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, 2016 through August 31, 2017
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Global
Equity Fund
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Annual Report | August 31, 2017
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Ticker Symbols:
Class A GLOSX
Class C GCSLX
Class K PGEKX
Class R PRGEX
Class Y PGSYX
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 11
Prices and Distributions 12
Performance Update 13
Comparing Ongoing Fund Expenses 18
Schedule of Investments 20
Financial Statements 28
Notes to Financial Statements 37
Report of Independent Registered Public Accounting Firm 50
Additional Information 51
Approval of New and Interim Management Agreements 53
Trustees, Officers and Service Providers 61
Pioneer Global Equity Fund | Annual Report | 8/31/17 1
President's Letter
We are very pleased to announce that on July 3, 2017, Amundi Asset Management, a
large European asset manager, officially acquired Pioneer Investments and
announced the completion of a merger which combined Pioneer Investment
Management USA, Inc., in Boston and Amundi Smith Breeden in Durham, N.C., to
form Amundi Pioneer Asset Management, Inc. ("Amundi Pioneer"). Amundi Smith
Breeden, founded as Smith Breeden Associates in 1982, is a highly regarded
relative-value credit investor managing an extensive range of fixed-income
strategies tailored to the needs of institutional investors.
Our new brand, Amundi Pioneer, now signifies:
o Ownership by Amundi Asset Management ("Amundi"). Amundi is Europe's largest
asset manager and among the world's top 10 asset managers, as measured by
assets under management (AUM), with approximately $1.3 trillion AUM(1).
o The significantly larger scale and resources of the combined firms.
o Amundi's desire to maintain the strong brand recognition of Pioneer in the
U.S., which dates back to 1928.
We would like to stress to shareowners that all of the Pioneer mutual funds have
retained their previous names. In addition, there have been no changes to the
portfolio managers or the funds' investment strategies as a result of the
merger. Amundi Pioneer's newly combined investment team works together as one
unit, discussing investment ideas, participating in research meetings, and
collaborating across the expanded organization.
We are looking forward to the opportunity to leverage the broad global resources
of Amundi. In bringing together Pioneer and Amundi Smith Breeden, we have
combined organizations that share similar investment philosophies and corporate
cultures, and that value teamwork across a collegial, collaborative environment.
We are very excited about our future, as we believe the greater scale and
expanded global reach of the combined firm, with some 5,000 employees worldwide,
provides several opportunities to better meet the needs of today's investors by
exploring new, innovative investment solutions and integrating the abundance of
thought leadership resources at Amundi, while also maintaining our commitment to
providing existing shareowners with outstanding service locally.
(1) Source: IPE "Top 400 asset managers" published in June 2017 and based on
AUM as of end December 2016.
2 Pioneer Global Equity Fund | Annual Report | 8/31/17
As always, and particularly during times of market uncertainty, we encourage
you to work with your financial advisor to develop an overall investment plan
that addresses both your short- and long-term goals, and to implement such a
plan in a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future as we move into a new and exciting era.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
August 31, 2017
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Global Equity Fund | Annual Report | 8/31/17 3
Portfolio Management Discussion | 8/31/17
Important Note: On July 3, 2017, Amundi acquired Pioneer Investments, a group of
asset management companies located throughout the world. Amundi, one of the
world's largest asset managers, is headquartered in Paris, France. As a result
of the transaction, Pioneer Investment Management, Inc., the Fund's investment
adviser, became an indirect wholly owned subsidiary of Amundi and Amundi's
wholly owned subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer
Investments was owned by Pioneer Global Asset Management S.p.A., a wholly owned
subsidiary of UniCredit S.p.A.
In connection with the transaction, the names of the Fund's investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc. and
the name of Pioneer Funds Distributor, Inc. changed to Amundi Pioneer
Distributor, Inc.
This transaction does not impact your existing relationship with Pioneer
Investments, your advisor, or the methods you use to communicate with us, as the
investor contact telephone numbers and services you expect will remain the same.
We are excited, however, to be launching a new website representing the combined
company. Come visit us at: www.amundipioneer.com.
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, 2017. Mr. Pirondini, Head of
Equities, U.S., Executive Vice President and a portfolio manager at Amundi
Pioneer Asset Management, Inc. (Amundi Pioneer), and Mr. Glazer, Senior Vice
President and a portfolio manager at Amundi Pioneer, are responsible for the
day-to-day management of the Fund.
Q How did the Fund perform over the 12-month period ended August 31, 2017?
A Pioneer Global Equity Fund's Class A shares returned 18.89% at net asset
value during the 12-month period ended August 31, 2017, while the Fund's
benchmarks, the Morgan Stanley Capital International (MSCI)
4 Pioneer Global Equity Fund | Annual Report | 8/31/17
World ND Index and the MSCI All Country World ND Index1, returned 16.19%
and 17.11%, respectively. During the same period, the average return of the
200 mutual funds in Lipper's Global Multi-Cap Core Funds category was
16.46%, and the average return of the 857 mutual funds in Morningstar's
World Large Stock Funds category was 16.00%.
Q How would you characterize the investment environment in the global equity
markets during the 12-month period ended August 31, 2017?
A The past 12 months represented a very strong period for global equities as
we saw a significant reflationary trend in the global economy, with
improving macroeconomic conditions for international markets. Amid a
positive investment environment, the emerging markets, Japan, and Europe
all registered economic and market gains. And, with the help of continuing
monetary support from the world's central banks, including quantitative
easing policies, global economic growth gained some additional momentum.
Cyclical sectors such as financials, consumer discretionary, consumer
staples, industrials, and information technology enjoyed particularly
strong performance over the 12 months. In contrast, utilities,
telecommunications, and real estate trailed equity market averages.
Though 12-month returns were favorable, the markets did endure periods of
heightened volatility. When the Fund's reporting period began in September
2016, global markets had bounced back strongly in the months following the
United Kingdom's "Brexit" vote to leave the European Union (E.U.). However,
an economic slowdown in Japan and uncertainty surrounding the U.S.
presidential election weighed on the markets as investors grappled with the
potential effects those events might have on global growth. However, with
central banks committed to policies aimed at offsetting any fallout from
Brexit, and amid signs that the U.S. economy was gathering renewed
strength, market sentiment steadily improved.
(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.
Pioneer Global Equity Fund | Annual Report | 8/31/17 5
The election of Donald Trump as U.S. president in November, coupled with
speculation that tax reform, infrastructure spending, and deregulation
would be important features of his presidency, spurred renewed optimism and
propelled major U.S. stock market indices to all-time highs. After the
initial euphoria subsided - amid the failure of several political
initiatives in Washington, including attempts to repeal/replace the
Affordable Care Act - some investors rotated out of U.S. cyclical issues
and focused on international stocks. In Europe, markets were rattled by
concerns regarding the future of the E.U. in the lead-up to several
national elections. Concern then turned to optimism, though, in light of a
series of election results that reinforced the strength of the E.U.,
especially the emphatic victory in France by Emmanuel Macron and his `La
Republique en Marche' party.
In that environment, global stocks delivered strong performance during the
full 12-month period. U.S. equities, as measured by the Standard & Poor's
500 Index, returned 16.22%, while international equities returned 19.43%,
as measured by the MSCI All Country World (ex-U.S.) Index, and European
stocks, as measured by the MSCI Europe Index, returned 20.12%.
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 potential for a decline in price if circumstances
become unfavorable. We prefer stocks with the highest potential upside
relative to their downside.
* Diversification does not assure a profit nor protect against loss.
** Dividends are not guaranteed.
6 Pioneer Global Equity Fund | Annual Report | 8/31/17
Q Which of your investment decisions or individual portfolio holdings either
aided or detracted from the Fund's performance relative to its benchmarks
during the 12-month period ended August 31, 2017?
A During the period, security selection and sector allocation made almost
equally strong contributions to the Fund's benchmark-relative performance.
In terms of security selection, notable contributions came from positions
in defensive-oriented technology stocks, including Apple, Samsung, and
Microsoft. In addition, portfolio positions in financial issues aided
benchmark-relative returns, including holdings in PNC Financial Services,
JPMorgan Chase, BNP Paribas, and ING Groep. Mid-cap names within the
consumer discretionary sector also made positive contributions to the
Fund's performance, especially the apparel company Moncler, and Sekisui
Chemical, from Japan.
Detractors from the Fund's benchmark-relative performance included
positions in several health care distribution companies, all of which were
punished by investors following the inability of Congressional leaders to
reshape U.S. health care policy. The Fund's underperformers in the sector
included CVS, Cardinal Health, and Shire. We sold CVS and Cardinal Health
from the portfolio, but have maintained the Fund's Shire position, as we
favor the company's longer-term prospects. Within information technology,
we sold the Fund's position in Fitbit after the company underperformed due
to disappointing product innovation.
Q Did you employ derivatives in managing the Fund during the 12-month period
ended August 31, 2017, and did those investments have an effect on
performance?
A Over the 12-month period, we utilized derivative securities in the
portfolio to a limited degree, mainly to help guard against negative
currency effects. The Fund's derivative positions did not have a meaningful
effect on performance.
Q What is the Fund's positioning as of period-end, and your general outlook?
A We remain upbeat regarding the Fund's positioning within information
technology and financials, but we have recently taken some profits within
both sectors while increasing exposure to health care. Following the latter
sector's poor performance over the past 12 months, and in
Pioneer Global Equity Fund | Annual Report | 8/31/17 7
light of the fact that changes to the Affordable Care Act may not occur any
time soon, we think valuations of health care stocks should normalize and
that investors will begin focusing more on the long-term merits of
individual companies, given ongoing product innovations and an aging
population that will require more health-related services. In addition, we
have reduced the Fund's significant underweight to energy stocks, as a
number of those companies appear attractively valued after the sector's
recent slump.
Looking at market valuations more generally, we believe that the stocks
held in the Fund's portfolio are attractively valued. And, even though
there are certainly a number of stocks in the market that are overpriced,
we view many companies around the globe as having attractive near-term
prospects and favorable valuations.
We expect the global economic cycle to continue to be positive in the
coming months. Monetary policies of global central banks remain
expansionary, despite some signals that support will be reduced in the near
future. Quantitative easing is still underway in Japan and Europe, and
continues to support the markets. International markets that endured
significant volatility over the past two years are now recovering, and we
believe that the global economy remains in mid-cycle, with significant room
for growth and expansion. We also think that this global economic growth
cycle will be of a much longer duration than those we have seen in the
recent past.
Geopolitical risks certainly remain, including tensions with North Korea
and within the Middle East. Assuming those situations remain stable, we
look for consolidation of the European economic recovery, continuing
improvements in the emerging markets, and a possible reacceleration of the
U.S. economy given the massive distributions of aid and economic stimulus
to areas of the country affected by the recent hurricane season. We look
for U.S. inflation to increase somewhat, but not to a troubling level,
despite the fact that the country is close to full employment.
8 Pioneer Global Equity Fund | Annual Report | 8/31/17
For those reasons, we look for a favorable global economic environment
going forward, with manufacturing expanding and recoveries in major regions
of the world occurring in synchronized fashion. We believe such trends
should be very positive for global stocks.
Please refer to the Schedule of Investments on pages 20-27 for a full listing of
fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, 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
investments in 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.
Pioneer Global Equity Fund | Annual Report | 8/31/17 9
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Amundi Pioneer Asset Management, Inc., for
a prospectus or summary prospectus containing this information. Read it
carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
10 Pioneer Global Equity Fund | Annual Report | 8/31/17
Portfolio Summary | 8/31/17
Sector Distribution
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(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 28.9%
Information Technology 24.4%
Consumer Discretionary 13.1%
Health Care 12.6%
Industrials 7.1%
Consumer Staples 4.4%
Energy 4.3%
Telecommunication Services 2.6%
Materials 1.8%
Real Estate 0.8%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings based on country of domicile)
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL]
United States 52.0%
France 12.8%
Japan 10.8%
United Kingdom 5.9%
South Korea 3.6%
Switzerland 3.3%
Ireland 3.0%
Germany 2.8%
Indonesia 2.4%
Italy 1.3%
Taiwan 1.2%
Other (individually less than 1%) 0.9%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Apple, Inc. 4.35%
--------------------------------------------------------------------------------
2. Samsung Electronics Co., Ltd. 3.58
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3. TOTAL SA 3.51
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4. Novartis AG 3.35
--------------------------------------------------------------------------------
5. United Rentals, Inc. 3.24
--------------------------------------------------------------------------------
6. BNP Paribas SA 3.21
--------------------------------------------------------------------------------
7. Microsoft Corp. 3.01
--------------------------------------------------------------------------------
8. JPMorgan Chase & Co. 2.91
--------------------------------------------------------------------------------
9. Affiliated Managers Group, Inc. 2.77
--------------------------------------------------------------------------------
10. Valeo SA 2.67
--------------------------------------------------------------------------------
* 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 securities listed.
Pioneer Global Equity Fund | Annual Report | 8/31/17 11
Prices and Distributions | 8/31/17
Net Asset Value per Share
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--------------------------------------------------------------------------------
Class 8/31/17 8/31/16
--------------------------------------------------------------------------------
A $15.77 $13.43
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C $15.42 $13.13
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K $15.81 $13.47
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R $15.65 $13.36
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Y $15.83 $13.50
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Distributions per Share: 9/1/16-8/31/17
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--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.1686 $ -- $ --
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C $0.0635 $ -- $ --
--------------------------------------------------------------------------------
K $0.2384 $ -- $ --
--------------------------------------------------------------------------------
R $0.1530 $ -- $ --
--------------------------------------------------------------------------------
Y $0.2534 $ -- $ --
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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 13-17.
12 Pioneer Global Equity Fund | Annual Report | 8/31/17
Performance Update | 8/31/17 Class A Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Global 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, 2017)
--------------------------------------------------------------------------------
MSCI
Net Public MSCI All
Asset Offering World Country
Value Price ND World
Period (NAV) (POP) Index ND Index
--------------------------------------------------------------------------------
10 years 4.35% 3.73% 4.47% 4.23%
5 years 12.05 10.73 11.10 10.46
1 year 18.89 12.04 16.19 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2017,
as supplemented)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.45% 1.25%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI All Country
Equity Fund MSCI World ND Index World ND Index
8/07 $ 9,425 $10,000 $10,000
8/08 $ 8,421 $ 8,793 $ 8,806
8/09 $ 7,087 $ 7,279 $ 7,359
8/10 $ 7,007 $ 7,392 $ 7,616
8/11 $ 7,742 $ 8,461 $ 8,661
8/12 $ 8,168 $ 9,148 $ 9,199
8/13 $ 9,733 $10,761 $10,623
8/14 $12,276 $13,031 $12,853
8/15 $11,677 $12,492 $12,045
8/16 $12,135 $13,327 $12,917
8/17 $14,426 $15,484 $15,128
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. 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, 2019, for Class A shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information. Please refer
to the financial highlights for more recent expense ratios.
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 | 8/31/17 13
Performance Update | 8/31/17 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, 2017)
--------------------------------------------------------------------------------
MSCI
MSCI All
World Country
If If ND World
Period Held Redeemed Index ND Index
--------------------------------------------------------------------------------
10 years 3.46% 3.46% 4.47% 4.23%
5 years 11.16 11.16 11.10 10.46
1 year 18.00 18.00 16.19 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2017,
as supplemented)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.16% 2.15%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI All Country
Equity Fund MSCI World ND Index World ND Index
8/07 $10,000 $10,000 $10,000
8/08 $ 8,853 $ 8,793 $ 8,806
8/09 $ 7,386 $ 7,279 $ 7,359
8/10 $ 7,238 $ 7,392 $ 7,616
8/11 $ 7,917 $ 8,461 $ 8,661
8/12 $ 8,278 $ 9,148 $ 9,199
8/13 $ 9,777 $10,761 $10,623
8/14 $12,220 $13,031 $12,853
8/15 $11,536 $12,492 $12,045
8/16 $11,908 $13,327 $12,917
8/17 $14,051 $15,484 $15,128
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. 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, 2019, for Class C shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information. Please refer
to the financial highlights for more recent expense ratios.
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 | 8/31/17
Performance Update | 8/31/17 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
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, 2017)
--------------------------------------------------------------------------------
MSCI
Net MSCI All
Asset World Country
Value ND World
Period (NAV) Index ND Index
--------------------------------------------------------------------------------
10 years 4.48% 4.47% 4.23%
5 years 12.33 11.10 10.46
1 year 19.44 16.19 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2017,
as supplemented)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.92% 0.80%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global MSCI All Country
Equity Fund MSCI World ND Index World ND Index
8/07 $5,000,000 $5,000,000 $5,000,000
8/08 $4,465,765 $4,396,502 $4,402,840
8/09 $3,758,666 $3,639,723 $3,679,585
8/10 $3,716,038 $3,695,926 $3,808,130
8/11 $4,105,584 $4,230,328 $4,330,428
8/12 $4,331,528 $4,573,805 $4,599,598
8/13 $5,161,830 $5,380,259 $5,311,429
8/14 $6,510,424 $6,515,261 $6,426,279
8/15 $6,206,733 $6,246,183 $6,022,300
8/16 $6,486,487 $6,663,652 $6,458,564
8/17 $7,747,463 $7,742,198 $7,563,777
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
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, 2019, for Class K shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information. Please refer
to the financial highlights for more recent expense ratios.
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 | 8/31/17 15
Performance Update | 8/31/17 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, 2017)
--------------------------------------------------------------------------------
MSCI
Net MSCI All
Asset World Country
Value ND World
Period (NAV) Index ND Index
--------------------------------------------------------------------------------
10 years 4.29% 4.47% 4.23%
5 years 11.94 11.10 10.46
1 year 18.47 16.19 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2017,
as supplemented)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.68% 1.55%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI All Country
Equity Fund MSCI World ND Index World ND Index
8/07 $10,000 $10,000 $10,000
8/08 $ 8,932 $ 8,793 $ 8,806
8/09 $ 7,517 $ 7,279 $ 7,359
8/10 $ 7,432 $ 7,392 $ 7,616
8/11 $ 8,211 $ 8,461 $ 8,661
8/12 $ 8,663 $ 9,148 $ 9,199
8/13 $10,324 $10,761 $10,623
8/14 $13,021 $13,031 $12,853
8/15 $12,375 $12,492 $12,045
8/16 $12,852 $13,327 $12,917
8/17 $15,226 $15,484 $15,128
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
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, 2019, for Class R shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information. Please refer
to the financial highlights for more recent expense ratios.
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.
16 Pioneer Global Equity Fund | Annual Report | 8/31/17
Performance Update | 8/31/17 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, 2017)
--------------------------------------------------------------------------------
MSCI
Net MSCI All
Asset World Country
Value ND World
Period (NAV) Index ND Index
--------------------------------------------------------------------------------
10 years 4.79% 4.47% 4.23%
5 years 12.58 11.10 10.46
1 year 19.45 16.19 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2017,
as supplemented)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.08% 0.80%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global MSCI All Country
Equity Fund MSCI World ND Index World ND Index
8/07 $5,000,000 $5,000,000 $5,000,000
8/08 $4,465,765 $4,396,502 $4,402,840
8/09 $3,771,839 $3,639,723 $3,679,585
8/10 $3,749,438 $3,695,926 $3,808,130
8/11 $4,160,494 $4,230,328 $4,330,428
8/12 $4,413,701 $4,573,805 $4,599,598
8/13 $5,285,570 $5,380,259 $5,311,429
8/14 $6,694,470 $6,515,261 $6,426,279
8/15 $6,394,785 $6,246,183 $6,022,300
8/16 $6,682,351 $6,663,652 $6,458,564
8/17 $7,982,211 $7,742,198 $7,563,777
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
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, 2019, for Class Y shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information. Please refer
to the financial highlights for more recent expense ratios.
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 | 8/31/17 17
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, 2017, through August 31, 2017.
----------------------------------------------------------------------------------------------------
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 3/1/17
----------------------------------------------------------------------------------------------------
Ending Account $1,106.67 $1,103.73 $1,109.52 $1,105.23 $1,109.31
Value on 8/31/17
----------------------------------------------------------------------------------------------------
Expenses Paid $ 6.74 $ 10.61 $ 4.20 $ 8.22 $ 4.25
During Period*
----------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.27%,
2.00%, 0.79%, 1.55% and 0.80% for Class A, Class C, Class K, Class R 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).
18 Pioneer Global Equity Fund | Annual Report | 8/31/17
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, 2017, through August 31, 2017.
-----------------------------------------------------------------------------------------------------
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 3/1/17
-----------------------------------------------------------------------------------------------------
Ending Account $1,018.80 $1,015.12 $1,021.22 $1,017.39 $1,021.17
Value on 8/31/17
-----------------------------------------------------------------------------------------------------
Expenses Paid $ 6.46 $ 10.16 $ 4.02 $ 7.88 $ 4.08
During Period*
-----------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.27%,
2.00%, 0.79%, 1.55% and 0.80% for Class A, Class C, Class K, Class R and
Class Y shares, respectively, multiplied by the average account value over
the period, multiplied by 184/365 (to reflect the one-half year period).
Pioneer Global Equity Fund | Annual Report | 8/31/17 19
Schedule of Investments | 8/31/17
------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 99.5%
COMMON STOCKS -- 95.7%
ENERGY -- 4.3%
Integrated Oil & Gas -- 3.5%
120,047 TOTAL SA $ 6,210,051
------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.8%
16,707 EOG Resources, Inc. $ 1,419,928
-------------
Total Energy $ 7,629,979
------------------------------------------------------------------------------------------
MATERIALS -- 1.9%
Diversified Chemicals -- 0.7%
19,229 The Dow Chemical Co. $ 1,281,613
------------------------------------------------------------------------------------------
Construction Materials -- 1.2%
58,015 CRH Plc $ 2,035,488
-------------
Total Materials $ 3,317,101
------------------------------------------------------------------------------------------
CAPITAL GOODS -- 7.1%
Aerospace & Defense -- 2.5%
229,548 BAE Systems Plc $ 1,802,680
22,929 Thales SA 2,540,047
-------------
$ 4,342,727
------------------------------------------------------------------------------------------
Heavy Electrical Equipment -- 0.5%
61,100 Mitsubishi Electric Corp. $ 906,394
------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.9%
12,769 Siemens AG $ 1,669,249
------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 3.2%
48,459 United Rentals, Inc.* $ 5,721,070
-------------
Total Capital Goods $ 12,639,440
------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 3.4%
Auto Parts & Equipment -- 2.7%
70,466 Valeo SA $ 4,717,078
------------------------------------------------------------------------------------------
Tires & Rubber -- 0.7%
30,800 Bridgestone Corp. $ 1,323,687
-------------
Total Automobiles & Components $ 6,040,765
------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 5.2%
Homebuilding -- 2.0%
190,200 Sekisui Chemical Co., Ltd. $ 3,552,221
------------------------------------------------------------------------------------------
Apparel, Accessories & Luxury Goods -- 2.8%
82,393 Moncler S.p.A.* $ 2,343,954
21,008 PVH Corp. 2,644,697
-------------
$ 4,988,651
------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Equity Fund | Annual Report | 8/31/17
------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------
Footwear -- 0.4%
152,000 ANTA Sports Products, Ltd. $ 598,216
-------------
Total Consumer Durables & Apparel $ 9,139,088
------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 3.4%
Hotels, Resorts & Cruise Lines -- 2.0%
76,383 Accor SA $ 3,540,729
------------------------------------------------------------------------------------------
Restaurants -- 1.4%
42,000 KOMEDA Holdings Co, Ltd. $ 704,043
32,306 Starbucks Corp. 1,772,307
-------------
$ 2,476,350
-------------
Total Consumer Services $ 6,017,079
------------------------------------------------------------------------------------------
MEDIA -- 1.2%
Advertising -- 1.2%
115,195 WPP Plc $ 2,114,494
-------------
Total Media $ 2,114,494
------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 3.2%
Drug Retail -- 3.2%
92,000 Sundrug Co., Ltd. $ 3,828,902
22,085 Walgreens Boots Alliance, Inc. 1,799,928
-------------
$ 5,628,830
-------------
Total Food & Staples Retailing $ 5,628,830
------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.6%
Tobacco -- 0.6%
17,462 Altria Group, Inc. $ 1,107,091
-------------
Total Food, Beverage & Tobacco $ 1,107,091
------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.6%
Personal Products -- 0.6%
18,220 Unilever Plc $ 1,065,513
-------------
Total Household & Personal Products $ 1,065,513
------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.8%
Managed Health Care -- 0.8%
5,319 Humana, Inc. $ 1,370,281
-------------
Total Health Care Equipment & Services $ 1,370,281
------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 11.8%
Biotechnology -- 5.0%
26,862 Celgene Corp.* $ 3,731,938
4,779 Esperion Therapeutics, Inc.* 236,178
36,975 Gilead Sciences, Inc.* 3,095,177
36,360 Shire Plc 1,810,467
-------------
$ 8,873,760
------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/17 21
Schedule of Investments | 8/31/17 (continued)
------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------
Pharmaceuticals -- 6.8%
27,854 Merck & Co., Inc. $ 1,778,756
70,197 Novartis AG 5,915,479
131,411 Pfizer, Inc. 4,457,461
-------------
$ 12,151,696
-------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 21,025,456
------------------------------------------------------------------------------------------
BANKS -- 12.9%
Diversified Banks -- 12.1%
458,605 Aldermore Group Plc $ 1,337,226
2,363,400 Bank Rakyat Indonesia Persero Tbk PT 2,683,993
74,590 BNP Paribas SA 5,680,332
39,108 Citigroup, Inc. 2,660,517
56,570 JPMorgan Chase & Co. 5,141,647
652,700 Mitsubishi UFJ Financial Group, Inc. 3,976,115
-------------
$ 21,479,830
------------------------------------------------------------------------------------------
Regional Banks -- 0.8%
6,602,700 Bank Tabungan Negara Persero Tbk PT $ 1,488,982
-------------
Total Banks $ 22,968,812
------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 9.9%
Consumer Finance -- 2.5%
47,697 Discover Financial Services, Inc. $ 2,811,738
52,869 Synchrony Financial 1,627,837
-------------
$ 4,439,575
------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 6.2%
27,674 Affiliated Managers Group, Inc.* $ 4,889,719
5,182 BlackRock, Inc. 2,171,310
6,658 Invesco, Ltd. 218,249
23,534 T. Rowe Price Group, Inc. 1,985,328
52,192 The Blackstone Group LP 1,708,244
-------------
$ 10,972,850
------------------------------------------------------------------------------------------
Financial Exchanges & Data -- 1.2%
29,537 Nasdaq, Inc. $ 2,226,499
-------------
Total Diversified Financials $ 17,638,924
------------------------------------------------------------------------------------------
INSURANCE -- 2.2%
Insurance Brokers -- 0.8%
9,798 Willis Towers Watson Plc $ 1,454,709
------------------------------------------------------------------------------------------
Multi-line Insurance -- 1.4%
11,101 Allianz SE* $ 2,374,926
-------------
Total Insurance $ 3,829,635
------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Equity Fund | Annual Report | 8/31/17
------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 13.8%
Internet Software & Services -- 6.5%
3,805 Alphabet, Inc. (Class A) $ 3,634,688
3,888 Alphabet, Inc. (Class C) 3,652,115
95,300 eBay, Inc.* 3,443,189
35,833 Rocket Internet SE* 823,216
-------------
$ 11,553,208
------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 2.5%
473,000 Fujitsu, Ltd. $ 3,530,661
63,439 HCL Technologies, Ltd. 848,207
-------------
$ 4,378,868
------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 1.8%
22,290 PayPal Holdings, Inc. $ 1,374,847
18,482 Visa, Inc. 1,913,257
-------------
$ 3,288,104
------------------------------------------------------------------------------------------
Systems Software -- 3.0%
71,284 Microsoft Corp. $ 5,329,905
-------------
Total Software & Services $ 24,550,085
------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 8.4%
Communications Equipment -- 0.5%
332,000 Accton Technology Corp. $ 873,883
------------------------------------------------------------------------------------------
Computer Storage & Peripherals -- 4.3%
46,901 Apple, Inc. $ 7,691,765
------------------------------------------------------------------------------------------
Technology Hardware, Storage & Peripherals -- 3.6%
3,057 Samsung Electronics Co., Ltd. $ 6,338,483
------------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.0%+
26,225 Global Display Co., Ltd. $ 97,046
-------------
Total Technology Hardware & Equipment $ 15,001,177
------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.0%
Semiconductors -- 2.0%
75,391 Micron Technology, Inc.* $ 2,410,250
168,000 Taiwan Semiconductor Manufacturing Co., Ltd. 1,211,649
-------------
$ 3,621,899
-------------
Total Semiconductors & Semiconductor Equipment $ 3,621,899
------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.6%
Integrated Telecommunication Services -- 0.7%
25,000 Nippon Telegraph & Telephone Corp. $ 1,244,745
------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.9%
1,193,817 Vodafone Group Plc $ 3,415,521
-------------
Total Telecommunication Services $ 4,660,266
------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/17 23
Schedule of Investments | 8/31/17 (continued)
------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------
REAL ESTATE -- 0.4%
Real Estate Services -- 0.4%
67,452 Savills Plc $ 772,435
-------------
Total Real Estate $ 772,435
------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $143,252,933) $ 170,138,350
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Principal
Amount ($)
------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 3.8%
4,390,000 U.S. Treasury Bills, 9/28/17 (b) $ 4,386,938
2,285,000 U.S. Treasury Bills, 9/7/17 (b) 2,284,665
------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $6,671,561) $ 6,671,603
------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN UNAFFILIATED ISSUERS -- 99.5%
(Cost $149,924,494) (a) $ 176,809,953
------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.5% $ 890,265
------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 177,700,218
==========================================================================================
+ Amount rounds to less than 0.1%.
* Non-income producing security.
(a) Distributions of investments by country of issue, as a percentage of total
investment in securities (excluding temporary cash investments), are as
follows:
United States 52.0%
France 12.8%
Japan 10.8%
United Kingdom 5.9%
South Korea 3.6%
Switzerland 3.3%
Ireland 3.0%
Germany 2.8%
Indonesia 2.4%
Italy 1.3%
Taiwan 1.2%
Other (individually less than 1%) 0.9%
-----
100.0%
=====
(b) Security issued with a zero coupon. Income is earned through accretion of
discount.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2017 aggregated to $133,465,263 and $143,486,548,
respectively.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Equity Fund | Annual Report | 8/31/17
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain Funds and accounts for which Amundi Pioneer Asset
Management, Inc., formerly Pioneer Investment Management, Inc. (the Adviser)
serves as investment adviser, as set forth in Rule 17a-7 under the Investment
Company Act of 1940, pursuant to procedures adopted by the Board of Trustees.
Under these procedures, cross trades are effected at current market prices.
During the year ended August 31, 2017, the Fund engaged in purchases and sales
pursuant to these procedures amounting to $3,340,343 and $4,627,694,
respectively, which resulted in a net realized loss of $524.
SWAP CONTRACTS
TOTAL RETURN SWAP AGREEMENTS
-----------------------------------------------------------------------------------------------------------------------
Obligation Annual Premiums Unrealized
Notional Counter- Entity/ Pay/ Fixed Pay/ Floating Expiration Paid/ Appreciation/
Amount ($)(1) party Index Receive Rate Receive Rate Date Received Value
-----------------------------------------------------------------------------------------------------------------------
JPY 123,810 Societe Solactive Receive 0.39% Pay 3M Libor + 9/12/17 $ -- $26,774
Generale SA Japanese 40 bps
Buyback
Index
-----------------------------------------------------------------------------------------------------------------------
TOTAL SWAP CONTRACTS $ -- $26,774
=======================================================================================================================
(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.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
JPY Japanese Yen
FUTURES CONTRACTS
CURRENCY FUTURES CONTRACTS
--------------------------------------------------------------------------------
Settlement
Contracts Month/ Notional Market Unrealized
(Short) Description Year Amount Value Depreciation
--------------------------------------------------------------------------------
(24) Euro FX Currency 9/17 (3,503,264) $(3,573,600) $(70,336)
--------------------------------------------------------------------------------
TOTAL FUTURES CONTRACTS $(70,336)
================================================================================
At August 31, 2017, the net unrealized appreciation on investments based on cost
for federal income tax purposes of $150,237,541 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $29,516,142
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (2,987,292)
-----------
Net unrealized appreciation $26,528,850
===========
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.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/17 25
Schedule of Investments | 8/31/17 (continued)
The following is a summary of the inputs used as of August 31, 2017, in valuing
the Fund's investments:
------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------------------
Common Stocks
Energy
Integrated Oil & Gas $ -- $ 6,210,051 $ -- $ 6,210,051
Materials
Construction Materials -- 2,035,488 -- 2,035,488
Capital Goods
Aerospace & Defense -- 4,342,727 -- 4,342,727
Heavy Electrical Equipment -- 906,394 -- 906,394
Industrial Conglomerates -- 1,669,249 -- 1,669,249
Automobiles & Components
Auto Parts & Equipment -- 4,717,078 -- 4,717,078
Tires & Rubber -- 1,323,687 -- 1,323,687
Consumer Durables & Apparel
Homebuilding -- 3,552,221 -- 3,552,221
Apparel, Accessories &
Luxury Goods 2,644,697 2,343,954 -- 4,988,651
Footwear -- 598,216 -- 598,216
Consumer Services
Hotels, Resorts & Cruise Lines -- 3,540,729 -- 3,540,729
Restaurants 1,772,307 704,043 -- 2,476,350
Media
Advertising -- 2,114,494 -- 2,114,494
Food & Staples Retailing
Drug Retail 1,799,928 3,828,902 -- 5,628,830
Household & Personal Products
Personal Products -- 1,065,513 -- 1,065,513
Pharmaceuticals, Biotechnology &
Life Sciences
Biotechnology 7,063,293 1,810,467 -- 8,873,760
Pharmaceuticals 6,236,217 5,915,479 -- 12,151,696
Banks
Diversified Banks 7,802,164 13,677,666 -- 21,479,830
Regional Banks -- 1,488,982 -- 1,488,982
Insurance
Multi-line Insurance -- 2,374,926 -- 2,374,926
Software & Services
Internet Software & Services 10,729,992 823,216 -- 11,553,208
IT Consulting & Other Services -- 4,378,868 -- 4,378,868
Technology Hardware & Equipment
Communications Equipment -- 873,883 -- 873,883
Technology Hardware,
Storage & Peripherals -- 6,338,483 -- 6,338,483
Electronic Manufacturing Services -- 97,046 -- 97,046
Semiconductors &
Semiconductor Equipment
Semiconductors 2,410,250 1,211,649 -- 3,621,899
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Equity Fund | Annual Report | 8/31/17
-------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------------
Telecommunication Services
Integrated Telecommunication
Services $ -- $ 1,244,745 $ -- $ 1,244,745
Wireless Telecommunication
Services -- 3,415,521 -- 3,415,521
Real Estate
Real Estate Services -- 772,435 -- 772,435
All Other Common Stocks 46,303,390 -- -- 46,303,390
US Government and
Agency Obligations -- 6,671,603 -- 6,671,603
-------------------------------------------------------------------------------------------------
Total $86,762,238 $90,047,715 $ -- $ 176,809,953
=================================================================================================
During the year ended August 31, 2017, there were no transfers between Levels 1,
2 and 3.
-------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------------
Other Financial Instruments
Unrealized appreciation on
swap contracts $ -- $ 26,774 $ -- $ 26,774
Unrealized depreciation on
future contracts (70,336) -- -- (70,336)
-------------------------------------------------------------------------------------------------
Total Other Financial Instruments $ (70,336) $ 26,774 $ -- $ (43,562)
=================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/17 27
Statement of Assets and Liabilities | 8/31/17
ASSETS:
Investment in securities of unaffiliated issuers, at value (cost $149,924,494) $ 176,809,953
Cash 5,269,826
Foreign currencies, at value (cost $153,396) 154,592
Futures collateral 110,000
Receivables --
Investment securities sold 125,725
Fund shares sold 225,825
Dividends 353,567
Swap contracts, at value (net premiums paid $-) 26,774
Due from broker for futures 70,287
Due from the Adviser 73,507
Other assets 26,546
-------------------------------------------------------------------------------------------------
Total assets $ 183,246,602
=================================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 5,187,222
Fund shares repurchased 91,486
Trustee fees 1,118
Unrealized depreciation on open futures contracts 70,336
Variation margin for futures contracts 2,850
Due to affiliates 91,483
Accrued expenses 101,889
-------------------------------------------------------------------------------------------------
Total liabilities $ 5,546,384
=================================================================================================
NET ASSETS:
Paid-in capital $ 142,845,471
Undistributed net investment income 909,322
Accumulated net realized gain on investments 7,098,460
Net unrealized appreciation on investments 26,846,965
-------------------------------------------------------------------------------------------------
Net assets $ 177,700,218
=================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $78,417,210/4,971,505 shares) $ 15.77
Class C (based on $12,056,342/782,090 shares) $ 15.42
Class K (based on $56,693,379/3,585,591 shares) $ 15.81
Class R (based on $17,586,525/1,123,431 shares) $ 15.65
Class Y (based on $12,946,762/817,691 shares) $ 15.83
MAXIMUM OFFERING PRICE:
Class A ($15.77 (divided by) 94.25%) $ 16.73
=================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Equity Fund | Annual Report | 8/31/17
Statement of Operations
For the Year Ended 8/31/17
INVESTMENT INCOME:
Dividends from unaffiliated issuers (net of foreign taxes
withheld of $239,725) $ 3,297,395
Interest from unaffiliated issuers (net of foreign taxes
withheld of $4,395) 59,877
-----------------------------------------------------------------------------------------------
Total investment income $ 3,357,272
-----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,222,796
Transfer agent fees
Class A 115,366
Class C 18,804
Class K 54
Class R 42,865
Class Y 9,443
Distribution fees
Class A 181,807
Class C 120,021
Class R 82,123
Shareholder communications expense 59,041
Administrative expense 101,385
Custodian fees 59,847
Registration fees 88,141
Professional fees 64,828
Printing expense 37,115
Fees and expenses of nonaffiliated Trustees 7,370
Miscellaneous 17,306
-----------------------------------------------------------------------------------------------
Total expenses $ 2,228,312
Less fees waived and expenses reimbursed by the Adviser (322,326)
-----------------------------------------------------------------------------------------------
Net expenses $ 1,905,986
-----------------------------------------------------------------------------------------------
Net investment income $ 1,451,286
-----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments from unaffiliated issuers $13,008,625
Futures contracts (172,721)
Swap contracts 1,639,855
Other assets and liabilities denominated in
foreign currencies (86,624) $14,389,135
-----------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments from unaffiliated issuers $12,723,024
Futures contracts (70,336)
Swap contracts 26,774
Other assets and liabilities denominated in foreign currencies 17,427 $12,696,889
-----------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $27,086,024
-----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $28,537,310
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/17 29
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/2017 8/31/2016*
----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 1,451,286 $ 2,077,660
Net realized gain (loss) on investments 14,389,135 (7,340,989)
Change in net unrealized appreciation (depreciation) on
investments 12,696,889 10,633,268
----------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 28,537,310 $ 5,369,939
----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.17 and $0.08 per share, respectively) $ (860,989) $ (471,470)
Class C ($0.06 and $0.00 per share, respectively) (55,611) --
Class K ($0.24 and $0.15 per share, respectively) (924,024) (589,987)
Class R ($0.15 and $0.13 per share, respectively) (172,785) (76,329)
Class Y ($0.25 and $0.15 per share, respectively) (145,060) (271,227)
----------------------------------------------------------------------------------------
Total distributions to shareowners $ (2,158,469) $ (1,409,013)
----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS: (a)
Net proceeds from sale of shares $ 25,442,861 $ 33,783,592
Reinvestment of distributions 1,004,283 658,359
Cost of shares repurchased (35,863,738) (48,756,116)
----------------------------------------------------------------------------------------
Net decrease in net assets resulting from Fund
share transactions $ (9,416,594) $ (14,314,165)
----------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 16,962,247 $ (10,353,239)
NET ASSETS:
Beginning of year $160,737,971 $ 171,091,210
----------------------------------------------------------------------------------------
End of year $177,700,218 $ 160,737,971
----------------------------------------------------------------------------------------
Undistributed net investment income $ 909,322 $ 1,717,208
========================================================================================
(a) At August 31, 2017, Pioneer Asset Allocation Trust owned 27.4% of the value
of outstanding shares of Pioneer Global Equity Fund.
* The Fund was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Equity Fund | Annual Report | 8/31/17
----------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
8/31/2017 8/31/2017 8/31/2016 8/31/2016
Shares Amount Shares* Amount*
----------------------------------------------------------------------------------------
Class A
Shares sold 501,676 $ 7,310,949 911,559 $ 11,889,430
Reinvestment of distributions 61,082 827,065 33,914 450,034
Less shares repurchased (1,124,071) (15,803,442) (1,344,828) (17,206,097)
----------------------------------------------------------------------------------------
Net decrease (561,313) $ (7,665,428) (399,355) $ (4,866,633)
========================================================================================
Class C
Shares sold 178,880 $ 2,530,087 222,781 $ 2,826,420
Reinvestment of distributions 3,968 52,774 -- --
Less shares repurchased (327,861) (4,621,635) (360,772) (4,537,583)
----------------------------------------------------------------------------------------
Net decrease (145,013) $ (2,038,774) (137,991) $ (1,711,163)
========================================================================================
Class K
Shares sold -- $ -- -- $ --
Reinvestment of distributions -- -- -- --
Less shares repurchased (290,349) (4,168,272) (290,122) (3,661,494)
----------------------------------------------------------------------------------------
Net decrease (290,349) $ (4,168,272) (290,122) $ (3,661,494)
========================================================================================
Class R
Shares sold 372,467 $ 5,188,282 1,056,022 $ 13,514,533
Reinvestment of distributions -- -- -- --
Less shares repurchased (339,305) (4,879,933) (143,077) (1,834,686)
----------------------------------------------------------------------------------------
Net increase 33,162 $ 308,349 912,945 $ 11,679,847
========================================================================================
Class Y
Shares sold 707,014 $ 10,413,543 426,331 $ 5,553,209
Reinvestment of distributions 9,184 124,444 15,675 208,325
Less shares repurchased (450,320) (6,390,456) (1,713,296) (21,516,256)
----------------------------------------------------------------------------------------
Net increase (decrease) 265,878 $ 4,147,531 (1,271,290) $ (15,754,722)
========================================================================================
* The Fund was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/17 31
Financial Highlights
----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/2017 8/31/2016** 8/31/2015** 8/31/2014** 8/31/2013
----------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 13.43 $ 13.00 $ 14.05 $ 11.31 $ 9.64
----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.11(a) $ 0.14(a) $ 0.07 $ 0.27 $ 0.15
Net realized and unrealized gain (loss) on investments 2.40 0.37 (0.74) 2.67 1.68
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.51 $ 0.51 $ (0.67) $ 2.94 $ 1.83
----------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.17) $ (0.08) $ (0.38) $ (0.20) $ (0.16)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.34 $ 0.43 $ (1.05) $ 2.74 $ 1.67
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.77 $ 13.43 $ 13.00 $ 14.05 $ 11.31
============================================================================================================================
Total return* 18.89% 3.92% (4.88)% 26.13% 19.17%
Ratio of net expenses to average net assets 1.27% 1.30% 1.30% 1.30% 1.30%
Ratio of net investment income (loss) to average net assets 0.79% 1.08% 0.60% 2.01% 1.35%
Portfolio turnover rate 85% 88% 109% 121% 160%
Net assets, end of period (in thousands) $78,417 $74,333 $77,115 $76,638 $62,996
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 1.46% 1.45% 1.50% 1.56% 1.67%
Net investment income (loss) to average net assets 0.60% 0.94% 0.40% 1.75% 0.98%
============================================================================================================================
* 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 Fund was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global Equity Fund | Annual Report | 8/31/17
------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/2017 8/31/2016** 8/31/2015** 8/31/2014** 8/31/2013
------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 13.13 $ 12.72 $ 13.78 $ 11.11 $ 9.47
------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.01(b) $ 0.04(b) $ (0.08)(a) $ 0.14 $ 0.05
Net realized and unrealized gain (loss) on investments 2.34 0.37 (0.68) 2.63 1.66
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.35 $ 0.41 $ (0.76) $ 2.77 $ 1.71
------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.06) $ -- $ (0.30) $ (0.10) $ (0.07)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.29 $ 0.41 $ (1.06) $ 2.67 $ 1.64
------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.42 $ 13.13 $ 12.72 $ 13.78 $ 11.11
========================================================================================================================
Total return* 18.00% 3.22% (5.60)% 24.98% 18.11%
Ratio of net expenses to average net assets 2.00% 2.03% 2.05% 2.20% 2.20%
Ratio of net investment income (loss) to average net assets 0.07% 0.35% (0.14)% 1.13% 0.45%
Portfolio turnover rate 85% 88% 109% 121% 160%
Net assets, end of period (in thousands) $12,056 $12,170 $13,552 $ 8,427 $ 6,516
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 2.19% 2.16% 2.21% 2.35% 2.51%
Net investment income (loss) to average net assets (0.12)% 0.22% (0.30)% 0.98% 0.14%
========================================================================================================================
* 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 Fund was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
(a) The amount shown for a share outstanding does not correspond with net
investment income on the Statement of Operations for the relevant period
due to timing of the sales and repurchase of shares.
(b) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/17 33
Financial Highlights (continued)
-----------------------------------------------------------------------------------------
Year Year 12/31/2014
Ended Ended to
8/31/2017 8/31/2016**** 8/31/2015****
-----------------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 13.47 $ 13.03 $ 13.51
-----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.18(a) $ 0.21(a) $ 0.11
Net realized and unrealized gain (loss)
on investments 2.40 0.38 (0.59)
-----------------------------------------------------------------------------------------
Net increase (decrease) from
investment operations $ 2.58 $ 0.59 $ (0.48)
-----------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.24) $ (0.15) $ --
-----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.34 $ 0.44 $ (0.48)
-----------------------------------------------------------------------------------------
Net asset value, end of period $ 15.81 $ 13.47 $ 13.03
=========================================================================================
Total return* 19.44% 4.51% (3.55)%***
Ratio of net expenses to average net assets 0.79% 0.79% 0.79%**
Ratio of net investment income (loss) to
average net assets 1.26% 1.58% 1.44%**
Portfolio turnover rate 85% 88% 109%
Net assets, end of period (in thousands) $56,693 $52,222 $54,305
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 0.98% 0.92% 0.95%**
Net investment income (loss) to average
net assets 1.07% 1.45% 1.28%**
=========================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
*** Not annualized.
**** The Fund was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global Equity Fund | Annual Report | 8/31/17
----------------------------------------------------------------------------------------
Year Year 7/1/2015
Ended Ended to
8/31/2017 8/31/2016**** 8/31/2015****
----------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 13.36 $ 12.99 $ 14.08
----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.08(a) $ 0.13(a) $ 0.00(b)
Net realized and unrealized gain (loss)
on investments 2.36 0.37 (1.09)
----------------------------------------------------------------------------------------
Net increase (decrease) from
investment operations $ 2.44 $ 0.50 $ (1.09)
----------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.15) $ (0.13) $ --
----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.29 $ 0.37 $ (1.09)
----------------------------------------------------------------------------------------
Net asset value, end of period $ 15.65 $ 13.36 $ 12.99
========================================================================================
Total return* 18.47% 3.85% (7.74)%***
Ratio of net expenses to average net assets 1.55% 1.55% 1.38%**
Ratio of net investment income (loss) to
average net assets 0.54% 1.04% 0.25%**
Portfolio turnover rate 85% 88% 109%
Net assets, end of period (in thousands) $17,587 $14,562 $ 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 1.75% 1.68% 1.55%**
Net investment income (loss) to average
net assets 0.34% 0.91% 0.08%**
========================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
*** Not annualized.
**** The Fund was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Amount rounds to less than $0.01 or ($0.01) per share.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/17 35
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/2017 8/31/2016** 8/31/2015** 8/31/2014** 8/31/2013
---------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 13.50 $ 13.06 $ 14.12 $ 11.37 $ 9.69
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.18(a) $ 0.20(a) $ 0.01 $ 0.37 $ 0.20
Net realized and unrealized gain (loss) on investments 2.40 0.39 (0.62) 2.63 1.69
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.58 $ 0.59 $ (0.61) $ 3.00 $ 1.89
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.25) $ (0.15) $ (0.45) $ (0.25) $ (0.21)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.33 $ 0.44 $ (1.06) $ 2.75 $ 1.68
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.83 $ 13.50 $ 13.06 $ 14.12 $ 11.37
===========================================================================================================================
Total return* 19.45% 4.50% (4.48)% 26.66% 19.75%
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 1.22% 1.55% 0.85% 2.58% 1.85%
Portfolio turnover rate 85% 88% 109% 121% 160%
Net assets, end of period (in thousands) $12,947 $ 7,450 $23,815 $70,384 $71,726
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 1.10% 1.08% 0.96% 0.95% 1.00%
Net investment income (loss) to average net assets 0.92% 1.27% 0.69% 2.43% 1.65%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** The Fund was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
36 Pioneer Global Equity Fund | Annual Report | 8/31/17
Notes to Financial Statements | 8/31/17
1. Organization and Significant Accounting Policies
Pioneer Global Equity Fund (the Fund) is one of three 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 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. 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 K and Class Y shares.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world. Amundi, one of the world's
largest asset managers, is headquartered in Paris, France. As a result of the
transaction, Pioneer Investment Management, Inc., the Fund's investment adviser,
became an indirect wholly owned subsidiary of Amundi and Amundi's wholly owned
subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer Investments was
owned by Pioneer Global Asset Management S.p.A., a wholly owned subsidiary of
UniCredit S.p.A.
In connection with the transaction, the names of the Fund's investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc.
(the Adviser) and the name of Pioneer Funds Distributor, Inc. changed to Amundi
Pioneer Distributor, Inc. (the Distributor).
Pioneer Global Equity Fund | Annual Report | 8/31/17 37
In October 2016, the Securities and Exchange Commission (SEC) released its Final
Rule on Investment Company Reporting Modernization. In addition to introducing
two new regulatory reporting forms (Form N-PORT and Form N-CEN), the Final Rule
amends Regulation S-X, which impacts financial statement presentation,
particularly related to the presentation of derivative investments. Financial
statements with a period end date on or after August 1, 2017 are required to be
in compliance with the amendments to Regulation S-X. The Fund's financial
statements were prepared in compliance with the amendments to Regulation S-X.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles (U.S. GAAP) that require the management
of the Fund to make estimates and assumptions that affect the reported amounts
of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the financial statements, and the reported amounts of income,
expenses and gain or loss on investments during the reporting period. Actual
results could differ from those estimates.
The Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the New
York Stock Exchange (NYSE) is open, as of the close of regular trading on
the NYSE.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
The principal exchanges and markets for non-U.S. equity 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 Fund uses a fair
value model
38 Pioneer Global Equity Fund | Annual Report | 8/31/17
developed by an independent pricing service to value non-U.S. equity
securities. On a daily basis, the pricing service recommends changes, based
on a proprietary model, to the closing market prices of each non-U.S.
security held by the Fund to reflect the security's fair value at the time
the Fund determines its net asset value. The Fund applies these
recommendations in accordance with procedures approved by the Board of
Trustees.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to supply
prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Cash may include overnight deposits at approved financial institutions.
Futures contracts are generally valued at the closing settlement price
established by the exchange on which they are traded.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealers Association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Securities or loan interests for which independent pricing services or
broker dealers are unable to supply prices or for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued by a fair valuation team comprised of certain
personnel of the Adviser pursuant to procedures adopted by the Fund's Board
of Trustees. The Adviser's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. The Adviser's
fair valuation team is responsible for monitoring developments that may
impact fair valued securities and for discussing and assessing fair values
on an ongoing basis, and at least quarterly, with the Valuation Committee
of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods
Pioneer Global Equity Fund | Annual Report | 8/31/17 39
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, 2017, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services).
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.
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. 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, 2017, 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.
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
40 Pioneer Global Equity Fund | Annual Report | 8/31/17
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.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary 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, 2017, the Fund
reclassified $100,703 to decrease undistributed net investment income and
$100,703 to increase accumulated net realized gain on investments to
reflect permanent book/tax differences. These adjustments have no impact on
the net assets or results of operations.
During the year ended August 31, 2017, a capital loss carryforward of
$6,514,026 was utilized to offset net realized gains by the Fund.
The tax character of distributions paid during the years ended August 31,
2017 and August 31, 2016 was as follows:
---------------------------------------------------------------------------
2017 2016
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $2,158,469 $1,409,013
---------------------------------------------------------------------------
Total $2,158,469 $1,409,013
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2017:
---------------------------------------------------------------------------
2017
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 907,943
Undistributed long-term capital gain 7,412,886
Net unrealized appreciation 26,533,918
---------------------------------------------------------------------------
Total $34,854,747
===========================================================================
The difference between book basis and tax basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales, the mark to
market of swaps and futures contracts and tax adjustments on partnerships.
D. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor earned $8,310 in underwriting commissions on the sale of Class
A shares during the year ended August 31, 2017.
Pioneer Global Equity Fund | Annual Report | 8/31/17 41
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. 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 Fund's transfer agent
for its services are allocated among the classes of shares based on the
number of accounts in each class and the ratable allocation of related
out-of-pocket expenses (see Note 3).
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.
G. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
42 Pioneer Global Equity Fund | Annual Report | 8/31/17
H. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency rates or
to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
August 31, 2017, was $110,000 and is recorded as "Futures collateral" in
the Statement of Assets and Liabilities. Subsequent payments for futures
contracts (variation margin) are paid or received by the Fund, depending on
the daily fluctuation in the value of the contracts, and are recorded by
the Fund as unrealized appreciation or depreciation. 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, 2017, was $(1,009,294).
Open futures contracts at August 31, 2017 are listed in the Schedule of
Investments.
I. 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
Pioneer Global Equity Fund | Annual Report | 8/31/17 43
in the Statement of Operations. Total return swap contracts are subject to
counterparty risk and unanticipated movements in value of exchange rates,
interest rates, securities or the index.
Open total return swap contracts at August 31, 2017 are listed at the end
of the Schedule of Investments. The average value of swap contracts open
during the year ended August 31, 2017 was $136,764.
2. Management Agreement
The Adviser 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, 2017, the effective management fee (excluding waivers
and/or assumption of expenses) was equivalent to 0.75% of the Fund's average
daily net assets.
The Adviser has contractually agreed to limit ordinary operating expenses
(ordinary operating expenses means all fund expenses other than extraordinary
expenses, such as litigation, taxes, brokerage commissions and acquired fund
fees and expenses) of the Fund to the extent required to reduce Fund expenses to
1.25%, 2.15%, 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. Prior to August 1, 2017 for, Class A and Class C shares,
respectively, the Adviser had contractually agreed to limit ordinary operating
expenses to 1.30% and 2.20%. Fees waived and expenses reimbursed during the year
ended August 31, 2017, are reflected on the Statement of Operations. These
expense limitations are in effect through January 1, 2019. There can be no
assurance that the Adviser will extend the expense limitation agreement for a
class of shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$81,623 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at August 31, 2017.
3. Transfer Agent
Boston Financial Data Services, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
44 Pioneer Global Equity Fund | Annual Report | 8/31/17
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings and outgoing phone calls. For the year
ended August 31, 2017, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $52,060
Class C 6,109
Class K 100
Class R 631
Class Y 141
--------------------------------------------------------------------------------
Total: $59,041
================================================================================
4. Distribution Plan
The Fund has adopted a distribution plan (the Plan) pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A, Class C and
Class R shares. Pursuant to the Plan, the Fund pays the Distributor 0.25% of
the average daily net assets attributable to Class A shares as compensation for
personal services and/or account maintenance services or distribution
services with regard to Class A shares. Pursuant to the Plan, the Fund also
pays the Distributor 1.00% of the average daily net assets attributable to
Class C shares. The fee for Class C shares consists of a 0.25% service fee and a
0.75% distribution fee paid as compensation for personal services and/or
account maintenance services or distribution services with regard to Class C
shares. Pursuant to the Plan, the Fund further pays the Distributor 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 $9,860 in distribution fees payable to the Distributor at
August 31, 2017.
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 K, Class R and
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
Pioneer Global Equity Fund | Annual Report | 8/31/17 45
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, Class R
and Class Y shares. Proceeds from the CDSCs are paid to the Distributor. For
the year ended August 31, 2017, CDSCs in the amount of $1,428 were paid to
the Distributor.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in which the Fund participated until February 9, 2016 was in the
amount of $240 million. The credit facility in which the Fund participated until
February 7, 2017, was in the amount of $220 million. Effective February 8, 2017,
the Fund participates in a facility that is in the amount of $25 million. Under
such facility, depending on the type of loan, interest on borrowings is payable
at the London Interbank Offered Rate (LIBOR) plus 0.90% on an annualized basis,
or the Alternate Base Rate, which is the greater of (a) the facility's
administrative agent's daily announced prime rate on the borrowing date, (b) 2%
plus the Federal Funds Rate on the borrowing date or (c) 2% plus the overnight
Eurodollar rate on the borrowing date. The Funds pay an annual commitment fee to
participate in a credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the year ended August 31, 2017, the Fund had no borrowings under
the credit facility.
6. 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 an event of default
and/or a termination event as defined under the relevant ISDA Master Agreement.
The ISDA Master Agreement may also give a party the right to terminate all
transactions traded under such agreement if, among other things, there is
deterioration in the credit quality of the other party. Upon an event of default
or a termination of the ISDA Master Agreement, the non-defaulting party has the
right to close out all transactions under such agreement and to net amounts owed
under each transaction to determine one net amount payable by one party to the
other. The right to close out and net payments across all transactions under the
ISDA Master Agreement could result in a reduction of the Fund's credit risk to
its counterparty equal to any
46 Pioneer Global Equity Fund | Annual Report | 8/31/17
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." 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, 2017.
---------------------------------------------------------------------------------------------------------
Derivative Assets Derivatives Non-Cash Cash Net Amount
Subject to Master Available for Collateral Collateral of Derivative
Counterparty Netting Agreement Offset Received (a) Received (a) Assets (b)
---------------------------------------------------------------------------------------------------------
Societe
Generale SA $26,774 $-- $-- $-- $26,774
---------------------------------------------------------------------------------------------------------
Total $26,774 $-- $-- $-- $26,774
=========================================================================================================
---------------------------------------------------------------------------------------------------------
Derivative Liabilities Derivatives Non-Cash Cash Net Amount
Subject to Master Available for Collateral Collateral of Derivative
Counterparty Netting Agreement Offset Pledged (a) Pledged (a) Liabilities (c)
---------------------------------------------------------------------------------------------------------
Societe
Generale SA $-- $-- $-- $-- $--
---------------------------------------------------------------------------------------------------------
Total $-- $-- $-- $-- $--
=========================================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged, as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
Pioneer Global Equity Fund | Annual Report | 8/31/17 47
7. Additional Disclosures about Derivative Instruments and Hedging Activities
The Fund's use of derivatives may subject it to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or
commodity index will fluctuate based on increases or decreases in the
commodities market and factors specific to a particular industry or
commodity.
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Assets and Liabilities
by risk exposure at August 31, 2017, was as follows:
--------------------------------------------------------------------------------
Statement of Foreign
Assets and Interest Credit Exchange Equity Commodity
Liabilities Rate Risk Risk Rate Risk Risk Risk
--------------------------------------------------------------------------------
Assets
Unrealized
appreciation on
total return
swap agreements $-- $-- $-- $26,774 $--
--------------------------------------------------------------------------------
Total Value $-- $-- $-- $26,774 $--
================================================================================
Liabilities
Unrealized
depreciation on
open futures
contracts* $-- $-- $70,336 $-- $--
--------------------------------------------------------------------------------
Total Value $-- $-- $70,336 $-- $--
================================================================================
* Reflects unrealized appreciation/depreciation of futures contracts (see
Note 1H). The current day's variation margin is disclosed on the Statement
of Assets and Liabilities.
48 Pioneer Global Equity Fund | Annual Report | 8/31/17
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at August 31, 2017, was as follows:
----------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Operations Rate Risk Risk Rate Risk Risk Risk
----------------------------------------------------------------------------------
Net realized gain
(loss) on:
Futures contracts $-- $-- $39,667 $ (212,388) $--
Swap contracts -- -- -- 1,639,855 --
----------------------------------------------------------------------------------
Total Value $-- $-- $39,667 $1,427,467 $--
==================================================================================
----------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Equity Commodity
Operations Rate Risk Risk Rate Risk Risk Risk
----------------------------------------------------------------------------------
Change in net
unrealized
appreciation
(depreciation) on
Futures contracts $-- $-- $(70,336) $ -- $--
Swap contracts -- -- -- 26,774 --
----------------------------------------------------------------------------------
Total Value $-- $-- $(70,336) $ 26,774 $--
==================================================================================
8. Results of Shareholder Meeting
At a special meeting held on June 13, 2017, shareholders of the Fund were asked
to consider the proposals described below. A report of the total votes cast by
the Fund's shareholders (or, with respect to Proposal 2, by shareholders of
Pioneer Series Trust V, as noted below) follows:
-------------------------------------------------------------------------------------
For Against Abstain Broker Non-Votes
-------------------------------------------------------------------------------------
Proposal 1 - To approve 6,767,569.098 80,524.013 149,059.950 1,375,826.451
an New Management
Agreement with
the Adviser
--------------------------------------------------------------------------------
For Withhold
--------------------------------------------------------------------------------
Proposal 2 - To elect Trustees*
--------------------------------------------------------------------------------
David R. Bock 52,906,413.845 1,033,842.093
--------------------------------------------------------------------------------
Benjamin M. Friedman 52,887,736.342 1,052,519.596
--------------------------------------------------------------------------------
Margaret B.W. Graham 52,932,507.056 1,007,748.882
--------------------------------------------------------------------------------
Lisa M. Jones 52,966,747.756 973,508.182
--------------------------------------------------------------------------------
Lorraine H. Monchak 52,946,675.492 993,580.446
--------------------------------------------------------------------------------
Thomas J. Perna 52,911,994.971 1,028,260.967
--------------------------------------------------------------------------------
Marguerite A. Piret 52,949,595.338 990,660.600
--------------------------------------------------------------------------------
Fred J. Ricciardi 52,895,139.856 1,045,116.082
--------------------------------------------------------------------------------
Kenneth J. Taubes 52,940,075.518 1,000,180.420
--------------------------------------------------------------------------------
* Proposal 2 was voted on and approved by all series of Pioneer Series Trust
V. Results reported above reflect the combined votes of all series of the
Trust.
Pioneer Global Equity Fund | Annual Report | 8/31/17 49
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V
and the Shareholders 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 funds constituting Pioneer Series
Trust V (the "Trust"), including the schedule of investments, as of August 31,
2017, and the related statements of operations, changes in net assets and the
financial highlights for the year then ended and the financial highlights for
the year ended August 31, 2013. 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 statement of changes in net assets for the year ended
August 31, 2016 and the financial highlights in the periods ended August 31,
2014, August 31, 2015 and August 31, 2016 were audited by another independent
registered public accounting firm whose report, dated October 24, 2016,
expressed an unqualified opinion on the statement of changes in net assets and
those financial highlights.
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. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audit included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2017, by correspondence with the custodian,
brokers and others or by other appropriate auditing procedures where replies
from brokers and others were not received. 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 at August 31, 2017, the results of its operations,
the changes in its net assets and the financial highlights for the year then
ended and the financial highlights for the year ended August 31, 2013 in
conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
October 27, 2017
50 Pioneer Global Equity Fund | Annual Report | 8/31/17
Additional Information (unaudited)
For the year ended August 31, 2017, 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 2017 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 59.24%.
The Board of Trustees of Pioneer Emerging Markets Fund has approved the
reorganization of the fund with and into Pioneer Global Equity Fund (the
"Reorganization"). Each fund is managed by Amundi Pioneer Asset Management, Inc.
("Amundi Pioneer"). The Reorganization, which does not require shareholder
approval, is subject to the satisfaction of certain conditions, and is expected
to be completed in the fourth quarter of 2017.
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the "Adviser"), the
Fund's investment adviser, was an indirect, wholly owned subsidiary of UniCredit
S.p.A. ("UniCredit"). On that date, UniCredit completed the sale of its Pioneer
Investments business, which includes the Adviser, to Amundi (the "Transaction").
As a result of the Transaction, the Adviser became an indirect, wholly-owned
subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A. Amundi is
headquartered in Paris, France, and, as of September 30, 2016, had more than
$1.1 trillion in assets under management worldwide.
Deloitte & Touche LLP ("D&T"), the Fund's previous independent registered public
accounting firm, informed the Audit Committee and the Board that it would no
longer be independent with respect to the Fund upon the completion of the
Transaction as a result of certain services being provided to Amundi and Credit
Agricole, and, accordingly, that it intended to resign as the Fund's independent
registered public accounting firm upon the completion of the Transaction. D&T's
resignation was effective on July 3, 2017, when the Transaction was completed.
During the periods as to which D&T has served as the Fund's independent
registered public accounting firm, including the Fund's two most recent fiscal
years preceding the fiscal year ended August 31, 2017, D&T's reports on the
Fund's financial statements have not contained an adverse opinion or disclaimer
of opinion and have not been qualified or modified as to uncertainty, audit
scope or accounting principles. Further, there have been no disagreements with
D&T on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which, if not resolved to the
satisfaction of D&T, would have caused D&T to make reference to the subject
matter of the
Pioneer Global Equity Fund | Annual Report | 8/31/17 51
disagreement in connection with its report on the financial statements. In
addition, there have been no reportable events of the kind described in Item
304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934.
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
a new independent registered public accounting firm, Ernst & Young LLP ("EY"),
for the Fund's fiscal year ended August 31, 2017.
Prior to its engagement, EY had advised the Fund's Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities and Exchange
Commission ("SEC"): (a) project management support services to UniCredit in the
Czech Republic, Germany, Italy, Serbia and Slovenia in relation to twenty-two
projects, that were determined to be inconsistent with Rule 2-01(c)(4)(vi) of
Regulation S-X (management functions); (b) two engagements for UniCredit in
Italy where fees were contingent/success based and that were determined to be
inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent fees); (c) four
engagements where legal and expert services were provided to UniCredit in the
Czech Republic and Germany, and twenty engagements where the legal advisory
services were provided to UniCredit in Austria, Czech Republic, Italy and
Poland, that were determined to be inconsistent with Rule 2-01(c)(4)(ix) and (x)
of Regulation S-X (legal and expert services); and (d) two engagements for
UniCredit in Italy involving assistance in the sale of certain assets, that were
determined to be inconsistent with Rule 2-01(c)(4)(viii) of Regulation S-X
(broker-dealer, investment advisor or investment banking services). None of the
foregoing services involved the Fund, any of the other funds in the Pioneer
Family of Funds or any other Pioneer entity sold by UniCredit in the
Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Fund under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Fund, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
52 Pioneer Global Equity Fund | Annual Report | 8/31/17
Approval of New and Interim Management Agreements
Amundi Pioneer Asset Management, Inc. (Amundi Pioneer), formerly Pioneer
Investment Management, Inc., serves as the investment adviser to Pioneer Global
Equity Fund (the Fund) pursuant to an investment management agreement between
Amundi Pioneer and the Fund.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world (the "Transaction"). As a
result of the Transaction, Amundi Pioneer became an indirect wholly-owned
subsidiary of Amundi and Amundi's wholly-owned subsidiary, Amundi USA, Inc.
Prior to July 3, 2017, Pioneer Investments was owned by Pioneer Global Asset
Management S.p.A. ("PGAM"), a wholly-owned subsidiary of UniCredit S.p.A.
("UniCredit").
Under the Investment Company Act of 1940, the Fund's current investment
management agreement (the "Current Management Agreement") terminated
automatically upon the consummation of the Transaction. In order for Amundi
Pioneer to continue to manage the Fund after the consummation of the
Transaction, the Trustees and shareholders of the Fund were required to approve
a new investment management agreement for the Fund (the "New Management
Agreement"). As discussed below, the Board of Trustees of the Fund approved the
New Management Agreement at a meeting held on March 6-7, 2017. The New
Management Agreement was approved by the shareholders of the Fund at a meeting
held on June 13, 2017. The Board of Trustees of the Fund also approved an
interim investment management agreement between Amundi Pioneer and the Fund (the
"Interim Management Agreement") at the March 6-7, 2017 meeting. The Interim
Management Agreement would have taken effect upon the closing of the Transaction
in the event that the shareholders of the Fund did not approve the New
Management Agreement.
Board Evaluation of the New and Interim Management Agreements
The Board evaluated the Transaction and the New Management Agreement and Interim
Management Agreement for the Fund. In connection with their evaluation of the
Transaction and the New Management Agreement for the Fund, the Trustees
requested such information as they deemed reasonably necessary, including: (a)
the structure of the Transaction and the strategy underlying the Transaction;
(b) the anticipated benefits of the Transaction to the Fund and its
shareholders; (c) the post-Transaction plans for Amundi Pioneer, including
Amundi's plans for integration of Pioneer Investments and Amundi Pioneer with
its existing asset management businesses and plans for the future development of
Amundi Pioneer; (d) the effect of the Transaction on the ongoing services
provided to the Fund, including the need to select a new independent registered
public accounting firm for the Fund, and any
Pioneer Global Equity Fund | Annual Report | 8/31/17 53
plans to modify the operations of the Fund; (e) the stability and continuity of
Amundi Pioneer's management and key employees, including compensation and
benefits to Amundi Pioneer's key employees, and retention plans and incentive
plan structure; (f) the post-Transaction indebtedness and financial resources of
Amundi Pioneer; (g) Amundi's legal and operational structure, its principal
shareholders and senior management, its investment management, risk management,
administrative, legal and compliance functions; (h) certain regulatory matters
relating to Amundi's affiliates; and (i) Amundi's commitment to the United
States, including the role of Amundi Pioneer in the larger Amundi business.
The Trustees also requested and obtained the following information in connection
with their evaluation of the Transaction and the New Management Agreement for
the Fund: (i) memoranda provided by Fund counsel that summarized the legal
standards and other considerations that are relevant to the Trustees in their
deliberations regarding the New Management Agreement; (ii) the qualifications of
the investment management teams for the Fund, as well as the level of investment
by the Fund's portfolio managers in the Fund; (iii) the Fund's management fees
and total expense ratios, the financial statements of Amundi Pioneer and its
pre- and post-Transaction parent companies, profitability analyses from Amundi
Pioneer, and analyses from Amundi Pioneer as to possible economies of scale;
(iv) the profitability of the institutional business of Amundi Pioneer and
Amundi Pioneer's affiliate, Amundi Pioneer Institutional Asset Management, Inc.
("Amundi Pioneer Institutional") as compared to that of Amundi Pioneer's fund
management business; and (v) the differences between the fees and expenses of
the Fund and the fees and expenses of Amundi Pioneer's and Amundi Pioneer
Institutional's institutional accounts, as well as the different services
provided by Adviser to the Fund and by Amundi Pioneer and Amundi Pioneer
Institutional to the institutional accounts. In addition, the Trustees
considered the information provided at regularly scheduled meetings throughout
the year regarding the Fund's performance and risk attributes, including through
meetings with investment management personnel, and took into account other
information related to the Fund provided to the Trustees at regularly scheduled
meetings. The Trustees also considered information they had received in their
review of the continuance of the Current Management Agreement for the Fund in
September 2016.
At meetings held on January 9, 2017 and January 10, 2017, the Trustees met with
representatives of Amundi and PGAM, including separate meetings of the Trustees
who are not "interested persons" of the Fund Complex ("Independent Trustees")
and counsel with representatives of Amundi and PGAM, and subsequently with
representatives of Amundi. In those meetings, they received an extensive
presentation from the representatives of Amundi, including the chief executive
officer of Amundi, describing Amundi's
54 Pioneer Global Equity Fund | Annual Report | 8/31/17
background and history, its global asset management activities, the growth of
its business, and its status as the largest asset management firm in Europe and
one of the largest globally; its capital structure and financial resources,
including information as to the financing of the Transaction; its principal
investors, including its majority investor Credit Agricole S.A., and Credit
Agricole's long-term commitment to the asset management business; the philosophy
and strategy underlying the Transaction and the complementarity of Amundi's and
Pioneer Investments' respective asset management businesses; Amundi's various
operating and investment committees and how they would likely interact with
Amundi Pioneer; the proposed integration process, including the progress to date
and the establishment of various integration work streams; Amundi's plans for
management of Amundi Pioneer; Amundi's philosophy as to compensation of key
employees and its general intentions with respect to incentive plans for key
employees of Amundi Pioneer; Amundi's preliminary plans to achieve cost and
other synergies; and opportunities to further develop the business of Amundi
Pioneer and Amundi Pioneer Institutional, including in the area of institutional
asset management, and how that would benefit shareholders of the Pioneer Funds.
In those meetings, the representatives of Amundi confirmed their intention that
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer would
remain in their current positions, and confirmed that they do not currently
foresee major changes in the day-to-day investment management operations of
Amundi Pioneer with respect to the Fund as a direct result of the Transaction.
They discussed incentive arrangements for key personnel that would continue
after the closing of the Transaction and their plans to establish a new
long-term incentive plan following the closing. They also generally discussed
ways in which Amundi Pioneer could potentially draw on the expanded global
resources of Amundi post-Transaction. At those meetings, the Independent
Trustees identified certain areas to which they requested further information,
including as to trading and execution of securities transactions, research and
portfolio management and potential changes in investment process, particularly
where asset classes managed by Amundi Pioneer would overlap with asset classes
managed by Amundi, the continued availability of resources currently at Pioneer
Investments or elsewhere within Amundi to assist in management of certain Funds,
and any anticipated significant changes in operations. The Independent Trustees
considered the uncertainty as to whether the Fund's independent registered
public accounting firm could continue to act in that capacity after the closing
of the Transaction. The Independent Trustees also met with counsel to review the
information they had received to date and to discuss next steps.
Pioneer Global Equity Fund | Annual Report | 8/31/17 55
Subsequently, the Trustees received further information from Amundi, including
written responses to questions raised by the Independent Trustees, and received
from Amundi Pioneer the information requested of it. The Independent Trustees
reviewed the information provided with counsel at telephonic meetings held on
February 16, 2017 and February 27, 2017. The Trustees held a special in-person
Board meeting on March 6-7, 2017 for further consideration of the New Management
Agreements, the Interim Management Agreements and the Transaction. The Trustees
met again with senior executives of Amundi at the March 6-7, 2017 meeting.
At the March 6-7, 2017 meeting, based on their evaluation of the information
provided by Amundi Pioneer and Amundi, the Trustees including the Independent
Trustees voting separately, approved the New Management Agreement and the
Interim Management Agreement for the Fund. In considering the New Management
Agreement for the Fund, the Trustees considered various factors that they
determined were relevant, including the factors described below. The Trustees
did not identify any single factor as the controlling factor in their
determinations. The Trustees considered the same factors with respect to the
Interim Management Agreement for the Fund.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by Amundi Pioneer to the Fund and that are expected to be provided
by Amundi Pioneer to the Fund following the consummation of the Transaction. The
Trustees reviewed the terms of the New Management Agreement, and noted that such
terms are substantially similar to the terms of the Current Management
Agreement, except for different execution dates, effective dates and termination
dates. The Trustees reviewed Amundi Pioneer's investment approach for the Fund
and its research process. The Trustees considered the resources of Amundi
Pioneer and the personnel of Amundi Pioneer who provide investment management
services to the Fund. They also reviewed the amount of non-investment resources
and personnel of Amundi Pioneer that are involved in Amundi Pioneer's services
to the Fund, including Amundi Pioneer's compliance and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by Amundi Pioneer's senior management to the Pioneer Fund complex.
The Trustees considered that Amundi Pioneer supervises and monitors the
performance of the Fund's service providers and provides the Fund with personnel
(including Fund officers) and other resources that are necessary for the Fund's
business management and operations and that Amundi Pioneer would continue to
provide those investment management and research services and resources to the
Fund following the consummation of the Transaction. The Trustees also considered
that, as administrator, Amundi
56 Pioneer Global Equity Fund | Annual Report | 8/31/17
Pioneer would continue to be responsible for the administration of the Fund's
business and other affairs. The Trustees considered the fees to be paid to
Amundi Pioneer for the provision of administration services.
The Trustees considered that Deloitte & Touche LLP informed the Board that it
would no longer be independent with respect to the Fund upon the completion of
the Transaction and, accordingly, that it would be necessary for the Board to
engage a new independent registered public accounting firm for the Fund.
The Trustees considered that the Transaction was not expected to have a material
adverse impact on the nature, scope and overall quality of services provided to
the Fund and its shareholders, including investment management, risk management,
administrative, compliance, legal and other services, as a result of the
Transaction.
In that regard, the Trustees considered that Amundi is one of the largest asset
managers globally, and that Amundi Pioneer may have access to additional
research and portfolio management capabilities as a result of the Transaction
and that Amundi Pioneer, as part of Amundi, is expected to have an enhanced
global presence that may contribute to an increase in the overall scale and
resources of Amundi Pioneer. Furthermore, in considering whether the Transaction
would be expected to have a material adverse impact on the nature, scope and
overall quality of services provided to the Fund and its shareholders, the
Trustees considered the statements by representatives of Amundi that they expect
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer to
remain in their current positions and that they do not currently foresee major
changes in the day-to-day investment management operations of Amundi Pioneer as
a direct result of the Transaction, or the risk management, legal or compliance
services provided by Amundi Pioneer, with respect to the Fund. They further
considered the current incentive arrangements for key personnel of Amundi
Pioneer that would continue after the closing of the Transaction. They also
noted Amundi's stated intention to establish a new long-term incentive plan
following the closing.
The Trustees also took into account their experience in evaluating the proposed
combination of Pioneer Investments and Santander Asset Management, which was
announced in September, 2014 and abandoned in July, 2016. In light of, among
other things, this experience, the Trustees determined that they were not able
to identify any realistic alternatives to approving the New Management Agreement
that would provide the level of services to the Fund and its shareholders that
are expected to be provided by Amundi Pioneer after the closing of the
Transaction.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that Amundi Pioneer would continue to provide to the
Fund under the New Management Agreement would be satisfactory and consistent
with the terms of the New Management Agreement.
Pioneer Global Equity Fund | Annual Report | 8/31/17 57
Performance of the Fund
In considering the Fund's performance, the Trustees regularly reviewed and
discussed throughout the year data prepared by Amundi Pioneer and information
comparing the Fund's performance with the performance of its peer group of
funds, as classified by each of Morningstar, Inc. (Morningstar) and Lipper, and
the performance of the Fund's benchmark index. They also discussed the Fund's
performance with Amundi Pioneer on a regular basis.
The Trustees' regular reviews and discussions were factored into the Trustees'
deliberations concerning the approval of the New Management Agreement.
Management Fee and Expenses
The Trustees noted that the stated management fees to be paid by the Fund are
identical under the Current Management Agreement and the New Management
Agreement. The Trustees considered information showing the fees and expenses of
the Fund in comparison to the management fees and expense ratios of its peer
group of funds as classified by Morningstar and also to the expense ratios of a
peer group of funds selected on the basis of criteria determined by the
Independent Trustees for this purpose using data provided by Strategic Insight
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners. To the extent applicable, the Trustees also
considered the impact of transfer agency, sub-transfer agency, and other
non-management fee expenses on the expense ratios of the Fund. The Trustees
noted that they separately review the Fund's transfer agency, sub-transfer
agency and intermediary arrangements and that the results of the most recent
such review were considered in the consideration of the Fund's expense ratio.
The Trustees considered that the Fund's management fee as of September 30, 2016
was in the second quintile relative to the management fees paid by other funds
in its Morningstar category for the comparable period. The Trustees also
considered the breakpoints in the management fee schedule and the reduced fee
rates above certain asset levels. The Trustees considered that the expense ratio
of the Fund's Class A shares as of September 30, 2016 was in the third quintile
relative to its Morningstar category and in the second quintile relative to its
Strategic Insight peer group, in each case for the comparable period. The
Trustees noted that Amundi Pioneer had agreed to waive fees and/or reimburse
expenses in order to limit the ordinary operating expenses of the Fund.
The Trustees reviewed management fees charged by Amundi Pioneer and Amundi
Pioneer Institutional to institutional and other clients, including publicly
offered European funds sponsored by Amundi Pioneer's affiliates, unaffiliated
U.S. registered investment companies (in a sub-advisory capacity), and
unaffiliated foreign and domestic separate accounts. The Trustees also
58 Pioneer Global Equity Fund | Annual Report | 8/31/17
considered Amundi Pioneer's costs in providing services to the Fund and Amundi
Pioneer's and Amundi Pioneer Institutional's costs in providing services to the
other clients and considered the differences in management fees and profit
margins for fund and non-fund services. In evaluating the fees associated with
Amundi Pioneer's and Amundi Pioneer Institutional's client accounts, the
Trustees took into account the respective demands, resources and complexity
associated with the Fund and other client accounts. The Trustees noted that in
some instances the fee rates for those clients were lower than the management
fee for the Fund and considered that, under both the Current Management
Agreement and the New Management Agreement, Amundi Pioneer would perform
additional services for the Fund that it does not provide to those other clients
or services that are broader in scope, including oversight of the Fund's other
service providers and activities related to compliance and the extensive
regulatory and tax regimes to which the Fund is subject. The Trustees also
considered the different risks associated with Amundi Pioneer's management of
the Fund and Amundi Pioneer's and Amundi Pioneer Institutional's management of
the other client accounts.
The Trustees concluded that the management fee payable by the Fund to Amundi
Pioneer was reasonable in relation to the nature and quality of the services to
be provided by Amundi Pioneer.
Profitability
The Trustees considered information provided by Amundi Pioneer regarding the
profitability of Amundi Pioneer with respect to the advisory services provided
by Amundi Pioneer to the Fund, including the methodology used by Amundi Pioneer
in allocating certain of its costs to the management of the Fund. The Trustees
also considered Amundi Pioneer's profit margin in connection with the overall
operation of the Fund. They further reviewed the financial results, including
the profit margins, realized by Amundi Pioneer and Amundi Pioneer Institutional
from non-fund businesses. The Trustees considered Amundi Pioneer's profit
margins with respect to the Fund in comparison to the limited industry data
available and noted that the profitability of any adviser was affected by
numerous factors, including its organizational structure and method for
allocating expenses. The Trustees concluded that Amundi Pioneer's profitability
with respect to the management of the Fund was not unreasonable.
Economies of Scale
The Trustees considered Amundi Pioneer's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Fund and Fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify, and that, among other factors that may be relevant, are
Pioneer Global Equity Fund | Annual Report | 8/31/17 59
the following: fee levels, expense subsidization, investment by Amundi Pioneer
in research and analytical capabilities and Amundi Pioneer's commitment and
resource allocation to the Fund. The Trustees noted that profitability also may
be an indicator of the availability of any economies of scale, although
profitability may vary for other reasons including due to reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits that Amundi Pioneer enjoys from its
relationship with the Fund. The Trustees considered the character and amount of
fees paid or to be paid by the Fund, other than under the Current Management
Agreement or the New Management Agreement, for services provided by Amundi
Pioneer and its affiliates. The Trustees further considered the revenues and
profitability of Amundi Pioneer's businesses other than the Fund business. To
the extent applicable, the Trustees also considered the benefits to the Fund and
to Amundi Pioneer and its affiliates from the use of "soft" commission dollars
generated by the Fund to pay for research and brokerage services.
The Trustees considered that following the completion of the Transaction, Amundi
Pioneer will be the principal U.S. asset management business of Amundi, and that
Amundi's worldwide asset management business will manage over $1.38 trillion in
assets (including the Pioneer Funds). This may create opportunities for Amundi
Pioneer, Amundi Pioneer Institutional and Amundi that derive from Amundi
Pioneer's relationships with the Fund, including Amundi's ability to market the
services of Amundi Pioneer globally. The Trustees noted that Amundi Pioneer may
have access to additional research capabilities as a result of the Transaction
and Amundi's enhanced global presence that may contribute to an increase of the
overall scale of Amundi Pioneer. The Trustees considered that Amundi Pioneer and
the Fund are expected to receive reciprocal intangible benefits from the
relationship, including mutual brand recognition and, for the Fund, direct and
indirect access to the resources of a large global asset manager. The Trustees
concluded that any such benefits received by Amundi Pioneer as a result of its
relationship with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including the Independent Trustees, concluded that the New Management
Agreement and the Interim Management Agreement for the Fund, including the fees
payable thereunder, were fair and reasonable and voted to approve the New
Management Agreement and the Interim Management Agreement, and to recommend that
shareholders approve the New Management Agreement.
60 Pioneer Global Equity Fund | Annual Report | 8/31/17
Trustees, Officers and Service Providers
Investment Adviser
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data 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 www.amundipioneer.com. This information is also available on the Securities
and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations and other directorships they have held during at least the past five
years. Trustees who are interested persons of the Fund within the meaning of
the 1940 Act are referred to as Interested Trustees. Trustees who are not
interested persons of the Fund are referred to as Independent Trustees. Each of
the Trustees serves as a Trustee of each of the 46 U.S. registered investment
portfolios for which Amundi Pioneer serves as investment adviser (the
"Pioneer Funds"). The address for all Trustees and all officers of the Fund is
60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Global Equity Fund | Annual Report | 8/31/17 61
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (66) Trustee since 2006. Private investor (2004 - 2008 and 2013 - Director, Broadridge Financial
Chairman of the Board Serves until a present); Chairman (2008 - 2013) and Chief Solutions, Inc. (investor
and Trustee successor trustee is Executive Officer (2008 - 2012), Quadriserv, communications and securities
elected or earlier Inc. (technology products for securities processing provider for financial
retirement or removal. lending industry); and Senior Executive Vice services industry) (2009 -
President, The Bank of New York (financial and present); Director, Quadriserv,
securities services) (1986 - 2004) Inc. (2005 - 2013); and
Commissioner, New Jersey State
Civil Service Commission (2011 -
2015)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (73) Trustee since 2005. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - Trust (publicly-traded mortgage
successor trustee is 2004 and 2008 - present); Interim Chief REIT) (2004 - 2009, 2012 -
elected or earlier Executive Officer, Oxford Analytica, Inc. present); Director of The Swiss
retirement or removal. (privately held research and consulting Helvetia Fund, Inc. (closed-end
company) (2010); Executive Vice President and fund) (2010 - present); Director
Chief Financial Officer, I-trax, Inc. (publicly of Oxford Analytica, Inc. (2008 -
traded health care services company) (2004 - present); and Director of
2007); and Executive Vice President and Chief Enterprise Community Investment,
Financial Officer, Pedestal Inc. Inc. (privately-held affordable
(internet-based mortgage trading company) (2000 housing finance company) (1985 -
- 2002); Private Consultant (1995 - 1997); 2010)
Managing Director, Lehman Brothers (1992 -
1995); Executive, The World Bank (1979 - 1992)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (73) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and Mellon
successor trustee is Institutional Funds Master
elected or earlier Portfolio (oversaw 17 portfolios
retirement or removal. in fund complex) (1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (70) Trustee since 2005. Founding Director, Vice-President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee is firm) (1982 - present); Desautels Faculty of
elected or earlier Management, McGill University (1999 - present);
retirement or removal. and Manager of Research Operations and
Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
62 Pioneer Global Equity Fund | Annual Report | 8/31/17
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (61) Trustee since 2017. Chief Investment Officer, 1199 SEIU Funds None
Trustee (Advisory Trustee from (healthcare workers union pension funds) (2001
2014 - 2017). Serves - present); Vice President - International
until a successor Investments Group, American International
trustee is elected or Group, Inc. (insurance company) (1993 - 2001);
earlier retirement or Vice President, Corporate Finance and Treasury
removal. 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); Mortgage
Strategies Group, Drexel Burnham Lambert, Ltd.
(investment bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (69) Trustee since 2005. President and Chief Executive Officer, Newbury Director of New America High
Trustee Serves until a Piret Company (investment banking firm) (1981 - Income Fund, Inc. (closed-end
successor trustee is present) investment company) (2004 -
elected or earlier present); and Member, Board of
retirement or removal. Governors, Investment Company
Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (70) Trustee since 2014. Consultant (investment company services) (2012 None
Trustee Serves until a - present); Executive Vice President, BNY
successor trustee is Mellon (financial and investment company
elected or earlier services) (1969 - 2012); Director, BNY
retirement or removal. International Financing Corp. (financial
services) (2002 - 2012); Director, Mellon
Overseas Investment Corp. (financial services)
(2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Equity Fund | Annual Report | 8/31/17 63
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (55)* Trustee since 2017. Chair, Director, CEO and President of Amundi None
Trustee, President and Serves until a Pioneer Asset Management USA, Inc. (since
Chief Executive Officer successor trustee is September 2014); Chair, Director and CEO of
elected or earlier Amundi Pioneer Asset Management, Inc. (since
retirement or removal September 2014); Chair, Director and CEO of
Amundi Pioneer Distributor, Inc. (since
September 2014); Chair, Director, CEO and
President of Amundi Pioneer Institutional Asset
Management, Inc. (since September 2014);
Managing Director, Morgan Stanley Investment
Management (2010 - 2013); Director of
Institutional Business, CEO of International,
Eaton Vance Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (59)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S. (since
successor trustee is 2010) of Amundi Pioneer Asset Management USA,
elected or earlier Inc.; Executive Vice President and Chief
retirement or removal Investment Officer, U.S. of Amundi Pioneer
(since 2008); Executive Vice President of
Amundi Pioneer Institutional Asset Management,
Inc. (since 2009); Portfolio Manager of Amundi
Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
64 Pioneer Global Equity Fund | Annual Report | 8/31/17
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley Since 2005. Serves at Vice President and Associate General Counsel of None
(52) the discretion of the Amundi Pioneer since January 2008; Secretary
Secretary and Board and Chief Legal Officer of all of the Pioneer
Chief Legal Officer Funds since June 2010; Assistant Secretary of
all of the Pioneer Funds from September 2003 to
May 2010; Vice President and Senior Counsel of
Amundi Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (56) Since 2010. Serves at Fund Governance Director of Amundi Pioneer None
Assistant Secretary the discretion of the since December 2006 and Assistant Secretary of
Board all the Pioneer Funds since June 2010; Manager
- Fund Governance of Amundi Pioneer from
December 2003 to November 2006; and Senior
Paralegal of Amundi Pioneer from January 2000
to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (54) Since 2010. Serves at Senior Counsel of Amundi Pioneer since May 2013 None
Assistant Secretary the discretion of the and Assistant Secretary of all the Pioneer
Board Funds since June 2010; Counsel of Amundi
Pioneer from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (57) Since 2008. Serves at Vice President - Fund Treasury of Amundi None
Treasurer and the discretion of the Pioneer; Treasurer of all of the Pioneer Funds
Chief Financial and Board since March 2008; Deputy Treasurer of Amundi
Accounting Officer Pioneer from March 2004 to February 2008; and
Assistant Treasurer of all of the Pioneer Funds
from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (52) Since 2005. Serves at Director - Fund Treasury of Amundi Pioneer; and None
Assistant Treasurer the discretion of the Assistant Treasurer of all of the Pioneer Funds
Board
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (59) Since 2005. Serves at Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Amundi Pioneer; and Assistant Treasurer of all
Board of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (37) Since 2009. Serves at Fund Administration Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Amundi Pioneer since November 2008; Assistant
Board Treasurer of all of the Pioneer Funds since
January 2009; Client Service Manager -
Institutional Investor Services at State Street
Bank from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Equity Fund | Annual Report | 8/31/17 65
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (64) Since 2010. Serves at Chief Compliance Officer of Amundi Pioneer and None
Chief Compliance Officer the discretion of the of all the Pioneer Funds since March 2010;
Board Chief Compliance Officer of Amundi 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 Amundi Pioneer since October
2005; Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to
October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (46) Since 2006. Serves at Director - Transfer Agency Compliance of Amundi None
Anti-Money the discretion of the Pioneer and Anti-Money Laundering Officer of
Laundering Officer Board all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers
or directors of the fund's investment adviser and certain of its
affiliates.
66 Pioneer Global Equity Fund | Annual Report | 8/31/17
This page is for your notes.
Pioneer Global Equity Fund | Annual Report | 8/31/17 67
This page is for your notes.
68 Pioneer Global Equity Fund | Annual Report | 8/31/17
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.amundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at 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] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2017 Amundi Pioneer Asset Management 19431-11-1017
Pioneer High Income
Municipal Fund
--------------------------------------------------------------------------------
Annual Report | August 31, 2017
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PIMAX
Class C HICMX
Class Y HIMYX
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 29
Notes to Financial Statements 36
Report of Independent Registered Public Accounting Firm 45
Additional Information 46
Approval of New and Interim Management Agreements 48
Trustees, Officers and Service Providers 57
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 1
President's Letter
We are very pleased to announce that on July 3, 2017, Amundi Asset Management, a
large European asset manager, officially acquired Pioneer Investments and
announced the completion of a merger which combined Pioneer Investment
Management USA, Inc., in Boston and Amundi Smith Breeden in Durham, N.C., to
form Amundi Pioneer Asset Management, Inc. ("Amundi Pioneer"). Amundi Smith
Breeden, founded as Smith Breeden Associates in 1982, is a highly regarded
relative-value credit investor managing an extensive range of fixed-income
strategies tailored to the needs of institutional investors.
Our new brand, Amundi Pioneer, now signifies:
o Ownership by Amundi Asset Management ("Amundi"). Amundi is Europe's largest
asset manager and among the world's top 10 asset managers, as measured by
assets under management (AUM), with approximately $1.3 trillion AUM(1).
o The significantly larger scale and resources of the combined firms.
o Amundi's desire to maintain the strong brand recognition of Pioneer in the
U.S., which dates back to 1928.
We would like to stress to shareowners that all of the Pioneer mutual funds have
retained their previous names. In addition, there have been no changes to the
portfolio managers or the funds' investment strategies as a result of the
merger. Amundi Pioneer's newly combined investment team works together as one
unit, discussing investment ideas, participating in research meetings, and
collaborating across the expanded organization.
We are looking forward to the opportunity to leverage the broad global resources
of Amundi. In bringing together Pioneer and Amundi Smith Breeden, we have
combined organizations that share similar investment philosophies and corporate
cultures, and that value teamwork across a collegial, collaborative environment.
We are very excited about our future, as we believe the greater scale and
expanded global reach of the combined firm, with some 5,000 employees worldwide,
provides several opportunities to better meet the needs of today's investors by
exploring new, innovative investment solutions and integrating the abundance of
thought leadership resources at Amundi, while also maintaining our commitment to
providing existing shareowners with outstanding service locally.
(1) Source: IPE "Top 400 asset managers" published in June 2017 and based on
AUM as of end December 2016.
2 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future as we move into a new and exciting era.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
August 31, 2017
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 3
Portfolio Management Discussion | 8/31/17
Important Note: On July 3, 2017, Amundi acquired Pioneer Investments, a group of
asset management companies located throughout the world. Amundi, one of the
world's largest asset managers, is headquartered in Paris, France. As a result
of the transaction, Pioneer Investment Management, Inc., the Fund's investment
adviser, became an indirect wholly owned subsidiary of Amundi and Amundi's
wholly owned subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer
Investments was owned by Pioneer Global Asset Management S.p.A., a wholly owned
subsidiary of UniCredit S.p.A.
In connection with the transaction, the names of the Fund's investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc. and
the name of Pioneer Funds Distributor, Inc. changed to Amundi Pioneer
Distributor, Inc.
This transaction does not impact your existing relationship with Pioneer
Investments, your advisor, or the methods you use to communicate with us, as the
investor contact telephone numbers and services you expect will remain the same.
We are excited, however, to be launching a new website representing the combined
company. Come visit us at: www.amundipioneer.com.
High-yield municipal bonds rebounded sharply from their previous slump to
produce positive results over the 12-month period ended August 31, 2017. 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
Amundi Pioneer Asset Management, Inc. (Amundi Pioneer), manages the Fund along
with Mr. Eurkus, Director of Municipals, a senior vice president and a portfolio
manager at Amundi Pioneer.
Q How did the Fund perform during the 12-month period ended August 31, 2017?
A Pioneer High Income Municipal Fund's Class A shares returned 1.32% at net
asset value during the 12-month period ended August 31, 2017, while the
Fund's benchmark, the Bloomberg Barclays U.S. Municipal High Yield Bond
Index (the Bloomberg Barclays Index), returned 2.25%. During the same
period, the average return of the 158 mutual funds in Lipper's High-Yield
Municipal Debt Funds category was 0.90%, and the average return of the 167
mutual funds in Morningstar's High-Yield Municipal Funds category was
0.86%.
4 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Q How would you describe the investment environment in the municipal bond
market during the 12-month period ended August 31, 2017?
A At the start of the period in September 2016, lower-rated municipals were
struggling as the market weighed the effects of mixed domestic economic
growth signals while also dealing with political uncertainties surrounding
the November 2016 national elections. Prior to the start of the period,
anxieties in the high-yield municipal market had already been heightened by
the Commonwealth of Puerto Rico's default on a group of general obligation
bonds in July 2016. At the time of the default, Puerto Rico-issued bonds
accounted for 23% of the Fund's benchmark, the Bloomberg Barclays Index.
The general obligation bonds affected by the default announcement were
subsequently removed from the Bloomberg Barclays Index, thus dropping the
Commonwealth's debt representation in the benchmark to 13%. Additionally, a
default of Puerto Rico-issued sales tax bonds reduced that number even
further.
Market sentiment would change dramatically after the November 2016
elections, which saw the Republicans win the White House and retain control
of both houses of Congress. The results drove a rally led by investors who
believed Republican control over Federal fiscal policy would spur economic
growth, especially in light of the fact that Donald Trump's campaign had
stressed pro-growth initiatives such as tax cuts, reduced regulation, and
higher levels of infrastructure spending. Meanwhile, U.S. economic data
suggested the economy was strengthening, which further encouraged
investment in credit-sensitive securities, including high-yield municipal
debt. These factors resulted in a robust market rebound that continued
through the final 10 months of the period. In fact, while the Bloomberg
Barclays Index produced a 2.25% total return for the full 12 months, its
return for the final six months of the period was 4.31%. Moreover, the
benchmark's year-to-date return through August 31, 2017, was an even more
impressive 8.30%.
High-yield municipals were the second-best performing fixed-income group
over the second half of the 12-month period, trailing only 30-year
Treasuries. The rally was barely affected by the tightening of Federal
monetary policy by the U.S. Federal Reserve (the Fed), which hiked the
influential short-term Federal funds rate three times during the period.
In that environment, municipal bonds backed by tobacco liability revenues
led the market surge. Education bonds, notably those issued to back charter
schools, also performed well.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 5
Q Which of your investment decisions drove the Fund's underperformance
relative to the Bloomberg Barclays Index during the 12-month period ended
August 31, 2017, and which decisions aided the Fund's performance?
A While the Fund performed positively over the period, its return trailed
that of the benchmark primarily because we avoided owning many of the
lower-quality municipal bonds that outperformed as many investors sought
out higher yields, irrespective of credit risk. Particularly in the second
half of the period, some new issues that we believed carried too much risk
came into the high-yield municipal market, and we largely avoided holding
them in the portfolio, as we chose to follow an investment discipline that
we believe may result in solid, more consistent Fund performance over the
longer term.
The Fund also had no exposure to any of the Puerto Rico-issued high-yield
bonds that were components of the benchmark, which, as we noted earlier,
accounted for 13% of the Bloomberg Barclays Index for much of the period.
The Fund did, however, have positions in some better-quality general
obligation Puerto Rico bonds, representing roughly 2% of the Fund's total
investment portfolio.
For the 12-month period, the Fund's investments in tobacco bonds and
charter school-related bonds performed particularly well. Individual
holdings that contributed positively to the Fund's performance included
general obligation bonds issued by the Chicago Board of Education; Virginia
tobacco bonds; and charter school bonds issued by the Colorado Education
and Cultural Facility. Individual holdings that detracted from the Fund's
performance included an industrial development revenue bond issued by
Sanger, Texas; tobacco bonds issued by the District of Columbia; and debt
issued by the Florida Development Finance Corp.
Q Did the Fund have any investments in any derivative securities during the
12-month period ended August 31, 2017?
A No, the Fund had no investments in any derivatives.
Q Did the Fund's yield, or distributions to shareholders, change during the
12-month period ended August 31, 2017?
A The Fund's yield did decline slightly early in the period; however, for the
remainder of the fiscal year it remained relatively stable, despite the
general decline of interest rates in the market.
6 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Q What is your investment outlook?
A Our outlook for the high-yield municipal market is generally positive. We
believe strong demand from both traditional and non-traditional investors
drawn to the market by the attractive values and generous yields of
municipal bonds - as compared with taxable debt - can continue to outstrip
the limited new-issue supply and help support prices of higher-yielding
securities. At the same time, we think the U.S. economy is in good
condition and should continue to grow at a moderate pace. While it seems
committed to further tightening monetary policy, we think the Fed will act
cautiously and monitor the economy closely before hiking interest rates
again, given that it has already done so three times since last December.
Despite earlier expectations that Republican control of the Federal
government would lead to policies injecting more fiscal stimulus into the
economy, the prospects for tax cuts or new investments on infrastructure
projects remain uncertain. However, the lack of political consensus on
those issues, thus far, does not appear to have harmed the economy or
affected the markets.
Consistent with our investment discipline in managing the Fund, we intend
to continue to focus on intensive, fundamental research into individual
bond issues, while maintaining a close watch on any macroeconomic factors
that could influence the high-yield municipal market.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 7
Please refer to the Schedule of Investments on pages 16-28 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Investments in high-yield or lower-rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
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 Amundi Pioneer Asset Management, Inc., for
a prospectus or summary prospectus containing this information. Read it
carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is not a
guarantee of future results.
8 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Portfolio Summary | 8/31/17
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Special Revenues 25.8%
Health 21.3%
Education 21.1%
Various Revenues 8.4%
General Obligation 6.8%
Housing 6.6%
Pollution Control Revenue 4.0%
Escrowed 3.5%
Transportation 2.0%
Insured 0.3%
Water & Sewer 0.2%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)*
1. City of Philippi West Virginia, 7.75%, 10/1/44 2.53%
--------------------------------------------------------------------------------
2. Tobacco Settlement Financing Corp. Virginia, 5.0%, 6/1/47 2.41
--------------------------------------------------------------------------------
3. Commonwealth of Puerto Rico, 8.0%, 7/1/35 (f) (g) 2.05
--------------------------------------------------------------------------------
4. Buckeye Tobacco Settlement Financing Authority, 5.875%, 6/1/47 1.93
--------------------------------------------------------------------------------
5. Pennsylvania Economic Development Financing Authority, US Airways
Group Series B, 8.0%, 5/1/29 1.60
--------------------------------------------------------------------------------
6. Michigan Tobacco Settlement Finance Authority, 6.0%, 6/1/48 1.54
--------------------------------------------------------------------------------
7. Suffolk Tobacco Asset Securitization Corp., 6.0%, 6/1/48 1.52
--------------------------------------------------------------------------------
8. Chicago Board of Education, 6.5%, 12/1/46 (f) 1.51
--------------------------------------------------------------------------------
9. Buckeye Tobacco Settlement Financing Authority, 6.0%, 6/1/42 1.49
--------------------------------------------------------------------------------
10. Suffolk Tobacco Asset Securitization Corp., 6.6%, 6/1/44 1.42
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 9
Prices and Distributions | 8/31/17
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/17 8/31/16
--------------------------------------------------------------------------------
A $7.32 $7.59
--------------------------------------------------------------------------------
C $7.32 $7.59
--------------------------------------------------------------------------------
Y $7.22 $7.49
--------------------------------------------------------------------------------
Distributions per Share: 9/1/16-8/31/17
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.3590 $ -- $ --
--------------------------------------------------------------------------------
C $0.3031 $ -- $ --
--------------------------------------------------------------------------------
Y $0.3667 $ -- $ --
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bloomberg Barclays U.S. Municipal High Yield 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 11-13.
10 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Performance Update | 8/31/17 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 High Income Municipal Fund at
public offering price during the periods shown, compared to that of the
Bloomberg Barclays U.S. Municipal High Yield Bond Index.
Average Annual Total Returns
(As of August 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Net Public Barclays U.S.
Asset Offering Municipal
Value Price High Yield
Period (NAV) (POP) Bond Index
--------------------------------------------------------------------------------
10 years 3.42% 2.94% 4.92%
5 years 3.94 3.00 5.02
1 year 1.32 -3.26 2.25
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.87%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer High Income U.S. Municipal High
Municipal Fund Yield Bond Index
8/07 $ 9,550 $ 10,000
8/08 $ 9,076 $ 9,563
8/09 $ 7,768 $ 8,684
8/10 $ 9,722 $ 10,601
8/11 $ 9,900 $ 10,967
8/12 $ 11,012 $ 12,656
8/13 $ 10,543 $ 12,161
8/14 $ 11,335 $ 13,954
8/15 $ 11,888 $ 13,944
8/16 $ 13,184 $ 15,809
8/17 $ 13,359 $ 16,165
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. 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.
Please refer to the financial highlights for a more current expense ratio.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 11
Performance Update | 8/31/17 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 High Income Municipal Fund during
the periods shown, compared to that of the Bloomberg Barclays U.S. Municipal
High Yield Bond Index.
Average Annual Total Returns
(As of August 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays U.S.
Municipal
If If High Yield
Period Held Redeemed Bond Index
--------------------------------------------------------------------------------
10 years 2.60% 2.60% 4.92%
5 years 3.15 3.15 5.02
1 year 0.55 0.55 2.25
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.63%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer High Income U.S. Municipal High
Municipal Fund Yield Bond Index
8/07 $ 10,000 $ 10,000
8/08 $ 9,406 $ 9,563
8/09 $ 7,979 $ 8,684
8/10 $ 9,903 $ 10,601
8/11 $ 10,020 $ 10,967
8/12 $ 11,065 $ 12,656
8/13 $ 10,514 $ 12,161
8/14 $ 11,234 $ 13,954
8/15 $ 11,678 $ 13,944
8/16 $ 12,853 $ 15,809
8/17 $ 12,923 $ 16,165
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Performance Update | 8/31/17 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 High Income Municipal Fund during
the periods shown, compared to that of the Bloomberg Barclays U.S. Municipal
High Yield Bond Index.
Average Annual Total Returns
(As of August 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Net Barclays U.S.
Asset Municipal
Value High Yield
Period (NAV) Bond Index
--------------------------------------------------------------------------------
10 years 3.46% 4.92%
5 years 4.10 5.02
1 year 1.45 2.25
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.71%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Bloomberg Barclays
Pioneer High Income U.S. Municipal High
Municipal Fund Yield Bond Index
8/07 $ 5,000,000 $ 5,000,000
8/08 $ 4,727,543 $ 4,781,369
8/09 $ 4,051,449 $ 4,342,015
8/10 $ 5,053,200 $ 5,300,736
8/11 $ 5,155,174 $ 5,483,642
8/12 $ 5,744,204 $ 6,327,987
8/13 $ 5,511,252 $ 6,080,568
8/14 $ 5,934,970 $ 6,976,904
8/15 $ 6,226,791 $ 6,971,941
8/16 $ 6,922,505 $ 7,904,668
8/17 $ 7,022,917 $ 8,082,612
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on actual returns from March 1, 2017, through August 31, 2017.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/17
--------------------------------------------------------------------------------
Ending Account Value $1,039.93 $1,036.06 $1,039.55
(after expenses) on 8/31/17
--------------------------------------------------------------------------------
Expenses Paid $ 4.52 $ 8.47 $ 3.70
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.88%,
1.65% and 0.72% 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 | 8/31/17
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, 2017, through August 31, 2017.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/17
--------------------------------------------------------------------------------
Ending Account Value $1,020.77 $1,016.89 $1,021.58
(after expenses) on 8/31/17
--------------------------------------------------------------------------------
Expenses Paid $ 4.48 $ 8.39 $ 3.67
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.88%,
1.65% and 0.72% 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 | 8/31/17 15
Schedule of Investments | 8/31/17
-----------------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (b) Spread (c) Value
-----------------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 98.4%
CORPORATE BONDS -- 1.3%
DIVERSIFIED FINANCIALS -- 1.3%
Specialized Finance -- 1.3%
3,275,000 Texas Pellets, Inc., 8.0%, 12/10/17 (144A) $ 3,275,000
3,125,000 Texas Pellets, Inc., 8.0%, 12/10/17 (144A) 3,125,000
1,600,000 Texas Pellets, Inc., 8.0%, 9/10/17 (144A) 1,600,000
---------------
$ 8,000,000
---------------
Total Diversified Financials $ 8,000,000
-----------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $8,000,000) $ 8,000,000
-----------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.1% (e)
Alaska -- 0.6%
3,700,000 Northern Tobacco Securitization Corp.,
5.0%, 6/1/46 $ 3,534,721
-----------------------------------------------------------------------------------------------------------------
Arizona -- 2.9%
4,000,000 The Industrial Development Authority of the
City of Phoenix, 5.125%, 7/1/36 $ 4,036,960
8,000,000 The Industrial Development Authority of the
City of Phoenix, 5.4%, 10/1/36 7,683,040
1,000,000 The Industrial Development Authority of the
County of Pima, Desert hights Charter,
7.0%, 5/1/34 1,094,330
3,000,000 The Industrial Development Authority of the
County of Pima, Desert heights Charter,
7.25%, 5/1/44 3,298,170
700,000 The Industrial Development Authority of the
County of Pima, Legacy Traditional School
Project, 8.5%, 7/1/39 (Pre-Refunded) 786,597
490,000 The Industrial Development Authority of the
County of Pima, Paradise Education Center,
6.0%, 6/1/40 532,537
---------------
$ 17,431,634
-----------------------------------------------------------------------------------------------------------------
California -- 9.6%
1,215,000 California County Tobacco Securitization
Agency, 6/1/36 $ 1,229,118
5,880,000 California County Tobacco Securitization
Agency, Merced County, 5.25%, 6/1/45 5,846,308
4,660,000 California County Tobacco Securitization
Agency, Sonoma County Corp.,
5.125%, 6/1/38 4,630,782
2,385,000 California County Tobacco Securitization
Agency, Sonoma County Corp.,
5.25%, 6/1/45 2,371,334
1,300,000 California Municipal Finance Authority, John
Adams Academics Project, 5.25%, 10/1/45 1,407,185
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
-----------------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (b) Spread (c) Value
-----------------------------------------------------------------------------------------------------------------
California -- (continued)
6,300,000 California Municipal Finance Authority, Santa
Rosa Academy Project Ser A, 6.0%, 7/1/42 $ 6,831,090
500,000 California Municipal Finance Authority, Santa
Rosa Academy Project, 5.125%, 7/1/35 533,495
1,575,000 California Municipal Finance Authority, Santa
Rosa Academy Project, 5.375%, 7/1/45 1,688,116
1,000,000 California School Finance Authority, 6.0%,
View Park Elementary and Middle
School, 10/1/49 1,095,430
3,000,000 California School Finance Authority, 7.375%,
Classical Academies Project, 10/1/43 3,540,000
3,230,000 California School Finance Authority, ICEF View
Park High School, 7.125%, 10/1/48 3,724,319
830,000 California School Finance Authority, View Park
Elementary and Middle School,
5.625%, 10/1/34 901,787
1,475,000 California School Finance Authority, View
Park Elementary and Middle School,
5.875%, 10/1/44 1,609,387
1,560,000 California Statewide Communities
Development Authority, California Baptist
University, 6.125%, 11/1/33 1,757,636
4,030,000 California Statewide Communities
Development Authority, California Baptist
University, 6.375%, 11/1/43 4,585,979
2,000,000 California Statewide Communities
Development Authority, Lancer Edl Student
Housing Project, 7.5%, 6/1/42 2,212,780
315,559 California Statewide Communities
Development Authority, Microgy Holdings
Project, 9.0%, 12/1/38 (g) 3
5,810,000 Golden State Tobacco Securitization
Corp., 6/1/37 5,843,872
2,500,000 Pittsburg Unified School District, 9/1/41
(AGM CNTY GTD) (d) 1,014,875
1,925,000 Pittsburg Unified School District, 9/1/42
(AGM CNTY GTD) (d) 748,998
2,000,000 River Islands Public Financing Authority,
5.5%, 9/1/45 2,144,900
4,395,000 Tobacco Securitization Authority of Southern
California, 5.0%, 6/1/37 4,394,560
---------------
$ 58,111,954
-----------------------------------------------------------------------------------------------------------------
Colorado -- 4.7%
2,345,000 Castle Oaks Metropolitan District No 3,
5.5%, 12/1/45 (f) $ 2,415,960
2,860,000 Castle Oaks Metropolitan District No 3,
6.25%, 12/1/44 (f) 3,047,759
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 17
Schedule of Investments | 8/31/17 (continued)
-----------------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (b) Spread (c) Value
-----------------------------------------------------------------------------------------------------------------
Colorado -- (continued)
2,000,000 Colorado Educational & Cultural Facilities
Authority, Charter School Rocky Mountain
Classical, 8.0%, 9/1/43 $ 2,247,180
5,000,000 Colorado Educational & Cultural Facilities
Authority, Charter School Rocky Mountain
Classical, 8.125%, 9/1/48 5,635,900
2,000,000 Copperleaf Metropolitan District No 2,
5.75%, 12/1/45 (f) 2,121,540
2,840,000 Crystal Crossing Metropolitan District,
5.25%, 12/1/40 (f) 2,890,183
1,500,000 Dominion Water & Sanitation District,
6.0%, 12/1/46 1,560,765
2,575,000 Great Western Park Metropolitan District
No 2, 5.0%, 12/1/46 (f) 2,595,059
500,000 Leyden Rock Metropolitan District No 10,
4.0%, 12/1/25 (f) 501,850
500,000 Leyden Rock Metropolitan District No 10,
7.25%, 12/15/45 (f) 468,030
1,700,000 Littleton Village Metropolitan District No 2,
5.375%, 12/1/45 (f) 1,714,654
1,500,000 Promenade Castle Rock Metropolitan District
No 1, 5.75%, 12/1/39 (f) 1,591,635
1,000,000 Sterling Ranch Community Authority Board,
5.75%, 12/1/45 (MUN GOVT GTD) 1,009,030
575,000 Water Valley Metropolitan District No 02,
5.25%, 12/1/40 (f) 620,005
---------------
$ 28,419,550
-----------------------------------------------------------------------------------------------------------------
Connecticut -- 0.5%
2,885,000 Town of Hamden Connecticut, Whitney
Center Project, 7.75%, 1/1/43 $ 3,041,136
-----------------------------------------------------------------------------------------------------------------
District of Columbia -- 0.1%
735,000 District of Columbia Tobacco Settlement
Financing Corp., 6.75%, 5/15/40 $ 786,347
-----------------------------------------------------------------------------------------------------------------
Florida -- 1.1%
5,000,000 Alachua County Health Facilities Authority,
Terraces Bonita Springs Project,
8.125%, 11/15/46 $ 5,752,000
1,820,000 County of Liberty Florida, 8.25%, 7/1/28 (g) 910,000
---------------
$ 6,662,000
-----------------------------------------------------------------------------------------------------------------
Georgia -- 0.9%
5,000,000 Atlanta Development Authority,
6.75%, 1/1/35 $ 5,195,000
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
-----------------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (b) Spread (c) Value
-----------------------------------------------------------------------------------------------------------------
Hawaii -- 0.2%
1,000,000 State of Hawaii Department of Budget &
Finance, 15 Craigside Project,
9.0%, 11/15/44 $ 1,174,120
-----------------------------------------------------------------------------------------------------------------
Illinois -- 6.6%
1,000,000 Chicago Board of Education,
5.75%, 4/1/35 $ 1,114,450
2,010,000 Chicago Board of Education, 6.0%, 4/1/46 2,336,022
8,000,000 Chicago Board of Education, 6.5%,
12/1/46 (f) 8,980,080
1,000,000 Chicago Board of Education, 7.0%,
12/1/46 (f) 1,172,830
4,213,653 4.00 Illinois Finance Authority, Clare Oaks Project
Series B, Floating Rate Note, 11/15/52 3,128,637
2,634,795 Illinois Finance Authority, Clare Oaks Project
Series C1, 11/15/52 (d) 90,373
526,959 Illinois Finance Authority, Clare Oaks Project
Series C2, 11/15/52 (d) 138,221
526,959 Illinois Finance Authority, Clare Oaks Project
Series C3, 11/15/52 (d) 85,525
1,155,000 Illinois Finance Authority, Norwegian American
Hospital, 7.625%, 9/15/28 1,213,224
4,780,000 Illinois Finance Authority, Norwegian American
Hospital, 7.75%, 9/15/38 5,318,993
6,805,000 Metropolitan Pier & Exposition Authority,
5.0%, 6/15/50 (ST APPROP) 6,855,561
340,000 Metropolitan Pier & Exposition Authority,
5.2%, 6/15/50 (ST APPROP) 346,865
7,020,000 Southwestern Illinois Development Authority,
Comprehensive Mental Health Center,
6.625%, 6/1/37 6,992,271
2,110,000 Southwestern Illinois Development Authority,
Village of Sauget Project, 5.625%, 11/1/26 2,021,654
---------------
$ 39,794,706
-----------------------------------------------------------------------------------------------------------------
Indiana -- 8.4%
1,750,000 City of Carmel Indiana, Barrington Carmel
Project Series A, 7.0%, 11/15/32 $ 1,908,165
2,000,000 City of Carmel Indiana, Barrington Carmel
Project Series A, 7.125%, 11/15/42 2,182,540
2,000,000 City of Carmel Indiana, Barrington Carmel
Project Series A, 7.125%, 11/15/47 2,177,780
3,500,000 City of Crown Point Indiana, Wittenberg
Village Project, 8.0%, 11/15/39 3,750,320
2,475,000 City of Evansville Indiana, 5.45%, 1/1/38 2,482,178
1,275,000 City of Kokomo Indiana, 5.75%, 1/1/34 1,305,664
5,325,000 City of Kokomo Indiana, 5.875%, 1/1/37 5,456,368
1,230,000 City of Lafayette Indiana, 5.6%, 1/1/33 1,255,067
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 19
Schedule of Investments | 8/31/17 (continued)
-----------------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (b) Spread (c) Value
-----------------------------------------------------------------------------------------------------------------
Indiana -- (continued)
6,000,000 City of Lafayette Indiana, 5.8%, 1/1/37 $ 6,112,860
2,050,000 City of Muncie Indiana, 5.05%, 1/1/31 2,009,348
5,510,000 City of Muncie Indiana, 5.25%, 1/1/37 5,308,775
4,000,000 Hospital Authority of Vigo County, Union
Hospital, Inc., 8.0%, 9/1/41 5,058,560
2,100,000 Indiana Finance Authority, 5.125%, 7/1/37 2,076,669
3,420,000 Indiana Finance Authority, 5.375%, 7/1/47 3,377,387
6,580,000 Indiana State housing & Community
Development Authority Evergreen Village
Bloomington Project, 5.5%, 1/1/37 6,426,423
---------------
$ 50,888,104
-----------------------------------------------------------------------------------------------------------------
Iowa -- 0.5%
3,000,000 Iowa Tobacco Settlement Authority,
5.625%, 6/1/46 $ 3,009,000
-----------------------------------------------------------------------------------------------------------------
Maryland -- 0.2%
970,000 Maryland Health & Higher Educational
Facilities Authority, City Neighbors Series A,
6.75%, 7/1/44 $ 1,070,608
-----------------------------------------------------------------------------------------------------------------
Massachusetts -- 1.9%
1,116,746 Massachusetts Development Finance
Agency Senior Linden Ponds Inc. Series B
Subseries II, 11/15/56 (d) $ 26,188
3,903,837 Massachusetts Development Finance
Agency, 5.5%, Linden Ponds, Inc., 11/15/46 3,903,642
2,000,000 Massachusetts Development Finance
Agency, Adventcare Project Series A,
6.75%, 10/15/37 2,005,260
830,000 Massachusetts Development Finance Agency,
Adventcare Project, 7.625%, 10/15/37 895,985
1,235,770 Massachusetts Development Finance
Agency, Linden Ponds, Inc., Series A-1,
6.25%, 11/15/26 1,288,513
3,340,294 Massachusetts Development Finance
Agency, Linden Ponds, Inc., Series A-1,
6.25%, 11/15/39 3,459,309
---------------
$ 11,578,897
-----------------------------------------------------------------------------------------------------------------
Michigan -- 7.7%
1,250,000 Flint Hospital Building Authority, Hurley
Medical Center Series A, 5.25%, 7/1/39 $ 1,294,175
1,250,000 Flint Hospital Building Authority, Hurley
Medical Center, 7.375%, 7/1/35 1,362,900
5,485,000 Flint International Academy,
5.75%, 10/1/37 5,487,962
145,000 Michigan Public Educational Facilities
Authority, Dr. Joseph Pollack, 7.25%, 4/1/20 151,379
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
-----------------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (b) Spread (c) Value
-----------------------------------------------------------------------------------------------------------------
Michigan -- (continued)
2,020,000 Michigan Public Educational Facilities
Authority, Dr. Joseph Pollack, 8.0%, 4/1/40 $ 2,150,936
4,195,000 Michigan Public Educational Facilities
Authority, Ltd Oblig-David Ellis-West Project,
5.875%, 6/1/37 4,195,881
7,135,000 6.75 Michigan Strategic Fund, CFP Michigan Dept
Offices Lease B, Floating Rate Note, 3/1/40 7,457,074
4,000,000 6.62 Michigan Strategic Fund, Floating Rate
Note, 11/1/41 4,097,680
80,000,000 Michigan Tobacco Settlement Finance
Authority, 6/1/58 (d) 1,843,200
7,775,000 Michigan Tobacco Settlement Finance
Authority, 6.0%, 6/1/34 7,774,067
9,280,000 Michigan Tobacco Settlement Finance
Authority, 6.0%, 6/1/48 9,163,536
1,250,000 Michigan Tobacco Settlement Finance
Authority, 6.875%, 6/1/42 1,272,800
---------------
$ 46,251,590
-----------------------------------------------------------------------------------------------------------------
Minnesota -- 0.8%
2,000,000 Bloomington Port Authority, Radisson Blu
MOA LLC, 9.0%, 12/1/35 $ 2,111,320
400,000 City of Deephaven Minnesota, Eagle Ridge
Academy Project, 5.25%, 7/1/37 423,656
1,500,000 City of Deephaven Minnesota, Eagle Ridge
Academy Project, 5.5%, 7/1/50 1,594,950
1,000,000 Housing & Redevelopment Authority of The
City of St Paul Minnesota, 5.5%, 7/1/52 1,002,930
---------------
$ 5,132,856
-----------------------------------------------------------------------------------------------------------------
Missouri -- 1.8%
5,540,000 Community Memorial Hospital District,
6.68%, 12/1/34 $ 5,715,452
500,000 Kansas City Industrial Development
Authority, 4.25%, 4/1/26 479,800
1,000,000 Kansas City Industrial Development
Authority, 5.0%, 4/1/36 962,700
1,150,000 Kansas City Industrial Development
Authority, 5.0%, 4/1/46 1,069,604
2,500,000 Kirkwood Industrial Development Authority,
Aberdeen Hrights Series A, 8.25%, 5/15/45 2,973,300
---------------
$ 11,200,856
-----------------------------------------------------------------------------------------------------------------
New Jersey -- 1.4%
1,215,000 New Jersey Economic Development Authority,
5.25%, 7/1/37 $ 1,208,986
2,500,000 New Jersey Economic Development Authority,
5.375%, 7/1/47 2,476,125
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 21
Schedule of Investments | 8/31/17 (continued)
-----------------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (b) Spread (c) Value
-----------------------------------------------------------------------------------------------------------------
New Jersey -- (continued)
4,500,000 New Jersey Health Care Facilities Financing
Authority, St. Peters University Hospital,
6.25%, 7/1/35 $ 4,932,810
---------------
$ 8,617,921
-----------------------------------------------------------------------------------------------------------------
New Mexico -- 1.6%
395,000 County of Otero New Mexico,
8.75%, 4/1/18 $ 394,238
1,430,000 County of Otero New Mexico, 9.0%, 4/1/23 1,398,154
7,970,000 9.00 County of Otero New Mexico, Floating Rate
Note, 4/1/28 7,643,150
---------------
$ 9,435,542
-----------------------------------------------------------------------------------------------------------------
New York -- 5.0%
5,000,000 Nassau County Tobacco Settlement Corp.,
5.125%, 6/1/46 $ 4,995,100
2,620,000 New York Counties Tobacco Trust IV,
5.0%, 6/1/45 2,490,153
9,030,000 Suffolk Tobacco Asset Securitization Corp.,
6.0%, 6/1/48 9,032,619
8,000,000 Suffolk Tobacco Asset Securitization
Corp., 6.6%, 6/1/44 8,448,800
10,000,000 The Erie County Industrial Development
Agency, Galvstar LLC Project Series A,
10/1/30 (d) (g) 2,498,600
8,000,000 The Erie County Industrial Development
Agency, Galvstar LLC Project Series B,
10/1/30 (d) (g) 1,998,880
1,795,000 The Erie County Industrial Development
Agency, Galvstar LLC Project Series C,
10/1/30 (d) (g) 448,499
---------------
$ 29,912,651
-----------------------------------------------------------------------------------------------------------------
Ohio -- 5.3%
2,425,000 Buckeye Tobacco Settlement Financing
Authority, 5.75%, 6/1/34 $ 2,266,066
12,000,000 Buckeye Tobacco Settlement Financing
Authority, 5.875%, 6/1/47 11,451,600
9,285,000 Buckeye Tobacco Settlement Financing
Authority, 6.0%, 6/1/42 8,877,760
6,335,000 Buckeye Tobacco Settlement Financing
Authority, 6.5%, 6/1/47 6,303,578
2,900,000 Southeastern Ohio Port Authority,
6.0%, 12/1/42 3,189,275
---------------
$ 32,088,279
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
-----------------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (b) Spread (c) Value
-----------------------------------------------------------------------------------------------------------------
Pennsylvania -- 8.8%
850,000 Allegheny County Hospital Development
Authority, Ohio Valley General Hospital
Project A, 5.125%, 4/1/35 $ 807,440
1,000,000 Chester County Industrial Development
Authority, 5.125%, 10/15/37 1,020,500
2,335,000 Chester County Industrial Development
Authority, 5.25%, 10/15/47 2,378,828
8,425,000 Delaware County Industrial Development
Authority Pennsylvania, 5.125%, 6/1/46 8,376,725
2,005,000 Pennsylvania Economic Development
Financing Authority, US Airways Group
Series A, 7.5%, 5/1/20 2,238,382
8,445,000 Pennsylvania Economic Development
Financing Authority, US Airways Group
Series B, 8.0%, 5/1/29 9,504,932
2,200,000 Philadelphia Authority for Industrial
Development, 6.5%, 6/1/45 2,278,144
3,145,000 Philadelphia Authority for Industrial
Development, 6.625%, 6/1/50 3,270,957
2,500,000 Philadelphia Authority for Industrial
Development, Green Woods Charter School
Projects A, 5.5%, 6/15/32 2,583,600
5,200,000 Philadelphia Authority for Industrial
Development, Green Woods Charter School
Projects A, 5.75%, 6/15/42 5,374,980
6,000,000 Philadelphia Authority for Industrial
Development, Nueva Esperanze Inc.,
8.2%, 12/1/43 6,873,420
1,000,000 Philadelphia Authority for Industrial
Development, Performing Arts Charter School
Project, 6.5%, 6/15/33 (144A) 1,068,820
3,000,000 Philadelphia Authority for Industrial
Development, Performing Arts Charter School
Project, 6.75%, 6/15/43 (144A) 3,217,890
4,000,000 The Hospitals & Higher Education Facilities
Authority of Philadelphia, Temple University
Health System Series A, 5.625%, 7/1/42 4,404,640
---------------
$ 53,399,258
-----------------------------------------------------------------------------------------------------------------
Puerto Rico -- 2.0%
21,000,000 Commonwealth of Puerto Rico, 8.0%,
7/1/35 (f) (g) $ 12,153,750
-----------------------------------------------------------------------------------------------------------------
Rhode Island -- 0.1%
2,065,000 Central Falls Detention Facility Corp.,
7.25%, 7/15/35 (g) $ 495,394
-----------------------------------------------------------------------------------------------------------------
Tennessee -- 0.0%+
5,000 Johnson City Health & Educational Facilities
Board, Appalachian Christian Village,
5.0%, 2/15/43 $ 4,613
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 23
Schedule of Investments | 8/31/17 (continued)
-----------------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (b) Spread (c) Value
-----------------------------------------------------------------------------------------------------------------
Texas -- 9.6%
200,000 Arlington Higher Education Finance Corp.,
5.875%, 3/1/24 $ 206,698
525,000 Arlington Higher Education Finance Corp.,
6.625%, 3/1/29 545,307
375,000 Arlington Higher Education Finance Corp.,
7.0%, 3/1/34 391,868
7,030,000 Arlington Higher Education Finance Corp.,
Universal Academy Series A,
7.125%, 3/1/44 7,335,454
375,000 City of Celina Texas, 5.375%, 9/1/28 369,349
900,000 City of Celina Texas, 5.5%, 9/1/24 891,315
250,000 City of Celina Texas, 5.5%, 9/1/32 245,350
650,000 City of Celina Texas, 5.875%, 9/1/40 635,102
1,075,000 City of Celina Texas, 6.0%, 9/1/30 1,061,659
2,700,000 City of Celina Texas, 6.25%, 9/1/40 2,700,000
500,000 City of Mclendon-Chisholm Texas, Sonoma
Public Impt Dist Phase, 5.125%, 9/15/28 496,080
450,000 City of Mclendon-Chisholm Texas, Sonoma
Public Impt Dist Phase, 5.375%, 9/15/35 445,126
380,000 City of Mclendon-Chisholm Texas, Sonoma
Public Impt Dist Phase, 5.5%, 9/15/40 375,349
234,442 Gulf Coast Industrial Development Authority,
Microgy Holdings Project, 12/1/36 (d) (g) 2
1,215,000 Kinney County Public Facilities Corp.,
7.0%, 11/1/25 1,155,161
2,000,000 La Vernia Higher Education Finance Corp.,
Meridian World School Series A,
5.5%, 8/15/45 2,098,780
350,000 New Hope Cultural Education Facilities
Finance Corp., 5.25%, 7/1/36 366,597
1,250,000 New Hope Cultural Education Facilities
Finance Corp., 5.5%, 7/1/46 1,314,150
1,000,000 New Hope Cultural Education Facilities
Finance Corp., 5.75%, 7/1/51 1,067,660
125,000 New Hope Cultural Education Facilities
Finance Corp., 6.0%, 7/1/26 122,468
1,350,000 New Hope Cultural Education Facilities
Finance Corp., 7.0%, 7/1/51 1,360,773
17,350,000 Sanger Industrial Development Corp., Texas
Pellets Project Series B, 8.0%, 7/1/38 (a)(g) 8,241,250
2,250,000 Tarrant County Cultural Education Facilities
Finance Corp., 4.625%, 11/15/41 1,884,892
5,000,000 Tarrant County Cultural Education Facilities
Finance Corp., 4.875%, 11/15/48 4,205,950
3,500,000 Tarrant County Cultural Education Facilities
Finance Corp., 6.625%, 11/15/37 3,800,930
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
-----------------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (b) Spread (c) Value
-----------------------------------------------------------------------------------------------------------------
Texas -- (continued)
500,000 Tarrant County Cultural Education Facilities
Finance Corp., 8.25%, 11/15/39 $ 534,155
120,000 Tarrant County Cultural Education Facilities
Finance Corp., MRC Crestview Project,
8.0%, 11/15/34 145,847
6,350,000 Tarrant County Cultural Education Facilities
Finance Corp., MRC Crestview Project,
8.125%, 11/15/44 7,742,618
1,775,000 Tarrant County Cultural Education Facilities
Finance Corp., Stayton at Museum Way
Series A, 8.0%, 11/15/28 1,892,523
5,400,000 Tarrant County Cultural Education Facilities
Finance Corp., Stayton at Museum Way
Series A, 8.25%, 11/15/44 5,766,552
1,000,000 Texas Midwest Public Facility Corp., Secure
Treatment Facility Project, 10/1/30 (d) (g) 349,900
---------------
$ 57,748,865
-----------------------------------------------------------------------------------------------------------------
Utah -- 2.1%
3,500,000 Utah Charter School Finance Authority,
5.375%, 6/15/48 (UT CSCE) $ 3,427,550
915,000 Utah Charter School Finance Authority,
Summit Academy High School Series A,
7.25%, 5/15/21 984,082
1,985,000 Utah Charter School Finance Authority,
Summit Academy High School Series A,
8.125%, 5/15/31 2,223,915
5,145,000 Utah Charter School Finance Authority,
Summit Academy High School Series A,
8.5%, 5/15/41 5,815,291
---------------
$ 12,450,838
-----------------------------------------------------------------------------------------------------------------
Virginia -- 3.7%
2,100,000 Cherry Hill Community Development Authority,
Potomac Shores Project, 5.4%, 3/1/45 $ 2,193,093
815,000 Embrey Mill Community Development
Authority, 5.3%, 3/1/35 818,301
4,685,000 Embrey Mill Community Development
Authority, 5.6%, 3/1/45 4,771,063
15,000,000 Tobacco Settlement Financing Corp. Virginia,
5.0%, 6/1/47 14,331,000
---------------
$ 22,113,457
-----------------------------------------------------------------------------------------------------------------
West Virginia -- 3.3%
25,000,000 City of Philippi West Virginia, 7.75%,
10/1/44 (g) $ 14,999,998
5,340,000 West Virginia Hospital Finance Authority,
Highland Hospital Oblig Group, 9.125%,
10/1/41 (g) 4,935,228
---------------
$ 19,935,226
-----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 25
Schedule of Investments | 8/31/17 (continued)
-----------------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (b) Spread (c) Value
-----------------------------------------------------------------------------------------------------------------
Wisconsin -- 5.7%
500,000 Public Finance Authority, 4.25%, 8/1/26 $ 489,450
2,000,000 Public Finance Authority, 5.0%, 8/1/36 1,938,080
6,250,000 Public Finance Authority, 5.125%, 6/1/48 6,322,375
2,450,000 Public Finance Authority, 5.125%, 8/1/46 2,358,786
8,615,000 Public Finance Authority, Cabs-Springshire
Pre-Dev Project, 12/1/20 (144A) (d) 5,873,793
1,590,000 Public Finance Authority, Coral Academy
Science Las Vegas, 5.625%, 7/1/44 1,724,260
5,325,000 Public Finance Authority, Glenridge Palmer
Ranch Series A, 8.25%, 6/1/46 6,282,542
5,057,500 Public Finance Authority, Las Ventanas
Retirement Community, 7.0%, 10/1/42 5,067,767
1,245,000 Public Finance Authority, Voyager Foundation
Inc., Project Series A, 5.125%, 10/1/45 1,268,904
2,815,000 Public Finance Authority, Voyager Foundation
Inc., Project Series A, 6.2%, 10/1/42 3,011,712
---------------
$ 34,337,669
-----------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $591,850,322) $ 585,976,542
-----------------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT
OBLIGATION -- 0.0%+
1,175,000 0.72 Non-Profit Preferred Funding Trust I, Floating
Rate Note, 9/15/37 (144A) $ 18,800
-----------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED DEBT
OBLIGATION
(Cost $1,172,707) $ 18,800
-----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN UNAFFILIATED
ISSUERS -- 98.4%
(Cost $601,023,029) (h) $ 593,995,342
-----------------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 1.6% $ 9,586,139
-----------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 603,581,481
=================================================================================================================
+ Amount rounds to less than 0.1%.
(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, 2017, the value of these securities
amounted to $18,179,303 or 3.0% of net assets.
(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.
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
(a) Securities that used significant unobservable inputs to
determine their value.
(b) Debt obligation with a variable or floating interest rate. Rate
shown is rate at period end.
(c) Floating rate note. Reference index and spread shown at
period end.
(d) Security issued with a zero coupon. Income is earned through
accretion of discount.
(e) Consists of Revenue Bonds unless otherwise indicated.
(f) Represents a General Obligation Bond.
(g) Security is in default.
(h) The concentration of investments by type of obligation/market
sector is as follows:
Revenue Bonds:
Special Revenues 25.8%
Health 21.3%
Education 21.1%
Various Revenues 8.4%
General Obligation 6.8%
Housing 6.6%
Pollution Control Revenue 4.0%
Escrowed 3.5%
Transportation 2.0%
Insured 0.3%
Water & Sewer 0.2%
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2017 aggregated to $201,609,607 and $236,404,170,
respectively.
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain Funds and accounts for which Amundi Pioneer Asset
Management, Inc., formerly Pioneer Investment Management, Inc. (the Adviser)
serves as investment adviser, as set forth in Rule 17a-7 under the Investment
Company Act of 1940, pursuant to procedures adopted by the Board of Trustees.
Under these procedures, cross trades are effected at current market prices.
During the year ended August 31, 2017, the Fund engaged in purchases and sales
pursuant to these procedures amounting to $4,971,119 and $19,941,349,
respectively, which resulted in a net realized gain/loss of $--.
At August 31, 2017, the net unrealized depreciation on investments based on cost
for federal income tax purposes of $608,768,321 was as follows:
Aggregate gross unrealized appreciation for all investments in which there
is an excess of value over tax cost $ 42,820,130
Aggregate gross unrealized depreciation for all investments in which there
is an excess of tax cost over value (57,593,109)
------------
Net unrealized depreciation $(14,772,979)
============
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.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 27
Schedule of Investments | 8/31/17 (continued)
The following is a summary of the inputs used as of August 31, 2017, in valuing
the Fund's investments:
--------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------
Corporate Bond $ -- $ 8,000,000 $ -- $ 8,000,000
Municipal Bonds
Texas -- -- 8,241,250 8,241,250
All Other Municipal Bonds -- 577,735,292 -- 577,735,292
Municipal Collateralized
Debt Obligation -- 18,800 -- 18,800
--------------------------------------------------------------------------------------
Total $ -- $585,754,092 $ 8,241,250 $593,995,342
======================================================================================
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
--------------------------------------------------------------------------------------
Municipal
Bonds
--------------------------------------------------------------------------------------
Balance as of 8/31/16 $ --
Realized gain (loss)(1) --
Change in unrealized appreciation (depreciation)(2) (6,857,414)
Purchases --
Sales --
Transfers in to Level 3* 15,098,664
Transfers out of Level 3* --
Changes between Level 3* --
--------------------------------------------------------------------------------------
Balance as of 8/31/17 $ 8,241,250
======================================================================================
(1) Realized gain (loss) on these securities is included in the net realized
gain (loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) on investments in the
Statement of Operations.
* Transfers are calculated on beginning of period values. During the year
ended August 31, 2017, an investment having a value of $15,098,664 was
transferred from Level 2 to Level 3. The change in the level designation
within the fair value hierarchy was due to valuing the security using
unobservable inputs. There were no other transfers between levels 1, 2 and
3.
Net change in unrealized appreciation (depreciation) of
investments still held as of 8/31/17 $(6,857,414)
------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Statement of Assets and Liabilities | 8/31/17
ASSETS:
Investment in unaffiliated issuers, at value (cost $601,023,029) $593,995,342
Cash 5,081,218
Receivables --
Investment securities sold 285,000
Fund shares sold 972,486
Interest 8,979,546
Other assets 37,277
---------------------------------------------------------------------------------------
Total assets $609,350,869
=======================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 3,435,110
Fund shares repurchased 1,532,521
Distributions 433,720
Trustee fees 4,021
Due to affiliates 128,374
Accrued expenses 235,642
---------------------------------------------------------------------------------------
Total liabilities $ 5,769,388
=======================================================================================
NET ASSETS:
Paid-in capital $652,292,155
Undistributed net investment income 6,284,040
Accumulated net realized loss on investments (47,967,027)
Net unrealized depreciation on investments (7,027,687)
---------------------------------------------------------------------------------------
Net assets $603,581,481
=======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $267,618,011/36,558,668 shares) $ 7.32
Class C (based on $143,845,858/19,642,094 shares) $ 7.32
Class Y (based on $192,117,612/26,591,204 shares) $ 7.22
MAXIMUM OFFERING PRICE:
Class A ($7.32 (divided by) 95.5%) $ 7.66
=======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 29
Statement of Operations
For the Year Ended 8/31/17
INVESTMENT INCOME:
Interest from unaffiliated issuers $33,721,915
---------------------------------------------------------------------------------------
Total investment income $ 33,721,915
---------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 2,919,816
Transfer agent fees
Class A 79,681
Class C 71,611
Class Y 204,614
Distribution fees
Class A 664,116
Class C 1,487,479
Shareholder communications expense 19,543
Administrative expense 196,892
Custodian fees 10,488
Registration fees 77,242
Professional fees 114,955
Printing expense 32,269
Fees and expenses of nonaffiliated Trustees 24,479
Interest expense 20,323
Miscellaneous 124,561
---------------------------------------------------------------------------------------
Total expenses $ 6,048,069
---------------------------------------------------------------------------------------
Net investment income $ 27,673,846
---------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments from unaffiliated issuers $ 8,151,315
---------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments from unaffiliated issuers $ (31,630,599)
---------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ (23,479,284)
---------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 4,194,562
=======================================================================================
The accompanying notes are an integral part of these financial statements.
30 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/2017 8/31/2016*
------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 27,673,846 $ 26,751,307
Net realized gain (loss) on investments 8,151,315 1,989,101
Change in net unrealized appreciation (depreciation)
on investments (31,630,599) 29,466,344
------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 4,194,562 $ 58,206,752
------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.36 and $0.40 per share, respectively) $ (13,103,073) $ (14,110,287)
Class C ($0.30 and $0.34 per share, respectively) (6,202,431) (7,100,365)
Class Y ($0.37 and $0.41 per share, respectively) (8,854,782) (8,411,972)
------------------------------------------------------------------------------------------
Total distributions to shareowners $ (28,160,286) $ (29,622,624)
------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 204,185,029 $ 207,486,927
Reinvestment of distributions 22,405,883 23,616,447
Cost of shares repurchased (249,144,004) (129,694,923)
------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ (22,553,092) $ 101,408,451
------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (46,518,816) $ 129,992,579
NET ASSETS:
Beginning of year $ 650,100,297 $ 520,107,718
------------------------------------------------------------------------------------------
End of year $ 603,581,481 $ 650,100,297
------------------------------------------------------------------------------------------
Undistributed net investment income $ 6,284,040 $ 6,773,545
==========================================================================================
* The Fund was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 31
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
8/31/2017 8/31/2017 8/31/2016 8/31/2016
Shares Amount Shares* Amount*
------------------------------------------------------------------------------------------
Class A
Shares sold 9,719,821 $ 70,529,861 10,879,895 $ 80,711,420
Reinvestment of distributions 1,569,240 11,387,227 1,622,275 12,049,427
Less shares repurchased (13,192,917) (95,085,636) (8,107,638) (59,867,557)
------------------------------------------------------------------------------------------
Net increase (decrease) (1,903,856) $ (13,168,548) 4,394,532 $ 32,893,290
==========================================================================================
Class C
Shares sold 2,530,254 $ 18,405,387 4,458,277 $ 33,099,836
Reinvestment of distributions 709,801 5,151,939 773,004 5,742,165
Less shares repurchased (5,444,559) (39,311,261) (3,616,789) (26,764,754)
------------------------------------------------------------------------------------------
Net increase (decrease) (2,204,504) $ (15,753,935) 1,614,492 $ 12,077,247
==========================================================================================
Class Y
Shares sold 16,143,744 $ 115,249,781 12,761,015 $ 93,675,671
Reinvestment of distributions 818,582 5,866,717 793,540 5,824,855
Less shares repurchased (16,021,607) (114,747,107) (5,899,448) (43,062,612)
------------------------------------------------------------------------------------------
Net increase 940,719 $ 6,369,391 7,655,107 $ 56,437,914
==========================================================================================
* The Fund was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
32 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/2017 8/31/2016** 8/31/2015** 8/31/2014** 8/31/2013
---------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 7.59 $ 7.22 $ 7.27 $ 7.19 $ 7.94
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.35(a) $ 0.36(a) $ 0.41 $ 0.43 $ 0.53
Net realized and unrealized gain (loss) on investments (0.26) 0.41 (0.06) 0.09 (0.84)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.09 $ 0.77 $ 0.35 $ 0.52 $ (0.31)
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.36) $ (0.40) $ (0.40) $ (0.44) $ (0.44)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.27) $ 0.37 $ (0.05) $ 0.08 $ (0.75)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.32 $ 7.59 $ 7.22 $ 7.27 $ 7.19
===========================================================================================================================
Total return* 1.32% 10.90% 4.88% 7.52% (4.26)%
Ratio of net expenses to average net assets 0.88% 0.87% 0.89% 0.90% 0.88%
Ratio of net investment income (loss) to average net assets 4.85% 4.86% 5.59% 5.97% 6.26%
Portfolio turnover rate 35% 20% 29% 55% 17%
Net assets, end of period (in thousands) $267,618 $292,019 $245,877 $240,331 $250,163
===========================================================================================================================
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
* 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 Fund was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 33
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/2017 8/31/2016** 8/31/2015** 8/31/2014** 8/31/2013
---------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 7.59 $ 7.22 $ 7.28 $ 7.19 $ 7.94
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.30(a) $ 0.30(a) $ 0.36 $ 0.41 $ 0.46
Net realized and unrealized gain (loss) on investments (0.27) 0.41 (0.07) 0.07 (0.83)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.03 $ 0.71 $ 0.29 $ 0.48 $ (0.37)
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.30) $ (0.34) $ (0.35) $ (0.39) $ (0.38)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.27) $ 0.37 $ (0.06) $ 0.09 $ (0.75)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.32 $ 7.59 $ 7.22 $ 7.28 $ 7.19
===========================================================================================================================
Total return* 0.55% 10.07% 3.95% 6.85% (4.98)%
Ratio of net expenses to average net assets 1.65% 1.63% 1.65% 1.66% 1.63%
Ratio of net investment income (loss) to average net assets 4.10% 4.10% 4.83% 5.23% 5.53%
Portfolio turnover rate 35% 20% 29% 55% 17%
Net assets, end of period (in thousands) $143,846 $165,883 $146,029 $149,453 $195,290
===========================================================================================================================
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
* 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 Fund was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
34 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/2017 8/31/2016** 8/31/2015** 8/31/2014** 8/31/2013
---------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 7.49 $ 7.12 $ 7.18 $ 7.10 $ 7.84
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.36(a) $ 0.37(a) $ 0.39 $ 0.46 $ 0.53
Net realized and unrealized gain (loss) on investments (0.26) 0.41 (0.04) 0.07 (0.82)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.10 $ 0.78 $ 0.35 $ 0.53 $ (0.29)
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.37) $ (0.41) $ (0.41) $ (0.45) $ (0.45)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.27) $ 0.37 $ (0.06) $ 0.08 $ (0.74)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.22 $ 7.49 $ 7.12 $ 7.18 $ 7.10
===========================================================================================================================
Total return* 1.45% 11.17% 4.92% 7.69% (4.05)%
Ratio of net expenses to average net assets 0.72% 0.71% 0.71% 0.71% 0.72%
Ratio of net investment income (loss) to average net assets 4.99% 5.01% 5.77% 6.17% 6.40%
Portfolio turnover rate 35% 20% 29% 55% 17%
Net assets, end of period (in thousands) $192,118 $192,198 $128,202 $100,199 $119,658
===========================================================================================================================
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** The Fund was audited by another independent registered public accounting
firm other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 35
Notes to Financial Statements | 8/31/17
1. Organization and Significant Accounting Policies
Pioneer High Income Municipal Fund (the Fund) is one of three 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 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.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world. Amundi, one of the world's
largest asset managers, is headquartered in Paris, France. As a result of the
transaction, Pioneer Investment Management, Inc., the Fund's investment adviser,
became an indirect wholly owned subsidiary of Amundi and Amundi's wholly owned
subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer Investments was
owned by Pioneer Global Asset Management S.p.A., a wholly owned subsidiary of
UniCredit S.p.A.
In connection with the transaction, the names of the Fund's investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc.
(the Adviser) and the name of Pioneer Funds Distributor, Inc. changed to Amundi
Pioneer Distributor, Inc. (the Distributor).
36 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
In October 2016, the Securities and Exchange Commission (SEC) released its Final
Rule on Investment Company Reporting Modernization. In addition to introducing
two new regulatory reporting forms (Form N-PORT and Form N-CEN), the Final Rule
amends Regulation S-X, which impacts financial statement presentation,
particularly related to the presentation of derivative investments. Financial
statements with a period end date on or after August 1, 2017 are required to be
in compliance with the amendments to Regulation S-X. The Fund's financial
statements were prepared in compliance with the amendments to Regulation S-X.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles (U.S. GAAP) that require the management
of the Fund to make estimates and assumptions that affect the reported amounts
of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the financial statements, and the reported amounts of income,
expenses and gain or loss on investments during the reporting period. Actual
results could differ from those estimates.
The Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the New
York Stock Exchange (NYSE) is open, as of the close of regular trading on
the NYSE.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to supply
prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Cash may include overnight time deposits at approved financial
institutions.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 37
Securities or loan interests for which independent pricing services or
broker dealers are unable to supply prices or for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued by a fair valuation team comprised of certain
personnel of the Adviser pursuant to procedures adopted by the Fund's Board
of Trustees. The Adviser's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. The Adviser's
fair valuation team is responsible for monitoring developments that may
impact fair valued securities and for discussing and assessing fair values
on an ongoing basis, and at least quarterly, with the Valuation Committee
of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices, and
such differences could be material.
At August 31, 2017, one security was valued using fair value methods (in
addition to securities valued using prices supplied by independent pricing
services, broker-dealers or using a third party insurance industry pricing
model) representing 1.4% of net assets.
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 over the life of the respective security with a corresponding
increase or decrease in the cost basis of the security. Interest income,
including interest on income-bearing cash accounts, is recorded on the
accrual basis. Interest and dividend income payable by delivery of
additional shares is reclassified as PIK (payment-in-kind) income upon
receipt and is included in interest and dividend income, respectively.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
38 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
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, 2017, 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. GAAP. 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, 2017, the Fund
reclassified $3,065 to decrease undistributed net investment income,
$2,640,380 to decrease paid-in capital and $2,643,445 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, 2017, the Fund was permitted to carry forward indefinitely
$20,705,114 of short-term losses and $21,209,664 of long-term losses under
the Regulated Investment Company Modernization Act of 2010 without
limitation. Additionally, at August 31, 2017, the Fund had a net capital
loss carryforward of $6,008,768 which will expire in 2018 if not utilized.
Since new losses are required to be used first, loss carryforwards that are
subject to expiration may be more likely to expire unused.
During the year ended August 31, 2017, a capital loss carryforward of
$8,137,898 was utilized to offset net realized gains by the Fund.
The tax character of distributions paid during the years ended August 31,
2017 and August 31, 2016 was as follows:
---------------------------------------------------------------------------
2017 2016
---------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $27,065,739 $28,998,856
Ordinary income 1,094,547 623,768
---------------------------------------------------------------------------
Total $28,160,286 $29,622,624
===========================================================================
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 39
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2017:
---------------------------------------------------------------------------
2017
---------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 14,419,571
Capital loss carryforward (47,923,546)
Current year dividend payable (433,720)
Net unrealized depreciation (14,772,979)
---------------------------------------------------------------------------
Total $(48,710,674)
===========================================================================
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. The
Distributor earned $76,890 in underwriting commissions on the sale of Class
A shares during the year ended August 31, 2017.
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 Fund's transfer agent for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
The Fund declares, as daily dividends, substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, and Class Y shares can
reflect different transfer agent and distribution expense rates.
40 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
F. Risks
Interest rates in the U.S. recently have been historically low, so the Fund
faces a heightened risk that interest rates may rise. A general rise in
interest rates may cause investors to move out of fixed-income securities
on a large scale, which could adversely affect the price and liquidity of
fixed-income securities and could also result in increased redemptions from
the Fund.
The municipal bond market can be susceptible to unusual volatility,
particularly for lower-rated and unrated securities. Liquidity can be
reduced unpredictably in response to overall economic conditions or credit
tightening. Municipal issuers may be adversely affected by rising health
care costs, increasing unfunded pension liabilities, and by the phasing out
of federal programs providing financial support. Unfavorable conditions and
developments relating to projects financed with municipal securities can
result in lower revenues to issuers of municipal securities, potentially
resulting in defaults. Issuers often depend on revenues from these projects
to make principal and interest payments. The value of municipal securities
can also be adversely affected by changes in the financial condition of one
or more individual municipal issuers or insurers of municipal issuers,
regulatory and political developments, tax law changes or other legislative
actions, and by uncertainties and public perceptions concerning these and
other factors. Municipal securities may be more susceptible to downgrades
or defaults during recessions or similar periods of economic stress. In
recent periods, an increasing number of municipal issuers in the United
States have defaulted on obligations and commenced insolvency proceedings.
Financial difficulties of municipal issuers may continue or get worse. To
the extent the Fund invests significantly in a single state, including
California and Texas, or in securities the payments on which are dependent
upon a single project or source of revenues, or that relate to a sector or
industry, including health care facilities, education, transportation,
special revenues and pollution control, the Fund will be more susceptible
to associated risks and developments.
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.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 41
2. Management Agreement
The Adviser 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, 2017, the effective management fee (excluding waivers
and/or assumption of expenses) was equivalent to 0.50% of the Fund's average
daily net assets.
The Adviser 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% of the average daily net
assets attributable to Class A shares. Class C and Class Y shares do not have an
expense limitation. Fees waived and expenses reimbursed, if any, during the year
ended August 31, 2017 are reflected on the Statement of Operations. This expense
limitation is in effect through January 1, 2019, for Class A shares. There can
be no assurance that the Adviser will extend the expense limitation agreement
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
$76,661 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at August 31, 2017.
3. Transfer Agent
Boston Financial Data Services, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings and outgoing phone calls. For the year
ended August 31, 2017, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 5,139
Class C 2,742
Class Y 11,662
--------------------------------------------------------------------------------
Total $19,543
================================================================================
42 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
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
(the Plan). Pursuant to the Plan, the Fund pays the Distributor 0.25% of the
average daily net assets attributable to Class A shares as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class A shares. Pursuant to the Plan, the Fund also pays the
Distributor 1.00% of the average daily net assets attributable to Class C
shares. The fee for Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class C shares.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $51,713 in distribution fees payable to the Distributor at August
31, 2017.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to the
Distributor. For the year ended August 31, 2017, CDSCs in the amount of $56,773
were paid to the Distributor.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in which the Fund participated until February 9, 2016 was in the
amount of $240 million. The credit facility in which the Fund participated until
February 7, 2017, was in the amount of $220 million. Effective February 8, 2017,
the Fund participates in a facility that is in the amount of $195 million. Under
such facility, depending on the type of loan, interest on borrowings is payable
at the London Interbank Offered Rate (LIBOR) plus 0.85% on an annualized basis,
or the Alternate Base Rate, which is the greater of (a) the facility's
administrative agent's daily announced prime rate on the borrowing date, (b) 2%
plus the Federal Funds Rate on the borrowing date or (c) 2% plus
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 43
the overnight Eurodollar rate on the borrowing date. The Funds pay an annual
commitment fee to participate in a credit facility. The commitment fee is
allocated among participating Funds based on an allocation schedule set forth
in the credit agreement.
For the year ended August 31, 2017, the average daily amount of borrowings
outstanding during the period was $10,373,684. The related weighted average
annualized interest rate for the period was 1.30%, and the total interest
expense on such borrowings was $20,323, which is included in interest expense,
located on the Statement of Operations. As of August 31, 2017, there were no
borrowings outstanding.
6. Results of Shareholder Meeting
At a special meeting held on June 13, 2017, shareholders of the Fund were asked
to consider the proposals described below. A report of the total votes cast by
the Fund's shareholders (or, with respect to Proposal 2, by shareholders of
Pioneer Series Trust V, as noted below) follows:
------------------------------------------------------------------------------------------
For Against Abstain Broker Non-Votes
------------------------------------------------------------------------------------------
Proposal 1 - To approve 30,786,223.133 730,136.976 1,026,611.200 12,522,400.700
an New Management
Agreement with
the Adviser
------------------------------------------------------------------------------------------
For Withhold
------------------------------------------------------------------------------------------
Proposal 2 - To elect Trustees*
------------------------------------------------------------------------------------------
David R. Bock 52,906,413.845 1,033,842.093
------------------------------------------------------------------------------------------
Benjamin M. Friedman 52,887,736.342 1,052,519.596
------------------------------------------------------------------------------------------
Margaret B.W. Graham 52,932,507.056 1,007,748.882
------------------------------------------------------------------------------------------
Lisa M. Jones 52,966,747.756 973,508.182
------------------------------------------------------------------------------------------
Lorraine H. Monchak 52,946,675.492 993,580.446
------------------------------------------------------------------------------------------
Thomas J. Perna 52,911,994.971 1,028,260.967
------------------------------------------------------------------------------------------
Marguerite A. Piret 52,949,595.338 990,660.600
------------------------------------------------------------------------------------------
Fred J. Ricciardi 52,895,139.856 1,045,116.082
------------------------------------------------------------------------------------------
Kenneth J. Taubes 52,940,075.518 1,000,180.420
------------------------------------------------------------------------------------------
* Proposal 2 was voted on and approved by all series of Pioneer Series Trust
V. Results reported above reflect the combined votes of all series of the
Trust.
44 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V and the Shareholders 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 funds constituting Pioneer
Series Trust V (the "Trust"), including the schedule of investments, as of
August 31, 2017, and the related statements of operations, changes in net assets
and the financial highlights for the year then ended and the financial
highlights for the year ended August 31, 2013. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit. The statement of changes in net assets
for the year ended August 31, 2016 and the financial highlights in the periods
ended August 31, 2014, August 31, 2015 and August 31, 2016 were audited by
another independent registered public accounting firm whose report, dated
October 24, 2016, expressed an unqualified opinion on the statement of changes
in net assets and those financial highlights.
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. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audit included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2017, by correspondence with the custodian,
brokers and others or by other appropriate auditing procedures where replies
from brokers and others were not received. 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 at August 31, 2017, the results of its
operations, the changes in its net assets and the financial highlights for the
year then ended and the financial highlights for the year ended August 31, 2013
in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
October 27, 2017
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 45
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 88.03%.
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the "Adviser"), the
Fund's investment adviser, was an indirect, wholly owned subsidiary of UniCredit
S.p.A. ("UniCredit"). On that date, UniCredit completed the sale of its Pioneer
Investments business, which includes the Adviser, to Amundi (the "Transaction").
As a result of the Transaction, the Adviser became an indirect, wholly-owned
subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A. Amundi is
headquartered in Paris, France, and, as of September 30, 2016, had more than
$1.1 trillion in assets under management worldwide.
Deloitte & Touche LLP ("D&T"), the Fund's previous independent registered public
accounting firm, informed the Audit Committee and the Board that it would no
longer be independent with respect to the Fund upon the completion of the
Transaction as a result of certain services being provided to Amundi and Credit
Agricole, and, accordingly, that it intended to resign as the Fund's independent
registered public accounting firm upon the completion of the Transaction. D&T's
resignation was effective on July 3, 2017, when the Transaction was completed.
During the periods as to which D&T has served as the Fund's independent
registered public accounting firm, including the Fund's two most recent fiscal
years preceding the fiscal year ended August 31, 2017, D&T's reports on the
Fund's financial statements have not contained an adverse opinion or disclaimer
of opinion and have not been qualified or modified as to uncertainty, audit
scope or accounting principles. Further, there have been no disagreements with
D&T on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which, if not resolved to the
satisfaction of D&T, would have caused D&T to make reference to the subject
matter of the disagreement in connection with its report on the financial
statements. In addition, there have been no reportable events of the kind
described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange
Act of 1934.
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
a new independent registered public accounting firm, Ernst & Young LLP ("EY"),
for the Fund's fiscal year ended August 31, 2017.
46 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Prior to its engagement, EY had advised the Fund's Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities and Exchange
Commission ("SEC"): (a) project management support services to UniCredit in the
Czech Republic, Germany, Italy, Serbia and Slovenia in relation to twenty-two
projects, that were determined to be inconsistent with Rule 2-01(c)(4)(vi) of
Regulation S-X (management functions); (b) two engagements for UniCredit in
Italy where fees were contingent/success based and that were determined to be
inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent fees); (c) four
engagements where legal and expert services were provided to UniCredit in the
Czech Republic and Germany, and twenty engagements where the legal advisory
services were provided to UniCredit in Austria, Czech Republic, Italy and
Poland, that were determined to be inconsistent with Rule 2-01(c)(4)(ix) and (x)
of Regulation S-X (legal and expert services); and (d) two engagements for
UniCredit in Italy involving assistance in the sale of certain assets, that were
determined to be inconsistent with Rule 2-01(c)(4)(viii) of Regulation S-X
(broker-dealer, investment advisor or investment banking services). None of the
foregoing services involved the Fund, any of the other funds in the Pioneer
Family of Funds or any other Pioneer entity sold by UniCredit in the
Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Fund under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Fund, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 47
Approval of New and Interim Management Agreements
Amundi Pioneer Asset Management, Inc. (Amundi Pioneer), formerly Pioneer
Investment Management, Inc., serves as the investment adviser to Pioneer High
Income Municipal Fund (the Fund) pursuant to an investment management agreement
between Amundi Pioneer and the Fund.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world (the "Transaction"). As a
result of the Transaction, Amundi Pioneer became an indirect wholly-owned
subsidiary of Amundi and Amundi's wholly-owned subsidiary, Amundi USA, Inc.
Prior to July 3, 2017, Pioneer Investments was owned by Pioneer Global Asset
Management S.p.A. ("PGAM"), a wholly-owned subsidiary of UniCredit S.p.A.
("UniCredit").
Under the Investment Company Act of 1940, the Fund's current investment
management agreement (the "Current Management Agreement") terminated
automatically upon the consummation of the Transaction. In order for Amundi
Pioneer to continue to manage the Fund after the consummation of the
Transaction, the Trustees and shareholders of the Fund were required to approve
a new investment management agreement for the Fund (the "New Management
Agreement"). As discussed below, the Board of Trustees of the Fund approved the
New Management Agreement at a meeting held on March 6-7, 2017. The New
Management Agreement was approved by the shareholders of the Fund at a meeting
held on June 13, 2017. The Board of Trustees of the Fund also approved an
interim investment management agreement between Amundi Pioneer and the Fund (the
"Interim Management Agreement") at the March 6-7, 2017 meeting. The Interim
Management Agreement would have taken effect upon the closing of the Transaction
in the event that the shareholders of the Fund did not approve the New
Management Agreement.
Board Evaluation of the New and Interim Management Agreements
The Board evaluated the Transaction and the New Management Agreement and Interim
Management Agreement for the Fund. In connection with their evaluation of the
Transaction and the New Management Agreement for the Fund, the Trustees
requested such information as they deemed reasonably necessary, including: (a)
the structure of the Transaction and the strategy underlying the Transaction;
(b) the anticipated benefits of the Transaction to the Fund and its
shareholders; (c) the post-Transaction plans for Amundi Pioneer, including
Amundi's plans for integration of Pioneer Investments and Amundi Pioneer with
its existing asset management businesses and plans for the future development of
Amundi Pioneer; (d) the effect of the Transaction on the ongoing services
provided to the Fund, including the need to select a
48 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
new independent registered public accounting firm for the Fund, and any
plans to modify the operations of the Fund; (e) the stability and continuity of
Amundi Pioneer's management and key employees, including compensation and
benefits to Amundi Pioneer's key employees, and retention plans and incentive
plan structure; (f) the post-Transaction indebtedness and financial resources of
Amundi Pioneer; (g) Amundi's legal and operational structure, its principal
shareholders and senior management, its investment management, risk management,
administrative, legal and compliance functions; (h) certain regulatory matters
relating to Amundi's affiliates; and (i) Amundi's commitment to the United
States, including the role of Amundi Pioneer in the larger Amundi business.
The Trustees also requested and obtained the following information in connection
with their evaluation of the Transaction and the New Management Agreement for
the Fund: (i) memoranda provided by Fund counsel that summarized the legal
standards and other considerations that are relevant to the Trustees in their
deliberations regarding the New Management Agreement; (ii) the qualifications of
the investment management teams for the Fund, as well as the level of investment
by the Fund's portfolio managers in the Fund; (iii) the Fund's management fees
and total expense ratios, the financial statements of Amundi Pioneer and its
pre- and post-Transaction parent companies, profitability analyses from Amundi
Pioneer, and analyses from Amundi Pioneer as to possible economies of scale;
(iv) the profitability of the institutional business of Amundi Pioneer and
Amundi Pioneer's affiliate, Amundi Pioneer Institutional Asset Management, Inc.
("Amundi Pioneer Institutional") as compared to that of Amundi Pioneer's fund
management business; and (v) the differences between the fees and expenses of
the Fund and the fees and expenses of Amundi Pioneer's and Amundi Pioneer
Institutional's institutional accounts, as well as the different services
provided by Adviser to the Fund and by Amundi Pioneer and Amundi Pioneer
Institutional to the institutional accounts. In addition, the Trustees
considered the information provided at regularly scheduled meetings throughout
the year regarding the Fund's performance and risk attributes, including through
meetings with investment management personnel, and took into account other
information related to the Fund provided to the Trustees at regularly scheduled
meetings. The Trustees also considered information they had received in their
review of the continuance of the Current Management Agreement for the Fund in
September 2016.
At meetings held on January 9, 2017 and January 10, 2017, the Trustees met with
representatives of Amundi and PGAM, including separate meetings of the Trustees
who are not "interested persons" of the Fund Complex ("Independent Trustees")
and counsel with representatives of Amundi and PGAM, and subsequently with
representatives of Amundi. In those meetings,
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 49
they received an extensive presentation from the representatives of Amundi,
including the chief executive officer of Amundi, describing Amundi's background
and history, its global asset management activities, the growth of its business,
and its status as the largest asset management firm in Europe and one of the
largest globally; its capital structure and financial resources, including
information as to the financing of the Transaction; its principal investors,
including its majority investor Credit Agricole S.A., and Credit Agricole's
long-term commitment to the asset management business; the philosophy and
strategy underlying the Transaction and the complementarity of Amundi's and
Pioneer Investments' respective asset management businesses; Amundi's various
operating and investment committees and how they would likely interact with
Amundi Pioneer; the proposed integration process, including the progress to date
and the establishment of various integration work streams; Amundi's plans for
management of Amundi Pioneer; Amundi's philosophy as to compensation of key
employees and its general intentions with respect to incentive plans for key
employees of Amundi Pioneer; Amundi's preliminary plans to achieve cost and
other synergies; and opportunities to further develop the business of Amundi
Pioneer and Amundi Pioneer Institutional, including in the area of institutional
asset management, and how that would benefit shareholders of the Pioneer Funds.
In those meetings, the representatives of Amundi confirmed their intention that
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer would
remain in their current positions, and confirmed that they do not currently
foresee major changes in the day-to-day investment management operations of
Amundi Pioneer with respect to the Fund as a direct result of the Transaction.
They discussed incentive arrangements for key personnel that would continue
after the closing of the Transaction and their plans to establish a new
long-term incentive plan following the closing. They also generally discussed
ways in which Amundi Pioneer could potentially draw on the expanded global
resources of Amundi post-Transaction. At those meetings, the Independent
Trustees identified certain areas to which they requested further information,
including as to trading and execution of securities transactions, research and
portfolio management and potential changes in investment process, particularly
where asset classes managed by Amundi Pioneer would overlap with asset classes
managed by Amundi, the continued availability of resources currently at Pioneer
Investments or elsewhere within Amundi to assist in management of certain Funds,
and any anticipated significant changes in operations. The Independent Trustees
considered the uncertainty as to whether the Fund's independent registered
public accounting firm could continue to act in that capacity after the closing
of the Transaction. The Independent Trustees also met with counsel to review the
information they had received to date and to discuss next steps.
50 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Subsequently, the Trustees received further information from Amundi, including
written responses to questions raised by the Independent Trustees, and received
from Amundi Pioneer the information requested of it. The Independent Trustees
reviewed the information provided with counsel at telephonic meetings held on
February 16, 2017 and February 27, 2017. The Trustees held a special in-person
Board meeting on March 6-7, 2017 for further consideration of the New Management
Agreements, the Interim Management Agreements and the Transaction. The Trustees
met again with senior executives of Amundi at the March 6-7, 2017 meeting.
At the March 6-7, 2017 meeting, based on their evaluation of the information
provided by Amundi Pioneer and Amundi, the Trustees including the Independent
Trustees voting separately, approved the New Management Agreement and the
Interim Management Agreement for the Fund. In considering the New Management
Agreement for the Fund, the Trustees considered various factors that they
determined were relevant, including the factors described below. The Trustees
did not identify any single factor as the controlling factor in their
determinations. The Trustees considered the same factors with respect to the
Interim Management Agreement for the Fund.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by Amundi Pioneer to the Fund and that are expected to be provided
by Amundi Pioneer to the Fund following the consummation of the Transaction. The
Trustees reviewed the terms of the New Management Agreement, and noted that such
terms are substantially similar to the terms of the Current Management
Agreement, except for different execution dates, effective dates and termination
dates. The Trustees reviewed Amundi Pioneer's investment approach for the Fund
and its research process. The Trustees considered the resources of Amundi
Pioneer and the personnel of Amundi Pioneer who provide investment management
services to the Fund. They also reviewed the amount of non-investment resources
and personnel of Amundi Pioneer that are involved in Amundi Pioneer's services
to the Fund, including Amundi Pioneer's compliance and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by Amundi Pioneer's senior management to the Pioneer Fund complex.
The Trustees considered that Amundi Pioneer supervises and monitors the
performance of the Fund's service providers and provides the Fund with personnel
(including Fund officers) and other resources that are necessary for the Fund's
business management and operations and that Amundi Pioneer would continue to
provide those investment management and research services and resources to the
Fund following the consummation of the
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 51
Transaction. The Trustees also considered that, as administrator, Amundi Pioneer
would continue to be responsible for the administration of the Fund's business
and other affairs. The Trustees considered the fees to be paid to Amundi Pioneer
for the provision of administration services.
The Trustees considered that Deloitte & Touche LLP informed the Board that it
would no longer be independent with respect to the Fund upon the completion of
the Transaction and, accordingly, that it would be necessary for the Board to
engage a new independent registered public accounting firm for the Fund.
The Trustees considered that the Transaction was not expected to have a material
adverse impact on the nature, scope and overall quality of services provided to
the Fund and its shareholders, including investment management, risk management,
administrative, compliance, legal and other services, as a result of the
Transaction.
In that regard, the Trustees considered that Amundi is one of the largest asset
managers globally, and that Amundi Pioneer may have access to additional
research and portfolio management capabilities as a result of the Transaction
and that Amundi Pioneer, as part of Amundi, is expected to have an enhanced
global presence that may contribute to an increase in the overall scale and
resources of Amundi Pioneer. Furthermore, in considering whether the Transaction
would be expected to have a material adverse impact on the nature, scope and
overall quality of services provided to the Fund and its shareholders, the
Trustees considered the statements by representatives of Amundi that they expect
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer to
remain in their current positions and that they do not currently foresee major
changes in the day-to-day investment management operations of Amundi Pioneer as
a direct result of the Transaction, or the risk management, legal or compliance
services provided by Amundi Pioneer, with respect to the Fund. They further
considered the current incentive arrangements for key personnel of Amundi
Pioneer that would continue after the closing of the Transaction. They also
noted Amundi's stated intention to establish a new long-term incentive plan
following the closing.
The Trustees also took into account their experience in evaluating the proposed
combination of Pioneer Investments and Santander Asset Management, which was
announced in September, 2014 and abandoned in July, 2016. In light of, among
other things, this experience, the Trustees determined that they were not able
to identify any realistic alternatives to approving the New Management Agreement
that would provide the level of services to the Fund and its shareholders that
are expected to be provided by Amundi Pioneer after the closing of the
Transaction.
52 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that Amundi Pioneer would continue to provide to the
Fund under the New Management Agreement would be satisfactory and consistent
with the terms of the New Management Agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly reviewed and
discussed throughout the year data prepared by Amundi Pioneer and information
comparing the Fund's performance with the performance of its peer group of
funds, as classified by each of Morningstar, Inc. (Morningstar) and Lipper, and
the performance of the Fund's benchmark index. They also discussed the Fund's
performance with Amundi Pioneer on a regular basis.
The Trustees' regular reviews and discussions were factored into the Trustees'
deliberations concerning the approval of the New Management Agreement.
Management Fee and Expenses
The Trustees noted that the stated management fees to be paid by the Fund are
identical under the Current Management Agreement and the New Management
Agreement. The Trustees considered information showing the fees and expenses of
the Fund in comparison to the management fees and expense ratios of its peer
group of funds as classified by Morningstar and also to the expense ratios of a
peer group of funds selected on the basis of criteria determined by the
Independent Trustees for this purpose using data provided by Strategic Insight
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners. To the extent applicable, the Trustees also
considered the impact of transfer agency, sub-transfer agency, and other
non-management fee expenses on the expense ratios of the Fund. The Trustees
noted that they separately review the Fund's transfer agency, sub-transfer
agency and intermediary arrangements and that the results of the most recent
such review were considered in the consideration of the Fund's expense ratio.
The Trustees considered that the Fund's management fee as of September 30, 2016
was in the third quintile relative to the management fees paid by other funds in
its Morningstar category for the comparable period. The Trustees also considered
the breakpoints in the management fee schedule and the reduced fee rates above
certain asset levels. The Trustees considered that the expense ratio of the
Fund's Class A shares as of September 30, 2016 was in the fourth quintile
relative to its Morningstar category and in the third quintile relative to its
Strategic Insight peer group, in each case for the comparable period. The
Trustees considered that the Fund's expense ratio was less than one basis point
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 53
higher than the median expense ratio paid by other funds in its Morningstar
category. The Trustees noted the impact of expenses relating to small accounts
and omnibus accounts on transfer and sub-transfer agency expenses generally.
The Trustees reviewed management fees charged by Amundi Pioneer and Amundi
Pioneer Institutional to institutional and other clients, including publicly
offered European funds sponsored by Amundi Pioneer's affiliates, unaffiliated
U.S. registered investment companies (in a sub-advisory capacity), and
unaffiliated foreign and domestic separate accounts. The Trustees also
considered Amundi Pioneer's costs in providing services to the Fund and Amundi
Pioneer's and Amundi Pioneer Institutional's costs in providing services to the
other clients and considered the differences in management fees and profit
margins for fund and non-fund services. In evaluating the fees associated with
Amundi Pioneer's and Amundi Pioneer Institutional's client accounts, the
Trustees took into account the respective demands, resources and complexity
associated with the Fund and other client accounts. The Trustees noted that in
some instances the fee rates for those clients were lower than the management
fee for the Fund and considered that, under both the Current Management
Agreement and the New Management Agreement, Amundi Pioneer would perform
additional services for the Fund that it does not provide to those other clients
or services that are broader in scope, including oversight of the Fund's other
service providers and activities related to compliance and the extensive
regulatory and tax regimes to which the Fund is subject. The Trustees also
considered the different risks associated with Amundi Pioneer's management of
the Fund and Amundi Pioneer's and Amundi Pioneer Institutional's management of
the other client accounts.
The Trustees concluded that the management fee payable by the Fund to Amundi
Pioneer was reasonable in relation to the nature and quality of the services to
be provided by Amundi Pioneer.
Profitability
The Trustees considered information provided by Amundi Pioneer regarding the
profitability of Amundi Pioneer with respect to the advisory services provided
by Amundi Pioneer to the Fund, including the methodology used by Amundi Pioneer
in allocating certain of its costs to the management of the Fund. The Trustees
also considered Amundi Pioneer's profit margin in connection with the overall
operation of the Fund. They further reviewed the financial results, including
the profit margins, realized by Amundi Pioneer and Amundi Pioneer Institutional
from non-fund businesses. The Trustees considered Amundi Pioneer's profit
margins with respect to the Fund in comparison to the limited industry data
available and noted that the profitability of any adviser was affected by
numerous factors, including its
54 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
organizational structure and method for allocating expenses. The Trustees
concluded that Amundi Pioneer's profitability with respect to the management
of the Fund was not unreasonable.
Economies of Scale
The Trustees considered Amundi Pioneer's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Fund and Fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify, and that, among other factors that may be relevant, are the following:
fee levels, expense subsidization, investment by Amundi Pioneer in research and
analytical capabilities and Amundi Pioneer's commitment and resource allocation
to the Fund. The Trustees noted that profitability also may be an indicator of
the availability of any economies of scale, although profitability may vary for
other reasons including due to reductions in expenses. The Trustees concluded
that economies of scale, if any, were being appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits that Amundi Pioneer enjoys from its
relationship with the Fund. The Trustees considered the character and amount of
fees paid or to be paid by the Fund, other than under the Current Management
Agreement or the New Management Agreement, for services provided by Amundi
Pioneer and its affiliates. The Trustees further considered the revenues and
profitability of Amundi Pioneer's businesses other than the Fund business. To
the extent applicable, the Trustees also considered the benefits to the Fund and
to Amundi Pioneer and its affiliates from the use of "soft" commission dollars
generated by the Fund to pay for research and brokerage services.
The Trustees considered that following the completion of the Transaction, Amundi
Pioneer will be the principal U.S. asset management business of Amundi, and that
Amundi's worldwide asset management business will manage over $1.38 trillion in
assets (including the Pioneer Funds). This may create opportunities for Amundi
Pioneer, Amundi Pioneer Institutional and Amundi that derive from Amundi
Pioneer's relationships with the Fund, including Amundi's ability to market the
services of Amundi Pioneer globally. The Trustees noted that Amundi Pioneer may
have access to additional research capabilities as a result of the Transaction
and Amundi's enhanced global presence that may contribute to an increase of the
overall scale of Amundi Pioneer. The Trustees considered that Amundi Pioneer and
the Fund are expected to receive reciprocal intangible benefits from the
relationship, including mutual brand recognition and, for the Fund, direct and
indirect access to the resources of a large global asset manager. The Trustees
concluded
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 55
that any such benefits received by Amundi Pioneer as a result of its
relationship with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including the Independent Trustees, concluded that the New Management
Agreement and the Interim Management Agreement for the Fund, including the fees
payable thereunder, were fair and reasonable and voted to approve the New
Management Agreement and the Interim Management Agreement, and to recommend that
shareholders approve the New Management Agreement.
56 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Trustees, Officers and Service Providers
Investment Adviser
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data 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 www.amundipioneer.com. This information is also available on the Securities
and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations and other directorships they have held during at least the past five
years. Trustees who are interested persons of the Fund within the meaning of the
1940 Act are referred to as Interested Trustees. Trustees who are not interested
persons of the Fund are referred to as Independent Trustees. Each of the
Trustees serves as a Trustee of each of the 46 U.S. registered investment
portfolios for which Amundi Pioneer serves as investment adviser (the "Pioneer
Funds"). The address for all Trustees and all officers of the Fund is 60 State
Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 57
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (66) Trustee since 2006. Private investor (2004 - 2008 and 2013 - Director, Broadridge Financial
Chairman of the Board Serves until a present); Chairman (2008 - 2013) and Chief Solutions, Inc. (investor
and Trustee successor trustee is Executive Officer (2008 - 2012), Quadriserv, communications and securities
elected or earlier Inc. (technology products for securities processing provider for financial
retirement or removal. lending industry); and Senior Executive Vice services industry) (2009 -
President, The Bank of New York (financial and present); Director, Quadriserv,
securities services) (1986 - 2004) Inc. (2005 - 2013); and
Commissioner, New Jersey State
Civil Service Commission (2011 -
2015)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (73) Trustee since 2006. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - Trust (publicly-traded mortgage
successor trustee is 2004 and 2008 - present); Interim Chief REIT) (2004 - 2009, 2012 -
elected or earlier Executive Officer, Oxford Analytica, Inc. present); Director of The Swiss
retirement or removal. (privately held research and consulting Helvetia Fund, Inc. (closed-end
company) (2010); Executive Vice President and fund) (2010 - present); Director
Chief Financial Officer, I-trax, Inc. (publicly of Oxford Analytica, Inc. (2008 -
traded health care services company) (2004 - present); and Director of
2007); and Executive Vice President and Chief Enterprise Community Investment,
Financial Officer, Pedestal Inc. Inc. (privately-held affordable
(internet-based mortgage trading company) (2000 housing finance company) (1985 -
- 2002); Private Consultant (1995 - 1997); 2010)
Managing Director, Lehman Brothers (1992 -
1995); Executive, The World Bank (1979 - 1992)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (73) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and Mellon
successor trustee is Institutional Funds Master
elected or earlier Portfolio (oversaw 17 portfolios
retirement or removal. in fund complex) (1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (70) Trustee since 2006. Founding Director, Vice-President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee is firm) (1982 - present); Desautels Faculty of
elected or earlier Management, McGill University (1999 - present);
retirement or removal. and Manager of Research Operations and
Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
58 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (61) Trustee since 2017. Chief Investment Officer, 1199 SEIU Funds None
Trustee (Advisory Trustee from (healthcare workers union pension funds) (2001
2014 - 2017). Serves - present); Vice President - International
until a successor Investments Group, American International
trustee is elected or Group, Inc. (insurance company) (1993 - 2001);
earlier retirement or Vice President, Corporate Finance and Treasury
removal. 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); Mortgage
Strategies Group, Drexel Burnham Lambert, Ltd.
(investment bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (69) Trustee since 2006. President and Chief Executive Officer, Newbury Director of New America High
Trustee Serves until a Piret Company (investment banking firm) (1981 - Income Fund, Inc. (closed-end
successor trustee is present) investment company) (2004 -
elected or earlier present); and Member, Board of
retirement or removal. Governors, Investment Company
Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (70) Trustee since 2014. Consultant (investment company services) (2012 None
Trustee Serves until a - present); Executive Vice President, BNY
successor trustee is Mellon (financial and investment company
elected or earlier services) (1969 - 2012); Director, BNY
retirement or removal. International Financing Corp. (financial
services) (2002 - 2012); Director, Mellon
Overseas Investment Corp. (financial services)
(2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 59
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (55)* Trustee since 2017. Chair, Director, CEO and President of Amundi None
Trustee, President and Serves until a Pioneer Asset Management USA, Inc. (since
Chief Executive Officer successor trustee is September 2014); Chair, Director and CEO of
elected or earlier Amundi Pioneer Asset Management, Inc. (since
retirement or removal September 2014); Chair, Director and CEO of
Amundi Pioneer Distributor, Inc. (since
September 2014); Chair, Director, CEO and
President of Amundi Pioneer Institutional Asset
Management, Inc. (since September 2014);
Managing Director, Morgan Stanley Investment
Management (2010 - 2013); Director of
Institutional Business, CEO of International,
Eaton Vance Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (59)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S. (since
successor trustee is 2010) of Amundi Pioneer Asset Management USA,
elected or earlier Inc.; Executive Vice President and Chief
retirement or removal Investment Officer, U.S. of Amundi Pioneer
(since 2008); Executive Vice President of
Amundi Pioneer Institutional Asset Management,
Inc. (since 2009); Portfolio Manager of Amundi
Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
60 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley Since 2006. Serves at Vice President and Associate General Counsel of None
(52) the discretion of the Amundi Pioneer since January 2008; Secretary
Secretary and Board and Chief Legal Officer of all of the Pioneer
Chief Legal Officer Funds since June 2010; Assistant Secretary of
all of the Pioneer Funds from September 2003 to
May 2010; Vice President and Senior Counsel of
Amundi Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (56) Since 2010. Serves at Fund Governance Director of Amundi Pioneer None
Assistant Secretary the discretion of the since December 2006 and Assistant Secretary of
Board all the Pioneer Funds since June 2010; Manager
- Fund Governance of Amundi Pioneer from
December 2003 to November 2006; and Senior
Paralegal of Amundi Pioneer from January 2000
to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (54) Since 2010. Serves at Senior Counsel of Amundi Pioneer since May 2013 None
Assistant Secretary the discretion of the and Assistant Secretary of all the Pioneer
Board Funds since June 2010; Counsel of Amundi
Pioneer from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (57) Since 2008. Serves at Vice President - Fund Treasury of Amundi None
Treasurer and the discretion of the Pioneer; Treasurer of all of the Pioneer Funds
Chief Financial and Board since March 2008; Deputy Treasurer of Amundi
Accounting Officer Pioneer from March 2004 to February 2008; and
Assistant Treasurer of all of the Pioneer Funds
from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (52) Since 2006. Serves at Director - Fund Treasury of Amundi Pioneer; and None
Assistant Treasurer the discretion of the Assistant Treasurer of all of the Pioneer Funds
Board
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (59) Since 2006. Serves at Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Amundi Pioneer; and Assistant Treasurer of all
Board of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (37) Since 2009. Serves at Fund Administration Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Amundi Pioneer since November 2008; Assistant
Board Treasurer of all of the Pioneer Funds since
January 2009; Client Service Manager -
Institutional Investor Services at State Street
Bank from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 61
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (64) Since 2010. Serves at Chief Compliance Officer of Amundi Pioneer and None
Chief Compliance Officer the discretion of the of all the Pioneer Funds since March 2010;
Board Chief Compliance Officer of Amundi 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 Amundi Pioneer since October
2005; Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to
October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (46) Since 2006. Serves at Director - Transfer Agency Compliance of Amundi None
Anti-Money the discretion of the Pioneer and Anti-Money Laundering Officer of
Laundering Officer Board all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers
or directors of the fund's investment adviser and certain of its
affiliates.
62 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
This page is for your notes.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 63
This page is for your notes.
64 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
This page is for your notes.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 65
This page is for your notes.
66 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
This page is for your notes.
Pioneer High Income Municipal Fund | Annual Report | 8/31/17 67
This page is for your notes.
68 Pioneer High Income Municipal Fund | Annual Report | 8/31/17
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.amundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at 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] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2017 Amundi Pioneer Asset Management 21203-10-1017
Pioneer U.S. Corporate
High Yield Fund
--------------------------------------------------------------------------------
Annual Report | August 31, 2017
--------------------------------------------------------------------------------
Ticker Symbols:
Class A HYCAX
Class C HYCCX
Class Y HYCYX
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 27
Notes to Financial Statements 34
Report of Independent Registered Public Accounting Firm 43
Additional Information 44
Approval of New and Interim Management Agreements 45
Trustees, Officers and Service Providers 54
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 1
President's Letter
We are very pleased to announce that on July 3, 2017, Amundi Asset Management, a
large European asset manager, officially acquired Pioneer Investments and
announced the completion of a merger which combined Pioneer Investment
Management USA, Inc., in Boston and Amundi Smith Breeden in Durham, N.C., to
form Amundi Pioneer Asset Management, Inc. ("Amundi Pioneer"). Amundi Smith
Breeden, founded as Smith Breeden Associates in 1982, is a highly regarded
relative-value credit investor managing an extensive range of fixed-income
strategies tailored to the needs of institutional investors.
Our new brand, Amundi Pioneer, now signifies:
o Ownership by Amundi Asset Management ("Amundi"). Amundi is Europe's largest
asset manager and among the world's top 10 asset managers, as measured by
assets under management (AUM), with approximately $1.3 trillion AUM(1).
o The significantly larger scale and resources of the combined firms.
o Amundi's desire to maintain the strong brand recognition of Pioneer in the
U.S., which dates back to 1928.
We would like to stress to shareowners that all of the Pioneer mutual funds have
retained their previous names. In addition, there have been no changes to the
portfolio managers or the funds' investment strategies as a result of the
merger. Amundi Pioneer's newly combined investment team works together as one
unit, discussing investment ideas, participating in research meetings, and
collaborating across the expanded organization.
We are looking forward to the opportunity to leverage the broad global resources
of Amundi. In bringing together Pioneer and Amundi Smith Breeden, we have
combined organizations that share similar investment philosophies and corporate
cultures, and that value teamwork across a collegial, collaborative environment.
We are very excited about our future, as we believe the greater scale and
expanded global reach of the combined firm, with some 5,000 employees worldwide,
provides several opportunities to better meet the needs of today's investors by
exploring new, innovative investment solutions and integrating the abundance of
thought leadership resources at Amundi, while also maintaining our commitment to
providing existing shareowners with outstanding service locally.
(1) Source: IPE "Top 400 asset managers" published in June 2017 and based on
AUM as of end December 2016.
2 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future as we move into a new and exciting era.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
August 31, 2017
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 3
Portfolio Management Discussion | 8/31/17
Important Note: On July 3, 2017, Amundi acquired Pioneer Investments, a group of
asset management companies located throughout the world. Amundi, one of the
world's largest asset managers, is headquartered in Paris, France. As a result
of the transaction, Pioneer Investment Management, Inc., the Fund's investment
adviser, became an indirect wholly owned subsidiary of Amundi and Amundi's
wholly owned subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer
Investments was owned by Pioneer Global Asset Management S.p.A., a wholly owned
subsidiary of UniCredit S.p.A.
In connection with the transaction, the names of the Fund's investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc. and
the name of Pioneer Funds Distributor, Inc. changed to Amundi Pioneer
Distributor, Inc.
This transaction does not impact your existing relationship with Pioneer
Investments, your advisor, or the methods you use to communicate with us, as the
investor contact telephone numbers and services you expect will remain the same.
We are excited, however, to be launching a new website representing the combined
company. Come visit us at: www.amundipioneer.com.
In the following interview, portfolio manager Matthew Shulkin discusses the
factors that influenced the performance of Pioneer U.S. Corporate High Yield
Fund between the Fund's inception on January 3, 2017, and the end of the Fund's
fiscal year on August 31, 2017. Mr. Shulkin, C.F.A., is a vice president and a
portfolio manager at Amundi Pioneer Asset Management, Inc., and is responsible
for the day-to-day management of the Fund*.
Q How did the Fund perform during the abbreviated fiscal year ended August
31, 2017?
A From its inception on January 3, 2017, through August 31, 2017, Pioneer
U.S. Corporate High Yield Fund's Class A shares returned 5.00% at net asset
value, while the Fund's benchmark, the Bank of America Merrill Lynch (BofA
ML) U.S. High Yield Index, returned 5.81%. For further comparison,
year-to-date through August 31, 2017, the average return of the 684 mutual
funds in Lipper's High Yield Funds category was 5.21%, and the average
return of the 723 mutual funds in Morningstar's High Yield Bond Funds
category was 5.18%.
* Note to Shareholders: Effective October 1, 2017, after the end of the
annual reporting period, Andrew Feltus, Co-Director of High Yield, a senior
vice president, and a portfolio manager at Amundi Pioneer, joined Mr.
Shulkin as a portfolio manager on Pioneer U.S. Corporate High Yield Fund.
4 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
Q Could you please describe the market environment for high-yield bonds
during the Fund's abbreviated fiscal year ended August 31, 2017?
A High-yield bonds in aggregate experienced solid, positive returns for the
period. From a fundamental perspective, credit-based assets continued to
benefit from the support of strong corporate earnings and low default
rates. Early in the period, risk sentiment in the market was further
bolstered by anticipation of the adoption of business-friendly policies in
Washington in the wake of the November 2016 U.S. elections, which left the
Republicans in control of the White House and both houses of Congress.
Lowering corporate tax rates, trimming regulations, and increasing
infrastructure spending, all of which were proposed by the Trump campaign,
were seen as governmental actions that had the potential to support
corporate profitability going forward.
As the period progressed, however, the Republicans failed to agree on a
plan to repeal/replace the Affordable Care Act, thus clouding the outlook
for the passage of tax reform and other pro-growth measures. Despite
political difficulties in Washington, however, credit sentiment continued
to be supported by strong corporate and consumer fundamentals. With that
said, the positive performance of high-yield securities over the final six
months of the period was driven mainly by the coupon, or yield portion of
total return, as spread tightening became more incremental. (Credit spreads
are commonly defined as the differences in yield between Treasuries and
other types of fixed-income securities with similar maturities.)
Q Can you review the Fund's principal investment strategies during the
abbreviated fiscal year ended August 31, 2017, and explain the degree to
which the strategies added to or detracted from performance versus the
benchmark BofA ML Index?
A The Fund's performance over the brief period since its inception modestly
lagged the return of its benchmark. The benchmark-relative underperformance
was mainly the result of the Fund's operations commencing just as
credit-sensitive assets were in the midst of a rally at the outset of 2017,
as it took a few days for us to fully invest the portfolio's assets. In
addition, with credit spreads at or near historical lows in the wake of
post-election exuberance, we opted to take a somewhat cautious stance with
respect to the portfolio's quality profile. In that vein, the Fund's
benchmark-relative performance was constrained to a degree by the
portfolio's below-index exposure to lower-quality, CCC-rated and distressed
issues, which outperformed over the full period ended August 31, 2017.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 5
In terms of individual sectors, security selection within basic materials
added to the Fund's performance relative to the benchmark during the
period, as the portfolio's holdings of metals & mining and building
materials issues outperformed the broader sector. An underweight allocation
to retailers also helped the Fund's benchmark-relative performance, as that
segment of the market has suffered due to concerns over a secular shift on
the part of consumers toward making purchases online. Conversely, the
portfolio's underweight exposure to health care detracted from the Fund's
benchmark-relative results, as the sector benefited from reduced fears that
Washington's efforts to repeal or replace the Affordable Care Act would
result in destabilizing changes to insurance coverage and reimbursement
levels. In addition, the Fund's positioning within health care constrained
relative returns, as some of the portfolio's pharmaceutical-related
holdings experienced volatility because of speculation about future
drug-pricing policy. Security selection within telecommunication services
also detracted from the Fund's benchmark-relative results, as performance
of the portfolio's wireline company holdings lagged that of the overall
sector. Finally, the Fund's modest exposure to bank loans acted as a slight
drag on relative performance, as loans underperformed high-yield bonds for
the period.
Q Can you discuss the factors that affected the Fund's income-generation (or
yield), either positively or negatively, during the abbreviated fiscal year
ended August 31, 2017?
A The Fund's income-generation and yield provided to shareholders was
relatively stable over the period. Our more "up-in-quality" and
higher-rated bias in the portfolio resulted in a marginally lower yield for
the Fund versus the benchmark BofA ML Index, but we view that positioning
as appropriate given where we are in the current credit cycle.
Q What role did derivatives play in the Fund's investment process and results
during the abbreviated fiscal year ended August 31, 2017?
A We did not use derivatives during the Fund's fiscal year ended August 31,
2017. The Fund does, however, have the ability to utilize derivatives from
time to time in order to maintain both the desired level of portfolio
exposure to the high-yield market, and sufficient liquidity, with the
latter earmarked for making opportunistic purchases as well as for helping
to meet any unanticipated shareholder redemption requests.
Q What is your assessment of the current climate for fixed-income investing?
A We continue to have a constructive outlook with respect to the U.S. economy
and overall corporate credit fundamentals. Credit data remains strong and
balance sheets do not appear overly stretched. The default rate
6 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
for high-yield bonds has continued to decline in 2017 versus the prior
year. In addition, there is very little to suggest that a pick-up in
inflation is imminent, thus increasing the likelihood that spread-based
assets will continue to benefit from the maintenance of very low risk-free
interest rates on the part of major central banks.
That said, high-yield valuations are stretched by historical norms, which,
in our view, argues for a measured stance when it comes to assuming credit
risk. Even in the event that the White House and Congress are able to move
forward on tax reform and/or other growth-oriented legislation, we believe
the potential upside for the high-yield market from any such development is
currently limited, given tight spreads for the overall asset class. As a
result, we are comfortable with maintaining the Fund's underweight exposure
to the lower-rated segments of the market.
With respect to the Fund's stance on interest rates, against a backdrop of
muted inflation, we do not anticipate any abrupt rise in rates over the
near term. However, while the timing of any upward move is inherently
unpredictable, we believe the risk is clearly weighted toward the upside
for interest rates given their current, historically low levels. In keeping
with this view, the Fund remains modestly underweight to the
longer-duration, BB-rated segment of the high-yield market relative to
B-rated issues. (Duration is a measure of the sensitivity of the price, or
the value of principal, of a fixed-income investment to a change in
interest rates, expressed as a number of years.)
Please refer to the Schedule of Investments on pages 16-26 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Investments in high-yield or lower rated securities are subject to
greater-than-average price volatility, illiquidity and possibility of default.
When interest rates rise, the prices of fixed income securities in the fund will
generally fall. Conversely, when interest rates fall, the prices of fixed income
securities in the fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 7
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The 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 prepayments.
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 sectors that are
interrelated or have common risks, making them more susceptible to any economic,
political, or regulatory developments or other risks affecting those industries
and sectors.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Amundi Pioneer Asset Management, Inc., for
a prospectus or summary prospectus containing this information. Read it
carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
8 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
Portfolio Summary | 8/31/17
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Corporate Bonds 78.1%
International Corporate Bonds 15.2%
Senior Secured Loans 3.7%
Convertible Preferred Stocks 1.7%
Convertible Corporate Bonds 1.3%
10 Largest Holdings*
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)
1. Constellium NV, 6.625%, 3/1/25 (144A) 1.30%
--------------------------------------------------------------------------------
2. Royal Bank of Scotland Group Plc, Floating Rate Note (Perpetual) 1.24
--------------------------------------------------------------------------------
3. International Game Technology Plc, 6.5%, 2/15/25 (144A) 1.11
--------------------------------------------------------------------------------
4. Altice Financing SA, 7.5%, 5/15/26 (144A) 1.08
--------------------------------------------------------------------------------
5. SFR Group SA, 7.375%, 5/1/26 (144A) 1.07
--------------------------------------------------------------------------------
6. ING Groep NV, Floating Rate Note, 12/29/49 1.06
--------------------------------------------------------------------------------
7. Big River Steel LLC, 7.25%, 9/1/25 (144A) 1.03
--------------------------------------------------------------------------------
8. CSC Holdings LLC, 5.5%, 4/15/27 (144A) 1.03
--------------------------------------------------------------------------------
9. Cimpress NV, 7.0%, 4/1/22 (144A) 1.02
--------------------------------------------------------------------------------
10. Ardagh Packaging Finance Plc, 4.625%, 5/15/23 (144A) 1.01
--------------------------------------------------------------------------------
* This list excludes temporary cash 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 securities listed.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 9
Prices and Distributions | 8/31/17
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/17 1/3/17*
--------------------------------------------------------------------------------
A $10.22 $10.00
--------------------------------------------------------------------------------
C $10.21 $10.00
--------------------------------------------------------------------------------
Y $10.22 $10.00
--------------------------------------------------------------------------------
Distributions per Share: 1/3/17-8/31/17
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2760 $ -- $ --
--------------------------------------------------------------------------------
C $0.2310 $ -- $ --
--------------------------------------------------------------------------------
Y $0.2907 $ -- $ --
--------------------------------------------------------------------------------
Index Definition
--------------------------------------------------------------------------------
The BofA ML U.S. High Yield Index is an unmanaged, commonly accepted measure of
the performance of high-yield securities. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. It is not possible to invest directly in an
index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 11-13.
* The Fund commenced operations on January 3, 2017.
10 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
Performance Update | 8/31/17 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 U.S. Corporate High Yield Fund at
public offering price during the periods shown, compared to that of the BofA ML
U.S. High Yield Index.
Average Annual Total Returns
(As of August 31, 2017)
--------------------------------------------------------------------------------
Net Public BofA
Asset Offering ML U.S.
Value Price High Yield
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
Life of Class
(1/3/17) 5.00% 0.28% 5.81%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated January 1, 2017)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.99% 1.05%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer U.S. Corporate BofA ML U.S. High
High Yield Fund Yield Index
1/17 $ 9,550 $ 10,000
8/17 $ 9,990 $ 10,469
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. 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, 2018, for Class A shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 11
Performance Update | 8/31/17 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 U.S. Corporate High Yield Fund
during the periods shown, compared to that of the BofA ML U.S. High Yield Index.
Average Annual Total Returns
(As of August 31, 2017)
--------------------------------------------------------------------------------
BofA
ML U.S.
If If High Yield
Period Held Redeemed Index
--------------------------------------------------------------------------------
Life of Class
(1/3/17) 4.44% 4.44% 5.81%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated January 1, 2017)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.74% 1.80%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer U.S. Corporate BofA ML U.S. High
High Yield Fund Yield Index
1/17 $ 10,000 $ 10,000
8/17 $ 10,412 $ 10,469
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). If you paid a 1% sales charge, your returns would
be lower than those shown above. "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, 2018, for Class C shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
Performance Update | 8/31/17 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 U.S. Corporate High Yield Fund
during the periods shown, compared to that of the BofA ML U.S. High Yield Index.
Average Annual Total Returns
(As of August 31, 2017)
--------------------------------------------------------------------------------
Net BofA
Asset ML U.S.
Value High Yield
Period (NAV) Index
--------------------------------------------------------------------------------
Life of Class
(1/3/17) 5.14% 5.81%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated January 1, 2017)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.72% 0.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer U.S. Corporate BofA ML U.S. High
High Yield Fund Yield Index
1/17 $ 5,000,000 $ 5,000,000
8/17 $ 5,236,337 $ 5,234,361
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2018, for Class Y shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer U.S. Corporate High Yield Fund
Based on actual returns from March 1, 2017, through August 31, 2017.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/17
--------------------------------------------------------------------------------
Ending Account $1,032.55 $1,027.65 $1,032.71
Value on 8/31/17
--------------------------------------------------------------------------------
Expenses Paid $ 5.23 $ 8.94 $ 3.84
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.02%,
1.75%, and 0.75% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the partial year period).
14 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
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 U.S. Corporate High Yield Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from March 1, 2017, through August 31, 2017.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/17
--------------------------------------------------------------------------------
Ending Account $1,020.06 $1,016.38 $ 1021.42
Value on 8/31/17
--------------------------------------------------------------------------------
Expenses Paid $ 5.19 $ 8.89 $ 3.82
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.02%,
1.75%, and 0.75% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the partial year period).
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 15
Schedule of Investments | 8/31/17
-------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (a) Spread (b) Value
-------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 100.4%
CONVERTIBLE CORPORATE BONDS -- 1.2%
MEDIA -- 0.7%
Cable & Satellite -- 0.7%
146,000 DISH Network Corp., 2.375%,
3/15/24 (144A) $ 147,734
------------
Total Media $ 147,734
-------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.5%
Health Care Equipment -- 0.5%
85,000 Wright Medical Group, Inc., 2.0%, 2/15/20 $ 98,228
------------
Total Health Care Equipment & Services $ 98,228
-------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $244,998) $ 245,962
-------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 1.8%
BANKS -- 1.8%
Diversified Banks -- 1.8%
116 Bank of America Corp., 7.25% (Perpetual) $ 152,888
150 Wells Fargo & Co., 7.5% (Perpetual) 199,650
------------
$ 352,538
------------
Total Banks $ 352,538
-------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $345,611) $ 352,538
-------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 93.7%
ENERGY -- 13.7%
Oil & Gas Drilling -- 1.4%
135,000 Rowan Companies, Inc., 5.4%, 12/1/42 $ 95,175
200,000 Trinidad Drilling, Ltd., 6.625%,
2/15/25 (144A) 185,000
------------
$ 280,175
-------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.2%
50,000 SESI LLC, 7.75%, 9/15/24 (144A) $ 50,500
-------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 6.2%
101,000 Antero Resources Corp., 5.0%, 3/1/25 $ 98,980
11,000 Chesapeake Energy Corp., 8.0%,
12/15/22 (144A) 11,371
95,000 Chesapeake Energy Corp., 8.0%,
6/15/27 (144A) 90,250
80,000 Covey Park Energy LLC, 7.5%,
5/15/25 (144A) 80,300
21,000 Denbury Resources, Inc., 4.625%, 7/15/23 9,240
180,000 Extraction Oil & Gas, Inc., 7.375%,
5/15/24 (144A) 180,900
100,000 Great Western Petroleum LLC, 9.0%,
9/30/21 (144A) 99,500
The accompanying notes are an integral part of these financial statements.
16 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
-------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (a) Spread (b) Value
-------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- (continued)
122,000 MEG Energy Corp., 7.0%, 3/31/24 (144A) $ 96,990
150,000 Murphy Oil Corp., 6.875%, 8/15/24 158,438
17,000 Oasis Petroleum, Inc., 6.875%, 3/15/22 16,532
120,000 Sanchez Energy Corp., 6.125%, 1/15/23 91,500
106,000 SM Energy Co., 6.125%, 11/15/22 100,170
160,000 Whiting Petroleum Corp., 6.25%, 4/1/23 148,400
40,000 WPX Energy, Inc., 5.25%, 9/15/24 39,200
26,000 WPX Energy, Inc., 7.5%, 8/1/20 28,080
------------
$ 1,249,851
-------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 1.0%
202,000 PBF Holding Co., LLC, 7.0%, 11/15/23 $ 202,505
-------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 4.9%
95,000 Cheniere Corpus Christi Holdings LLC,
5.875%, 3/31/25 $ 102,125
200,000 Delek Logistics Partners LP, 6.75%,
5/15/25 (144A) 201,750
136,000 Energy Transfer Equity LP, 5.875%, 1/15/24 146,540
100,000 Genesis Energy LP, 6.5%, 10/1/25 98,000
50,000 Genesis Energy LP, 6.75%, 8/1/22 50,625
100,000 NGPL PipeCo LLC, 4.375%, 8/15/22 (144A) 102,750
40,000 NuStar Logistics LP, 5.625%, 4/28/27 42,400
93,000 Sabine Pass Liquefaction LLC,
5.875%, 6/30/26 103,884
138,000 The Williams Companies, Inc.,
5.75%, 6/24/44 143,175
------------
$ 991,249
------------
Total Energy $ 2,774,280
-------------------------------------------------------------------------------------------------------
MATERIALS -- 10.0%
Commodity Chemicals -- 1.2%
151,000 NOVA Chemicals Corp., 5.0%,
5/1/25 (144A) $ 150,622
100,000 Valvoline, Inc., 4.375%, 8/15/25 (144A) 100,875
------------
$ 251,497
-------------------------------------------------------------------------------------------------------
Diversified Chemicals -- 1.1%
205,000 CF Industries, Inc., 3.45%, 6/1/23 $ 199,362
25,000 Hexion, Inc., 6.625%, 4/15/20 22,750
------------
$ 222,112
-------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.7%
140,000 Kraton Polymers LLC, 7.0%, 4/15/25 (144A) $ 150,500
-------------------------------------------------------------------------------------------------------
Metal & Glass Containers -- 1.0%
200,000 Ardagh Packaging Finance Plc, 4.625%,
5/15/23 (144A) $ 205,500
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 17
Schedule of Investments | 8/31/17 (continued)
-------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (a) Spread (b) Value
-------------------------------------------------------------------------------------------------------
Aluminum -- 1.3%
250,000 Constellium NV, 6.625%, 3/1/25 (144A) $ 262,500
-------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.9%
68,000 Prince Mineral Holding Corp., 11.5%,
12/15/19 (144A) $ 70,210
100,000 Coeur Mining, Inc., 5.875%, 6/1/24 (144A) 100,000
------------
$ 170,210
-------------------------------------------------------------------------------------------------------
Gold -- 0.5%
100,000 Kinross Gold Corp., 4.5%, 7/15/27 (144A) $ 100,000
-------------------------------------------------------------------------------------------------------
Steel -- 3.3%
100,000 AK Steel Corp., 6.375%, 10/15/25 $ 98,750
200,000 Big River Steel LLC, 7.25%, 9/1/25 (144A) 209,500
100,000 Commercial Metals Co., 5.375%, 7/15/27 104,250
150,000 United States Steel Corp., 6.875%, 8/15/25 152,625
90,000 Zekelman Industries, Inc., 9.875%,
6/15/23 (144A) 100,800
------------
$ 665,925
------------
Total Materials $ 2,028,244
-------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 8.4%
Aerospace & Defense -- 0.7%
135,000 Engility Corp., 8.875%, 9/1/24 $ 147,319
-------------------------------------------------------------------------------------------------------
Building Products -- 1.2%
190,000 Builders FirstSource, Inc., 5.625%,
9/1/24 (144A) $ 198,550
48,000 Standard Industries, Inc., 5.375%,
11/15/24 (144A) 50,160
------------
$ 248,710
-------------------------------------------------------------------------------------------------------
Construction & Engineering -- 2.2%
90,000 AECOM, 5.875%, 10/15/24 $ 98,438
193,000 Amsted Industries, Inc., 5.375%,
9/15/24 (144A) 200,961
140,000 Tutor Perini Corp., 6.875%, 5/1/25 (144A) 150,500
------------
$ 449,899
-------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 2.4%
147,000 CSVC Acquisition Corp., 7.75%,
6/15/25 (144A) $ 141,488
141,000 JB Poindexter & Co., Inc., 9.0%,
4/1/22 (144A) 147,698
190,000 Park-Ohio Industries, Inc., 6.625%, 4/15/27 202,112
------------
$ 491,298
-------------------------------------------------------------------------------------------------------
Construction & Farm Machinery &
Heavy Trucks -- 0.8%
145,000 Meritor, Inc., 6.25%, 2/15/24 $ 152,612
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
-------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (a) Spread (b) Value
-------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.3%
50,000 EnPro Industries, Inc., 5.875%,
9/15/22 (144A) $ 52,125
-------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.8%
150,000 H&E Equipment Services, Inc., 5.625%,
9/1/25 (144A) $ 154,875
------------
Total Capital Goods $ 1,696,838
-------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.0%+
Commercial Printing -- 0.0%+
12,000 Cenveo Corp., 6.0%, 8/1/19 (144A) $ 9,870
------------
Total Commercial Services & Supplies $ 9,870
-------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.5%
Airlines -- 1.5%
99,000 DAE Funding LLC, 5.0%, 8/1/24 (144A) $ 101,228
205,000 Intrepid Aviation Group Holdings LLC,
6.875%, 2/15/19 (144A) 200,131
------------
$ 301,359
------------
Total Transportation $ 301,359
-------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 2.2%
Auto Parts & Equipment -- 1.7%
150,000 Cooper-Standard Automotive, Inc., 5.625%,
11/15/26 (144A) $ 150,938
191,000 TI Group Automotive Systems LLC, 8.75%,
7/15/23 (144A) 201,318
------------
$ 352,256
-------------------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.5%
95,000 Dana Financing Luxembourg Sarl, 5.75%,
4/15/25 (144A) $ 99,156
------------
Total Automobiles & Components $ 451,412
-------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 4.7%
Home Furnishings -- 0.7%
147,000 Tempur Sealy International, Inc.,
5.5%, 6/15/26 $ 151,726
-------------------------------------------------------------------------------------------------------
Homebuilding -- 4.0%
190,000 Beazer Homes USA, Inc., 6.75%, 3/15/25 $ 199,975
179,000 KB Home, 7.625%, 5/15/23 201,822
100,000 Meritage Homes Corp., 5.125%,
6/6/27 (144A) 99,625
189,000 Taylor Morrison Communities, Inc., 5.875%,
4/15/23 (144A) 200,340
100,000 TRI Pointe Group, Inc., 5.25%, 6/1/27 101,250
------------
$ 803,012
------------
Total Consumer Durables & Apparel $ 954,738
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 19
Schedule of Investments | 8/31/17 (continued)
-------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (a) Spread (b) Value
-------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 4.9%
Casinos & Gaming -- 3.1%
191,000 Eldorado Resorts, Inc., 6.0%, 4/1/25 $ 202,938
200,000 International Game Technology Plc, 6.5%,
2/15/25 (144A) 224,500
182,000 Scientific Games International, Inc.,
10.0%, 12/1/22 202,475
------------
$ 629,913
-------------------------------------------------------------------------------------------------------
Hotels, Resorts & Cruise Lines -- 0.8%
150,000 Viking Cruises, Ltd., 6.25%, 5/15/25 (144A) $ 153,000
-------------------------------------------------------------------------------------------------------
Specialized Consumer Services -- 1.0%
181,000 Prime Security Services Borrower LLC,
9.25%, 5/15/23 (144A) $ 200,005
------------
Total Consumer Services $ 982,918
-------------------------------------------------------------------------------------------------------
MEDIA -- 8.0%
Broadcasting -- 3.2%
194,000 CCO Holdings LLC, 5.5%, 5/1/26 (144A) $ 202,488
195,000 Gray Television, Inc., 5.875%,
7/15/26 (144A) 200,850
147,000 Nexstar Broadcasting, Inc., 5.625%,
8/1/24 (144A) 152,145
100,000 Sinclair Television Group, Inc., 5.125%,
2/15/27 (144A) 97,000
------------
$ 652,483
-------------------------------------------------------------------------------------------------------
Cable & Satellite -- 3.6%
200,000 CSC Holdings LLC, 5.5%, 4/15/27 (144A) $ 208,750
97,000 DISH DBS Corp., 5.875%, 11/15/24 104,639
190,000 Sirius XM Radio, Inc., 5.375%,
7/15/26 (144A) 199,500
196,000 Videotron, Ltd., 5.125%, 4/15/27 (144A) 201,880
------------
$ 714,769
-------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 1.2%
100,000 AMC Entertainment Holdings, Inc.,
6.125%, 5/15/27 $ 93,625
150,000 Netflix, Inc., 4.375% 11/15/26 146,250
------------
$ 239,875
------------
Total Media $ 1,607,127
-------------------------------------------------------------------------------------------------------
RETAILING -- 1.1%
Specialty Stores -- 0.6%
59,000 PetSmart, Inc., 7.125%, 3/15/23 (144A) $ 48,085
75,000 PetSmart, Inc., 5.875%, 6/1/25 (144A) 66,938
------------
$ 115,023
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
-------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (a) Spread (b) Value
-------------------------------------------------------------------------------------------------------
Automotive Retail -- 0.5%
100,000 Penske Automotive Group, Inc.,
3.75%, 8/15/20 $ 101,990
------------
Total Retailing $ 217,013
-------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.0%
Packaged Foods & Meats -- 0.5%
100,000 Post Holdings, Inc., 5.0%, 8/15/26 (144A) $ 100,000
-------------------------------------------------------------------------------------------------------
Tobacco -- 0.5%
98,000 Alliance One International, Inc.,
8.5%, 4/15/21 $ 102,165
------------
Total Food, Beverage & Tobacco $ 202,165
-------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.5%
Personal Products -- 0.5%
125,000 Revlon Consumer Products Corp.,
6.25%, 8/1/24 $ 100,929
------------
Total Household & Personal Products $ 100,929
-------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 6.5%
Health Care Services -- 1.4%
100,000 BioScrip, Inc., 8.875%, 2/15/21 $ 91,000
198,000 Universal Hospital Services, Inc.,
7.625%, 8/15/20 200,970
------------
$ 291,970
-------------------------------------------------------------------------------------------------------
Health Care Facilities -- 3.8%
55,000 CHS, 6.25%, 3/31/23 $ 55,412
100,000 CHS, Inc., 8.0%, 11/15/19 99,125
142,000 HCA, Inc., 5.375%, 2/1/25 149,810
164,000 Kindred Healthcare, Inc., 6.375%, 4/15/22 149,240
100,000 LifePoint Health, Inc., 5.375%, 5/1/24 103,500
189,000 RegionalCare Hospital Partners Holdings,
Inc., 8.25%, 5/1/23 (144A) 200,576
------------
$ 757,663
-------------------------------------------------------------------------------------------------------
Managed Health Care -- 1.3%
95,000 Molina Healthcare, Inc., 5.375%, 11/15/22 $ 99,038
150,000 WellCare Health Plans, Inc., 5.25%, 4/1/25 157,125
------------
$ 256,163
------------
Total Health Care Equipment & Services $ 1,305,796
-------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 3.3%
Pharmaceuticals -- 3.3%
80,000 Endo Finance LLC, 5.375%, 1/15/23 (144A) $ 67,000
200,000 Horizon Pharma, Inc., 6.625%, 5/1/23 194,000
The accompanying notes are an integral part of these financial statements.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 21
Schedule of Investments | 8/31/17 (continued)
-------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (a) Spread (b) Value
-------------------------------------------------------------------------------------------------------
Pharmaceuticals -- (continued)
231,000 Valeant Pharmaceuticals International, Inc.,
5.875%, 5/15/23 (144A) $ 196,928
95,000 Valeant Pharmaceuticals International, Inc.,
6.5%, 3/15/22 (144A) 99,631
100,000 West Street Merger Sub, Inc., 6.375%,
9/1/25 (144A) 99,625
------------
$ 657,184
------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 657,184
-------------------------------------------------------------------------------------------------------
BANKS -- 3.5%
Diversified Banks -- 2.5%
40,000 5.90 3M LIBOR + Citigroup, Inc., Floating Rate
423 bps Note (Perpetual) $ 43,100
200,000 6.50 USSW5 + ING Groep NV, Floating Rate
444.6 bps Note, 12/29/49 214,160
227,000 8.62 USSW5 + Royal Bank of Scotland Group Plc, Floating
759.8 bps Rate Note (Perpetual) 251,402
------------
$ 508,662
-------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.0%
196,000 Provident Funding Associates LP, 6.375%,
6/15/25 (144A) $ 202,860
------------
Total Banks $ 711,522
-------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.0%
Specialized Finance -- 1.0%
45,000 Cantor Fitzgerald LP, 7.875%,
10/15/19 (144A) $ 49,326
150,000 Nationstar Mortgage LLC, 6.5%, 7/1/21 153,054
------------
$ 202,380
-------------------------------------------------------------------------------------------------------
Consumer Finance -- 1.0%
195,000 Ally Financial, Inc., 4.625%, 3/30/25 $ 203,288
------------
Total Diversified Financials $ 405,668
-------------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.2%
Specialized REIT -- 0.2%
36,000 Uniti Group LP, 6.0%, 4/15/23 (144A) $ 36,090
------------
Total Real Estate $ 36,090
-------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 6.0%
Internet Software & Services -- 1.0%
200,000 Cimpress NV, 7.0%, 4/1/22 (144A) $ 207,250
-------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 2.5%
141,000 Iron Mountain US Holdings, Inc., 5.375%,
6/1/26 (144A) $ 148,755
The accompanying notes are an integral part of these financial statements.
22 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
-------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (a) Spread (b) Value
-------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- (continued)
146,000 j2 Cloud Services LLC, 6.0%,
7/15/25 (144A) $ 150,562
187,000 Rackspace, 8.625%, 11/15/24 198,454
------------
$ 497,771
-------------------------------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 2.5%
192,000 Alliance Data Systems Company,
5.875, 11/1/21 $ 197,280
195,000 Cardtronics, Inc., 5.5%, 5/1/25 (144A) 199,510
94,000 First Data Corp., 7.0%, 12/1/23 (144A) 101,285
------------
$ 498,075
------------
Total Software & Services $ 1,203,096
-------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 3.9%
Communications Equipment -- 2.2%
100,000 Avaya, Inc., 4/1/19 (144A) (c) $ 84,250
138,000 CommScope Technologies LLC, 6.0%,
6/15/25 (144A) 146,625
195,000 Plantronics, Inc., 5.5%, 5/31/23 (144A) 201,825
------------
$ 432,700
-------------------------------------------------------------------------------------------------------
Computer Hardware Storage & Peripherals -- 1.7%
136,000 Dell, Inc., 7.1%, 4/15/28 $ 149,600
184,000 Diebold Nixdorf, Inc., 8.5%, 4/15/24 201,132
------------
$ 350,732
------------
Total Technology Hardware & Equipment $ 783,432
-------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 7.4%
Integrated Telecommunication Services -- 4.1%
150,000 CenturyLink, Inc., 6.45%, 6/15/21 $ 156,938
200,000 Cincinnati Bell, Inc., 7.0%, 7/15/24 (144A) 198,000
107,000 Frontier Communications Corp.,
9.25%, 7/1/21 98,172
140,000 GCI, Inc., 6.875%, 4/15/25 149,800
200,000 SFR Group SA, 7.375%, 5/1/26 (144A) 216,004
------------
$ 818,914
-------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 3.3%
200,000 Altice Financing SA, 7.5%, 5/15/26 (144A) $ 219,040
185,000 Sprint Corp., 7.125%, 6/15/24 203,500
92,000 Sprint Corp., 7.25%, 9/15/21 101,430
141,000 T-Mobile USA, Inc., 6.625%, 4/1/23 148,579
------------
$ 672,549
------------
Total Telecommunication Services $ 1,491,463
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 23
Schedule of Investments | 8/31/17 (continued)
-------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (a) Spread (b) Value
-------------------------------------------------------------------------------------------------------
UTILITIES -- 4.9%
Electric Utilities -- 0.7%
150,000 AES Corp. Virginia, 5.125%, 9/1/27 $ 152,625
-------------------------------------------------------------------------------------------------------
Gas Utilities -- 1.1%
206,000 DCP Midstream Operating LP, 5.6%, 4/1/44 $ 191,580
35,000 Ferrellgas Partners LP, 8.625%, 6/15/20 31,675
------------
$ 223,255
-------------------------------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 3.1%
216,000 Calpine Corp., 5.75%, 1/15/25 $ 198,115
18,000 Dynegy, Inc., 8.0%, 1/15/25 (144A) 18,518
35,000 Dynegy, Inc., 8.125%, 1/30/26 (144A) 36,138
145,000 NRG Energy, Inc., 6.25%, 5/1/24 150,075
168,734 NSG Holdings LLC, 7.75%, 12/15/25 (144A) 181,810
36,000 TerraForm Power Operating LLC, 6.625%,
6/15/25 (Step) (144A) 38,160
------------
$ 622,816
------------
Total Utilities $ 998,696
-------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $18,984,788) $ 18,919,840
-------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 3.7%**
CAPITAL GOODS -- 1.4%
Aerospace & Defense -- 0.5%
24,875 3.99 LIBOR + DigitalGlobe, Inc., Term Loan,
275 bps 12/22/23 $ 24,880
75,000 2.75 LIBOR + MacDonald, Dettwiler and Associates, Ltd.,
275 bps Term Loan B, 7/6/24 74,794
------------
$ 99,674
-------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.9%
174,871 4.26 LIBOR + Filtration Group, Inc., Term Loan
300 bps (First Lien), 11/21/20 $ 176,237
------------
Total Capital Goods $ 275,911
-------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.1%
Specialized Consumer Services -- 0.1%
24,873 6.05 LIBOR + GCA Merger Sub, Inc., Term
475 bps/ Loan (First Lien),
Prime + 2/22/23
375 bps $ 25,137
------------
Total Consumer Services $ 25,137
-------------------------------------------------------------------------------------------------------
MEDIA -- 1.6%
Broadcasting -- 1.6%
99,875 4.49 LIBOR + A-L Parent LLC, Initial Term Loan
325 bps (First Lien), 11/18/23 $ 100,624
The accompanying notes are an integral part of these financial statements.
24 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
-------------------------------------------------------------------------------------------------------
Effective Reference
Principal Interest Index +
Amount ($) Rate (a) Spread (b) Value
-------------------------------------------------------------------------------------------------------
Broadcasting -- (continued)
199,862 4.74 LIBOR + CBS Radio, Inc., Term B Loan, 10/7/23 $ 201,527
350 bps
23,549 4.49 LIBOR + Hubbard Radio LLC, Term Loan, 5/12/22 23,608
325 bps
------------
$ 325,759
------------
Total Media $ 325,759
-------------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.5%
Personal Products -- 0.5%
99,937 4.74 LIBOR + Revlon Consumer Products Corp., Initial
350 bps Term B Loan, 7/22/23 $ 90,211
------------
Total Household & Personal Products $ 90,211
-------------------------------------------------------------------------------------------------------
UTILITIES -- 0.1%
Independent Power Producers &
Energy Traders -- 0.1%
24,522 5.80 LIBOR + TerraForm AP Acquisition Holdings LLC, Term
425 bps Loan, 6/26/22 $ 25,074
------------
Total Utilities $ 25,074
-------------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE LOAN INTERESTS
(Cost $744,777) $ 742,092
-------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN UNAFFILIATED
ISSUERS -- 100.4%
(Cost $20,320,174) $ 20,260,432
-------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- (0.4)% $ (71,113)
-------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 20,189,319
=======================================================================================================
+ Amount rounds to less than 0.1%.
(Perpetual) Security with no stated maturity date.
LIBOR London-Interbank Offer Rate.
PRIME U.S. Federal Funds Rate.
BPS Basis Point.
USSW5 USD Swap Semi Annual 30/360 5Yr.
(Step) Bond issued with an initial coupon rate which converts to a higher
rate at a later date.
REIT Real Estate Investment Trust.
(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, 2017, the value of these securities
amounted to $10,655,571 or 52.8% of net assets.
The accompanying notes are an integral part of these financial statements.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 25
Schedule of Investments | 8/31/17 (continued)
** 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 U.S. banks,
(iii) the certificate of deposit or (iv) other base lending rates
used by commercial lenders. The rate shown is the coupon rate at
period end.
(a) Debt obligation with a variable interest rate. Rate shown is rate at
period end.
(b) Floating rate note. Reference index and spread shown at period end.
(c) Security issued with a zero coupon. Income is earned through
accretion of discount.
Purchases and sales of securities (excluding temporary cash investments) for the
period ended August 31, 2017 were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government $ -- $ --
Other Long-Term Securities $ 25,425,909 $ 5,140,160
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain Funds and accounts for which Amundi Pioneer Asset
Management, Inc., formerly Pioneer Investment Management, Inc. (the Adviser)
serves as investment adviser, as set forth in Rule 17a-7 under the Investment
Company Act of 1940, pursuant to procedures adopted by the Board of Trustees.
Under these procedures, cross trades are effected at current market prices.
During the period ended August 31, 2017 the Fund did not engage in cross trade
activity.
At August 31, 2017, the net unrealized depreciation on investments based on cost
for federal income tax purposes of $20,321,408 was as follows:
Aggregate gross unrealized appreciation for all investments in which there
is an excess of value over tax cost $ 97,252
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (158,228)
------------
Net unrealized depreciation $ (60,976)
============
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.
The following is a summary of the inputs used as of August 31, 2017, in valuing
the Fund's investments:
-------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 245,962 $ -- $ 245,962
Convertible Preferred Stocks 352,538 -- -- 352,538
Corporate Bonds -- 18,919,840 -- 18,919,840
Senior Floating Rate Loan Interests -- 742,092 -- 742,092
-------------------------------------------------------------------------------------------------------
Total $ 352,538 $19,907,894 $ -- $20,260,432
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
Statement of Assets and Liabilities | 8/31/17
ASSETS:
Investment in unaffiliated issuers at value (cost $20,320,174) $20,260,432
Receivables --
Investment securities sold 319,567
Interest 309,800
Dividends 2,813
Due from the Adviser 22,125
Other assets 4,738
---------------------------------------------------------------------------------
Total assets $20,919,475
=================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 580,219
Trustee fees 1,236
Audit expense payable 45,116
Due to custodian 86,275
Due to affiliates
Adviser expense payable 3,077
Other due to affiliates 1,483
Accrued expenses 12,750
---------------------------------------------------------------------------------
Total liabilities $ 730,156
=================================================================================
NET ASSETS:
Paid-in capital $20,178,961
Undistributed net investment income 9,613
Net realized gain on investments 60,487
Net unrealized depreciation on investments (59,742)
---------------------------------------------------------------------------------
Net assets $20,189,319
=================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $8,076,437/790,327 shares) $ 10.22
Class C (based on $4,031,824/394,858 shares) $ 10.21
Class Y (based on $8,081,058/790,714 shares) $ 10.22
MAXIMUM OFFERING PRICE:
Class A ($10.22/ 95.5%) $ 10.70
=================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 27
Statement of Operations
For the period from 1/3/17 (Commencement of Operations) to 8/31/17
INVESTMENT INCOME:
Interest from unaffiliated issuers $228,198
Dividends from unaffiliated issuers 4,663
-----------------------------------------------------------------------------------
Total investment income $ 232,861
-----------------------------------------------------------------------------------
EXPENSES:
Management fees $ 25,855
Distribution fees
Class A 4,310
Class C 8,604
Shareholder communication expense 276
Administrative expense 5,356
Custodian fees 5,036
Registration fees 5,408
Professional fees 75,019
Printing expense 27,199
Fees and expenses of nonaffiliated Trustees 4,739
Miscellaneous 7,129
-----------------------------------------------------------------------------------
Total expenses $ 168,931
Less fees waived and expenses reimbursed by the Adviser $ (123,457)
Net expenses $ 45,474
-----------------------------------------------------------------------------------
Net investment income $ 187,387
-----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
Net realized gain (loss) on:
Investments from unaffiliated issuers $ 61,674
-----------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on:
Investments from unaffiliated issuers $ (59,742)
-----------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ 1,932
-----------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 189,319
===================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
Statement of Changes in Net Assets
-----------------------------------------------------------------------------------
1/3/17 (a)
to 8/31/17
-----------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 187,387
Net realized gain (loss) on investments 61,674
Net unrealized appreciation (depreciation) on investments (59,742)
-----------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 189,319
-----------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.28 per share) $ (73,903)
Class C ($0.23 per share) (30,917)
Class Y ($0.29 per share) (77,862)
-----------------------------------------------------------------------------------
Total distributions to shareowners $ (182,682)
-----------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS: (b)
Net proceeds from sale of shares $ 20,000,000
Reinvestment of distributions 182,682
Cost of shares repurchased --
-----------------------------------------------------------------------------------
Net increase in net assets resulting from Fund
share transactions $ 20,182,682
-----------------------------------------------------------------------------------
Net increase in net assets $ 20,189,319
NET ASSETS:
Beginning of period $ --
-----------------------------------------------------------------------------------
End of period $ 20,189,319
-----------------------------------------------------------------------------------
Undistributed net investment income $ 9,613
===================================================================================
(a) Class A, Class C and Class Y shares commenced operations on January 3,
2017.
(b) At August 31, 2017 the Adviser owned 100.0% of the value of the outstanding
shares of Pioneer U.S. Corporate High Yield Fund.
The accompanying notes are an integral part of these financial statements.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 29
Statement of Changes in Net Assets (continued)
-----------------------------------------------------------------------------------
1/3/17 to 1/3/17 to
8/31/17 8/31/17
Shares Amount
-----------------------------------------------------------------------------------
Class A*
Shares sold 783,090 $8,000,000
Reinvestment of distributions 7,237 73,903
Less shares repurchased -- --
-----------------------------------------------------------------------------------
Net increase 790,327 $8,073,903
===================================================================================
Class C*
Shares sold 391,829 $4,000,000
Reinvestment of distributions 3,030 30,917
Less shares repurchased -- --
-----------------------------------------------------------------------------------
Net increase 394,859 $4,030,917
===================================================================================
Class Y*
Shares sold 783,090 $8,000,000
Reinvestment of distributions 7,624 77,862
Less shares repurchased -- --
-----------------------------------------------------------------------------------
Net increase 790,714 $8,077,862
===================================================================================
* Class A, Class C and Class Y shares commenced operations on January 3, 2017.
The accompanying notes are an integral part of these financial statements.
30 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
Financial Highlights
-------------------------------------------------------------------------------------------
1/3/17 to
8/31/17
-------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.00
-------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.29(a)
Net realized and unrealized gain (loss) on investments 0.21
-------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.50
-------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.28)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.22
-------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.22
===========================================================================================
Total return* 5.00%***
Ratio of net expenses to average net assets 1.02%**
Ratio of net investment income (loss) to average net assets 4.40%**
Portfolio turnover rate 113%**
Net assets, end of period (in thousands) $ 8,076
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 3.89%**
Net investment income (loss) to average net assets 1.53%**
===========================================================================================
* 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) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 31
Financial Highlights (continued)
-------------------------------------------------------------------------------------------
1/3/17 to
8/31/17
-------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.00
-------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.24(a)
Net realized and unrealized gain (loss) on investments 0.20
-------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.44
-------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.23)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.21
-------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.21
===========================================================================================
Total return* 4.44%***
Ratio of net expenses to average net assets 1.75%**
Ratio of net investment income (loss) to average net assets 3.67%**
Portfolio turnover rate 113%**
Net assets, end of period (in thousands) $ 4,032
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 4.63%**
Net investment income (loss) to average net assets 0.79%**
===========================================================================================
* 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) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
32 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
-------------------------------------------------------------------------------------------
1/3/17 to
8/31/17
-------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.00
-------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.31(a)
Net realized and unrealized gain (loss) on investments 0.20
-------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.51
-------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.29)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.22
-------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.22
===========================================================================================
Total return* 5.14%***
Ratio of net expenses to average net assets 0.75%**
Ratio of net investment income (loss) to average net assets 4.67%**
Portfolio turnover rate 113%**
Net assets, end of period (in thousands) $ 8,081
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 3.63%**
Net investment income (loss) to average net assets 1.79%**
===========================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
*** Not Annualized.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 33
Notes to Financial Statements | 8/31/17
1. Organization and Significant Accounting Policies
Pioneer U.S. Corporate High Yield Fund (the Fund) is one of three 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 investment objective of the Fund is to
achieve a high level of current income and long-term capital appreciation.
The Fund offered three classes of shares designated as Class A, Class C and
Class Y shares. Class A, Class C and Class Y commenced operations on January 3,
2017. 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.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world. Amundi, one of the world's
largest asset managers, is headquartered in Paris, France. As a result of the
transaction, Pioneer Investment Management, Inc., the Fund's investment adviser,
became an indirect wholly owned subsidiary of Amundi and Amundi's wholly owned
subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer Investments was
owned by Pioneer Global Asset Management S.p.A., a wholly owned subsidiary of
UniCredit S.p.A.
In connection with the transaction, the names of the Fund's investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc.
(the Adviser) and the name of Pioneer Funds Distributor, Inc. changed to Amundi
Pioneer Distributor, Inc. (the Distributor).
34 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
In October 2016, the Securities and Exchange Commission (SEC) released its Final
Rule on Investment Company Reporting Modernization. In addition to introducing
two new regulatory reporting forms (Form N-PORT and Form N-CEN), the Final Rule
amends Regulation S-X, which impacts financial statement presentation,
particularly related to the presentation of derivative investments. Financial
statements with a period end date on or after August 1, 2017 are required to be
in compliance with the amendments to Regulation S-X. The Fund's financial
statements were prepared in compliance with the amendments to Regulation S-X.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles (U.S. GAAP) that require the management
of the Fund to make estimates and assumptions that affect the reported amounts
of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the financial statements, and the reported amounts of income,
expenses and gains and losses on investments during the reporting period. Actual
results could differ from those estimates.
The Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the New
York Stock Exchange (NYSE) is open, as of the close of regular trading on
the NYSE.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to supply
prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Loan interests are valued in accordance with guidelines established by the
Board of Trustees at the mean between the last available bid and asked
prices from one or more brokers or dealers as obtained from Loan Pricing
Corporation, an independent third party pricing service. If price
information
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 35
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.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party pricing
source. Trading in non-U.S. equity securities is substantially completed
each day at various times prior to the close of the NYSE. The values of
such securities used in computing the net asset value of the Fund's shares
are determined as of such times. The fund may use a fair value model
developed by an independent pricing service to value non-U.S. equity
securities.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
Securities or loan interests for which independent pricing services or
broker-dealers are unable to supply prices or for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued by a fair valuation team comprised of certain
personnel of the Adviser, pursuant to procedures adopted by the Fund's
Board of Trustees. The Adviser's fair valuation team uses fair value
methods approved by the Valuation Committee of the Board of Trustees. The
Adviser's fair valuation team is responsible for monitoring developments
that may impact fair valued securities and for discussing and assessing
fair values on an ongoing basis, and at least quarterly, with the Valuation
Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
36 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
At August 31, 2017, 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, including
interest on income-bearing cash accounts, is recorded on the accrual basis,
net of unrecoverable foreign taxes withheld at the applicable country
rates.
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. Interest and dividend income payable by delivery of
additional shares is reclassified as PIK (payment-in-kind) income upon
receipt and is included in interest and dividend income, respectively.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no federal income tax provision is required. As
of August 31, 2017, 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. GAAP. 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
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 37
for temporary differences. At August 31, 2017, the Fund reclassified $4,908
to increase undistributed net investment income and $1,187, to decrease
accumulated net realized gain on investments and $3,721 to decrease paid-in
capital to reflect permanent book/tax differences. These adjustments have
no impact on net assets or the results of operations.
The tax character of distributions during the period ended August 31, 2017
was as follows:
---------------------------------------------------------------------------
2017
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $182,682
---------------------------------------------------------------------------
Total $182,682
===========================================================================
The following shows the components of distributable earnings on a federal
income tax-basis at August 31, 2017:
---------------------------------------------------------------------------
2017
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 71,334
Net unrealized depreciation (60,976)
---------------------------------------------------------------------------
Total $ 10,358
===========================================================================
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. The
Distributor earned no underwriting commissions on the sale of Class A
shares during the period ended August 31, 2017.
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 Fund's transfer agent for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions
38 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
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.
F. Risks
The value of securities held by the fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread. At times, the Fund's investments may represent industries or
industry sectors that are interrelated or have common risks, making the
Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund invests in below investment grade (high yield) debt securities and
preferred stocks. Some of these high yield securities may be convertible
into equity securities of the issuer. Debt securities rated below
investment grade are commonly referred to as "junk bonds" and are
considered speculative. These securities involve greater risk of loss, are
subject to greater price volatility, and are less liquid, especially during
periods of economic uncertainty or change, than higher rated debt
securities. 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.
Interest rates in the U.S. recently have been historically low, so the Fund
faces a heightened risk that interest rates may rise. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions from
the Fund.
Certain securities in which the Fund invests, including floating rate
loans, once sold, may not settle for an extended period (for example,
several weeks or even longer). The Fund will not receive its sale proceeds
until that time, which may constrain the Fund's ability to meet its
obligations (including obligations to redeeming shareholders).
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 39
2. Management Agreement
The Adviser manages the Fund's portfolio. Management fees are calculated daily
at the annual rate of 0.60% of the Fund's average daily net assets up to $1
billion and 0.55% on assets over $1 billion. For the period ended August 31,
2017, the effective management fee (excluding waivers and/or assumption of
expenses) was equivalent to 0.60% of the Fund's average daily net assets.
The Adviser has contractually agreed to limit ordinary operating expenses of the
Fund to the extent required to reduce Fund expenses to 1.05%, 1.80% and 0.75% of
the average daily net assets attributable to Class A, Class C, and Class Y
shares, respectively. Fees waived and expenses reimbursed during the period
ended August 31, 2017 are reflected on the Statement of Operations. These
expense limitations are in effect through January 1, 2019. There can be no
assurance that the Adviser will extend the expense limitation agreement for a
class of shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$3,077 in management fees, administrative costs and certain other reimbursements
payable to the Adviser at August 31, 2017.
3. Transfer Agent
Boston Financial Data Services, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings and outgoing phone calls. For the period
ended August 31, 2017, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 266
Class C 5
Class Y 5
--------------------------------------------------------------------------------
Total $ 276
================================================================================
40 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
4. Distribution and Service Plans
The Fund has adopted a distribution plan (the Plan) pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A and Class C
shares (the Plan). Pursuant to the Plan, the Fund pays the Distributor 0.25% of
the average daily net assets attributable to Class A shares as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class A shares. Pursuant to the Plan, the Fund also pays the
Distributor 1.00% of the average daily net assets attributable to Class C
shares. The fee for Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class C shares.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $1,483 in distribution fees payable to the Distributor August 31,
2017.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00% based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to the
Distributor. For the period ended August 31, 2017 no CDSCs were paid to the
Distributor.
5. Unfunded Loan Commitments
The Fund may enter into unfunded loan commitments. Unfunded loan commitments may
be partially or wholly unfunded. During the contractual period, the Fund is
obligated to provide funding to the borrower upon demand. A fee is earned by the
Fund on the unfunded commitment and is recorded as interest income in the
Statement of Operations.
As of August 31, 2017, the Fund had the following unfunded loan commitment
outstanding:
--------------------------------------------------------------------------------
Unrealized
Appreciation/
Loan Shares Cost Value Depreciation
--------------------------------------------------------------------------------
Staples, Inc.,
Bridge Loan 10,000 $10,000 $10,000 $ --
--------------------------------------------------------------------------------
Total $10,000 $10,000 $ --
================================================================================
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 41
6. Results of Shareholder Meeting
At a special meeting held on June 13, 2017, shareholders of the Fund were asked
to consider the proposals described below. A report of the total votes cast by
the Fund's shareholders (or, with respect to Proposal 2, by shareholders of
Pioneer Series Trust V, as noted below) follows:
--------------------------------------------------------------------------------
For Against Abstain Broker Non-Votes
--------------------------------------------------------------------------------
Proposal 1 - To approve 501,904.416 0.000 0.000 0.000
an New Management
Agreement with
the Adviser
--------------------------------------------------------------------------------
For Withhold
--------------------------------------------------------------------------------
Proposal 2 - To elect Trustees*
--------------------------------------------------------------------------------
David R. Bock 52,906,413.845 1,033,842.093
--------------------------------------------------------------------------------
Benjamin M. Friedman 52,887,736.342 1,052,519.596
--------------------------------------------------------------------------------
Margaret B.W. Graham 52,932,507.056 1,007,748.882
--------------------------------------------------------------------------------
Lisa M. Jones 52,966,747.756 973,508.182
--------------------------------------------------------------------------------
Lorraine H. Monchak 52,946,675.492 993,580.446
--------------------------------------------------------------------------------
Thomas J. Perna 52,911,994.971 1,028,260.967
--------------------------------------------------------------------------------
Marguerite A. Piret 52,949,595.338 990,660.600
--------------------------------------------------------------------------------
Fred J. Ricciardi 52,895,139.856 1,045,116.082
--------------------------------------------------------------------------------
Kenneth J. Taubes 52,940,075.518 1,000,180.420
--------------------------------------------------------------------------------
* Proposal 2 was voted on and approved by all series of Pioneer Series Trust
V. Results reported above reflect the combined votes of all series of the
Trust.
42 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V and the Shareholders of
Pioneer U.S. Corporate High Yield Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
U.S. Corporate High Yield Fund (the "Fund"), one of the funds constituting
Pioneer Series Trust V (the "Trust"), including the schedule of investments, as
of August 31, 2017, and the related statements of operations, changes in net
assets and the financial highlights for the period from January 3, 2017
(commencement of operations) to August 31, 2017. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audit included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2017, by correspondence with the custodian,
brokers and others or by other appropriate auditing procedures where replies
from brokers and others were not received. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer U.S. Corporate High Yield Fund at August 31, 2017, the results of its
operations, the changes in its net assets and the financial highlights for the
for the period from January 3, 2017 (commencement of operations) to August 31,
2017, in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
October 27, 2017
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 43
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 84.69%.
44 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
Approval of New and Interim Management Agreements
Amundi Pioneer Asset Management, Inc. (Amundi Pioneer), formerly Pioneer
Investment Management, Inc., serves as the investment adviser to Pioneer U.S.
Corporate High Yield Fund (the Fund) pursuant to an investment management
agreement between Amundi Pioneer and the Fund.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world (the "Transaction"). As a
result of the Transaction, Amundi Pioneer became an indirect wholly-owned
subsidiary of Amundi and Amundi's wholly-owned subsidiary, Amundi USA, Inc.
Prior to July 3, 2017, Pioneer Investments was owned by Pioneer Global Asset
Management S.p.A. ("PGAM"), a wholly-owned subsidiary of UniCredit S.p.A.
("UniCredit").
Under the Investment Company Act of 1940, the Fund's current investment
management agreement (the "Current Management Agreement") terminated
automatically upon the consummation of the Transaction. In order for Amundi
Pioneer to continue to manage the Fund after the consummation of the
Transaction, the Trustees and shareholders of the Fund were required to approve
a new investment management agreement for the Fund (the "New Management
Agreement"). As discussed below, the Board of Trustees of the Fund approved the
New Management Agreement at a meeting held on March 6-7, 2017. The New
Management Agreement was approved by the shareholders of the Fund at a meeting
held on June 13, 2017. The Board of Trustees of the Fund also approved an
interim investment management agreement between Amundi Pioneer and the Fund (the
"Interim Management Agreement") at the March 6-7, 2017 meeting. The Interim
Management Agreement would have taken effect upon the closing of the Transaction
in the event that the shareholders of the Fund did not approve the New
Management Agreement.
Board Evaluation of the New and Interim Management Agreements
The Board evaluated the Transaction and the New Management Agreement and Interim
Management Agreement for the Fund. In connection with their evaluation of the
Transaction and the New Management Agreement for the Fund, the Trustees
requested such information as they deemed reasonably necessary, including: (a)
the structure of the Transaction and the strategy underlying the Transaction;
(b) the anticipated benefits of the Transaction to the Fund and its
shareholders; (c) the post-Transaction plans for Amundi Pioneer, including
Amundi's plans for integration of Pioneer Investments and Amundi Pioneer with
its existing asset management businesses and plans for the future development of
Amundi Pioneer; (d) the effect of the Transaction on the ongoing services
provided to the Fund, including the need to select a
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 45
new independent registered public accounting firm for the Fund, and any plans to
modify the operations of the Fund; (e) the stability and continuity of Amundi
Pioneer's management and key employees, including compensation and benefits to
Amundi Pioneer's key employees, and retention plans and incentive plan
structure; (f) the post-Transaction indebtedness and financial resources of
Amundi Pioneer; (g) Amundi's legal and operational structure, its principal
shareholders and senior management, its investment management, risk management,
administrative, legal and compliance functions; (h) certain regulatory matters
relating to Amundi's affiliates; and (i) Amundi's commitment to the United
States, including the role of Amundi Pioneer in the larger Amundi business.
The Trustees also requested and obtained the following information in connection
with their evaluation of the Transaction and the New Management Agreement for
the Fund: (i) memoranda provided by Fund counsel that summarized the legal
standards and other considerations that are relevant to the Trustees in their
deliberations regarding the New Management Agreement; (ii) the qualifications of
the investment management teams for the Fund, as well as the level of investment
by the Fund's portfolio managers in the Fund; (iii) the Fund's management fees
and total expense ratios, the financial statements of Amundi Pioneer and its
pre- and post-Transaction parent companies, profitability analyses from Amundi
Pioneer, and analyses from Amundi Pioneer as to possible economies of scale;
(iv) the profitability of the institutional business of Amundi Pioneer and
Amundi Pioneer's affiliate, Amundi Pioneer Institutional Asset Management, Inc.
("Amundi Pioneer Institutional") as compared to that of Amundi Pioneer's fund
management business; and (v) the differences between the fees and expenses of
the Fund and the fees and expenses of Amundi Pioneer's and Amundi Pioneer
Institutional's institutional accounts, as well as the different services
provided by Adviser to the Fund and by Amundi Pioneer and Amundi Pioneer
Institutional to the institutional accounts. In addition, the Trustees
considered the information provided at regularly scheduled meetings throughout
the year regarding the Fund's performance and risk attributes, including through
meetings with investment management personnel, and took into account other
information related to the Fund provided to the Trustees at regularly scheduled
meetings. The Trustees also considered information they had received in their
review of the continuance of the Current Management Agreement for the Fund in
September 2016.
At meetings held on January 9, 2017 and January 10, 2017, the Trustees met with
representatives of Amundi and PGAM, including separate meetings of the Trustees
who are not "interested persons" of the Fund Complex ("Independent Trustees")
and counsel with representatives of Amundi and PGAM, and subsequently with
representatives of Amundi. In those meetings,
46 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
they received an extensive presentation from the representatives of Amundi,
including the chief executive officer of Amundi, describing Amundi's background
and history, its global asset management activities, the growth of its business,
and its status as the largest asset management firm in Europe and one of the
largest globally; its capital structure and financial resources, including
information as to the financing of the Transaction; its principal investors,
including its majority investor Credit Agricole S.A., and Credit Agricole's
long-term commitment to the asset management business; the philosophy and
strategy underlying the Transaction and the complementarity of Amundi's and
Pioneer Investments' respective asset management businesses; Amundi's various
operating and investment committees and how they would likely interact with
Amundi Pioneer; the proposed integration process, including the progress to date
and the establishment of various integration work streams; Amundi's plans for
management of Amundi Pioneer; Amundi's philosophy as to compensation of key
employees and its general intentions with respect to incentive plans for key
employees of Amundi Pioneer; Amundi's preliminary plans to achieve cost and
other synergies; and opportunities to further develop the business of Amundi
Pioneer and Amundi Pioneer Institutional, including in the area of institutional
asset management, and how that would benefit shareholders of the Pioneer Funds.
In those meetings, the representatives of Amundi confirmed their intention that
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer would
remain in their current positions, and confirmed that they do not currently
foresee major changes in the day-to-day investment management operations of
Amundi Pioneer with respect to the Fund as a direct result of the Transaction.
They discussed incentive arrangements for key personnel that would continue
after the closing of the Transaction and their plans to establish a new
long-term incentive plan following the closing. They also generally discussed
ways in which Amundi Pioneer could potentially draw on the expanded global
resources of Amundi post-Transaction. At those meetings, the Independent
Trustees identified certain areas to which they requested further information,
including as to trading and execution of securities transactions, research and
portfolio management and potential changes in investment process, particularly
where asset classes managed by Amundi Pioneer would overlap with asset classes
managed by Amundi, the continued availability of resources currently at Pioneer
Investments or elsewhere within Amundi to assist in management of certain Funds,
and any anticipated significant changes in operations. The Independent Trustees
considered the uncertainty as to whether the Fund's independent registered
public accounting firm could continue to act in that capacity after the closing
of the Transaction. The Independent Trustees also met with counsel to review the
information they had received to date and to discuss next steps.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 47
Subsequently, the Trustees received further information from Amundi, including
written responses to questions raised by the Independent Trustees, and received
from Amundi Pioneer the information requested of it. The Independent Trustees
reviewed the information provided with counsel at telephonic meetings held on
February 16, 2017 and February 27, 2017. The Trustees held a special in-person
Board meeting on March 6-7, 2017 for further consideration of the New Management
Agreements, the Interim Management Agreements and the Transaction. The Trustees
met again with senior executives of Amundi at the March 6-7, 2017 meeting.
At the March 6-7, 2017 meeting, based on their evaluation of the information
provided by Amundi Pioneer and Amundi, the Trustees including the Independent
Trustees voting separately, approved the New Management Agreement and the
Interim Management Agreement for the Fund. In considering the New Management
Agreement for the Fund, the Trustees considered various factors that they
determined were relevant, including the factors described below. The Trustees
did not identify any single factor as the controlling factor in their
determinations. The Trustees considered the same factors with respect to the
Interim Management Agreement for the Fund.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by Amundi Pioneer to the Fund and that are expected to be provided
by Amundi Pioneer to the Fund following the consummation of the Transaction. The
Trustees reviewed the terms of the New Management Agreement, and noted that such
terms are substantially similar to the terms of the Current Management
Agreement, except for different execution dates, effective dates and termination
dates. The Trustees reviewed Amundi Pioneer's investment approach for the Fund
and its research process. The Trustees considered the resources of Amundi
Pioneer and the personnel of Amundi Pioneer who provide investment management
services to the Fund. They also reviewed the amount of non-investment resources
and personnel of Amundi Pioneer that are involved in Amundi Pioneer's services
to the Fund, including Amundi Pioneer's compliance and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by Amundi Pioneer's senior management to the Pioneer Fund complex.
The Trustees considered that Amundi Pioneer supervises and monitors the
performance of the Fund's service providers and provides the Fund with personnel
(including Fund officers) and other resources that are necessary for the Fund's
business management and operations and that Amundi Pioneer would continue to
provide those investment management and research services and resources to the
Fund following the consummation of the Transaction. The Trustees also considered
that, as administrator, Amundi
48 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
Pioneer would continue to be responsible for the administration of the Fund's
business and other affairs. The Trustees considered the fees to be paid to
Amundi Pioneer for the provision of administration services.
The Trustees considered that Deloitte & Touche LLP informed the Board that it
would no longer be independent with respect to the Fund upon the completion of
the Transaction and, accordingly, that it would be necessary for the Board to
engage a new independent registered public accounting firm for the Fund.
The Trustees considered that the Transaction was not expected to have a material
adverse impact on the nature, scope and overall quality of services provided to
the Fund and its shareholders, including investment management, risk management,
administrative, compliance, legal and other services, as a result of the
Transaction.
In that regard, the Trustees considered that Amundi is one of the largest asset
managers globally, and that Amundi Pioneer may have access to additional
research and portfolio management capabilities as a result of the Transaction
and that Amundi Pioneer, as part of Amundi, is expected to have an enhanced
global presence that may contribute to an increase in the overall scale and
resources of Amundi Pioneer. Furthermore, in considering whether the Transaction
would be expected to have a material adverse impact on the nature, scope and
overall quality of services provided to the Fund and its shareholders, the
Trustees considered the statements by representatives of Amundi that they expect
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer to
remain in their current positions and that they do not currently foresee major
changes in the day-to-day investment management operations of Amundi Pioneer as
a direct result of the Transaction, or the risk management, legal or compliance
services provided by Amundi Pioneer, with respect to the Fund. They further
considered the current incentive arrangements for key personnel of Amundi
Pioneer that would continue after the closing of the Transaction. They also
noted Amundi's stated intention to establish a new long-term incentive plan
following the closing.
The Trustees also took into account their experience in evaluating the proposed
combination of Pioneer Investments and Santander Asset Management, which was
announced in September, 2014 and abandoned in July, 2016. In light of, among
other things, this experience, the Trustees determined that they were not able
to identify any realistic alternatives to approving the New Management Agreement
that would provide the level of services to the Fund and its shareholders that
are expected to be provided by Amundi Pioneer after the closing of the
Transaction.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 49
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that Amundi Pioneer would continue to provide to the
Fund under the New Management Agreement would be satisfactory and consistent
with the terms of the New Management Agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly reviewed and
discussed throughout the year data prepared by Amundi Pioneer and information
comparing the Fund's performance with the performance of its peer group of
funds, as classified by each of Morningstar, Inc. (Morningstar) and Lipper, and
the performance of the Fund's benchmark index. They also discussed the Fund's
performance with Amundi Pioneer on a regular basis.
The Trustees' regular reviews and discussions were factored into the Trustees'
deliberations concerning the approval of the New Management Agreement.
Management Fee and Expenses
The Trustees noted that the stated management fees to be paid by the Fund are
identical under the Current Management Agreement and the New Management
Agreement. The Trustees considered information showing the fees and expenses of
the Fund in comparison to the management fees and expense ratios of its peer
group of funds as classified by Morningstar and also to the expense ratios of a
peer group of funds selected on the basis of criteria determined by the
Independent Trustees for this purpose using data provided by Strategic Insight
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners. To the extent applicable, the Trustees also
considered the impact of transfer agency, sub-transfer agency, and other
non-management fee expenses on the expense ratios of the Fund. The Trustees
noted that they separately review the Fund's transfer agency, sub-transfer
agency and intermediary arrangements and that the results of the most recent
such review were considered in the consideration of the Fund's expense ratio.
The Trustees noted that comparative information as of September 30, 2016 was not
available for this Fund as the Fund commenced operations on January 1, 2017. In
initially approving the Fund's management fee, the Trustees considered that the
Fund's management fee would fall approximately in the third quintile relative to
the management fees paid by funds in the Morningstar High Yield category. The
Trustees noted that Amundi Pioneer had agreed to waive fees and/or reimburse
expenses in order to limit the ordinary operating expenses of the Fund. The
Trustees considered that, taking into account proposed contractual expense
limitation arrangements, the expense ratio for the Fund's Class A shares would
fall approximately in the
50 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
third quintile relative to funds in the Morningstar High Yield category. The
Trustees considered that, taking into account proposed contractual expense
limitation arrangements, the expense ratio for the Fund's Class Y shares would
fall approximately in the third quintile relative to funds in the Morningstar
High Yield category.
The Trustees reviewed management fees charged by Amundi Pioneer and Amundi
Pioneer Institutional to institutional and other clients, including publicly
offered European funds sponsored by Amundi Pioneer's affiliates, unaffiliated
U.S. registered investment companies (in a sub-advisory capacity), and
unaffiliated foreign and domestic separate accounts. The Trustees also
considered Amundi Pioneer's costs in providing services to the Fund and Amundi
Pioneer's and Amundi Pioneer Institutional's costs in providing services to the
other clients and considered the differences in management fees and profit
margins for fund and non-fund services. In evaluating the fees associated with
Amundi Pioneer's and Amundi Pioneer Institutional's client accounts, the
Trustees took into account the respective demands, resources and complexity
associated with the Fund and other client accounts. The Trustees noted that in
some instances the fee rates for those clients were lower than the management
fee for the Fund and considered that, under both the Current Management
Agreement and the New Management Agreement, Amundi Pioneer would perform
additional services for the Fund that it does not provide to those other clients
or services that are broader in scope, including oversight of the Fund's other
service providers and activities related to compliance and the extensive
regulatory and tax regimes to which the Fund is subject. The Trustees also
considered the different risks associated with Amundi Pioneer's management of
the Fund and Amundi Pioneer's and Amundi Pioneer Institutional's management of
the other client accounts.
The Trustees concluded that the management fee payable by the Fund to Amundi
Pioneer was reasonable in relation to the nature and quality of the services to
be provided by Amundi Pioneer.
Profitability
The Trustees considered information provided by Amundi Pioneer regarding the
profitability of Amundi Pioneer with respect to the advisory services provided
by Amundi Pioneer to the Fund, including the methodology used by Amundi Pioneer
in allocating certain of its costs to the management of the Fund. The Trustees
also considered Amundi Pioneer's profit margin in connection with the overall
operation of the Fund. They further reviewed the financial results, including
the profit margins, realized by Amundi Pioneer and Amundi Pioneer Institutional
from non-fund businesses. The Trustees considered Amundi Pioneer's profit
margins with respect to the Fund in comparison to the limited industry data
available and noted that the
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 51
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that Amundi Pioneer's profitability with respect to the management of
the Fund was not unreasonable.
Economies of Scale
The Trustees considered Amundi Pioneer's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Fund and Fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify, and that, among other factors that may be relevant, are the following:
fee levels, expense subsidization, investment by Amundi Pioneer in research and
analytical capabilities and Amundi Pioneer's commitment and resource allocation
to the Fund. The Trustees noted that profitability also may be an indicator of
the availability of any economies of scale, although profitability may vary for
other reasons including due to reductions in expenses. The Trustees concluded
that economies of scale, if any, were being appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits that Amundi Pioneer enjoys from its
relationship with the Fund. The Trustees considered the character and amount of
fees paid or to be paid by the Fund, other than under the Current Management
Agreement or the New Management Agreement, for services provided by Amundi
Pioneer and its affiliates. The Trustees further considered the revenues and
profitability of Amundi Pioneer's businesses other than the Fund business. To
the extent applicable, the Trustees also considered the benefits to the Fund and
to Amundi Pioneer and its affiliates from the use of "soft" commission dollars
generated by the Fund to pay for research and brokerage services.
The Trustees considered that following the completion of the Transaction, Amundi
Pioneer will be the principal U.S. asset management business of Amundi, and that
Amundi's worldwide asset management business will manage over $1.38 trillion in
assets (including the Pioneer Funds). This may create opportunities for Amundi
Pioneer, Amundi Pioneer Institutional and Amundi that derive from Amundi
Pioneer's relationships with the Fund, including Amundi's ability to market the
services of Amundi Pioneer globally. The Trustees noted that Amundi Pioneer may
have access to additional research capabilities as a result of the Transaction
and Amundi's enhanced global presence that may contribute to an increase of the
overall scale of Amundi Pioneer. The Trustees considered that Amundi Pioneer and
the Fund are expected to receive reciprocal intangible benefits from the
relationship, including mutual brand recognition and, for the Fund, direct and
indirect
52 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
access to the resources of a large global asset manager. The Trustees concluded
that any such benefits received by Amundi Pioneer as a result of its
relationship with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including the Independent Trustees, concluded that the New Management
Agreement and the Interim Management Agreement for the Fund, including the fees
payable thereunder, were fair and reasonable and voted to approve the New
Management Agreement and the Interim Management Agreement, and to recommend that
shareholders approve the New Management Agreement.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 53
Trustees, Officers and Service Providers
Investment Adviser
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data 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 www.amundipioneer.com. This information is also available on the Securities
and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations and other directorships they have held during at least the past five
years. Trustees who are interested persons of the Fund within the meaning of the
1940 Act are referred to as Interested Trustees. Trustees who are not interested
persons of the Fund are referred to as Independent Trustees. Each of the
Trustees serves as a Trustee of each of the 46 U.S. registered investment
portfolios for which Amundi Pioneer serves as investment adviser (the "Pioneer
Funds"). The address for all Trustees and all officers of the Fund is 60 State
Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
54 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (66) Trustee since 2016. Private investor (2004 - 2008 and 2013 - Director, Broadridge Financial
Chairman of the Board Serves until a present); Chairman (2008 - 2013) and Chief Solutions, Inc. (investor
and Trustee successor trustee is Executive Officer (2008 - 2012), Quadriserv, communications and securities
elected or earlier Inc. (technology products for securities processing provider for financial
retirement or removal. lending industry); and Senior Executive Vice services industry) (2009 -
President, The Bank of New York (financial and present); Director, Quadriserv,
securities services) (1986 - 2004) Inc. (2005 - 2013); and
Commissioner, New Jersey State
Civil Service Commission (2011 -
2015)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (73) Trustee since 2016. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - Trust (publicly-traded mortgage
successor trustee is 2004 and 2008 - present); Interim Chief REIT) (2004 - 2009, 2012 -
elected or earlier Executive Officer, Oxford Analytica, Inc. present); Director of The Swiss
retirement or removal. (privately held research and consulting Helvetia Fund, Inc. (closed-end
company) (2010); Executive Vice President and fund) (2010 - present); Director
Chief Financial Officer, I-trax, Inc. (publicly of Oxford Analytica, Inc. (2008 -
traded health care services company) (2004 - present); and Director of
2007); and Executive Vice President and Chief Enterprise Community Investment,
Financial Officer, Pedestal Inc. Inc. (privately-held affordable
(internet-based mortgage trading company) (2000 housing finance company) (1985 -
- 2002); Private Consultant (1995 - 1997); 2010)
Managing Director, Lehman Brothers (1992 -
1995); Executive, The World Bank (1979 - 1992)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (73) Trustee since 2016. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and Mellon
successor trustee is Institutional Funds Master
elected or earlier Portfolio (oversaw 17 portfolios
retirement or removal. in fund complex) (1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (70) Trustee since 2016. Founding Director, Vice-President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee is firm) (1982 - present); Desautels Faculty of
elected or earlier Management, McGill University (1999 - present);
retirement or removal. and Manager of Research Operations and
Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 55
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (61) Trustee since 2017. Chief Investment Officer, 1199 SEIU Funds None
Trustee (Advisory Trustee from (healthcare workers union pension funds) (2001
2014 - 2017). Serves - present); Vice President - International
until a successor Investments Group, American International
trustee is elected or Group, Inc. (insurance company) (1993 - 2001);
earlier retirement or Vice President, Corporate Finance and Treasury
removal. 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); Mortgage
Strategies Group, Drexel Burnham Lambert, Ltd.
(investment bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (69) Trustee since 2016. President and Chief Executive Officer, Newbury Director of New America High
Trustee Serves until a Piret Company (investment banking firm) (1981 - Income Fund, Inc. (closed-end
successor trustee is present) investment company) (2004 -
elected or earlier present); and Member, Board of
retirement or removal. Governors, Investment Company
Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (70) Trustee since 2014. Consultant (investment company services) (2012 None
Trustee Serves until a - present); Executive Vice President, BNY
successor trustee is Mellon (financial and investment company
elected or earlier services) (1969 - 2012); Director, BNY
retirement or removal. International Financing Corp. (financial
services) (2002 - 2012); Director, Mellon
Overseas Investment Corp. (financial services)
(2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
56 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (55)* Trustee since 2017. Chair, Director, CEO and President of Amundi None
Trustee, President and Serves until a Pioneer Asset Management USA, Inc. (since
Chief Executive Officer successor trustee is September 2014); Chair, Director and CEO of
elected or earlier Amundi Pioneer Asset Management, Inc. (since
retirement or removal September 2014); Chair, Director and CEO of
Amundi Pioneer Distributor, Inc. (since
September 2014); Chair, Director, CEO and
President of Amundi Pioneer Institutional Asset
Management, Inc. (since September 2014);
Managing Director, Morgan Stanley Investment
Management (2010 - 2013); Director of
Institutional Business, CEO of International,
Eaton Vance Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (59)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S. (since
successor trustee is 2010) of Amundi Pioneer Asset Management USA,
elected or earlier Inc.; Executive Vice President and Chief
retirement or removal Investment Officer, U.S. of Amundi Pioneer
(since 2008); Executive Vice President of
Amundi Pioneer Institutional Asset Management,
Inc. (since 2009); Portfolio Manager of Amundi
Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 57
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley Since 2016. Serves at Vice President and Associate General Counsel of None
(52) the discretion of the Amundi Pioneer since January 2008; Secretary
Secretary and Board and Chief Legal Officer of all of the Pioneer
Chief Legal Officer Funds since June 2010; Assistant Secretary of
all of the Pioneer Funds from September 2003 to
May 2010; Vice President and Senior Counsel of
Amundi Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (56) Since 2016. Serves at Fund Governance Director of Amundi Pioneer None
Assistant Secretary the discretion of the since December 2006 and Assistant Secretary of
Board all the Pioneer Funds since June 2010; Manager
- Fund Governance of Amundi Pioneer from
December 2003 to November 2006; and Senior
Paralegal of Amundi Pioneer from January 2000
to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (54) Since 2016. Serves at Senior Counsel of Amundi Pioneer since May 2013 None
Assistant Secretary the discretion of the and Assistant Secretary of all the Pioneer
Board Funds since June 2010; Counsel of Amundi
Pioneer from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (57) Since 2016. Serves at Vice President - Fund Treasury of Amundi None
Treasurer and the discretion of the Pioneer; Treasurer of all of the Pioneer Funds
Chief Financial and Board since March 2008; Deputy Treasurer of Amundi
Accounting Officer Pioneer from March 2004 to February 2008; and
Assistant Treasurer of all of the Pioneer Funds
from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (52) Since 2016. Serves at Director - Fund Treasury of Amundi Pioneer; and None
Assistant Treasurer the discretion of the Assistant Treasurer of all of the Pioneer Funds
Board
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (59) Since 2016. Serves at Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Amundi Pioneer; and Assistant Treasurer of all
Board of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (37) Since 2016. Serves at Fund Administration Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Amundi Pioneer since November 2008; Assistant
Board Treasurer of all of the Pioneer Funds since
January 2009; Client Service Manager -
Institutional Investor Services at State Street
Bank from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
58 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (64) Since 2016. Serves at Chief Compliance Officer of Amundi Pioneer and None
Chief Compliance Officer the discretion of the of all the Pioneer Funds since March 2010;
Board Chief Compliance Officer of Amundi 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 Amundi Pioneer since October
2005; Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to
October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (46) Since 2016. Serves at Director - Transfer Agency Compliance of Amundi None
Anti-Money the discretion of the Pioneer and Anti-Money Laundering Officer of
Laundering Officer Board all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers
or directors of the fund's investment adviser and certain of its
affiliates.
Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17 59
This page is for your notes.
60 Pioneer U.S. Corporate High Yield Fund | Annual Report | 8/31/17
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.amundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at 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] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2017 Amundi Pioneer Asset Management 30494-00-1017
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 $96,000
payable to Ernst & Young LLP for the year ended
August 31, 2017 and $73,121 payable to Deloitte & Touche LLP
for the year ended August 31, 2016.
(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 2017 or 2016.
(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 $26,171
payable to Ernst & Young LLP for the year ended
August 31, 2017 and $15,906 payable to Deloitte & Touche LLP
for the year ended August 31, 2016.
(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 2017 or 2016.
(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 2017 and 2016, 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 $26,171
payable to Ernst & Young LLP for the year ended
August 31, 2017 and $15,906 payable to Deloitte & Touche LLP
for the year ended August 31, 2016.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. 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.
Pioneer Series Trust V
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date October 30, 2017
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, 2017
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date October 30, 2017
* Print the name and title of each signing officer under his or her signature.