
outlook, while attempting to hedge out interest-rate risk. The Fund's
directional trading became challenged as volatility spiked in the latter
part of the period.
6 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
Q Could you discuss the use of derivative positions in the portfolio during
the 12-month period ended August 31, 2015, and their effect on the Fund's
performance?
A Virtually all of the portfolio's strategies are implemented via
derivatives, and so the Fund's performance will always be affected by
derivatives trading. For instance, when we want to short U.S. Treasuries,
we will do so mainly by selling Treasury futures or sometimes by buying
"put" options. (A "put" option is a contractual agreement that gives the
contract owner the right, but not the obligation, to sell a security at a
pre-determined, fixed price for a certain period of time, regardless of the
current market price of that security.) Similarly, in the currency sleeve
of the Fund, we use forwards and options to gain the desired exposures.
With respect to credit markets, where there are no liquid futures
contracts, we may use credit default swaps to manage the portfolio's
exposures. In other situations, we utilize instruments such as
interest-rate or inflation swaps to implement our strategies.
Q What is your assessment of the current macroeconomic climate and the
opportunities it may present?
A The portfolio is currently positioned neutrally with respect to U.S.
interest rates. While we believe the Fed will be justified in raising rates
given the relative strength of the U.S. economy, weaker conditions overseas
and investment flows into the United States could keep expectations
tempered with respect to longer-term Treasury yields.
We believe the timing of the Fed's first rate hike is less important than
the trajectory and ultimate endpoint of the increases over the next few
years. That will depend on whether the U.S. economy displays sufficient
strength to support a traditional rate-hiking cycle, as defined by the
cycle's pace and end point. It appears to us that the market is currently
somewhat more pessimistic about the U.S. economy than is the Fed.
In general, asset valuations appear to be ahead of economic growth trends.
At the same time, corporate balance sheets are in good shape. At present,
we see relatively few directional investment opportunities in the
fixed-income markets. CMBS continue to appear attractively valued on a
relative basis, while spreads for corporate bonds have widened to a degree
where we are now actively evaluating the asset class.
The Fed's extraordinarily supportive policies have helped to underpin
conditions in recent years. While the beginning of Fed policy tightening is
anticipated to a large degree by the market, volatility and performance
dispersion could still increase as the speculation about increased rates
moves out of the realm of benign prospect and becomes a reality. Slowing
economic growth in China and the impact of oil prices on different
countries and sectors will also be closely monitored by investors.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 7
On balance, we expect an environment of heightened volatility across
fixed-income markets that could very well provide opportunities for the
portfolio's relative value strategies. In such an environment, we will be
focused on identifying the opportunities that do emerge as market reactions
overshoot developments on various macroeconomic fronts.
Please refer to the Schedule of Investments on pages 17-27 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
The Fund 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 Fund.
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.
8 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
The Fund may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
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 and other insurance-linked securities.
The return of principal and the payment of interest on insurance-linked
securities 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. Past performance is no
guarantee of future results.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 9
Portfolio Summary | 8/31/15
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 48.7%
Temporary Cash Investment 25.6%
Collateralized Mortgage Obligations 11.9%
International Corporate Bonds 5.4%
Asset Backed Securities 2.8%
Mutual Fund 2.4%
U.S. Corporate Bonds 2.3%
U.S. Preferred Stocks 0.6%
Senior Secured Loans 0.3%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. U.S. Treasury Bills, 0.0%, 9/10/15 8.15%
--------------------------------------------------------------------------------
2. U.S. Treasury Note, Floating Rate Note, 4/30/17 6.55
--------------------------------------------------------------------------------
3. U.S. Treasury Note, Floating Rate Note, 1/31/16 6.55
--------------------------------------------------------------------------------
4. U.S. Treasury Note, Floating Rate Note, 1/31/17 6.54
--------------------------------------------------------------------------------
5. U.S. Treasury Note, Floating Rate Note, 7/31/16 6.54
--------------------------------------------------------------------------------
6. U.S. Treasury Note, Floating Rate Note, 10/31/16 6.53
--------------------------------------------------------------------------------
7. U.S. Treasury Note, Floating Rate Note, 4/30/16 6.53
--------------------------------------------------------------------------------
8. U.S. Treasury Bills, 0.0%, 9/3/15 5.96
--------------------------------------------------------------------------------
9. U.S. Treasury Bills, 0.0%, 9/24/15 3.69
--------------------------------------------------------------------------------
10. PIMCO High Income Fund 3.26
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
Due to the exclusion of derivatives, the list may not represent the Fund's
market exposures. See the Schedule of Investments. 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 | 8/31/15
Prices and Distributions | 8/31/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/15 8/31/14
--------------------------------------------------------------------------------
A $9.89 $10.11
--------------------------------------------------------------------------------
C $9.82 $10.06
--------------------------------------------------------------------------------
Y $9.91 $10.13
--------------------------------------------------------------------------------
Distributions per Share: 9/1/14 - 8/31/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.3284 $ -- $ --
--------------------------------------------------------------------------------
C $0.2784 $ -- $ --
--------------------------------------------------------------------------------
Y $0.3456 $ -- $ --
--------------------------------------------------------------------------------
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.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 11
Performance Update | 8/31/15 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 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 Annual Total Returns
(As of August 31, 2015)
--------------------------------------------------------------------------------
Net Public BofA ML
Asset Offering 3-Month
Value Price U.S. Treasury
Period (NAV) (POP) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 1.33% -1.42% 0.03%
1 Year 1.12 -3.47 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014, as revised June 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.03% 1.88%
--------------------------------------------------------------------------------
[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
Opportunistic Credit Fund US Treasury Bill Index
12/13 $9,550 $10,000
8/14 $9,656 $10,003
8/15 $9,764 $10,005
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, 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.
12 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
Performance Update | 8/31/15 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 Annual Total Returns
(As of August 31, 2015)
--------------------------------------------------------------------------------
BofA ML
3-Month
If If U.S. Treasury
Period Held Redeemed Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 0.60% 0.60% 0.03%
1 Year 0.40 0.40 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014, as revised June 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.76% 2.63%
--------------------------------------------------------------------------------
[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
Opportunistic Credit Fund US Treasury Bill Index
12/13 $10,000 $10,000
8/14 $10,060 $10,003
8/15 $10,101 $10,005
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.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 13
Performance Update | 8/31/15 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 Annual Total Returns
(As of August 31, 2015)
--------------------------------------------------------------------------------
Net BofA ML
Asset 3-Month
Value U.S. Treasury
Period (NAV) Bill Index
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 1.55% 0.03%
1 Year 1.29 0.03
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2014, as revised June 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.76% 1.63%
--------------------------------------------------------------------------------
[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
Opportunistic Credit Fund US Treasury Bill Index
12/13 $5,000,000 $5,000,000
8/14 $5,065,000 $5,001,378
8/15 $5,130,276 $5,002,692
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, 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.
14 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Long/Short Opportunistic Credit
Fund
Based on actual returns from March 1, 2015, through August 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 3/1/15 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 8/31/15 $ 993.03 $ 988.87 $ 993.04
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 8.79 $ 12.53 $ 7.54
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratio of the underlying funds. These combined total were 1.75%, 2.50%, and
1.50% 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 one-half year period).
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 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, 2015, through August 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 3/1/15 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 8/31/15 $1,016.38 $1,012.60 $1,017.64
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 8.89 $ 12.68 $ 7.63
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratio of the underlying funds. These combined total were 1.75%, 2.50%, and
1.50% 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 one-half year period).
16 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
Schedule of Investments | 8/31/15
-----------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------
PREFERRED STOCKS -- 0.6%
DIVERSIFIED FINANCIALS -- 0.6%
Investment Banking & Brokerage -- 0.6%
12,000 7.12 Morgan Stanley, Floating Rate Note (Perpetual) $ 333,120
-----------
Total Diversified Financials $ 333,120
-----------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $340,923) $ 333,120
-----------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 2.9%
BANKS -- 0.3%
Thrifts & Mortgage Finance -- 0.3%
40,013 1.50 First Franklin Mortgage Loan Trust 2003-FFC, Floating
Rate Note, 11/25/32 $ 38,299
41,165 Icon Brand Holdings LLC, 4.229%, 1/26/43 (144A) 41,362
26,895 3.20 Irwin Whole Loan Home Equity Trust 2003-C,
Floating Rate Note, 6/25/28 26,867
44,920 5.47 New Century Home Equity Loan Trust, Floating
Rate Note, 8/25/34 45,518
-----------
$ 152,046
-----------
Total Banks $ 152,046
-----------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.6%
Other Diversified Financial Services -- 0.2%
85,000 TAL Advantage V LLC, 4.1%, 2/22/39 $ 85,552
-----------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 2.4%
660,000 RMAT 2015-1 LLC, 5.0%, 7/27/20 (Step) (144A) $ 648,450
660,000 VOLT XXXVII LLC, 4.375%, 7/25/45 (Step) (144A) 648,178
-----------
$ 1,296,628
-----------
Total Diversified Financials $ 1,382,180
-----------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $1,539,632) $ 1,534,226
-----------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 12.1%
BANKS -- 12.1%
Thrifts & Mortgage Finance -- 12.1%
300,000 1.16 Alternative Loan Trust 2005-J4, Floating Rate
Note, 7/25/35 $ 271,258
180,000 2.72 BAMLL Commercial Mortgage Securities Trust
2014-INLD, Floating Rate Note, 12/17/29 (144A) 165,962
250,000 6.17 Banc of America Commercial Mortgage Trust 2007-5,
Floating Rate Note, 2/10/51 256,467
150,000 Bear Stearns Commercial Mortgage Securities
Trust 2006-PWR14, 5.273%, 12/11/38 151,131
120,000 2.78 Carefree Portfolio Trust 2014-CARE, Floating Rate
Note, 11/15/19 (144A) 117,138
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 17
Schedule of Investments | 8/31/15 (continued)
-----------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
-----------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
250,000 4.80 CFCRE 2015-RUM Mortgage Trust, Floating Rate
Note, 7/15/30 (144A) $ 250,085
300,000 3.21 Citigroup Commercial Mortgage Trust 2014-GC23
REMICS, Floating Rate Note, 7/12/47 (144A) 217,102
155,000 5.96 COBALT CMBS Commercial Mortgage Trust 2007-C3,
Floating Rate Note, 5/15/46 147,759
47,000 5.96 COBALT CMBS Commercial Mortgage Trust 2007-C3,
Floating Rate Note, 5/15/46 42,204
175,000 5.57 COBALT Commercial Mortgage Trust 2007-C2,
Floating Rate Note, 4/15/47 175,483
175,000 COMM 2006-C8 Mortgage Trust, 5.377%, 12/10/46 175,108
510,000 5.80 COMM 2007-C9 Mortgage Trust, Floating Rate Note,
12/10/49 (144A) 482,784
175,000 5.23 Credit Suisse First Boston Mortgage Securities Corp.,
Floating Rate Note, 12/17/40 174,776
300,000 5.10 Credit Suisse First Boston Mortgage Securities Corp.,
Floating Rate Note, 8/15/38 294,946
400,000 4.89 CSMC Trust 2015-SAND, Floating Rate Note,
8/15/30 (144A) 400,007
92,613 4.94 EQTY 2014-MZ Mezzanine Trust, Floating Rate Note,
5/8/31 (144A) 91,432
100,000 3.38 GAHR Commercial Mortgage Trust 2015-NRF, Floating
Rate Note, 12/15/19 (144A) 93,648
125,000 4.94 GS Mortgage Securities Corp II Series 2005-GG4,
Floating Rate Note, 7/10/39 122,819
250,000 5.55 GS Mortgage Securities Trust 2006-GG6, Floating Rate
Note, 4/10/38 249,452
200,000 JP Morgan Chase Commercial Mortgage Securities
Trust 2006-CIBC16, 5.623%, 5/12/45 201,789
775,000 5.35 LB-UBS Commercial Mortgage Trust 2005-C7,
Floating Rate Note, 11/15/40 (144A) 790,735
187,500 5.28 LB-UBS Commercial Mortgage Trust 2006-C1,
Floating Rate Note, 2/15/41 188,474
260,000 5.33 Merrill Lynch Mortgage Trust 2005-CKI1, Floating
Rate Note, 11/12/37 260,285
70,000 5.48 ML-CFC Commercial Mortgage Trust 2006-3, Floating
Rate Note, 7/12/46 70,658
340,000 4.80 PFP 2015-2, Ltd., Floating Rate Note, 7/14/34 (144A) 340,019
250,000 5.56 Wachovia Bank Commercial Mortgage Trust Series
2005-C22, Floating Rate Note, 12/15/44 250,310
125,000 5.95 Wachovia Bank Commercial Mortgage Trust Series
2007-C34, Floating Rate Note, 5/15/46 129,357
195,000 Wells Fargo Commercial Mortgage Trust 2010-C1,
4.0%, 11/18/43 (144A) 178,417
The accompanying notes are an integral part of these financial statements.
18 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
---------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- (continued)
200,000 3.70 Wells Fargo Commercial Mortgage Trust 2014-TISH,
Floating Rate Note, 1/15/27 (144A) $ 196,881
-----------
$ 6,486,486
-----------
Total Banks $ 6,486,486
---------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $6,440,703) $ 6,486,486
---------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 7.9%
ENERGY -- 3.2%
Integrated Oil & Gas -- 2.5%
1,310,000 Petrobras Global Finance BV, 3.875%, 1/27/16 $ 1,309,306
---------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.7%
400,000 Chesapeake Energy Corp., 3.25%, 3/15/16 $ 393,000
-----------
Total Energy $ 1,702,306
---------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.9%
Aerospace & Defense -- 0.9%
525,000 Bombardier, Inc., 7.5%, 3/15/18 (144A) $ 490,875
-----------
Total Capital Goods $ 490,875
---------------------------------------------------------------------------------------------------
BANKS -- 2.3%
Diversified Banks -- 2.3%
300,000 6.50 Bank of America Corp., Floating Rate Note, 10/23/49 $ 309,000
300,000 5.90 Citigroup, Inc., Floating Rate Note (Perpetual) 294,750
300,000 6.62 Credit Agricole SA, Floating Rate Note (Perpetual) (144A) 294,166
325,000 6.50 ING Groep NV, Floating Rate Note (Perpetual) 311,797
-----------
$ 1,209,713
-----------
Total Banks $ 1,209,713
---------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.1%
Other Diversified Financial Services -- 0.1%
INR 3,700,000 European Bank for Reconstruction & Development,
6.0%, 3/3/16 $ 55,415
-----------
Total Diversified Financials $ 55,415
---------------------------------------------------------------------------------------------------
INSURANCE -- 1.4%
Reinsurance -- 1.4%
250,000 6.86 Caelus Re, Ltd., Floating Rate Note, 4/7/17
(Cat Bond) (144A) $ 256,100
250,000 4.52 Kilimanjaro Re, Ltd., Floating Rate Note, 4/30/18
(Cat Bond) (144A) 244,825
250,000 4.51 Residential Reinsurance 2012, Ltd., Floating Rate
Note, 12/6/16 (Cat Bond) (144A) 252,175
-----------
$ 753,100
-----------
Total Insurance $ 753,100
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 19
Schedule of Investments | 8/31/15 (continued)
---------------------------------------------------------------------------------------------------
Floating
Principal Rate (b)
Amount ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $4,301,086) $ 4,211,409
---------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS -- 49.6%
1,300,000 U.S. Cash Management Bills, 0.0%, 9/15/15 (c) $ 1,299,961
850,000 U.S. Treasury Bills, 0.0%, 11/5/15 (c) 850,017
3,295,000 U.S. Treasury Bills, 0.0%, 9/10/15 (c) 3,294,997
1,290,000 U.S. Treasury Bills, 0.0%, 9/17/15 (c) 1,290,001
1,490,000 U.S. Treasury Bills, 0.0%, 9/24/15 (c) 1,490,003
2,410,000 U.S. Treasury Bills, 0.0%, 9/3/15 (c) 2,410,000
2,645,000 0.10 U.S. Treasury Note, Floating Rate Note, 1/31/16 (d) 2,645,447
2,640,000 0.13 U.S. Treasury Note, Floating Rate Note, 1/31/17 2,642,096
2,640,000 0.10 U.S. Treasury Note, Floating Rate Note, 10/31/16 (d) 2,641,249
2,640,000 0.12 U.S. Treasury Note, Floating Rate Note, 4/30/16 (d) 2,640,935
2,645,000 0.12 U.S. Treasury Note, Floating Rate Note, 4/30/17 2,646,561
2,640,000 0.12 U.S. Treasury Note, Floating Rate Note, 7/31/16 (d) 2,641,315
---------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $26,486,986) $26,492,582
---------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE
LOAN INTERESTS -- 0.1%**
ENERGY -- 0.1%
Integrated Oil & Gas -- 0.1%
50,000 7.50 Chief Exploration & Development LLC, Term Loan,
6.50%, 5/16/21 $ 43,792
-----------
Total Energy $ 43,792
---------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTERESTS
(Cost $49,588) $ 43,792
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Shares
---------------------------------------------------------------------------------------------------
MUTUAL FUND -- 2.5%
138,805 PIMCO High Income Fund $ 1,315,871
-----------
(Cost $1,348,831) $ 1,315,871
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Price Date
---------------------------------------------------------------------------------------------------
PUT OPTIONS PURCHASED -- 1.2%
101 S&P500 EMINI Citibank NA $1,670 12/18/15 $ 138,370
101 S&P500 EMINI Citibank NA $1,985 12/18/15 510,050
---------------------------------------------------------------------------------------------------
TOTAL PUT OPTIONS PURCHASED $ 648,420
-----------
(Premiums paid $311,114) $ 648,420
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
---------------------------------------------------------------------------------------------------
Principal
Amount ($) Value
---------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 26.1%
Commercial Papers -- 9.8%
2,635,000 BNP Paribas, Discount Note, 9/1/15 $ 2,634,993
2,635,000 Societe Generale North America, Inc.,
Discount Note, 9/1/15 2,635,001
-----------
$ 5,269,994
---------------------------------------------------------------------------------------------------
Repurchase Agreement -- 16.3%
8,700,000 $6,000,000 RBC Capital Markets LLC, 0.13%,
dated 8/31/15 plus accrued interest on 9/1/15
collateralized by the following:
$2,738,163 Government National Mortgage
Association II, 1.625% - 4.5%, 8/20/40 - 8/20/45
$655,248 Government National Mortgage Association I,
2.554% - 5.0%, 2/15/40 - 5/20/65
$218,175 Freddie Mac Giant, 3.5% - 4.5%,
11/1/41 - 1/1/45
$1,028,023 Federal Home Loan Mortgage Corp.,
2.229% - 2.854%, 5/1/44 - 5/1/45
$1,906,541 Federal National Mortgage Association
(ARM), 2.298% - 3.318%, 6/1/36 - 3/1/44
$2,327,850 Federal National Mortgage Association,
2.5% - 5.5%, 2/1/26 - 8/1/45 $ 8,700,000
---------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $13,970,000) $13,969,994
---------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 103.0%
(Cost $54,788,863) (a) $55,035,900
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Number of Strike Expiration
Contracts Description Counterparty Price Date
---------------------------------------------------------------------------------------------------
PUT OPTIONS WRITTEN -- (1.0)%
(101) S&P500 EMINI Citibank NA $1,775 12/18/15 $ (213,615)
(101) S&P500 EMINI Citibank NA $1,880 12/18/15 (328,250)
---------------------------------------------------------------------------------------------------
TOTAL PUT OPTIONS WRITTEN
(Premiums received $249,436) $ (541,865)
---------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- (2.0)% $(1,043,588)
---------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $53,450,447
===================================================================================================
(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, 2015, the value of these securities
amounted to $6,200,341 or 11.6% of total net assets.
(Cat Bond) Catastrophe or Event Linked Bond. At August 31, 2015, the value of
these securities amounted to $753,100, or 1.4% of total net
assets. See Notes to Financial Statements -- Note 1I.
(Perpetual) Security with no stated maturity date.
(Step) Bond issued with an initial coupon rate which converts to a higher
rate at a later date.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 21
Schedule of Investments | 8/31/15 (continued)
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.
(a) At August 31, 2015, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $54,788,863 was
as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 407,650
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (160,613)
---------
Net unrealized appreciation $ 247,037
=========
(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) A portion of this security has been pledged as collateral for
swaps contracts.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
INR Indian Rupee
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2015 were as follows:
-----------------------------------------------------------------
Purchases Sales
-----------------------------------------------------------------
Long-Term U.S. Government $12,147,636 $ -
Other Long-Term Securities $21,736,291 $26,747,926
CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
----------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
----------------------------------------------------------------------------------------------------------------
(3,055,000) Chicago Markit CDX North 1.00% 6/20/20 $ (44,885) $ 6,707
Mercantile America Investment
Exchange Grade Index
(1,506,500) Chicago Markit CDX North 5.00% 12/20/16 (89,787) 11,553
Mercantile America High
Exchange Yield Index
(4,108,500) Chicago Markit CDX North 5.00% 6/20/20 (201,941) (22,661)
Mercantile America High
Exchange Yield Index
EUR (2,750,000) Intercontinental Markit iTraxx Europe 5.00% 6/20/19 (401,921) 42,506
Exchange Consumer Index
----------------------------------------------------------------------------------------------------------------
$(738,534) $ 38,105
================================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
CREDIT DEFAULT SWAP AGREEMENTS -- BUY PROTECTION
----------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Paid Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Received) (Depreciation)
----------------------------------------------------------------------------------------------------------------
(225,000) Barclays Morgan Stanley 1.00% 9/20/20 $ (1,888) $ 477
Bank Plc
(1,185,600) Citibank NA Markit CDX North 5.00% 12/20/18 (234,749) 48,595
America High
Yield Index
(550,000) Goldman Sachs Domtar Corp. 1.00% 9/20/20 13,772 1,506
International
(364,800) Goldman Sachs MBIA, Inc. 5.00% 9/20/20 101,232 1,871
International
EUR (1,500,000) Goldman Sachs Norske 5.00% 9/20/17 806,509 (990)
International Skogindustrier ASA
(225,000) JPMorgan Bank of 1.00% 9/20/20 (3,350) 910
Chase Bank NA America Corp.
(580,000) JPMorgan Best Buy Co., Inc. 5.00% 9/20/20 (73,135) (16,238)
Chase Bank NA
(225,000) JPMorgan Citigroup, Inc. 1.00% 9/20/20 (2,224) 862
Chase Bank NA
EUR (220,000) JPMorgan Credit Agricole SA 1.00% 9/20/20 (2,883) (333)
Chase Bank NA
EUR (225,000) JPMorgan ING Bank NV 1.00% 9/20/20 (3,728) (605)
Chase Bank NA
----------------------------------------------------------------------------------------------------------------
$ 599,556 $ 36,055
================================================================================================================
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)
------------------------------------------------------------------------------------------------------------------
EUR 900,000 Barclays Abengoa SA 5.00% B+ 12/20/16 $ (73,997) $(234,596)
Bank Plc
400,000 Barclays Ally 5.00% BB+ 9/20/20 61,746 2,092
Bank Plc Financial, Inc.
700,000 Barclays Apache Corp. 1.00% BBB+ 9/20/20 (19,785) 1,721
Bank Plc
400,000 Barclays Apache Corp. 1.00% BBB+ 9/20/20 (8,879) (1,444)
Bank Plc
845,000 Barclays Devon 1.00% BBB+ 9/20/20 (33,141) 13,741
Bank Plc Energy Corp.
545,000 Barclays Frontier 5.00% BB- 9/20/20 (5,501) (1,416)
Bank Plc Communications
Corp.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 23
Schedule of Investments | 8/31/15 (continued)
CREDIT DEFAULT SWAP AGREEMENTS -- SELL PROTECTION
---------------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Credit Expiration Paid Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Rating(2) Date (Received) (Depreciation)
---------------------------------------------------------------------------------------------------------------------
550,000 Barclays Mcclatchy Co. 5.00% CCC 6/20/16 $ -- $ 3,803
Bank Plc
250,000 Barclays Norske 5.00% CCC- 12/20/15 (52,243) 34,398
Bank Plc Skogindustrier
ASA
520,000 Barclays Toys R Us, Inc. 5.00% CCC 3/20/16 (2,600) (12,426)
Bank Plc
500,000 Citibank NA Energy Transfer 1.00% BBB- 9/20/20 (13,614) (3,872)
Partners LP
600,000 Citibank NA Energy Transfer 1.00% BBB- 9/20/20 (19,101) (1,882)
Partners LP
600,000 Citibank NA Kinder 1.00% BBB- 9/20/20 (22,361) (8,804)
Morgan, Inc.
655,000 Citibank NA Markit CDX 5.00% BBB+ 12/20/17 (32,095) (26,825)
North America
Investment
Grade Index
EUR 2,500,000 Citibank NA Markit iTraxx 1.00% A- 6/20/19 (216,543) 128,896
Europe Index
250,000 Citibank NA Parker Drilling Co. 5.00% B+ 9/20/20 (16,875) (9,070)
350,000 Citibank NA Parker Drilling Co. 5.00% B+ 9/20/20 (35,000) (1,322)
1,135,000 Goldman Sachs AK Steel Corp. 5.00% B- 12/20/16 (28,375) 70
International
305,000 Goldman Sachs Ally Financial, Inc. 5.00% BB+ 9/20/20 46,723 1,954
International
300,000 Goldman Sachs Clair's 5.00% CC 12/20/15 (12,000) (2,012)
International Stores, Inc.
525,000 Goldman Sachs iHeart 5.00% CCC- 12/20/15 (14,437) 13,052
International Communications
885,000 Goldman Sachs iHeart 5.00% CCC- 12/20/16 (48,675) (69,644)
International Communications
550,000 Goldman Sachs Frontier 5.00% BB- 9/20/20 (9,538) 2,558
International Communications
Corp.
364,800 Goldman Sachs MBIA, Inc. 5.00% A- 12/20/16 (41,952) (5,089)
International
EUR 250,000 Goldman Sachs Norske 5.00% CCC- 3/20/16 (5,481) (40,722)
International Skogindustrier
ASA
EUR 1,500,000 Goldman Sachs Norske 5.00% CCC- 9/20/20 (1,192,960) (362)
International Skogindustrier
ASA
The accompanying notes are an integral part of these financial statements.
24 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
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)
---------------------------------------------------------------------------------------------------------------------
150,000 Goldman Sachs Peabody 5.00% B- 3/20/16 $ (11,250) $ (6,422)
International Energy Corp.
525,000 Goldman Sachs Sears Roebuck 5.00% B 12/20/15 (21,000) 25,076
International Acceptance Corp.
300,000 Goldman Sachs Toys R Us, Inc. 5.00% CCC 12/20/15 (10,500) 8,575
International
EUR 400,000 JPMorgan Abengoa SA 5.00% B+ 12/20/15 (31,981) 4,624
Chase
Bank NA
500,000 JPMorgan Diamond 1.00% NR 9/20/20 (48,109) (10,647)
Chase Offshore Drill
Bank NA
600,000 JPMorgan Diamond 1.00% BBB+ 9/20/20 (77,765) 7,258
Chase Offshore
Bank NA Drilling, Inc.
500,000 JPMorgan Kinder 1.00% BBB- 9/20/20 (21,839) (4,131)
Chase Morgan, Inc.
Bank NA
500,000 JPMorgan Nabors 1.00% BBB 9/20/20 (36,630) (14,106)
Chase Industries, Inc.
Bank NA
600,000 JPMorgan Nabors 1.00% BBB 9/20/20 (54,426) (6,458)
Chase Industries, Inc.
Bank NA
500,000 JPMorgan Noble Holding 1.00% BBB 9/20/20 (54,147) (25,801)
Chase International, Ltd.
Bank NA
EUR 250,000 JPMorgan Norske 5.00% CCC- 12/20/15 (50,506) 32,661
Chase Skogindustrier
Bank NA ASA
500,000 JPMorgan Weatherford 1.00% BBB- 9/20/20 (36,630) (39,143)
Chase International, Ltd.
Bank NA
600,000 JPMorgan Weatherford 1.00% BBB- 9/20/20 (74,387) (16,540)
Chase International, Ltd.
Bank NA
525,000 Morgan JC Penney 5.00% CCC- 12/20/16 (15,750) 38,136
Stanley Corp., Inc.
Capital
Services LLC
400,000 Morgan Markit CDX 5.00% BBB+ 12/20/17 (14,500) (21,482)
Stanley North America
Capital Investment
Services LLC Grade Index
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 25
Schedule of Investments | 8/31/15 (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)
---------------------------------------------------------------------------------------------------------------------
250,000 Morgan MBIA, Inc. 5.00% A- 12/20/15 $ (3,125) $ 2,432
Stanley
Capital
Services LLC
250,000 Morgan MBIA, Inc. 5.00% A- 12/20/15 (13,750) 13,057
Stanley
Capital
Services LLC
875,000 Morgan Sears Roebuck 5.00% B 12/20/16 (24,063) 3,947
Stanley Acceptance
Capital Corp.
Services LLC
---------------------------------------------------------------------------------------------------------------------
$(2,397,042) $(226,165)
=====================================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
(2) Based on Standard & Poor's rating of the issuer or weighted average of all
the underlying securities of the index.
NR Not rated by either S&P.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
INTEREST RATE SWAP AGREEMENTS
-----------------------------------------------------------------------------------------------------
Annual Premiums Net
Notional Pay/ Floating Fixed Expiration Paid Unrealized
Principal ($) Counterparty Receive Rate Rate Date (Received) Depreciation
-----------------------------------------------------------------------------------------------------
(951,858) JPMorgan Receive LIBOR USD 1.810% 8/7/19 $ 4 $(15,488)
Chase Bank NA 3 Month
(1,018,659) JPMorgan Receive LIBOR USD 2.200% 5/6/25 8 (4,286)
Chase Bank NA 3 Month
-----------------------------------------------------------------------------------------------------
$12 $(19,774)
=====================================================================================================
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.
26 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
The following is a summary of the inputs used as of August 31, 2015, in valuing
the Fund's assets:
---------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------------
Preferred Stocks $ 333,120 $ -- $ -- $ 333,120
Asset Backed Securities -- 1,534,226 -- 1,534,226
Collateralized Mortgage Obligations -- 6,486,486 -- 6,486,486
Corporate Bonds -- 4,211,409 -- 4,211,409
U.S. Government and
Agency Obligations -- 26,492,582 -- 26,492,582
Senior Floating Rate Loan Interests -- 43,792 -- 43,792
Mutual Fund 1,315,871 -- -- 1,315,871
Put Options Purchased 648,420 -- -- 648,420
Commercial Papers -- 5,269,994 -- 5,269,994
Repurchase Agreement -- 8,700,000 -- 8,700,000
---------------------------------------------------------------------------------------------------
Total $ 2,297,411 $ 52,738,489 $ -- $55,035,900
===================================================================================================
Other Financial Instruments
Unrealized Depreciation on
Credit Default Swaps $ -- $ (152,005) $ -- $ (152,005)
Unrealized Depreciation on
Interest Rate Swaps -- (19,774) -- (19,774)
Written Options (541,865) -- -- (541,865)
Unrealized Depreciation on
Futures Contracts (547) -- -- (547)
Unrealized Appreciation on
Forward Foreign
Currency Contracts -- 88,009 -- 88,009
Unrealized Depreciation on
Forward Foreign
Currency Contracts -- (67,121) -- (67,121)
---------------------------------------------------------------------------------------------------
Total Other Financial Instruments $ (542,412) $ (150,891) $ -- $ (693,303)
===================================================================================================
During the year ended August 31, 2015, there were no transfers between Levels 1,
2 and 3.
The following is a summary of the fair valuation of certain Fund's assets as of
August 31, 2015:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Assets:
Foreign currencies, at value $ -- $112,709 $ -- $112,709
Centrally cleared swap collateral -- 717,291 -- 717,291
Variation margin for
futures contracts 153 -- -- 153
Variation margin for centrally
cleared swap contracts -- 8,919 -- 8,919
--------------------------------------------------------------------------------
Total $ 153 $838,919 $ -- $839,072
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 27
Statement of Assets and Liabilities | 8/31/15
ASSETS:
Investment in securities (cost $46,088,863) $46,335,900
Repurchase agreements (cost $8,700,000) 8,700,000
---------------------------------------------------------------------------------------
Total investment in securities (cost $54,788,863) 55,035,900
Cash 1,262,067
Foreign currencies, at value (cost $112,590) 112,709
Centrally cleared swap collateral 717,291
Receivables --
Investment securities sold 47,847
Swap payments 743,786
Dividend 17,672
Interest 89,748
Due from Pioneer Investment Management, Inc. 28,540
Variation margin for futures contracts 153
Variation margin for centrally cleared swap contracts 8,919
Net unrealized appreciation on forward foreign currency contracts 88,009
Other assets 26,127
---------------------------------------------------------------------------------------
Total assets $58,178,768
=======================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 1,299,963
Trustee fees 1,194
Net unrealized depreciation on forward foreign currency contracts 67,121
Net unrealized depreciation on swap contracts 171,779
Net unrealized depreciation on futures contracts 547
Swap contracts, net premiums received 2,536,008
Written options (premiums received $249,436) 541,865
Due to affiliates 29,898
Accrued expenses 79,946
---------------------------------------------------------------------------------------
Total liabilities $ 4,728,321
=======================================================================================
NET ASSETS:
Paid-in capital $54,098,551
Undistributed of net investment income 868,797
Accumulated net realized loss on investments, futures contracts,
written options, swap contracts, and foreign currency transactions (1,323,960)
Net unrealized appreciation on investments 247,037
Net unrealized depreciation on futures contracts (547)
Net unrealized depreciation on written options (292,429)
Net unrealized depreciation on swap contracts (171,779)
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 24,777
---------------------------------------------------------------------------------------
Total net assets $53,450,447
=======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $11,479,077/1,161,262 shares) $ 9.89
Class C (based on $9,364,486/954,099 shares) $ 9.82
Class Y (based on $32,606,884/3,291,532 shares) $ 9.91
MAXIMUM OFFERING PRICE:
Class A ($9.89 / 95.5%) $ 10.36
=======================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
Statement of Operations
For the Year Ended 8/31/15
INVESTMENT INCOME:
Dividends $ 176,262
Interest 454,670
----------------------------------------------------------------------------------------
Total investment income $ 630,932
----------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 376,861
Distribution fees
Class A 24,640
Class C 88,035
Transfer Agent fees
Class A 895
Class C 465
Class Y 442
Shareholder communications expense 3,863
Administrative reimbursement 25,970
Custodian fees 44,255
Registration fees 62,233
Professional fees 91,622
Printing fees 39,738
Pricing fees 19,135
Fees and expenses of nonaffiliated Trustees 6,600
Miscellaneous 17,058
----------------------------------------------------------------------------------------
Total expenses $ 801,812
----------------------------------------------------------------------------------------
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (213,966)
----------------------------------------------------------------------------------------
Net expenses $ 587,846
----------------------------------------------------------------------------------------
Net investment income $ 43,086
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS, WRITTEN OPTIONS, SWAP CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $(285,587)
Futures contracts (539,400)
Written options 284,541
Swap contracts 171,882
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 721,492 $ 352,928
----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 177,366
Futures contracts 85,365
Written options (407,633)
Swap contracts (172,003)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (180,094) $(496,999)
----------------------------------------------------------------------------------------
Net realized and unrealized loss on investments, futures contracts,
written options, swap contracts, and foreign
currency transactions $(144,071)
----------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(100,985)
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 29
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------------
Year
Ended 12/30/13 (a)
8/31/15 to 8/31/14
-------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 43,086 $ (53,880)
Net realized gain (loss) on investments, futures contracts, written
options, swap contracts, and foreign currency transactions 352,928 (2,748)
Change in net unrealized appreciation (depreciation) on
investments, futures contracts, swap contracts, and foreign
currency transactions (496,999) 304,058
-------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ (100,985) $ 247,430
-------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.33 and $0.00 per share, respectively) $ (290,990) $ --
Class C ($0.28 and $0.00 per share, respectively) (237,127) --
Class Y ($0.35 and $0.00 per share, respectively) (292,420) --
-------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (820,537) $ --
-------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS: (b)(c)
Net proceeds from sale of shares $30,657,269 $ 25,836,911
Reinvestment of distributions 820,545 --
Cost of shares repurchased (3,141,008) (49,178)
-------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $28,336,806 $ 25,787,733
-------------------------------------------------------------------------------------------------
Net increase in net assets $27,415,284 $ 26,035,163
NET ASSETS:
Beginning of year $26,035,163 $ --
-------------------------------------------------------------------------------------------------
End of year $53,450,447 $ 26,035,163
-------------------------------------------------------------------------------------------------
Undistributed of net investment income $ 868,797 $ 536,247
=================================================================================================
(a) Class A, Class C and Class Y shares commenced operations on December 30,
2013.
(b) At August 31, 2015, PIM owned 47.7% of the value of the outstanding shares
of Pioneer Long/Short Opportunistic Credit Fund.
(c) At August 31, 2015, Pioneer Asset Allocation Trust owned 34.0% 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.
30 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
8/31/15 8/31/15 8/31/14 8/31/14
Shares Amount Shares Amount
------------------------------------------------------------------------------------------
Class A*
Shares sold 345,034 $ 3,451,984 895,300 $8,956,897
Reinvestment of distributions 29,815 290,998 -- --
Less shares repurchased (107,896) (1,072,297) (991) (10,000)
------------------------------------------------------------------------------------------
Net increase 266,953 $ 2,670,685 894,309 $8,946,897
==========================================================================================
Class C*
Shares sold 113,452 $ 1,133,511 836,825 $8,368,181
Reinvestment of distributions 24,346 237,127 -- --
Less shares repurchased (19,101) (188,852) (1,423) (14,178)
------------------------------------------------------------------------------------------
Net increase 118,697 $ 1,181,786 835,402 $8,354,003
==========================================================================================
Class Y*
Shares sold 2,603,899 $26,071,774 851,088 $8,511,833
Reinvestment of distributions 29,930 292,420 -- --
Less shares repurchased (190,908) (1,879,859) (2,477) (25,000)
------------------------------------------------------------------------------------------
Net increase 2,442,921 $24,484,335 848,611 $8,486,833
==========================================================================================
* Class A, Class C and Class Y shares commenced operations on December 30, 2013.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 31
Financial Highlights
------------------------------------------------------------------------------------
Year
Ended 12/30/13
8/31/15 to 8/31/14
------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.11 $ 10.00
------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.06 $ (0.01)
Net realized and unrealized gain (loss) on investments 0.05 0.12
------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.11 $ 0.11
------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.33) $ --
------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.22) $ 0.11
------------------------------------------------------------------------------------
Net asset value, end of period $ 9.89 $ 10.11
====================================================================================
Total return* 1.12% 1.10%(a)
Ratio of net expenses to average net assets 1.70% 1.70%**
Ratio of net investment income (loss) to
average net assets 0.35% (0.15)%**
Portfolio turnover rate 130% 100%**
Net assets, end of period (in thousands) $11,479 $ 9,040
Ratios with no waiver of fees and assumption
of expenses by the Adviser and no reduction
for fees paid indirectly:
Total expenses to average net assets 2.39% 2.85%**
Net investment income (loss) to average net assets (0.34)% (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.
32 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
------------------------------------------------------------------------------------
Year
Ended 12/30/13
8/31/15 to 8/31/14
------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.06 $ 10.00
------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.02) $ (0.06)
Net realized and unrealized gain (loss) on investments 0.06 0.12
------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.04 $ 0.06
------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.28) $ --
------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.24) $ 0.06
------------------------------------------------------------------------------------
Net asset value, end of period $ 9.82 $ 10.06
====================================================================================
Total return* 0.40% 0.60%(a)
Ratio of net expenses to average net assets 2.45% 2.45%**
Ratio of net investment income (loss) to
average net assets (0.34)% (0.91)%**
Portfolio turnover rate 130% 100%**
Net assets, end of period (in thousands) $ 9,364 $ 8,403
Ratios with no waiver of fees and
assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Total expenses to average net assets 3.13% 3.58%**
Net investment income (loss) to average net assets (1.02)% (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.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 33
Financial Highlights (continued)
------------------------------------------------------------------------------------
Year
Ended 12/30/13
8/31/15 to 8/31/14
------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.13 $ 10.00
------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.09 $ 0.01(a)
Net realized and unrealized gain (loss) on investments 0.04 0.12
------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.13 $ 0.13
------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.35) $ --
------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.22) $ 0.13
------------------------------------------------------------------------------------
Net asset value, end of period $ 9.91 $ 10.13
====================================================================================
Total return* 1.29% 1.30%(b)
Ratio of net expenses to average net assets 1.45% 1.45%**
Ratio of net investment income (loss)
to average net assets 0.28% 0.10%**(a)
Portfolio turnover rate 130% 100%**
Net assets, end of period (in thousands) $32,607 $ 8,592
Ratios with no waiver of fees and
assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Total expenses to average net assets 2.06% 2.58%**
Net investment income (loss) to average net assets (0.33)% (1.03)%**
====================================================================================
* 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.
** 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.
34 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
Notes to Financial Statements | 8/31/15
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 commenced operations on December
30, 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:
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 are valued at prices supplied by independent pricing
services, which consider such factors as market prices, market events,
quotations from
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 35
one or more brokers, Treasury spreads, yields, maturities and ratings.
Valuations may be supplemented by dealers and other sources, as required.
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. Event-linked bonds are valued at
the bid price obtained from an independent third party pricing service.
Other insurance-linked securities may be valued at the bid price obtained
from an independent pricing service, or through a third party using a
pricing matrix, insurance industry valuation models, or other fair value
methods or techniques to provide an estimated value of the instrument.
Equity securities that have traded on an exchange are valued 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. Shares of money market mutual funds
are valued at such funds' net asset value. Cash may include overnight time
deposits at approved financial institutions.
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 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
36 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
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, 2015, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services or broker-dealers or using a third party insurance industry
pricing model).
B. Investment Income & Transactions
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on purchase prices of debt securities are accreted/
amortized for financial reporting purposes over the life of the respective
securities, and such accretion/amortization is included in interest income.
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.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the statement of operations from
the effects of changes in the market price of those securities but are
included with the net realized and unrealized gain or loss on investments.
D. 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
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 37
to deposit with a broker an amount of cash or securities equal to the
minimum "initial margin" requirements of the associated futures exchange.
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, elements 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 year ended
August 31, 2015 was $(9,230,856).
At August 31, 2015, open futures contracts were as follows:
---------------------------------------------------------------------------
Number of
Contracts Settlement Unrealized
Type Long/(Short) Month/Year Value Depreciation
---------------------------------------------------------------------------
U.S. 5 Year Note (1) 9/15 $(119,812) $ (547)
---------------------------------------------------------------------------
$(119,812) $ (547)
===========================================================================
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
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).
F. 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, 2015, 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.
38 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
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, 2015, the Fund reclassified $1,110,001 to increase undistributed
net investment income and $1,110,001 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, 2015, the Fund was permitted to carry forward indefinitely
$294,883 of long-term losses and $984,747 of short-term losses under the
Regulated Investment Company Modernization Act of 2010 without limitation.
The tax character of distributions paid during the fiscal years ended
August 31, 2015 was as follows:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $820,537
---------------------------------------------------------------------------
Total $820,537
===========================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at August 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,167,384
Capital loss carryforward (1,279,630)
Unrealized depreciation (535,858)
---------------------------------------------------------------------------
Total $ (648,104)
===========================================================================
The difference between book-basis and tax-basis net unrealized depreciation
is attributable to the tax adjustments relating to credit default swaps and
the mark to market of forwards, swaps, options and future contracts.
G. 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 $213 in underwriting commissions on the sale of Class A
shares during the year ended August 31, 2015.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 39
H. 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.
I. 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.
The Fund invests in event-linked bonds. Event-linked bonds are floating
rate debt obligations for which the return of principal and the payment of
interest are contingent on the non-occurrence of a pre-defined "trigger"
event, such as a hurricane or an earthquake of a specific magnitude. The
trigger event's magnitude may be based on losses to a company or industry,
industry indexes or readings of scientific instruments, or may be based on
specified actual losses. If a trigger event, as defined within the terms of
an event-linked bond occurs, the Fund may lose a portion or all of its
accrued interest and/or principal invested in such event-linked bond. The
Fund is entitled to receive principal and interest payments so long as no
trigger event occurs of the description and magnitude specified by the
instrument. In addition to the specified trigger events, event-linked bonds
may expose the Fund to other risks, including but not limited to issuer
(credit) default, adverse regulatory or jurisdictional interpretations and
adverse tax consequences.
40 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
In addition to event-linked bonds, the Fund also may invest in other
insurance-linked securities ("ILS"). The Fund's investments in ILS may
include special purpose vehicles ("SPVs") or similar instruments structured
to comprise a portion of a reinsurer's catastrophe-oriented business, known
as quota share instruments (sometimes referred to as reinsurance sidecars),
or to provide reinsurance relating to specific risks to insurance or
reinsurance companies through a collateralized instrument, known as
collateralized reinsurance. Structured reinsurance investments also may
include industry loss warranties ("ILWs"), are subject to the same risks as
event-linked bonds. In addition, because quota share instruments represent
an interest in a basket of underlying reinsurance contracts, the Fund has
limited transparency into the individual underlying contracts and therefore
must rely upon the risk assessment and sound underwriting practices of the
issuer. Accordingly, it may be more difficult for PIM to fully evaluate the
underlying risk profile of the Fund's investment in quota share instruments
and therefore place the Fund's assets at greater risk of loss than if PIM
had more complete information. These securities may be difficult to
purchase, sell or unwind and may be difficult to value.
J. Credit Default Swaps
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may sell
or buy credit default swap contracts to seek to increase the Fund's income,
or to attempt to hedge the risk of default on 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 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.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 41
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.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Fund are pursuant to a centrally cleared swap contract with the central
clearing party rather than the original counterparty. Upon entering into a
centrally cleared swap contract, the Fund is required to make an initial
margin deposit, either in cash or in securities. The daily change in value
on open centrally cleared contracts is recorded as variation margin on
centrally cleared swaps on the Statement of Assets and Liabilities.
Open credit default swap contracts at August 31, 2015 are listed in the
Schedule of Investments. The average value of credit default swap contracts
open during the year ended August 31, 2015 was $(1,192,932).
K. 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
42 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
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, 2015 are listed in the
Schedule of Investments. The average value of interest rate swap contracts
open during the year ended August 31, 2015 was $(74,410).
L. 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 a 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 year ended August 31, 2015
was $422.
The Fund did not hold any written swaption contracts at August 31, 2015.
Transactions in written swaptions for the year ended August 31, 2015 are
summarized as follows:
---------------------------------------------------------------------------
Number of Premiums
Contracts Received
---------------------------------------------------------------------------
Options outstanding at beginning of period (10,200,000) $(134,640)
Options opened (5,360,000) (26,532)
Options exercised -- --
Options closed -- --
Options expired 15,560,000 161,172
---------------------------------------------------------------------------
Options outstanding at end of period -- $ --
===========================================================================
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 43
M. 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 options contracts open during the year ended
August 31, 2015 was ($96,176). 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 two written put option contracts that were open at August 31,
2015. If the put options were exercised at August 31, 2015, the maximum
amount the Fund would have been required to pay was $249,436.
---------------------------------------------------------------------------
Number of Premiums
Contracts Received
---------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options opened (1,044) (471,370)
Options exercised -- --
Options closed 376 153,349
Options expired 466 68,585
---------------------------------------------------------------------------
Options outstanding at end of period (202) $(249,436)
===========================================================================
N. Options Purchased
The Fund may purchase put and call options in order to seek to increase
total return. Purchased call and put options entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time. Upon the purchase of a call or put option, the
premium paid by the Fund is included in the Statement of Assets and
Liabilities as an investment. All premiums are marked-to-market daily, and
any unrealized appreciation or depreciation are recorded in the Fund's
financial statements. As the purchaser
44 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
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 contracts open during the year ended
August 31, 2015 was $115,007. Purchased option contracts outstanding at
period end are listed within the Fund's schedule of investments.
O. 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 1.15% 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 year ended August 31,
2015, the 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, 2016. Fees waived and
expenses reimbursed during the year ended August 31, 2015 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.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 45
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
$28,331 in management fees, administrative costs and certain other
reimbursements payable to PIM at August 31, 2015.
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, 2015, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $2,359
Class C 519
Class Y 985
--------------------------------------------------------------------------------
Total $3,863
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $229 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at August 31, 2015.
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 $1,338 in distribution fees payable to
PFD at August 31, 2015.
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
46 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
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 year ended August 31, 2015, no CDSCs were paid to PFD.
5. Forward Foreign Currency Contracts
At August 31, 2015, 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, 2015 was $(3,718,272).
Open forward foreign currency contracts at August 31, 2015 were as follows:
------------------------------------------------------------------------------------------------
Net
Currency Quantity Currency Quantity Settlement Unrealized
Purchased Purchased Sold Sold Counterparty Date Appreciation
------------------------------------------------------------------------------------------------
EUR 726,603 USD 814,051 Brown Brothers 9/16/15 $ 2,231
Harriman & Co.
EUR 444,417 USD 485,020 Citibank NA 9/16/15 14,248
USD 754,497 EUR 661,668 Citibank NA 10/19/15 10,767
USD 426,975 SGD 584,549 Citibank NA 10/26/15 13,340
USD 370,985 KRW 432,027,412 Citibank NA 10/26/15 6,159
USD 143,651 ZAR 1,887,323 Citibank NA 11/25/15 3,413
USD 345,430 HUF 95,967,053 Citibank NA 11/25/15 1,898
RUB 10,176,730 USD 157,376 JPMorgan 9/11/15 1,187
Chase Bank NA
USD 142,625 KRW 165,595,000 JPMorgan 10/26/15 2,788
Chase Bank NA
USD 249,616 CAD 326,516 JPMorgan 11/24/15 1,791
Chase Bank NA
MXN 2,818,153 USD 165,747 JPMorgan 11/25/15 1,838
Chase Bank NA
USD 168,428 AUD 230,203 JPMorgan 11/25/15 5,182
Chase Bank NA
USD 348,004 CHF 331,043 JPMorgan 11/25/15 4,290
Chase Bank NA
USD 257,244 NZD 387,238 JPMorgan 11/25/15 13,345
Chase Bank NA
USD 439,988 EUR 386,270 JPMorgan 11/25/15 5,532
Chase Bank NA
------------------------------------------------------------------------------------------------
$ 88,009
================================================================================================
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 47
--------------------------------------------------------------------------------------------
Net
Currency Quantity Currency Quantity Settlement Unrealized
Purchased Purchased Sold Sold Counterparty Date Depreciation
--------------------------------------------------------------------------------------------
EUR 661,422 USD 744,301 Brown Brothers 10/19/15 $ (848)
Harriman & Co.
MXN 1,143,832 CAD 92,251 Citibank NA 10/26/15 (1,854)
USD 422,356 CZK 10,423,599 Citibank NA 10/26/15 (11,276)
PLN 1,315,409 EUR 310,133 Citibank NA 11/25/15 (943)
USD 151,213 RUB 10,025,453 JPMorgan 9/11/15 (4,993)
Chase Bank NA
USD 77,703 EUR 69,706 JPMorgan 10/19/15 (648)
Chase Bank NA
IDR 2,308,270,397 USD 167,896 JPMorgan 10/26/15 (5,742)
Chase Bank NA
INR 11,037,516 USD 170,959 JPMorgan 10/26/15 (6,256)
Chase Bank NA
MXN 5,604,836 CAD 453,932 JPMorgan 10/26/15 (10,524)
Chase Bank NA
USD 430,856 SEK 3,705,000 JPMorgan 10/26/15 (8,670)
Chase Bank NA
PLN 645,965 CZK 4,113,663 JPMorgan 11/25/15 (428)
Chase Bank NA
USD 602,504 JPY 73,696,495 JPMorgan 11/25/15 (6,500)
Chase Bank NA
USD 491,671 TWD 16,114,030 JPMorgan 11/25/15 (4,686)
Chase Bank NA
USD 164,678 MXN 2,832,377 JPMorgan 11/25/15 (3,753)
Chase Bank NA
--------------------------------------------------------------------------------------------
$ (67,121)
============================================================================================
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 year ended August 31, 2015, the Fund's expenses were
not reduced under such arrangements.
7. Assets and Liabilities Offsetting
The Fund has entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all its derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Fund and a counterparty that governs the trading
of certain OTC derivatives and typically contains, among other things, close-out
and set-off provisions which apply upon the occurrence of event of a default
and/or termination event as defined under the relevant ISDA Master Agreement.
The ISDA Master Agreement may also give a party the right to terminate all
transactions traded under such agreement if, among other things, there is
deterioration in the credit quality of the other party. Upon an event of default
or a termination of the ISDA Master Agreement, the non-defaulting party has the
right to close out all transactions under such agreement and to net amounts owed
under each transaction to determine one net amount payable by one party to the
other. The right to close out and net payments
48 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
across all transactions under the ISDA Master Agreement could result in a
reduction of the Fund's credit risk to its counterparty equal to any amounts
payable by the Fund under the applicable transactions, if any. However, the
Fund's right to setoff may be restricted or prohibited by the bankruptcy or
insolvency laws of the particular jurisdiction to which a specific ISDA
counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collateral pledged for the benefit of the Fund and/or
counterparty is held in segregated accounts by the Fund's custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Fund's collateral obligations, if any, will be
reported separately in the Statement of Assets and Liabilities as "Futures
collateral", "Swap Collateral" or "Deposit with broker." Securities pledged by
the Fund as collateral, if any, are identified as such in the Schedule of
Investments.
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have been offset on the Statement of Assets and
Liabilities. The following charts show gross assets and liabilities of the Fund
as of August 31, 2015.
-----------------------------------------------------------------------------------------------------
Derivative Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
-----------------------------------------------------------------------------------------------------
Barclays Bank Plc $ 56,232 $ (56,232) $ -- $ -- $ --
Citibank NA 227,316 (227,316) -- -- --
Goldman Sachs
International 54,662 (54,662) -- -- --
JP Morgan Chase Bank NA 82,268 (82,268) -- -- --
Morgan Stanley Capital
Services LLC 57,572 (21,482) -- -- 36,090
-----------------------------------------------------------------------------------------------------
$ 478,050 $(441,960) $ -- $ -- $ 36,090
======================================================================================================
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 49
---------------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
---------------------------------------------------------------------------------------------------
Barclays Bank Plc $ (249,882) $ 56,232 $193,650 $ -- --
Citibank NA (607,713) 227,316 380,397 -- --
Goldman Sachs
International (125,241) 54,662 -- (70,579)
JP Morgan Chase Bank NA (205,976) 82,268 123,708 -- --
Morgan Stanley Capital
Services LLC (21,482) 21,482 -- --
---------------------------------------------------------------------------------------------------
$(1,210,294) $ 441,960 $697,755 $ -- $(70,579)
===================================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
8. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of August 31, 2015 were as follows:
----------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives Liabilities Derivatives
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 $88,009 currency contracts $ 67,121
Written options Written options -- Written options 541,865
Swap contracts Net unrealized Net unrealized
appreciation on depreciation on
swap contracts -- swap contracts 171,779
Futures contracts Net unrealized -- Net unrealized
appreciation on depreciation on
futures contracts futures contracts 547
----------------------------------------------------------------------------------------
Total $88,009 $781,312
========================================================================================
50 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
The effect of derivative instruments on the Statement of Operations for the year
ended August 31, 2015 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 in
(ASC) 815 in Income in Income Income
------------------------------------------------------------------------------------------------
Forward foreign Net realized gain (loss) on
currency contracts forward foreign currency contracts $ 816,728
Forward foreign Change in unrealized appreciation
currency contracts (depreciation) on forward foreign
currency contracts $(195,406)
Written options Net realized gain (loss)
on written options $ 284,541
Written options Change in net unrealized appreciation
(depreciation) on Written options $(407,633)
Futures contracts Net realized gain (loss) on
futures contracts $(539,400)
Futures contracts Change in net unrealized appreciation
(depreciation) on futures contracts $ 85,365
Swap contracts Net realized gain (loss) on
swap contracts $ 171,882
Swap contracts Change in net unrealized appreciation
(depreciation) on swap contracts $(172,003)
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 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 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, 2015, and the related statement of operations for the year then
ended, and the statement of changes in net assets and the financial highlights
for the year then ended and for the period from 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 audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the 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 audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, 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, 2015, 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 audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Long/Short Opportunistic Credit Fund as of August 31, 2015, the results
of its operations for the year then ended, and the changes in its net assets,
and the financial highlights for the year then ended and for the period from
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 28, 2015
52 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
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 22.15%
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 13.79%.
PIM, the Fund's investment adviser, is currently an indirect, wholly-owned
subsidiary of UniCredit. On April 23, 2015, UniCredit announced that it signed a
preliminary and exclusive agreement with Banco Santander and affiliates of
Warburg Pincus and General Atlantic (the "Private Equity Firms") with respect to
Pioneer Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as described in the UniCredit announcement, will entail the
establishment of a holding company, with the name Pioneer Investments, to be
owned by UniCredit (50%) and the Private Equity Firms (50% between them). The
holding company will control Pioneer's U.S. operations, including the Adviser.
The holding company also will own 66.7% of Pioneer's and SAM's combined
operations outside the U.S., while Banco Santander will own directly the
remaining 33.3% stake. The completion of the Transaction is subject to the
signing of a definitive agreement, as well as certain regulatory and corporate
approvals, and other conditions.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's investment advisory agreement with the Adviser to terminate. In
connection with the Transaction, the Fund's Board of Trustees will be asked to
approve a new investment advisory agreement for the Fund. If approved by the
Board, the Fund's new investment advisory agreement will be submitted to the
shareholders of the Fund for their approval.
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 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
Morgan, Lewis & Bockius 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 51 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 Opportunistic Credit Fund | Annual Report | 8/31/15
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 (64) Trustee since 2013. Private investor (2004-2008 and Director, Broadridge
Chairman of the Board Serves until a successor 2013-present); Chairman (2008-2013) and Financial Solutions, Inc.
and Trustee trustee is elected or earlier Chief Executive Officer (2008-2012), (investor communications
retirement or removal. Quadriserv, Inc. (technology products for and securities processing
securities lending industry); and Senior provider for financial
Executive Vice President, The Bank of New services industry) (2009-
York (financial and securities services) present); Director,
(1986-2004) Quadriserv, Inc.
(2005-2013); and
Commissioner, New Jersey
State Civil Service
Commission (2011-present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Trustee since 2013. Managing Partner, Federal City Capital Director of New York
Trustee Serves until a successor Advisors (corporate advisory services Mortgage Trust
trustee is elected or earlier company) (1997-2004 and 2008-present); (publicly-traded mortgage
retirement or removal. Interim Chief Executive Officer, Oxford REIT) (2004- 2009,
Analytica, Inc. (privately-held research 2012-present); Director
and consulting company) (2010); Executive of The Swiss Helvetia
Vice President and Chief Financial Fund, Inc. (closed-end
Officer, I-trax, Inc. (publicly traded fund) (2010-present);
health care services company) Director of Oxford
(2004-2007); and Executive Vice President Analytica, Inc.
and Chief Financial Officer, Pedestal (2008-present); and
Inc. (internet-based mortgage trading Director of Enterprise
company) (2000-2002); Private consultant Community Investment,
(1995-1997), Managing Director, Lehman Inc. (privately-held
Brothers (investment banking firm) affordable housing
(1992-1995); and Executive, The World finance company)
Bank (1979-1992) (1985-2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (71) Trustee since 2013. William Joseph Maier Professor of Trustee, Mellon
Trustee Serves until a successor Political Economy, Harvard University Institutional Funds
trustee is elected or earlier (1972-present) Investment Trust and
retirement or removal. Mellon Institutional
Funds Master Portfolio
(oversaw 17 portfolios in
fund complex) (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 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 (68) Trustee since 2013. Founding Director, Vice President and None
Trustee Serves until a successor Corporate Secretary, The Winthrop Group,
trustee is elected or earlier Inc. (consulting firm) (1982-present);
retirement or removal. Desautels Faculty of Management, McGill
University (1999-present); and Manager of
Research Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (67) Trustee since 2013. President and Chief Executive Officer, Director of New America
Trustee Serves until a successor Newbury, Piret & Company, Inc. High Income Fund, Inc.
trustee is elected or earlier (investment banking firm) (1981-present) (closed-end investment
retirement or removal. company) (2004-present);
and Member, Board of
Governors, Investment
Company Institute
(2000-2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (68) Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a successor (2012-present); Executive Vice President,
trustee is elected or earlier BNY Mellon (financial and investment
retirement or removal. company services) (1969-2012); Director,
BNY International Financing Corp.
(financial services) (2002-2012); and
Director, Mellon Overseas Investment
Corp. (financial services) (2009-2012)
------------------------------------------------------------------------------------------------------------------------------------
56 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
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 (57)* Trustee since 2014. Director and Executive Vice President None
Trustee Serves until a successor (since 2008) and Chief Investment
trustee is elected or earlier Officer, U.S. (since 2010) of PIM-USA;
retirement or removal. Executive Vice President of Pioneer
(since 2008); Executive Vice President of
Pioneer Institutional Asset Management,
Inc. (since 2009); and 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 Opportunistic Credit Fund | Annual Report | 8/31/15 57
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine Monchak (59)** Advisory Trustee since 2014. Chief Investment Officer, 1199 SEIU Funds None
Advisory Trustee (healthcare workers union pension funds)
(2001-present); Vice
President-International Investments
Group, American International Group, Inc.
(insurance company) (1993-2001); Vice
President Corporate Finance and Treasury
Group, Citibank, N.A.(1980-1986 and 1990-
1993); Vice President-Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer
of debt securities) (1988-1990); Mortgage
Strategies Group, Shearson Lehman Hutton,
Inc. (investment bank) (1987-1988); and
Mortgage Strategies Group, Drexel Burnham
Lambert, Ltd. (investment bank)
(1986-1987)
------------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak is a non-voting advisory trustee.
58 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (53) Since 2014. Serves at the Chair, Director, CEO and President of None
President and discretion of the Board. Pioneer Investment Management-USA (since
Chief Executive Officer September 2014); 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); and
Director of Institutional Business, CEO
of International, Eaton Vance Management
(2005-2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (50) Since 2013. Serves at the Vice President and Associate General None
Secretary and Chief discretion of the Board. Counsel of Pioneer since January 2008;
Legal Officer Secretary and Chief Legal Officer of all
of the Pioneer Funds since June 2010;
Assistant Secretary of all of the Pioneer
Funds from September 2003 to May 2010;
and Vice President and Senior Counsel of
Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (54) Since 2013. Serves at the Fund Governance Director of Pioneer since None
Assistant Secretary discretion of the Board. December 2006 and Assistant Secretary of
all the Pioneer 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 (52) Since 2013. Serves at the Senior Counsel of Pioneer since May 2013 None
Assistant Secretary discretion of the Board. and Assistant Secretary of all the
Pioneer Funds since June 2010; and
Counsel of Pioneer from June 2007 to May
2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2013. Serves at the Vice President-Fund Treasury of Pioneer; None
Treasurer and Chief discretion of the Board. Treasurer of all of the Pioneer Funds
Financial since March 2008; Deputy Treasurer of
and Accounting Officer Pioneer from March 2004 to February 2008;
and Assistant Treasurer of all of the
Pioneer Funds from March 2004 to February
2008
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15 59
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 2013. Serves at the Director-Fund Treasury of Pioneer; and None
Assistant Treasurer discretion of the Board. Assistant Treasurer of all of the Pioneer
Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (57) Since 2013. Serves at the Fund Accounting Manager-Fund Treasury of None
Assistant Treasurer discretion of the Board. Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2013. Serves at the Fund Administration Manager-Fund Treasury None
Assistant Treasurer discretion of the Board. of Pioneer since November 2008; Assistant
Treasurer of 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 (62) Since 2013. Serves at the Chief Compliance Officer of Pioneer and None
Chief Compliance Officer discretion of the Board. of all the Pioneer Funds since March
2010; Chief Compliance Officer of Pioneer
Institutional Asset Management, Inc.
since January 2012; Chief Compliance
Officer of Vanderbilt Capital Advisors,
LLC since July 2012: Director of Adviser
and Portfolio Compliance at Pioneer since
October 2005; and Senior Compliance
Officer for Columbia Management Advisers,
Inc. from October 2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (44) Since 2013. Serves at the Director-Transfer Agency Compliance of None
Anti-Money Laundering discretion of the Board. Pioneer and Anti-Money Laundering Officer
Officer of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
60 Pioneer Long/Short Opportunistic Credit Fund | Annual Report | 8/31/15
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) 2015 Pioneer Investments 28081-01-1015
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
The audit fees for the Trust were $294,263
payable to Deloitte & Touche LLP for the year ended
August 31, 2015 and $203,733 for the year ended August 31, 2014.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
There were no audit-related services in 2015 or 2014.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
The tax fees for the Trust were $42,100
payable to Deloitte & Touche LLP for the year ended
August 31, 2015 and $42,100 for the year ended August 31, 2014.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
There were no other fees in 2015 or 2014.
(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 2015 and 2014, 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, 2015 and $42,100 for the year ended August 31, 2014.
(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 & Chief Executive Officer
Date October 30, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date October 30, 2015
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date October 30, 2015
* Print the name and title of each signing officer under his or her signature.