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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21823
Pioneer Series Trust V
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: August 31
Date of reporting period: September 1, 2013 through February 28, 2014
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Global
Equity Fund
--------------------------------------------------------------------------------
Semiannual Report | February 28, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A GLOSX
Class B GBSLX
Class C GCSLX
Class Y PGSYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 24
Notes to Financial Statements 32
Approval of Investment Advisory Agreement 44
Trustees, Officers and Service Providers 48
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 1
President's Letter
Dear Shareowner,
A few months into 2014, we still foresee U.S. economic growth matching or
exceeding 2013 levels, despite some weaker economic data releases early in the
year driven in large part by harsh winter weather across much of the continental
U.S. While unemployment remains high, employment has been rising steadily.
Consumer incomes, savings, wealth, and debt-servicing capacity have been solid
buttresses for the recovering housing and auto industries. Industrial activity
is growing only moderately, but current corporate profits are generally solid
and balance sheets appear able to support needed capital spending and dividend*
payouts. Tax hikes, spending restraint and a better economy have meaningfully
cut the federal budget deficit. A modestly improving European economy and
continuing economic improvement in Japan appear likely to result in improving
global growth in 2014, further supporting the U.S. economy. In addition, we feel
that continuing slack in labor markets and capacity utilization offer the
potential for continuing growth without bottlenecks and rising inflation.
After observing the strengthening economic trends, the Federal Reserve (the Fed)
has begun scaling back its QE (quantitative easing) program, but short-term
interest rates remain near zero, and while Fed Chair Janet Yellen has hinted
that rates may be raised sooner than anticipated, market expectations are still
focused on no earlier than 2015.
There are certainly risks and uncertainties still facing the global economy as
2014 moves along. The European economy, while improving, remains weak, the
Japanese economy faces a tax hike this spring, and a number of emerging market
countries are experiencing difficulties. There are also geopolitical worries
abroad, such as Russia's aggressive move against Ukraine, and more potential
political fights at home, especially during a mid-term election year. While most
of the widely recognized risks we have outlined may already be "priced into" the
market, we believe investors should continue to expect market volatility.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
* Dividends are not guaranteed.
2 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in global equity and bond markets, using in-depth research to identify
undervalued individual securities, and using thoughtful risk management to
construct portfolios which seek to balance potential risks and rewards in an
ever-changing world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 3
Portfolio Management Discussion | 2/28/14
In the following interview, Marco Pirondini, Head of Equities, U.S., at Pioneer
and a portfolio manager of Pioneer Global Equity Fund, discusses the factors
that influenced the Fund's performance during the six-month period ended
February, 28, 2014. Mr. Pirondini and David Glazer, a vice president and a
portfolio manager at Pioneer, are responsible for the day-to-day management of
the Fund.
Q How did the Fund perform during the six-month period ended February 28,
2014?
A Pioneer Global Equity Fund's Class A shares returned 17.96% at net asset
value during the six-month period ended February 28, 2014, while the Fund's
benchmark, the Morgan Stanley Capital International (MSCI) World ND
Index(1), returned 14.67%. During the same period, the average return of the
1,120 mutual funds in Morningstar's World Stock Funds category was 14.92%,
and the average return of the 71 mutual funds in Lipper's Large Cap Core
Fund category was 14.32%.
Q How would you characterize the global equity markets during the six-month
period ended February 24, 2014?
A The past six months were initially characterized, back in September and
October of 2013, by heightened political risk as the U.S. Congress and the
Obama administration once again wrangled over budgetary matters, an impasse
which resulted in a temporary government shutdown in October. In addition,
the Federal Reserve's (the Fed's) initial communications during May of 2013
regarding the potential tapering of the U.S. central bank's monthly asset
purchases (known as quantitative easing, or QE) were not well received by
financial markets. Following the resolution of the U.S. budget crisis,
however, additional signs that the pace of domestic economic growth was
accelerating provided a very strong boost to equity markets, and U.S. stocks
generally performed very well over the full six-month period. In addition,
late in the fourth quarter of 2013, the Fed was able to more successfully
articulate its strategy regarding both QE tapering and future interest-rate
policy, and the announcement was well received by investors.
(1) The MSCI information may only be used for your internal use, may not be
reproduced or re-disseminated in any form and may not be used as a basis for
or a component of any financial instruments or products or indices. None of
the MSCI information is intended to constitute investment advice or a
recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future performance
analysis, forecast or prediction. The MSCI information is provided on an "as
is" basis and the user of this information assumes the entire risk of any
use made of this information. MSCI, each of its affiliates and each other
person involved in or related to compiling, computing or creating any MSCI
information (collectively, the "MSCI Parties") expressly disclaims all
warranties (including, without limitation, any warranties of originality,
accuracy, completeness, timeliness, non-infringement, merchantability and
fitness for a particular purpose) with respect to this information. Without
limiting any of the foregoing, in no event shall any MSCI Party have any
liability for any direct, indirect, special, incidental, punitive,
consequential (including, without limitation, lost profits) or any other
damages.
4 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
Internationally, we saw indications of economic improvement in Europe, where
signs of growth began to appear. Additionally, bond prices for "peripheral"
European countries displayed incremental recovery, providing a lift for
those economies. Japan also benefited from the easing of monetary policy by
the Bank of Japan, though Japanese stocks gave back some gains toward the
end of the six-month period. The emerging markets continued to struggle, as
many emerging economies wrestled with increasing interest rates and slowing
economic growth. In addition, the QE tapering by the Fed, which translates
into less "easy" money for investors to park in the emerging markets, had a
negative effect on the emerging economies.
Q Would you review the Fund's overall investment approach?
A When picking investments for the portfolio we examine mid- and large-
capitalization stocks worldwide, including those located in the emerging
markets. From there, we build a diversified* portfolio. We look for stocks
that we think can provide "growth at a reasonable price," and so there is a
strong value component to our analysis. We seek to invest the Fund in
companies that are not only benefiting from operating efficiencies as
reflected in factors such as increased market share and revenues, but that
are also employing their capital efficiently. In particular, we emphasize
strong free cash flow, because that provides companies with the flexibility
to make share buybacks, reinvest in their businesses, make acquisitions, and
raise dividends**. We also look for stocks with attractive dividend yields
as well as those trading at below-market valuations.
Finally, we attempt to assess not only the potential price gains for each
stock, but also the stock's potential for a decline in price if
circumstances become unfavorable. We prefer stocks with the highest
potential upside, relative to their downside.
Q Which of your investment decisions had the biggest effects on the Fund's
performance during the six-month period ended February 28, 2014?
A During the period, the Fund was well positioned to take advantage of
positive trends in the equity markets, and both our stock selection and
sector allocation decisions aided performance. With regard to sector
allocation, the Fund's performance strongly benefited from a large
overweight to health care as well as from an overweight to international
telecommunications stocks. A portfolio underweight to the emerging markets -
especially to consumer stocks - also contributed to returns.
* Diversification does not assure a profit nor protect against loss in a
declining market.
** Dividends are not guaranteed.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 5
As for individual stock selection, the Fund's position in the packaged drink
distributor Green Mountain Coffee Roasters was the biggest contributor to
performance during the six-month period. Investors reacted positively to the
news that Green Mountain had entered into an agreement with Coca-Cola to add
packaged soft drinks to the company's line of coffee products. In addition,
the Fund's holdings in Vodafone aided returns as the British
telecommunications company was able to sell its shares in Verizon Wireless
back to Verizon at a large premium. The Fund's collection of currency-
hedged Japanese investments also contributed to performance.
Stock selections that did not fare well during the period included the
Fund's exposure to Samsung, which detracted from returns. The company has
not performed well despite its inexpensive valuation at the time we
purchased it for the portfolio. Also, the Fund's position in Sumitomo, a
Japanese bank, declined in value due to the market's perception that Japan's
economy may be starting to slow down.
Q What is your outlook?
A We entered 2014 with expectations that the domestic economy would continue
to grow, and at an increased pace. Though economic data releases in the
first two months of the year have been less than robust, it is presumed that
the slackened pace is mainly attributable to the very harsh winter weather
conditions which prevailed in most of the United States.
Outside of the U.S., two worrisome clouds for global economic growth have
developed on the horizon. The first is the market's uncertainty over how
well the emerging markets can deal with higher interest rates and the Fed's
tapering of QE. The second is the possible negative influence the crisis in
the Ukraine may have on the European economic recovery, given that Russia
supplies 30% of the natural gas consumed in Europe.
In spite of the Fed's withdrawal of QE - now well underway - the global
economy continues to receive support from other central banks around the
world, as many have retained monetary policies aimed at providing economic
stimulus. Equity valuations, while no longer inexpensive, remain at average
levels from a historical perspective. Given what we still view as a
favorable investment environment for equities, we will continue to position
the Fund's portfolio to take advantage of expected advances in global
economic growth.
6 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
Please refer to the Schedule of Investments on pages 16-23 for a full listing of
fund securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund is subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
Investments in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
The portfolio may invest in derivative securities, which may include futures and
options. These types of instruments can increase price fluctuation.
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.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 7
Portfolio Summary | 2/28/14
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 18.3%
Health Care 17.1%
Information Technology 14.5%
Consumer Discretionary 14.0%
Industrials 10.8%
Energy 7.9%
Telecommunication Services 7.9%
Consumer Staples 5.3%
Materials 4.2%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 49.8%
Japan 13.4%
Switzerland 5.7%
United Kingdom 5.1%
Korea, Republic Of 3.3%
Ireland 2.8%
France 2.2%
Germany 1.9%
India 1.9%
Sweden 1.9%
Netherlands 1.6%
United Arab Emirates 1.2%
Austria 1.1%
Malaysia 1.1%
Other (individually less than 1%) 7.0%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Microsoft Corp. 3.25%
--------------------------------------------------------------------------------
2. Nippon Telegraph & Telephone Corp. 3.20
--------------------------------------------------------------------------------
3. Novartis AG 3.06
--------------------------------------------------------------------------------
4. American Airlines Group, Inc. 2.50
--------------------------------------------------------------------------------
5. Sumitomo Mitsui Financial Group, Inc. 2.11
--------------------------------------------------------------------------------
6. Morgan Stanley Co. 2.07
--------------------------------------------------------------------------------
7. Exxon Mobil Corp. 1.98
--------------------------------------------------------------------------------
8. Roche Holding AG 1.69
--------------------------------------------------------------------------------
9. CVS Caremark Corp. 1.68
--------------------------------------------------------------------------------
10. Lyondell Basell Industries NV 1.63
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
8 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
Prices and Distributions | 2/28/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/14 8/31/13
--------------------------------------------------------------------------------
A $13.14 $11.31
--------------------------------------------------------------------------------
B $13.01 $11.14
--------------------------------------------------------------------------------
C $12.95 $11.11
--------------------------------------------------------------------------------
Y $13.18 $11.37
--------------------------------------------------------------------------------
Distributions per Share: 9/1/13-2/28/14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.1950 $ -- $ --
--------------------------------------------------------------------------------
B $0.0724 $ -- $ --
--------------------------------------------------------------------------------
C $0.0965 $ -- $ --
--------------------------------------------------------------------------------
Y $0.2539 $ -- $ --
--------------------------------------------------------------------------------
The Morgan Stanley Capital International (MSCI) World ND Index is an unmanaged
measure of the performance of stock markets in the developed world. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Fund returns, do not reflect any fees, expenses or sales charges. It is not
possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 10-13.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 9
Performance Update | 2/28/14 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Global Equity Fund at public
offering price during the periods shown, compared to that of the Morgan Stanley
Capital International (MSCI) World ND Index.
Average Annual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 5.57% 4.81%
5 Years 18.12 16.72
1 Year 23.99 16.82
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.69% 1.32%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Equity Fund MSCI World ND Index
12/31/2005 $ 9,425 $ 10,000
2/28/2006 $ 9,840 $ 10,431
2/28/2007 $ 11,516 $ 12,085
2/29/2008 $ 11,861 $ 12,021
2/28/2009 $ 6,400 $ 6,357
2/28/2010 $ 9,461 $ 9,809
2/28/2011 $ 10,983 $ 11,934
2/29/2012 $ 10,795 $ 11,732
2/28/2013 $ 11,870 $ 12,987
2/28/2014 $ 14,717 $ 15,803
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
Performance Update | 2/28/14 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class B shares of Pioneer Global Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index.
Average Annual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 4.62% 4.62%
5 Years 17.08 17.08
1 Year 22.86 18.86
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.24% 2.22%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Equity Fund MSCI World ND Index
12/31/2005 $ 10,000 $ 10,000
2/28/2006 $ 10,420 $ 10,431
2/28/2007 $ 12,087 $ 12,085
2/29/2008 $ 12,334 $ 12,021
2/28/2009 $ 6,591 $ 6,357
2/28/2010 $ 9,661 $ 9,809
2/28/2011 $ 11,114 $ 11,934
2/29/2012 $ 10,827 $ 11,732
2/28/2013 $ 11,803 $ 12,987
2/28/2014 $ 14,502 $ 15,803
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class B shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 11
Performance Update | 2/28/14 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Global Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index.
Average Annual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 4.62% 4.62%
5 Years 17.06 17.06
1 Year 22.87 22.87
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.53% 2.22%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global Equity Fund MSCI World ND Index
12/31/2005 $ 10,000 $ 10,000
2/28/2006 $ 10,420 $ 10,431
2/28/2007 $ 12,077 $ 12,085
2/29/2008 $ 12,334 $ 12,021
2/28/2009 $ 6,599 $ 6,357
2/28/2010 $ 9,667 $ 9,809
2/28/2011 $ 11,130 $ 11,934
2/29/2012 $ 10,829 $ 11,732
2/28/2013 $ 11,802 $ 12,987
2/28/2014 $ 14,502 $ 15,803
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
Performance Update | 2/28/14 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Global Equity Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) World ND Index.
Average Annual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 5.90% 5.90%
5 Years 18.74 18.74
1 Year 24.58 24.58
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.02% 0.82%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global Equity Fund MSCI World ND Index
12/31/2005 $ 5,000,000 $ 5,000,000
2/28/2006 $ 5,220,220 $ 5,215,491
2/28/2007 $ 6,109,747 $ 6,042,565
2/29/2008 $ 6,292,650 $ 6,010,513
2/28/2009 $ 3,395,293 $ 3,178,376
2/28/2010 $ 5,051,534 $ 4,904,248
2/28/2011 $ 5,896,117 $ 5,967,213
2/29/2012 $ 5,817,526 $ 5,866,078
2/28/2013 $ 6,432,100 $ 6,493,369
2/28/2014 $ 8,013,032 $ 7,901,247
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for periods prior to the inception of the Fund's Class Y
shares on December 31, 2008, is the NAV performance of the Fund's Class A
shares. The performance does not reflect differences in expenses, including the
Rule 12b-1 fees applicable to Class A shares. Since fees for Class A shares are
generally higher than those of Class Y shares, the performance for Class Y
shares prior to their inception would have been higher than the performance
shown. For the period beginning December 31, 2008, the actual performance of
Class Y shares is reflected.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments and
redemption fees.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global Equity Fund
Based on actual returns from September 1, 2013, through February 28, 2014.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 9/1/13
--------------------------------------------------------------------------------
Ending Account $1,179.60 $1,174.60 $1,174.60 $1,182.20
Value on 2/28/14
--------------------------------------------------------------------------------
Expenses Paid $ 7.08 $ 11.92 $ 11.86 $ 4.38
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratios of the underlying funds. These combined totals were 1.31%,
2.21%, 2.20% and 0.81% for Class A, Class B, Class C and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period, and then multiplied by 181/365 (to reflect the
one-half year period) to calculate the "Expenses Paid During Period" in the
table above.
14 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) or redemption fees that are charged at the time of the
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 September 1, 2013, through February 28, 2014.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 9/1/13
--------------------------------------------------------------------------------
Ending Account $1,018.30 $1,013.84 $1,013.88 $1,020.78
Value on 2/28/14
--------------------------------------------------------------------------------
Expenses Paid $ 6.56 $ 11.03 $ 10.99 $ 4.06
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratios of the underlying funds. These combined totals were 1.31%,
2.21%, 2.20% and 0.81% for Class A, Class B, Class C and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period, and then multiplied by 181/365 (to reflect the
one-half year period) to calculate the "Expenses Paid During Period" in the
table above.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 15
Schedule of Investments | 2/28/14 (unaudited)
-----------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------
COMMON STOCKS -- 98.4%
ENERGY -- 7.8%
Oil & Gas Equipment & Services -- 0.5%
14,649 Halliburton Co. $ 834,993
-----------------------------------------------------------------------------------
Integrated Oil & Gas -- 5.1%
246,603 BP Plc $ 2,082,235
33,182 Exxon Mobil Corp. 3,194,431
20,880 Occidental Petroleum Corp. 2,015,338
16,380 Total SA 1,063,283
------------
$ 8,355,287
-----------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.8%
30,202 Cabot Oil & Gas Corp. $ 1,057,070
9,979 EOG Resources, Inc. 1,890,222
------------
$ 2,947,292
-----------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.4%
30,718 Avance Gas Holding, Ltd. $ 619,965
------------
Total Energy $ 12,757,537
-----------------------------------------------------------------------------------
MATERIALS -- 3.8%
Commodity Chemicals -- 1.6%
29,900 LyondellBasell Industries NV $ 2,633,592
-----------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.9%
5,815 Monsanto Co. $ 639,766
2,247 Syngenta AG 817,612
------------
$ 1,457,378
-----------------------------------------------------------------------------------
Specialty Chemicals -- 0.6%
9,600 WR Grace & Co.* $ 972,864
-----------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.7%
19,568 Rio Tinto, Ltd. $ 1,173,049
------------
Total Materials $ 6,236,883
-----------------------------------------------------------------------------------
CAPITAL GOODS -- 7.1%
Aerospace & Defense -- 1.2%
16,668 United Technologies Corp. $ 1,950,489
-----------------------------------------------------------------------------------
Electrical Components & Equipment -- 2.3%
33,168 Eaton Corp Plc $ 2,477,981
162,000 Hitachi, Ltd. 1,282,768
------------
$ 3,760,749
-----------------------------------------------------------------------------------
Construction & Farm Machinery &
Heavy Trucks -- 1.1%
6,732,000 Nam Cheong, Ltd. $ 1,807,301
-----------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
-----------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------
Industrial Machinery -- 2.5%
39,700 Ingersoll-Rand Plc $ 2,427,258
10,215 Parker Hannifin Corp. 1,231,418
261,000 Sarine Technologies, Ltd. 465,573
------------
$ 4,124,249
------------
Total Capital Goods $ 11,642,788
-----------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 1.1%
Human Resource &
Employment Services -- 1.1%
16,100 Towers Watson & Co. $ 1,756,510
------------
Total Commercial Services & Supplies $ 1,756,510
-----------------------------------------------------------------------------------
TRANSPORTATION -- 2.5%
Airlines -- 2.5%
109,582 American Airlines Group, Inc. $ 4,046,863
------------
Total Transportation $ 4,046,863
-----------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 5.4%
Tires & Rubber -- 1.0%
43,800 Bridgestone Corp. $ 1,584,469
-----------------------------------------------------------------------------------
Automobile Manufacturers -- 4.4%
19,037 Daimler AG $ 1,775,060
468,000 Mazda Motor Corp. 2,262,234
337,069 Tata Motors, Ltd. 2,310,130
263,576 Tata Motors, Ltd. 869,754
------------
$ 7,217,178
------------
Total Automobiles & Components $ 8,801,647
-----------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 2.2%
Homebuilding -- 1.0%
138,200 West Holdings Corp. $ 1,635,863
-----------------------------------------------------------------------------------
Leisure Products -- 0.4%
25,000 Sega Sammy Holdings, Inc. $ 585,938
-----------------------------------------------------------------------------------
Apparel, Accessories & Luxury Goods -- 0.8%
4,500 Christian Dior SA $ 887,475
182,700 Samsonite International SA 503,773
------------
$ 1,391,248
------------
Total Consumer Durables & Apparel $ 3,613,049
-----------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.9%
Casinos & Gaming -- 1.0%
36,910 Grand Korea Leisure Co., Ltd. $ 1,524,969
-----------------------------------------------------------------------------------
Restaurants -- 0.9%
162,300 Domino's Pizza Group Plc $ 1,520,372
------------
Total Consumer Services $ 3,045,341
-----------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 17
Schedule of Investments | 2/28/14 (unaudited) (continued)
-----------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------
MEDIA -- 2.0%
Broadcasting -- 0.3%
23,300 Fuji Media Holdings, Inc. $ 422,703
-----------------------------------------------------------------------------------
Movies & Entertainment -- 1.7%
24,149 Time Warner, Inc. $ 1,621,122
14,200 Viacom, Inc. (Class B) 1,245,766
------------
$ 2,866,888
------------
Total Media $ 3,289,591
-----------------------------------------------------------------------------------
RETAILING -- 2.4%
Department Stores -- 1.1%
31,371 Macy's, Inc. $ 1,815,126
-----------------------------------------------------------------------------------
Apparel Retail -- 0.8%
17,707 Ross Stores, Inc. $ 1,289,070
-----------------------------------------------------------------------------------
Specialty Stores -- 0.5%
14,123 Dick's Sporting Goods, Inc.* $ 757,981
------------
Total Retailing $ 3,862,177
-----------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.9%
Drug Retail -- 2.9%
37,114 CVS Caremark Corp. $ 2,714,518
31,100 Walgreen Co. 2,113,245
------------
$ 4,827,763
------------
Total Food & Staples Retailing $ 4,827,763
-----------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 2.4%
Brewers -- 0.8%
23,300 Molson Coors Brewing Co. (Class B) $ 1,324,139
-----------------------------------------------------------------------------------
Soft Drinks -- 0.7%
24,300 Coca-Cola Enterprises, Inc. $ 1,144,044
-----------------------------------------------------------------------------------
Packaged Foods & Meats -- 0.1%
1,000 Green Mountain Coffee Roasters, Inc.* $ 109,780
-----------------------------------------------------------------------------------
Tobacco -- 0.8%
39,600 Japan Tobacco, Inc. $ 1,260,367
------------
Total Food, Beverage & Tobacco $ 3,838,330
-----------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 2.9%
Health Care Equipment -- 0.5%
11,436 Covidien Plc $ 822,820
-----------------------------------------------------------------------------------
Health Care Distributors -- 1.5%
33,826 Cardinal Health, Inc. $ 2,419,574
-----------------------------------------------------------------------------------
Health Care Services -- 0.9%
19,859 Express Scripts Holding Co.* $ 1,495,581
------------
Total Health Care Equipment & Services $ 4,737,975
-----------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
-----------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 13.9%
Biotechnology -- 1.7%
12,500 Celgene Corp.* $ 2,009,375
22,900 NPS Pharmaceuticals, Inc.* 801,042
------------
$ 2,810,417
-----------------------------------------------------------------------------------
Pharmaceuticals -- 11.3%
6,401 Allergan, Inc. $ 812,927
37,930 AstraZeneca Plc 2,584,943
18,759 Johnson & Johnson 1,728,079
59,315 Novartis AG 4,949,867
63,284 Pfizer, Inc. 2,032,049
8,869 Roche Holding AG 2,734,866
12,990 Salix Pharmaceuticals, Ltd.* 1,401,881
23,000 Shire Plc 1,278,547
7,300 Valeant Pharmaceuticals International, Inc.* 1,057,478
------------
$ 18,580,637
-----------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.9%
11,774 Thermo Fisher Scientific, Inc. $ 1,466,334
------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 22,857,388
-----------------------------------------------------------------------------------
BANKS -- 8.3%
Diversified Banks -- 6.7%
1,019,766 Abu Dhabi Commercial Bank PJSC $ 2,042,588
34,800 Doha Bank QSC 640,904
332,400 Mitsubishi UFJ Financial Group, Inc. 1,925,230
62,200 Nordea Bank AB 891,071
76,400 Sumitomo Mitsui Financial Group, Inc. 3,419,748
77,552 Swedbank AB 2,184,393
------------
$ 11,103,934
-----------------------------------------------------------------------------------
Regional Banks -- 1.6%
31,547 The PNC Financial Services Group, Inc. $ 2,579,914
------------
Total Banks $ 13,683,848
-----------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 7.2%
Other Diversified Financial Services -- 2.6%
38,155 Citigroup, Inc. $ 1,855,478
17,300 Intercorp Financial Services, Inc. 549,275
34,489 JPMorgan Chase & Co. 1,959,665
------------
$ 4,364,418
-----------------------------------------------------------------------------------
Specialized Finance -- 0.5%
20,168 The NASDAQ OMX Group, Inc. $ 774,250
-----------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 19
Schedule of Investments | 2/28/14 (unaudited) (continued)
-----------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------
Consumer Finance -- 2.1%
9,090 American Express Co. $ 829,735
44,492 Discover Financial Services, Inc. 2,552,951
------------
$ 3,382,686
-----------------------------------------------------------------------------------
Investment Banking & Brokerage -- 2.0%
108,256 Morgan Stanley Co. $ 3,334,285
------------
Total Diversified Financials $ 11,855,639
-----------------------------------------------------------------------------------
INSURANCE -- 1.3%
Multi-line Insurance -- 0.8%
7,554 Allianz SE* $ 1,353,313
-----------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.5%
8,283 ACE, Ltd. $ 810,657
------------
Total Insurance $ 2,163,970
-----------------------------------------------------------------------------------
REAL ESTATE -- 1.2%
Industrial REIT -- 0.8%
778,000 Mapletree Industrial Trust $ 828,593
600,000 Sabana Shari'ah Compliant Industrial Real Estate
Investment Trust 485,230
------------
$ 1,313,823
-----------------------------------------------------------------------------------
Diversified Real Estate Activities -- 0.4%
13,222,000 Alam Sutera Realty Tbk PT $ 657,368
------------
Total Real Estate $ 1,971,191
-----------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 7.0%
Internet Software & Services -- 1.9%
28,380 eBay, Inc.* $ 1,667,893
38,400 Yahoo!, Inc.* 1,484,928
------------
$ 3,152,821
-----------------------------------------------------------------------------------
IT Consulting & Other Services -- 1.3%
331,000 Fujitsu, Ltd. $ 2,069,977
-----------------------------------------------------------------------------------
Data Processing & Outsourced Services -- 0.6%
4,774 Visa, Inc. $ 1,078,638
-----------------------------------------------------------------------------------
Systems Software -- 3.2%
137,086 Microsoft Corp. $ 5,251,764
------------
Total Software & Services $ 11,553,200
-----------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 3.2%
Computer Hardware -- 1.5%
4,661 Apple, Inc. $ 2,452,805
-----------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.9%
143,092 Global Display Co., Ltd. $ 1,494,692
-----------------------------------------------------------------------------------
Office Electronics -- 0.8%
121,600 Xerox Corp. $ 1,336,384
------------
Total Technology Hardware & Equipment $ 5,283,881
-----------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
-----------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 4.1%
Semiconductor Equipment -- 0.4%
35,600 Teradyne, Inc.* $ 721,968
-----------------------------------------------------------------------------------
Semiconductors -- 3.7%
14,905 AMS AG* $ 1,903,389
87,000 MediaTek, Inc. 1,276,308
648 Samsung Electronics Co., Ltd. 821,478
43,240 SK Hynix, Inc. 1,576,160
133,000 Transcend Information, Inc. 406,019
------------
$ 5,983,354
------------
Total Semiconductors & Semiconductor Equipment $ 6,705,322
-----------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 7.8%
Integrated Telecommunication Services -- 6.5%
92,100 Nippon Telegraph & Telephone Corp. $ 5,171,226
132,778 Orange SA 1,655,922
125,771 TDC A/S 1,250,564
350,000 Telecom Corp of New Zealand, Ltd. 734,722
3,316,000 Telekomunikasi Indonesia Persero Tbk PT 661,628
25,034 Verizon Communications, Inc. 1,187,112
------------
$ 10,661,174
-----------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.3%
519,198 Vodafone Group Plc $ 2,159,889
------------
Total Telecommunication Services $ 12,821,063
-----------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $138,224,907) $161,351,956
-----------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 98.4%
(Cost $138,224,907) (a)(b) $161,351,956
-----------------------------------------------------------------------------------
WRITTEN CALL OPTION -- (0.0%)+
(10) Green Mountain Coffee Roasters, Inc., 6/14 at $110.00 $ (11,200)
-----------------------------------------------------------------------------------
TOTAL WRITTEN CALL OPTION
(Premiums paid $12,970) $ (11,200)
-----------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 1.6% $ 2,726,398
-----------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $164,067,154
===================================================================================
* Non-income producing security.
+ Amount rounds to less than 0.1%.
REIT Real Estate Investment Trust.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 21
Schedule of Investments | 2/28/14 (unaudited) (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
(a) At February 28, 2014, the net unrealized appreciation on investments based
on cost for federal income tax purposes of $138,281,924 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $24,985,941
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (1,915,909)
-----------
Net unrealized appreciation $23,070,032
===========
(b) Distributions of investments by country of issue, as a percentage of total
investment in securities (excluding temporary cash investments), is as
follows:
United States 49.8%
Japan 13.4%
Switzerland 5.7%
United Kingdom 5.1%
Korea, Republic of 3.3%
Ireland 2.8%
France 2.2%
Germany 1.9%
India 1.9%
Sweden 1.9%
Netherlands 1.6%
United Arab Emirates 1.2%
Austria 1.1%
Malaysia 1.1%
Other (individually less than 1%) 7.0%
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 28, 2014 aggregated $100,341,221 and $102,595,725,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes to
Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services) as Level 3. See
Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
The following is a summary of the inputs used as of February 28, 2014, in
valuing the Fund's investments:
------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------
Common Stocks (U.S.) $ 88,312,892 $ -- $ -- $ 88,312,892
Common Stocks (Foreign)* -- 73,039,064 73,039,064
------------------------------------------------------------------------------------
Total $ 88,312,892 $ 73,039,064 $ -- $ 161,351,956
====================================================================================
Other Financial Instruments:
Net unrealized appreciation
on forward foreign
currency contracts $ -- $ -- $ -- $ --
Net unrealized depreciation
on futures contracts (51,375) -- -- (51,375)
Net unrealized appreciation
on written call option 1,770 -- -- 1,770
------------------------------------------------------------------------------------
Total $ (49,605) $ -- $ -- $ (49,605)
====================================================================================
During the six months ended February 28, 2014, there were no transfers between
Levels 1, 2 and 3.
* Level 2 securities are valued by independent pricing services using fair
value factors.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 23
Statement of Assets and Liabilities | 2/28/14 (unaudited)
ASSETS:
Investment in securities (cost $138,224,907) $161,351,956
Foreign currencies, at value (cost $344,464) 345,806
Futures collateral 189,000
Receivables --
Investment securities sold 3,202,570
Fund shares sold 22,731
Dividends and foreign taxes withheld 1,096,290
Due from Pioneer Investment Management, Inc. 8,432
Prepaid expenses 40,322
-------------------------------------------------------------------------------------
Total assets $166,257,107
-------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 687,466
Fund shares repurchased 123,620
Written options (premiums paid $12,970) 11,200
Unrealized depreciation on futures contracts 51,375
Unrealized depreciation on forward foreign currency contracts 33
Due to custodian 1,137,178
Due to affiliates 37,409
Accrued expenses 141,672
-------------------------------------------------------------------------------------
Total liabilities $ 2,189,953
-------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $172,708,982
Undistributed net investment income 1,902,035
Accumulated net realized loss on investments, futures contracts,
written options and foreign currency transactions (33,631,413)
Net unrealized appreciation on investments 23,127,049
Net unrealized appreciation on written options 1,770
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 10,106
Net unrealized depreciation on futures contracts (51,375)
-------------------------------------------------------------------------------------
Total net assets $164,067,154
=====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $72,931,879/5,549,230 shares) $ 13.14
Class B (based on $2,401,308/184,628 shares) $ 13.01
Class C (based on $7,923,642/611,740 shares) $ 12.95
Class Y (based on $80,810,325/6,130,115 shares) $ 13.18
MAXIMUM OFFERING PRICE:
Class A ($13.14 (divided by) 94.25% ) $ 13.94
=====================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
Statement of Operations (unaudited)
For the Six Months Ended 2/28/14
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $414) $ 3,193,003
Interest 445
----------------------------------------------------------------------------------------
Total investment income $ 3,193,448
========================================================================================
EXPENSES:
Management fees $ 579,954
Transfer agent fees
Class A 90,317
Class B 11,713
Class C 9,228
Class Y 261
Distribution fees
Class A 85,236
Class B 12,096
Class C 36,130
Shareholder communications expense 41,421
Administrative reimbursements 33,761
Custodian fees 27,556
Registration fees 29,873
Professional fees 17,848
Printing expense 6,022
Fees and expenses of nonaffiliated Trustees 3,053
Miscellaneous 992
----------------------------------------------------------------------------------------
Total expenses $ 985,461
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (129,174)
----------------------------------------------------------------------------------------
Net expenses $ 856,287
----------------------------------------------------------------------------------------
Net investment income $ 2,337,161
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES
CONTRACTS, WRITTEN OPTIONS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $12,086,830
Futures contracts (92,076)
Written options 230,596
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 903,019 $13,128,369
----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $10,366,720
Futures contracts (53,708)
Written options 1,770
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (115,340) $10,199,442
----------------------------------------------------------------------------------------
Net gain on investments, futures contracts and foreign
currency transactions $23,327,811
----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $25,664,972
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 25
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------
Six Months
Ended
2/28/14 Year Ended
(unaudited) 8/31/13
-------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 2,337,161 $ 2,135,061
Net realized gain on investments, futures contracts,
written options and foreign currency transactions 13,128,369 17,999,088
Change in net unrealized appreciation (depreciation) on
investments, futures contracts, written options and foreign
currency transactions 10,199,442 3,932,569
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 25,664,972 $ 24,066,718
-------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.20 and $0.16 per share, respectively) $ (1,074,448) $ (917,101)
Class B ($0.07 and $0.05 per share, respectively) (14,217) (14,373)
Class C ($0.10 and $0.07 per share, respectively) (57,648) (39,684)
Class Y ($0.25 and $0.21 per share, respectively) (1,568,569) (1,319,980)
-------------------------------------------------------------------------------------------
Total distributions to shareowners $ (2,714,882) $ (2,291,138)
-------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 5,648,594 $ 10,898,587
Reinvestment of distributions 1,127,924 948,339
Cost of shares repurchased (9,265,348) (15,721,764)
-------------------------------------------------------------------------------------------
Net decrease in net assets resulting from Fund
share transactions $ (2,488,830) $ (3,874,838)
-------------------------------------------------------------------------------------------
Net increase in net assets $ 20,461,260 $ 17,900,742
NET ASSETS:
Beginning of period 143,605,894 125,705,152
-------------------------------------------------------------------------------------------
End of period $164,067,154 $143,605,894
===========================================================================================
Undistributed net investment income $ 1,902,035 $ 2,279,756
===========================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
---------------------------------------------------------------------------------------
'14 Shares '14 Amount
(unaudited) (unaudited) '13 Shares '13 Amount
---------------------------------------------------------------------------------------
Class A
Shares sold 326,116 $ 4,048,506 622,079 $ 6,711,950
Reinvestment of distributions 81,975 1,045,182 87,882 888,496
Less shares repurchased (428,673) (5,312,861) (1,049,318) (11,277,005)
---------------------------------------------------------------------------------------
Net decrease (20,582) $ (219,173) (339,357) $ (3,676,559)
=======================================================================================
Class B
Shares sold or exchanged 9,856 $ 116,841 16,613 $ 170,182
Reinvestment of distributions 1,102 13,921 1,414 14,158
Less shares repurchased (38,920) (474,891) (104,877) (1,102,463)
---------------------------------------------------------------------------------------
Net decrease (27,962) $ (344,129) (86,850) $ (918,123)
=======================================================================================
Class C
Shares sold 74,872 $ 916,564 96,013 $ 1,020,165
Reinvestment of distributions 4,348 54,696 3,739 37,351
Less shares repurchased (53,863) (658,319) (113,209) (1,192,619)
---------------------------------------------------------------------------------------
Net increase (decrease) 25,357 $ 312,941 (13,457) $ (135,103)
=======================================================================================
Class Y
Shares sold 44,771 $ 566,683 289,411 $ 2,996,290
Reinvestment of distributions 1,106 14,125 823 8,334
Less shares repurchased (225,469) (2,819,277) (196,154) (2,149,677)
---------------------------------------------------------------------------------------
Net increase (decrease) (179,592) $ (2,238,469) 94,080 $ 854,947
=======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 27
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/14 Ended Ended Ended Ended Ended
(unaudited) 8/31/13 8/31/12 8/31/11 8/31/10 8/31/09
---------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 11.31 $ 9.64 $ 9.27 $ 8.44 $ 8.56 $ 10.42
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.18 $ 0.15 $ 0.17 $ 0.13 $ 0.08 $ 0.07
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 1.85 1.68 0.33 0.76 (0.17) (1.76)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.03 $ 1.83 $ 0.50 $ 0.89 $ (0.09) $ (1.69)
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.20) $ (0.16) $ (0.13) $ (0.06) $ (0.03) $ (0.17)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.83 $ 1.67 $ 0.37 $ 0.83 $ (0.12) $ (1.86)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.14 $ 11.31 $ 9.64 $ 9.27 $ 8.44 $ 8.56
===========================================================================================================================
Total return* 17.96% 19.17% 5.50% 10.48% (1.13)% (15.83)%
Ratio of net expenses to average net assets 1.30%** 1.30% 1.30% 1.30% 1.30% 1.30%
Ratio of net investment income to average net assets 2.85%** 1.35% 1.71% 1.23% 0.82% 0.69%
Portfolio turnover rate 133%** 160% 152% 194% 114% 120%
Net assets, end of period (in thousands) $72,932 $62,996 $56,970 $60,701 $61,466 $70,718
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 1.52%** 1.67% 1.72% 1.67% 1.71% 2.25%
Net investment income (loss) 2.63%** 0.98% 1.29% 0.86% 0.41% (0.26)%
===========================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/14 Ended Ended Ended Ended Ended
(unaudited) 8/31/13 8/31/12 8/31/11 8/31/10 8/31/09
--------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 11.14 $ 9.48 $ 9.08 $ 8.30 $ 8.47 $ 10.28
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.14 $ 0.09 $ 0.16 $ 0.07 $ 0.00(a) $ (0.02)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 1.80 1.62 0.26 0.71 (0.17) (1.70)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.94 $ 1.71 $ 0.42 $ 0.78 $ (0.17) $ (1.72)
--------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.07) $ (0.05) $ (0.02) $ -- $ -- $ (0.09)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.87 $ 1.66 $ 0.40 $ 0.78 $ (0.17) $ (1.81)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.01 $ 11.14 $ 9.48 $ 9.08 $ 8.30 $ 8.47
================================================================================================================================
Total return* 17.46% 18.13% 4.60% 9.40% (2.01)% (16.57)%
Ratio of net expenses to average net assets 2.20%** 2.20% 2.20% 2.20% 2.20% 2.20%
Ratio of net investment income (loss) to average net assets 1.78%** 0.43% 0.79% 0.29% (0.11)% (0.01)%
Portfolio turnover rate 133%** 160% 152% 194% 114% 120%
Net assets, end of period (in thousands) $ 2,401 $ 2,368 $ 2,838 $ 4,175 $ 5,587 $ 7,994
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 3.06%** 3.22% 3.14% 2.97% 2.93% 4.14%
Net investment loss 0.92%** (0.59)% (0.15)% (0.49)% (0.84)% (1.95)%
================================================================================================================================
(a) Amount rounds to less than $0.01 per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 29
Financial Highlights (continued)
-------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/14 Ended Ended Ended Ended Ended
(unaudited) 8/31/13 8/31/12 8/31/11 8/31/10 8/31/09
-------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 11.11 $ 9.47 $ 9.09 $ 8.31 $ 8.48 $ 10.26
-------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.11 $ 0.05 $ 0.10 $ 0.04 $ 0.00(b) $ (0.04)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 1.83 1.66 0.31 0.74 (0.17) (1.68)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.94 $ 1.71 $ 0.41 $ 0.78 $ (0.17) $ (1.72)
-------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.10) $ (0.07) $ (0.03) $ -- $ -- $ (0.06)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.84 $ 1.64 $ 0.38 $ 0.78 $ (0.17) $ (1.78)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.95 $ 11.11 $ 9.47 $ 9.09 $ 8.31 $ 8.48
===============================================================================================================================
Total return* 17.46% 18.11% 4.56% 9.39% (2.00)% (16.58)%
Ratio of net expenses to average net assets 2.19%** 2.20% 2.20% 2.20% 2.20% 2.20%
Ratio of net investment income (loss) to average net assets 2.01%** 0.45% 0.82% 0.35% (0.07)% 0.00%(a)
Portfolio turnover rate 133%** 160% 152% 194% 114% 120%
Net assets, end of period (in thousands) $ 7,924 $ 6,516 $ 5,682 $ 6,439 $ 6,118 $ 6,910
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 2.29%** 2.51% 2.53% 2.48% 2.54% 3.76%
Net investment income (loss) 1.91%** 0.14% 0.49% 0.07% (0.41)% (1.56)%
===============================================================================================================================
(a) Amount rounds to less than 0.01%.
(b) Amount rounds to less than $0.01 per share
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year 12/31/08(a)
2/28/14 Ended Ended Ended Ended to
(unaudited) 8/31/13 8/31/12 8/31/11 8/31/10 8/31/09
------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 11.37 $ 9.69 $ 9.32 $ 8.49 $ 8.59 $ 7.25
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.21 $ 0.20 $ 0.21 $ 0.18 $ 0.12 $ 0.06
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 1.85 1.69 0.34 0.76 (0.17) 1.28
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.06 $ 1.89 $ 0.55 $ 0.94 $ (0.05) $ 1.34
------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.25) $ (0.21) $ (0.18) $ (0.11) $ (0.05) $ --
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.81 $ 1.68 $ 0.37 $ 0.83 $ (0.10) $ 1.34
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.18 $ 11.37 $ 9.69 $ 9.32 $ 8.49 $ 8.59
==============================================================================================================================
Total return* 18.22% 19.75% 6.09% 10.96% (0.59)% 18.48%(b)
Ratio of net expenses to average net assets 0.80%** 0.80% 0.80% 0.80% 0.80% 0.80%**
Ratio of net investment income to average net assets 3.31%** 1.85% 2.22% 1.74% 1.33% 2.57%**
Portfolio turnover rate 133%** 160% 152% 194% 114% 120%
Net assets, end of period (in thousands) $80,810 $71,726 $60,214 $59,927 $58,692 $ 60,071
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 0.91%** 1.00% 0.97% 0.95% 0.96% 1.10%**
Net investment income 3.20%** 1.65% 2.05% 1.59% 1.17% 2.27%**
==============================================================================================================================
(a) Class Y shares were first publicly offered on December 31, 2008.
(b) Not annualized.
* 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.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 31
Notes to Financial Statements | 2/28/14 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Global Equity Fund, formerly Pioneer Global Select Equity Fund (the
Fund), is one of five portfolios comprising Pioneer Series Trust V, a Delaware
statutory trust. The Fund is registered under the Investment Company Act of 1940
as a diversified, open-end management investment company. The Fund commenced
operations on December 15, 2005. The Fund's investment objective is to seek
long-term capital growth.
The Fund offers four classes of shares designated as Class A, Class B, Class C
and Class Y shares. Class Y shares were first publicly offered on December 31,
2008. Effective as of the close of business on December 31, 2009, Class B shares
are no longer offered to new or existing shareholders, except that dividends
and/or capital gain distributions may continue to be reinvested in Class B
shares, and shareholders may exchange their Class B shares for Class B shares of
other Pioneer funds, as permitted by existing exchange privileges. Each class of
shares represents an interest in the same portfolio of investments of the Fund
and has identical rights (based on relative net asset values) to assets and
liquidation proceeds. Share classes can bear different rates of class-specific
fees and expenses such as transfer agent and distribution fees. Differences in
class-specific fees and expenses will result in differences in net investment
income and, therefore, the payment of different dividends from net investment
income earned by each class. The Amended and Restated Declaration of Trust of
the Fund gives the Board the flexibility to specify either per-share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per-share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares. Class B shares
convert to Class A shares approximately eight years after the date of purchase.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets 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.
32 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are valued
using the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices. Short-term fixed income securities
with remaining maturities of sixty days or less generally are valued at
amortized cost. Shares of money market mutual funds are valued at such
funds' net asset value.
The Fund invests primarily in securities of non-U.S. issuers. The principal
exchanges and markets for such securities have closing times prior to the
close of the NYSE. However, the value of these securities may be influenced
by changes in global markets occurring after the closing times of the local
exchanges and markets up to the time the Fund determines its net asset
value. Consequently, the Board of Trustees of the Fund has determined that
daily adjustments to the valuation of securities of non-U.S. issuers by
utilizing an independent pricing service that supplies an appropriate fair
value factor is appropriate for the Fund.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Fund's investment advisor, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committe of the Board of Trustees. Inputs used
when applying fair value methods to value a security may include credit
ratings, the financial condition of the company, current market conditions
and comparable securities.
The Fund may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset
value. Examples of a significant event might include political or economic
news, corporate restructurings, natural disasters, terrorist activity or
trading halts. Thus, the valuation of the Fund's securities may differ
significantly from exchange prices and such differences could be material.
PIM's fair valuation team the Fund's investment advisor, is responsible for
monitoring
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 33
developments that may impact fair valued securities and for discussing and
assessing fair values on an ongoing basis, and at least quarterly, with the
Valuation Committee of the Board of Trustees.
At February 24, 2013, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services).
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis. Dividend and
interest income are reported net of unrecoverable foreign taxes withheld at
the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of February 28, 2014, the Fund did not accrue any interest or penalties
with respect to uncertain tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years are subject to examination by
Federal and State tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the years ended August 31, 2013 was as follows:
34 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
----------------------------------------------------------------------------
2013
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $2,291,138
----------------------------------------------------------------------------
Total $2,291,138
============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2013:
----------------------------------------------------------------------------
2013
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 2,395,494
Capital loss carryforward (46,692,095)
Net unrealized appreciation 12,704,683
----------------------------------------------------------------------------
Total $ (31,591,918)
============================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales, the
mark-to-market of foreign currency contracts and futures contracts and the
tax basis adjustments on partnerships.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $5,223 in underwriting commissions on the sale of Class A shares
during the six months ended February 28, 2014.
D. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates. Net realized gains and losses on foreign currency
transactions, if any, represent, among other things, the net realized gains
and losses on foreign currency contracts, disposition of foreign currencies
and the difference between the amount of income accrued and the U.S. dollars
actually received. Further, the effects of changes in foreign currency
exchange rates on investments are not segregated in the Statement of
Operations from the effects of changes in the market prices of those
securities but are included with the net realized and unrealized gain or
loss on investments.
E. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
are recorded
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 35
in the Fund's financial statements. The Fund records realized gains and
losses at the time a contract is offset by entry into a closing transaction
or extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 6).
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively (see Note 4). Class Y shares do not pay distribution fees. All
expenses and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class B, Class C and Class Y shares
can reflect different transfer agent and distribution expense rates.
G. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
H. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency rates or
to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash
36 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
deposited with the broker as collateral at February 28,2014 was $189,000.
Subsequent payments for futures contracts ("variation margin") are paid or
received by the Fund, depending on the daily fluctuation in the value of the
contracts, and are recorded by the Fund as unrealized appreciation or
depreciation. When the contract is closed, the Fund realizes a gain or loss
equal to the difference between the opening and closing value of the
contract as well as any fluctuation in foreign currency exchange rates where
applicable. The use of futures contracts involves, to varying degrees,
elements of market, interest rate, currency exchange rate and counterparty
risks, which may exceed the amounts recognized by the Fund. Changes in value
of the contracts may not directly correlate to the changes in value of the
underlying securities. These risks may decrease the effectiveness of the
Fund's hedging strategies and potentially result in a loss. The average
value of contracts open during the six months ended February 28, 2014 was
$2,271,276.
At February 28, 2014, open futures contracts were as follows:
----------------------------------------------------------------------------
Number of
Contracts Settlement Unrealized
Type Long/(Short) Month Value Depreciation
----------------------------------------------------------------------------
F/C Japanese Yen
Currency Future (60) 3/14 $(7,368,750) $(51,375)
----------------------------------------------------------------------------
Total $(51,375)
============================================================================
I. Purchased Options
The Fund may purchase call and put options in order to attempt to hedge
against changes in the value of portfolio securities or to seek to increase
total return. Purchased call and put options entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time. Upon the purchase of a call or put option, the
premium paid by the Fund is included in the Statement of Assets and
Liabilities as an investment. All premiums are marked-to-market daily, and
any unrealized appreciation or depreciation are recorded in the Fund's
financial statements. As the purchaser of an index option, the Fund has the
right to receive a cash payment equal to any depreciation in the value of
the index below the strike price of the option (in the case of a put) or
equal to any appreciation in the value of the index over the strike price of
the option (in the case of a call) as of the valuation date of the option.
Premiums paid for purchased calls and put options which have expired are
treated as realized losses on investments in the Statement of Operations.
Upon the exercise or closing of a purchased put option, the premium is
offset against the proceeds on the sale of the underlying security or
financial instrument in order to determine the realized gain or loss on
investments. Upon the exercise or closing of a
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 37
purchased call option, the premium is added to the cost of the security or
financial instrument. The risk associated with purchasing options is limited
to the premium originally paid. The average value of contracts open during
the six months ended February 28, 2014 was $20,079. There were no purchased
options outstanding at February 28, 2014.
J. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price, upon
the exercise of the option. When the Fund writes an option, an amount equal
to the premium received by the Fund is recorded as a liability and is
subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the
underlying security in determining whether the Fund has realized a gain or
loss. The Fund as writer of an option bears the market risk of an
unfavorable change in the price of the security underlying the written
option.
The average value of contracts open during the six months ended February 28,
2014 was $111,930. Written call option contracts outstanding at period end
are listed at the end of the Fund's schedule of investments.
The Fund held 1 written call option contract that was open at February 28,
2014. If the put options were exercised at February 28, 2014, the maximum
amount the Fund would have been required to pay was $11,200.
Transactions in written call options for the six months ended February 28,
2014 are summarized as follows:
----------------------------------------------------------------------------
Number of Contracts Premium Received
----------------------------------------------------------------------------
Options open at beginning of period -- $ --
Options opened (1,120) (444,918)
Options exercised 560 123,533
Options closed 480 293,454
Options expired 70 14,961
----------------------------------------------------------------------------
Options open at end of period (10) $ (12,970)
============================================================================
38 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate equal to
0.75% of the Fund's average daily net assets up to $500 million, 0.70% of the
next $500 million of the Fund's average daily net assets and 0.65% of the Fund's
average daily net assets over $1 billion. For the six months ended February 28,
2014, the effective management fee (excluding waivers and/or assumption of
expenses) was equivalent to 0.75% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund to
the extent required to reduce Fund expenses to 1.30%, 2.20%, 2.20%, and 0.80% of
the average daily net assets attributable to Class A, Class B, Class C and Class
Y shares, respectively. Fees waived and expenses reimbursed during the six
months ended February 28, 2014 are reflected on the Statement of Operations.
These expense limitations are in effect through January 1, 2015. There can be no
assurance that PIM will extend the expense limitation agreement for a class of
shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$12,154 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 28, 2014.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the six months ended February 28, 2014, such out-of-pocket expenses by class
of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $33,778
Class B 2,231
Class C 4,915
Class Y 497
--------------------------------------------------------------------------------
Total: $41,421
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $23,698 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2014.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 39
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B and Class C
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the
average daily net assets attributable to Class B and Class C shares. The fee for
Class B and Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class C
shares. Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $1,557 in distribution fees payable to PFD at February 28, 2014.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Class B shares that are redeemed within five years
of purchase are subject to a CDSC at declining rates beginning at 4.00%, based
on the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within 12 months of purchase are subject to a CDSC of 1.00%,
based on the lower of cost or market value of shares being redeemed. Shares
purchased as part of an exchange remain subject to any CDSC that applied to the
original purchase of those shares. There is no CDSC for Class Y shares. Proceeds
from the CDSCs are paid to PFD. For the six months ended February 28, 2014,
CDSCs in the amount of $2,835 were paid to PFD.
5. Expense Offsets Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS, which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended February 28, 2014, the Fund's
expenses were not reduced under such arrangements.
6. Forward Foreign Currency Contracts
At February 28, 2014, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the six months ended February 28, 2014 was
$9,802,800.
40 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
Open forward foreign currency contracts at February 28, 2014 were as follows:
---------------------------------------------------------------------------------------------
Net
Net In Unrealized
Contracts Exchange Settlement Appreciation
Currency to Deliver For Date Value (Depreciation)
---------------------------------------------------------------------------------------------
CHF (Swiss Franc) (79,524) $ (90,472) 3/5/14 $ (90,518) $ (46)
GBP (British
Pound Sterling) (95,315) (159,748) 3/5/14 (159,734) 14
SGD (Singapore Dollar) (11,826) (9,328) 3/5/14 (9,329) (1)
---------------------------------------------------------------------------------------------
Total $ (33)
=============================================================================================
7. Assets and Liabilities Offsetting
Financial instruments subject to an enforceable master netting agreement have
been offset on the Statement of Assets and Liabilities. The following charts
show gross assets and liabilities of the Fund as of February 28, 2014.
------------------------------------------------------------------------------------------
Assets:
Net
Gross Amounts Gross Amounts
Amounts of Assets Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement -----------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 14 $ (14) $ -- $ -- $ -- $ --
Futures contracts $ -- $ -- $ -- $ -- $ -- $ --
Written options $ -- $ -- $ -- $ -- $ -- $ --
------------------------------------------------------------------------------------------
$ 14 $ (14) $ -- $ -- $ -- $ --
==========================================================================================
------------------------------------------------------------------------------------------
Liabilities:
Net
Gross Amounts Gross Amounts
Amounts of Liabilities Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement -----------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Pledged Amount
------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 47 $ 14 $ 33 $ -- $ -- $ 33
Futures contracts $51,375 $ -- $51,375 $ -- $ -- $51,375
Written options $11,200 $ -- $11,200 $ -- $ -- $11,200
------------------------------------------------------------------------------------------
$62,622 $ (14) $62,608 $ -- $ -- $62,608
==========================================================================================
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 41
8. Additional Disclosures about Derivative Instruments and Hedging Activities
Values of derivative instruments as of February 28, 2014 were as follows:
-------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as
Hedging Instruments Asset Derivatives 2014 Liabilities Derivatives 2014
Under Accounting ------------------------ -----------------------------
Standards Codification Balance Sheet Balance Sheet
(ASC) 815 Location Value Location Value
-------------------------------------------------------------------------------------------
Forward Foreign Currency Net unrealized Net unrealized
Contracts* appreciation on depreciation on
forward foreign forward foreign
currency contracts $ -- currency contracts $ 33
Written Options Net unrealized Net unrealized
appreciation on depreciation on
written options $1,770 written options $ --
Futures Contracts* Net unrealized Net unrealized
appreciation on depreciation on
futures contracts $ -- futures contracts $51,375
-------------------------------------------------------------------------------------------
Total $1,770 $51,408
-------------------------------------------------------------------------------------------
* Reflects the net unrealized appreciation on futures contracts (see Note 1H).
42 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
The effect of derivative instruments on the Statement of Operations for the six
months ended February 28, 2014 was as follows:
---------------------------------------------------------------------------------------------
Change in
Derivatives Not Unrealized
Accounted for as Realized Gain Appreciation or
Hedging Instruments or (Loss) on (Depreciation)
Under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
---------------------------------------------------------------------------------------------
Forward Foreign Net realized gain (loss) on
Currency Contracts forward foreign currency
contracts and other assets
and liabilities denominated
in foreign currencies $903,019
Forward Foreign Change in unrealized appreciation
Currency Contracts (depreciation) on forward foreign
currency contracts and other
assets and liabilities denominated
in foreign currencies $(115,340)
Written Options Net realized gain (loss) on
written options $230,596
Written Options Change in unrealized
appreciation (depreciation) on
written options $ 1,770
Futures Contracts Net realized gain (loss) on
futures contracts $(92,076)
Futures Contracts Change in net unrealized
appreciation (depreciation) on
futures contracts $ (53,708)
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 43
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Global Equity Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in March 2013 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
In July 2013, the Trustees approved the format of the contract review materials
and submitted their formal request to PIM to furnish information necessary to
evaluate the terms of the investment advisory agreement. The contract review
materials were provided to the Trustees in July 2013 and September 2013. After
reviewing and discussing the materials, the Trustees submitted a request for
additional information to PIM, and materials were provided in response to this
request. Meetings of the Independent Trustees of the Fund were held in July,
September, and November, 2013 to review and discuss the contract review
materials. In addition, the Trustees took into account the information related
to the Fund provided to the Trustees at regularly scheduled meetings.
At a meeting held on November 12, 2013, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Fund's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile. The Trustees did not identify any single
factor as the controlling factor in determining to approve the renewal of the
agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for the
Fund and its research process. The Trustees considered the resources of PIM and
the personnel of PIM who provide investment management services to the Fund.
They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. The Trustees considered the non-investment resources and
personnel of PIM involved in
44 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
PIM's services to the Fund, including PIM's compliance and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by PIM's senior management to the Pioneer fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
The Trustees review the Fund's performance on a regular basis, based on analysis
and data prepared by PIM for this purpose and discuss performance issues with
PIM on an ongoing basis. For purposes of their contract renewal deliberations,
the Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
performance of its peer group of funds as classified by Morningstar, Inc.
(Morningstar), an independent provider of investment company data, and with the
performance of the Fund's benchmark index. The Trustees considered that the
Fund's annualized total return was in the second quintile of its Morningstar
category for the one year period ended June 30, 2013, in the fourth quintile of
its Morningstar category for the three year period ended June 30, 2013, and in
the fifth quintile of its Morningstar category for the five year period ended
June 30, 2013. The Trustees noted the discussions held throughout the year
regarding the Fund's performance and confirmed that those discussions were
factored into the Trustees' deliberations concerning the renewal of the advisory
agreement. They indicated that they were satisfied with the discussions with PIM
with respect to the Fund's performance.
Management Fee and Expenses
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.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 45
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2013 was in the second quintile relative to the management fees
paid by other funds in its Morningstar peer group 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 for
the twelve months ended June 30, 2013 was in the second quintile relative to its
Morningstar peer group and in the first quintile relative to its Strategic
Insight peer group, in each case for the comparable period. The Trustees also
considered that the expense ratio of the Fund's Class Y shares for the twelve
months ended June 30, 2013 was in the first quintile relative to both its
Morningstar peer group and its Strategic Insight peer group, in each case for
the comparable period. The Trustees noted that PIM was waiving fees and/or
reimbursing expenses in order to limit the ordinary operating expenses of the
Fund.
The Trustees reviewed management fees charged by PIM and PIM's affiliate,
Pioneer Institutional Asset Management, Inc. (together with PIM, "Pioneer") to
institutional and other clients, including publicly offered European funds
sponsored by affiliates of Pioneer, unaffiliated U.S. registered investment
companies (in a sub-advisory capacity), and unaffiliated foreign and domestic
separate accounts. The Trustees also considered PIM's costs in providing
services to the Fund and Pioneer'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 Pioneer's
client accounts, the Trustees took into account the respective demands,
resources and complexity associated with the Fund and client accounts. The
Trustees noted that, in some instances, the fee rates for those clients were
lower than the management fee for the Fund and considered that, under the
investment advisory agreement with the Fund, PIM performs additional services
for the Fund that it does not provide to those other clients or services that
are broader in scope, including oversight of the Fund's other service providers
and activities related to compliance and the extensive regulatory and tax
regimes to which the Fund is subject. The Trustees also considered the different
entrepreneurial risks associated with PIM's management of the Fund and Pioneer's
management of the other client accounts. The Trustees concluded that the
management fee payable by the Fund to PIM was reasonable in relation to the
nature and quality of the services provided by PIM.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's
46 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
profit margin in connection with the overall operation of the Fund. They further
reviewed the financial results realized by PIM and its affiliates from non-fund
businesses. The Trustees considered PIM'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 PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM'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 funds and fund shareholders. The Trustees
noted the breakpoints in the management fee schedule. The Trustees recognize
that economies of scale are difficult to identify and quantify, rarely
identifiable on a fund-by-fund basis, and that, among other factors that may be
relevant, are the following: fee levels, expense subsidization, investment by
PIM in research and analytical capabilities and PIM'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 particularly, for example during the recent difficult
periods for financial markets, as the level of services was maintained
notwithstanding a significant decline in PIM's fee revenues from the Fund.
Accordingly, the Trustees concluded that economies of scale, if any, were being
appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. The Trustees
considered the intangible benefits to PIM by virtue of its relationship with the
Fund and the other Pioneer funds. The Trustees concluded that the receipt of
these benefits was reasonable in the context of the overall relationship between
PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 47
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman Daniel K. Kingsbury, President*
David R. Bock Mark D. Goodwin, Executive
Benjamin M. Friedman Vice President
Margaret B.W. Graham Mark E. Bradley, Treasurer**
Daniel K. Kingsbury Christopher J. Kelley, Secretary
Marc O. Mayer
Marguerite A. Piret
Kenneth J. Taubes
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Chief Executive Officer of the Fund.
** Chief Financial and Accounting Officer of the Fund.
48 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
This page for your notes.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 49
This page for your notes.
50 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
This page for your notes.
Pioneer Global Equity Fund | Semiannual Report | 2/28/14 51
This page for your notes.
52 Pioneer Global Equity Fund | Semiannual Report | 2/28/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 19129-08-0414
Pioneer High Income
Municipal Fund
--------------------------------------------------------------------------------
Semiannual Report | February 28, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PIMAX
Class C HICMX
Class Y HIMYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 23
Notes to Financial Statements 30
Approval of Investment Advisory Agreement 37
Trustees, Officers and Service Providers 42
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 1
President's Letter
Dear Shareowner,
A few months into 2014, we still foresee U.S. economic growth matching or
exceeding 2013 levels, despite some weaker economic data releases early in the
year driven in large part by harsh winter weather across much of the continental
U.S. While unemployment remains high, employment has been rising steadily.
Consumer incomes, savings, wealth, and debt-servicing capacity have been solid
buttresses for the recovering housing and auto industries. Industrial activity
is growing only moderately, but current corporate profits are generally solid
and balance sheets appear able to support needed capital spending and dividend*
payouts. Tax hikes, spending restraint and a better economy have meaningfully
cut the federal budget deficit. A modestly improving European economy and
continuing economic improvement in Japan appear likely to result in improving
global growth in 2014, further supporting the U.S. economy. In addition, we feel
that continuing slack in labor markets and capacity utilization offer the
potential for continuing growth without bottlenecks and rising inflation.
After observing the strengthening economic trends, the Federal Reserve (the Fed)
has begun scaling back its QE (quantitative easing) program, but short-term
interest rates remain near zero, and while Fed Chair Janet Yellen has hinted
that rates may be raised sooner than anticipated, market expectations are still
focused on no earlier than 2015.
There are certainly risks and uncertainties still facing the global economy as
2014 moves along. The European economy, while improving, remains weak, the
Japanese economy faces a tax hike this spring, and a number of emerging market
countries are experiencing difficulties. There are also geopolitical worries
abroad, such as Russia's aggressive move against Ukraine, and more potential
political fights at home, especially during a mid-term election year. While most
of the widely recognized risks we have outlined may already be "priced into" the
market, we believe investors should continue to expect market volatility.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
* Dividends are not guaranteed.
2 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in global equity and bond markets, using in-depth research to identify
undervalued individual securities, and using thoughtful risk management to
construct portfolios which seek to balance potential risks and rewards in an
ever-changing world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 3
Portfolio Management Discussion | 2/28/14
Tax-exempt municipal bonds -- led by higher-yielding municipal issues -- began
recovering their value during the first two months of 2014 after remaining out
of favor with investors during the final four months of 2013. The change in
market sentiment occurred as investors were drawn by the low prices and
competitive yields offered by municipal bonds. In the following interview, David
Eurkus and Jonathan Chirunga discuss the factors that influenced the performance
of Pioneer High Income Municipal Fund over the six-month period ended February
28, 2014. Mr. Eurkus, a senior vice president and a portfolio manager at
Pioneer, manages the Fund along with Jonathan Chirunga, a vice president and a
portfolio manager at Pioneer.
Q How did the Fund perform during the six-month period ended February 28,
2014?
A Pioneer High Income Municipal Fund's Class A shares returned 2.13% at net
asset value during the six-month period ended February 28, 2014, while the
Fund's benchmark, the Barclays High Yield Municipal Bond Index (the
Barclays Index), returned 8.39%. During the same period, the average return
of the 180 mutual funds in Morningstar's High Yield Municipal Funds
category was 7.07%, and the average return of the 137 mutual funds in
Lipper's High Yield Municipal Debt Funds category was 7.21%.
Q How would you describe the investment environment for high-yield municipal
bonds during the six-month period ended February 28, 2014?
A It was a period during which investor attitudes about municipal bonds
changed dramatically, moving from deeply negative to highly positive. The
six-month period began with municipal bonds, including lower-rated
securities with higher yields, performing poorly, as they had since the
spring of 2013 when a succession of events undermined their standing among
fixed-income investors. Some of the events occurred prior to the start of
the six-month period, but their effects were felt for several months.
First, in May 2013, then-Federal Reserve (Fed) Chairman Ben Bernanke
suggested that the Fed might begin tapering back the pace of its
accommodative quantitative easing (QE) program, which had been an important
part of the Fed's monetary policies aimed at keeping interest rates low and
stimulating economic growth. The prospect that the Fed might begin tapering
QE affected bond investments in general and had a collateral effect on the
municipal market. The municipal market then took a second hit when the City
of Detroit filed for bankruptcy protection during the mid-summer of 2013.
The tarnishing effects of the Detroit announcement were compounded later in
the summer when media coverage of the debt
4 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
problems plaguing the Commonwealth of Puerto Rico stirred more concerns
among investors. As the concerns grew widespread, each of the three major
bond rating agencies lowered its credit ratings of Puerto Rican bonds. The
cumulative effect of the negative news stories was to undermine the
reputation of municipal bonds in general, especially lower-rated,
higher-yielding municipals that carried more credit risk than higher-rated
securities. In that environment, municipal bond prices continued to fall
and their yields rose during the first four months of the six-month period,
which encompassed the final four months of 2013. During that period,
higher-yielding municipals underperformed investment-grade municipals.
The sell-off in municipal bonds continued into the first week of 2014,
before market sentiment abruptly changed and municipal bond prices started
snapping back, a rally led by high-yield municipal debt. The primary factor
in the market rally was the growing recognition among investors that
municipal bond prices had fallen to historically low levels and thus the
asset class was offering extremely attractive prices and yields as compared
with other types of fixed-income investments, including taxable bonds.
Non-traditional investors, including property-and-casualty insurers and
other financial institutions, began buying up municipal bonds. The
increased buying activity came as financial institutions published their
calendars of expected new bond issuance, indicating that the number of new
municipal bonds issued in 2014 could be as much as 20% lower than the
amount issued during 2013. The imbalance caused by increasing demand and
decreasing supply led to a brisk rally in municipal bond prices during
January and February 2014, with high-yield municipals benefiting the most.
The rally was sustained by a supportive economic backdrop featuring slow
growth and relatively tame inflation numbers. As investors moved back into
the high-yield municipal market, even the now-downgraded bonds issued by
the Commonwealth of Puerto Rico saw new demand.
Q What were the main reasons for the Fund's underperformance of the benchmark
Barclays Index during the six-month period ended February 28, 2014?
A A significant factor in the Fund's underperformance relative to the
Barclays Index during the period was the somewhat high exposure in the
portfolio to bonds backed by continuing care retirement community (CCRC)
projects, as CCRCs were one of the weaker-performing segments of the
high-yield municipal market. We reduced the Fund's holdings of CCRCs,
significantly, by the end of the six-month period. Nevertheless, the Fund's
earlier, somewhat heavy exposure to CCRCs proved to be a drag on
benchmark-relative results. In addition, the portfolio owned some other
disappointing investments which weighed on the Fund's relative results.
Holdings that underperformed during the period included industrial
development revenue bonds used to finance the Galvstar steel processing
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 5
plant in Erie County, N.Y. All in all during the period, we continued our
transition of the portfolio, moving to increase the diversification* of the
Fund's investments while reducing allocations to other areas of the market
in order to avoid overexposures to any one sector.
While the Fund underperformed the overall market during the period, there
were some bright spots, as we were able to add some investments that
quickly exerted positive effects on the Fund's results. Investments where
performance was notably strong during the period included a group of
securities backed by charter schools located throughout the nation,
including those in California, Pennsylvania, Texas and Colorado.
It is worth noting that the Fund had no direct investments in either City
of Detroit or Commonwealth of Puerto Rico bonds during the six-month
period.
Q What is your investment outlook?
A We have a positive outlook for municipal securities, and especially high-
yield municipals. The supply of new municipal securities has shrunk from
the levels of the previous two years, while market demand is rising.
Traditional investors attracted by the tax advantages of municipal
securities are being joined by non-traditional investors who see attractive
values in the tax-exempt market, especially relative to the taxable bond
market. Even though the Fed has recently hinted that interest rates may
rise sooner than originally expected, the timetable is uncertain and
current rates remain historically low, making the higher yields offered by
municipal bonds appear compelling at the present time.
The favorable supply-demand dynamics in the municipal market are providing
a good backdrop for our efforts to restructure the Fund's portfolio, adding
more diversification while focusing on investments in securities with
strong investment fundamentals. Our security analysts continue to
scrutinize each portfolio holding while also looking for opportunities to
add more variety. We intend, for example, to reduce further the Fund's
exposure to CCRCs from the current 35% level to between roughly 20% and 25%
of net assets. As we do this, our credit analysts will continue searching
for newer potential investments backed by projects supported by reliable
revenue sources.
We expect to continue to focus the Fund's investments principally on
project revenue bonds, which are securities backed by the revenue streams
produced by specific public projects. Over the longer term, we believe
project-specific investments should continue to be more reliable than other
municipal bonds backed by general municipal revenues (known as general
obligation bonds). Among the sectors of the municipal market in which we
* Diversification does not assure a profit nor protect against loss in a
declining market.
6 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
are looking for opportunities are bonds backed by revenues generated by
charter schools, transportation projects, tobacco-settlement lawsuits, and
industrial development projects.
Please refer to the Schedule of Investments on pages 15-22 for a full listing of
Fund securities.
Investments in high-yield or lower rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed income
securities in the fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The portfolio may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
The Fund may invest in inverse floating-rate obligations (a type of derivative
instrument), which may have price volatility and involve leverage risk.
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.
Past performance is not a guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These opinions should not
be relied upon for any other purposes.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 7
Portfolio Summary | 2/28/14
Portfolio Quality
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
AA 1.8%
BBB 2.9%
BB 7.2%
B 8.9%
CCC 0.2%
Not Rated 74.7%
Cash Equivalent 4.3%
Bond ratings are ordered highest to lowest in portfolio. Based on Standard &
Poor's measures, AAA (highest possible rating) through BBB are considered
investment grade; BB or lower ratings are considered non-investment grade. Cash
equivalents and some bonds may not be rated.
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Health 42.2%
Pollution Control Revenue 19.4%
Education 14.3%
Various Revenues 10.6%
Reserves 4.3%
Transportation 4.2%
Special Revenues 3.5%
Housing 0.9%
Insured 0.5%
General Obligation 0.1%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)*
1. Sanger Industrial Development Corp., 8.0%, 7/1/38 5.49%
-----------------------------------------------------------------------------------------
2. City of Philippi West Virginia, 7.75%, 10/1/44 5.35
-----------------------------------------------------------------------------------------
3. Jefferson County Industrial Development Corp. Texas, 8.25%, 7/1/32 5.28
-----------------------------------------------------------------------------------------
4. West Virginia Hospital Finance Authority, 9.125%, 10/1/41 3.21
-----------------------------------------------------------------------------------------
5. Capital Trust Agency, Inc., 7.75%, 1/1/41 2.64
-----------------------------------------------------------------------------------------
6. Public Finance Authority, 7.0%, 10/1/42 2.13
-----------------------------------------------------------------------------------------
7. Pennsylvania Economic Development Finance Authority, 8.0%, 5/1/29 2.12
-----------------------------------------------------------------------------------------
8. E-470 Public Highway Authority, 9/1/40 2.02
-----------------------------------------------------------------------------------------
9. Tarrant County Cultural Education Facilities Finance Corp., 8.125%, 11/15/44 2.00
-----------------------------------------------------------------------------------------
10. Public Finance Authority, 8.375%, 6/1/20 1.96
-----------------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
8 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
Prices and Distributions | 2/28/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/14 8/31/13
--------------------------------------------------------------------------------
A $7.11 $7.19
--------------------------------------------------------------------------------
C $7.11 $7.19
--------------------------------------------------------------------------------
Y $7.02 $7.10
--------------------------------------------------------------------------------
Distributions per Share: 9/1/13-2/28/14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2310 $-- $--
--------------------------------------------------------------------------------
C $0.2037 $-- $--
--------------------------------------------------------------------------------
Y $0.2329 $-- $--
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Barclays High Yield Municipal Bond Index is an unmanaged measure of the
performance of the high-yield municipal bond market. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. It is not possible to invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts shown on pages 10-12.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 9
Performance Update | 2/28/14 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer High Income Municipal Fund at
public offering price during the periods shown, compared to that of the Barclays
High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) 1.84% 1.21%
5 Years 9.77 8.78
1 Year -7.00 -11.15
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2013)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.88%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays High Yield Municipal
Municipal Fund Bond Index
10/31/2006 $ 9,950 $10,000
2/28/2007 $ 9,909 $10,270
2/29/2008 $ 8,948 $ 9,569
2/28/2009 $ 6,836 $ 7,805
2/28/2010 $ 9,095 $ 9,878
2/28/2011 $ 9,397 $10,337
2/29/2012 $ 9,947 $11,800
2/28/2013 $11,716 $13,498
2/28/2014 $10,896 $13,282
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
Performance Update | 2/28/14 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer High Income Municipal Fund during
the periods shown, compared to that of the Barclays High Yield Municipal Bond
Index.
Average Annual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) 1.00% 1.00%
5 Years 8.94 8.94
1 Year -7.82 -7.82
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2013)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.63%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays High Yield Municipal
Bond Index Municipal Fund
10/31/2006 $10,000 $10,000
2/28/2007 $10,329 $10,270
2/29/2008 $ 9,219 $ 9,569
2/28/2009 $ 6,990 $ 7,805
2/28/2010 $ 9,217 $ 9,878
2/28/2011 $ 9,471 $10,337
2/29/2012 $ 9,951 $11,800
2/28/2013 $11,635 $13,498
2/28/2014 $10,725 $13,282
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 11
Performance Update | 2/28/14 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer High Income Municipal Fund during
the periods shown, compared to that of the Barclays High Yield Municipal Bond
Index.
Average Annual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) 1.78% 1.78%
5 Years 9.83 9.83
1 Year -6.88 -6.88
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2013)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.72%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer High Income Barclays High Yield Municipal
Municipal Fund Bond Index
10/31/2006 $5,000,000 $5,000,000
2/28/2007 $5,187,054 $5,135,163
2/29/2008 $4,644,235 $4,784,639
2/28/2009 $3,552,200 $3,902,577
2/28/2010 $4,701,409 $4,939,057
2/28/2011 $4,880,716 $5,168,354
2/29/2012 $5,170,926 $5,900,058
2/28/2013 $6,097,347 $6,748,911
2/28/2014 $5,677,689 $6,641,049
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on actual returns from September 1, 2013, through February 28, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 9/1/13
--------------------------------------------------------------------------------
Ending Account Value $1,021.30 $1,017.40 $1,021.90
(after expenses) on 2/28/14
--------------------------------------------------------------------------------
Expenses Paid $ 4.36 $ 8.20 $ 3.56
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.87%,
1.64% and 0.71% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period multiplied by
181/365 (to reflect the one-half year period).
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 13
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2013, through February 28, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 9/1/13
--------------------------------------------------------------------------------
Ending Account Value $1,020.48 $1,016.22 $1,021.27
(after expenses) on 2/28/14
--------------------------------------------------------------------------------
Expenses Paid $ 4.36 $ 8.20 $ 3.56
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.87%,
1.64% and 0.71% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period multiplied by
181/365 (to reflect the one-half year period).
14 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
Schedule of Investments | 2/28/14 (unaudited)
---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
---------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 94.3%
Arizona -- 1.1%
5,335,000 NR/NR San Luis Facility Development Corp.,
8.375%, 5/1/27 $ 4,388,624
750,000 NR/NR The Industrial Development Authority of
the County of Pima, 8.5%, 7/1/39 818,445
------------
$ 5,207,069
---------------------------------------------------------------------------------------------------------
California -- 7.1%
4,000,000 NR/NR California County Tobacco Securitization
Agency, 5.0%, 6/1/47 $ 2,988,880
6,655,000 NR/B2 California County Tobacco Securitization
Agency, 5.25%, 6/1/45 5,211,863
3,720,000 B-/NR California County Tobacco Securitization
Agency, 5.25%, 6/1/45 2,894,011
6,300,000 BB/NR California Municipal Finance Authority,
6.0%, 7/1/42 6,189,939
3,230,000 BB/NR California School Finance Authority,
7.125%, 10/1/48 3,287,429
3,000,000 BB+/NR California School Finance Authority,
7.375%, 10/1/43 3,129,900
1,560,000 NR/NR California Statewide Communities
Development Authority, 6.125%, 11/1/33 1,572,854
4,030,000 NR/NR California Statewide Communities
Development Authority, 6.375%, 11/1/43 4,061,353
2,000,000 NR/NR California Statewide Communities
Development Authority, 7.5%, 6/1/42 2,109,380
315,559 NR/NR California Statewide Communities
Development Authority, 9.0%, 12/1/38 (c) 2,739
4,000,000 AA-/Aa3 Pittsburg Unified School District,
9/1/38 (d) 760,720
3,925,000 AA-/Aa3 Pittsburg Unified School District,
9/1/39 (d) 690,054
2,500,000 AA-/Aa3 Pittsburg Unified School District,
9/1/41 (d) 493,700
1,925,000 AA-/Aa3 Pittsburg Unified School District,
9/1/42 (d) 357,684
------------
$ 33,750,506
---------------------------------------------------------------------------------------------------------
Colorado -- 5.0%
2,000,000 B+/NR Colorado Educational & Cultural
Facilities Authority, 8.0%, 9/1/43 $ 1,995,480
5,000,000 B+/NR Colorado Educational & Cultural
Facilities Authority, 8.125%, 9/1/48 5,001,550
38,000,000 BBB/Baa2 E-470 Public Highway Authority,
9/1/40 (d) 9,048,180
1,500,000 BBB/Baa2 E-470 Public Highway Authority,
9/1/41 (d) 334,740
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 15
Schedule of Investments | 2/28/14 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
---------------------------------------------------------------------------------------------------------
Colorado -- (continued)
8,000,000 NR/NR Kremmling Memorial Hospital
District, 7.125%, 12/1/45 $ 7,137,760
------------
$ 23,517,710
---------------------------------------------------------------------------------------------------------
Florida -- 7.8%
5,000,000 NR/NR Alachua County Health Facilities
Authority, 8.125%, 11/15/46 $ 5,482,150
5,000,000 NR/NR Capital Trust Agency, Inc., 7.375%,
1/1/48 4,420,200
11,000,000 NR/B1 Capital Trust Agency, Inc., 7.75%, 1/1/41 11,811,030
3,740,000 NR/NR County of Lake Florida, 7.125%,
11/1/42 3,424,082
1,820,000 NR/NR County of Liberty Florida, 8.25%,
7/1/28 (c) 1,368,877
1,450,000 NR/NR County of Palm Beach Florida,
6/1/16 (144A) (d) 1,450,000
2,290,000 NR/NR County of Palm Beach Florida,
2.0%, 6/1/16 2,292,817
4,000,000 BB/NR Lee County Industrial Development
Authority Florida, 5.375%, 6/15/37 3,793,680
3,000,000 BB/NR Lee County Industrial Development
Authority Florida, 5.75%, 6/15/42 2,966,640
------------
$ 37,009,476
---------------------------------------------------------------------------------------------------------
Hawaii -- 0.2%
1,000,000 NR/NR State of Hawaii Department of Budget
& Finance, 9.0%, 11/15/44 $ 1,124,160
---------------------------------------------------------------------------------------------------------
Illinois -- 8.0%
526,959 NR/NR Illinois Finance Authority, 11/15/52 (d) $ 110,187
526,959 NR/NR Illinois Finance Authority, 11/15/52 (d) 169,038
2,634,795 NR/NR Illinois Finance Authority, 11/15/52 (d) 98,963
7,000,000 NR/NR Illinois Finance Authority, 5.625%,
2/15/37 6,217,330
485,000 NR/NR Illinois Finance Authority, 7.0%, 11/15/17 469,509
710,000 NR/NR Illinois Finance Authority, 7.0%, 11/15/27 640,164
950,000 NR/NR Illinois Finance Authority, 7.0%, 11/15/27 870,856
5,085,000 NR/NR Illinois Finance Authority, 7.625%,
5/15/25 5,422,949
1,750,000 NR/NR Illinois Finance Authority, 8.0%, 5/15/30 962,675
3,295,000 NR/NR Illinois Finance Authority, 8.0%, 5/15/40 3,463,276
2,250,000 BB/NR Illinois Finance Authority, 8.125%,
5/15/40 1,237,725
11,135,000 BB/NR Illinois Finance Authority, 8.25%,
5/15/45 6,125,364
4,213,653 4.00 NR/NR Illinois Finance Authority, Floating
Rate Note, 11/15/52 2,131,940
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
---------------------------------------------------------------------------------------------------------
Illinois -- (continued)
2,795,000 NR/NR Southwestern Illinois Development
Authority, 5.625%, 11/1/26 $ 2,202,572
865,000 NR/NR Southwestern Illinois Development
Authority, 6.2%, 6/1/17 886,063
7,020,000 NR/NR Southwestern Illinois Development
Authority, 6.625%, 6/1/37 6,749,941
------------
$ 37,758,552
---------------------------------------------------------------------------------------------------------
Indiana -- 3.8%
1,550,000 NR/NR City of Carmel Indiana, 7.0%, 11/15/27 $ 1,613,798
1,750,000 NR/NR City of Carmel Indiana, 7.0%, 11/15/32 1,792,682
2,000,000 NR/NR City of Carmel Indiana, 7.125%,
11/15/42 2,040,220
2,000,000 NR/NR City of Carmel Indiana, 7.125%,
11/15/47 2,034,560
3,500,000 NR/NR City of Crown Point Indiana, 8.0%,
11/15/39 3,823,330
2,340,000 NR/NR Vigo County Hospital Authority, 5.8%,
9/1/47 (144A) 2,198,477
4,000,000 BB/NR Vigo County Hospital Authority, 8.0%,
9/1/41 4,457,440
------------
$ 17,960,507
---------------------------------------------------------------------------------------------------------
Iowa -- 1.5%
1,315,000 NR/NR Iowa Finance Authority, 11/15/21 (d) $ 759,281
1,445,000 NR/NR Iowa Finance Authority, 11/15/27 (d) 834,343
4,365,000 BB/NR Iowa Finance Authority, 11/15/37 (d) 2,520,351
3,580,000 B+/B2 Iowa Tobacco Settlement Authority,
5.625%, 6/1/46 2,852,258
------------
$ 6,966,233
---------------------------------------------------------------------------------------------------------
Louisiana -- 1.0%
5,800,000 NR/NR Tensas Parish Law Enforcement District,
10/1/26 (c)(d) $ 4,654,152
---------------------------------------------------------------------------------------------------------
Maryland -- 0.8%
4,115,000 NR/NR County of Howard Maryland,
5.25%, 4/1/27 $ 3,778,105
---------------------------------------------------------------------------------------------------------
Massachusetts -- 2.7%
1,116,746 NR/NR Massachusetts Development Finance
Agency, 11/15/56 (d) $ 5,238
6,000,000 AA/Aa2 Massachusetts Development Finance
Agency, 5.0%, 7/1/44 6,381,720
224,523 NR/NR Massachusetts Development Finance
Agency, 5.5%, 11/15/46 160,112
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 17
Schedule of Investments | 2/28/14 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
---------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
1,235,770 NR/NR Massachusetts Development Finance
Agency, 6.25%, 11/15/26 $ 1,102,962
2,224,798 NR/NR Massachusetts Development Finance
Agency, 6.25%, 11/15/39 1,827,338
751,584 NR/NR Massachusetts Development Finance
Agency, 6.25%, 11/15/46 601,132
2,000,000 NR/NR Massachusetts Development Finance
Agency, 6.75%, 10/15/37 2,041,580
870,000 NR/NR Massachusetts Development Finance
Agency, 7.625%, 10/15/37 940,148
3,500,000 NR/NR Massachusetts Health & Educational
Facilities Authority, 1/15/38 (c)(d) 9,835
------------
$ 13,070,065
---------------------------------------------------------------------------------------------------------
Michigan -- 5.9%
5,485,000 BBB-/NR Flint International Academy, 5.75%,
10/1/37 $ 5,239,601
4,560,000 NR/NR Michigan Public Educational Facilities
Authority, 5.875%, 6/1/37 4,235,465
260,000 BB/NR Michigan Public Educational Facilities
Authority, 7.25%, 4/1/20 277,108
2,020,000 BB/NR Michigan Public Educational Facilities
Authority, 8.0%, 4/1/40 2,130,858
1,750,000 NR/NR Michigan State Hospital Finance
Authority, 5.5%, 11/15/35 1,553,282
3,175,000 NR/NR Michigan Strategic Fund, 7.25%, 1/1/39 3,268,662
4,000,000 6.62 NR/NR Michigan Strategic Fund, Floating
Rate Note, 11/1/41 3,981,920
7,135,000 6.75 A/A2 Michigan Strategic Fund, Floating
Rate Note, 3/1/40 7,435,598
------------
$ 28,122,494
---------------------------------------------------------------------------------------------------------
Minnesota -- 1.5%
5,000,000 NR/NR Bloomington Port Authority, 9.0%,
12/1/35 $ 5,496,700
1,500,000 NR/NR City of Brooklyn Park Minnesota,
9.25%, 3/1/39 1,653,990
------------
$ 7,150,690
---------------------------------------------------------------------------------------------------------
Missouri -- 2.8%
5,920,000 BB/NR Community Memorial Hospital District,
6.68%, 12/1/34 $ 5,840,790
4,500,000 NR/NR Kirkwood Industrial Development
Authority, 8.25%, 5/15/45 5,026,770
2,125,000 NR/NR St Louis County Industrial Development
Authority, 6.125%, 8/15/42 2,011,036
500,000 NR/Ca St. Louis Industrial Development
Authority, 7.2%, 12/15/28 (c) 154,135
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
---------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
Missouri -- (continued)
1,365,000 NR/Ca St. Louis Industrial Development
Authority, 7.25%, 12/15/35 (c) $ 420,789
------------
$ 13,453,520
---------------------------------------------------------------------------------------------------------
New Jersey -- 1.3%
6,000,000 NR/NR New Jersey Economic Development
Authority, 6.625%, 1/1/37 $ 6,028,620
---------------------------------------------------------------------------------------------------------
New York -- 2.0%
8,000,000 NR/NR The Erie County Industrial Development
Agency, 10/1/30 (c)(d) $ 3,835,680
10,000,000 NR/NR The Erie County Industrial Development
Agency, 10/1/30 (c)(d) 4,794,600
1,795,000 NR/NR The Erie County Industrial Development
Agency, 10/1/30 (c)(d) 860,631
------------
$ 9,490,911
---------------------------------------------------------------------------------------------------------
Pennsylvania -- 2.7%
2,005,000 B-/Caa3 Pennsylvania Economic Development
Financing Authority, 7.5%, 5/1/20 $ 2,215,204
8,445,000 B-/Caa3 Pennsylvania Economic Development
Financing Authority, 8.0%, 5/1/29 9,475,797
1,000,000 BB-/NR Philadelphia Authority for Industrial
Development, 6.5%, 6/15/33 (144A) 1,005,510
------------
$ 12,696,511
---------------------------------------------------------------------------------------------------------
Rhode Island -- 0.8%
2,065,000 NR/NR Central Falls Detention Facility Corp.,
7.25%, 7/15/35 $ 1,541,295
2,000,000 NR/NR Rhode Island Health & Educational
Building Corp., 8.375%, 1/1/46 2,222,840
------------
$ 3,764,135
---------------------------------------------------------------------------------------------------------
Texas -- 19.0%
10,125,000 5.40 CC/C Brazos River Authority, Floating Rate
Note, 10/1/29 $ 354,274
234,442 NR/NR Gulf Coast Industrial Development
Authority, 12/1/36 (c)(d) 2,108
345,000 NR/NR HFDC of Central Texas, Inc., 6.375%,
11/15/19 (c) 234,531
1,600,000 NR/NR HFDC of Central Texas, Inc., 7.75%,
11/15/29 (c) 1,040,000
6,825,000 NR/NR HFDC of Central Texas, Inc., 7.75%,
11/15/44 (c) 4,436,250
24,000,000 NR/NR Jefferson County Industrial Development
Corp., Texas, 8.25%, 7/1/32 23,640,000
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 19
Schedule of Investments | 2/28/14 (unaudited) (continued)
---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
---------------------------------------------------------------------------------------------------------
Texas -- (continued)
1,455,000 BB/NR Kinney County Public Facilities Corp.,
7.0%, 11/1/25 $ 1,375,542
3,820,000 NR/NR Red River Health Facilities Development
Corp., 12.0%, 12/14/17 3,826,418
2,000,000 NR/NR Red River Health Facilities Development
Corp., 8.0%, 11/15/46 2,145,360
24,000,000 NR/NR Sanger Industrial Development Corp.,
8.0%, 7/1/38 24,579,837
985,000 BB/Ba Tarrant County Cultural Education
Facilities Finance Corp., 7.5%, 11/15/16 949,914
1,775,000 BB/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.0%, 11/15/28 1,617,984
2,250,000 NR/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.0%, 11/15/29 2,194,740
120,000 NR/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.0%, 11/15/34 129,043
5,000,000 NR/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.125%,
11/15/39 4,789,250
8,350,000 NR/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.125%,
11/15/44 8,960,302
5,000,000 NR/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.25%, 11/15/44 4,401,150
5,000,000 NR/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.25%, 11/15/44 4,821,200
1,000,000 NR/NR Texas Midwest Public Facility Corp.,
10/1/30 (c)(d) 420,890
------------
$ 89,918,793
---------------------------------------------------------------------------------------------------------
Utah -- 2.0%
1,510,000 NR/NR Utah State Charter School Finance
Authority, 7.25%, 5/15/21 $ 1,610,385
1,985,000 NR/NR Utah State Charter School Finance
Authority, 8.125%, 5/15/31 2,115,831
5,145,000 NR/NR Utah State Charter School Finance
Authority, 8.5%, 5/15/41 5,566,376
------------
$ 9,292,592
---------------------------------------------------------------------------------------------------------
Washington -- 3.5%
6,500,000 NR/NR Washington State Housing Finance
Commission, 5.625%, 1/1/27 $ 6,058,975
9,160,000 NR/NR Washington State Housing Finance
Commission, 5.625%, 1/1/38 8,004,558
3,000,000 NR/NR Washington State Housing Finance
Commission, 6.75%, 10/1/47 2,754,210
------------
$ 16,817,743
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
---------------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
---------------------------------------------------------------------------------------------------------
West Virginia -- 8.1%
25,000,000 NR/NR City of Philippi West Virginia,
7.75%, 10/1/44 $ 23,957,750
11,885,000 NR/NR West Virginia Hospital Finance
Authority, 9.125%, 10/1/41 14,390,596
------------
$ 38,348,346
---------------------------------------------------------------------------------------------------------
Wisconsin -- 5.7%
10,182,500 NR/NR Public Finance Authority, 7.0%, 10/1/42 $ 9,534,791
5,325,000 NR/NR Public Finance Authority, 8.25%, 6/1/46 5,939,612
8,750,000 NR/NR Public Finance Authority, 8.375%, 6/1/20 8,770,825
2,480,000 NR/NR Public Finance Authority, 8.375%, 6/1/37 2,824,149
------------
$ 27,069,377
---------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $461,876,892) $446,950,267
---------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED
DEBT OBLIGATION - 0.0%+
1,175,000 Non-Profit Preferred Funding Trust I,
Floating Rate Note, 9/15/37 (144A) $ 249,382
---------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED
DEBT OBLIGATION
(Cost $1,172,429) $ 249,382
---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN
SECURITIES -- 94.3%
(Cost $463,049,321) (a)(e) $447,199,649
---------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 5.7% $ 26,999,194
---------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $474,198,843
=========================================================================================================
+ Amount rounds to less than 0.1%.
NR Not rated by either S&P or Moody's.
(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
February 28, 2014, the value of these securities amounted to
$4,903,369 or 1.0% of total net assets.
(a) At February 28, 2014, the net unrealized depreciation on investments
based on cost for federal income tax purposes of $462,544,048 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 26,951,038
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (42,295,437)
------------
Net unrealized depreciation $(15,344,399)
============
(b) Debt obligation with a variable interest rate. Rate shown is rate at
end of period.
(c) Security is in default and is non-income producing.
(d) Security issued with a zero coupon. Income is earned through accretion
of discount.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 21
Schedule of Investments | 2/28/14 (unaudited) (continued)
(e) The concentration of investments by type of obligation/market sector
is as follows:
Revenue Bonds:
Health 42.2%
Pollution Control Revenue 19.4%
Education 14.3%
Various Revenues 10.6%
Reserves 4.3%
Transportation 4.2%
Special Revenues 3.5%
Housing 0.9%
Insured 0.5%
General Obligation 0.1%
------------------------------------------------------------------------------
100.0%
==============================================================================
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 28, 2014 aggregated $47,542,665 and $211,770,552,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes to
Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services) as Level 3. See
Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of February 28, 2014, in
valuing the Fund's investments:
---------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------
Municipal Bonds $-- $446,950,267 $-- $446,950,267
Municipal Collateralized
Debt Obligation -- 249,382 -- 249,382
---------------------------------------------------------------------------------------
Total $-- $447,199,649 $-- $447,199,649
=======================================================================================
During the six months ended February 28, 2014, there were no transfers between
Levels 1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
Statement of Assets and Liabilities | 2/28/14 (unaudited)
ASSETS:
Investment in securities, at value (cost $463,049,321) $447,199,649
Cash 24,864,345
Receivables --
Investment securities sold 2,662,547
Fund shares sold 844,957
Interest 9,102,798
Other 44,698
-------------------------------------------------------------------------------------------------------------
Total assets $484,718,994
=============================================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 7,185,857
Fund shares repurchased 2,638,975
Dividends 486,487
Due to affiliates 105,964
Accrued expenses 102,868
-------------------------------------------------------------------------------------------------------------
Total liabilities $ 10,520,151
=============================================================================================================
NET ASSETS:
Paid-in capital $536,085,142
Undistributed net investment income 8,337,152
Accumulated net realized loss on investments (54,373,779)
Net unrealized depreciation on investments (15,849,672)
-------------------------------------------------------------------------------------------------------------
Total net assets $474,198,843
=============================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $228,632,194/32,150,771 shares) $ 7.11
Class C (based on $156,220,119/21,967,010 shares) $ 7.11
Class Y (based on $89,346,530/12,729,483 shares) $ 7.02
MAXIMUM OFFERING PRICE:
Class A ($7.11 (divided by) 95.5%) $ 7.45
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 23
Statement of Operations (unaudited)
For the Six Months Ended 2/28/14
INVESTMENT INCOME:
Interest $17,931,156
-------------------------------------------------------------------------------------------------------------
Total investment income $ 17,931,156
-------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,278,947
Transfer agent fees
Class A 16,734
Class C 5,061
Class Y 1,167
Distribution fees
Class A 295,568
Class C 865,971
Shareholder communications expense 163,858
Administrative reimbursement 86,400
Custodian fees 7,792
Registration fees 32,855
Professional fees 25,275
Printing expense 7,826
Fees and expenses of nonaffiliated Trustees 7,016
Miscellaneous 29,358
-------------------------------------------------------------------------------------------------------------
Total expenses $ 2,823,828
-------------------------------------------------------------------------------------------------------------
Net investment income $ 15,107,328
-------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND CLASS ACTIONS:
Net realized gain on:
Investments $ 1,444,742
Class actions 2,580 $ 1,447,322
-------------------------------------------------------------------------------------------------------------
Change in net unrealized depreciation on investments $ (6,584,004)
-------------------------------------------------------------------------------------------------------------
Net loss on investments $ (5,136,682)
-------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 9,970,646
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/14 Year Ended
(unaudited) 8/31/13
------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 15,107,328 $ 48,312,643
Net realized gain on investments and class actions 1,447,322 15,135,141
Change in net unrealized appreciation (depreciation)
on investments (6,584,004) (86,344,407)
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 9,970,646 $ (22,896,623)
------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.23 and $0.44 per share, respectively) $ (7,661,491) $ (19,349,016)
Class C ($0.20 and $0.38 per share, respectively) (4,949,235) (12,640,678)
Class Y ($0.23 and $0.45 per share, respectively) (3,405,399) (10,604,265)
------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (16,016,125) $ (42,593,959)
------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 86,261,181 $ 259,833,657
Reinvestment of distributions 12,703,411 32,589,669
Cost of shares repurchased (183,830,808) (476,972,507)
------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (84,866,216) $ (184,549,181)
------------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (90,911,695) $ (250,039,763)
NET ASSETS:
Beginning of period 565,110,538 815,150,301
------------------------------------------------------------------------------------------------------------
End of period $ 474,198,843 $ 565,110,538
============================================================================================================
Undistributed net investment income $ 8,337,152 $ 9,245,949
============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 25
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------------------------
'14 Shares '14 Amount
(unaudited) (unaudited) '13 Shares '13 Amount
------------------------------------------------------------------------------------------------------------
Class A
Shares sold 6,990,664 $ 49,869,804 14,993,517 $ 120,667,855
Reinvestment of distributions 935,001 6,671,432 1,982,918 15,747,383
Less shares repurchased (10,583,923) (75,381,153) (29,176,427) (231,678,201)
------------------------------------------------------------------------------------------------------------
Net decrease (2,658,258) $ (18,839,917) (12,199,992) $ (95,262,963)
============================================================================================================
Class C
Shares sold 1,427,417 $ 10,188,447 5,733,047 $ 46,286,122
Reinvestment of distributions 542,199 3,870,395 1,208,628 9,597,190
Less shares repurchased (7,168,024) (51,061,002) (13,216,214) (103,481,378)
------------------------------------------------------------------------------------------------------------
Net decrease (5,198,408) $ (37,002,160) (6,274,539) $ (47,598,066)
============================================================================================================
Class Y
Shares sold 3,715,746 $ 26,202,930 11,686,311 $ 92,879,680
Reinvestment of distributions 306,869 2,161,584 921,213 7,245,096
Less shares repurchased (8,157,952) (57,388,653) (18,272,467) (141,812,928)
------------------------------------------------------------------------------------------------------------
Net decrease (4,135,337) $ (29,024,139) (5,664,943) $ (41,688,152)
============================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
Financial Highlights
----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/14 Ended Ended Ended Ended Ended
(unaudited) 8/31/13 8/31/12 8/31/11 8/31/10 8/31/09
----------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 7.19 $ 7.94 $ 7.58 $ 7.97 $ 6.84 $ 8.70
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.23 $ 0.53 $ 0.47 $ 0.53 $ 0.55 $ 0.56
Net realized and unrealized gain (loss) on investments (0.08) (0.84) 0.34 (0.40) 1.12 (1.86)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ 0.15 $ (0.31) $ 0.81 $ 0.13 $ 1.67 $ (1.30)
----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.23) $ (0.44) $ (0.45) $ (0.52) $ (0.55) $ (0.56)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.08) $ (0.75) $ 0.36 $ (0.39) $ 1.12 $ (1.86)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.11 $ 7.19 $ 7.94 $ 7.58 $ 7.97 $ 6.84
==================================================================================================================================
Total return* 2.13% (4.26)% 11.24% 1.83% 25.15% (14.41)%
Ratio of net expenses to average net assets 0.87%** 0.88% 0.89% 0.88% 0.90% 0.90%
Ratio of net investment income to average net assets 6.12%** 6.26% 6.25% 6.98% 7.08% 8.32%
Portfolio turnover rate 19%** 17% 54% 65% 15% 50%
Net assets, end of period (in thousands) $228,632 $250,163 $373,039 $378,883 $311,324 $38,312
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 0.87%** 0.88% 0.89% 0.88% 0.95% 1.28%
Net investment income 6.12%** 6.26% 6.25% 6.98% 7.03% 7.95%
==================================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 27
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/14 Ended Ended Ended Ended Ended
(unaudited) 8/31/13 8/31/12 8/31/11 8/31/10 8/31/09
----------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 7.19 $ 7.94 $ 7.58 $ 7.96 $ 6.83 $ 8.68
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.22 $ 0.46 $ 0.41 $ 0.47 $ 0.49 $ 0.50
Net realized and unrealized gain (loss) on investments (0.10) (0.83) 0.35 (0.39) 1.12 (1.85)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ 0.12 $ (0.37) $ 0.76 $ 0.08 $ 1.61 $ (1.35)
----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.20) $ (0.38) $ (0.40) $ (0.46) $ (0.48) $ (0.50)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.08) $ (0.75) $ 0.36 $ (0.38) $ 1.13 $ (1.85)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.11 $ 7.19 $ 7.94 $ 7.58 $ 7.96 $ 6.83
==================================================================================================================================
Total return* 1.74% (4.98)% 10.42% 1.19% 24.11% (15.17)%
Ratio of net expenses to average net assets 1.64%** 1.63% 1.63% 1.63% 1.69% 1.80%
Ratio of net investment income to average net assets 5.36%** 5.53% 5.50% 6.24% 6.31% 7.44%
Portfolio turnover rate 19%** 17% 54% 65% 15% 50%
Net assets, end of period (in thousands) $156,220 $195,290 $265,448 $244,848 $184,068 $22,319
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 1.64%** 1.63% 1.63% 1.63% 1.69% 1.98%
Net investment income 5.36%** 5.53% 5.50% 6.24% 6.31% 7.26%
==================================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/14 Ended Ended Ended Ended Ended
(unaudited) 8/31/13 8/31/12 8/31/11 8/31/10 8/31/09
----------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 7.10 $ 7.84 $ 7.49 $ 7.88 $ 6.80 $ 8.63
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.26 $ 0.53 $ 0.48 $ 0.53 $ 0.57 $ 0.55
Net realized and unrealized gain (loss) on investments (0.11) (0.82) 0.33 (0.39) 1.08 (1.83)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.15 $ (0.29) $ 0.81 $ 0.14 $ 1.65 $ (1.28)
----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.23) $ (0.45) $ (0.46) $ (0.53) $ (0.56) $ (0.55)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.08) $ (0.74) $ 0.35 $ (0.39) $ 1.09 $ (1.83)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.02 $ 7.10 $ 7.84 $ 7.49 $ 7.88 $ 6.80
==================================================================================================================================
Total return* 2.19% (4.05)% 11.43% 2.02% 24.73% (14.30)%
Ratio of net expenses to average net assets 0.71%** 0.72% 0.67% 0.67% 0.67% 0.99%
Ratio of net investment income to average net assets 6.27%** 6.40% 6.46% 7.21% 7.32% 8.23%
Portfolio turnover rate 19%** 17% 54% 65% 15% 50%
Net assets, end of period (in thousands) $89,347 $119,658 $176,664 $198,089 $77,757 $ 2,317
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 0.71%** 0.72% 0.67% 0.67% 0.67% 1.04%
Net investment income 6.27%** 6.40% 6.46% 7.21% 7.32% 8.18%
==================================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 29
Notes to Financial Statements | 2/28/14 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer High Income Municipal Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as an open-end management
investment company. The Fund is non-diversified. The investment objective of the
Fund is to maximize total return through a combination of income that is exempt
from regular federal income tax and capital appreciation.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses, and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements which are consistent with
those policies generally accepted in the investment company industry:
30 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Fixed
income securities with remaining maturity of more than sixty days are
valued at prices supplied by independent pricing services, which consider
such factors as market prices, market events, quotations from one or more
brokers, Treasury spreads, yields, maturities and ratings. Valuations may
be supplemented by dealers and other sources, as required. Short-term fixed
income securities with remaining maturities of sixty days or less generally
are valued at amortized cost.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities.
The Fund may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset
value. Examples of a significant event might include political or economic
news, corporate restructurings, natural disasters, terrorist activity or
trading halts. Thus, the valuation of the Fund's securities may differ
significantly from exchange prices and such differences could be material.
PIM's fair valuation team is responsible for monitoring developments that
may impact fair valued securities and for discussing and assessing fair
values on an ongoing basis, and at least quarterly, with the Valuation
Committee of the Board of Trustees.
At February 28, 2014, there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services).
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis with
a corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 31
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of February 28, 2014, the Fund did not accrue any interest or penalties
with respect to uncertain tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years remain subject to examination by
Federal and State tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the year ended August 31, 2013 was as follows:
---------------------------------------------------------------------------
2013
---------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $40,383,212
Ordinary income 2,210,747
---------------------------------------------------------------------------
Total $42,593,959
===========================================================================
The following shows the components of distributable earnings on a federal
income tax-basis at August 31, 2013:
---------------------------------------------------------------------------
2013
---------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 9,472,465
Capital loss carryforward (55,821,101)
Dividend payable (731,789)
Net unrealized depreciation (8,760,395)
---------------------------------------------------------------------------
Total $ (55,840,820)
===========================================================================
The difference between book-basis and tax-basis net unrealized depreciation
is attributable to adjustments related to interest on defaulted bonds, the
tax treatment of premium and amortization and tax-basis adjustments on
partnerships.
32 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned $23,205 in underwriting commissions on the sale of
Class A shares during the six months ended February 28, 2014.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day. During the six months ended February 28, 2014, the Fund
recognized gains of $2,580 in settlement of class action lawsuits from one
company, as reflected on the Statement of Operations.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
The Fund declares, as daily dividends, substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, and Class Y shares can
reflect different transfer agent and distribution expense rates.
E. Risks
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's prospectus
contains unaudited information regarding the Fund's principal risks. Please
refer to that document when considering the Fund's principal risks.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate equal to
0.50% of the Fund's average daily net assets up to $500 million; 0.475% of the
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 33
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 six months ended February 28,
2014, the effective management fee (excluding waivers and/or assumption of
expenses) was equivalent to 0.50% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses (excluding
taxes, commissions, interest and extraordinary expenses) of the Fund to the
extent required to reduce Fund expenses to 0.90% and 1.80% of the average daily
net assets attributable to Class A shares and Class C shares, respectively.
Class Y shares do not have an expense limitation. These expense limitations are
in effect through January 1, 2015. There can be no assurance that PIM will
extend the expense limitation agreement for a class of shares beyond the date
referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$18,422 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 28, 2014.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the six months ended February 28, 2014, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 41,658
Class C 52,007
Class Y 70,193
--------------------------------------------------------------------------------
Total $163,858
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $75,844 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2014.
34 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $11,698 in distribution fees payable to
PFD at February 28, 2014.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to PFD. For the
six months ended February 28, 2014, CDSCs in the amount of $36,083 were paid to
PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended February 28, 2014, the Fund's
expenses were not reduced under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until February 12, 2014 was in the amount of $215
million. As of February 12, 2014, the facility is in the amount of $240 million.
Under such facility, depending on the type of loan, interest on borrowings is
payable at the London Interbank Offered Rate (LIBOR) plus 0.90% (0.85% as of
February 12, 2014) on an annualized basis, or the Alternate Base Rate, which is
the greater
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 35
of (a) the facility's administrative agent's daily announced prime rate on the
borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing date and (c)
2% plus the overnight Euro dollar rate on the borrowing date. The Funds pay an
annual commitment fee to participate in the credit facility. The commitment fee
is allocated among participating Funds based on an allocation schedule set forth
in the credit agreement. For the six months ended February 28, 2014, the Fund
had no borrowings under the credit agreement.
36 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer High Income Municipal Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in March 2013 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
In July 2013, the Trustees approved the format of the contract review materials
and submitted their formal request to PIM to furnish information necessary to
evaluate the terms of the investment advisory agreement. The contract review
materials were provided to the Trustees in July 2013 and September 2013. After
reviewing and discussing the materials, the Trustees submitted a request for
additional information to PIM, and materials were provided in response to this
request. Meetings of the Independent Trustees of the Fund were held in July,
September, and November, 2013 to review and discuss the contract review
materials. In addition, the Trustees took into account the information related
to the Fund provided to the Trustees at regularly scheduled meetings.
At a meeting held on November 12, 2013, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Fund's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile. The Trustees did not identify any single
factor as the controlling factor in determining to approve the renewal of the
agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for the
Fund and its research process. The Trustees considered the resources of PIM and
the personnel of PIM who provide investment
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 37
management services to the Fund. They also reviewed the amount of non-Fund
assets managed by the portfolio managers of the Fund. The Trustees considered
the non-investment resources and personnel of PIM involved in PIM's services to
the Fund, including PIM's compliance and legal resources and personnel. The
Trustees noted the substantial attention and high priority given by PIM's senior
management to the Pioneer fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
The Trustees review the Fund's performance on a regular basis, based on analysis
and data prepared by PIM for this purpose and discuss performance issues with
PIM on an ongoing basis. For purposes of their contract renewal deliberations,
the Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
performance of its peer group of funds as classified by Morningstar, Inc.
(Morningstar), an independent provider of investment company data, and with the
performance of the Fund's benchmark index. The Trustees considered that the
Fund's annualized total return was in the first quintile of its Morningstar
category for the one year period ended June 30, 2013, in the second quintile of
its Morningstar category for the three year period ended June 30, 2013, and in
the fourth quintile of its Morningstar category for the five year period ended
June 30, 2013. The Trustees also considered that the Fund's yield (for the
twelve months ended June 30, 2013) exceeded the yield of the Fund's benchmark
index for the same period. The Trustees noted the discussions held throughout
the year regarding the Fund's performance and confirmed that those discussions
were factored into the Trustees' deliberations concerning the renewal of the
advisory agreement. The Trustees indicated that they were satisfied with the
discussions with PIM with respect to the Fund's performance.
38 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
Management Fee and Expenses
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.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2013 was in the third quintile relative to the management fees
paid by other funds in its Morningstar peer group 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 Fund's expense ratio for the twelve months
ended June 30, 2013 was in the fifth quintile relative to its Morningstar peer
group and in the fourth quintile relative to its Strategic Insight peer group,
in each case for the comparable period. The Trustees noted that the Fund's
expense ratio was approximately seven basis points higher than the median
expense ratio of the Fund's Morningstar peer group, and approximately three
basis points higher than the median expense ratio of the Fund's Strategic
Insight peer group. The Trustees considered the impact of transfer agency,
sub-transfer agency, and other non-management fee expenses on the expense ratios
of the Fund, and noted the impact of expenses relating to small accounts and
omnibus accounts on transfer and sub-transfer agency expenses generally. The
Trustees noted that they separately review the Fund's transfer agency,
sub-transfer agency and intermediary arrangements.
The Trustees reviewed management fees charged by PIM and PIM's affiliate,
Pioneer Institutional Asset Management, Inc. (together with PIM, "Pioneer") to
institutional and other clients, including publicly offered European funds
sponsored by affiliates of Pioneer, unaffiliated U.S. registered investment
companies (in a sub-advisory capacity), and unaffiliated foreign and domestic
separate accounts. The Trustees also considered PIM's costs in providing
services to the Fund and Pioneer'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 Pioneer's
client accounts, the Trustees took into account the respective demands,
resources and complexity associated with the Fund and 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,
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 39
under the investment advisory agreement with the Fund, PIM performs additional
services for the Fund that it does not provide to those other clients or
services that are broader in scope, including oversight of the Fund's other
service providers and activities related to compliance and the extensive
regulatory and tax regimes to which the Fund is subject. The Trustees also
considered the different entrepreneurial risks associated with PIM's management
of the Fund and Pioneer's management of the other client accounts. The Trustees
concluded that the management fee payable by the Fund to PIM was reasonable in
relation to the nature and quality of the services provided by PIM.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM'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 PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM'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 funds and fund shareholders. The Trustees
noted the breakpoints in the management fee schedule. The Trustees recognize
that economies of scale are difficult to identify and quantify, rarely
identifiable on a fund-by-fund basis, and that, among other factors that may be
relevant, are the following: fee levels, expense subsidization, investment by
PIM in research and analytical capabilities and PIM'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 particularly, for example during the recent difficult
periods for financial markets, as the level of services was maintained
notwithstanding a significant decline in PIM's fee revenues from the Fund.
Accordingly, the Trustees concluded that economies of scale, if any, were being
appropriately shared with the Fund.
40 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. The Trustees
considered the intangible benefits to PIM by virtue of its relationship with the
Fund and the other Pioneer funds. The Trustees concluded that the receipt of
these benefits was reasonable in the context of the overall relationship between
PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 41
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman Daniel K. Kingsbury, President*
David R. Bock Mark D. Goodwin, Executive
Benjamin M. Friedman Vice President
Margaret B.W. Graham Mark E. Bradley, Treasurer**
Daniel K. Kingsbury Christopher J. Kelley, Secretary
Marc O. Mayer
Marguerite A. Piret
Kenneth J. Taubes
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at http://www.sec.gov.
* Chief Executive Officer of the Fund.
** Chief Financial and Accounting Officer of the Fund.
42 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
This page for your notes.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14 43
This page for your notes.
44 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 20563-07-0414
Pioneer Absolute Return
Bond Fund
--------------------------------------------------------------------------------
Semiannual Report | February 28, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A ABRDX*
Class C ARCBX*
Class Y ARBYX*
*Class A, C, and Y shares were first publicly offered on
January 31, 2014.
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 22
Notes to Financial Statements 29
Approval of Investment Advisory Agreement 46
Trustees, Officers and Service Providers 48
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 1
President's Letter
Dear Shareowner,
A few months into 2014, we still foresee U.S. economic growth matching or
exceeding 2013 levels, despite some weaker economic data releases early in the
year driven in large part by harsh winter weather across much of the continental
U.S. While unemployment remains high, employment has been rising steadily.
Consumer incomes, savings, wealth, and debt-servicing capacity have been solid
buttresses for the recovering housing and auto industries. Industrial activity
is growing only moderately, but current corporate profits are generally solid
and balance sheets appear able to support needed capital spending and dividend*
payouts. Tax hikes, spending restraint and a better economy have meaningfully
cut the federal budget deficit. A modestly improving European economy and
continuing economic improvement in Japan appear likely to result in improving
global growth in 2014, further supporting the U.S. economy. In addition, we feel
that continuing slack in labor markets and capacity utilization offer the
potential for continuing growth without bottlenecks and rising inflation.
After observing the strengthening economic trends, the Federal Reserve (the Fed)
has begun scaling back its QE (quantitative easing) program, but short-term
interest rates remain near zero, and while Fed Chair Janet Yellen has hinted
that rates may be raised sooner than anticipated, market expectations are still
focused on no earlier than 2015.
There are certainly risks and uncertainties still facing the global economy as
2014 moves along. The European economy, while improving, remains weak, the
Japanese economy faces a tax hike this spring, and a number of emerging market
countries are experiencing difficulties. There are also geopolitical worries
abroad, such as Russia's aggressive move against Ukraine, and more potential
political fights at home, especially during a mid-term election year. While most
of the widely recognized risks we have outlined may already be "priced into" the
market, we believe investors should continue to expect market volatility.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
* Dividends are not guaranteed.
2 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in global equity and bond markets, using in-depth research to identify
undervalued individual securities, and using thoughtful risk management to
construct portfolios which seek to balance potential risks and rewards in an
ever-changing world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 3
Portfolio Management Discussion | 2/28/14
In the following interview, portfolio managers Tanguy Le Saout and Cosimo
Marasciulo discuss the factors that influenced Pioneer Absolute Return Bond
Fund's performance for the abbreviated semiannual reporting period beginning
with the Fund's inception on January 30, 2014, and ending February 28, 2014, as
well as their investment approach in managing the Fund. Mr. Le Saout, Head of
European Fixed Income and a portfolio manager based in Pioneer's Dublin office,
and Mr. Marasciulo, Head of Government Bonds and a portfolio manager at Pioneer,
also based in Dublin, are responsible for the day-to-day management of the Fund.
Q How did the Fund perform during the abbreviated semiannual reporting period
ended February 28, 2014?
A Pioneer Absolute Return Bond Fund's Class A shares returned -0.70% at net
asset value during the period between January 30, 2014, and February 28,
2014. During the one-month period ended February 28, 2014, the Fund's
benchmark, the Bank of America Merrill Lynch (BofA ML) 3-Month U.S.
Treasury-Bill Index, returned 0.00%.
Q Can you provide an overview of the Fund's investment approach?
A Certainly. The big picture is that we aim to have the Fund's annualized
return exceed that of three-month Treasury bills on a rolling three-year
annualized basis, while targeting portfolio volatility that is in a range
of up to 4%. To achieve that goal, we seek to provide positive absolute
Fund returns over most trailing 12-month periods, regardless of market
conditions.
Obviously, if we are going to be successful in achieving our objectives,
the Fund's returns cannot be overly dependent on the price performance of
one or more fixed-income categories. Therefore, in seeking positive Fund
returns regardless of market conditions, we divide the portfolio into two
distinct parts.
The core of the Fund's portfolio, representing around 70% of assets, is
invested in three-month Treasury bills. The other 30% of assets is invested
in a range of strategies, each of which is designed to provide the Fund
with alpha, or excess return. (Alpha is the additional return produced from
a portfolio manager above that of a passive market index.) Each strategy is
focused on a different segment of the fixed-income market. Importantly,
each strategy seeks to benefit from both positive and negative markets.
This means the Fund is positioned in some asset categories within the broad
bond market through long exposures, while also positioned against other
4 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
asset categories via short exposures. Each alpha-oriented strategy is
managed independently by a specialist in that particular segment of the
market who is responsible for implementing his or her individual views.
This, in our view, provides the Fund with an added level of
diversification* across different asset classes when compared with
investment vehicles where asset allocation and security selection are more
closely tied together.
Importantly, we closely track the portfolio risks we have assumed across
all of the alpha-related strategies, and operate within an overall "risk
budget" for the portfolio based on our objective of avoiding negative Fund
returns over a 12-month period.
Q Can you review the principal portfolio investment strategies you
implemented during the Fund's abbreviated semiannual reporting period ended
February 28, 2014?
A In addition to the portfolio's core position in three-month Treasuries, we
have implemented a number of different positions across the alpha portion
of the portfolio. Among the more significant alpha-oriented positions in
the Fund is a short exposure to European credit spreads. This positioning
is based on our view that spreads (yield differences) between lower- and
higher-quality credits within the region have narrowed past the point of
fair value. As a result, the Fund is in effect positioned for higher yield
differentials in the relatively near future to compensate for the risks
associated with lower-quality issues. Looking at the U.S. market, our
assessment is that bond prices do not fully reflect the likely extent of
interest-rate increases as the U.S. Federal Reserve (the Fed) continues to
gradually draw down its very accommodative monetary policies. In
particular, we expect shorter-term rates to be affected in a meaningful way
in 2014 once markets digest the outlook for a higher Federal funds rate. We
have used a variety of instruments to implement a portfolio exposure that
we believe will benefit the Fund's performance under such a scenario. At
the same time, we expect the U.S. dollar to benefit from rising U.S.
interest rates, and the Fund, consequently, has a long U.S. dollar position
versus the Japanese yen.
As the Fund began investment operations at the end of January, in looking
at European sovereign-debt levels, we viewed the yield level on Italy's
10-year maturity bond as insufficient and reflective of undue levels of
optimism concerning the recovery of the Italian economy. As a result, we
took a short position in Italian 10-year bonds, expecting their yields to
rise. However, that position began to work against the Fund's returns and
we eliminated it before the end of the period. Finally, we implemented a
Fund position designed to benefit from higher inflation in Japan, and that
has
* Diversification does not assure a profit nor protect against loss in a
declining market.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 5
worked out well so far. The positioning was based in large part on our view
that the efforts by Japan's government to inflate the country's economy
would meet with some success.
Q What is your assessment of the current macroeconomic climate and the
opportunities it may present?
A We expect volatility to be a feature of the investment backdrop in 2014, as
it becomes even clearer that the Fed is no longer prepared to step in and
backstop conditions each time there is a run of disappointing economic data
releases. The Fed's bond purchases are currently on a track to end in
November 2014, and Fed Chair Janet Yellen recently suggested that an
increase in the Federal funds rate could follow six months after the
"tapering" of bond purchases is finished. In our view, the markets have not
fully digested the implications this policy shift may have on U.S. interest
rates, or for the U.S. dollar as rates increase.
Our outlook for fixed-income markets in Europe is more favorable. Despite
its common currency, Europe continues to deal with a two-tier economy.
Rather than hiking interest rates, there is a real question as to whether
or not the European Central Bank will feel compelled to step up with more
policy support for the weaker euro zone economies. These are just some of
the macroeconomic factors we will monitor closely as we seek to inform the
various positions implemented within the alpha-oriented portion of the
Fund's portfolio.
Please refer to the Schedule of Investments on pages 15-21 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
Pioneer Absolute Return Bond invests in derivatives, such as options, futures,
inverse floating-rate obligations, and swaps, among others, which can be
illiquid, may disproportionately increase losses, and have a potentially large
impact on the performance of the portfolio.
The Fund may take short positions, which involves leverage of its assets and
presents additional risks.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the Fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund employs leverage, which increases the volatility of investment returns
and subjects the Fund to magnified losses.
The Fund is subject to duration risk. Duration seeks to measure the price
sensitivity of a fixed income security to interest rates. The longer a
portfolio's duration, the more sensitive it will be to changes in interest
rates.
6 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
Investments in fixed-income securities involve interest rate, credit, inflation,
and reinvestment risks.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
Investments in high-yield or lower-rated securities are subject to
greater-than-average price volatility, illiquidity and possibility of default.
The securities issued by U.S. Government-sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
The portfolio may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
The Fund may invest in subordinated securities, which may be disproportionately
adversely affected by a default or even a perceived decline in creditworthiness
of the issuer.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund may invest in event-linked bonds, on which the return of principal and
the payment of interest are contingent on the non-occurrence of a pre-defined
"trigger" event, such as a hurricane or an earthquake of a specific magnitude.
The Fund may invest in floating-rate loans; the value of collateral, if any,
securing a floating-rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
There is no assurance that these and other strategies used by the Fund will be
successful. Please see the prospectus for a more complete discussion of the
Fund's risks.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should
not be relied upon for any other purposes.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 7
Portfolio Summary | 2/28/14
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Temporary Cash Investments 76.9%
Foreign Government Bonds 21.7%
Swaptions 1.3%
Options 0.1%
Geographical Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
United States 78.2%
Ireland 6.9%
Japan 5.2%
Italy 3.8%
France 3.1%
Spain 2.7%
Other (individually less than 0.1%) 0.1%
8 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)*
1. Japanese Government CPI Linked Bond, 0.1%, 9/10/23 5.22%
--------------------------------------------------------------------------------
2. Italy Buoni Poliennali Del Tesoro, 2.35%, 9/15/19 3.79
--------------------------------------------------------------------------------
3. France Government Bond OAT, 4.0%, 4/25/55 3.16
--------------------------------------------------------------------------------
4. Ireland Government Bond, 4.5%, 4/18/20 2.57
--------------------------------------------------------------------------------
5. Ireland Government Bond, 5.0%, 10/18/20 2.48
--------------------------------------------------------------------------------
6. Ireland Government Bond, 3.9%, 3/20/23 1.84
--------------------------------------------------------------------------------
7. Spain Government Bond, 4.7%, 7/30/41 1.34
--------------------------------------------------------------------------------
8. Spain Government Bond, 5.15%, 10/31/44 1.34
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or
sell any security listed.
8 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
Prices and Distributions | 2/28/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/14 1/30/14*
--------------------------------------------------------------------------------
A $9.93 $10.00
--------------------------------------------------------------------------------
C $9.93 $10.00
--------------------------------------------------------------------------------
Y $9.93 $10.00
--------------------------------------------------------------------------------
Distributions per Share: 1/30/14-2/28/14*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $-- $-- $--
--------------------------------------------------------------------------------
C $-- $-- $--
--------------------------------------------------------------------------------
Y $-- $-- $--
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bank of America Merrill Lynch (BofA ML) 3-month US Treasury Index is an
unmanaged market index of U.S. Treasury securities maturing in 90 days, that
assumes reinvestment of all income. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 10-12.
* The Fund commenced operations on January 30, 2013.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 9
Performance Update | 2/28/14 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Absolute Return Bond Fund at public
offering price during the periods shown, compared to that of the Bank of America
Merrill Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -0.70% -5.16%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated January 10, 2014,
as revised January 30, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.34% 1.15%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Absolute BofA ML 3-month
Return Bond Fund US Treasury Index
1/31/2014 $ 9,550 $ 10,000
2/28/2014 $ 9,522 $ 10,000
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through February 1, 2015, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
Performance Update | 2/28/14 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Absolute Return Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -0.70% -1.69%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated January 10, 2014,
as revised January 30, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.09% 1.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Absolute BofA ML 3-month
Return Bond Fund US Treasury Index
1/31/2014 $ 10,000 $ 10,000
2/28/2014 $ 9,860 $ 10,000
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through February 1, 2015, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 11
Performance Update | 2/28/14 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Absolute Return Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(1/30/14) -0.60% -0.60%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated January 10, 2014,
as revised January 30, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.09% 0.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Absolute BofA ML 3-month
Return Bond Fund US Treasury Index
1/31/2014 $5,000,000 $ 5,000,000
2/28/2014 $4,985,000 $ 5,000,029
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through February 1, 2015, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Absolute Return Bond Fund
Based on actual returns from January 31, 2014, through February 28, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 1/31/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 2/28/14 $ 997.00 $ 996.00 $ 997.00
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 0.79 $ 1.39 $ 0.59
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.00%,
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
29/365 (to reflect the partial year period).
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 13
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Absolute Return Bond Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from January 31, 2014, through February 28, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 1/31/14 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 2/28/14 $1,003.18 $1,002.58 $1,003.38
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 0.80 $ 1.39 $ 0.60
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.00%,
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
29/365 (to reflect the partial year period).
14 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
Schedule of Investments | 2/28/14 (unaudited)
--------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
--------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT
BONDS -- 21.3%
JPY 380,000 NR/Aa1 France Government Bond OAT,
4.0%, 4/25/55 $ 615,424
EURO 240,000 BBB+/Baa3 Ireland Government Bond, 3.9%,
3/20/23 358,906
EURO 320,000 BBB+/Baa3 Ireland Government Bond, 4.5%,
4/18/20 500,863
EURO 300,000 BBB+/Baa3 Ireland Government Bond, 5.0%,
10/18/20 483,220
EURO 508,242 NR/Baa2 Italy Buoni Poliennali Del Tesoro,
2.35%, 9/15/19 738,087
EURO 96,576,000 NR/Aa3 Japanese Government CPI Linked
Bond, 0.10%, 9/10/23 1,017,566
EURO 180,000 BBB-/Baa2 Spain Government Bond, 4.70%, 7/30/41 261,599
EURO 170,000 BBB-/Baa2 Spain Government Bond, 5.15%,
10/31/44 261,124
-------------
$ 4,236,789
--------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $4,139,170) $ 4,236,789
--------------------------------------------------------------------------------------------------
PURCHASED PUT OPTIONS -- 0.1%
EURO 120,000 Put EUR/Call NOK @ 8.40, 6/16/14 $ 3,533
EURO 80,000 Put EUR/Call USD @ 1.30, 7/22/14 326
EURO 80,000 Put EUR/Call USD @ 1.34, 5/20/14 404
EURO 80,000 Put EUR/Call USD @ 1.35, 4/8/14 226
EURO 70,000 Put EUR/Call USD @ 1.37, 7/3/14 113
90,000 Put USD/Call INR @ 61.60, 6/8/14 1,098
100,000 Put USD/Call INR @ 62.20, 12/19/14 1,591
200,000 Put USD/Call MYR @ 3.30, 5/15/14 2,966
110,000 Put USD/Call TRY @ 2.17, 1/7/15 991
160,000 Put USD/Call TRY @ 2.17, 1/13/15 1,533
--------------------------------------------------------------------------------------------------
TOTAL PURCHASED PUT OPTIONS
(Cost $14,378) $ 12,781
--------------------------------------------------------------------------------------------------
PURCHASED CALL OPTIONS -- 0.0%+
120,000 Call USD/Put JPY @ 104.00, 3/27/14 $ 244
AUD 135,000 Call AUD/Put NZD @ 1.09 5/12/14 572
AUD 182,000 Call AUD/Put NZD @ 1.07, 4/15/14 1,248
NOK 1,000,000 Call NOK/Put SEK @ 1.06, 4/15/14 2,177
160,000 Call USD/Put JPY @ 102.00 6/4/14 2,671
--------------------------------------------------------------------------------------------------
TOTAL PURCHASED CALL OPTIONS
(Cost $10,321) $ 6,912
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 15
Schedule of Investments | 2/28/14 (unaudited) (continued)
--------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
--------------------------------------------------------------------------------------------------
INTEREST RATE SWAPTIONS -- 1.2%
12,000,000 Options to receive fixed rate 2.29%
and pay LIBOR USD 3 month, Credit
Suisse International, 2/9/15 $ 202,819
2,500,000 Options to receive fixed rate 2.29%
and pay LIBOR USD 3 month, Morgan
Stanley Capital Services LLC, 2/9/15 42,254
--------------------------------------------------------------------------------------------------
TOTAL INTEREST RATE SWAPTIONS
(Cost $244,750) $ 245,073
--------------------------------------------------------------------------------------------------
TEMPORARY CASH
INVESTMENTS -- 75.5%
1,430,000 NR/NR U.S. Treasury Bills, 11/13/14 (c) $ 1,429,088
3,000,000 NR/NR U.S. Treasury Bills, 3/27/14 (c) 2,999,914
3,000,000 NR/NR U.S. Treasury Bills, 5/1/14 (c) 2,999,817
3,000,000 NR/NR U.S. Treasury Bills, 7/3/14 (c) 2,999,493
1,570,000 NR/NR U.S. Treasury Bills, 8/21/14 (c) 1,569,441
3,000,000 NR/NR U.S. Treasury Bills, 9/18/14 (c) 2,998,755
-------------
$ 14,996,508
--------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $14,997,052) $ 14,996,508
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN
SECURITIES -- 98.2%
(Cost $19,405,671) (a) $ 19,498,063
--------------------------------------------------------------------------------------------------
WRITTEN PUT OPTIONS -- (0.0)%+
AUD (182,000) Put AUD/Call NZD @ 1.04, 4/15/14 (530)
AUD (135,000) Put AUD/Call NZD @ 1.06, 5/12/14 (1,138)
NOK (1,000,000) Put NOK/Call SEK @ 1.03, 4/15/14 (190)
(160,000) Put USD/Call JPY @ 96.50, 6/4/14 (613)
--------------------------------------------------------------------------------------------------
TOTAL WRITTEN PUT OPTIONS
(Premiums paid $3,576) $ (2,471)
--------------------------------------------------------------------------------------------------
WRITTEN CALL OPTIONS -- (0.0)%+
(160,000) Call USD/Put JPY @ 106.00, 6/4/14 (717)
(110,000) Call USD/Put TRY @ 3.03, 1/7/15 (1,790)
--------------------------------------------------------------------------------------------------
TOTAL WRITTEN PUT OPTIONS
(Premiums paid $2,212) $ (2,507)
--------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 1.9% $ 369,011
--------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 19,862,096
==================================================================================================
+ Amount rounds to less than 0.1%.
NR Not rated by either S&P or Moody's.
OAT Obligations Assimilables de Tresor.
CPI Consumer Price Index.
LIBOR London Interbank Offered Rate.
The accompanying notes are an integral part of these financial statements.
16 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
(a) At February 28, 2014, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $19,405,671 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $100,706
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (8,314)
--------
Net unrealized appreciation $ 92,392
========
(b) Debt obligation with a variable interest rate. Rate shown is rate at
period end.
(c) Security issued with a zero coupon. Income is earned through
accretion of discount.
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EURO European Euro
JPY Japanese Yen
NOK Norwegian Krone
AUD Australian Dollar
Purchases and sales of securities (excluding temporary cash investments) for the
period ended February 28, 2014 aggregated $89,984,642 and $1,365,221,
respectively.
CREDIT DEFAULT SWAP AGREEMENTS - BUY PROTECTION
-----------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Received/ Appreciation
Principal Counterparty Entity/Index Coupon Date (Paid) (Depreciation)
-----------------------------------------------------------------------------------------------------
EURO (250,000) Credit Suisse Carrefour SA 1.00% 3/20/19 $ 1,904 $ (318)
International
EURO (3,100,000) Deutsche ITRAXX Europe 1.00% 12/20/18 29,814 (32,867)
Bank AG Main Series
20 5 Year
EURO (375,000) Deutsche ITRAXX Europe 1.00% 12/20/18 5,508 (1,563)
Bank AG Main Series
20 5 Year
EURO (250,000) Morgan Standard 1.00% 3/20/19 (1,836) (1,697)
Stanley Capital Chartered Bank
Services LLC
EURO (500,000) Morgan Volkswagon 1.00% 3/20/19 12,238 (2,296)
Stanley Capital International
Services LLC Finance NV
-----------------------------------------------------------------------------------------------------
$47,628 $ (38,741)
=====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 17
Schedule of Investments | 2/28/14 (unaudited) (continued)
CREDIT DEFAULT SWAP AGREEMENTS - SELL PROTECTION
-----------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Received Appreciation
Principal(1) Counterparty Entity/Index Coupon Date (Paid) (Depreciation)
-----------------------------------------------------------------------------------------------------
EURO 250,000 Credit Suisse Casino Guichard 1.00% 3/20/19 $ 1,955 $1,821
International Perrachon SA
EURO 250,000 Credit Suisse RWE AG 1.00% 3/20/19 (2,148) 985
International
EURO 250,000 Morgan The Royal Bank 1.00% 3/20/19 1,479 946
Stanley Capital of Scotland plc
Services LLC
EURO 250,000 Morgan Volvo Treasury AB 1.00% 3/20/19 760 1,131
Stanley Capital
Services LLC
-----------------------------------------------------------------------------------------------------
$ 2,046 $4,883
=====================================================================================================
(1) The notional amount is the maximum amount that a seller of credit
protection would be obligated to pay upon occurrence of a credit event.
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EURO
CROSS CURRENCY SWAP AGREEMENTS
-----------------------------------------------------------------------------------------------------
Net
Unrealized
Notional Floating Annual Expiration Appreciation
Principal ($) Counterparty Pay Receive Rate fixed Rate Date (Depreciation)
-----------------------------------------------------------------------------------------------------
2,917,980 Credit Suisse USD EURO LIBOR 7.500% 1/23/22 $43,658
International USD 3 month
=====================================================================================================
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EURO Euro
INFLATION RATE SWAP AGREEMENTS
------------------------------------------------------------------------------------------------------
Net
Unrealized
Notional Pay/ Annual Expiration Appreciation
Principal ($) Counterparty Receive Index Fixed Rate Date (Depreciation)
------------------------------------------------------------------------------------------------------
EURO 735,000 Credit Suisse International Pay EUCPI 1.188% 2/13/19 $ 3,715
EURO 367,500 Morgan Stanley & Co Pay EUCPI 1.238% 2/7/19 133
International Plc
EURO 181,000 Morgan Stanley Capital Pay EUCPI 1.210% 3/3/19 487
Services LLC
994,250 Credit Suisse International Receive USCPI 2.145% 2/7/19 (906)
The accompanying notes are an integral part of these financial statements.
18 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
INFLATION RATE SWAP AGREEMENTS (continued)
------------------------------------------------------------------------------------------------------
Net
Unrealized
Notional Pay/ Annual Expiration Appreciation
Principal ($) Counterparty Receive Index Fixed Rate Date (Depreciation)
------------------------------------------------------------------------------------------------------
EURO 735,000 Credit Suisse International Receive EUCPI 1.660% 2/13/24 $ (4,469)
498,000 Credit Suisse International Receive USCPI 2.138% 3/3/19 (445)
------------------------------------------------------------------------------------------------------
$ (1,485)
======================================================================================================
EUCPI Eurostat Eurozone HICP Ex Tobacco Unrevised Series NSA
USCPI United States Consumer Price Index
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EURO Euro
INTEREST RATE SWAP AGREEMENTS
---------------------------------------------------------------------------------------------------------
Annual Net Unrealized
Notional Pay/ Floating Fixed Expiration Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
---------------------------------------------------------------------------------------------------------
CAD 1,762,500 Deutsche Pay Canadian Bankers 2.205% 2/8/18 $ (2,446)
Bank AG Acceptances
3 Month
CNY 5,200,000 Credit Suisse Pay China Fixing Repo 4.910% 2/17/19 (11,865)
International Rates 7 day
EURO 1,930,000 Deutsche Bank AG Pay EURIBOR 6 month 2.703% 7/9/23 (13,829)
EURO 1,620,000 Deutsche Bank AG Pay EURIBOR 6 month 2.728% 8/7/23 (11,908)
EURO 360,000 Deutsche Bank AG Pay EURIBOR 6 month 2.558% 2/11/54 (6,694)
GBP 1,250,000 Deutsche Bank AG Pay LIBOR GBP 6 month 1.580% 8/7/17 2,994
HKD 5,520,000 Deutsche Bank AG Pay HKAB Hong Kong 3.963% 2/12/24 (5,113)
Dollar HIBOR Fixings
3 Month
JPY 135,400,000 Deutsche Bank AG Pay LIBOR JPY 6 month 2.410% 2/14/44 1,774
JPY 251,700,000 Deutsche Bank AG Pay LIBOR JPY 6 month 0.301% 3/3/18 124
MYR 5,700,000 Morgan Stanley Pay KLIBOR Interbank 3.420% 2/12/15 229
Capital Offered rate Fixing
Services LLC 3 Month
MYR 5,700,000 Morgan Stanley Pay KLIBOR Interbank 3.425% 2/14/15 170
Capital Offered rate Fixing
Services LLC 3 Month
MYR 5,700,000 Morgan Stanley Pay KLIBOR Interbank 3.430% 2/18/15 94
Capital Offered rate Fixing
Services LLC 3 Month
NZD 780,000 Deutsche Bank AG Pay NZD Bank Bill 5.343% 2/11/24 (6,281)
3 month
SGD 650,000 Deutsche Bank AG Pay Association of Banks 2.660% 2/14/24 244
in Singapore Swap
Offer Rate Fixing
6 Month
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 19
Schedule of Investments | 2/28/14 (unaudited) (continued)
INTEREST RATE SWAP AGREEMENTS (continued)
---------------------------------------------------------------------------------------------------------
Annual Net Unrealized
Notional Pay / Floating Fixed Expiration Appreciation
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
---------------------------------------------------------------------------------------------------------
2,400,000 Deutsche Bank AG Pay LIBOR USD 3 month 0.640% 9/12/16 $ (339)
1,015,000 Deutsche Bank AG Pay LIBOR USD 3 month 1.599% 2/7/19 (1,910)
6,540,000 Deutsche Bank AG Pay LIBOR USD 3 month 2.290% 2/11/20 (13,944)
508,000 Deutsche Bank AG Pay LIBOR USD 3 month 1.576% 3/3/19 711
CHF 1,140,000 Deutsche Bank AG Receive CHF LIBOR 6 Month 2.128% 7/9/23 3,602
CNY 12,000,000 Credit Suisse Receive China Fixing Repo 4.780% 2/17/16 8,504
International Rates 7 day
EURO 372,500 Deutsche Bank AG Receive EURIBOR 6 month 1.004% 2/7/19 436
EURO 1,280,000 Deutsche Bank AG Receive EURIBOR 6 month 1.900% 2/11/24 12,301
EURO 1,805,000 Deutsche Bank AG Receive EURIBOR 6 month 1.065% 3/3/18 (4,432)
EURO 184,000 Deutsche Bank AG Receive EURIBOR 6 month 0.948% 3/3/19 (773)
GBP 830,000 Deutsche Bank AG Receive LIBOR GBP 6 month 3.413% 8/7/22 (506)
GBP 1,440,000 Deutsche Bank AG Receive LIBOR GBP 6 month 3.706% 8/7/23 6,800
INR 56,600,000 Credit Suisse Receive Indian National 8.490% 2/14/19 14,253
International Stock Exchange NSE
Interbank Offer Rate
JPY 109,600,000 Deutsche Bank AG Receive LIBOR JPY 6 month 2.463% 2/14/34 (622)
1,380,000 Deutsche Bank AG Receive LIBOR USD 3 month 3.985% 7/9/23 (244)
1,300,000 Deutsche Bank AG Receive LIBOR USD 3 month 3.308% 9/12/21 2,207
960,000 Deutsche Bank AG Receive LIBOR USD 3 month 4.304% 5/1/28 7,369
810,000 Deutsche Bank AG Receive LIBOR USD 3 month 4.269% 2/14/24 4,791
1,500,000 Deutsche Bank AG Receive LIBOR USD 3 month 2.028% 2/10/18 2,078
---------------------------------------------------------------------------------------------------------
$(12,225)
=========================================================================================================
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
CAD Canadian Dollar
CHF Swiss Franc
CNY New Chinese Yuan
EURO Euro
GBP British Pound Sterling
HKD Hong Kong Dollar
INR Indian Rupee
JPY Japanese Yen
MYR Malaysian Ringgit
NZD New Zealand Dollar
SEK Swedish Krone
SGD Singapore Dollar
The accompanying notes are an integral part of these financial statements.
20 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See
Notes to Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services) as Level 3. See
Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of February 28, 2014, in
valuing the Fund's assets:
-------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------
U.S. Government and
Agency Obligations $ -- $14,996,508 $ -- $14,996,508
Foreign Government Bonds -- 4,236,789 -- 4,236,789
Purchased Put Options -- 12,781 -- 12,781
Purchased Call Option -- 6,912 -- 6,912
Purchased Call Swaptions -- 245,073 -- 245,073
-------------------------------------------------------------------------------------------
Total $ -- $19,498,063 $ -- $19,498,063
===========================================================================================
Other Financial Instruments
Net unrealized depreciation
on futures contracts $(32,388) $ -- $ -- $ (32,188)
Net unrealized depreciation
on forward foreign
currency contracts (63,348) -- (63,348)
Net unrealized depreciation
on credit default swaps (3,910) -- (3,910)
Net unrealized appreciation
on written put options -- 1,105 -- 1,105
Net unrealized depreciation
on written call options -- (295) -- (295)
-------------------------------------------------------------------------------------------
Total Other Financial Instruments $(32,188) $ (66,448) $ -- $ (98,636)
===========================================================================================
During the period ended February 28, 2014, there were no transfers between
Levels 1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 21
Statement of Assets and Liabilities | 2/28/14 (unaudited)
ASSETS:
Investment in securities, at value (cost $19,405,671) $19,498,063
Cash 500,879
Foreign currency (cost $222,022) 223,408
Futures collateral 25,499
Receivables --
Investment securities sold 746,305
Interest 73,722
Cross currency swap exchange 8,493
Due from Pioneer Investment Management, Inc. 10,843
Prepaid expenses 4,000
-------------------------------------------------------------------------------------------------------------
Total assets $21,091,212
-------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 991,082
Swap contracts, premiums paid 110,277
Written options (premiums paid $5,788) 4,978
Net unrealized depreciation on forward foreign currency contracts 63,348
Net unrealized depreciation on swap contracts 3,910
Net unrealized depreciation on futures contracts 32,188
Due to affiliates 11,302
Accrued expenses 12,031
-------------------------------------------------------------------------------------------------------------
Total liabilities $ 1,229,116
-------------------------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $20,000,000
Accumulated net investment loss (13,557)
Accumulated net realized loss on investments, futures contracts,
credit default swaps and foreign currency transactions (76,648)
Net unrealized appreciation on investments 92,392
Net unrealized depreciation on futures contracts (32,188)
Net unrealized depreciation on swap contracts (3,910)
Net unrealized appreciation on written options 810
Net unrealized depreciation on forward foreign currency contracts
and other assets and liabilities denominated in foreign currencies (104,803)
-------------------------------------------------------------------------------------------------------------
Total net assets $19,862,096
=============================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $6,621,575/666,667 shares) $ 9.93
Class C (based on $6,617,631/666,667 shares) $ 9.93
Class Y (based on $6,622,890/666,667 shares) $ 9.93
MAXIMUM OFFERING PRICE:
Class A ($9.93 (divided by) 95.5%) $ 10.40
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
Statement of Operations (unaudited)
For the period from 1/30/14 (Commencement of Operations) to 2/28/14
INVESTMENT INCOME:
Interest $ 4,935
------------------------------------------------------------------------------------------------------------
Total investment income $ 4,935
------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 9,511
Distribution fees
Class A 1,321
Class C 5,283
Administrative reimbursements 460
Custodian fees 1,160
Professional fees 8,410
Printing expense 1,595
Fees and expenses of nonaffiliated Trustees 638
Miscellaneous 957
------------------------------------------------------------------------------------------------------------
Total expenses $ 29,335
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (10,843)
------------------------------------------------------------------------------------------------------------
Net expenses $ 18,492
------------------------------------------------------------------------------------------------------------
Net investment loss $ (13,557)
------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
CREDIT DEFAULT SWAPS, WRITTEN OPTIONS, FUTURES
CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments $ (5,759)
Swap contracts 3,332
Futures contracts (63,811)
Written options (21)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (10,389) $ (76,648)
------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 92,392
Swap contracts (3,910)
Futures contracts (32,188)
Written options 810
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (104,803) $ (47,699)
------------------------------------------------------------------------------------------------------------
Net loss on investments $ (124,347)
------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (137,904)
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 23
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------------------
1/30/14 (a)
to 2/28/14
(unaudited)
------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ (13,557)
Net realized loss on investments, swap contracts, futures contracts, written
options and foreign currency transactions (76,648)
Change in net unrealized appreciation (depreciation) on investments, swap
contracts, futures contracts, written options and foreign
currency transactions (47,699)
------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (137,904)
------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $20,000,000
Reinvestment of distributions --
Cost of shares repurchased --
------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $20,000,000
------------------------------------------------------------------------------------------------------------
Net increase in net assets $19,862,096
NET ASSETS:
Beginning of period --
------------------------------------------------------------------------------------------------------------
End of period $19,862,096
------------------------------------------------------------------------------------------------------------
Accumulated net investment loss $ (13,557)
============================================================================================================
(a) The Fund commenced operation on January 30, 2014.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
------------------------------------------------------------------------------------------------------------
'14 Shares '14 Amount
(unaudited) (unaudited)
------------------------------------------------------------------------------------------------------------
Class A*
Shares sold 666,667 $6,666,667
Reinvestment of distributions -- --
Less shares repurchased -- --
------------------------------------------------------------------------------------------------------------
Net increase 666,667 $6,666,667
============================================================================================================
Class C*
Shares sold 666,667 $6,666,667
Reinvestment of distributions -- --
Less shares repurchased -- --
------------------------------------------------------------------------------------------------------------
Net increase 666,667 $6,666,667
============================================================================================================
Class Y*
Shares sold 666,667 $6,666,666
Reinvestment of distributions -- --
Less shares repurchased -- --
------------------------------------------------------------------------------------------------------------
Net increase 666,667 $6,666,666
============================================================================================================
* Class A, Class C and Class Y shares were first publicly offered on January
31, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 25
Financial Highlights
------------------------------------------------------------------------------------------------------------
1/31/14 (a)
to 2/28/14
(unaudited)
------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.00
------------------------------------------------------------------------------------------------------------
Decrease from investment operations:
Net investment loss $ (0.01)
Net realized and unrealized loss on investments (0.06)
------------------------------------------------------------------------------------------------------------
Net decrease in net assets from investment operations $ (0.07)
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.07)
------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.93
============================================================================================================
Total return* (0.70)%
Ratio of net expenses to average net assets 1.00%**
Ratio of net investment loss to average net assets (0.69)%**
Portfolio turnover rate 103%**
Net assets, end of period (in thousands) $ 6,622
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Total expenses 1.68%**
Net investment loss (1.37)%**
============================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) Class A shares were first publicly offered on January 31, 2014.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
------------------------------------------------------------------------------------------------------------
1/31/14 (a)
to 2/28/14
(unaudited)
------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.00
------------------------------------------------------------------------------------------------------------
Decrease from investment operations:
Net investment loss $ (0.01)
Net realized and unrealized loss on investments (0.06)
------------------------------------------------------------------------------------------------------------
Net decrease in net assets from investment operations $ (0.07)
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.07)
------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.93
============================================================================================================
Total return* (0.70)%
Ratio of net expenses to average net assets 1.75%**
Ratio of net investment loss to average net assets (1.44)%**
Portfolio turnover rate 103%**
Net assets, end of period (in thousands) $ 6,618
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Total expenses 2.43%**
Net investment loss (2.12)%**
============================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) Class C shares were first publicly offered on January 31, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 27
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------
1/31/14 (a)
to 2/28/14
(unaudited)
------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.00
------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.00)(b)
Net realized and unrealized loss on investments (0.07)
------------------------------------------------------------------------------------------------------------
Net increase in net assets from investment operations $ (0.07)
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.07)
------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.93
============================================================================================================
Total return* (0.60)%
Ratio of net expenses to average net assets 0.75%**
Ratio of net investment loss to average net assets (0.44)%**
Portfolio turnover rate 103%**
Net assets, end of period (in thousands) $ 6,623
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Total expenses 1.43%**
Net investment loss (1.12)%**
============================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
(a) Class Y shares were first publicly offered on January 31, 2014.
(b) Amount rounds to less than $(0.01) per share.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
Notes to Financial Statements | 2/28/14 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Absolute Bond Fund (the Fund) is one of five portfolios comprising
Pioneer Series Trust V, a Delaware statutory trust. The Fund is registered under
the Investment Company Act of 1940 as a diversified, open-end management
investment company. The Fund's investment objective is to seek total return.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Class A, Class C and Class Y shares were first publicly offered on
January 31, 2014. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has identical rights (based on relative
net asset values) to assets and liquidation proceeds. Share classes can bear
different rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 29
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Senior
floating rate loan interests (senior loans) are valued in accordance with
guidelines established by the Board of Trustees at the mean between the
last available bid and asked prices from one or more brokers or dealers as
obtained from Loan Pricing Corporation, an independent pricing service. If
price information is not available from Loan Pricing Corporation, or if the
price information is deemed to be unreliable, price information will be
obtained from an alternative loan interest pricing service. If no reliable
price quotes are available from either the primary or alternative pricing
service, broker quotes will be solicited. Fixed income securities with
remaining maturity of more than sixty days are valued at prices supplied by
independent pricing services, which consider such factors as market prices,
market events, quotations from one or more brokers, Treasury spreads,
yields, maturities and ratings. Valuations may be supplemented by dealers
and other sources, as required. Equity securities that have traded on an
exchange are valued at the last sale price on the principal exchange where
they are traded. Equity securities that have not traded on the date of
valuation, or securities for which sale prices are not available, generally
are valued using the mean between the last bid and asked prices. Short-term
fixed income securities with remaining maturities of sixty days or less
generally are valued at amortized cost. Shares of money market mutual funds
are valued at such funds' net asset value.
Trading in foreign securities is substantially completed each day at
various times prior to the close of the NYSE. The values of such securities
used in computing the net asset value of the Fund's shares are determined
as of such times.
Securities or loan interests for which independent pricing services are
unable to supply prices or for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued by a
fair valuation team comprised of certain personnel of Pioneer Investment
Management, Inc. (PIM), the Fund's investment advisor, pursuant to
procedures adapted by the Fund's Board of Trustees. PIM's fair valuation
team uses fair value methods approved by the Valuation Committee of the
Board of Trustees. PIM's fair valuation team is responsible for monitoring
developments that may impact fair valued securities and for discussing and
assessing fair values on an ongoing basis, and at least quarterly, with the
Valuation Committee of the Board of Trustees.
30 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
At February 28, 2014, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services).
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on debt securities are accreted/amortized for
financial reporting purposes over the life of the respective securities,
and such accretion/amortization is included in interest income.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income is recorded
on the accrual basis. All discounts/premiums on debt securities are
accreted/amortized into interest income for financial reporting purposes.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the statement of operations from
the effects of changes in the market prices of those securities but are
included with the net realized and unrealized gain or loss on investments.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 31
C. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
February 28, 2014 was $25,499. Subsequent payments for futures contracts
("variation margin") are paid or received by the Fund, depending on the
daily fluctuation in the value of the contracts, and are recorded by the
Fund as unrealized appreciation or depreciation. When the contract is
closed, the Fund realizes a gain or loss equal to the difference between
the opening and closing value of the contract. The use of futures contracts
involves, to varying degrees, elements of market, interest rate, currency
exchange rate and counterparty risks, which may exceed the amounts
recognized by the Fund. Changes in value of the contracts may not directly
correlate to changes in value of the underlying securities. The value of
contracts open for one month in the period ended February 28, 2014 was
$25,484,731.
At February 28, 2014, open futures contracts were as follows:
---------------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation/
Type Long/(Short) Month Value (Depreciation)
---------------------------------------------------------------------------------------
F/C Australia
10 yr Future 2 3/14 $ 208,375 $ 2,393
F/C Euro Schatz 16 3/14 2,444,172 (1,327)
F/C Long Gilt Future 1 6/14 183,388 871
F/C Australia 3 yr
Bond Future (19) 3/14 (1,848,204) (1,530)
F/C Euro OAT Future (14) 3/14 (2,641,100) (17,965)
F/C Euro BTP Future (7) 6/14 (1,157,742) (580)
F/C Short Euro-
BTP Future (13) 3/14 (1,982,476) (6,827)
F/C Japan 10 yr
Bond TSE Future (1) 3/14 (1,426,242) (3,832)
F/C 90 Day Euro Future (10) 3/16 (2,470,000) (1,750)
F/C 90 Day Euro Future (10) 3/15 (2,476,250) (1,250)
F/C 90 Day Euro Future (10) 6/16 (2,463,500) (2,000)
F/C U.S. 5 yr Note (22) 6/14 (2,636,906) 2,434
F/C U.S. Long
Bond (CBT) (8) 6/14 (1,064,500) 300
F/C 90 Day Euro Future (10) 9/15 $(2,481,875) (1,125)
---------------------------------------------------------------------------------------
$ (32,188)
=======================================================================================
32 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
D. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
is recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 6).
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
February 28, 2014, the Fund did not accrue any interest or penalties with
respect to unrecognized tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years remain subject to examination by
federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned no underwriting commissions on the sale of Class A
shares during the period ended February 28, 2014.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 33
G. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
H. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
I. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price,
upon the exercise of the option. When the Fund writes an option, an amount
equal to the premium received by the Fund is recorded as a liability and is
subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the
underlying security in
34 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
determining whether the Fund has realized a gain or loss. The Fund as
writer of an option bears the market risk of an unfavorable change in the
price of the security underlying the written option.
The value of option contracts open for one month in the period ended
February 28, 2014 was $4,979. Written call and put option contracts
outstanding at period end are listed at the end of the Fund's schedule of
investments.
The Fund held four written put option contracts that were open at February
28, 2014. If the put options were exercised at February 28, 2014, the
maximum amount the Fund would have been required to pay was $2,471.
The Fund held two written call option contracts that were open at February
28, 2014. If the put options were exercised at February 28, 2014, the
maximum amount the Fund would have been required to pay was $2,507.
Transactions in written options for the period ended February 28, 2014 are
summarized as follows:
-----------------------------------------------------------------------------
Number of Premium
Contracts Paid
-----------------------------------------------------------------------------
Options open at beginning of period -- $ --
Options opened (1,747,000) (5,788)
Options exercised -- --
Options closed -- --
Options expired -- --
-----------------------------------------------------------------------------
Options open at end of period (1,747,000) (5,788)
=============================================================================
J. Purchased Options
The Fund may purchase put and call options to seek increase total return.
Purchased call and put options entitle the Fund to buy and sell a specified
number of shares or units of a particular security, currency or index at a
specified price at a specific date or within a specific period of time.
Upon the purchase of a call or put option, the premium paid by the Fund is
included in the Statement of Assets and Liabilities as an investment. All
premiums are marked-to-market daily, and any unrealized gains or losses are
recorded in the Fund's financial statements. As the purchaser of an index
option, the Fund has the right to receive a cash payment equal to any
depreciation in the value of the index below the strike price of the option
(in the case of a put) or equal to any appreciation in the value of the
index over the strike price of the option (in the case of a call) as of the
valuation date of the option. Premiums paid for purchased calls and put
options which have expired are treated as realized losses on investments in
the Statement of Operations. Upon the exercise or closing of a purchased
put option, the premium is offset against
35 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
the proceeds on the sale of the underlying security or financial instrument
in order to determine the realized gain or loss on investments. Upon the
exercise or closing of a purchased call option, the premium is added to the
cost of the security or financial instrument. The risk associated with
purchasing options is limited to the premium originally paid. The value of
purchased options open for one month in the period ended February 28, 2014
was $19,693. Purchased option contracts outstanding at period end are
listed at the end of the Fund's schedule of investments.
K. Interest Rate Swaptions
The Fund may enter into interest rate swaptions to seek to manage exposure
to fluctuations in interest rates or to seek to enhance yield. A swaption
grants the right but not the obligation to enter into the underlying swap
at a future specified date.
When the Fund purchases a swaption, the premium paid by the Fund is
included in the Statement of Assets and Liabilities as an investment. All
premiums are marked-to-market daily, and any unrealized appreciation or
depreciation is recorded in the Fund's financial statements. Premiums paid
for purchased swaptions, which have expired, are treated as realized losses
on investments in the Statement of Operations. Upon the exercise or closing
of a purchased swaption, the cost basis of the swap is adjusted by the
amount of premium paid in order to determine the realized gain or loss on
investments. The risk associated with purchasing swaptions is limited to
the premium originally paid.
When the Fund writes a swaption, the Fund receives a premium and becomes
obligated to enter into a swap contract according to the terms of the
underlying agreement. The premium received by the Fund is recorded as a
liability and is subsequently adjusted to the current value of the written
swaption. Premiums received from writing swaptions that expire unexercised
are treated by the Fund on the expiration date as realized gains. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a written swaption is
exercised, the cost basis of the swap is adjusted by the amount of premium
received. The Fund as writer of a swaption bears the market risk of an
unfavorable change in the price of the security underlying the written
swaption.
Open interest rate swaption contracts at February 28, 2014 are listed in
the Schedule of Investments. The value of purchased swaption contracts open
for one month in the period ended February 28, 2014 was $245,073.
36 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
L. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may buy
or sell credit default swap contracts to seek to increase the Fund's
income, or to attempt to hedge the risk of default on Fund securities. A
credit default swap index is used to hedge risk or take a position on a
basket of credit entities or indices. As a seller of protection, the Fund
would be required to pay the notional (or other agreed-upon) value of the
referenced debt obligation to the counterparty in the event of a default by
a U.S. or foreign corporate issuer of a debt obligation, which would likely
result in a loss to the Fund. In return, the Fund would receive from the
counterparty a periodic stream of payments during the term of the contract
provided that no event of default occurred. The maximum exposure of loss to
the seller would be the notional value of the credit default swaps
outstanding. If no default occurs, the Fund would keep the stream of
payments and would have no payment obligation. The Fund may also buy credit
default swap contracts in order to hedge against the risk of default of
debt securities, in which case the Fund would function as the counterparty
referenced above.
When the Fund enters into a credit default swap contract. The protection
buyer, makes an upfront or periodic payment to the protection seller in
exchange for the rights to receive a contingent payment. An upfront payment
made to the Fund, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made as a result of a credit
event or upon termination of the contract are recognized, net of the
appropriate amount of the upfront payment, as realized gains or losses in
the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 37
Open credit default swap contracts at February 28, 2014 are listed in the
Schedule of Investments. The value of credit default swap contracts open
for one month in the period ended February 28, 2014 was $7,603,322.
M. Cross Currency Swap Contracts
The Fund may enter into a cross currency swap contract to attempt to manage
and/or gain exposure to fluctuations in interest and/or currency exchange
rates. When entering into a cross currency swap contract, the Fund
negotiates with the counterparty to exchange a periodic stream of payments
(determined using fixed or floating rates) based on the notional amount of
two different currencies. The notional amounts are typically determined
based on exchange rates at the opening of the contract.
Cross currency swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made under the contract or
upon termination of the contract are recognized, net of the appropriate
amount of any upfront payment, as realized gains or losses in the Statement
of Operations. Cross currency swaps are subject to counterparty risk.
Open cross currency swap contracts at February 28, 2014 are listed in the
Schedule of Investments. The value of cross currency swap contracts open
for one month in the period ended February 28, 2014 was $2,917,980.
N. Inflation Rate Swap Contracts
The Fund may enter into inflation rate swap contracts to attempt to hedge
against inflation. Pursuant to the inflation rate swap agreement, the Fund
negotiates with a counterparty to exchange a periodic stream of payments,
based on a benchmark inflation index. One cash flow stream will typically
be a floating rate payment linked to the specified inflation index while
the other is typically a fixed interest rate.
Inflation rate swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Inflation rate swaps are normally issued on a zero
coupon basis where all payments compound during the life of the contract
and are netted upon the termination or maturity of the contract. Final
payments received or paid by the Fund are recorded as realized gains or
losses in the Statement of Operations. Inflation rate swap contracts are
subject to movements in interest rates.
38 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
Open inflation rated swap contracts at February 28, 2014 are listed in the
Schedule of Investments. The value of inflation rate swap contracts open
for the one month in the period ended February 28, 2014 was $4,280,231.
O. Interest Rate Swap Contracts
The Fund may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance its income. Pursuant to the
interest rate swap agreement, the Fund negotiates with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly
basis.
Periodic payments received or paid by the Fund are recorded as realized
gains or losses in the Statement of Operations. Interest rate swap
contracts are marked-to-market daily using valuations supplied by
independent sources and the change in value, if any, is recorded as
unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Interest rate swap contracts are subject to counterparty risk
and movements in interest rates.
Open interest rate swap contracts at February 28, 2014 are listed in the
Schedule of Investments. The value of interest swap swap contracts open for
one month in the period ended February 28, 2014 was $50,859,194.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at an annual rate of 0.60% of
the average daily net assets of the Fund.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.15%, 1.90% and 0.75% of the average daily
net assets attributable to Class A, Class C and Class Y shares, respectively.
These expense limitations are in effect through February 1, 2015. Fees waived
and expenses reimbursed during the period ended February 28, 2014 are reflected
on the Statement of Operations. Fees and expenses of other investment companies
in which the Fund may invest are not included in the expense limitations noted
above. There can be no assurance that PIM will extend the expense limitation
agreement for a class of shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 39
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $9,616 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 28, 2014.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $0 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2014.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $1,686 in distribution fees payable to
PFD at February 28, 2014.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y. Proceeds from the CDSCs are paid to PFD. For the period
ended February 28, 2014, no CDSCs were paid to PFD.
5. Forward Foreign Currency Contracts
At February 28, 2014, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The value of forward foreign currency
contracts open for one month in the period ended February 28, 2014 was
$10,642,604.
40 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
Open forward foreign currency contracts at February 28, 2014 were as follows:
---------------------------------------------------------------------------------------------------------------
Net Net Unrealized
Contracts to In Exchange Settlement Appreciation
Currency Deliver For Date Value (Depreciation)
---------------------------------------------------------------------------------------------------------------
AUD (Australian Dollar) 185,000 164,095 4/17/14 164,646 551
AUD (Australian Dollar) (185,000) (164,817) 4/17/14 (164,646) 171
GBP (British Pound
Sterling) 110,000 179,638 4/17/14 184,281 4,643
GBP (British Pound
Sterling) (110,000) (180,976) 4/17/14 (184,281) (3,305)
GBP (British Pound
Sterling) (100,000) (164,922) 4/17/14 (167,528) (2,606)
CAD (Canadian Dollar) (165,203) (150,000) 4/17/14 (149,121) 879
CAD (Canadian Dollar) 167,063 150,000 4/17/14 150,800 800
EUR (European Euro) 300,000 406,424 4/17/14 414,578 8,154
EUR (European Euro) (90,000) (122,638) 4/17/14 (124,373) (1,735)
EUR (European Euro) 120,000 163,308 4/17/14 165,831 2,523
EUR (European Euro) (2,192,879) (2,985,000) 4/17/14 (3,030,395) (45,395)
EUR (European Euro) (301,085) (413,218) 4/17/14 (416,077) (2,859)
EUR (European Euro) 90,000 123,809 4/17/14 124,373 564
EUR (European Euro) (300,000) (412,200) 3/3/14 (414,585) (2,385)
EUR (European Euro) 181,081 250,000 3/4/14 250,244 244
EUR (European Euro) 150,000 205,080 3/3/14 207,293 2,213
EUR (European Euro) 150,000 205,170 3/3/14 207,293 2,123
HUF (Hungarian Forint) 18,035,200 80,000 4/17/14 80,287 287
HUF (Hungarian Forint) (36,667,200) (160,000) 4/17/14 (163,231) (3,231)
INR (Indian Rupee) 7,878,750 125,000 5/15/14 125,232 232
MYR (Malaysian Ringgit) 531,920 160,000 3/11/14 162,208 2,208
NZD (New Zealand
Dollar) (150,000) (124,208) 4/17/14 (125,463) (1,255)
ZAR (South African
Rand) 1,328,160 120,000 4/17/14 122,640 2,640
ZAR (South African
Rand) (1,343,340) (120,000) 4/17/14 (124,042) (4,042)
ILS (Israeli Shekel) 706,040 200,000 4/17/14 202,335 2,335
ILS (Israeli Shekel) (708,260) (200,000) 4/17/14 (202,971) (2,971)
ILS (Israeli Shekel) (1,091,014) (310,000) 4/17/14 (312,660) (2,660)
KRW (South Korea
Won) (172,896,000) (160,000) 3/10/14 (162,065) (2,065)
CHF (Swiss Franc) 109,418 122,638 4/17/14 124,588 1,950
CHF (Swiss Franc) (366,761) (406,424) 4/17/14 (417,610) (11,186)
JPY (Japanese Yen) (116,674,500) (1,139,931) 4/17/14 (1,146,556) (6,625)
CNY (New Chinese
Yuan) 980,000 160,656 7/18/14 159,615 (1,041)
PLN (New Polish Zloty) (373,548) (120,000) 4/17/14 (123,620) (3,620)
PLN (New Polish Zloty) 369,324 120,000 4/17/14 122,222 2,222
PLN (New Polish Zloty) (364,548) (120,000) 4/17/14 (120,642) (642)
PLN (New Polish Zloty) (375,516) (123,809) 4/17/14 (124,273) (464)
---------------------------------------------------------------------------------------------------------------
Total $ (63,348)
===============================================================================================================
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 41
6. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the period ended February 28, 2014, the Fund's expenses
were not reduced under such arrangements.
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until February 12, 2014 was in the amount of $215
million. As of February 12, 2014, the facility is in the amount of $240 million.
Under such facility, depending on the type of loan, interest on borrowings is
payable at the London Interbank Offered Rate (LIBOR) plus 0.90% (0.85% as of
February 12, 2014) on an annualized basis, or the Alternate Base Rate, which is
the greater of (a) the facility's administrative agent's daily announced prime
rate on the borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing
date and (c) 2% plus the overnight Eurodollar rate on the borrowing date. The
Funds pay an annual commitment 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 period ended February 28,
2014, the Fund had no borrowings under the credit facility.
42 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
8. Assets and Liabilities Offsetting
Financial instruments subject to an enforceable master netting agreement have
been offset on the Statement of Assets and Liabilities. The following charts
show gross assets and liabilities of the Fund as of February 28, 2014.
Assets:
---------------------------------------------------------------------------------------------------
Net
Gross Amounts Gross Amounts
Amounts of Assets Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement ----------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
---------------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 34,739 $ (34,739) $ -- $ -- $ -- $ --
Futures
contracts $ 5,998 $ (5,998) $ -- $ -- $ -- $ --
Swap Contracts $ 121,557 $ (121,557) $ -- $ -- $ -- $ --
Written options $ 1,878 $ (1,878) $ -- $ -- $ -- $ --
Cross Currency
Swap Exchange $2,926,473 $(2,917,980) $ 8,493 $ -- $ -- $ 8,493
---------------------------------------------------------------------------------------------------
$3,090,645 $(3,082,152) $ 8,493 $ -- $ -- $ 8,493
===================================================================================================
Liabilities:
---------------------------------------------------------------------------------------------------
Net
Gross Amounts of Gross Amounts
Amounts Liabilities Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement ----------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Pledged Amount
---------------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 98,087 $ (34,739) $ 63,348 $ -- $ -- $ 63,348
Futures
contracts $ 38,186 $ (5,998) $ 32,188 $ -- $ -- $ 32,188
Swap contracts $ 125,467 $ (121,557) $ 3,910 $ -- $ -- $ 3,910
Written options $ 6,856 $ (1,878) $ 4,978 $ -- $ -- $ 4,978
Cross Currency
Swap Exchange $2,917,980 $ (2,917,980) $ -- $ -- $ -- $ --
---------------------------------------------------------------------------------------------------
$3,186,576 $ (3,082,152) $ 104,424 $ -- $ -- $104,424
====================================================================================================
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 43
9. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of February 28, 2014 were as follows:
---------------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives 2014 Liabilities Derivatives 2014
Hedging Instruments --------------------------------------------------------------------
Under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
---------------------------------------------------------------------------------------------------
Forward foreign Net unrealized Net unrealized
currency contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $ -- currency contracts $ 63,348
Swap contracts Net unrealized Net unrealized
appreciation on depreciation on
swap contracts $ -- swap contracts $ 3,910
Futures contracts* Net unrealized Net unrealized
appreciation on depreciation on
futures contracts $ -- futures contracts $ 32,188
Written options Net unrealized Net unrealized
appreciation on depreciation on
written options $ 810 written options $ --
---------------------------------------------------------------------------------------------------
Total $ 810 $ 99,446
===================================================================================================
* Reflects unrealized appreciation/depreciation of futures contracts (see
Note 1C).
44 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
The effect of derivative instruments on the Statement of Operations for the
period ended February 28, 2014 was as follows:
---------------------------------------------------------------------------------------------------
Change in
Derivatives Realized Unrealized
Not Accounted Gain or Appreciation or
for as Hedging (Loss) on (Depreciation)
Instruments Under Location of Gain or (Loss) Derivatives on Derivatives
Accounting Standards on Derivatives Recognized Recognized Recognized
Codification (ASC) 815 in Income in Income in Income
---------------------------------------------------------------------------------------------------
Forward foreign Net realized gain (loss) on
currency contracts forward foreign currency contracts
and other assets and liabilities
denominated in foreign currencies $ -- $ (10,389)
Forward foreign Change in unrealized appreciation
currency contracts (depreciation) on forward foreign
currency contracts and other assets
and liabilities denominated in
foreign currencies $(104,803)
Futures contracts Net realized gain (loss) on
futures contracts $ -- $ (63,811)
Futures contracts Change in net unrealized appreciation
(depreciation) on futures contracts $ (32,188)
Swap contracts Net realized gain (loss) on swap
contracts $ 3,332
Swap contracts Change in net unrealized appreciation
(depreciation) on swap contracts $ (3,910)
Written options Net realized gain (loss) on
written options $ (21) $ --
Written options Change in net unrealized appreciation
(depreciation) on written options $ 810 $ --
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 45
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Absolute Return Bond Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. Based on their evaluation of the information
provided by PIM, the Trustees, including the Independent Trustees voting
separately, unanimously approved an investment advisory agreement for the Fund.
In considering the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. In all quintile rankings referred to throughout this
disclosure, the first quintile is most favorable to Fund shareowners. The
Trustees did not identify any single factor as the controlling factor in
determining to approve the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that
would be provided by PIM to the Fund under the investment advisory agreement.
The Trustees reviewed PIM's investment approach for the Fund and its research
process, and considered the resources of PIM and the personnel of PIM who would
provide investment management services to the Fund. The Trustees also considered
that, as administrator, PIM would be responsible for the administration of the
Fund's business and other affairs. The Trustees considered the quality of such
services provided by PIM to the other Pioneer Funds. The Trustees considered the
fees to be paid to PIM for the provision of administration services. Based on
these considerations, the Trustees concluded that the nature, extent and quality
of services that PIM would provide to the Fund were satisfactory and consistent
with the terms of the investment advisory agreement.
Performance of the Fund
The Trustees did not consider the Fund's performance in approving the investment
advisory agreement because the Fund was newly-offered and did not have a
performance history. The Trustees noted the performance results of a UCITS fund
managed by Pioneer, and discussed in detail how the management of the Fund would
differ from the management of the UCITS fund.
Management Fee and Expenses
The Trustees considered information compiled by Strategic Insight Simfund, an
independent third party, to compare the Fund's proposed management fee and
anticipated expense ratio with a peer group of funds included in the Morningstar
Non-Traditional Bond category. The Trustees considered that the
46 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
Fund's proposed management fee would rank in the fourth quintile of the peer
group, and in the third quintile of a subset of the peer group consisting of
funds that pursue an investment approach similar to the Fund's investment
approach. The Trustees considered factors distinguishing the Fund from the funds
in the peer group. The Trustees also considered that, taking into account the
contractual expense limitation agreed to by PIM with respect to the Fund, the
Fund's anticipated expense ratio would rank at the top of the fifth quintile of
the peer group, and at the top of the fourth quintile of the subset of the peer
group consisting of funds that pursue an investment approach similar to the
Fund's investment approach. The Trustees concluded that the proposed management
fee payable by the Fund to PIM was reasonable in relation to the nature and
quality of services to be provided by PIM.
Profitability
The Trustees did not consider PIM's profitability with respect to the management
of the Fund in approving the investment advisory agreement because the Fund was
newly-offered and profitability information was not available.
Economies of Scale
The Trustees considered PIM'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 funds and fund shareholders. The Trustees
concluded that economies of scale, if any, would be appropriately shared with
the Fund.
Other Benefits
The Trustees considered the other potential benefits to PIM from its
relationship with the Fund, including the character and amount of fees that
would be paid by the Fund, other than under the investment advisory agreement,
for services that would be provided by PIM and its affiliates, and the revenues
and profitability of PIM's businesses other than the fund business. The Trustees
concluded that the receipt of these benefits was reasonable in the context of
the overall relationship between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the investment
advisory agreement for the Fund.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 47
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman Daniel K. Kingsbury, President*
David R. Bock Mark D. Goodwin, Executive
Benjamin M. Friedman Vice President
Margaret B.W. Graham Mark E. Bradley, Treasurer**
Daniel K. Kingsbury Christopher J. Kelley, Secretary
Marc O. Mayer
Marguerite A. Piret
Kenneth J. Taubes
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Chief Executive Officer of the Fund.
** Chief Financial and Accounting Officer of the Fund.
48 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
This page for your notes.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 49
This page for your notes.
50 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
This page for your notes.
Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14 51
This page for your notes.
52 Pioneer Absolute Return Bond Fund | Semiannual Report | 2/28/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 27690-00-0414
Pioneer Long/Short
Global Bond Fund
-------------------------------------------------------------------------------
Semiannual Report | February 28, 2014
-------------------------------------------------------------------------------
Ticker Symbols:
Class A LSGAX*
Class C LSGCX*
Class Y LSGYX*
*Class A, C, and Y shares were first publicly offered on
December 31, 2013.
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 26
Notes to Financial Statements 33
Approval of Investment Advisory Agreement 45
Trustees, Officers and Service Providers 47
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 1
President's Letter
Dear Shareowner,
A few months into 2014, we still foresee U.S. economic growth matching or
exceeding 2013 levels, despite some weaker economic data releases early in the
year driven in large part by harsh winter weather across much of the continental
U.S. While unemployment remains high, employment has been rising steadily.
Consumer incomes, savings, wealth, and debt-servicing capacity have been solid
buttresses for the recovering housing and auto industries. Industrial activity
is growing only moderately, but current corporate profits are generally solid
and balance sheets appear able to support needed capital spending and dividend*
payouts. Tax hikes, spending restraint and a better economy have meaningfully
cut the federal budget deficit. A modestly improving European economy and
continuing economic improvement in Japan appear likely to result in improving
global growth in 2014, further supporting the U.S. economy. In addition, we feel
that continuing slack in labor markets and capacity utilization offer the
potential for continuing growth without bottlenecks and rising inflation.
After observing the strengthening economic trends, the Federal Reserve (the Fed)
has begun scaling back its QE (quantitative easing) program, but short-term
interest rates remain near zero, and while Fed Chair Janet Yellen has hinted
that rates may be raised sooner than anticipated, market expectations are still
focused on no earlier than 2015.
There are certainly risks and
uncertainties still facing the global economy as 2014 moves along. The European
economy, while improving, remains weak, the Japanese economy faces a tax hike
this spring, and a number of emerging market countries are experiencing
difficulties. There are also geopolitical worries abroad, such as Russia's
aggressive move against Ukraine, and more potential political fights at home,
especially during a mid-term election year. While most of the widely recognized
risks we have outlined may already be "priced into" the market, we believe
investors should continue to expect market volatility.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
* Dividends are not guaranteed.
2 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in global equity and bond markets, using in-depth research to identify
undervalued individual securities, and using thoughtful risk management to
construct portfolios which seek to balance potential risks and rewards in an
ever-changing world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 3
Portfolio Management Discussion | 2/28/14
In the following interview, portfolio managers Thomas Swaney and Benjamin Gord
discuss the factors that influenced Pioneer Long/Short Global Bond Fund's
performance for the abbreviated semiannual reporting period beginning with the
Fund's inception on December 30, 2013, and ending February 28, 2014, as well as
their investment approach in managing the Fund. Mr. Swaney, Head of Alternative
Fixed Income, U.S., a senior vice president, and a portfolio manager at Pioneer
(lead portfolio manager of the Fund since 2013), and Mr. Gord, a vice president
and a portfolio manager at Pioneer are responsible for the day-to-day
management of the Fund.
Q How did the Fund perform during the abbreviated semiannual reporting period
ended February 28, 2014?
A Pioneer Long/Short Global Bond Fund's Class A shares returned 0.00% at net
asset value during the period between December 30, 2013, and February 28,
2014. During the two-month period ended February 28, 2014, the Fund's
benchmark, the Bank of America Merrill Lynch (BofA ML) 3-Month U.S.
Treasury-Bill Index, returned 0.01%.
Q Can you provide an overview of the Fund's approach?
A The big picture is that we aim to have the Fund's annualized return exceed
that of 3-month Treasury bills, with portfolio volatility that is about the
same as the broad fixed-income market. To achieve that goal, we seek to
provide positive Fund returns over most trailing 12-month periods and to
minimize the extent of any negative returns, regardless of market
conditions.
Obviously, if we are going to be successful in achieving our objective, the
Fund's returns cannot be overly dependent on the direction of one or more
financial asset categories. In seeking positive Fund returns regardless of
market conditions, we utilize two distinct investment strategies. One part
of the portfolio's strategy is directional, in that we need to be correct
about whether the prices of a particular asset class are poised to go up or
down. However, we seek to have the Fund benefit from both positive and
negative returns. This means that at times we invest in some asset
categories within the broad bond market by taking long positions, while
speculating against other asset classes by taking short positions.
The other part of the portfolio utilizes uncorrelated trading strategies,
under which we do not have to take a stance on whether an individual market
is going to rise or fall overall. Instead, we need to identify a segment
4 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
or security within a market that will outperform versus another market
segment or security. We execute these portfolio investment strategies across
several different global financial markets and many different asset classes.
We will seek to "pair" positions, meaning that the Fund will have a long
position in one segment/security of a particular market, and a short
position in another segment/security. We believe this strategy can allow the
Fund to benefit from favorable relative performance, regardless of the
overall direction of that market.
Perhaps most importantly, we closely track the risks we have assumed in both
portions of the portfolio and operate within an overall "risk budget," which
is based on our goal of largely avoiding negative returns over a 12-month
period.
Q Can you review the principal portfolio investment strategies you implemented
during the Fund's abbreviated semiannual reporting period ended February 28,
2014?
A On the directional side of the portfolio, we implemented a number of long
exposures. These include holdings of euro-denominated bonds that are
convertible into equities. With these positions, we are seeking to have the
Fund benefit from an improvement in the European stock market, where we
think margin stabilization and modest price-to-earnings (P/E) expansion
could translate into solid risk-adjusted returns. In particular, we have
been emphasizing investments in economically sensitive financial and
service-oriented firms with less exposure to France and Italy.
Within the U.S., we are positive on business development companies, which
are significantly-regulated entities specializing in lending to small- and
mid-size companies. Stocks of such companies generally carry little
exposure to non-domestic risks. It is our belief that the U.S. economy will
grow more robustly than consensus market estimates, which supports our
taking the portfolio's long positions in equities. The Fund also had
meaningful exposure to securitized credit markets such as non-agency
mortgages, an area where we see opportunities to earn reasonable
risk-adjusted returns with less sensitivity to the direction of the U.S.
equity market. Because we seek to hedge out the accompanying interest-rate
risk in the portfolio, we are trying to isolate the cheapness of mortgage
bonds. Finally, the Fund held a variety of event-linked bonds, which are
designed to pay reasonable yields in exchange for insurance protection
against major calamities such as hurricanes, floods, and earthquakes. We
like event-linked bonds because of their historical lack of correlation to
any equity or fixed-income market risks.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 5
On the short side of the directional portfolio, we took a position with
respect to investment-grade debt in both Asia and Australia, areas that
we view as being vulnerable to the credit slowdown in China. China is
attempting to grow its economy at a 7.5% annual pace, while at the same time
contracting credit and relying on a shadow banking system that represents
approximately 70% of the country's gross domestic product (GDP). We felt
that investments in both the Asian and Australian credit markets are a
prudent and efficient way to get short exposure in the event of a Chinese
policy error. We are also shorting the portfolio at a very specific point on
the U.S. yield curve, as we do not believe the markets are adequately
prepared for the likely pace of the U.S. Federal Reserve's (the Fed's)
tightening of its accommodative monetary policy should the domestic economy
return to above-trend growth.
We also implemented a number of strategies within the portion of the Fund's
portfolio that utilizes trades with low correlations to the broader
markets. One of our core strategies ("global macro") seeks to benefit from
market distortions in relative value that often result from macroeconomic
factors. Currency long/short is a strategy whereby we take long portfolio
positions in a basket of emerging and developed market currencies, and
shorter positions in another basket of currencies that we expect to
underperform. Another portfolio strategy which we implemented was long/short
credit. This entails pairing long and short positions in two issuers within
the same industry sector for whom we expect performance to diverge.
We also initiated long/short trades within the portfolio's long/short
equity strategy, with one key position favoring regional banks with a
domestic focus over large-capitalized U.S. stocks with more global
exposure--particularly those with exposure to the emerging markets. Another
key strategy within the portfolio's long/short equity sleeve is a pairing
that favors Spain -- a country that has made meaningful strides with respect
to restructuring its economy -- over other parts of the euro zone. Under the
Fund's capital structure arbitrage investment strategy, we seek to take
advantage of mispricings within different parts of the capital structure. We
attempt to do this by, for instance, purchasing a firm's junior debt
securities if we believe their prices reflect an unrealistically high
assessment of the company's default risk, while simultaneously purchasing
tradable insurance in the form of a credit default swap on the firm's senior
debt. This strategy can add to the Fund's return if we are correct in our
assessment and the prices of the two different issues converge. Finally, the
Fund has a number of curve trades as part of the credit long/short strategy,
where the portfolio is long in one part of an individual issuer's yield
curve, and short in another part, depending on whether we believe the
issuer's yield curve will steepen or flatten.
6 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
Q What is your assessment of the current macroeconomic climate and the
opportunities it may present?
A Overall, we expect global economic growth to continue to strengthen. In the
U.S., we are looking for growth to move up into the range of its historic
long-term trend, supported by improvements in employment and the
availability of credit. At the same time, there will be disappointments
along the way, and with the Fed no longer fully committed to stepping up its
accommodative efforts to backstop economic conditions, asset prices will
likely experience significant volatility. Another macroeconomic development
we are examining is the lack of a clear definition when it comes to
conditions in the emerging versus developed markets. Many emerging economies
are actually in a better position from the standpoint of national debt
levels and current account flows, and we anticipate that performance trends
in global bond markets will become increasingly country-specific. Market
volatility and performance dispersion creates opportunities for an
uncorrelated trading strategy such as ours, and we will seek to find trades
that will help the Fund to capitalize on emerging themes.
Please refer to the Schedule of Investments on pages 16-25 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
The portfolio may invest in derivative securities, such as options, futures,
inverse floating-rate obligations, and swaps, among others, which can be
illiquid, may disproportionately increase losses, and have a potentially large
impact on the performance of the portfolio.
The Fund may take short positions, which involves leverage of its assets and
presents additional risks.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the Fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund employs leverage, which increases the volatility of investment returns
and subjects the Fund to magnified losses.
Investments in fixed-income securities involve interest rate, credit, inflation,
and reinvestment risks.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 7
Investments in high-yield or lower-rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The securities issued by U.S. Government sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
The portfolio may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund may invest in event-linked bonds, on which the return of principal and
the payment of interest are contingent on the non-occurrence of a pre-defined
"trigger" event, such as a hurricane or an earthquake of a specific magnitude.
The Fund may invest in floating-rate loans; the value of collateral, if any,
securing a floating-rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
The Fund is subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
These risks may increase share price volatility.
There is no assurance that these and other strategies used by the Fund will be
successful. Please see the prospectus for a more complete discussion of the
Fund's risks.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes.
8 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
Portfolio Summary | 2/28/14
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Securities 48.3%
Collateralized Mortgage Obligations 18.4%
Convertible Corporate Bonds 10.9%
International Corporate Bonds 7.1%
Senior Secured Loans 5.3%
Exchange Traded Funds 3.5%
U.S. Corporate Bonds 2.8%
U.S. Common Stocks 1.8%
Asset Backed Securities 1.9%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. JP Morgan Mortgage Trust, Floating Rate Note, 1/25/44 (144A) 10.47%
---------------------------------------------------------------------------------------------
2. Sequoia Mortgage Trust 2013-6, Floating Rate Note, 5/25/43 7.69
---------------------------------------------------------------------------------------------
3. GTP Towers Issuer LLC, 8.112%, 2/15/15 (144A) 5.51
---------------------------------------------------------------------------------------------
4. SPDR S&P Regional Banking ETF 4.38
---------------------------------------------------------------------------------------------
5. Mythen Re, Ltd., Floating Rate Note, 5/7/15 (Cat Bond) (144A) 2.83
---------------------------------------------------------------------------------------------
6. Caelus Re 2013, Ltd., Floating Rate Note, 4/7/17 (Cat Bond) (144A) 2.77
---------------------------------------------------------------------------------------------
7. Residential Reinsurance 2012, Ltd., Floating Rate Note, 12/6/16 (Cat Bond) (144A) 2.77
---------------------------------------------------------------------------------------------
8. Everglades Re, Ltd., Floating Rate Note, 4/30/14 (Cat Bond) (144A) 2.74
---------------------------------------------------------------------------------------------
9. Armor Re, Ltd., Floating Rate Note, 5/14/14 (Cat Bond) (144A) 2.67
---------------------------------------------------------------------------------------------
10. iShares US Regional Banks ETF 2.44
---------------------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 9
Prices and Distributions | 2/28/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/14 12/30/13*
--------------------------------------------------------------------------------
A $10.00 $10.00
--------------------------------------------------------------------------------
C $ 9.99 $10.00
--------------------------------------------------------------------------------
Y $10.00 $10.00
--------------------------------------------------------------------------------
Distributions per Share: 12/30/13*-2/28/14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $-- $-- $--
--------------------------------------------------------------------------------
C $-- $-- $--
--------------------------------------------------------------------------------
Y $-- $-- $--
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bank of America Merrill Lynch (BofA ML) 3-Month US Treasury Index is an
unmanaged market index of U.S. Treasury securities maturing in 90 days, that
assumes reinvestment of all income. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 11-13.
* The Fund commenced operation on December 30, 2013.
10 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
Performance Update | 2/28/14 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Long/Short Global Bond Fund at
public offering price during the periods shown, compared to that of the Bank of
America Merrill Lynch (BofA ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 0.00% -4.49%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 6, 2013,
as revised January 8, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.84% 1.60%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month US
Global Bond Fund Treasury Bill Index
12/31/2013 $ 9,550 $ 10,000
2/28/2014 $ 9,551 $ 10,000
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 11
Performance Update | 2/28/14 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Long/Short Global Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) -0.10% -1.10%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 6, 2013,
as revised January 8, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.59% 2.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month US
Global Bond Fund Treasury Bill Index
12/31/2013 $ 10,000 $ 10,000
2/28/2014 $ 9,890 $ 10,000
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
Performance Update | 2/28/14 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Long/Short Global Bond Fund during
the periods shown, compared to that of the Bank of America Merrill Lynch (BofA
ML) 3-month US Treasury Bill Index.
Average Semiannual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 0.00% 0.00%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 6, 2013,
as revised January 8, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.59% 1.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Long/Short BofA ML 3-month US
Global Bond Fund Treasury Bill Index
12/31/2013 $ 5,000,000 $ 5,000,000
2/28/2014 $ 5,000,000 $ 5,000,363
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Long/Short Global Bond Fund
Based on actual returns from December 31, 2013, through February 28, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 12/31/13 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 2/28/14 $1,000.00 $ 999.00 $1,000.00
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 2.55 $ 3.78 $ 2.14
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.55%,
2.30% and 1.30% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
60/365 (to reflect the partial year period).
14 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Long/Short Global Bond Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from December 31, 2013, through February 28, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 12/31/13 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 2/28/14 $1,005.67 $1,004.44 $1,006.08
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 2.56 $ 3.79 $ 2.14
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.55%,
2.30% and 1.30% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
60/365 (to reflect the partial year period).
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 15
Schedule of Investments | 2/28/14 (unaudited)
---------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
---------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE
BONDS -- 7.9%
ENERGY -- 1.0%
Integrated Oil & Gas -- 1.0%
EURO 100,000 A/NR Eni S.p.A., 0.625%, 1/18/16 $ 148,228
100,000 BBB/NR Lukoil International Finance BV,
2.625%, 6/16/15 104,500
-----------
$ 252,728
-----------
Total Energy $ 252,728
---------------------------------------------------------------------------------------------------
MATERIALS -- 0.4%
Diversified Metals & Mining -- 0.4%
100,000 BB/NR Vedanta Resources Jersey, Ltd.,
5.5%, 7/13/16 $ 100,750
-----------
Total Materials $ 100,750
---------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 1.2%
Electrical Components &
Equipment -- 0.6%
EURO 100,000 BB-/NR SGL Carbon SE, 3.5%, 6/30/16 $ 155,262
---------------------------------------------------------------------------------------------------
Trading Companies &
Distributors -- 0.6%
EURO 100,000 B+/NR Kloeckner & Co. Financial Services
SA, 2.5%, 12/22/17 $ 135,777
-----------
Total Capital Goods $ 291,039
---------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.8%
Hotels, Resorts & Cruise Lines -- 0.8%
GBP 100,000 NR/NR TUI Travel Plc, 4.9%, 4/27/17 $ 214,174
-----------
Total Consumer Services $ 214,174
---------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.5%
Multi-Sector Holdings -- 2.0%
EURO 100,000 NR/NR GBL Verwaltung SA, 1.25%, 2/7/17 $ 156,727
EURO 100,000 NR/NR Groupe Bruxelles Lambert SA,
0.125%, 9/21/15 175,369
EURO 100,000 A-/NR Industrivarden AB, 2.5%, 2/27/15 (144A) 177,719
-----------
$ 509,815
---------------------------------------------------------------------------------------------------
Specialized Finance -- 0.5%
100,000 BBB/NR Glencore Finance Europe SA,
5.0%, 12/31/14 $ 113,000
-----------
Total Diversified Financials $ 622,815
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
---------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
---------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.8%
Diversified Real Estate Activities -- 0.8%
GBP 100,000 NR/NR The British Land Co. Jersey, Ltd.,
1.5%, 9/10/17 $ 194,683
-----------
Total Real Estate $ 194,683
---------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.6%
Integrated Telecommunication
Services -- 0.6%
EURO 100,000 NR/NR Solidium Oy, 0.5%, 9/29/15 $ 142,134
-----------
Total Telecommunication Services $ 142,134
---------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.6%
Government -- 0.6%
EURO 100,000 B/Ba3 Parpublica -- Participacoes Publicas
SGPS SA, 5.25%, 9/28/17 $ 153,673
-----------
Total Government $ 153,673
---------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $1,916,016) $ 1,971,996
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Shares
---------------------------------------------------------------------------------------------------
COMMON STOCKS -- 1.3%
DIVERSIFIED FINANCIALS -- 1.3%
Asset Management & Custody
Banks -- 1.3%
3,450 Ares Capital Corp. $ 62,204
6,800 BlackRock Kelso Capital Corp. 64,804
6,500 Fifth Street Finance Corp. 63,830
3,500 Golub Capital BDC, Inc. 65,660
4,000 Hercules Technology Growth Capital, Inc. 62,960
-----------
$ 319,458
-----------
Total Diversified Financials $ 319,458
---------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $314,763) $ 319,458
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Principal
Amount ($)
---------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 1.3%
BANKS -- 0.9%
Thrifts & Mortgage Finance -- 0.9%
100,000 NR/NR CAM Mortgage Trust, 5.5%, 12/15/53
(Step) (144A) $ 99,533
48,438 1.46 B+/B2 First Franklin Mortgage Loan Trust
2003-FFC, Floating Rate Note, 11/25/32 47,071
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 17
Schedule of Investments | 2/28/14 (unaudited) (continued)
---------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
---------------------------------------------------------------------------------------------------
Thrifts & Mortgage
Finance -- (continued)
46,500 BBB/NR Icon Brands Holdings LLC, 4.229%,
1/25/43 (144A) $ 46,484
42,691 3.16 A/Baa2 Irwin Whole Loan Home Equity Trust
2003-C, Floating Rate Note, 6/25/28 42,853
-----------
$ 235,941
-----------
Total Banks $ 235,941
---------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.4%
Other Diversified Financial
Services -- 0.4%
100,000 BBB/NR TAL Advantage LLC, 4.1%, 2/22/39 $ 100,774
-----------
Total Diversified Financials $ 100,774
---------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $335,994) $ 336,715
---------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 13.3%
BANKS -- 12.8%
Thrifts & Mortgage Finance -- 12.8%
56,878 1.16 A/Baa1 Bayview Commercial Asset Trust, Floating
Rate Note, 1/25/35 (144A) $ 51,589
100,000 BB/NR Bear Stearns Commercial Mortgage
Securities Trust 2006-PWR14,
5.273%, 12/11/38 99,216
175,000 5.57 NR/Ba3 COBALT Commercial Mortgage Trust
2007-C2, Floating Rate Note,
4/15/47 (144A) 177,480
175,000 NR/B3 COMM 2006-C8 Mortgage Trust,
5.377%, 12/10/46 173,162
175,000 3.26 BB-/NR Credit Suisse Mortgage Capital
Certificates, Floating Rate Note, 2/15/29 175,022
80,000 5.59 BB-/NR GS Mortgage Securities Trust
2006-GG6, Floating Rate Note, 4/10/38 81,674
200,000 B/B3 JP Morgan Chase Commercial
Mortgage Securities Trust 2006-CIBC16,
5.623%, 5/12/45 201,621
100,000 3.12 BB/NR JP Morgan Chase Commercial
Mortgage Securities Trust 2013-FL3,
Floating Rate Note, 4/15/28 (144A) 99,846
1,000,000 3.50 AAA/NR JP Morgan Mortgage Trust, Floating
Rate Note, 1/25/44 (144A) 980,000
150,000 5.28 BB/NR LB-UBS Commercial Mortgage Trust
2006-C1, Floating Rate Note, 2/15/41 151,889
55,000 5.48 NR/Ba2 ML-CFC Commercial Mortgage Trust
2006-3, Floating Rate Note, 7/12/46 54,353
The accompanying notes are an integral part of these financial statements.
18 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
---------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
---------------------------------------------------------------------------------------------------
Thrifts & Mortgage
Finance -- (continued)
16,391 0.94 AAA/Aaa Nomura Asset Acceptance Corp
Alternative Loan Trust Series 2004-AR2,
Floating Rate Note, 10/25/34 $ 16,301
769,175 3.00 NR/Aaa Sequoia Mortgage Trust 2013-6, Floating
Rate Note, 5/25/43 719,542
125,000 4.75 NR/NR Volt LLC , Series 14-NPL1, Floating Rate
Note, 10/27/53 121,823
100,000 5.97 B-/B1 Wachovia Bank Commercial Mortgage
Trust Series 2007-C34, Floating Rate
Note, 5/15/46 102,600
-----------
$ 3,206,118
-----------
Total Banks $ 3,206,118
---------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.5%
Other Diversified Financial
Services -- 0.5%
125,000 5.22 NR/B1 LB-UBS Commercial Mortgage Trust
2005-C2, Floating Rate Note, 4/15/40 $ 126,602
-----------
Total Diversified Financials $ 126,602
---------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $3,334,173) $ 3,332,720
---------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 7.2%
INSURANCE -- 5.1%
Reinsurance -- 5.1%
250,000 4.25 BB+/NR Armor Re, Ltd., Floating Rate Note,
5/14/14 (Cat Bond) (144A) $ 250,325
250,000 6.91 NR/NR Caelus Re, Ltd., Floating Rate Note,
4/7/17 (Cat Bond) (144A) 259,350
250,000 17.77 B+/NR Everglades Re, Ltd., Floating Rate
Note, 4/30/14 (Cat Bond) (144A) 256,100
250,000 8.53 NR/Ba3 Mythen Re, Ltd., Floating Rate Note,
5/7/15 (Cat Bond) (144A) 264,525
250,000 4.57 BB+/NR Residential Reinsurance 2012, Ltd.,
Floating Rate Note, 12/6/16 (Cat
Bond) (144A) 259,025
-----------
$ 1,289,325
-----------
Total Insurance $ 1,289,325
---------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.1%
Integrated Telecommunication
Services -- 2.1%
500,000 NR/Ba2 GTP Towers Issuer LLC, 8.112%,
2/15/15 (144A) $ 515,770
-----------
Total Telecommunication Services $ 515,770
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 19
Schedule of Investments | 2/28/14 (unaudited) (continued)
---------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
---------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $1,808,341) $ 1,805,095
---------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 3.8%**
ENERGY -- 0.4%
Oil & Gas Exploration &
Production -- 0.4%
100,000 3.88 BB-/Ba2 Fieldwood Energy LLC, 9/25/18 $ 100,427
-----------
Total Energy $ 100,427
---------------------------------------------------------------------------------------------------
MATERIALS -- 0.5%
Commodity Chemicals -- 0.1%
30,000 0.00 NR/NR Nexeo Solutions LLC, Term Loan B3,
9/9/17 $ 30,038
---------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.2%
50,000 5.00 B+/B2 Univar, Term B Loan, 2/14/17 $ 49,760
---------------------------------------------------------------------------------------------------
Paper Products -- 0.2%
50,000 5.25 B/B1 Exopack Holdings SA, 4/14/19 $ 50,792
-----------
Total Materials $ 130,590
---------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.5%
Aerospace & Defense -- 0.5%
50,000 6.25 BB-/WR DynCorp International, Inc., 7/7/16 $ 50,438
50,000 5.25 B/B2 Sequa Corp., 6/19/17 49,344
25,000 0.00 NR/NR Wesco Aircraft Hardare Corp., Tranche B
Term Loan (First Lien), 2/24/21 25,055
-----------
$ 124,837
-----------
Total Capital Goods $ 124,837
---------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES &
SUPPLIES -- 0.6%
Diversified Support Services -- 0.6%
50,000 0.00 NR/NR Aegis Toxicology Corp., Tranche B Term
Loan (First Lien), 2/20/21 $ 50,250
100,000 0.00 NR/NR Seadrill Operating LP, Initial Term
Loan, 2/14/21 100,571
-----------
$ 150,821
-----------
Total Commercial Services & Supplies $ 150,821
---------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.3%
Air Freight & Logistics -- 0.1%
5,150 0.15 CCC+/B2 CEVA Group Plc, Dollar Tranche B
Pre-Funded Term Loan, 8/31/16 $ 5,144
19,850 5.25 CCC+/B2 CEVA Logistics US Holdings, Inc., 8/31/16 19,850
-----------
$ 24,994
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
---------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
---------------------------------------------------------------------------------------------------
Trucking -- 0.2%
50,000 8.00 CCC+/NR YRC Worldwide, Inc., Initial Term
Loan, 2/12/19 $ 50,312
-----------
Total Transportation $ 75,306
---------------------------------------------------------------------------------------------------
CONSUMER DURABLES &
APPAREL -- 0.2%
Leisure Products -- 0.2%
37,000 0.00 NR/NR Party City Holdings, Inc., 2014
Replacement Term Loan, 7/27/19 $ 37,092
-----------
Total Consumer Durables & Apparel $ 37,092
---------------------------------------------------------------------------------------------------
MEDIA -- 0.2%
Broadcasting -- 0.1%
23,485 3.00 NR/NR CBS Outdoor Americas Capital llc,
Tranche B Term Loan (First Lien), 1/15/21 $ 23,478
---------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.1%
25,000 6.50 B/NR Deluxe Entertainment Services Group.,
Inc., Tranche B Term Loan (First Lien),
2/26/20 $ 25,115
-----------
Total Media $ 48,593
---------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.3%
Agricultural Products -- 0.3%
75,000 4.50 B/B1 Arysta Lifescience SPC LLC, 5/29/20 $ 75,609
-----------
Total Food, Beverage & Tobacco $ 75,609
---------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL
PRODUCTS -- 0.3%
Personal Products -- 0.3%
75,000 0.00 NR/NR Atrium Innovations, Inc., Tranche B
Term Loan (Second Lien), 7/29/21 $ 76,594
-----------
Total Household & Personal Products $ 76,594
---------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.1%
Systems Software -- 0.1%
37,000 0.00 NR/NR SafeNet, Inc., Tranche B Term
Loan, 2/28/20 $ 36,815
-----------
Total Software & Services $ 36,815
---------------------------------------------------------------------------------------------------
UTILITIES -- 0.4%
Electric Utilities -- 0.2%
50,000 0.00 B+/B3 FR Dixie Acquisition Corp., 1/23/21 $ 50,333
---------------------------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 0.2%
50,000 0.00 NR/NR Atlantic Power LP, Term Loan B, 2/20/21
$ 50,344
-----------
Total Utilities $ 100,677
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 21
Schedule of Investments | 2/28/14 (unaudited) (continued)
---------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (b) Ratings
Amount ($) (unaudited) (unaudited) Value
---------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE
LOAN INTERESTS
(Cost $949,688) $ 957,361
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Shares
---------------------------------------------------------------------------------------------------
EXCHANGE TRADED FUNDS -- 2.5%
DIVERSIFIED FINANCIALS -- 2.5%
Asset Management & Custody
Banks -- 2.5%
6,820 iShares US Regional Banks ETF $ 228,265
10,288 SPDR S&P Regional Banking ETF 410,388
-----------
$ 638,653
-----------
Total Diversified Financials $ 638,653
---------------------------------------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUNDS
(Cost $624,185) $ 638,653
---------------------------------------------------------------------------------------------------
TEMPORARY CASH
INVESTMENTS -- 34.9%
2,500,000 AA+/Aaa U.S. Treasury Bills, 3/20/14 (c) $ 2,499,968
6,250,000 AA+/Aaa U.S. Treasury Bills, 4/24/14 (c) 6,249,549
---------------------------------------------------------------------------------------------------
TOTAL TEMPORARY
CASH INVESTMENTS
(Cost $8,749,591) $ 8,749,517
---------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN
SECURITIES -- 72.2%
(Cost $18,032,751) (a) $18,111,515
---------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 27.8% $ 6,961,215
---------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $25,072,730
===================================================================================================
NR Not rated by either S&P or Moody's.
WR Withdrawn rating.
(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 February 28, 2014, the value of these securities
amounted to $3,437,746 or 13.7% of total net assets.
(Step) Bond issued with an initial coupon rate which converts to a higher
rate at a later date.
(Cat Bond) Catastrophe bond is a high-yield debt instrument that is
usually insurance linked and meant to raise money in case of a
catastrophe.
** Senior floating rate loan interests in which the Fund invests
generally pay interest at rates that are periodically redetermined
by reference to a base lending rate plus a premium. These base
lending rates are generally (i) the lending rate offered by one or
more major European banks, such as LIBOR (London InterBank Offered
Rate), (ii) the prime rate offered by one or more major United
States banks, (iii) the rate of a certificate of deposit or (iv)
other base lending rates used by commercial lenders. The rate shown
is the coupon rate at period end.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
(a) At February 28, 2014, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $18,032,751 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $83,537
Aggregate gross unrealized depreciation for all investments in which there
is an excess of tax cost over value (4,773)
-------
Net unrealized appreciation $78,764
=======
(b) Debt obligation with a variable interest rate. Rate shown is rate at
end of period.
(c) Security issued with a zero coupon. Income is earned through
accretion of discount.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EURO Euro
GBP British Pound Sterling
Purchases and sales of securities (excluding temporary cash investments) for the
period ended February 28, 2014 aggregated $20,280,516 and $5,743,033,
respectively.
CREDIT DEFAULT SWAP AGREEMENTS - BUY PROTECTION
------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Received/ Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Paid) (Depreciation)
------------------------------------------------------------------------------------------------------------
(250,000) Citibank NA Alcoa, Inc. 1.00% 3/20/19 $ 10,592 $ (3,916)
(250,000) Citibank NA Caesars 5.00% 3/20/16 65,625 $ (2,467)
Entertainment
Operating Co., Inc.
(765,000) Citibank NA CDX.NA.HY.21 5.00% 12/20/18 (151,470) $ (7,544)
35-100%
(250,000) Citibank NA United Rentals 5.00% 3/20/19 (36,198) $ (5,098)
(North America), Inc.
EURO (375,000) JPMorgan Glencore 1.00% 3/20/19 13,379 $ (980)
Chase Bank NA International AG
(625,000) Morgan
Stanley & Co. ITRAXX.ASIA.XJ.IG.20.V1 1.00% 12/20/18 17,502 $ (9,632)
(625,000) Morgan Stanley ITRAXX.AUST.20.V1 1.00% 12/20/18 4,028 $ (4,904)
& Co.
------------------------------------------------------------------------------------------------------------
$ (76,542) $ (34,541)
============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 23
Schedule of Investments | 2/28/14 (unaudited) (continued)
CREDIT DEFAULT SWAP AGREEMENTS - SELL PROTECTION
------------------------------------------------------------------------------------------------------------
Net
Premiums Unrealized
Notional Obligation Expiration Received/ Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Date (Paid) (Depreciation)
------------------------------------------------------------------------------------------------------------
62,500 Citibank NA Caesars 5.00% 12/20/14 $ (5,156) $ 226
Entertainment
Operating Co., Inc.
250,000 Citibank NA Caesars 5.00% 3/20/19 (133,125) (500)
Entertainment
Operating Co., Inc.
250,000 Citibank NA CDX.NA.IG.9 0-3% 5.00% 12/20/14 (7,695) 2,465
250,000 Citibank NA Clear Channel 5.00% 12/20/14 564 2,726
Communications, Inc.
250,000 Citibank NA Freeport-McMoRan 1.00% 3/20/19 (5,920) 2,323
Copper & Gold, Inc.
250,000 Citibank NA Hertz Corp. 5.00% 3/20/19 33,704 1,749
EURO 375,000 Citibank NA ITRAXX.EUR.9 0-3% 5.00% 6/20/15 (5,154) 5,082
125,000 Citibank NA JC Penney Co., Inc. 5.00% 12/20/14 (2,500) 1,233
250,000 Citibank NA MBIA Insurance Corp. 5.00% 3/20/15 (625) 4,340
125,000 Citibank NA RadioShack Corp. 5.00% 12/20/14 (10,000) 3,155
125,000 Citibank NA RadioShack Corp. 5.00% 9/20/14 (5,937) 1,721
250,000 Citibank NA Sears Roebuck 5.00% 3/20/15 (16,250) 10,903
Acceptance Corp.
250,000 Citibank NA Toys R Us, Inc. 5.00% 12/20/14 (5,000) 2,722
250,000 Citibank NA Travelport LLC 5.00% 3/20/15 -- 3,530
EURO 375,000 JPMorgan Arcelormittal 1.00% 3/20/19 (35,081) (2,165)
Chase Bank NA
EURO 250,000 JPMorgan Norske 5.00% 3/20/15 (20,417) 9,209
Chase Bank NA Skogindustrier ASA
------------------------------------------------------------------------------------------------------------
$(218,592) $ 48,719
============================================================================================================
(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.
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EURO Euro
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.
24 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services) are categorized as
Level 3. See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of February 28, 2014, in
valuing the Fund's assets:
-----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 1,971,996 $ -- $ 1,971,996
Common Stocks 319,458 -- -- 319,458
Asset Backed Securities -- 336,715 -- 336,715
Collateralized Mortgage Obligations -- 3,332,720 -- 3,332,720
Corporate Bonds -- 1,805,095 -- 1,805,095
U.S. Government and Agency Obligations 8,749,517 8,749,517
Senior Floating Rate Loan Interests -- 957,361 -- 957,361
Exchange Traded Fund 638,653 -- -- 638,653
Temporary Cash Investments -- -- -- --
-----------------------------------------------------------------------------------------------
Total $ 958,111 $17,153,404 $ -- $18,111,515
===============================================================================================
Other Financial Instruments
Unrealized Appreciation on
Credit Default Swaps $ -- $ 14,178 $ -- $ 14,178
Unrealized Depreciation on
Futures Contracts (11,617) -- -- (11,617)
Unrealized Depreciation on forward
foreign currency contracts -- (17,019) -- (17,019)
-----------------------------------------------------------------------------------------------
Total Other Financial Instruments $ (11,617) $ (2,841) $ -- $ (14,458)
===============================================================================================
During the period ended February 28, 2014, there were no transferred between
Level 1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 25
Statement of Assets and Liabilities | 2/28/14 (unaudited)
ASSETS:
Investment in securities, at value (cost $18,032,751) $18,111,515
Cash 8,967,006
Futures collateral 88,815
Foreign currencies, at value (cost $56,546) 56,840
Receivables --
Swap payments 166,027
Interest 34,818
Due from Pioneer Investment Management, Inc. 8,307
Net unrealized appreciation on credit default swaps 14,178
Other assets 173,844
-------------------------------------------------------------------------------------
Total assets $27,621,350
=====================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 2,194,454
Net unrealized depreciation on forward foreign currency contracts 17,019
Net unrealized depreciation on futures contracts 11,617
Credit default swaps, premiums received 295,134
Due to affiliates 10,004
Accrued expenses 20,392
-------------------------------------------------------------------------------------
Total liabilities $ 2,548,620
=====================================================================================
NET ASSETS:
Paid-in capital $25,079,624
Net investment loss (66,035)
Accumulated net realized loss on investments, foreign currency
transactions, futures and swaps (5,672)
Net unrealized appreciation on investments 78,764
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (16,512)
Net unrealized depreciation on futures contracts (11,617)
Net unrealized appreciation on credit default swaps 14,178
-------------------------------------------------------------------------------------
Total net assets $25,072,730
=====================================================================================
NET ASSET VALUE PER SHARE: (a)
(No par value, unlimited number of shares authorized)
Class A (based on $8,412,996/841,304 shares) $ 10.00
Class C (based on $8,323,020/833,333 shares) $ 9.99
Class Y (based on $8,336,714/833,333 shares) $ 10.00
MAXIMUM OFFERING PRICE:
Class A ($10.00 (divided by) 95.50%) $ 10.47
=====================================================================================
(a) The Fund commenced operations on December 30, 2013.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
Statement of Operations (unaudited)
For the Period from 12/30/13 (Commencement of Operations) to 2/28/14
INVESTMENT INCOME:
Dividends $ 541
Interest 3,841
-----------------------------------------------------------------------------------------
Total investment income $ 4,382
-----------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 43,073
Distribution fees
Class A 3,422
Class C 13,662
Administrative reimbursement 1,190
Custodian fees 2,400
Professional fees 16,680
Printing expense 3,300
Fees and expenses of nonaffiliated Trustees 1,320
Miscellaneous 1,980
-----------------------------------------------------------------------------------------
Total expenses $ 87,027
-----------------------------------------------------------------------------------------
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (16,610)
-----------------------------------------------------------------------------------------
Net expenses $ 70,417
-----------------------------------------------------------------------------------------
Net investment loss $ (66,035)
-----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
CREDIT DEFAULT SWAPS, FUTURES CONTRACTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 161
Futures contracts (119)
Credit default swaps (4,975)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (739) $ (5,672)
-----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 78,764
Futures contracts (11,617)
Credit default swaps 14,178
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (16,512) $ 64,813
-----------------------------------------------------------------------------------------
Net gain on investments, futures contracts, credit default swaps
and foreign currency transactions $ 59,141
-----------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (6,894)
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 27
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------
12/30/13(a) to
2/28/14
(unaudited)
------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ (66,035)
Net realized gain (loss) on investments, futures contracts, credit default swaps
and foreign currency transactions (5,672)
Change in net unrealized appreciation (depreciation) on investments,
futures contracts, credit default swaps and foreign currency transactions 64,813
------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (6,894)
------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 25,079,624
Reinvestment of distributions --
Cost of shares repurchased --
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 25,079,624
------------------------------------------------------------------------------------------------
Net increase in net assets $ 25,072,730
NET ASSETS:
Beginning of period $ --
------------------------------------------------------------------------------------------------
End of period $ 25,072,730
------------------------------------------------------------------------------------------------
Net investment loss $ (66,035)
================================================================================================
(a) The Fund commenced operation on December 30, 2014.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
--------------------------------------------------------------------------------
'14 Shares '14 Amount
(unaudited) (unaudited)
--------------------------------------------------------------------------------
Class A*
Shares sold 841,304 $8,412,958
Reinvestment of distributions -- --
Less shares repurchased -- --
--------------------------------------------------------------------------------
Net increase 841,304 $8,412,958
================================================================================
Class C *
Shares sold 833,333 $8,333,333
Reinvestment of distributions -- --
Less shares repurchased -- --
--------------------------------------------------------------------------------
Net increase 833,333 $8,333,333
================================================================================
Class Y *
Shares sold 833,333 $8,333,333
Reinvestment of distributions -- --
Less shares repurchased -- --
--------------------------------------------------------------------------------
Net increase 833,333 $8,333,333
================================================================================
* Class A, Class C and Class Y shares were first publicly offered on
December 31, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 29
Financial Highlights
--------------------------------------------------------------------------------
12/31/13 (a)
to 2/28/14
(unaudited)
--------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.00
--------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.02)
Net realized and unrealized gain on investments 0.02
--------------------------------------------------------------------------------
Net increase in net assets from investment operations $ --
--------------------------------------------------------------------------------
Net asset value, end of period $ 10.00
================================================================================
Total return* 0.00%
Ratio of net expenses to average net assets 1.55%**
Ratio of net investment income to average net assets (1.44)%**
Portfolio turnover rate 639%**
Net assets, end of period (in thousands) $ 8,413
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 1.96%**
Net investment loss (1.85)%**
================================================================================
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
(a) Class A shares were first publicly offered on December 31, 2013.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
--------------------------------------------------------------------------------
12/31/13 (a)
to 2/28/14
(unaudited)
--------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.00
--------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.04)
Net realized and unrealized gain on investments 0.03
--------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ (0.01)
--------------------------------------------------------------------------------
Net asset value, end of period $ 9.99
================================================================================
Total return* (0.10)%
Ratio of net expenses to average net assets 2.30%**
Ratio of net investment income to average net assets (2.19)%**
Portfolio turnover rate 639%**
Net assets, end of period (in thousands) $ 8,323
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 2.71%**
Net investment loss (2.60)%**
================================================================================
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
(a) Class C shares were first publicly offered on December 31, 2013.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 31
Financial Highlights (continued)
--------------------------------------------------------------------------------
12/31/13 (a)
to 2/28/14
(unaudited)
--------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.00
--------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.02)
Net realized and unrealized gain on investments 0.02
--------------------------------------------------------------------------------
Net increase in net assets from investment operations $ --
--------------------------------------------------------------------------------
Net asset value, end of period $ 10.00
================================================================================
Total return* 0.00%
Ratio of net expenses to average net assets 1.30%**
Ratio of net investment income to average net assets (1.19)%**
Portfolio turnover rate 639%**
Net assets, end of period (in thousands) $ 8,337
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Total expenses 1.71%**
Net investment loss (1.60)%**
================================================================================
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
(a) Class Y shares were first publicly offered on December 31, 2013.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
Notes to Financial Statements | 2/28/14 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Long/Short Global Bond Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a non-diversified,
open-end management investment company. The Fund's investment objective is to
seek total return.
The Fund offers three classes of shares designated as Class A, Class C, and
Class Y shares. Class A, Class C and Class Y shares were first publicly offered
on December 31, 2013. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has identical rights (based on relative
net asset values) to assets and liquidation proceeds. Share classes can bear
different rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 33
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Senior
floating rate loan interests (senior loans) are valued in accordance with
guidelines established by the Board of Trustees at the mean between the last
available bid and asked prices from one or more brokers or dealers as
obtained from Loan Pricing Corporation, an independent pricing service. If
price information is not available from Loan Pricing Corporation, or if the
price information is deemed to be unreliable, price information will be
obtained from an alternative loan interest pricing service. If no reliable
price quotes are available from either the primary or alternative pricing
service, broker quotes will be solicited. Fixed income securities with
remaining maturity of more than sixty days are valued at prices supplied by
independent pricing services, which consider such factors as market prices,
market events, quotations from one or more brokers, Treasury spreads,
yields, maturities and ratings. Valuations may be supplemented by dealers
and other sources, as required. Equity securities that have traded on an
exchange are valued at the last sale price on the principal exchange where
they are traded. Equity securities that have not traded on the date of
valuation, or securities for which sale prices are not available, generally
are valued using the mean between the last bid and asked prices. Short-term
fixed income securities with remaining maturities of sixty days or less
generally are valued at amortized cost. Shares of money market mutual funds
are valued at such funds' net asset value.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
Securities or loan interests for which independent pricing services are
unable to supply prices or for which market prices and/or quotations are not
readily available or are considered to be unreliable are valued by a fair
valuation team comprised of certain personnel of Pioneer Investment
Management, Inc. (PIM), the Fund's investment adviser, pursuant to
procedures adopted by the Fund's Board of Trustees. PIM's fair valuation
team uses fair value methods approved by the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may include
credit ratings, the financial condition of the company, current market
conditions and comparable securities. The Fund may use fair value methods if
it is determined that a significant event has occurred after the close of
the exchange or market on which the security trades and prior to the
34 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
determination of the Fund's net asset value. Examples of a significant event
might include political or economic news, corporate restructurings, natural
disasters, terrorist activity or trading halts. Thus, the valuation of the
Fund's securities may differ significantly from exchange prices and such
differences could be material. PIM's fair valuation team is responsible for
monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee of the Board of Trustees.
At February 28, 2014, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services).
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on debt securities are accreted/amortized for
financial reporting purposes over the life of the respective securities, and
such accretion/amortization is included in interest income.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income is recorded on the
accrual basis. All discounts/premiums on debt securities are
accreted/amortized into interest income for financial reporting purposes.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in the market prices of those securities but are included
with the net realized and unrealized gain or loss on investments.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 35
C. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at
February 28, 2014 was $88,185. Subsequent payments for futures contracts
("variation margin") are paid or received by the Fund, depending on the
daily fluctuation in the value of the contracts, and are recorded by the
Fund as unrealized appreciation or depreciation. When the contract is
closed, the Fund realizes a gain or loss equal to the difference between the
opening and closing value of the contract as well as any fluctuation in
foreign currency exchange rates where applicable. The use of futures
contracts involves to varying degrees, element of market, interest rate,
currency exchange rate and counterparty risks, which may exceed the amount
recognized by the Fund. Changes in value of the contracts may not directly
correlate to the changes in value of the underlying securities. The average
value of contracts open during the period ended February 28, 2014 was
$4,173,861.
At February 28, 2014, open futures contracts were as follows:
--------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation/
Type Long/(Short) Month Value (Depreciation)
--------------------------------------------------------------------------------
90 Days Europe Futures (26) 12/16 $ (6,370,325) $ (5,363)
5 Years U.S.
Treasury Note (10) 3/14 (1,209,063) (1,984)
S&P 500 EMINI Futures (7) 6/14 (647,710) (4,270)
--------------------------------------------------------------------------------
Total $ (11,617)
================================================================================
D. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation is
recorded in the Fund's financial statements. The Fund records realized gains
and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
36 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
February 28, 2014, the Fund did not accrue any interest or penalties with
respect to uncertain tax positions, which, if applicable, would be recorded
as an income tax expense in the Statement of Operations.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the Fund's taxable year.
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned no underwriting commissions on the sale of Class A shares during the
period ended February 28, 2014.
G. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 37
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
H. Risks
When interest rates rise, the prices of fixed-income securities in the Fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise. Investments in the
Fund are subject to possible loss due to the financial failure of underlying
issues and their ability to meet their debt obligations. The Fund's
prospectus contains unaudited information regarding the Fund's principal
risks. Please refer to that document when considering the Fund's principal
risks.
I. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may buy or
sell credit default swap contracts to seek to increase the Fund's income, or
to attempt to hedge the risk of default on portfolio securities. A credit
default swap index is used to hedge risk or take a position on a basket of
credit entities or indices. As a seller of protection, the Fund would be
required to pay the notional (or other agreed-upon) value of the referenced
debt obligation to the counterparty in the event of a default by a U.S. or
foreign corporate issuer of a debt obligation, which would likely result in
a loss to the Fund. In return, the Fund would receive from the counterparty
a periodic stream of payments during the term of the contract provided that
no event of default occurred. The maximum exposure of loss to the seller
would be the notional value of the credit default swaps outstanding. If no
default occurs, the Fund would keep the stream of payments and would have no
payment obligation. The Fund may also buy credit default swap contracts in
order to hedge against the risk of default of debt securities, in which case
the Fund would function as the counterparty referenced above.
When the Fund enters into a credit default swap contract, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the right to receive a contingent payment. An upfront payment
made by the Fund, as the protection buyer, is recorded as an asset in the
Statement of Assets and Liabilities. Periodic payments received or paid by
the Fund are recorded as realized gains or losses in the Statement of
Operations.
38 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Payments received or made as a result of a credit event or upon
termination of the contract are recognized, net of the appropriate amount of
the upfront payment, as realized gains or losses in the Statement of
Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Open credit default swap contracts at February 28, 2014 are listed in the
Schedule of Investments. The average value of swap contracts open during the
period ended February 28, 2014 was $7,818,074.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at an annual rate of 1.05% of
the average daily net assets up to $1 billion of the Fund and 0.95% of the
Fund's average daily net assets over $1 billion of the Fund. For the period
ending February 28, 2014, the effective management fee was equivalent to 1.05%
of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.55%, 2.30% and 1.30% of the average daily
net assets attributable to Class A, Class C and Class Y shares, respectively.
These expense limitations are in effect through January 1, 2015. Fees waived and
expenses reimbursed during the period ended February 28, 2014 are reflected on
the Statement of Operations. Fees and expenses of other investment companies in
which the Fund may invest are not included in the expense limitations noted
above. There can be no assurance that PIM will extend the expense limitation
agreement for a class of shares beyond the date referred to above.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 39
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
$9,433 in management fees, administrative costs and certain other reimbursements
payable to PIM at February 28, 2014.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the period ended February 28, 2014, there were no out-of-pocket expenses,
transfer agents fees and out-of-pocket reimbursements payable.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $571 in distribution fees payable to PFD
at February 28, 2014.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class R, Class Y or Class Z shares. Proceeds from the CDSC are
paid to PFD. For the period ended February 28, 2014, there were no CDSCs paid to
PFD.
40 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
5. Forward Foreign Currency Contracts
At February 28, 2014, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the period ended February 28, 2014 was
$2,492,317.
Open forward foreign currency contracts at February 28, 2014 were as follows:
------------------------------------------------------------------------------------------
Net Net Unrealized
Contracts to In Exchange Settlement Appreciation
Currency Deliver For Date Value (Depreciation)
------------------------------------------------------------------------------------------
BRL (Brazilian Real) (1,308,576) $ (557,943) 3/6/14 $ 560,802 $ 2,859
BRL (Brazilian Real) 1,308,576 (539,263) 3/6/14 557,943 18,680
CAD (Canadian
Dollar) (261,211) (236,026) 3/6/14 236,342 316
CHF (Swiss Franc) (331,809) (377,683) 3/6/14 368,221 (9,462)
CLP (Chilean Peso) (194,715,981) (348,218) 3/6/14 346,408 (1,810)
CZK (Czech
Republic Koruna) (9,864,341) (498,911) 3/6/14 485,290 (13,621)
EURO (European Euro) 109,333 151,090 5/5/14 (147,483) 3,607
EURO (European Euro) (883,931) (1,221,530) 5/5/14 1,194,370 (27,160)
EURO (European Euro) (538,300) (743,903) 3/6/14 728,856 (15,047)
GBP (British
Pound Sterling) (240,887) (403,494) 5/6/14 396,674 (6,820)
GBP (British
Pound Sterling) (223,744) (374,956) 3/6/14 363,977 (10,979)
HUF (Hungarian
Forint) (53,707,909) (239,714) 3/6/14 235,838 (3,876)
IDR (Indonesian
Rupiah) 2,236,180,276 (185,267) 3/6/14 192,560 7,293
INR (Indian Rupee) 26,707,736 (425,012) 3/6/14 432,269 7,257
JPY (Japanese Yen) (63,967,096) (628,459) 3/6/14 634,420 5,961
KRW (South
Korean Won) 130,413,071 (120,798) 3/6/14 122,272 1,474
MXN (Mexican Peso) 4,805,140 (358,771) 3/6/14 361,992 3,221
NGN (Nigerian Naira) 10,456,083 (62,424) 3/18/14 63,018 594
NOK (Norwegian
Krone) 754,540 (120,726) 3/6/14 125,846 5,120
NZD (New
Zealand Dollar) 738,391 (606,602) 3/6/14 619,610 13,008
PLN (Polish Zloty) (241,011) (241,010) 3/6/14 248,648 7,638
RUB (Russian Ruble) 6,098,676 169,348 3/6/14 (174,015) (4,667)
SEK (Swedish Krone) 797,501 (122,226) 3/6/14 124,561 2,335
SGD (Singapore
Dollar) (465,575) (367,260) 3/6/14 367,157 (103)
TRY (Turkish Lira) (266,835) (120,824) 3/6/14 118,118 (2,706)
TWD (New
Taiwan Dollar) (7,343,525) 242,241 3/6/14 (242,372) (131)
------------------------------------------------------------------------------------------
Total $(17,019)
==========================================================================================
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 41
6. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the period ended February 28, 2014, the Fund's expenses
were not reduced under such arrangements.
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until February 12, 2014 was in the amount of $215
million. As of February 12, 2014 the facility is in the amount of $240 million.
Under such facility, depending on the type of loan, interest on borrowings is
payable at the London Interbank Offered Rate (LIBOR) plus 0.90% (0.85% as of
February 12, 2014) on an annualized basis, or the Alternate Base Rate, which is
the greater of (a) the facility's administrative agent's daily announced prime
rate on the borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing
date and (c) 2% plus the overnight Euro dollar rate on the borrowing date. The
Funds pay an annual commitment fee to participate in the credit facility. The
commitment fee is allocated among participating Funds based on an allocation
schedule set forth in the credit agreement. For the period ended February 28,
2014, the Fund had no borrowings under the credit facility.
42 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
8. Assets and Liabilities Offsetting
Financial instruments subject to an enforceable master netting agreement have
been offset on the Statement of Assets and Liabilities. The following charts
show gross assets and liabilities of the Fund as of February 28, 2014.
------------------------------------------------------------------------------------------
Assets:
Net
Gross Amounts Gross Amounts
Amounts of Assets Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement -----------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 79,363 $ (79,363) $ -- $ -- $ -- $ --
Futures
contracts $ -- $ -- $ -- $ -- $ -- $ --
Credit default
swaps $ 76,269 $ (62,091) $ 14,178 $ -- $ -- $ 14,178
------------------------------------------------------------------------------------------
$ 155,632 $ (141,454) $ 14,178 $ -- $ -- $ 14,178
==========================================================================================
------------------------------------------------------------------------------------------
Liabilities:
Net
Gross Amounts of Gross Amounts
Amounts Liabilities Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement -----------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Pledged Amount
------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 96,382 $ (79,363) $ 17,019 $ -- $ -- $ 17,019
Futures
contracts $ 11,617 $ -- $ 11,617 $ -- $ -- $ 11,617
Credit default
swaps $ 62,091 $ (62,091) $ -- $ -- $ -- $ --
------------------------------------------------------------------------------------------
$170,090 $ (141,454) $ 28,636 $ -- $ -- $ 28,636
==========================================================================================
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 43
9. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of February 28, 2014 were as follows:
-----------------------------------------------------------------------------------
Derivatives not
accounted for as Asset Derivatives 2014 Liabilities Derivatives 2014
hedging instruments --------------------------- ----------------------------
under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
-----------------------------------------------------------------------------------
Forward Foreign Net unrealized Net unrealized
Currency Contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $ -- currency contracts $17,019
Futures Contracts* Net unrealized Net unrealized
appreciation on depreciation on
futures contracts $ -- futures contracts $11,617
Credit Default Swaps Net unrealized Net unrealized
appreciation on depreciation on
credit default credit default
swaps $14,178 swaps $ --
-----------------------------------------------------------------------------------
Total $14,178 $28,636
===================================================================================
* Reflects unrealized appreciation (depreciation) of futures contracts (see
Note 1C).
The effect of derivative instruments on the Statement of Operations for the
period ended February 28, 2014 was as follows:
-------------------------------------------------------------------------------------------
Change in
Derivatives not Realized Unrealized
accounted for as Gain or Appreciation
hedging instruments Loss on (Depreciation)
under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification On Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
-------------------------------------------------------------------------------------------
Futures Contracts Net realized gain (loss) on
futures contracts $ (119)
Futures Contracts Change in unrealized appreciation
(depreciation) on futures contracts $ 11,617
Forward Foreign Net realized gain (loss) on forward
Currency Contracts foreign currency contracts and other
assets and liabilities denominated
in foreign currencies $ (739)
Forward Foreign Change in unrealized appreciation
Currency Contracts (depreciation) on forward foreign
currency contracts and other assets
and liabilities denominated in
foreign currencies $(16,512)
Credit Default Swaps Net realized gain (loss) on credit
default swaps $(4,975)
Credit Default Swaps Change in unrealized appreciation
(depreciation) on credit default swaps $ 14,178
44 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Long/Short Global Bond Fund (the Fund) pursuant to an investment
advisory agreement between PIM and the Fund. Based on their evaluation of the
information provided by PIM, the Trustees, including the Independent Trustees
voting separately, unanimously approved an investment advisory agreement for the
Fund. In considering the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. In all quintile rankings referred to throughout this
disclosure, the first quintile is most favorable to Fund share-owners. The
Trustees did not identify any single factor as the controlling factor in
determining to approve the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that
would be provided by PIM to the Fund under the investment advisory agreement.
The Trustees reviewed PIM's investment approach for the Fund and its research
process, and considered the resources of PIM and the personnel of PIM who would
provide investment management services to the Fund. The Trustees also considered
that, as administrator, PIM would be responsible for the administration of the
Fund's business and other affairs. The Trustees considered the quality of such
services provided by PIM to the other Pioneer Funds. The Trustees considered the
fees to be paid to PIM for the provision of administration services. Based on
these considerations, the Trustees concluded that the nature, extent and quality
of services that PIM would provide to the Fund were satisfactory and consistent
with the terms of the investment advisory agreement.
Performance of the Fund
The Trustees did not consider the Fund's performance in approving the invest-
ment advisory agreement because the Fund was newly-offered and did not have a
performance history.
Management Fee and Expenses
The Trustees considered information compiled by Strategic Insight Simfund, an
independent third party, to compare the Fund's proposed management fee and
anticipated expense ratio with a peer group of funds included in the Morningstar
Non-Traditional Bond category. The Trustees considered that the Fund's proposed
management fee would rank in the fifth quintile of the peer group, and just over
the median management fee of a subset of the peer group consisting of funds that
pursue an investment approach similar to the Fund's
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 45
investment approach. The Trustees considered factors distinguishing the Fund
from the funds in the peer group. The Trustees also considered that, taking into
account the contractual expense limitation agreed to by PIM with respect to the
Fund, the Fund's anticipated expense ratio would rank in the fifth quintile of
the peer group, and in the third quintile of the subset of the peer group
consisting of funds that pursue an investment approach similar to the Fund's
investment approach. The Trustees concluded that the proposed management fee
payable by the Fund to PIM was reasonable in relation to the nature and quality
of services to be provided by PIM.
Profitability
The Trustees did not consider PIM's profitability with respect to the manage-
ment of the Fund in approving the investment advisory agreement because the Fund
was newly-offered and profitability information was not available.
Economies of Scale
The Trustees considered PIM'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 funds and fund shareholders. The Trustees
concluded that economies of scale, if any, would be appropriately shared with
the Fund.
Other Benefits
The Trustees considered the other potential benefits to PIM from its
relationship with the Fund, including the character and amount of fees that
would be paid by the Fund, other than under the investment advisory agreement,
for services that would be provided by PIM and its affiliates, and the revenues
and profitability of PIM's businesses other than the fund business. The Trustees
concluded that the receipt of these benefits was reasonable in the context of
the overall relationship between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the investment
advisory agreement for the Fund.
46 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman Daniel K. Kingsbury, President*
David R. Bock Mark D. Goodwin, Executive
Benjamin M. Friedman Vice President
Margaret B.W. Graham Mark E. Bradley, Treasurer**
Daniel K. Kingsbury Christopher J. Kelley, Secretary
Marc O. Mayer
Marguerite A. Piret
Kenneth J. Taubes
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Chief Executive Officer of the Fund.
** Chief Financial and Accounting Officer of the Fund.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 47
This page for your notes.
48 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
This page for your notes.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 49
This page for your notes.
50 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
This page for your notes.
Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14 51
This page for your notes.
52 Pioneer Long/Short Global Bond Fund | Semiannual Report | 2/28/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 27667-00-0414
Pioneer Long/Short
Opportunistic
Credit Fund
--------------------------------------------------------------------------------
Semiannual Report | February 28, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A LRCAX*
Class C LRCCX*
Class Y LRCYX*
*Class A, C, and Y shares were first publicly offered on
December 31, 2013.
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 27
Notes to Financial Statements 34
Approval of Investment Advisory Agreement 46
Trustees, Officers and Service Providers 48
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 1
President's Letter
Dear Shareowner,
A few months into 2014, we still foresee U.S. economic growth matching or
exceeding 2013 levels, despite some weaker economic data releases early in the
year driven in large part by harsh winter weather across much of the continental
U.S. While unemployment remains high, employment has been rising steadily.
Consumer incomes, savings, wealth, and debt-servicing capacity have been solid
buttresses for the recovering housing and auto industries. Industrial activity
is growing only moderately, but current corporate profits are generally solid
and balance sheets appear able to support needed capital spending and dividend*
payouts. Tax hikes, spending restraint and a better economy have meaningfully
cut the federal budget deficit. A modestly improving European economy and
continuing economic improvement in Japan appear likely to result in improving
global growth in 2014, further supporting the U.S. economy. In addition, we feel
that continuing slack in labor markets and capacity utilization offer the
potential for continuing growth without bottlenecks and rising inflation.
After observing the strengthening economic trends, the Federal Reserve (the Fed)
has begun scaling back its QE (quantitative easing) program, but short-term
interest rates remain near zero, and while Fed Chair Janet Yellen has hinted
that rates may be raised sooner than anticipated, market expectations are still
focused on no earlier than 2015.
There are certainly risks and uncertainties still facing the global economy as
2014 moves along. The European economy, while improving, remains weak, the
Japanese economy faces a tax hike this spring, and a number of emerging market
countries are experiencing difficulties. There are also geopolitical worries
abroad, such as Russia's aggressive move against Ukraine, and more potential
political fights at home, especially during a mid-term election year. While most
of the widely recognized risks we have outlined may already be "priced into" the
market, we believe investors should continue to expect market volatility.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
* Dividends are not guaranteed.
2 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in global equity and bond markets, using in-depth research to identify
undervalued individual securities, and using thoughtful risk management to
construct portfolios which seek to balance potential risks and rewards in an
ever-changing world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 3
Portfolio Management Discussion | 2/28/14
In the following interview, portfolio managers Thomas Swaney and Benjamin Gord
discuss the factors that influenced Pioneer Long/Short Opportunistic Credit
Fund's performance for the abbreviated semiannual reporting period beginning
with the Fund's inception on December 30, 2013, and ending February 28, 2014, as
well as their investment approach in managing the Fund. Mr. Swaney, Head of
Alternative Fixed Income, U.S., a senior vice president, and a portfolio manager
at Pioneer (lead portfolio manager of the Fund since 2013), and Mr. Gord, a vice
president and a portfolio manager at Pioneer, are responsible for the day-to-day
management of the Fund.
Q How did the Fund perform during the abbreviated semiannual reporting period
ended February 28, 2014?
A Pioneer Long/Short Opportunistic Credit Fund's Class A shares returned 0.00%
at net asset value during the period between December 30, 2013, and February
28, 2014. During the two-month period ended February 28, 2014, the Fund's
benchmark, the Bank of America Merrill Lynch (BofA ML) 3-Month U.S.
Treasury-Bill Index, returned 0.01%.
Q Can you provide an overview of the Fund's investment approach?
A In seeking positive Fund returns regardless of market conditions, we
utilize two distinct investment strategies. One part of the portfolio's
strategy is directional, in that we need to be correct about whether the
prices of a particular asset class are poised to appreciate or depreciate.
However, we seek to have the Fund benefit from both positive and negative
returns. This means that at times we invest in some asset categories within
the broad bond market by taking long positions, while speculating against
other asset classes by taking short positions.
The other part of the portfolio utilizes uncorrelated trading strategies,
in which we do not have to take a stance on whether an individual market is
going to rise or fall overall. Instead, we need to identify either a
segment or security within a market that will outperform versus another
market segment or security. We execute these portfolio investment
strategies across several different global financial markets and many
different asset classes. We will seek to "pair" positions, meaning that the
Fund will have a long position in one segment/security of a particular
market, and a short position in another segment/security such that the
performance of the pair
4 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
is not dependent on the direction of the market. We believe this strategy
can allow the Fund to benefit from favorable relative performance,
regardless of the overall direction of that market.
We aim to have the Fund's annualized return exceed that of 3-month Treasury
bills, but with portfolio volatility lower than that of the broad equity
market. To achieve that goal, we seek to provide positive Fund returns over
most trailing 12-month periods and to minimize the extent of any negative
returns, regardless of market conditions.
Most importantly, we closely track the risks we have assumed in both
portions of the portfolio and operate within an overall "risk budget," which
is based on our goal of largely avoiding negative returns over a 12-month
period.
Q Can you review the principal portfolio investment strategies you implemented
during the Fund's abbreviated semiannual reporting period ended February 28,
2014?
A We initiated long/short trades within the portfolio's long/short equity
strategy, with one key position favoring regional banks with a domestic
focus over large-capitalized U.S. stocks with more global
exposure--particularly those with exposure to the emerging markets. Another
key strategy within the portfolio's long/short equity sleeve is a pairing
that favors Spain -- a country that has made meaningful strides with
respect to restructuring its economy -- over other parts of the euro zone.
Under the Fund's capital structure arbitrage investment strategy, we seek
to take advantage of mispricings within different parts of the capital
structure. We attempt to do this by, for instance, purchasing a firm's
junior debt securities if we believe their prices reflect an
unrealistically high assessment of the company's default risk, while
simultaneously purchasing tradable insurance in the form of a credit
default swap on the firm's senior debt. This strategy can add to the Fund's
return if we are correct in our assessment and the prices of the two
different issues converge. The Fund had a number of curve trades as part of
the credit long/short strategy, where the portfolio is long in one part of
an individual issuer's yield curve, and short in another part, depending on
whether we believe the issuer's yield curve will steepen or flatten.
We also implemented a number of strategies within the portion of the Fund's
portfolio that utilizes trades with low correlations to the broader markets.
One of our core strategies ("global macro") seeks to benefit from market
distortions in relative value that often result from macroeconomic
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 5
factors. Currency long/short is a strategy whereby we take long portfolio
positions in a basket of emerging and developed market currencies, and
shorter positions in another basket of currencies that we expect to
underperform. Another portfolio strategy which we implemented was
long/short credit. This entails pairing long and short positions in two
issuers within the same industry sector for whom we expect performance to
diverge.
On the directional side of the portfolio, we implemented a number of
long exposures. These include holdings of euro-denominated bonds that are
convertible into equities. With these positions, we are seeking to have the
Fund benefit from an improvement in the European stock market, where we
think margin stabilization and modest price-to-earnings (P/E) expansion
could translate into solid risk-adjusted returns. In particular, we have
been emphasizing investments in economically sensitive financial and
service-oriented firms with less exposure to France and Italy.
On the short side of the directional portfolio, we took a position
with respect to investment-grade debt in both Asia and Australia, areas that
we view as being vulnerable to the credit slowdown in China. China is
attempting to grow its economy at a 7.5% annual pace, while at the same time
contracting credit and relying on a shadow banking system that represents
approximately 70% of the country's gross domestic product (GDP). We felt
that investments in both the Asian and Australian credit markets are a
prudent and efficient way to get short exposure in the event of a Chinese
policy error. We are also shorting the portfolio at a very specific point on
the U.S. yield curve, as we do not believe the markets are adequately
prepared for the likely pace of the U.S. Federal Reserve's (the Fed's)
tightening of its accommodative monetary policy should the domestic economy
return to above-trend growth.
Within the U.S., we are positive on business development companies, which
are significantly-regulated entities specializing in lending to small- and
midsize companies. Stocks of such companies generally carry little exposure
to non-domestic risks. It is our belief that the U.S. economy will grow more
robustly than consensus market estimates, which supports our taking the
portfolio's long positions in equities. The Fund also had meaningful
exposure to securitized credit markets such as non-agency mortgages, an area
where we see opportunities to earn reasonable risk-adjusted returns
6 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
with less sensitivity to the direction of the U.S. equity market. Because we
seek to hedge out the accompanying interest-rate risk in the portfolio, we
are trying to isolate the cheapness of mortgage bonds.
Finally, the Fund held a variety of event-linked bonds, which are designed
to pay reasonable yields in exchange for insurance protection against major
calamities such as hurricanes, floods, and earthquakes. We like event-linked
bonds because of their historical lack of correlation to any equity or
fixed-income market risks.
Q What is your assessment of the current macroeconomic climate and the
opportunities it may present?
A Overall, we expect global economic growth to continue to strengthen. In the
U.S., we are looking for growth to move up into the range of its historic
long-term trend, supported by improvements in employment and the
availability of credit. At the same time, there will be disappointments
along the way, and with the Fed no longer fully committed to stepping up its
accommodative efforts to backstop economic conditions, asset prices will
likely experience significant volatility. Another macroeconomic development
we are examining is the lack of a clear definition when it comes to
conditions in the emerging versus developed markets. Many emerging economies
are actually in a better position from the standpoint of national debt
levels and current account flows, and we anticipate that performance trends
in global bond markets will become increasingly country-specific. Market
volatility and performance dispersion creates opportunities for an
uncorrelated trading strategy such as ours, and we will seek to find trades
that will help the Fund to capitalize on emerging themes.
Please refer to the Schedule of Investments on pages 17-26 for a full listing of
Fund securities.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 7
All investments are subject to risk, including the possible loss of principal.
The portfolio may invest in derivative securities, such as options, futures,
inverse floating-rate obligations, and swaps, among others, which can be
illiquid, may disproportionately increase losses, and have a potentially large
impact on the performance of the portfolio.
The Fund may take short positions, which involves leverage of its assets and
presents additional risks.
The Fund may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the Fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Fund employs leverage, which increases the volatility of investment returns
and subjects the Fund to magnified losses.
Investments in fixed-income securities involve interest rate, credit, inflation,
and reinvestment risks.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investments in high-yield or lower-rated securities are subject to greater-than-
average price volatility, illiquidity and possibility of default.
Prepayment risk is the chance that an issuer may exercise its right to prepay
its security, if falling interest rates prompt the issuer to do so. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation.
The securities issued by U.S. Government sponsored entities (e.g., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government.
The portfolio may invest in mortgage-backed securities, which during times of
fluctuating interest rates may increase or decrease more than other fixed-income
securities. Mortgage-backed securities are also subject to pre-payments.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
8 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
The Fund may invest in event-linked bonds, on which the return of principal and
the payment of interest are contingent on the non-occurrence of a pre-defined
"trigger" event, such as a hurricane or an earthquake of a specific magnitude.
The Fund may invest in floating-rate loans; the value of collateral, if any,
securing a floating-rate loan can decline or may be insufficient to meet the
issuer's obligations or may be difficult to liquidate.
The Fund is subject to currency risk, meaning that the Fund could experience
losses based on changes in the exchange rate between non-U.S. currencies and the
U.S. dollar.
The Fund is non-diversified, which means that it can invest a large percentage
of its assets in the securities of any one or more issuers. This increases the
Fund's potential risk exposure.
These risks may increase share price volatility.
There is no assurance that these and other strategies used by the Fund will be
successful. Please see the prospectus for a more complete discussion of the
Fund's risks.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should
not be relied upon for any other purposes.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 9
Portfolio Summary | 2/28/14
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Securities 44.0%
Collateralized Mortgage Obligations 17.6%
Convertible Corporate Bonds 11.1%
Exchange Traded Fund 6.4%
International Corporate Bonds 6.4%
U.S. Common Stocks 5.1%
Senior Secured Loans 4.8%
U.S. Corporate Bonds 2.5%
Asset Backed Securities 2.1%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. JP Morgan Mortgage Trust, Floating Rate Note, 1/25/44 (144A) 4.93%
---------------------------------------------------------------------------------------------
2. SPDR S&P Regional Banking ETF 4.13
---------------------------------------------------------------------------------------------
3. Sequoia Mortgage Trust 2013-6, Floating Rate Note, 5/25/43 3.62
---------------------------------------------------------------------------------------------
4. GTP Towers Issuer LLC, 8.112%, 2/15/15 (144A) 2.59
---------------------------------------------------------------------------------------------
5. iShares US Regional Banks ETF 2.30
---------------------------------------------------------------------------------------------
6. Industrivarden AB, 2.5%, 2/27/15 (144A) 1.34
---------------------------------------------------------------------------------------------
7. Mythen Re, Ltd., Floating Rate Note, 5/7/15 (Cat Bond) (144A) 1.33
---------------------------------------------------------------------------------------------
8. Caelus Re 2013, Ltd., Floating Rate Note, 4/7/17 (Cat Bond) (144A) 1.30
---------------------------------------------------------------------------------------------
9. BlackRock Kelso Capital Corp. 1.30
---------------------------------------------------------------------------------------------
10. Residential Reinsurance 2012, Ltd., Floating Rate Note, 12/6/16 (Cat Bond) (144A) 1.30
---------------------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
10 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
Prices and Distributions | 2/28/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/14 12/30/13*
--------------------------------------------------------------------------------
A $10.00 $10.00
--------------------------------------------------------------------------------
C $ 9.99 $10.00
--------------------------------------------------------------------------------
Y $10.01 $10.00
--------------------------------------------------------------------------------
Distributions per Share: 12/30/13-2/28/14*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ -- $ -- $ --
--------------------------------------------------------------------------------
C $ -- $ -- $ --
--------------------------------------------------------------------------------
Y $ -- $ -- $ --
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Bank of America Merrill Lynch (BofA ML) 3-month US Treasury Index is an
unmanaged market index of U.S. Treasury securities maturing in 90 days, that
assumes reinvestment of all income. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts appearing on pages 12-14.
* The Fund commenced operations on December 30, 2013.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 11
Performance Update | 2/28/14 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000 invest-
ment made in Class A shares of Pioneer Long/Short Opportunistic Credit Fund at
public offering price during the periods shown, compared to that of the Bank of
America Merrill Lynch (BofA ML) 3-month US Treasury Index.
Average Semiannual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 0.00% -4.49%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 6, 2013,
as revised January 8, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.94% 1.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month
Opportunistic Credit Fund US Treasury Index
12/31/2013 $ 9,550 $ 10,000
2/28/2014 $ 9,550 $ 10,000
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
Performance Update | 2/28/14 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C Shares of Pioneer Long/Short Opportunistic Credit
Fund during the periods shown, compared to that of the Bank of America Merrill
Lynch (BofA ML) 3-month US Treasury Index.
Average Semiannual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) -0.10% -1.10%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 6, 2013,
(as revised January 8, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.69% 2.50%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Long/Short BofA ML 3-month
Opportunistic Credit Fund US Treasury Index
12/31/2013 $ 10,000 $ 10,000
2/28/2014 $ 9,890 $ 10,000
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 13
Performance Update | 2/28/14 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Long/Short Opportunistic Credit
Fund during the periods shown, compared to that of the Bank of America Merrill
Lynch (BofA ML) 3-month US Treasury Index.
Average Semiannual Total Returns
(As of February 28, 2014)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(12/30/13) 0.10% 0.10%
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 6, 2013,
as revised January 8, 2014)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.69% 1.50%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Long/Short BofA ML 3-month
Opportunistic Credit Fund US Treasury Index
12/31/2013 $ 5,000,000 $ 5,000,000
2/28/2014 $ 5,005,000 $ 5,000,363
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2015, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Long/Short Opportunistic
Credit Fund
Based on actual returns from December 31, 2013, through February 28, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 12/31/13 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 2/28/14 $1,000.00 $ 999.00 $1,001.00
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 2.81 $ 4.04 $ 2.40
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratio of the underlying funds. These combined totals were 1.71%,
2.46% and 1.46% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period multiplied by 60/365
(to reflect the partial year period).
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Long/Short Opportunistic Credit
Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from December 31, 2013, through February 28, 2014.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account Value on 12/31/13 $1,000.00 $1,000.00 $1,000.00
--------------------------------------------------------------------------------
Ending Account Value (after expenses)
on 2/28/14 $1,005.41 $1,004.18 $1,005.82
--------------------------------------------------------------------------------
Expenses Paid During Period* $ 2.82 $ 4.05 $ 2.41
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio plus the
expense ratio of the underlying funds. These combined totals were 1.71%,
2.46% and 1.46% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period multiplied by 60/365
(to reflect the partial year period).
16 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
Schedule of Investments | 2/28/14 (unaudited)
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE
BONDS -- 8.8%
ENERGY -- 1.0%
Integrated Oil & Gas -- 1.0%
EURO 100,000 A/NR Eni S.p.A., 0.625%, 1/18/16 $ 148,228
100,000 BBB/NR Lukoil International Finance BV,
2.625%, 6/16/15 104,500
------------
$ 252,728
------------
Total Energy $ 252,728
-----------------------------------------------------------------------------------------------------
MATERIALS -- 0.4%
Diversified Metals & Mining -- 0.4%
100,000 BB/NR Vedanta Resources Jersey, Ltd., 5.5%,
7/13/16 $ 100,750
------------
Total Materials $ 100,750
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 1.7%
Electrical Components &
Equipment -- 0.9%
EURO 150,000 BB-/NR SGL Carbon SE, 3.5%, 6/30/16 $ 232,893
-----------------------------------------------------------------------------------------------------
Trading Companies &
Distributors -- 0.8%
EURO 150,000 B+/NR Kloeckner & Co., Financial Services SA,
2.5%, 12/22/17 $ 203,665
------------
Total Capital Goods $ 436,558
-----------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.9%
Hotels, Resorts & Cruise Lines -- 0.9%
GBP 100,000 NR/NR TUI Travel Plc, 4.9%, 4/27/17 $ 214,174
------------
Total Consumer Services $ 214,174
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.8%
Multi-Sector Holdings -- 2.4%
EURO 100,000 NR/NR GBL Verwaltung SA, 1.25%, 2/7/17 $ 156,727
EURO 100,000 NR/NR Groupe Bruxelles Lambert SA, 0.125%,
9/21/15 175,369
EURO 150,000 A-/NR Industrivarden AB, 2.5%, 2/27/15 (144A) 266,578
------------
$ 598,674
-----------------------------------------------------------------------------------------------------
Specialized Finance -- 0.4%
100,000 BBB/NR Glencore Finance Europe SA, 5.0%,
12/31/14 $ 113,000
------------
Total Diversified Financials $ 711,674
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 17
Schedule of Investments | 2/28/14 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
REAL ESTATE -- 0.8%
Diversified Real Estate
Activities -- 0.8%
GBP 100,000 NR/NR The British Land Co., Jersey, Ltd.,
1.5%, 9/10/17 $ 194,683
------------
Total Real Estate $ 194,683
-----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.6%
Integrated Telecommunication
Services -- 0.6%
EURO 100,000 NR/NR Solidium Oy, 0.5%, 9/29/15 $ 142,134
------------
Total Telecommunication Services $ 142,134
-----------------------------------------------------------------------------------------------------
GOVERNMENT -- 0.6%
EURO 100,000 B/Ba3 Parpublica - Participacoes Publicas
SGPS SA, 5.25%, 9/28/17 $ 153,673
------------
Total Government $ 153,673
-----------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $2,141,997) $ 2,206,374
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------------
COMMON STOCKS -- 4.1%
DIVERSIFIED FINANCIALS -- 4.1%
Asset Management & Custody
Banks -- 4.1%
13,800 Ares Capital Corp. $ 248,814
27,200 BlackRock Kelso Capital Corp. 259,216
13,000 Fifth Street Finance Corp. 127,660
6,900 Golub Capital BDC, Inc. 129,444
15,900 Hercules Technology Growth Capital, Inc. 250,266
------------
$ 1,015,400
------------
Total Diversified Financials $ 1,015,400
-----------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,011,333) $ 1,015,400
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings
-----------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 1.4%
BANKS -- 1.0%
Thrifts & Mortgage Finance -- 1.0%
125,000 NR/NR CAM Mortgage Trust, 5.5%, 12/15/53
(Step) (144A) $ 124,416
48,438 1.46 B+/B2 First Franklin Mortgage Loan Trust
2003-FFC, Floating Rate Note, 11/25/32 47,071
The accompanying notes are an integral part of these financial statements.
18 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage
Finance -- (continued)
46,500 BBB/NR Icon Brands Holdings LLC, 4.229%,
1/25/43 (144A) $ 46,484
42,691 3.16 A/Baa2 Irwin Whole Loan Home Equity Trust
2003-C, Floating Rate Note, 6/25/28 42,853
------------
$ 260,824
------------
Total Banks $ 260,824
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.4%
Other Diversified Financial
Services -- 0.4%
100,000 BBB/NR TAL Advantage LLC, 4.1%, 2/22/39 $ 100,774
------------
Total Diversified Financials $ 100,774
-----------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $360,878) $ 361,598
-----------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 14.0%
BANKS -- 13.5%
Thrifts & Mortgage Finance -- 13.5%
56,878 1.16 A/Baa1 Bayview Commercial Asset Trust, Floating
Rate Note, 1/25/35 (144A) $ 51,589
150,000 BB/NR Bear Stearns Commercial Mortgage
Securities Trust 2006-PWR14, 5.273%,
12/11/38 148,824
175,000 5.57 NR/Ba3 COBALT Commercial Mortgage Trust
2007-C2, Floating Rate Note, 4/15/47
(144A) 177,480
175,000 NR/B3 COMM 2006-C8 Mortgage Trust, 5.377%,
12/10/46 173,162
175,000 3.26 BB-/NR Credit Suisse Mortgage Capital Certificates,
Floating Rate Note, 2/15/29 175,022
100,000 5.59 BB-/NR GS Mortgage Securities Trust 2006-GG6,
Floating Rate Note, 4/10/38 102,093
200,000 B/B3 JP Morgan Chase Commercial Mortgage
Securities Trust 2006-CIBC16, 5.623%,
5/12/45 201,621
125,000 3.12 BB/NR JP Morgan Chase Commercial Mortgage
Securities Trust 2013-FL3, Floating Rate
Note, 4/15/28 (144A) 124,808
1,000,000 3.50 AAA/NR JP Morgan Mortgage Trust, Floating Rate
Note, 1/25/44 (144A) 980,000
187,500 5.28 BB/NR LB-UBS Commercial Mortgage Trust
2006-C1, Floating Rate Note, 2/15/41 189,862
70,000 5.48 NR/Ba2 ML-CFC Commercial Mortgage Trust
2006-3, Floating Rate Note, 7/12/46 69,176
16,391 0.94 AAA/Aaa Nomura Asset Acceptance Corp
Alternative Loan Trust Series 2004-AR2,
Floating Rate Note, 10/25/34 16,301
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 19
Schedule of Investments | 2/28/14 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
Thrifts & Mortgage
Finance -- (continued)
769,175 3.00 NR/Aaa Sequoia Mortgage Trust 2013-6, Floating
Rate Note, 5/25/43 $ 719,542
125,000 4.75 NR/NR Volt LLC, Series 14-NPL1, Floating Rate
Note, 10/27/53 121,823
125,000 5.97 B-/B1 Wachovia Bank Commercial Mortgage
Trust Series 2007-C34, Floating Rate
Note, 5/15/46 128,250
------------
$ 3,379,553
------------
Total Banks $ 3,379,553
-----------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.5%
Other Diversified Financial
Services -- 0.5%
125,000 5.22 NR/B1 LB-UBS Commercial Mortgage Trust
2005-C2, Floating Rate Note, 4/15/40 $ 126,602
------------
Total Diversified Financials $ 126,602
-----------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $3,506,689) $ 3,506,155
-----------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 7.2%
INSURANCE -- 5.1%
Reinsurance -- 5.1%
250,000 4.25 BB+/NR Armor Re, Ltd., Floating Rate Note,
5/14/14 (Cat Bond) (144A) $ 250,325
250,000 6.91 NR/NR Caelus Re, Ltd., Floating Rate Note,
4/7/17 (Cat Bond) (144A) 259,350
250,000 17.77 B+/NR Everglades Re, Ltd., Floating Rate Note,
4/30/14 (Cat Bond) (144A) 256,100
250,000 8.53 NR/Ba3 Mythen Re, Ltd., Floating Rate Note,
5/7/15 (Cat Bond) (144A) 264,525
250,000 4.57 BB+/NR Residential Reinsurance 2012, Ltd.,
Floating Rate Note, 12/6/16 (Cat Bond)
(144A) 259,025
------------
$ 1,289,325
------------
Total Insurance $ 1,289,325
-----------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.1%
Integrated Telecommunication
Services -- 2.1%
500,000 NR/Ba2 GTP Towers Issuer LLC, 8.112%, 2/15/15
(144A) $ 515,770
------------
Total Telecommunication Services $ 515,770
-----------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $1,808,341) $ 1,805,095
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN
INTERESTS -- 3.8%**
ENERGY -- 0.4%
Oil & Gas Exploration &
Production -- 0.4%
100,000 3.88 BB-/Ba2 Fieldwood Energy LLC, Closing Date Loan,
9/25/18 $ 100,427
------------
Total Energy $ 100,427
-----------------------------------------------------------------------------------------------------
MATERIALS -- 0.5%
Commodity Chemicals -- 0.1%
30,000 0.00 NR/NR Nexeo Solutions LLC, Term Loan B3,
9/9/17 $ 30,038
-----------------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.2%
50,000 5.00 B+/B2 Univar, Inc., Term B Loan, 2/14/17 $ 49,760
-----------------------------------------------------------------------------------------------------
Paper Products -- 0.2%
50,000 5.25 B/B1 Exopack Holdings SA, USD Term Loan,
4/14/19 $ 50,792
------------
Total Materials $ 130,590
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.5%
Aerospace & Defense -- 0.5%
50,000 6.25 BB-/WR DynCorp International, Inc., Term Loan,
7/7/16 $ 50,438
50,000 5.25 B/B2 Sequa Corp., Initial Term Loan, 6/19/17 49,344
25,000 0.00 NR/NR Wesco Aircraft Hardare Corp., Tranche B
Term Loan (First Lien), 2/24/21 25,055
------------
$ 124,837
------------
Total Capital Goods $ 124,837
-----------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES &
SUPPLIES -- 0.6%
Diversified Support Services -- 0.6%
50,000 0.00 NR/NR Aegis Toxicology Corp., Tranche B Term
Loan (First Lien), 2/20/21 $ 50,250
100,000 0.00 NR/NR Seadrill Operating LP, Initial Term Loan,
2/14/21 100,571
------------
$ 150,821
------------
Total Commercial Services & Supplies $ 150,821
-----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.3%
Air Freight & Logistics -- 0.1%
5,150 0.15 CCC+/B2 CEVA Group Plc, Dollar Tranche B
Pre-Funded Term Loan, 8/31/16 $ 5,144
19,850 5.25 CCC+/B2 CEVA Logistics US Holdings, Inc., U.S.
Tranche B Loan, 8/31/16 19,850
------------
$ 24,994
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 21
Schedule of Investments | 2/28/14 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
Trucking -- 0.2%
50,000 8.00 CCC+/NR YRC Worldwide, Inc., Initial Term Loan,
2/12/19 $ 50,312
------------
Total Transportation $ 75,306
-----------------------------------------------------------------------------------------------------
CONSUMER DURABLES &
APPAREL -- 0.2%
Leisure Products -- 0.2%
36,000 0.00 NR/NR Party City Holdings, Inc., 2014
Replacement Term Loan, 7/27/19 $ 36,090
------------
Total Consumer Durables & Apparel $ 36,090
-----------------------------------------------------------------------------------------------------
MEDIA -- 0.2%
Broadcasting -- 0.1%
23,485 3.00 NR/NR CBS Outdoor Americas Capital LLC,
Tranche B Term Loan (First Lien), 1/15/21 $ 23,478
-----------------------------------------------------------------------------------------------------
Movies & Entertainment -- 0.1%
25,000 6.50 B/NR Deluxe Entertainment Services Group.,
Inc., Tranche B Term Loan (First Lien),
2/26/20 $ 25,115
------------
Total Media $ 48,593
-----------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.3%
Agricultural Products -- 0.3%
75,000 4.50 B/B1 Arysta Lifescience SPC LLC, Initial Term
Loan, 5/29/20 $ 75,609
------------
Total Food, Beverage & Tobacco $ 75,609
-----------------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL
PRODUCTS -- 0.3%
Personal Products -- 0.3%
75,000 0.00 NR/NR Atrium Innovations, Inc., Tranche B Term
Loan (Second Lien), 7/29/21 $ 76,594
------------
Total Household & Personal Products $ 76,594
-----------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.1%
Systems Software -- 0.1%
36,000 0.00 NR/NR SafeNet, Inc., Tranche B Term Loan,
2/28/20 $ 35,820
------------
Total Software & Services $ 35,820
-----------------------------------------------------------------------------------------------------
UTILITIES -- 0.4%
Electric Utilities -- 0.2%
50,000 0.00 B+/B3 FR Dixie Acquisition Corp., Term Loan,
1/23/21 $ 50,333
-----------------------------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 0.2%
50,000 0.00 NR/NR Atlantic Power LP, Term Loan B, 2/20/21
$ 50,344
------------
Total Utilities $ 100,677
-----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
-----------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (b) Ratings Value
-----------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE
LOAN INTERESTS
(Cost $947,697) $ 955,364
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Shares
-----------------------------------------------------------------------------------------------------
EXCHANGE TRADED FUNDS -- 5.1%
DIVERSIFIED FINANCIALS -- 5.1%
Asset Management & Custody
Banks -- 5.1%
13,640 iShares US Regional Banks ETF $ 456,531
20,576 SPDR S&P Regional Banking ETF 820,777
-----------------------------------------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUNDS
(Cost $1,248,369) $ 1,277,308
-----------------------------------------------------------------------------------------------------
TEMPORARY CASH
INVESTMENTS -- 34.9%
2,500,000 AA+/Aaa U.S. Treasury Bills, 3/20/14 (c) $ 2,499,968
6,250,000 AA+/Aaa U.S. Treasury Bills, 4/24/14 (c) 6,249,547
-----------------------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $8,749,591) $ 8,749,515
-----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN
SECURITIES -- 79.3%
(Cost $19,774,895) (a) $ 19,876,809
-----------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 20.7% $ 5,192,934
-----------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 25,069,743
=====================================================================================================
NR Not rated by either S&P or Moody's.
WR Rating withdrawn by either S&P or Moody's.
(Cat Bond) Catastrophe bond is a high-yield debt instrument that is
usually insurance linked and meant to raise money in case of a
catastrophe.
Step Bond issued with an initial coupon rate which converts to a higher
rate at a later date.
(144A) Security is exempt from registration under Rule 144A of the
Securities Act of 1933. Such securities may be resold normally to
qualified institutional buyers in a transaction exempt from
registration. At February 28, 2014, the value of these securities
amounted to $3,576,450 or 14.3% of total net assets.
** Senior floating rate loan interests in which the Fund invests
generally pay interest at rates that are periodically redetermined
by reference to a base lending rate plus a premium. These base
lending rates are generally (i) the lending rate offered by one or
more major European banks, such as LIBOR (London InterBank Offered
Rate), (ii) the prime rate offered by one or more major United
States banks, (iii) the certificate of deposit or (iv) other base
lending rates used by commercial lenders. The rate shown is the
coupon rate at period end.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 23
Schedule of Investments | 2/28/14 (unaudited) (continued)
(a) At February 28, 2014, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $19,774,895 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $126,145
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (24,231)
---------
Net unrealized appreciation $101,914
=========
(b) Debt obligation with a variable interest rate. Rate shown is rate at
end of period.
(c) Security issued with a zero coupon. Income is earned through
accretion of discount.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EURO Euro
GBP British Pound Sterling
Purchases and sales of securities (excluding temporary cash investments) for the
period ended February 28, 2014 aggregated $22,739,697 and $5,743,033,
respectively.
---------------------------------------------------------------------------------------------------------------
CREDIT DEFAULT SWAP AGREEMENTS - BUY PROTECTION
Net
Premiums Unrealized
Notional Obligation Expiration Received Appreciation
Principal ($) Counterparty Entity/Index Coupon Date (Paid) (Depreciation)
---------------------------------------------------------------------------------------------------------------
(250,000) Citibank NA Alcoa, Inc. 1.00% 3/20/19 $ 10,592 $ (3,916)
(250,000) Citibank NA Caesars 5.00% 3/20/16 65,625 (2,467)
Entertainment
Operating Co., Inc.
(1,235,000) Citibank NA CDX.NA.HY.21 5.00% 12/20/18 (244,530) (12,178)
35-100%
(250,000) Citibank NA United Rentals 5.00% 3/20/19 (36,198) (5,098)
(North America), Inc.
EURO (375,000) JPMorgan Glencore 1.00% 3/20/19 13,379 (980)
Chase Bank NA International AG
(625,000) Morgan ITRAXX.ASIA.XJ.IG.20.V1 1.00% 12/20/18 17,502 (9,632)
Stanley & Co.
(625,000) Morgan ITRAXX.AUST.20.V1 1.00% 12/20/18 4,028 (4,904)
Stanley & Co.
---------------------------------------------------------------------------------------------------------------
$(169,602) $ (39,175)
===============================================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
-------------------------------------------------------------------------------------------------------------
CREDIT DEFAULT SWAP AGREEMENTS - SELL PROTECTION
Net
Premiums Unrealized
Notional Obligation Expiration Received Appreciation
Principal ($)(1) Counterparty Entity/Index Coupon Date (Paid) (Depreciation)
-------------------------------------------------------------------------------------------------------------
500,000 Citibank NA CDX.NA.IG.9 0-3% 5.00% 12/20/14 $ (15,390) $ 4,931
EURO 625,000 Citibank NA ITRAXX.EUR.9 0-3% 5.00% 6/20/15 (8,589) 8,470
250,000 Citibank NA Clear Channel 5.00% 12/20/14 564 2,726
Communications, Inc.
62,500 Citibank NA Caesars 5.00% 12/20/14 (5,156) 226
Entertainment
Operating Co., Inc.
250,000 Citibank NA Caesars 5.00% 3/20/19 (133,125) (500)
Entertainment
Operating Co., Inc.
187,500 Citibank NA Caesars 5.00% 9/20/14 (12,188) (2,604)
Entertainment
Operating Co., Inc.
250,000 Citibank NA Freeport-McMoRan 1.00% 3/20/19 (5,920) 2,323
Copper & Gold, Inc.
250,000 Citibank NA Hertz Corp. (The) 5.00% 3/20/19 33,704 1,749
250,000 Citibank NA JC Penney Co., Inc. 5.00% 12/20/14 (5,000) 2,465
250,000 Citibank NA MBIA Insurance Corp. 5.00% 3/20/15 (625) 4,340
125,000 Citibank NA RadioShack Corp. 5.00% 12/20/14 (10,000) 3,155
125,000 Citibank NA RadioShack Corp. 5.00% 9/20/14 (5,937) 1,721
250,000 Citibank NA Sears Roebuck 5.00% 3/20/15 (16,250) 10,903
Acceptance Corp.
250,000 Citibank NA Toys R Us, Inc. 5.00% 12/20/14 (5,000) 2,722
250,000 Citibank NA Travelport LLC 5.00% 3/20/15 -- 3,530
EURO 375,000 JPMorgan Arcelormittal 1.00% 3/20/19 (35,081) (2,165)
Chase Bank NA
EURO 250,000 JPMorgan Norske 5.00% 3/20/15 (20,418) 9,209
Chase Bank NA Skogindustrier ASA
-------------------------------------------------------------------------------------------------------------
$(244,411) $ 53,201
=============================================================================================================
(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.
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EURO Euro
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 Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 25
Schedule of Investments | 2/28/14 (unaudited) (continued)
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services) are categorized as
Level 3. See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of February 28, 2014, in
valuing the Fund's assets:
-------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 2,206,374 $ -- $ 2,206,374
Common Stocks 1,015,400 -- -- 1,015,400
Asset Backed Securities -- 361,598 -- 361,598
Collateralized Mortgage Obligations -- 3,506,155 -- 3,506,155
Corporate Bonds -- 1,805,095 -- 1,805,095
U.S. Government Agency Obligations -- 8,749,515 -- 8,749,515
Senior Floating Rate Loan Interests -- 955,364 -- 955,364
Exchange Traded Funds 1,277,308 -- -- 1,277,308
-------------------------------------------------------------------------------------------
Total $2,292,708 $17,584,101 $ -- $19,876,809
===========================================================================================
Other Financial Instruments
Unrealized Appreciation on
Credit Default Swaps $ -- $ 14,026 $ -- $ 14,026
Unrealized depreciation on
Futures Contracts (16,903) -- $ -- (16,903)
Unrealized Depreciation on
Forward Foreign Currency
Contracts -- (7,181) -- (7,181)
-------------------------------------------------------------------------------------------
Total Other Financial Instruments $ (16,903) $ 6,845 $ -- $ (10,058)
===========================================================================================
During the period ended February 28, 2014, there were no transfers between
Level 1, 2 and 3.
----
The accompanying notes are an integral part of these financial statements.
26 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
Statement of Assets and Liabilities | 2/28/14 (unaudited)
ASSETS:
Investment in securities, at value (cost $19,774,895) $ 19,876,809
Cash 7,534,640
Foreign currency (cost $56,555) 56,849
Futures collateral 139,635
Receivables --
Fund shares sold 5,000
Interest 37,888
Credit default swap payments 270,615
Due from Pioneer Investment Management, Inc. 7,282
Net unrealized appreciation on credit default swaps 14,026
Other 58,305
-------------------------------------------------------------------------------------
Total assets $ 28,001,049
-------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 2,484,021
Credit default swaps, premiums paid 414,013
Net unrealized depreciation on forward foreign currency contracts 7,181
Net unrealized depreciation on futures contracts 16,903
Due to affiliates 9,188
-------------------------------------------------------------------------------------
Total liabilities $ 2,931,306
-------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 25,059,308
Accumulated net investment loss (72,261)
Accumulated net realized loss on investments, futures contracts,
credit default swaps and foreign currency transactions (9,715)
Net unrealized appreciation on investments 101,914
Net unrealized depreciation on futures contracts (16,903)
Net unrealized appreciation on credit default swaps 14,026
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (6,626)
-------------------------------------------------------------------------------------
Total net assets $25,069,743
=====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $8,387,322/838,846 shares) $ 10.00
Class C (based on $8,339,949/834,452 shares) $ 9.99
Class Y (based on $8,342,472/833,333 shares) $ 10.01
MAXIMUM OFFERING PRICE:
Class A ($10.00 (divided by) 95.5%) $ 10.47
=====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 27
Statement of Operations (unaudited)
For the period from 12/30/13 (Commencement of Operations) to 2/28/14
INVESTMENT INCOME:
Interest $ 3,247
Dividends 1,082
----------------------------------------------------------------------------------
Total investment income $ 4,329
==================================================================================
EXPENSES:
Management fees $ 47,188
Distribution fees
Class A 3,424
Class C 13,667
Administrative reimbursements 1,190
Custodian fees 2,400
Professional fees 16,680
Printing expense 3,300
Fees and expenses of nonaffiliated Trustees 1,320
Miscellaneous 1,979
----------------------------------------------------------------------------------
Total expenses $ 91,148
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (14,558)
----------------------------------------------------------------------------------
Net expenses $ 76,590
----------------------------------------------------------------------------------
Net investment loss $(72,261)
----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
CREDIT DEFAULT SWAPS, FUTURES CONTRACTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments $ 161
Credit Default Swaps (8,121)
Futures Contracts (288)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (1,467) $ (9,715)
----------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 101,914
Credit Default Swaps 14,026
Futures Contracts (16,903)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (6,626) $ 92,411
----------------------------------------------------------------------------------
Net gain on investments $ 82,696
==================================================================================
Net increase in net assets resulting from operations $ 10,435
==================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------
12/30/13 (a)
to 2/28/14
(unaudited)
------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment (loss) $ (72,261)
Net realized loss on investments, credit default swaps, futures contracts
and foreign currency transactions (9,715)
Change in net unrealized appreciation (depreciation) on investments,
credit default swaps, futures contracts and foreign
currency transactions 92,411
------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 10,435
------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $25,059,308
Reinvestment of distributions --
Cost of shares repurchased --
------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $25,059,308
------------------------------------------------------------------------------------------
Net increase in net assets $25,069,743
NET ASSETS:
Beginning of period $ --
------------------------------------------------------------------------------------------
End of period $25,069,743
==========================================================================================
Accumulated net investment loss $ (72,261)
==========================================================================================
(a) The Fund commenced operations on December 30, 2013.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 29
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------
'14 Shares '14 Amount
(unaudited) (unaudited)
------------------------------------------------------------------------------------------
Class A*
Shares sold 838,846 $8,381,493
Reinvestment of distributions -- --
Less shares repurchased -- --
------------------------------------------------------------------------------------------
Net increase 838,846 $8,381,493
==========================================================================================
Class C*
Shares sold 834,452 $8,344,482
Reinvestment of distributions -- --
Less shares repurchased -- --
------------------------------------------------------------------------------------------
Net increase 834,452 $8,344,482
==========================================================================================
Class Y*
Shares sold 833,333 $8,333,333
Reinvestment of distributions -- --
Less shares repurchased -- --
------------------------------------------------------------------------------------------
Net increase 833,333 $8,333,333
==========================================================================================
* Class A, Class C and Class Y shares were first publicly offered on December
31, 2013.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
Financial Highlights
-----------------------------------------------------------------------------------------------------
12/31/13 (a)
to 2/28/14
(unaudited)
-----------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $10.00
-----------------------------------------------------------------------------------------------------
Decrease from investment operations:
Net investment loss $(0.03)
Net realized and unrealized gain on investments 0.03
-----------------------------------------------------------------------------------------------------
Net decrease in net assets from investment operations $ --
-----------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ --
-----------------------------------------------------------------------------------------------------
Net asset value, end of period $10.00
=====================================================================================================
Total return* 0.00%
Ratio of net expenses to average net assets 1.70%**
Ratio of net investment loss to average net assets (1.60)%**
Portfolio turnover rate 248%**
Net assets, end of period (in thousands) $8,387
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Total expenses 2.05%**
Net investment loss (1.95)%**
=====================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) Class A shares were first publicly offered on December 31, 2013.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 31
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------
12/31/13 (a)
to 2/28/14
(unaudited)
------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.00
------------------------------------------------------------------------------------------------------
Decrease from investment operations:
Net investment loss $ (0.04)
Net realized and unrealized gain on investments 0.03
------------------------------------------------------------------------------------------------------
Net decrease in net assets from investment operations $ (0.01)
------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.01)
------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.99
======================================================================================================
Total return* (0.10)%
Ratio of net expenses to average net assets 2.45%**
Ratio of net investment income to average net assets (2.35)%**
Portfolio turnover rate 248%**
Net assets, end of period (in thousands) $ 8,340
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Total expenses 2.80%**
Net investment loss (2.70)%**
======================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) Class C shares were first publicly offered on December 31, 2013.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
------------------------------------------------------------------------------------------------------
12/31/13 (a)
to 2/28/14
(unaudited)
------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.00
------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.02)
Net realized and unrealized gain on investments 0.03
------------------------------------------------------------------------------------------------------
Net increase in net assets from investment operations $ 0.01
------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.01
------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.01
======================================================================================================
Total return* 0.10%
Ratio of net expenses to average net assets 1.45%**
Ratio of net investment loss to average net assets (1.35)%**
Portfolio turnover rate 248%**
Net assets, end of period (in thousands) $ 8,342
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Total expenses 1.80%**
Net investment loss (1.70)%**
======================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
(a) Class Y shares were first publicly offered on December 31, 2013.
The accompanying notes are an integral part of these financial statements.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 33
Notes to Financial Statements | 2/28/14 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Long Short Opportunistic Credit Fund (the Fund) is one of five
portfolios comprising Pioneer Series Trust V, a Delaware statutory trust. The
Fund is registered under the Investment Company Act of 1940 as a diversified,
open-end management investment company. The Fund's investment objective is to
seek total return.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Class A, Class C and Class Y shares were first publicly offered on
December 31, 2013. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has identical rights (based on relative
net asset values) to assets and liquidation proceeds. Share classes can bear
different rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
34 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Senior
floating rate loan interests (senior loans) are valued in accordance with
guidelines established by the Board of Trustees at the mean between the last
available bid and asked prices from one or more brokers or dealers as
obtained from Loan Pricing Corporation an independent pricing service. If
price information is not available from Loan Pricing Corporation, or if the
price information is deemed to be unreliable, price information will be
obtained from an alternative loan interest pricing service. If no reliable
price quotes are available from either the primary or alternative pricing
service, broker quotes will be solicited. Fixed income securities with
remaining maturity of more than sixty days are valued at prices supplied by
independent pricing services, which consider such factors as market prices,
market events, quotations from one or more brokers, Treasury spreads,
yields, maturities and ratings. Valuations may be supplemented by dealers
and other sources, as required. Equity securities that have traded on an
exchange are valued at the last sale price on the principal exchange where
they are traded. Equity securities that have not traded on the date of
valuation, or securities for which sale prices are not available, generally
are valued using the mean between the last bid and asked prices. Short-term
fixed income securities with remaining maturities of sixty days or less
generally are valued at amortized cost. Shares of money market mutual funds
are valued at such funds' net asset value.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
Securities or loan interests for which independent pricing services are
unable to supply prices or for which market prices and/or quotations are not
readily available or are considered to be unreliable are valued by a fair
valuation team comprised of certain personnel of Pioneer Investment
Management, Inc. (PIM), the Fund's investment advisor, pursuant to
procedures adopted by the Fund's Board of Trustees. PIM's fair valuation
team uses fair value methods approved by the Valuation Committee of the
Board of Trustees. Inputs used when applying fair value methods to value a
security may include credit ratings, the financial condition of the company,
current market conditions and comparable securities.
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.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 35
Examples of a significant event might include political or economic news,
corporate restructurings, natural disasters, terrorist activity or trading
halts. Thus, the valuation of the Fund's securities may differ significantly
from exchange prices and such differences could be material. PIM's fair
valuation team is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair values on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
At February 28, 2014, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services).
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
All discounts/premiums on debt securities are accreted/amortized for
financial reporting purposes over the life of the respective securities, and
such accretion/amortization is included in interest income.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income is recorded on the
accrual basis. All discounts/premiums on debt securities are
accreted/amortized into interest income for financial reporting purposes.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in the market prices of those securities but are included
with the net realized and unrealized gain or loss on investments.
C. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives.
36 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
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 February 28, 2014 was
$139,635. Subsequent payments for futures contracts ("variation margin") are
paid or received by the Fund, depending on the daily fluctuation in the
value of the contracts, and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund realizes a gain or loss equal
to the difference between the opening and closing value of the contract as
well as any fluctuation in foreign currency exchange rates where applicable.
The use of futures contracts involves to varying degrees, element of market,
interest rate, currency exchange rate and counterparty risks, which may
exceed the amount recognized by the Fund. Changes in value of the contracts
may not directly correlate to the changes in value of the underlying
securities. The average value of contacts open during the period ended
February 28, 2014 was $4,618,482.
At February 28, 2014, open futures contracts were as follows:
----------------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation/
Type Long/(Short) Month Value (Depreciation)
----------------------------------------------------------------------------------------
F/C 90 Day Euro Future (26) 12/16 $(6,370,325) $ (5,363)
U.S. 5 Year Note (11) 3/14 (1,329,969) (3,000)
F/C S&P 500 (14) 6/14 (1,295,420) (8,540)
----------------------------------------------------------------------------------------
$ (16,903)
========================================================================================
D. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation is
recorded in the Fund's financial statements. The Fund records realized gains
and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 6).
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 37
shareowners. Therefore, no federal income tax provision is required. As of
February 28, 2014, the Fund did not accrue any interest or penalties with
respect to unrecognized tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years remain subject to examination by
federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned no underwriting commissions on the sale of Class A
shares during the period ended February 28, 2014.
G. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
38 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
H. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
I. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event. The Fund may buy or
sell credit default swap contracts to seek to increase the Fund's income, or
to attempt to hedge the risk of default on Fund securities. A credit default
swap index is used to hedge risk or take a position on a basket of credit
entities or indices. As a seller of protection, the Fund would be required
to pay the notional (or other agreed-upon) value of the referenced debt
obligation to the counterparty in the event of a default by a U.S. or
foreign corporate issuer of a debt obligation, which would likely result in
a loss to the Fund. In return, the Fund would receive from the counterparty
a periodic stream of payments during the term of the contract provided that
no event of default occurred. The maximum exposure of loss to the seller
would be the notional value of the credit default swaps outstanding. If no
default occurs, the Fund would keep the stream of payments and would have no
payment obligation. The Fund may also buy credit default swap contracts in
order to hedge against the risk of default of debt securities, in which case
the Fund would function as the counterparty referenced above.
When the Fund enters into a credit default swap contract, the protection
buyer, makes an up front payment to the protection seller in exchange for the
rights to receive a contingent payment. An up front payment made by the Fund,
as the protection buyer, is recorded as an asset in the Statement of Assets
and Liabilities. Periodic payments received or paid by the Fund are recorded
as realized gains or losses in the Statement of Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is recorded
as unrealized appreciation or depreciation in the Statement of Assets and
Liabilities. Payments received or made as a result of a credit event or upon
termination of the contract are recognized, net of the appropriate amount of
the upfront payment, as realized gains or losses in the Statement of
Operations.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 39
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Open credit default swap contracts at February 28, 2014 are listed in the
Schedule of Investments. The average value of credit default swap contracts
open during the period ended February 28, 2014 was $8,086,928.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at an annual rate of 1.15%
of the average daily net assets of the Fund up to $1 billion. For the period
ended February 28, 2014, the annualized management fee was equivalent to
1.15% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the
extent required to reduce Fund expenses to 1.70%, 2.45% and 1.45% of the
average daily net assets attributable to Class A, Class C and Class Y
shares, respectively. These expense limitations are in effect through
January 1, 2015. Fees waived and expenses reimbursed during the period ended
February 28, 2014 are reflected on the Statement of Operations. Fees and
expenses of other investment companies in which the Fund may invest are not
included in the expense limitations noted above. There can be no assurance
that PIM will extend the expense limitation agreement for a class of shares
beyond the date referred to above.
In addition, under the management and administration agreements, certain
other services and costs, including accounting, regulatory reporting and
insurance premiums, are paid by the Fund as administrative reimbursements.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $8,616 in management fees, administrative costs and certain
other reimbursements payable to PIM at February 28, 2014.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates.
40 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
In addition, the Fund reimburses PIMSS for out-of-pocket expense incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the period ended February 28, 2014, there were no out-of-pocket
expenses, transfer agent fees and out-of-pocket reimbursements payable.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A and Class C
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily
net assets attributable to Class A shares as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00%
of the average daily net assets attributable to Class C shares. The fee for
Class C shares consists of a 0.25% service fee and a 0.75% distribution fee
paid as compensation for personal services and/or account maintenance
services or distribution services with regard to Class C shares. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$572 in distribution fees payable to PFD at February 28, 2014.
In addition, redemptions of each class of shares (except Class Y shares) may
be subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may
be imposed on redemptions of certain net asset value purchases of Class A
shares within 12 months of purchase. Redemptions of Class C shares within 12
months of purchase are subject to a CDSC of 1.00%, based on the lower of
cost or market value of shares being redeemed. Shares purchased as part of
an exchange remain subject to any CDSC that applied to the original purchase
of those shares. There is no CDSC for Class Y. Proceeds from the CDSCs are
paid to PFD. For the period ended February 28, 2014, no CDSCs were paid to
PFD.
5. Forward Foreign Currency Contracts
At February 28, 2014, the Fund had entered into various forward foreign
currency contracts that obligate the Fund to deliver or take delivery of
currencies at specified future maturity dates. Alternatively, prior to the
settlement date of a forward foreign currency contract, the Fund may close
out such contract by entering into an offsetting contract. The average value
of forward foreign currency contracts open during the period ended February
28, 2014 was $10,802,255.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 41
Open forward foreign currency contracts at February 28, 2014 were as follows:
-------------------------------------------------------------------------------------------------
Net Net Unrealized
Contracts to In Exchange Settlement Appreciation
Currency Deliver For Date Value (Depreciation)
-------------------------------------------------------------------------------------------------
BRL (Brazilian Real) $ (1,948,068) $ (834,862) 3/6/14 $ (830,606) $ 4,256
BRL (Brazilian Real) 1,948,068 805,792 3/6/14 830,606 24,814
GBP (British
Pound Sterling) (220,988) (359,582) 3/6/14 (370,337) (10,755)
GBP (British
Pound Sterling) (240,984) (396,834) 5/6/14 (403,656) (6,822)
GBP (British
Pound Sterling) (104,395) (174,102) 3/6/14 (174,948) (846)
CAD (Canadian
Dollar) (381,086) (345,352) 3/6/14 (344,344) 1,008
CLP (Chilean Peso) (287,939,063) (516,157) 3/6/14 (514,932) 1,225
CZK (Czech Koruna) (9,742,819) (479,265) 3/6/14 (492,766) (13,501)
CZK (Czech Koruna) (4,734,056) (238,173) 3/6/14 (239,436) (1,263)
EUR (European Euro) (880,567) (1,189,825) 5/5/14 (1,216,881) (27,056)
EUR (European Euro) (531,668) (720,248) 3/6/14 (734,738) (14,490)
HUF (Hungarian
Forint) (78,324,810) (344,917) 3/6/14 (349,587) (4,670)
INR (Indian Fupee) 39,509,986 630,720 3/6/14 639,475 8,755
MXN (Mexican Peso) 2,304,271 174,108 3/6/14 173,591 (517)
MXN (Mexican Peso) 4,745,943 354,351 3/6/14 357,533 3,182
NGN (Nigerian Naira) 20,771,652 124,010 3/18/14 125,190 1,180
TWD (New Taiwan
Dollar) (10,867,530) (358,546) 3/6/14 (358,681) (135)
NZD (New Zealand
Dollar) 1,087,529 896,085 3/6/14 912,584 16,499
NOK (Norwegian
Krone) 379,322 62,723 3/6/14 63,265 542
NOK (Norwegian
Krone) 745,244 119,150 3/6/14 124,296 5,146
IDR (Indonesian
Rupiah) 3,370,523,847 281,786 3/6/14 290,240 8,454
RUB (Russian Ruble) 9,104,175 258,541 3/6/14 252,796 (5,745)
SGD (Singapore
Dollar) (459,839) (362,645) 3/6/14 (362,735) (90)
SGD (Singapore
Dollar) (219,680) (174,282) 3/6/14 (173,290) 992
KRW (South
Korea Won) 194,903,280 181,372 3/6/14 182,736 1,364
SEK (Swedish Krona) 1,190,293 182,793 3/6/14 185,911 3,118
CHF (Swiss Franc) (327,721) (363,684) 3/6/14 (373,030) (9,346)
CHF (Swiss Franc) (166,635) (187,604) 3/6/14 (189,673) (2,069)
TRY (Turkish Lira) (263,548) (116,663) 3/6/14 (119,336) (2,673)
TRY (Turkish Lira) (136,101) (62,196) 3/6/14 (61,627) 569
JPY (Japanese Yen) (94,922,725) (936,779) 3/6/14 (932,589) 4,190
PLN (New
Polish Zloty) 1,117,080 363,192 3/6/14 370,695 7,503
-------------------------------------------------------------------------------------------------
Total $ (7,181)
-------------------------------------------------------------------------------------------------
42 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
6. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the period ended February 28, 2014, the Fund's expenses
were not reduced under such arrangements.
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until February 12, 2014 was in the amount of $215
million. As of February 12, 2014, the facility is in the amount of $240 million.
Under such facility, depending on the type of loan, interest on borrowings is
payable at the London Interbank Offered Rate (LIBOR) plus 0.90% (0.85% as of
February 12, 2014) on an annualized basis, or the Alternate Base Rate, which is
the greater of (a) the facility's administrative agent's daily announced prime
rate on the borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing
date and (c) 2% plus the overnight Eurodollar rate on the borrowing date. The
Funds pay an annual commitment 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 period ended February 28,
2014, the Fund had no borrowings under the credit facility.
8. Assets and Liabilities Offsetting
Financial instruments subject to an enforceable master netting agreement have
been offset on the Statement of Assets and Liabilities. The following charts
show gross assets and liabilities of the Fund as of February 28, 2014.
----------------------------------------------------------------------------------------
Assets:
Net
Gross Amounts Gross Amounts
Amounts of Assets Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement ------------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
----------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 92,797 $ (92,797) $ -- $ -- $ -- $ --
Futures
contracts $ -- $ -- $ -- $ -- $ -- $ --
Credit default
swaps $ 58,470 $ (44,444) $14,026 $ -- $ -- $14,026
----------------------------------------------------------------------------------------
$151,267 $(137,241) $14,026 $ -- $ -- $14,026
========================================================================================
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 43
-----------------------------------------------------------------------------------------------------
Liabilities:
Net
Gross Amounts of Gross Amounts
Amounts Liabilities Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement -----------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Pledged Amount
----------------------------------------------------------------------------------------------------
Forward foreign
currency
contracts $ 99,978 $ (92,797) $ 7,181 $ -- $ -- $ 7,181
Futures
contracts $ 16,903 $ -- $16,903 $ -- $ -- $16,903
Credit default
swaps $ 44,444 $ (44,444) $ -- $ -- $ -- $ --
----------------------------------------------------------------------------------------------------
$161,325 $(137,241) $24,084 $ -- $ -- $24,084
====================================================================================================
9. Additional Disclosures about Derivative Instruments and Hedging Activities:
Values of derivative instruments as of February, 28, 2014 were as follows:
----------------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives 2014 Liabilities Derivatives 2014
Hedging Instruments --------------------------- --------------------------------
Under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
----------------------------------------------------------------------------------------------------
Forward foreign Net unrealized Net unrealized
currency contracts appreciation on depreciation on
forward foreign forward foreign
currency contracts $ -- currency contracts $ 7,181
Credit default swaps Net unrealized Net unrealized
appreciation on depreciation on
credit default credit default
swaps $14,026 swaps $ --
Futures contracts* Net unrealized Net unrealized
appreciation on depreciation on
futures contracts $ -- futures contracts $16,903
----------------------------------------------------------------------------------------------------
Total $14,026 $24,084
====================================================================================================
* Reflects unrealized appreciation/depreciation of futures contracts (see Note
1H).
44 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
The effect of derivative instruments on the Statement of Operations for the
period ended February 28, 2014 was as follows:
-----------------------------------------------------------------------------------------------------
Change in
Derivatives Not Realized Unrealized
Accounted for as Gain or Appreciation or
Hedging Instruments (Loss) on (Depreciation)
Under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
-----------------------------------------------------------------------------------------------------
Forward foreign Net realized gain (loss) on forward
currency contracts foreign currency contracts and other
assets and liabilities denominated
in foreign currencies $(1,467)
Forward foreign Change in unrealized appreciation
currency contracts (depreciation) on forward foreign
currency contracts and other assets
and liabilities denominated in
foreign currencies $ (6,626)
Futures contracts Net realized gain (loss) on
futures contracts $ (288)
Futures contracts Change in net unrealized appreciation
(depreciation) on futures contracts $(16,903)
Credit default swaps Net realized gain (loss) on
credit default swaps $(8,121)
Credit default swaps Change in net unrealized appreciation
(depreciation) on credit default swaps $ 14,026
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 45
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Long/Short Opportunistic Credit Fund (the Fund) pursuant to an
investment advisory agreement between PIM and the Fund. Based on their
evaluation of the information provided by PIM, the Trustees, including the
Independent Trustees voting separately, unanimously approved an investment
advisory agreement for the Fund. In considering the investment advisory
agreement, the Trustees considered various factors that they determined were
relevant, including the factors described below. In all quintile rankings
referred to throughout this disclosure, the first quintile is most favorable to
Fund shareowners. The Trustees did not identify any single factor as the
controlling factor in determining to approve the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that
would be provided by PIM to the Fund under the investment advisory agreement.
The Trustees reviewed PIM's investment approach for the Fund and its research
process, and considered the resources of PIM and the personnel of PIM who would
provide investment management services to the Fund. The Trustees also considered
that, as administrator, PIM would be responsible for the administration of the
Fund's business and other affairs. The Trustees considered the quality of such
services provided by PIM to the other Pioneer Funds. The Trustees considered the
fees to be paid to PIM for the provision of administration services. Based on
these considerations, the Trustees concluded that the nature, extent and quality
of services that PIM would provide to the Fund were satisfactory and consistent
with the terms of the investment advisory agreement.
Performance of the Fund
The Trustees did not consider the Fund's performance in approving the investment
advisory agreement because the Fund was newly-offered and did not have a
performance history.
Management Fee and Expenses
The Trustees considered information compiled by Strategic Insight Simfund, an
independent third party, to compare the Fund's proposed management fee and
anticipated expense ratio with a peer group of funds included in the Morningstar
Non-Traditional Bond category. The Trustees considered that the Fund's proposed
management fee would rank in the fifth quintile of the peer group, and just over
the median management fee of a subset of the peer group
46 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
consisting of funds that pursue an investment approach similar to the Fund's
investment approach. The Trustees considered factors distinguishing the Fund
from the funds in the peer group. The Trustees also considered that, taking into
account the contractual expense limitation agreed to by PIM with respect to the
Fund, the Fund's anticipated expense ratio would rank in the fifth quintile of
the peer group, and in the third quintile of the subset of the peer group that
pursue an investment approach similar to the Fund's investment approach. The
Trustees concluded that the proposed management fee payable by the Fund to PIM
was reasonable in relation to the nature and quality of services to be provided
by PIM.
Profitability
The Trustees did not consider PIM's profitability with respect to the management
of the Fund in approving the investment advisory agreement because the Fund was
newly-offered and profitability information was not available.
Economies of Scale
The Trustees considered PIM'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 funds and fund shareholders. The Trustees
concluded that economies of scale, if any, would be appropriately shared with
the Fund.
Other Benefits
The Trustees considered the other potential benefits to PIM from its
relationship with the Fund, including the character and amount of fees that
would be paid by the Fund, other than under the investment advisory agreement,
for services that would be provided by PIM and its affiliates, and the revenues
and profitability of PIM's businesses other than the fund business. The Trustees
concluded that the receipt of these benefits was reasonable in the context of
the overall relationship between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the investment
advisory agreement for the Fund.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 47
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman Daniel K. Kingsbury, President*
David R. Bock Mark D. Goodwin, Executive
Benjamin M. Friedman Vice President
Margaret B.W. Graham Mark E. Bradley, Treasurer**
Daniel K. Kingsbury Christopher J. Kelley, Secretary
Marc O. Mayer
Marguerite A. Piret
Kenneth J. Taubes
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Chief Executive Officer of the Fund.
** Chief Financial and Accounting Officer of the Fund.
48 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
This page for your notes.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 49
This page for your notes.
50 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
This page for your notes.
Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14 51
This page for your notes.
52 Pioneer Long/Short Opportunistic Credit Fund | Semiannual Report | 2/28/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 27687-00-0414
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.
Not applicable.
(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.
Not applicable.
(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.
Not applicable.
(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.
Not applicable.
(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.
Not applicable.
(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.
Not applicable.
(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.
Not applicable.
(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.
(Registrant) Pioneer Series Trust V
By (Signature and Title)* /s/ Daniel K. Kingsbury
Daniel K. Kingsbury, President
Date May 27, 2014
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Daniel K. Kingsbury
Daniel K. Kingsbury, President
Date May 27, 2014
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date May 27, 2014
* Print the name and title of each signing officer under his or her signature.